Note 25 - Leases

12 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Lessee and Lessor, Leases [Text Block]

25.  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 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 were $71 and $75 for the years ended June 30, 2023 and 2022, respectively.

Future minimum rental income in China and Thailand to be received from fiscal year ended June 30, 2024 to fiscal year ended June 30, 2027 on non-cancellable operating leases, and is contractually due as of June 30, 2023, as follows:

2024	$	141
2025		141
2026		46
2027		16
	$	344

Future minimum rental income in China and Thailand to be received from Fiscal 2023 to the fiscal year ended June 30, 2027 on non-cancellable operating leases, and is contractually due as of June 30, 2022, as follows:

2023	$	6
2024	$	27
2025		28
2026		29
2027		10
	$	100

Sales-type leases under which the Company is the lessor arise from the lease of 4 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 4 units of chiller systems are as follows:

Components of Lease Balances	For the Year Ended June 30,
	2023			2022
Assets
Gross financial sales receivable	$	17		$	41
Unearned finance income		(1	)		(3	)
Financed sales receivable	$	16		$	38
Net financed sales receivables due within one year	$	16		$	21
Net financed sales receivables due after one year	$	-		$	17

As of June 30, 2023, the financed sale receivables had a weighted average effective interest rate of 11.16% and weighted average remaining lease term of 0.75 years.

As of June 30, 2022, the financed sale receivables had a weighted average effective interest rate of 11.16% and weighted average remaining lease term of 1.75 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 four years and finance leases for plant and equipment.

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

	For the Year Ended June 30,
	2023			2022
Finance Leases (Plant and Equipment)
Plant and equipment, at cost	$	1,734		$	1,727
Accumulated depreciation		(1,075	)		(1,179	)
Plant and Equipment, Net	$	658		$	548
Current portion of finance leases	$	107		$	118
Net of current portion of finance leases		42			119
Total Finance Lease Liabilities	$	149		$	237
Operating Leases (Corporate Offices, Research and Development Facilities)
Operating lease right-of-use assets	$	2,609		$	3,152
Operating lease right-of-use assets, Net	$	2,609		$	3,152
Current portion of operating leases		1,098			1,218
Net of current portion of operating leases		1,511			1,934
Total Operating Lease Liabilities	$	2,609		$	3,152

	For the Year Ended June 30,
	2023		2022
Lease Cost
Finance lease cost:
Interest on finance lease	$	2	$	29
Amortization of right-of-use assets		43		209
Total finance lease cost		45		238
Operating Lease Costs	$	1,518	$	949

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

	For the Year Ended June 30,
	2023			2022
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases	$	(10	)	$	(21	)
Operating cash flows from operating leases		(1,300	)		(1,151	)
Finance cash from finance leases		-			-
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities		1,297			1,276
Weighted-Average Remaining Lease Term:
Finance leases		1.59			2.02
Operating leases		2.42			2.83
Weighted-Average Discount Rate:
Finance leases		3.22	%		3.26	%
Operating leases		5.68	%		5.53	%

As of June 30, 2023, the maturities of the Company's operating and finance lease liabilities were as follow:

	Operating Lease Liabilities			Finance Lease Liabilities
Fiscal Year
2024		1,321			112
2025		846			33
2026		570			12
Thereafter		64			-
Total future minimum lease payments	$	2,801		$	157
Less: amount representing interest		(192	)		(8	)
Present value of net minimum lease payments	$	2,609		$	149
Presentation on statement of financial position
Current		1,098			107
Non-Current		1,511			42

As of June 30, 2022, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

	Operating Lease Liabilities			Finance Lease Liabilities
Fiscal Year
2023	$	1,357		$	129
2024		1,032			104
2025		554			20
2026		423			-
Thereafter		69			-
Total future minimum lease payments	$	3,435		$	253
Less: amount representing interest		(283	)		(16	)
Present value of net minimum lease payments	$	3,152		$	237
Presentation on statement of financial position
Current		1,218			118
Non-Current		1,934			119