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Note 21 - Leases | 6 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Lessor, Operating Leases [Text Block] | 21. LEASES Company as Lessor Operating leases where we are lessor arise from the leasing of the Company’s commercial and residential real estate investment property. 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 was $18 for both the 3 months ended December 31, 2021 and December 31, 2020. Depreciation expenses relating to the property held as investments in operating leases amounted to $36 for both 6 months ended December 31, 2021, and December 31, 2020. Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on noncancelable operating leases is contractually due as follows as of December 31, 2021:
Remainder of fiscal 2022 |  | $ | 74 |
Fiscal 2023 |  |  | 8 |
|  | $ | 82 |
Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on noncancelable operating leases is contractually due as follows as of June 30, 2021:
Fiscal 2022 |  | $ | 145 |
Fiscal 2023 |  |  | 16 |
|  | $ | 161 |
Sales-type leases under which the Company is the lessor arise from the lease of four units of chiller systems. 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:
Components of Lease Balances |  | December 31, |
|  | 2021 |
Assets |  |  |  |
Gross financial sales receivable |  | $ | 55 |
Unearned finance income |  |  | (5 | )
Financed sales receivable |  | $ | 50 |
Net financed sales receivables due within one year |  | $ | 21 |
Net financed sales receivables due after one year |  | $ | 29 |
As of December 31, 2021, the financed sale receivables had a weighted average effective interest rate of 13.2% and weighted average remaining lease term of 2.5 years. Company as Lessee The Company is the lessee under 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 was as follows (in thousands):
|  | Dec. 31, 2021 (Unaudited) |  |  | June 30, 2021 |
Finance Leases (Plant and Equipment) |  |  |  |  |  |  |  |
Plant and equipment, at cost |  |  | 1,825 |  |  |  | 1,413 |
Accumulated depreciation |  |  | (1,126 | ) |  |  | (1,199 | )
Plant and Equipment, Net |  |  | 699 |  |  |  | 214 |
Current portion of finance leases |  |  | 163 |  |  |  | 197 |
Net of current portion of finance leases |  |  | 178 |  |  |  | 253 |
Total Finance Lease Liabilities |  |  | 341 |  |  |  | 450 |
Operating Leases (Corporate Offices, Research and Development Facilities) |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  | 2,699 |  |  |  | 1,876 |
Current portion of operating leases |  |  | 845 |  |  |  | 672 |
Net of current portion of operating leases |  |  | 1,857 |  |  |  | 1,204 |
Total Operating Lease Liabilities |  |  | 2,702 |  |  |  | 1,876 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | Dec. 31, |  |  | Dec. 31, |  |  | Dec. 31, |  |  |  | Dec. 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  |  | 2020 |
|  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |  |  |  | (Unaudited) |
Lease Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on finance lease |  | $ | 5 |  |  | $ | 8 |  |  | $ | 11 |  |  | $ | 20 |
Amortization of right-of -use assets |  |  | 62 |  |  |  | 63 |  |  |  | 90 |  |  |  | 125 |
Total finance lease cost |  |  | 67 |  |  |  | 71 |  |  |  | 101 |  |  |  | 145 |
Operating Lease Costs |  | $ | 231 |  |  | $ | 189 |  |  | $ | 470 |  |  | $ | 375 |
Other information related to leases was as follows (in thousands except lease term and discount rate):
|  | Six months ended |  |  | Six months ended |
|  | Dec. 31, |  |  | Dec. 31, |
|  | 2021 |  |  | 2020 |
|  | (Unaudited) |  |  | (Unaudited) |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities |  |  |  |  |  |  |  |
Operating cash flows from finance leases |  | $ | 13 |  |  | $ | 19 |
Operating cash flows from operating leases |  |  | 470 |  |  |  | 375 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities |  |  | - |  |  |  | 847 |
Weighted-Average Remaining Lease Term: |  |  |  |  |  |  |  |
Finance leases |  |  | 2.69 |  |  |  | 3.31 |
Operating leases |  |  | 3.57 |  |  |  | 2.97 |
Weighted-Average Discount Rate: |  |  |  |  |  |  |  |
Finance leases |  |  | 3.50 | % |  |  | 3.36 | %
Operating leases |  |  | 4.81 | % |  |  | 4.72 | %
As of December 31, 2021, the maturities of the Company's operating and finance lease liabilities are as follow:
|  | Operating Lease Liabilities |  |  | Finance Lease Liabilities |
Fiscal Year |  |  |  |  |  |  |  |
Remainder of 2022 |  |  | 516 |  |  |  | 173 |
2023 |  |  | 805 |  |  |  | 114 |
2024 |  |  | 566 |  |  |  | 76 |
2025 |  |  | 565 |  |  |  | 4 |
2026 |  |  | 444 |  |  |  | - |
Thereafter |  |  | 73 |  |  |  | - |
Total future minimum lease payments |  |  | 2,969 |  |  |  | 367 |
Less: amount representing interest |  |  | (267 | ) |  |  | (26 | )
Present value of net minimum lease payments |  |  | 2,702 |  |  |  | 341 |
Presentation on statement of financial position |  |  |  |  |  |  |  |
Current |  |  | 845 |  |  |  | 163 |
Noncurrent |  |  | 1,857 |  |  |  | 178 |
As of June 30, 2021, future minimum lease payments under finance leases and noncancelable operating leases were as follows:
|  | 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 |
Noncurrent |  |  | 1,204 |  |  |  | 253 |

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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