A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset in the Company’s balance sheet. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, totaled $2.8 million and $3.4 million at March 31, 2022 and June 30, 2021, respectively, and are included in Other Assets in the unaudited condensed consolidated balance sheet. The Company evaluates the credit quality of a customer at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new customers and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the contract term and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near‑term risk of non‑payment. The Company performed an assessment of the allowance for credit losses related to its financing receivables. Based upon such assessment, the allowance for credit losses related to such financing receivables was $0.9 million for the periods ended March 31, 2022 and June 30, 2021.

A summary of the Company’s financing receivables is presented as follows (in thousands):


	March 31, 2022			June 30, 2021
Financing receivable	$	6,162		$	7,102
Allowance for credit loss		(943	)		(943	)
Total, net	$	5,219		$	6,159
Reported as:
Current	$	2,458		$	2,772
Non-current		2,761			3,387
Total, net	$	5,219		$	6,159

The Company added and wrote off no amount from the allowance for credit losses during the nine months ended March 31, 2022. The Company added $0.2 million and wrote off $3.6 million from the allowance for credit losses in fiscal year 2021.

Inventories consisted of the following (in thousands):


	March 31, 2022		June 30, 2021
Raw materials	$	56,804	$	45,301
Work-in-process		17,642		22,014
Finished goods		63,073		58,614
Inventories	$	137,519	$	125,929

Property and equipment, net consisted of the following (in thousands):


	March 31, 2022			June 30, 2021
Furniture and fixtures	$	1,783		$	1,636
Computer and office equipment		8,677			8,972
Software		5,374			7,477
Leasehold improvements		26,674			26,102
Machinery and equipment		46,411			45,265
Construction in progress		2,043			1,055
		90,962			90,507
Less: Accumulated depreciation		(78,742	)		(78,175	)
Property and equipment, net	$	12,220		$	12,332

Depreciation expense related to property and equipment for the three and nine months ended March 31, 2022 was $1.4 million and $4.1 million, respectively. Depreciation expense related to property and equipment for the three and nine months ended March 31, 2021 was $1.5 million and $4.7 million, respectively.

The changes in accumulated other comprehensive income are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the U.S. Dollar as their functional currency since the majority of their economic activities are primarily denominated in their applicable local currency. Accordingly, all assets and liabilities related to these operations are translated to the U.S. Dollar at the current exchange rates at the end of each period. Revenues and expenses are translated at average exchange rates in effect during the period.

The components of accumulated other comprehensive income in the equity section of the Company’s condensed consolidated balance sheet are as follows (in thousands):


	March 31, 2022			June 30, 2021
Cumulative foreign currency translation adjustment	$	1,567		$	2,457
Defined benefit pension obligation		(364	)		(364	)
Accumulated other comprehensive income	$	1,203		$	2,093