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LEASES | 3 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At September 30, 2019, the Company has the following balances recorded in the balance sheet related to its lease arrangements:
($ in thousands) |  | Classification |  | As of September 30, 2019
Assets |  |  |  |
Operating leases |  | Operating lease right-of-use assets |  | $ | 6,514 |
Finance leases |  | Property and equipment, net |  | 112 |
Liabilities |  |  |  |
Current: |  |  |  |
Operating leases |  | Accrued expenses |  | 1,194 |
Finance leases |  | Capital lease obligations and current obligations under long-term debt |  | 90 |
Non-current: |  |  |  |
Operating leases |  | Operating lease liabilities, non-current |  | 5,327 |
Finance leases |  | Capital lease obligations and long-term debt, less current portion |  | $ | 25 |
Components of lease cost are as follows:
($ in thousands) | Three months ended September 30, 2019
Finance lease costs: |
Amortization of ROU assets | $ | 31 |
Interest on lease assets | 3 |
Operating lease costs* | 701 |
Total | $ | 735 |
* Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows:
($ in thousands) | Three months ended September 30, 2019
Supplemental cash flow information: |
Cash paid for amounts included in the measurement of lease liabilities |
Financing cash flows from finance leases | $ | 23 |
Operating cash flows from finance leases | 3 |
Operating cash flows from operating leases | 495 |
Non-cash activity |
Right-of-use assets obtained in exchange for lease obligations: |
Finance lease liabilities | — |
Operating lease liabilities | $ | 3,071 |
Weighted-average remaining lease term and discount rate (as restated) for our leases are as follows:
| Three months ended September 30, 2019
Weighted-average remaining lease term |
Finance leases | 1.5 |
Operating leases | 5.6 |
Weighted-average discount rate |
Finance leases | 10.0 | %
Operating leases | 6.8 | %
Maturities of lease liabilities by fiscal year for our leases are as follows:
($ in thousands) | Operating Leases |  | Finance Leases
Remainder of 2020 | $ | 1,259 |  |  | $ | 79 |
2021 | 1,361 |  |  | 41 |
2022 | 1,379 |  |  | 12 |
2023 | 1,400 |  |  | 1 |
2024 | 998 |  |  | 1 |
Thereafter | 1,520 |  |  | — |
Total lease payments | $ | 7,917 |  |  | $ | 134 |
Less: Imputed interest | 1,396 |  |  | 19 |
Present value of lease liabilities | $ | 6,521 |  |  | $ | 115 |
In September 2019, the Company entered into an amendment to the lease for its headquarters in Malvern, Pennsylvania that has not yet commenced. The amendment grants the Company approximately 3,400 additional square feet of space in exchange for future minimum lease payments of approximately $350 thousand. The amendment did not alter the lease term and will expire on November 30, 2023. The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows:
($ in thousands) | Operating Leases |  | Capital Leases
2020 | $ | 1,326 |  |  | $ | 106 |
2021 | 1,151 |  |  | 34 |
2022 | 1,180 |  |  | 12 |
2023 | 1,208 |  |  | 1 |
2024 | 859 |  |  | 1 |
Thereafter | 1,550 |  |  | — |
Total minimum lease payments | $ | 7,274 |  |  | $ | 154 |
Less: interest |  |  | (14 | )
Present value of minimum lease payments, net |  |  | 140 |
Less: current obligations under capital leases |  |  | (106 | )
Obligations under capital leases, noncurrent |  |  | $ | 34 |
Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months. Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 3, the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following:
($ in thousands) |  | September 30, 2019 (as restated) |  | June 30, 2019
Cost |  | $ | 31,866 |  |  | 36,190 |
Accumulated depreciation |  | (26,355 | ) |  | (30,473 | )
Net |  | $ | 5,511 |  |  | $ | 5,717 |
The June 30, 2019 property and equipment balances used for the operating lease rental program have been revised. Refer to Note 2 - Restatement and Revision of Prior Period Financial Statements. 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 September 30, 2019 are disclosed within the Finance Receivables footnote. Refer to Note 7 for additional information.
