Note 13 - Leases

3 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Lessee, Leases [Text Block]

NOTE 13 - 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, 2022, and 2021, 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)	2022			2021
Operating lease cost	$	863		$	879
Financing lease cost:
Amortization of right of use assets		74			74
Interest on lease liabilities		18			21
Variable lease cost		22			22
Sublease income		(116	)		(94	)
Total lease cost	$	861		$	902

Supplemental Cash Flow Information:
	Three Months Ended
	September 30
(In thousands)	2022		2021
Cash flows from operating leases
Fixed payments - operating cash flows	$	885	$	887
Liability reduction - operating cash flows	$	779	$	744
Cash flows from finance leases
Interest - operating cash flows	$	18	$	21
Repayments of principal portion - financing cash flows	$	66	$	64

Operating Leases:	September 30,			June 30,
	2022			2022
Total operating right-of-use assets	$	7,826		$	8,664
Accrued expenses (Current liabilities)	$	1,187		$	1,274
Long-term operating lease liability		7,381			8,240
Total operating lease liabilities	$	8,568		$	9,514
Weighted Average remaining Lease Term (in years)		2.83			3.05
Weighted Average Discount Rate		4.82	%		4.81	%

Finance Leases:	September 30,			June 30,
	2022			2022
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		30			30
Accumulated depreciation		(719	)		(634	)
Total finance lease assets, net	$	1,344		$	1,429
Accrued expenses (Current liabilities)	$	280		$	275
Long-term finance lease liability		1,174			1,246
Total finance lease liabilities	$	1,454		$	1,521
Weighted Average remaining Lease Term (in years)		4.54			4.80
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases		Net Lease Commitments
2023	$	2,792		$	275		$	377	$	3,444
2024		3,285			337			377		3,999
2025		2,136			362			31		2,529
2026		835			362			-		1,197
2027		215			303			-		518
Thereafter		4			-			-		4
Total lease payments	$	9,267		$	1,639		$	785	$	11,691
Less: Interest		(699	)		(185	)				(884	)
Present Value of Lease Liabilities	$	8,568		$	1,454				$	10,807