Leases

6 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

6. Leases

The Company has entered into various operating lease agreements for certain of its offices, manufacturing facilities and equipment, and finance lease agreements for certain equipment. These leases have original lease periods expiring between fiscal years 2023 and 2027. Most leases include one or more options to renew, and the exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expenses are as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2022		2021		2022		2021		Statement of Operations Classification
	(In thousands)
Lease cost:
Operating lease cost	$	359	$	330	$	716	$	626	Operating expenses
Short-term lease cost		19		26		44		65	Operating expenses
Finance lease cost:
Amortization of leased assets		19		19		37		37	Cost of sales
Interest on lease liabilities		2		4		5		8	Other (expense), net
Total net lease cost	$	399	$	379	$	802	$	736

Supplemental balance sheet information related to leases is as follows:

	December 31,		June 30,		Balance Sheet Classification
	2022		2022
	(In thousands)
Assets:
Operating lease assets	$	2,675	$	3,271	Operating lease right-of-use asset
Finance lease assets		188		256	Property and equipment, net
Total leased assets	$	2,863	$	3,527
Liabilities:
Current:
Operating leases	$	1,245	$	1,227	Other current liabilities
Finance leases		90		96	Current portion of debt
Non-current
Operating leases		1,471		2,090	Other non-current liabilities
Finance leases		39		84	Debt, net of current portion
Total lease liabilities	$	2,845	$	3,497

Remaining lease term and discount rate used are as follows:

	December 31,			June 30,
	2022			2022
Weighted-Average Remaining Lease Term (years)
Operating lease assets		2.16			2.63
Finance lease assets		1.37			1.73
Weighted-Average Discount Rate
Operating lease assets		7.60	%		7.48	%
Finance lease assets		6.54	%		6.43	%

Supplemental cash flow information related to lease is as follows:

	Six Months Ended
	December 31,
	2022		2021
	(In thousands)
Cash flow classification of lease payments:
Operating cash flows - operating leases	$	716	$	585
Operating cash flows - finance leases	$	5	$	8
Financing cash flows - finance leases	$	52	$	50

As of December 31, 2022, the maturities of the Company’s future minimum lease payments were as follows:

	Operating		Finance
	(In thousands)
2023 (remaining 6 months)	$	720	$	48
2024		1,379		87
2025		749		—
2026		90		—
2027		46		—
Total lease payments		2,984		135
Less: Imputed interest		(268)		(6)
Lease liabilities	$	2,716	$	129