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At September 30, 2019, the Company has the following balances recorded in the balance sheet related to its lease arrangements:
($ in thousands) |  | Classification |  | As of September 30, 2019
Assets |  |  |  |
Operating leases |  | Operating lease right-of-use assets |  | $ | 6,514 |
Finance leases |  | Property and equipment, net |  | 112 |
Liabilities |  |  |  |
Current: |  |  |  |
Operating leases |  | Accrued expenses |  | 1,194 |
Finance leases |  | Capital lease obligations and current obligations under long-term debt |  | 90 |
Non-current: |  |  |  |
Operating leases |  | Operating lease liabilities, non-current |  | 5,327 |
Finance leases |  | Capital lease obligations and long-term debt, less current portion |  | $ | 25 |
Components of lease cost are as follows:
($ in thousands) | Three months ended September 30, 2019
Finance lease costs: |
Amortization of ROU assets | $ | 31 |
Interest on lease assets | 3 |
Operating lease costs* | 701 |
Total | $ | 735 |
* Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows:
($ in thousands) | Three months ended September 30, 2019
Supplemental cash flow information: |
Cash paid for amounts included in the measurement of lease liabilities |
Financing cash flows from finance leases | $ | 23 |
Operating cash flows from finance leases | 3 |
Operating cash flows from operating leases | 495 |
Non-cash activity |
Right-of-use assets obtained in exchange for lease obligations: |
Finance lease liabilities | — |
Operating lease liabilities | $ | 3,071 |
Weighted-average remaining lease term and discount rate (as restated) for our leases are as follows:
| Three months ended September 30, 2019
Weighted-average remaining lease term |
Finance leases | 1.5 |
Operating leases | 5.6 |
Weighted-average discount rate |
Finance leases | 10.0 | %
Operating leases | 6.8 | %
Maturities of lease liabilities by fiscal year for our leases are as follows:
($ in thousands) | Operating Leases |  | Finance Leases
Remainder of 2020 | $ | 1,259 |  |  | $ | 79 |
2021 | 1,361 |  |  | 41 |
2022 | 1,379 |  |  | 12 |
2023 | 1,400 |  |  | 1 |
2024 | 998 |  |  | 1 |
Thereafter | 1,520 |  |  | — |
Total lease payments | $ | 7,917 |  |  | $ | 134 |
Less: Imputed interest | 1,396 |  |  | 19 |
Present value of lease liabilities | $ | 6,521 |  |  | $ | 115 |
In September 2019, the Company entered into an amendment to the lease for its headquarters in Malvern, Pennsylvania that has not yet commenced. The amendment grants the Company approximately 3,400 additional square feet of space in exchange for future minimum lease payments of approximately $350 thousand. The amendment did not alter the lease term and will expire on November 30, 2023. The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows:
($ in thousands) | Operating Leases |  | Capital Leases
2020 | $ | 1,326 |  |  | $ | 106 |
2021 | 1,151 |  |  | 34 |
2022 | 1,180 |  |  | 12 |
2023 | 1,208 |  |  | 1 |
2024 | 859 |  |  | 1 |
Thereafter | 1,550 |  |  | — |
Total minimum lease payments | $ | 7,274 |  |  | $ | 154 |
Less: interest |  |  | (14 | )
Present value of minimum lease payments, net |  |  | 140 |
Less: current obligations under capital leases |  |  | (106 | )
Obligations under capital leases, noncurrent |  |  | $ | 34 |
Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months. Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 3, the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following:
($ in thousands) |  | September 30, 2019 (as restated) |  | June 30, 2019
Cost |  | $ | 31,866 |  |  | 36,190 |
Accumulated depreciation |  | (26,355 | ) |  | (30,473 | )
Net |  | $ | 5,511 |  |  | $ | 5,717 |
The June 30, 2019 property and equipment balances used for the operating lease rental program have been revised. Refer to Note 2 - Restatement and Revision of Prior Period Financial Statements. 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 September 30, 2019 are disclosed within the Finance Receivables footnote. Refer to Note 7 for additional information.
