Note 5 - Leases

3 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Operating Leases [Text Block]

NOTE 5. LEASES

The Company has lease agreements for office equipment that expire in fiscal year 2026. Lease expense totaled $23,000 for the three months ended September 30, 2022, and $39,000 for the three months ended September 30, 2021.

The following table presents the components of lease expense included in general and administrative expense on the Consolidated Statements of Operations.

	Three Months Ended
	September 30,
(dollars in thousands)	2022		2021
Finance lease cost:
Amortization of right-of-use assets	$	7	$	-
Interest on lease liabilities		1		-
Total finance lease cost		8		-
Operating lease cost		-		13
Short-term lease cost		15		26
Total lease cost	$	23	$	39

Supplemental information related to the Company's leases follows.

	Three Months Ended
	September 30,
(dollars in thousands)	2022		2021
Operating cash flows from operating leases included in lease liabilities	$	-	$	13
Lease liabilities obtained from new ROU assets - operating	$	-	$	-
Operating cash flows from financing leases included in lease liabilities	$	1	$	-
Financing cash flows from financing leases included in lease liabilities	$	7	$	-
Lease liabilities obtained from new ROU assets - financing	$	-	$	-

Additional qualitative information concerning the Company’s leases follows.

	September 30, 2022			June 30, 2022
Weighted-average remaining lease term - financing leases (years)		3.00			3.25
Weighted-average discount rate - financing leases		4.75	%		4.75	%

The following table presents the maturities of lease liabilities as of September 30, 2022.

(dollars in thousands)
Fiscal Year	Finance Leases
2023 (excluding the three months ended September 30, 2022)	$	23
2024		31
2025		31
2026		8
2027		-
Total lease payments		93
Less imputed interest		(6	)
Total	$	87

The Company is the lessor of certain areas of its owned office building under operating leases expiring in various months through fiscal year 2025. At the commencement of an operating lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Lease income included in other income on the Consolidated Statements of Operations was $34,000 and $26,000, for the three months ended September 30, 2022, and 2021, respectively. The cost of obtaining lessor contracts, which is included in other assets on the Consolidated Balance Sheets, was $8,000 and $9,000 at September 30, 2022, and June 30, 2022, respectively.

The following is a summary analysis of annual undiscounted cash flows to be received on leases as of September 30, 2022.

(dollars in thousands)
Fiscal Year	Operating Leases
2023 (excluding the three months ended September 30, 2022)	$	53
2024		42
2025		36
2026		-
2027		-
Thereafter		-
Total lease payments	$	131

The Company may terminate the building leases with one hundred eighty days written notice if it sells the property. If the Company terminates the lease, the Company will pay the tenant a termination fee of the lesser of six months of the base monthly rent or the base monthly rent times the number of months remaining in the initial term.