Note 15 - Leases

6 Months Ended

Dec. 31, 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 and six months ended December 31, 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					Six Months Ended
	December 31					December 31
(In thousands)	2021			2020		2021			2020
Operating lease cost	$	870		$	565	$	1,749		$	1,138
Financing lease cost:
Amortization of right of use assets		74			72		148			145
Interest on lease liabilities		20			23		41			47
Variable lease cost		22			1		44			2
Sublease income		(94	)		-		(188	)		-
Total lease cost	$	892		$	661	$	1,794		$	1,332

	Six Months Ended
	December 31
(In thousands)	2021		2020
Cash flows from operating leases
Fixed payments - operating cash flows	$	1,778	$	1,141
Liability reduction - operating cash flows	$	1,502	$	929
Cash flows from finance leases
Interest - operating cash flows	$	42	$	47
Repayments of principal portion - financing cash flows	$	129	$	118

Operating Leases:

	December 31,			June 30,
	2021			2021
Total operating right-of-use assets	$	10,185		$	11,579
Accrued expenses (Current liabilities)	$	1,446		$	1,424
Long-term operating lease liability		9,436			10,890
Total operating lease liabilities	$	10,882		$	12,314
Weighted Average remaining Lease Term (in years)		3.49			3.93
Weighted Average Discount Rate		4.81	%		4.81	%

Finance Leases:

	December 31,			June 30,
	2021			2021
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		30			30
Accumulated depreciation		(487	)		(339	)
Total finance lease assets, net	$	1,576		$	1,724
Accrued expenses (Current liabilities)	$	269		$	263
Long-term finance lease liability		1,386			1,521
Total finance lease liabilities	$	1,655		$	1,784
Weighted Average remaining Lease Term (in years)		5.28			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	$	1,920		$	191		$	(189	)	$	1,922
2023		3,577			342			(377	)		3,542
2024		3,280			337			(377	)		3,240
2025		2,130			362			(31	)		2,461
2026		828			362			-			1,190
Thereafter		216			304			-			520
Total lease payments	$	11,951		$	1,898		$	(974	)	$	12,875
Less: Interest		(1,069	)		(243	)					(1,312	)
Present Value of Lease Liabilities	$	10,882		$	1,655					$	11,563