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Note 15 - Leases | 3 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | NOTE 15 - LEASES The Company leases certain manufacturing facilities along with a small office space, a company vehicle, several forklifts, several small tooling items, and various items of office equipment. All but one of the Company’s leases are operating leases. Leases have a remaining term of one to five years some of which have an option to renew. The Company does not assume renewals in determining the lease term unless the renewals are deemed reasonably certain. The lease agreements do not contain any material residual guarantees or material variable lease payments. The Company has periodically entered into short-term operating leases with an initial term of twelve months or less. The Company elected not to record these leases on the balance sheet. For the three months ended September 30, 2020 and 2019, the rent expense for these leases is immaterial. The Company has certain leases that contain lease and non-lease components and has elected to utilize the practical expedient to account for these components together as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. The Company used its incremental borrowing rate when determining the present value of lease payments. The adoption of the new lease standard resulted in the recognition of right-of-use assets (ROU assets) of $10.4 million and lease liabilities of $10.8 million which includes the impact of existing deferred rents and tenant improvement allowances on the consolidated balance sheets as of July 1, 2019 for the Company’s real estate leases. The adoption of the new standard resulted in no material impact to the consolidated statements of operations or consolidated statements of cash flow.
|  | Three months ended |  |  | Three months ended |
(In thousands) |  | September 30, 2020 |  |  | September 30, 2019 |
Operating lease cost |  | $ | 573 |  |  | $ | 587 |
Financing lease cost: |  |  |  |  |  |  |  |
Amortization of right of use assets |  |  | 73 |  |  |  | - |
Interest on lease liabilities |  |  | 24 |  |  |  | - |
Variable lease cost |  |  | 1 |  |  |  | - |
Total lease cost |  | $ | 671 |  |  | $ | 587 |
Supplemental Cash Flow Information: |  |  |  |  |  |  |  |
|  | Three months ended |  |  | Three months ended |
(In thousands) |  | September 30, 2020 |  |  | September 30, 2019 |
Cash flows from operating leases |  |  |  |  |  |  |  |
Fixed payments - operating cash flows |  | $ | 570 |  |  | $ | 573 |
Liability reduction - operating cash flows |  | $ | 461 |  |  | $ | 443 |
Cash flows from finance leases |  |  |  |  |  |  |  |
Interest - operating cash flows |  | $ | 24 |  |  | $ | - |
Repayments of principal portion - financing cash flows |  | $ | 58 |  |  | $ | - |
Operating Leases: |  | At September 30, 2020 |  |  | At June 30, 2020 |
Total operating right-of-use assets |  | $ | 8,195 |  |  | $ | 8,663 |
Accrued expenses (Current liabilities) |  | $ | 292 |  |  | $ | 376 |
Long-term operating lease liability |  |  | 8,640 |  |  |  | 9,021 |
Total operating lease liabilities |  | $ | 8,932 |  |  | $ | 9,397 |
Weighted Average remaining Lease Term (in years) |  |  | 4.36 |  |  |  | 4.59 |
Weighted Average Discount Rate |  |  | 4.85 | % |  |  | 4.85 | %
Finance Leases: |  | At September 30, 2020 |  |  | At June 30, 2020 |
Buildings under finance leases |  | $ | 2,033 |  |  | $ | 2,033 |
Accumulated depreciation |  |  | (121 | ) |  |  | (48 | )
Total finance lease assets, net |  | $ | 1,912 |  |  | $ | 1,985 |
Accrued expenses (Current liabilities) |  | $ | 242 |  |  | $ | 239 |
Long-term finance lease liability |  |  | 1,694 |  |  |  | 1,755 |
Total finance lease liabilities |  | $ | 1,936 |  |  | $ | 1,994 |
Weighted Average remaining Lease Term (in years) |  |  | 6.58 |  |  |  | 6.83 |
Weighted Average Discount Rate |  |  | 4.86 | % |  |  | 4.86 | %
Maturities of Lease Liability: |  | Operating Lease |  |  | Finance Lease |
|  | Liabilities |  |  | Liabilities |
2021 |  | $ | 1,864 |  |  | $ | 270 |
2022 |  |  | 2,293 |  |  |  | 329 |
2023 |  |  | 2,241 |  |  |  | 329 |
2024 |  |  | 1,924 |  |  |  | 335 |
2025 |  |  | 1,345 |  |  |  | 362 |
Thereafter |  |  | 360 |  |  |  | 664 |
Total lease payments |  |  | 10,027 |  |  |  | 2,289 |
Less: Interest |  |  | (1,095 | ) |  |  | (353 | )
Present Value of Lease Liabilities |  | $ | 8,932 |  |  | $ | 1,936 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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