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At September 30, 2019, the Company has the following balances recorded in the balance sheet related to its lease arrangements:
($ in thousands) |  | Classification |  | As of September 30, 2019
Assets |  |  |  |
Operating leases |  | Operating lease right-of-use assets |  | $ | 6,514 |
Finance leases |  | Property and equipment, net |  | 112 |
Liabilities |  |  |  |
Current: |  |  |  |
Operating leases |  | Accrued expenses |  | 1,194 |
Finance leases |  | Capital lease obligations and current obligations under long-term debt |  | 90 |
Non-current: |  |  |  |
Operating leases |  | Operating lease liabilities, non-current |  | 5,327 |
Finance leases |  | Capital lease obligations and long-term debt, less current portion |  | $ | 25 |
Components of lease cost are as follows:
($ in thousands) | Three months ended September 30, 2019
Finance lease costs: |
Amortization of ROU assets | $ | 31 |
Interest on lease assets | 3 |
Operating lease costs* | 701 |
Total | $ | 735 |
* Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows:
($ in thousands) | Three months ended September 30, 2019
Supplemental cash flow information: |
Cash paid for amounts included in the measurement of lease liabilities |
Financing cash flows from finance leases | $ | 23 |
Operating cash flows from finance leases | 3 |
Operating cash flows from operating leases | 495 |
Non-cash activity |
Right-of-use assets obtained in exchange for lease obligations: |
Finance lease liabilities | — |
Operating lease liabilities | $ | 3,071 |
Weighted-average remaining lease term and discount rate (as restated) for our leases are as follows:
| Three months ended September 30, 2019
Weighted-average remaining lease term |
Finance leases | 1.5 |
Operating leases | 5.6 |
Weighted-average discount rate |
Finance leases | 10.0 | %
Operating leases | 6.8 | %
Maturities of lease liabilities by fiscal year for our leases are as follows:
($ in thousands) | Operating Leases |  | Finance Leases
Remainder of 2020 | $ | 1,259 |  |  | $ | 79 |
2021 | 1,361 |  |  | 41 |
2022 | 1,379 |  |  | 12 |
2023 | 1,400 |  |  | 1 |
2024 | 998 |  |  | 1 |
Thereafter | 1,520 |  |  | — |
Total lease payments | $ | 7,917 |  |  | $ | 134 |
Less: Imputed interest | 1,396 |  |  | 19 |
Present value of lease liabilities | $ | 6,521 |  |  | $ | 115 |
In September 2019, the Company entered into an amendment to the lease for its headquarters in Malvern, Pennsylvania that has not yet commenced. The amendment grants the Company approximately 3,400 additional square feet of space in exchange for future minimum lease payments of approximately $350 thousand. The amendment did not alter the lease term and will expire on November 30, 2023. The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows:
($ in thousands) | Operating Leases |  | Capital Leases
2020 | $ | 1,326 |  |  | $ | 106 |
2021 | 1,151 |  |  | 34 |
2022 | 1,180 |  |  | 12 |
2023 | 1,208 |  |  | 1 |
2024 | 859 |  |  | 1 |
Thereafter | 1,550 |  |  | — |
Total minimum lease payments | $ | 7,274 |  |  | $ | 154 |
Less: interest |  |  | (14 | )
Present value of minimum lease payments, net |  |  | 140 |
Less: current obligations under capital leases |  |  | (106 | )
Obligations under capital leases, noncurrent |  |  | $ | 34 |
Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months. Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 3, the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following:
($ in thousands) |  | September 30, 2019 (as restated) |  | June 30, 2019
Cost |  | $ | 31,866 |  |  | 36,190 |
Accumulated depreciation |  | (26,355 | ) |  | (30,473 | )
Net |  | $ | 5,511 |  |  | $ | 5,717 |
The June 30, 2019 property and equipment balances used for the operating lease rental program have been revised. Refer to Note 2 - Restatement and Revision of Prior Period Financial Statements. 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 September 30, 2019 are disclosed within the Finance Receivables footnote. Refer to Note 7 for additional information.
