XML 44 R32.htm IDEA: XBRL DOCUMENT v3.21.2
LEASES
 12 Months Ended
Jun. 30, 2021
Leases [Abstract]  
LEASES

Company as Lessor

 

Operating leases under which the Company is the lessor arise from leasing the Company’s commercial real estate investment property to third parties. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expenses relating to the property held as investments in operating leases were $72 and $67 for the years ended June 30, 2021 and 2020, respectively.

 

Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on non-cancellable operating leases is contractually due as of June 30, 2021, as follows:

 

2022   $ 145  
2023   $ 16  
    $ 161  

 

Future minimum rental income in China and Thailand to be received from fiscal year 2021 to fiscal year 2022 on non-cancellable operating leases is contractually due as of June 30, 2020, as follows:

 

2021   $ 120  
2022   $ 114  
    $ 234  

 

 

Sales-type lease which the Company is the lessor arise from lease of four units Chiller System. The Company classifies its lease arrangements at inception of the arrangement. The lease term is 3 years, contains an automatic transfer of title at the end of the lease term and a guarantee of residual value at the end of the lease term. The customer is required to pay for executory cost such as taxes.

 

Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of four units of chiller systems are as follows:

 

  June 30,
Components of Lease Balances  2021
Assets     
Gross financial sales receivable  $65 
Unearned finance income   (7)
Financed Sales Receivable  $58 
Net financed sales receivables due within one year  $19 
Net financed sales receivables due after one year  $39 

 

As of June 30, 2021, the financed sale receivables had a weighted average effective interest rate of 13.2% and weighted average remaining lease term of 2.75 years.

 

Company as Lessee

 

The Company has operating leases for corporate offices and research and development facilities with remaining lease terms of one year to three years and finance leases for plant and equipment.

 

Supplemental balance sheet information related to leases is as follows (in thousands):

 

      June 30,  
Components of Lease Balances Classification   2021  
Assets        
  Operating lease assets Right-of-use asset-operating, net   $ 1,876  
  Finance lease assets Property, plant & equipment     1,413  

Accumulated amortization

 Right-of-use asset

       (1,199 )
  Assets Property, plant & equipment   $ 214  
Total Leased Assets     $ 2,090  

 

Liabilities        
Operating Lease Liabilities        
  Current portion Current portion of lease liability- operating   $ 672  
  Long-term portion Lease liability- operating, net of current portion     1,204  
      Total Operating Lease Liabilities     $ 1,876  
Finance Lease Liabilities          
Current portion of finance leases Current portion of lease liability- finance   $ 197  
Net of current portion of finance leases Lease liability- finance, net of current portion     253  
      Total Finance Lease Liabilities     $ 450  
         
Total Lease Liabilities     $ 2,326  

  

    3 Months Ended     12 Months Ended  
Lease Cost   June 30, 2021  
Finance lease cost:            
Interest on lease liabilities     7     $ 42  
Amortization of right-of-use asset     74       334  
Total Finance Lease Cost     81       376  
                 
Operating Lease Costs   $ 199     $ 765  
                 

 

Other information related to leases was as follows (in thousands except lease term and discount rate):

    June 30,  
    2021  
Cash paid for amounts included in the measurement of lease liabilities      
      Operating cash flows from finance leases   $ (40 )
      Operating cash flows from operating leases   $ (764 )
Right-of-use assets obtained in exchange for new operating lease liabilities   $ 932  
         
Weighted average remaining lease term (years):        
      Finance leases     2.72  
      Operating leases     3.09  
Weighted average discount rate:        
      Finance leases     3.56  
      Operating leases     4.60  

 

As of June 30, 2021, the maturities of the Company's operating and finance lease liabilities were as follow:

    Operating Lease Liabilities     Finance Lease Liabilities  
Fiscal Year            
2022     748       218  
2023     537       137  
2024     313       111  
2025     291       22  
Thereafter     156       -  
Total future minimum lease payments   $ 2,045     $ 488  
Less: amount representing interest     (169 )     (38 )
Present value of net minimum lease payments     1,876       450  
                 
Presentation on statement of financial position                
Current   $ 672     $ 197  
Non-Current   $ 1,204     $ 253  

 

As of June 30, 2020, the maturities of the Company's operating and finance lease liabilities were as follows:

 

    Operating Lease Liabilities     Finance Lease Liabilities  
Fiscal Year            
2021     509       265  
2022     317       211  
2023     168       133  
2024     -       107  
Thereafter     -       20  
Total future minimum lease payments   $ 994     $ 736  
Less: amount representing interest     (50 )     (70 )
Present value of net minimum lease payments     944       666  
                 
Presentation on statement of financial position                
Current   $ 477     $ 231  
Non-Current   $ 467     $ 435