LEASES

6 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

Lessee Accounting

We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases:

($ in thousands)	Balance Sheet Classification	As of December 31, 2023		As of June 30, 2023
Assets:	Operating lease right-of-use assets	$	8,443	$	2,575
Liabilities:
Current	Accrued expenses	$	640	$	1,266
Long-term	Operating lease liabilities, non-current	9,203		2,504
Total lease liabilities		$	9,843	$	3,770

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Six months ended December 31, 2023		Six months ended December 31, 2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,220	$	1,064
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	6,657	$	—

Maturities of lease liabilities by fiscal year for our leases as of December 31, 2023 are as follows:

($ in thousands)	Operating Leases
Remainder of 2024	$	633
2025	1,606
2026	2,324
2027	1,785
2028	1,359
Thereafter	$	6,571
Total lease payments	$	14,278
Less: Imputed interest	(4,435)
Present value of lease liabilities	$	9,843

In February 2023, the Company extended the lease for its existing Atlanta, Georgia office for an additional 73-months period including rent-free periods. The lease commenced on July 1, 2023 and we recognized right-of-use operating lease assets of $1.8 million in exchange for operating lease liabilities.

In May 2023, the Company signed a new lease for its office in Malvern, Pennsylvania. The new lease has a 133-months term from the move-in date which is expected to be March 2024. The Company determined the lease commenced on November 1, 2023 when the lessor granted early access to the Company. As a result, we recognized right-of-use operating lease assets of $4.9 million in exchange for operating lease liabilities.

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	December 31, 2023		June 30, 2023
Cost	$	29,316	28,398
Accumulated depreciation	(23,942)		(23,221)
Net	$	5,374	$	5,177

For the three months ended December 31, 2023 and 2022, the Company recognized $2.0 million and $1.9 million of revenue from its device rental program, respectively, included in the Subscription and Transaction fees on its Condensed Consolidated Statements of Operations.

For the Six months ended December 31, 2023 and 2022, the Company recognized $4.0 million and $3.7 million of revenue from its device rental program, respectively, included in the Subscription and Transaction fees on its Condensed Consolidated Statements of Operations.

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of December 31, 2023 are disclosed within Note 4 - Finance Receivables.

LEASES

LEASES

Lessee Accounting

We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases:

($ in thousands)	Balance Sheet Classification	As of December 31, 2023		As of June 30, 2023
Assets:	Operating lease right-of-use assets	$	8,443	$	2,575
Liabilities:
Current	Accrued expenses	$	640	$	1,266
Long-term	Operating lease liabilities, non-current	9,203		2,504
Total lease liabilities		$	9,843	$	3,770

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Six months ended December 31, 2023		Six months ended December 31, 2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,220	$	1,064
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	6,657	$	—

Maturities of lease liabilities by fiscal year for our leases as of December 31, 2023 are as follows:

($ in thousands)	Operating Leases
Remainder of 2024	$	633
2025	1,606
2026	2,324
2027	1,785
2028	1,359
Thereafter	$	6,571
Total lease payments	$	14,278
Less: Imputed interest	(4,435)
Present value of lease liabilities	$	9,843

In February 2023, the Company extended the lease for its existing Atlanta, Georgia office for an additional 73-months period including rent-free periods. The lease commenced on July 1, 2023 and we recognized right-of-use operating lease assets of $1.8 million in exchange for operating lease liabilities.

In May 2023, the Company signed a new lease for its office in Malvern, Pennsylvania. The new lease has a 133-months term from the move-in date which is expected to be March 2024. The Company determined the lease commenced on November 1, 2023 when the lessor granted early access to the Company. As a result, we recognized right-of-use operating lease assets of $4.9 million in exchange for operating lease liabilities.

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	December 31, 2023		June 30, 2023
Cost	$	29,316	28,398
Accumulated depreciation	(23,942)		(23,221)
Net	$	5,374	$	5,177

For the three months ended December 31, 2023 and 2022, the Company recognized $2.0 million and $1.9 million of revenue from its device rental program, respectively, included in the Subscription and Transaction fees on its Condensed Consolidated Statements of Operations.

For the Six months ended December 31, 2023 and 2022, the Company recognized $4.0 million and $3.7 million of revenue from its device rental program, respectively, included in the Subscription and Transaction fees on its Condensed Consolidated Statements of Operations.

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of December 31, 2023 are disclosed within Note 4 - Finance Receivables.

LEASES

LEASES

Lessee Accounting

We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases:

($ in thousands)	Balance Sheet Classification	As of December 31, 2023		As of June 30, 2023
Assets:	Operating lease right-of-use assets	$	8,443	$	2,575
Liabilities:
Current	Accrued expenses	$	640	$	1,266
Long-term	Operating lease liabilities, non-current	9,203		2,504
Total lease liabilities		$	9,843	$	3,770

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Six months ended December 31, 2023		Six months ended December 31, 2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,220	$	1,064
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	6,657	$	—

Maturities of lease liabilities by fiscal year for our leases as of December 31, 2023 are as follows:

($ in thousands)	Operating Leases
Remainder of 2024	$	633
2025	1,606
2026	2,324
2027	1,785
2028	1,359
Thereafter	$	6,571
Total lease payments	$	14,278
Less: Imputed interest	(4,435)
Present value of lease liabilities	$	9,843

In February 2023, the Company extended the lease for its existing Atlanta, Georgia office for an additional 73-months period including rent-free periods. The lease commenced on July 1, 2023 and we recognized right-of-use operating lease assets of $1.8 million in exchange for operating lease liabilities.

In May 2023, the Company signed a new lease for its office in Malvern, Pennsylvania. The new lease has a 133-months term from the move-in date which is expected to be March 2024. The Company determined the lease commenced on November 1, 2023 when the lessor granted early access to the Company. As a result, we recognized right-of-use operating lease assets of $4.9 million in exchange for operating lease liabilities.

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	December 31, 2023		June 30, 2023
Cost	$	29,316	28,398
Accumulated depreciation	(23,942)		(23,221)
Net	$	5,374	$	5,177

For the three months ended December 31, 2023 and 2022, the Company recognized $2.0 million and $1.9 million of revenue from its device rental program, respectively, included in the Subscription and Transaction fees on its Condensed Consolidated Statements of Operations.

For the Six months ended December 31, 2023 and 2022, the Company recognized $4.0 million and $3.7 million of revenue from its device rental program, respectively, included in the Subscription and Transaction fees on its Condensed Consolidated Statements of Operations.

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of December 31, 2023 are disclosed within Note 4 - Finance Receivables.