Leases

6 Months Ended

Dec. 31, 2024

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 three and six months ended December 31, 2024, the Company recorded lease termination costs of $1,166 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. These amounts are included in the components of lease expense below.

The components of lease expense are as follows:


	Three Months Ended December 31,				Six Months Ended December 31,
(In thousands)	2024		2023		2024		2023
Operating lease cost	$	5,146	$	3,656	$	8,663	$	7,376

Finance leases:
Amortization of leased assets		189		176		340		384
Interest on lease liabilities		26		12		43		33

Total finance lease cost	$	215	$	188	$	383	$	417

Supplemental cash flow information related to leases are as follows:


	Six Months Ended December 31,
(In thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	5,813	$	7,353
Operating cash flows paid for interest portion of finance leases		43		36
Financing cash flows paid for principal portion of finance leases		360		306

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	16,420	$	(265	)

Supplemental balance sheet information related to leases are as follows:


	December 31,			June 30,
(In thousands)	2024			2024
Operating leases:
Operating lease right-of-use assets	$	57,561		$	49,850

Current portion of operating lease liabilities		12,598			11,629
Operating lease liabilities, net of current portion		52,372			45,026

Total operating lease liabilities	$	64,970		$	56,655

Finance leases:
Property, technology, and equipment, net	$	1,733		$	1,236

Current portion of finance lease liabilities		699			643
Finance lease liabilities, net of current portion		1,109			677

Total finance lease liabilities	$	1,808		$	1,320

Weighted average remaining lease term:
Operating leases	6.4 years			5.7 years
Finance leases	4.1 years			3.3 years

Weighted average discount rate:
Operating leases		5.76	%		5.52	%
Finance leases		5.74	%		5.62	%

As of December 31, 2024, maturities of lease liabilities for each of the next five fiscal years ending June 30 and thereafter are as follows:


(In thousands)	Operating			Finance
2025 (remaining)	$	8,083		$	434
2026		14,995			518
2027		13,691			296
2028		9,371			282
2029		6,513			271
Thereafter		26,354			239

Total lease payments		79,007			2,040

Less imputed interest		(14,037	)		(232	)

Total lease liabilities	$	64,970		$	1,808