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At September 30, 2019, the Company has the following balances recorded in the balance sheet related to its lease arrangements:
($ in thousands) |  | Classification |  | As of September 30, 2019
Assets |  |  |  |
Operating leases |  | Operating lease right-of-use assets |  | $ | 6,514 |
Finance leases |  | Property and equipment, net |  | 112 |
Liabilities |  |  |  |
Current: |  |  |  |
Operating leases |  | Accrued expenses |  | 1,194 |
Finance leases |  | Capital lease obligations and current obligations under long-term debt |  | 90 |
Non-current: |  |  |  |
Operating leases |  | Operating lease liabilities, non-current |  | 5,327 |
Finance leases |  | Capital lease obligations and long-term debt, less current portion |  | $ | 25 |
Components of lease cost are as follows:
($ in thousands) | Three months ended September 30, 2019
Finance lease costs: |
Amortization of ROU assets | $ | 31 |
Interest on lease assets | 3 |
Operating lease costs* | 701 |
Total | $ | 735 |
* Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows:
($ in thousands) | Three months ended September 30, 2019
Supplemental cash flow information: |
Cash paid for amounts included in the measurement of lease liabilities |
Financing cash flows from finance leases | $ | 23 |
Operating cash flows from finance leases | 3 |
Operating cash flows from operating leases | 495 |
Non-cash activity |
Right-of-use assets obtained in exchange for lease obligations: |
Finance lease liabilities | — |
Operating lease liabilities | $ | 3,071 |
Weighted-average remaining lease term and discount rate (as restated) for our leases are as follows:
| Three months ended September 30, 2019
Weighted-average remaining lease term |
Finance leases | 1.5 |
Operating leases | 5.6 |
Weighted-average discount rate |
Finance leases | 10.0 | %
Operating leases | 6.8 | %
Maturities of lease liabilities by fiscal year for our leases are as follows:
($ in thousands) | Operating Leases |  | Finance Leases
Remainder of 2020 | $ | 1,259 |  |  | $ | 79 |
2021 | 1,361 |  |  | 41 |
2022 | 1,379 |  |  | 12 |
2023 | 1,400 |  |  | 1 |
2024 | 998 |  |  | 1 |
Thereafter | 1,520 |  |  | — |
Total lease payments | $ | 7,917 |  |  | $ | 134 |
Less: Imputed interest | 1,396 |  |  | 19 |
Present value of lease liabilities | $ | 6,521 |  |  | $ | 115 |
In September 2019, the Company entered into an amendment to the lease for its headquarters in Malvern, Pennsylvania that has not yet commenced. The amendment grants the Company approximately 3,400 additional square feet of space in exchange for future minimum lease payments of approximately $350 thousand. The amendment did not alter the lease term and will expire on November 30, 2023. The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows:
($ in thousands) | Operating Leases |  | Capital Leases
2020 | $ | 1,326 |  |  | $ | 106 |
2021 | 1,151 |  |  | 34 |
2022 | 1,180 |  |  | 12 |
2023 | 1,208 |  |  | 1 |
2024 | 859 |  |  | 1 |
Thereafter | 1,550 |  |  | — |
Total minimum lease payments | $ | 7,274 |  |  | $ | 154 |
Less: interest |  |  | (14 | )
Present value of minimum lease payments, net |  |  | 140 |
Less: current obligations under capital leases |  |  | (106 | )
Obligations under capital leases, noncurrent |  |  | $ | 34 |
Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months. Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 3, the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following:
($ in thousands) |  | September 30, 2019 (as restated) |  | June 30, 2019
Cost |  | $ | 31,866 |  |  | 36,190 |
Accumulated depreciation |  | (26,355 | ) |  | (30,473 | )
Net |  | $ | 5,511 |  |  | $ | 5,717 |
The June 30, 2019 property and equipment balances used for the operating lease rental program have been revised. Refer to Note 2 - Restatement and Revision of Prior Period Financial Statements. 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 September 30, 2019 are disclosed within the Finance Receivables footnote. Refer to Note 7 for additional information.

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