LEASES

12 Months Ended

Jun. 30, 2024

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 June 30, 2024		As of June 30, 2023
Assets
Operating leases	Operating lease right-of-use assets	7,986		$	2,575
Liabilities
Current	Accrued expenses	1,320		1,266
Long-term	Operating lease liabilities, non-current	8,457		2,504
Total lease liabilities		$	9,777	$	3,770

Components of lease cost are as follows:

	Year ended June 30,
($ in thousands)	2024		Year ended	2023		Year ended	2022
Operating lease costs*	$	2,520		$	2,490		$	1,923

* Includes variable lease costs of $0.4 million for the years ended June 30, 2024, 2023 and 2022.

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

	Year ended June 30,
($ in thousands)	2024		2023		2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,278	$	2,522	$	1,737
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating lease	$	6,657	$	1,607	$	471

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30,
	2024		2023
Weighted-average remaining lease term (years)
Operating leases	7.3		3.2
Weighted-average discount rate
Operating leases	8.2	%	7.5	%

Maturities of operating lease liabilities by fiscal year for our leases as of June 30, 2024 are as follows:

($ in thousands)	Amount
2025	$	1,637
2026	2,266
2027	1,839
2028	1,352
2029	1,388
Thereafter	5,469
Total lease payments	$	13,951
Less: Imputed interest	(4,174)
Present value of lease liabilities	$	9,777

In connection with the acquisition of 32M described in Note 10 - Acquisitions, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months.

In connection with the acquisition of Cheq described in Note 10 - Acquisitions, the Company acquired an operating lease for office space located in Seattle, Washington. This lease commenced on February 1, 2024 with a term of 11-months.

In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 73-months period including rent free periods.

In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease commenced on February 15, 2024 with a term of 133-months.

Lessor accounting

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

	As of June 30,
($ in thousands)	2024		2023
Cost	$	32,513	$	28,398
Accumulated depreciation	(24,742)		(23,221)
Net	$	7,771	$	5,177

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 June 30, 2024 are disclosed within Note 4, Finance Receivables.

The Company also is the sublessor for office space in Denver, Colorado and Metairie, Louisiana. Sublessor rental income was $0.8 million, $0.8 million, and $0.6 million for the years ended June 30, 2024, 2023, and 2022, respectively.

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 June 30, 2024		As of June 30, 2023
Assets
Operating leases	Operating lease right-of-use assets	7,986		$	2,575
Liabilities
Current	Accrued expenses	1,320		1,266
Long-term	Operating lease liabilities, non-current	8,457		2,504
Total lease liabilities		$	9,777	$	3,770

Components of lease cost are as follows:

	Year ended June 30,
($ in thousands)	2024		Year ended	2023		Year ended	2022
Operating lease costs*	$	2,520		$	2,490		$	1,923

* Includes variable lease costs of $0.4 million for the years ended June 30, 2024, 2023 and 2022.

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

	Year ended June 30,
($ in thousands)	2024		2023		2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,278	$	2,522	$	1,737
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating lease	$	6,657	$	1,607	$	471

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30,
	2024		2023
Weighted-average remaining lease term (years)
Operating leases	7.3		3.2
Weighted-average discount rate
Operating leases	8.2	%	7.5	%

Maturities of operating lease liabilities by fiscal year for our leases as of June 30, 2024 are as follows:

($ in thousands)	Amount
2025	$	1,637
2026	2,266
2027	1,839
2028	1,352
2029	1,388
Thereafter	5,469
Total lease payments	$	13,951
Less: Imputed interest	(4,174)
Present value of lease liabilities	$	9,777

In connection with the acquisition of 32M described in Note 10 - Acquisitions, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months.

In connection with the acquisition of Cheq described in Note 10 - Acquisitions, the Company acquired an operating lease for office space located in Seattle, Washington. This lease commenced on February 1, 2024 with a term of 11-months.

In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 73-months period including rent free periods.

In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease commenced on February 15, 2024 with a term of 133-months.

Lessor accounting

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

	As of June 30,
($ in thousands)	2024		2023
Cost	$	32,513	$	28,398
Accumulated depreciation	(24,742)		(23,221)
Net	$	7,771	$	5,177

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 June 30, 2024 are disclosed within Note 4, Finance Receivables.

The Company also is the sublessor for office space in Denver, Colorado and Metairie, Louisiana. Sublessor rental income was $0.8 million, $0.8 million, and $0.6 million for the years ended June 30, 2024, 2023, and 2022, respectively.

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 June 30, 2024		As of June 30, 2023
Assets
Operating leases	Operating lease right-of-use assets	7,986		$	2,575
Liabilities
Current	Accrued expenses	1,320		1,266
Long-term	Operating lease liabilities, non-current	8,457		2,504
Total lease liabilities		$	9,777	$	3,770

Components of lease cost are as follows:

	Year ended June 30,
($ in thousands)	2024		Year ended	2023		Year ended	2022
Operating lease costs*	$	2,520		$	2,490		$	1,923

* Includes variable lease costs of $0.4 million for the years ended June 30, 2024, 2023 and 2022.

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

	Year ended June 30,
($ in thousands)	2024		2023		2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,278	$	2,522	$	1,737
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating lease	$	6,657	$	1,607	$	471

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30,
	2024		2023
Weighted-average remaining lease term (years)
Operating leases	7.3		3.2
Weighted-average discount rate
Operating leases	8.2	%	7.5	%

Maturities of operating lease liabilities by fiscal year for our leases as of June 30, 2024 are as follows:

($ in thousands)	Amount
2025	$	1,637
2026	2,266
2027	1,839
2028	1,352
2029	1,388
Thereafter	5,469
Total lease payments	$	13,951
Less: Imputed interest	(4,174)
Present value of lease liabilities	$	9,777

In connection with the acquisition of 32M described in Note 10 - Acquisitions, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months.

In connection with the acquisition of Cheq described in Note 10 - Acquisitions, the Company acquired an operating lease for office space located in Seattle, Washington. This lease commenced on February 1, 2024 with a term of 11-months.

In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 73-months period including rent free periods.

In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease commenced on February 15, 2024 with a term of 133-months.

Lessor accounting

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

	As of June 30,
($ in thousands)	2024		2023
Cost	$	32,513	$	28,398
Accumulated depreciation	(24,742)		(23,221)
Net	$	7,771	$	5,177

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 June 30, 2024 are disclosed within Note 4, Finance Receivables.

The Company also is the sublessor for office space in Denver, Colorado and Metairie, Louisiana. Sublessor rental income was $0.8 million, $0.8 million, and $0.6 million for the years ended June 30, 2024, 2023, and 2022, respectively.