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Note 13 - Leases

3 Months Ended

Sep. 30, 2023

NOTE 13 - LEASES

The Company leases certain manufacturing facilities along with a small office space, several forklifts, several small tooling items, and various items of office equipment. The Company also acquired buildings, machinery, and forklift leases with the acquisition of JSI, as well as one sublease. All but two of the Company’s leases are operating leases. Leases have a remaining term of one to seven 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, 2023, and 2022, 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.

	Three Months Ended
	September 30
(In thousands)	2023		2022

Operating lease cost	$	906	$	863
Financing lease cost:
Amortization of right of use assets		73		74
Interest on lease liabilities		15		18
Variable lease cost		22		22
Sublease income		-		(116	)
Total lease cost	$	1,016	$	861

Supplemental Cash Flow Information:	Three Months Ended
	September 30
(In thousands)	2023		2022

Cash flows from operating leases
Fixed payments - operating cash flows	$	764	$	885
Liability reduction - operating cash flows	$	680	$	779

Cash flows from finance leases
Interest - operating cash flows	$	15	$	18
Repayments of principal portion - financing cash flows	$	77	$	66

Operating Leases:	September 30,			June 30,
	2023			2023

Total operating right-of-use assets	$	10,742		$	8,921

Accrued expenses (Current liabilities)	$	3,805		$	3,566
Long-term operating lease liability		7,626			5,954
Total operating lease liabilities	$	11,431		$	9,520

Weighted Average remaining Lease Term (in years)		4.04			3.31

Weighted Average Discount Rate		5.32	%		5.44	%

Finance Leases:	September 30,			June 30,
	2023			2023

Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		34			34
Accumulated depreciation		(1,014	)		(929	)
Total finance lease assets, net	$	1,053		$	1,138

Accrued expenses (Current liabilities)	$	295		$	284
Long-term finance lease liability		881			960
Total finance lease liabilities	$	1,176		$	1,244

Weighted Average remaining Lease Term (in years)		3.58			3.83

Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases			Net Lease Commitments
2024	$	3,805		$	295		$	(283	)	$	3,817
2025		3,459			362			(31	)		3,790
2026		1,949			362			-			2,311
2027		1,587			275			-			1,862
2028		882			-			-			882
Thereafter		1,253			-			-			1,253
Total lease payments	$	12,935		$	1,294		$	(314	)	$	13,915
Less: Interest		(1,504	)		(118	)					(1,622	)
Present Value of Lease Liabilities	$	11,431		$	1,176					$	12,293