Leases

12 Months Ended

Jun. 30, 2025

NOTE 5 – LEASES

The Company has finance leases for equipment, and operating leases for office space, warehouse space, and other equipment with lease terms expiring at various dates through October 2034. During the year ended June 30, 2025, the Company recorded lease termination costs of $1,491 for exiting an existing warehouse facility prior to the conclusion of the lease term and relocating to a larger facility in British Columbia to expand its existing operations.

The components of lease expense, including the lease terminations costs, are as follows:


	Year Ended June 30,
(In thousands)	2025		2024
Operating lease cost	$	16,186	$	14,357

Finance leases:
Amortization of leased assets		605		575
Interest on lease liabilities		86		67

Total finance lease cost	$	691	$	642

Supplemental cash flow information related to leases are as follows:


	Year Ended June 30,
(In thousands)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	12,333	$	11,096
Operating cash flows paid for interest portion of finance leases		86		67
Financing cash flows paid for principal portion of finance leases		917		612

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	17,290	$	6,277
Finance leases		848		449

Supplemental balance sheet information related to leases are as follows:


	Year Ended June 30,
(In thousands)	2025			2024
Operating leases:
Operating lease right-of-use assets	$	55,066		$	49,850

Current portion of operating lease liabilities		12,741			11,629
Operating lease liabilities, net of current portion		49,245			45,026

Total operating lease liabilities	$	61,986		$	56,655

Finance leases:
Property, technology, and equipment, net	$	1,212		$	1,236

Current portion of finance lease liabilities		282			643
Finance lease liabilities, net of current portion		969			677

Total finance lease liabilities	$	1,251		$	1,320

Weighted average remaining lease term:
Operating leases	6.1 years			5.7 years
Finance leases	4.1 years			3.3 years

Weighted average discount rate:
Operating leases		5.82	%		5.52	%
Finance leases		6.12	%		5.62	%

As of June 30, 2025, maturities of lease liabilities for each of the next five fiscal years ending June 30 and thereafter are as follows:


(In thousands)	Operating			Finance
2026	$	15,931		$	349
2027		14,414			296
2028		9,957			282
2029		6,932			271
2030		6,578			184
Thereafter		21,141			55

Total lease payments		74,953			1,437

Less imputed interest		(12,967	)		(185	)

Total lease liabilities	$	61,986		$	1,251