Leases

9 Months Ended

Mar. 31, 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 three and nine months ended March 31, 2025, the Company recorded lease termination costs of $210 and $1,376 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 March 31,				Nine Months Ended March 31,
(In thousands)	2025		2024		2025		2024
Operating lease cost	$	3,591	$	3,529	$	12,254	$	10,905

Finance leases:
Amortization of leased assets		186		171		526		555
Interest on lease liabilities		24		20		67		53

Total finance lease cost	$	210	$	191	$	593	$	608

Supplemental cash flow information related to leases are as follows:


	Nine Months Ended March 31,
(In thousands)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	8,954	$	10,595
Operating cash flows paid for interest portion of finance leases		67		53
Financing cash flows paid for principal portion of finance leases		555		452

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	16,969	$	5,278
Finance leases		848		211

Supplemental balance sheet information related to leases are as follows:


	March 31,			June 30,
(In thousands)	2025			2024
Operating leases:
Operating lease right-of-use assets	$	55,242		$	49,850

Current portion of operating lease liabilities		12,484			11,629
Operating lease liabilities, net of current portion		49,855			45,026

Total operating lease liabilities	$	62,339		$	56,655

Finance leases:
Property, technology, and equipment, net	$	1,536		$	1,236

Current portion of finance lease liabilities		566			643
Finance lease liabilities, net of current portion		1,036			677

Total finance lease liabilities	$	1,602		$	1,320

Weighted average remaining lease term:
Operating leases	6.2 years			5.7 years
Finance leases	4.1 years			3.3 years

Weighted average discount rate:
Operating leases		5.79	%		5.52	%
Finance leases		5.83	%		5.62	%

As of March 31, 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
2025 (remaining)	$	5,408		$	284
2026		15,028			511
2027		13,716			296
2028		9,411			282
2029		6,565			271
Thereafter		26,285			238

Total lease payments		76,413			1,882

Less imputed interest		(14,074	)		(280	)

Total lease liabilities	$	62,339		$	1,602