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Leases
 9 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases Leases
The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $5.1 million of a machinery lease financing with a vendor. In September 2022, the lease was amended to make a monthly payment of principal and interest as a fixed amount effective in October 2022. Other terms remain the same. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.
The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):
Three Months Ended March 31,Nine Months Ended March 31,
2024202320242023
Operating leases:
     Fixed rent expense$1,356 $1,385 $4,399 $4,298 
     Variable rent expense307 279 819 757 
Finance lease:
     Amortization of equipment128 128 385 393 
     Interest67 83 214 227 
Short-term leases
     Short-term lease expenses41 133 128 300 
               Total lease expenses$1,899 $2,008 $5,945 $5,975 

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):
March 31, 2024June 30,
2023
Operating Leases:
     ROU assets associated with operating leases$24,421 $24,349 
Finance Lease:
     Property, plant and equipment, gross$5,133 $5,133 
     Accumulated depreciation(1,042)(657)
          Property, plant and equipment, net$4,091 $4,476 
Weighted average remaining lease term (in years)
     Operating leases5.676.57
     Finance lease3.504.25
Weighted average discount rate
     Operating leases4.91 %4.67 %
     Finance lease7.51 %7.51 %

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):
Nine Months Ended March 31,
20242023
Cash paid from amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$4,804 $4,418 
     Operating cash flows from finance lease$214 $227 
     Financing cash flows from finance lease$644 $603 
Non-cash investing and financing information:
    Operating lease right-of-use assets obtained in exchange for lease obligations$3,954 $2,859 

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):
Year ending June 30,Operating LeasesFinance Leases
The remainder of fiscal 2024$1,532 $286 
20255,954 1,144 
20265,109 1,144 
20274,188 1,145 
20283,691 191 
Thereafter8,322 — 
Total minimum lease payments28,796 3,910 
Less amount representing interest(3,788)(471)
Total lease liabilities$25,008 $3,439 
Leases Leases
The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $5.1 million of a machinery lease financing with a vendor. In September 2022, the lease was amended to make a monthly payment of principal and interest as a fixed amount effective in October 2022. Other terms remain the same. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.
The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):
Three Months Ended March 31,Nine Months Ended March 31,
2024202320242023
Operating leases:
     Fixed rent expense$1,356 $1,385 $4,399 $4,298 
     Variable rent expense307 279 819 757 
Finance lease:
     Amortization of equipment128 128 385 393 
     Interest67 83 214 227 
Short-term leases
     Short-term lease expenses41 133 128 300 
               Total lease expenses$1,899 $2,008 $5,945 $5,975 

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):
March 31, 2024June 30,
2023
Operating Leases:
     ROU assets associated with operating leases$24,421 $24,349 
Finance Lease:
     Property, plant and equipment, gross$5,133 $5,133 
     Accumulated depreciation(1,042)(657)
          Property, plant and equipment, net$4,091 $4,476 
Weighted average remaining lease term (in years)
     Operating leases5.676.57
     Finance lease3.504.25
Weighted average discount rate
     Operating leases4.91 %4.67 %
     Finance lease7.51 %7.51 %

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):
Nine Months Ended March 31,
20242023
Cash paid from amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$4,804 $4,418 
     Operating cash flows from finance lease$214 $227 
     Financing cash flows from finance lease$644 $603 
Non-cash investing and financing information:
    Operating lease right-of-use assets obtained in exchange for lease obligations$3,954 $2,859 

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):
Year ending June 30,Operating LeasesFinance Leases
The remainder of fiscal 2024$1,532 $286 
20255,954 1,144 
20265,109 1,144 
20274,188 1,145 
20283,691 191 
Thereafter8,322 — 
Total minimum lease payments28,796 3,910 
Less amount representing interest(3,788)(471)
Total lease liabilities$25,008 $3,439