Leases

9 Months Ended

Mar. 31, 2024

Note 9. – Leases

The Company, as lessee, has operating leases relating to its pharmacy operations, 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 nine months ended March 31, 2024 and 2023 are as follows:


	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
Lease Cost	March 31, 2024		March 31, 2023		March 31, 2024		March 31, 2023
Operating lease cost:
Operating lease cost	$	85	$	86	$	255	$	256
Short-term rent expense		7		5		19		18
Variable lease cost		0		1		1		2
Total operating lease cost	$	92	$	92	$	275	$	276

Supplemental balance sheet information relating to leases was as follows:


		As of		As of
		March 31,		June 30,
		2024		2023
Operating Leases:	Balance Sheet Classifications
Operating lease ROU Assets	ROU Assets	$	592	$	798
Current operating lease liabilities	Current operating lease liabilities		332		334
Long-term operating lease liabilities	Long-term operating lease liabilities	$	273	$	481

Supplemental cash flow and other information related to leases as of and for the three and nine months ended March 31, 2024 and 2023 are as follows:


	Three Months Ended						Nine Months Ended
Other information	March 31, 2024			March 31, 2023			March 31, 2024			March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows of operating leases	$	85		$	86		$	255		$	256
Right-of-use assets obtained in exchange for new operating lease liabilities		0			0			18			16
Weighted-average remaining lease term:
Operating leases	1.82 years			2.74 years			1.82 years			2.74 years
Weighted-average discount rate:
Operating leases		0.98	%		1.02	%		0.98	%		1.02	%

Commitments relating to non-cancellable operating leases as of March 31, 2024 for each of the next five years and thereafter are as follows:


Payments due within	Operating Leases
1 year	$	337
2 years		252
3 years		15
4 years		10
5 years		0
Over 5 years		0
Total minimum future payments		614
Less: Imputed interest		(9	)
Total liabilities		605
Less: Current portion		(332	)
Long-term liabilities	$	273