LEASES

9 Months Ended

Mar. 31, 2022

The Company has operating leases for real estate, field equipment, office equipment and vehicles and financing leases for vehicles and office equipment. Operating leases are included in Operating Lease Right of Use ("ROU") Asset and Operating Lease Liability on our Condensed Consolidated Balance Sheets. Financing leases are included in Financing Lease ROU Asset and Financing Lease Liability on the Condensed Consolidated Balance Sheets.

During the three and nine months ended March 31, 2022 and 2021, lease cost amounts, which reflect the fixed rent expense associated with operating and financing leases, are as follows (in thousands):


	Three-Months Ended March 31,				Nine-Months Ended March 31,
	2022		2021		2022		2021
Lease cost (1) - fixed rent expense:
Operating lease cost included in:
Cost of revenues	$	739	$	613	$	2,063	$	1,805
Selling, general and administrative	106		107		328		333
Financing lease cost included in:
Cost of revenues (amortization expense)	48		19		137		54
Interest expense	8		4		23		12
Total	$	901	$	743	$	2,551	$	2,204

(1) Short-term lease cost and variable lease cost were not significant during the period.

During the nine months ended March 31, 2022 and 2021, the Company had the following cash and non-cash activities associated with leases (in thousands):


	Nine-Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases	$	2,372	$	2,080
Non-cash changes to the Operating ROU Asset and Operating Lease Liability
Additions and modifications to ROU asset obtained from new operating lease liabilities	$	6,263	$	2,382

Additions to ROU asset obtained from new financing lease liabilities	$	179	$	314

As of March 31, 2022, the weighted average remaining lease term for all operating and financing leases is 5.40 years and 4.83 years, respectively. The weighted average discount rate associated with operating and financing leases as of March 31, 2022 is 3% for each.

The future payments due under operating leases as of March 31, 2022 is as follows (in thousands):


Future payments due in the twelve months ended March 31,	Operating lease		Financing lease
2023	$	3,239	$	216
2024	2,970		215
2025	2,653		215
2026	1,733		202
2027	849		159
Thereafter	2,233		28
Total undiscounted lease payments	13,677		1,035
Less effects of discounting	(1,104)		(90)
Lease liability recognized	$	12,573	$	945