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FINANCE RECEIVABLES | 3 Months Ended
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Sep. 30, 2020
Receivables [Abstract] |
FINANCE RECEIVABLES | FINANCE RECEIVABLES The Company's finance receivables consist of financed devices under the Quickstart program and Cantaloupe devices contractually associated with the Seed platform. Predominately all of the Company’s finance receivables agreements are classified as non-cancellable sixty month sales-type leases. As of September 30, 2020 and June 30, 2020, finance receivables consist of the following:
($ in thousands) |  | September 30, 2020 |  | June 30, 2020
Current finance receivables, net |  | $ | 7,356 |  |  | 7,468 |
Finance receivables due after one year |  | 10,385 |  |  | 11,213 |
Total finance receivables, net of nonperforming allowance of $559 and $150, respectively |  | $ | 17,741 |  |  | $ | 18,681 |
On July 1, 2020, the Company adopted Topic 326 using the modified retrospective approach, and began calculating our allowance for nonperforming finance receivables under an expected loss model rather than an incurred loss model. Prior to July 1, 2020, the allowance was based on an estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. We collect lease payments from customers as part of the flow of funds from our transaction processing service. Balances are considered past due if customers do not have sufficient transaction revenue to cover the monthly lease payment by the end of the monthly billing period. The Company routinely monitors customer payment performance and uses prior payment performance as a measure to assess the capability of the customer to repay contractual obligations of the lease agreements as scheduled. On an as-needed basis, qualitative information may be taken into consideration if new information arises related to the customer’s ability to repay the lease. Credit risk for these receivables is continuously monitored by management and reflected within the allowance for nonperforming finance receivables by aggregating leases with similar risk characteristics into pools that are collectively assessed. Because the Company’s lease contracts generally have similar terms, customer characteristics around transaction processing volume and sales were used to disaggregate the leases. Our key credit quality indicator is the amount of transaction revenue we process for each customer relative to their lease payment due, as we consider this customer characteristic to be the strongest predictor of the risk of customer default. Customers with low processing volume or with transaction sales that are insufficient to cover the lease payment are considered to be at a higher risk of customer default. Customers are pooled based on their ratio of gross sales to required monthly lease obligations into two categories for high ratio and low ratio customers. Using these two categories, we performed an analysis of historical write-offs to calculate reserve percentages by aging buckets for each category of customer. At September 30, 2020, the gross lease payable by current payment performance on a contractual basis and year of origination consisted of the following:
|  | Leases by Origination
($ in thousands) |  | Up to 1 Year Ago |  | Between 1 and 2 Years Ago |  | Between 2 and 3 Years Ago |  | Between 3 and 4 Years Ago |  | Between 4 and 5 Years Ago |  | More than 5 Years Ago |  | Total
Current |  | $ | 4,680 |  |  | $ | 4,013 |  |  | $ | 4,986 |  |  | $ | 3,073 |  |  | $ | 248 |  |  | $ | 18 |  |  | $ | 17,018 |
30 days and under |  | 24 |  |  | 51 |  |  | 102 |  |  | 11 |  |  | — |  |  | — |  |  | 188 |
31-60 days |  | 5 |  |  | 8 |  |  | 31 |  |  | 10 |  |  | 1 |  |  | — |  |  | 55 |
61-90 days |  | 26 |  |  | 29 |  |  | 64 |  |  | 13 |  |  | 2 |  |  | — |  |  | 134 |
Greater than 90 days |  | 82 |  |  | 164 |  |  | 519 |  |  | 100 |  |  | 31 |  |  | 9 |  |  | 905 |
Total finance receivables |  | $ | 4,817 |  |  | $ | 4,265 |  |  | $ | 5,702 |  |  | $ | 3,207 |  |  | $ | 282 |  |  | $ | 27 |  |  | $ | 18,300 |
At June 30, 2020, the gross lease payable by current payment performance on a contractual basis and year of origination consisted of the following:
|  | Leases by Origination
($ in thousands) |  | Up to 1 Year Ago |  | Between 1 and 2 Years Ago |  | Between 2 and 3 Years Ago |  | Between 3 and 4 Years Ago |  | Between 4 and 5 Years Ago |  | More than 5 Years Ago |  | Total
Current |  | $ | 4,950 |  |  | $ | 4,406 |  |  | $ | 4,811 |  |  | $ | 2,730 |  |  | $ | 555 |  |  | $ | 22 |  |  | $ | 17,474 |
30 days and under |  | 40 |  |  | 66 |  |  | 121 |  |  | 28 |  |  | 11 |  |  | 1 |  |  | 267 |
31-60 days |  | 13 |  |  | 15 |  |  | 13 |  |  | — |  |  | — |  |  | — |  |  | 41 |
61-90 days |  | 10 |  |  | 44 |  |  | 62 |  |  | 19 |  |  | 3 |  |  | — |  |  | 138 |
Greater than 90 days |  | 22 |  |  | 263 |  |  | 537 |  |  | 67 |  |  | 14 |  |  | 8 |  |  | 911 |
Total finance receivables |  | $ | 5,035 |  |  | $ | 4,794 |  |  | $ | 5,544 |  |  | $ | 2,844 |  |  | $ | 583 |  |  | $ | 31 |  |  | $ | 18,831 |
At September 30, 2020, credit quality indicators by year of origination consisted of the following:
|  | Leases by Origination
($ in thousands) |  | Up to 1 Year Ago |  | Between 1 and 2 Years Ago |  | Between 2 and 3 Years Ago |  | Between 3 and 4 Years Ago |  | Between 4 and 5 Years Ago |  | More than 5 Years Ago |  | Total
High ratio customers |  | $ | 4,321 |  |  | $ | 3,607 |  |  | $ | 4,434 |  |  | $ | 2,519 |  |  | $ | 121 |  |  | $ | 9 |  |  | $ | 15,011 |
Low ratio customers |  | 496 |  |  | 658 |  |  | 1,268 |  |  | 688 |  |  | 161 |  |  | 18 |  |  | 3,289 |
Total finance receivables |  | $ | 4,817 |  |  | $ | 4,265 |  |  | $ | 5,702 |  |  | $ | 3,207 |  |  | $ | 282 |  |  | $ | 27 |  |  | $ | 18,300 |
The following table represents a rollforward of the allowance for nonperforming finance receivables for the three months ending September 30, 2020 and 2019:
|  | Three months ended September 30, |  | Three months ended September 30,
($ in thousands) |  | 2020 |  | 2019
Beginning balance, prior to adopting ASC 326 |  | $ | 150 |  |  | $ | 606 |
Impact of ASC 326 |  | 409 |  |  | — |
Provision for credit losses |  | — |  |  | 1 |
Charge-offs |  | — |  |  | — |
Ending balance |  | $ | 559 |  |  | $ | 607 |
Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows:
($ in thousands) |
2021 | $ | 8,563 |
2022 | 5,607 |
2023 | 4,447 |
2024 | 2,675 |
2025 | 1,126 |
Thereafter | 44 |
Total amounts to be collected | 22,462 |
Less: interest | (3,603) |
Less: allowance for nonperforming receivables | (559) |
Total finance receivables | $ | 18,300 |

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
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