Leases

6 Months Ended

Dec. 31, 2023

Note 9. – Leases

The Company has operating leases relating to its pharmacy operations, medical office buildings, certain medical equipment, and office equipment. All lease agreements generally require the Company to pay maintenance, repairs, property taxes and insurance costs, all of which are variable amounts based on actual costs. Variable lease costs also include escalating rent payments that are not fixed at commencement but are based on an index determined in future periods over the lease term based on changes in the Consumer Price Index or other measure of cost inflation. Some leases include one or more options to renew the lease at the end of the initial term, with renewal terms that generally extend the lease at the then market rental rates. Leases may also include an option to buy the underlying asset at or a short time prior to the termination of the lease. All such options are at the Company’s discretion and are evaluated at the commencement of the lease, with only those that are reasonably certain of exercise included in determining the appropriate lease term. The components of lease cost and rent expense for the three and six months ended December 31, 2023 and 2022 are as follows:


	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
Lease Cost	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Operating lease cost:
Operating lease cost	$	85	$	85	$	170	$	170
Short-term rent expense		7		7		12		13
Variable lease cost		0		0		1		1
Total operating lease cost	$	92	$	92	$	183	$	184

Supplemental balance sheet information relating to leases was as follows:


		As of		As of
		December 31,		June 30,
		2023		2023
Operating Leases:	Balance Sheet Classifications
Operating lease ROU Assets	ROU Assets	$	649	$	798
Current operating lease liabilities	Current operating lease liabilities		331		334
Long-term operating lease liabilities	Long-term operating lease liabilities	$	332	$	481

Supplemental cash flow and other information related to leases as of and for the three and six months ended December 31, 2023 and 2022 are as follows:


	Three Months Ended						Six Months Ended
Other information	December 31, 2023			December 31, 2022			December 31, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	85		$	85		$	170		$	170
Right-of-use assets obtained in exchange for new operating lease liabilities		0			9			18			16
Weighted-average remaining lease term:
Operating leases	2.06 years			2.97 years			2.06 years			2.97 years
Weighted-average discount rate:
Operating leases		0.98	%		1.02	%		0.98	%		1.02	%

Commitments relating to non-cancellable operating leases as of December 31, 2023 for each of the next five years and thereafter are as follows:


Payments due within	Operating Leases
1 year	$	336
2 years		298
3 years		31
4 years		5
5 years		0
Over 5 years		0
Total minimum future payments		670
Less: Imputed interest		(7	)
Total liabilities		663
Less: Current portion		(331	)
Long-term liabilities	$	332