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OPERATING & FINANCING LEASES

3 Months Ended

Sep. 30, 2024

NOTE 4 – OPERATING & FINANCING LEASES

The Company accounts for its various operating leases in accordance with Accounting Standards Codification (ASC) 842 – “Leases”, as updated by ASU 2016-02. At the inception of a lease, the Company recognizes right-of-use lease assets and related lease liabilities measured at present value of future lease payments on its balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. Our most common initial term varies in length from 2 to 19 years. Including renewal options negotiated with the landlord, we have a total span of 2 to 16 years at the facilities we lease. The Company reviewed its contracts with vendors and customers, determining that its right-to-use lease assets consisted of only office space operating leases. In determining the right-to-use lease assets and liabilities, the Company did recognize lease extension options which the Company feels would be reasonably exercised. Our incremental borrowing rate (“IBR”) used to discount the stream of operating lease payments is closely related to the interest rates available to the Company.

A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of September 30, 2024 is as follows:


Twelve Months Ending September 30,	Operating Lease Payments			Financing Lease Payments
2025	$	5,920		$	244
2026		5,658			244
2027		5,363			122
2028		5,167			—
2029		4,850			—
Thereafter		28,069			—
Present value discount		(14,523	)		(27	)
Total lease liability	$	40,504		$	583