Leases

3 Months Ended

Sep. 30, 2022

NOTE 5 – LEASES

The Company has operating and finance leases for office space, warehouse space, trailers, and other equipment. Lease terms expire at various dates through May 2032 with options to renew for varying terms at the Company’s sole discretion. The Company has not included these options to extend or terminate in its calculation of right-of-use assets or lease liabilities as it is not reasonably certain to exercise these options.

In July 2022, the Company commenced a new lease for warehouse space in Calgary, Alberta with a 17-month lease term ending November 30, 2023. The Company also extended the lease for the warehouse space in Delta, British Columbia and the lease for warehouse space in Brampton, Ontario for an additional 3 years ending October 31, 2025.

In August 2022, the Company commenced a new lease for warehouse space in Toronto, Ontario with an 18-month lease term ending January 31, 2024.

The components of lease expense were as follows:


	Three Months Ended September 30,
(In thousands)	2022		2021
Operating:
Operating lease cost	$	3,014	$	2,324

Financing:
Amortization of leased assets		153		154
Interest on lease liabilities		19		28

Total finance lease cost	$	172	$	182

Supplemental cash flow information related to leases was as follows:


	Three Months Ended September 30,
(In thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows arising from operating leases	$	2,327	$	1,802
Operating cash flows arising from finance leases		19		29
Financing cash flows arising from finance leases		156		183

Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	5,868	$	65

Supplemental balance sheet information related to leases was as follows:


	September 30,			June 30,
(In thousands)	2022			2022
Operating lease:
Operating lease right-of-use assets	$	44,143		$	41,111

Current portion of operating lease liability		10,027			7,641
Operating lease liability, net of current portion		38,712			37,776

Total operating lease liabilities	$	48,739		$	45,417

Finance lease:
Property, technology, and equipment, net	$	1,878		$	2,039

Current portion of finance lease liability		538			577
Finance lease liability, net of current portion		1,084			1,223

Total finance lease liabilities	$	1,622		$	1,800

Weighted average remaining lease term:
Operating leases	5.0 years			5.5 years
Finance leases	3.1 years			3.4 years

Weighted average discount rate:
Operating leases		4.50	%		4.33	%
Finance leases		4.48	%		4.54	%

As of September 30, 2022, maturities of lease liabilities for each of the next five fiscal years ending June 30 and thereafter are as follows:


(In thousands)	Operating			Finance
2023 (remaining)		8,941			453
2024		11,474			568
2025		10,939			538
2026		9,211			175
2027		7,679			—
Thereafter		6,268			—

Total lease payments		54,512			1,734

Less imputed interest		(5,773	)		(112	)

Total lease liability	$	48,739		$	1,622