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Note 13 - Leases | 9 Months Ended
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Mar. 31, 2026
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | 13. Leases Our leases primarily consist of operating leases related to our facilities located in Orlando, Florida; Plano, Texas; Hudson, New Hampshire; Riga, Latvia; and Zhenjiang, China, and finance leases related to certain equipment located in Orlando, Florida and Riga, Latvia. The operating leases for facilities are non-cancelable operating leases, with terms ending at various times through 2034. We typically include options to renew (or terminate) in our lease term, and as part of our right-of-use (“ROU”) assets and lease liabilities, when it is reasonably certain that we will exercise such options. We currently have eighteen finance lease agreements entered into during fiscal years 2024 thru 2026 with terms ranging from three to five years. The finance leases are for computer and manufacturing equipment. Our operating lease ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. One of our operating leases includes renewal options, which were not included in the measurement of the operating lease ROU assets and related lease liabilities. The lease on the premises comprising our primary facility in Orlando, Florida. The Orlando Facility lease was amended in April 2021, and again in September 2021, to expand the space. The lease term was extended and will expire on March 31, 2034. Our wholly-owned subsidiary, G5 Infrared, has a lease agreement for a manufacturing and office facility in Hudson, New Hampshire, which expires December 31, 2031. The Company’s wholly-owned subsidiary, Visimid, has a lease agreement for a manufacturing and office facility in Plano, Texas, which commenced September 1, 2025 for a five-year term. The prior facility was relocated to this larger facility, and the lease of the prior facility, which was set to expire October 31, 2026, was terminated in March 2026 pursuant to a mutual agreement with the lessor. Our wholly-owned subsidiary, LPOIZ, has a lease agreement for a manufacturing and office facility in Zhenjiang, China, which expires December 31, 2027. ISP’s wholly-owned subsidiary, ISP Latvia, has two lease agreements for a manufacturing and office facility in Riga, Latvia, which leases expire December 31, 2030. The components of lease expense for the three and nine months ended March 31, 2026 and 2025 were as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | March 31, |  |  | March 31, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Operating lease cost |  | $ | 319,082 |  |  | $ | 265,245 |  |  | $ | 883,194 |  |  | $ | 803,725 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation of lease assets |  |  | 52,274 |  |  |  | 45,466 |  |  |  | 142,530 |  |  |  | 126,198 |
Interest on lease liabilities |  |  | 19,717 |  |  |  | 18,105 |  |  |  | 54,547 |  |  |  | 49,194 |
Total finance lease cost |  |  | 71,991 |  |  |  | 63,571 |  |  |  | 197,077 |  |  |  | 175,392 |
Total lease cost |  | $ | 391,073 |  |  | $ | 328,816 |  |  | $ | 1,080,271 |  |  | $ | 979,117 |
Supplemental balance sheet information related to the leases as of March 31, 2026 and June 30, 2025 was as follows:
|  |  | March 31, |  |  | June 30, |
| Classification |  | 2026 |  |  | 2025 |
Assets: |  |  |  |  |  |  |  |  |
Operating lease assets | Operating lease assets |  | $ | 8,406,283 |  |  | $ | 7,429,378 |
Finance lease assets | Property and equipment, net(1) |  |  | 1,044,445 |  |  |  | 920,569 |
Total lease assets |  |  | $ | 9,450,728 |  |  | $ | 8,349,947 |
Liabilities: |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |
Operating leases | Operating lease liabilities, current |  | $ | 1,177,423 |  |  | $ | 1,254,062 |
Finance leases | Finance lease liabilities, current |  |  | 271,015 |  |  |  | 206,518 |
Noncurrent: |  |  |  |  |  |  |  |  |
Operating leases | Operating lease liabilities, less current portion |  |  | 9,197,980 |  |  |  | 8,326,250 |
Finance leases | Finance lease liabilities, less current portion |  |  | 460,316 |  |  |  | 421,363 |
Total lease liabilities |  |  | $ | 11,106,734 |  |  | $ | 10,208,193 |
| (1) | Finance lease assets were recorded net of accumulated depreciation of approximately $0.4 million and $0.3 million as of March 31, 2026 and June 30, 2025, respectively.
Lease term and discount rate information related to leases was as follows:
|  | March 31, |
Lease Term and Discount Rate |  | 2026 |
Weighted Average Remaining Lease Term (in years) |  |  |  |
Operating leases |  |  | 7.2 |
Finance leases |  |  | 2.8 |
Weighted Average Discount Rate |  |  |  |
Operating leases |  |  | 3.1 | %
Finance leases |  |  | 9.2 | %
Supplemental cash flow information was as follows for the nine months ended March 31, 2026 and 2025:
|  | Nine Months Ended |
|  | March 31, |
|  | 2026 |  |  | 2025 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash used for operating leases |  | $ | 1,056,876 |  |  | $ | 887,180 |
Operating cash used for finance leases |  | $ | 54,548 |  |  | $ | 49,194 |
Financing cash used for finance leases |  | $ | 168,089 |  |  | $ | 133,711 |
Future maturities of lease liabilities were as follows as of March 31, 2026:
|  | Finance |  |  | Operating |
Fiscal year ending: |  | Leases |  |  | Leases |
June 30, 2026 (remaining three months) |  | $ | 83,868 |  |  | $ | 397,980 |
June 30, 2027 |  |  | 318,382 |  |  |  | 1,592,513 |
June 30, 2028 |  |  | 274,265 |  |  |  | 1,661,520 |
June 30, 2029 |  |  | 116,952 |  |  |  | 1,660,647 |
June 30, 2030 |  |  | 23,779 |  |  |  | 1,705,603 |
Thereafter |  |  | 18,278 |  |  |  | 4,926,194 |
Total future minimum payments |  |  | 835,524 |  |  |  | 11,944,457 |
Less imputed interest |  |  | (104,193 | ) |  |  | (1,569,054 | )
Present value of lease liabilities |  | $ | 731,331 |  |  | $ | 10,375,403 |

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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