The table below presents additional information related to the Company’s operating leases (in thousands):

	Nine months ended March 31,				Three months ended March 31,
	2024		2023		2024		2023
Operating lease cost
Operating lease cost (1)	$	3,012	$	2,581	$	976	$	965
Variable lease cost (2)		3,460		156		1,242		12
Total lease cost	$	6,472	$	2,737	$	2,218	$	977

(1)

Expenses are classified as selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

(2)

Certain of the Company’s subsidiaries lease space at locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as part of a revenue sharing arrangement. The Company did not report this variable lease cost in the three or nine months ended March 31, 2023 and does not believe the omission is material to the Company’s consolidated financial statements. These expenses are classified within cost of sales in the Company’s condensed consolidated statements of operations.

The table below presents lease-related terms and discount rates as of March 31, 2024:

		March 31, 2024
Weighted average remaining lease terms
Operating leases		3.7 years
Weighted average discount rate
Operating leases		3.5 %

Schedule of Minimum Lease Payments Receivable

The future minimum lease payments receivable for sales type leases are as follows (in thousands):

Fiscal years ending June 30,	Total Minimum Lease Payments Receivable		Amortization of Unearned Income		Net Investment in Sales Type Leases
2024 (remainder of)	$	1,332	$	859	$	473
2025		4,517		3,003		1,514
2026		3,681		2,286		1,395
2027		2,820		1,602		1,218
2028		1,786		898		888
Thereafter		2,008		941		1,067
					$	6,555	*

* Excludes residual values of $2.9 million.