Note 15 - Leases

3 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Leases [Text Block]

NOTE 15 - LEASES

The Company leases certain manufacturing facilities along with a small office space, several forklifts, several small tooling items and various items of office equipment. The Company also acquired buildings, machinery and forklift leases with the acquisition of JSI, as well as one sublease. All but two of the Company’s leases are operating leases. Leases have a remaining term of one to seven years some of which have an option to renew. The Company does not assume renewals in determining the lease term unless the renewals are deemed reasonably certain. The lease agreements do not contain any material residual guarantees or material variable lease payments.

The Company has periodically entered into short-term operating leases with an initial term of twelve months or less. The Company elected not to record these leases on the balance sheet. For the three months ended September 30, 2021 and 2020, the rent expense for these leases is immaterial.

The Company has certain leases that contain lease and non-lease components and has elected to utilize the practical expedient to account for these components together as a single lease component.

Lease expense is recognized on a straight-line basis over the lease term. The Company used its incremental borrowing rate when determining the present value of lease payments.

	Three Months Ended
	September 30
(In thousands)	2021			2020
Operating lease cost	$	879		$	573
Financing lease cost:
Amortization of right of use assets		74			73
Interest on lease liabilities		21			24
Variable lease cost		22			1
Sublease income		(94	)		-
Total lease cost	$	902		$	671

	Three Months Ended
	September 30
(In thousands)	2021		2020
Cash flows from operating leases
Fixed payments - operating cash flows	$	887	$	570
Liability reduction - operating cash flows	$	744	$	461
Cash flows from finance leases
Interest - operating cash flows	$	21	$	24
Repayments of principal portion - financing cash flows	$	64	$	58

Operating Leases:

	September 30,			June 30,
	2021			2021
Total operating right-of-use assets	$	10,808		$	11,579
Accrued expenses (Current liabilities)	$	1,425		$	1,424
Long-term operating lease liability		10,092			10,890
Total operating lease liabilities	$	11,517		$	12,314
Weighted Average remaining Lease Term (in years)		3.70			3.93
Weighted Average Discount Rate		4.81	%		4.81	%

Finance Leases:

	September 30,			June 30,
	2021			2021
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		30			30
Accumulated depreciation		(412	)		(339	)
Total finance lease assets, net	$	1,651		$	1,724
Accrued expenses (Current liabilities)	$	266		$	263
Long-term finance lease liability		1,454			1,521
Total finance lease liabilities	$	1,720		$	1,784
Weighted Average remaining Lease Term (in years)		5.53			5.78
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases			Net Lease Commitments
2022	$	2,808		$	278		$	(283	)	$	2,803
2023		3,550			342			(377	)		3,515
2024		3,247			337			(377	)		3,207
2025		2,096			362			(31	)		2,427
2026		795			362			-			1,157
Thereafter		212			304			-			516
Total lease payments	$	12,708		$	1,985		$	(1,068	)	$	13,625
Less: Interest		(1,191	)		(265	)					(1,456	)
Present Value of Lease Liabilities	$	11,517		$	1,720					$	12,169