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Note 21 - Leases

9 Months Ended

Mar. 31, 2025

21.

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 48 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of 20 years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $17 and $34 for the three months ended March 31, 2025, and March 31, 2024, respectively.

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to the fiscal year ended June 30, 2029 (“Fiscal 2029”) on non-cancelable operating leases is contractually due as follows as of March 31, 2025:

Remainder of 2025	$	39
2026		61
2027		19
2028		16
2029		4
	$	139

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to Fiscal 2027 on non-cancelable operating leases is contractually due as follows as of June 30, 2024:

2025	$	131
2026		44
2027		16
	$	191

Company as Lessee

The Company is the lessee under operating leases for corporate offices and manufacturing and testing facilities with remaining lease terms of one year to five years and finance leases for plant and equipment.

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

Components of Lease Balances	March 31,			June 30,
	2025			2024
	(Unaudited)
Finance Leases (Plant and Equipment)
Plant and equipment, at cost	$	1,642		$	1,649
Accumulated depreciation		(1,110	)		(1,091	)
Plant and Equipment, Net	$	532		$	558

Current portion of finance leases	$	45		$	57
Net of current portion of finance leases		-			34
Total Finance Lease Liabilities	$	45		$	91

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)
Operating lease right-of-use assets, Net	$	1,107		$	1,887

Current portion of operating leases		698			1,162
Net of current portion of operating leases		407			725
Total Operating Lease Liabilities	$	1,105		$	1,887

As of March 31, 2025, the Company has entered into lease agreements for properties that have been signed but have not yet commenced. The leases agreements are expected to begin on June 1, 2025. The future minimum lease payments are $5 for the remainder of Fiscal 2025, $62 for Fiscal 2026, $62 for Fiscal 2027 and $123 thereafter. Since the lease terms have yet to commence, the Company has not recognized a Right-of-Use (ROU) asset and its corresponding lease liability in the balance sheet as of March 31, 2025. The ROU asset and lease liabilities will be recognized in the financial statements when the lease term commences.

	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2025		2024		2025		2024
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Lease Cost
Finance lease cost:
Interest on finance lease	$	1	$	1	$	3	$	6
Amortization of right-of-use assets		19		13		57		69
Total finance lease cost		20		14		60		75

Operating Lease Costs	$	355	$	393	$	1,130	$	1,147

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

	Nine Months Ended
	March 31,			March 31,
	2025			2024
	(Unaudited)			(Unaudited)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases	$	(3	)	$	(5	)
Operating cash flows from operating leases		(1,077	)		(1,056	)
Finance cash flows from finance leases		(48	)		(82	)
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities		-			732

Weighted-Average Remaining Lease Term:
Finance leases		1.00			1.07
Operating leases		2.25			1.83
Weighted-Average Discount Rate:
Finance leases		2.28	%		2.82	%
Operating leases		5.31	%		5.58	%

As of March 31, 2025, the maturities of the Company’s operating and finance lease liabilities are as follow:

	*Operating*			*Finance*
	*Lease*			*Lease*
	*Liabilities*			*Liabilities*
Fiscal Year
Remainder of Fiscal 2025		308			11
2026		491			35
2027		151			-
Thereafter		220			-
Total future minimum lease payments	$	1,170		$	46
Less: amount representing interest		(65	)		(1	)
Present value of net minimum lease payments	$	1,105		$	45

Presentation on statement of financial position
Current		698			45
Non-Current		407			-

As of June 30, 2024, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

	*Operating*			*Finance*
	*Lease*			*Lease*
	*Liabilities*			*Liabilities*
Fiscal Year
2025	$	1,234		$	61
2026		658			34
2027		86			-
Total future minimum lease payments	$	1,978		$	95
Less: amount representing interest		(91	)		(4	)
Present value of net minimum lease payments	$	1,887		$	91

Presentation on statement of financial position
Current	$	1,162		$	57
Non-Current		725			34