Leases

6 Months Ended

Dec. 31, 2024

The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. Leases with an initial term of 12 months or less are not recorded on the unaudited interim condensed consolidated balance sheets. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised.

Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows:


Classification		As of December 31, 2024		As of June 30, 2024
Assets
Right-of-use assets	Other assets	$	7,491	$	6,883

Liabilities
Current operating lease liabilities	Accrued expenses	$	2,345	$	2,177
Long-term operating lease liabilities	Other liabilities	6,055		5,763
Total lease liabilities		$	8,400	$	7,940


Classification		Three Months Ended December 31, 2024		Three Months Ended December 31, 2023		Six Months Ended December 31, 2024		Six Months Ended December 31, 2023
Operating lease costs (1)	Cost of sales	$	569	$	639	$	1,135	$	1,344
	Selling and marketing, and general and administrative	198		204		391		444

Sublease income	Other income, net	(9)		(9)		(19)		(19)

Cash paid for amounts included in the measurement of operating lease liabilities	Cash flows from operating activities	659		666		1,326		1,330

(1) Includes short-term leases, which are insignificant, and are not included in the lease liability.

The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase.

The weighted-average remaining lease term as of December 31, 2024 and 2023 was 3.48 and 4.08 years, respectively. As of December 31, 2024 and 2023, the weighted-average discount rate determined based on the Company's incremental borrowing rate is 4.54% and 3.69%, respectively.

Future annual minimum lease payments for the following fiscal years as of December 31, 2024 are as follows:


	Amount
Remainder of 2025	$	1,335
2026	2,669
2027	2,658
2028	1,913
2029	414
2030 and thereafter	138
Total	9,127
Less: imputed interest	(727)
Present value of lease liabilities	$	8,400