Note 13 - Leases

6 Months Ended

Dec. 31, 2023

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 and six months ended December 31, 2023, and 2022, 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)	2023			2022			2023			2022
Operating lease cost	$	993		$	885		$	1,900		$	1,776
Financing lease cost:
Amortization of right of use assets		73			74			146			148
Interest on lease liabilities		14			17			28			35
Variable lease cost		22			22			44			44
Sublease income		(116	)		(116	)		(232	)		(232	)
Total lease cost	$	986		$	882		$	1,886		$	1,771

Supplemental Cash Flow Information:	Six Months Ended
	December 31
(In thousands)	2023		2022
Cash flows from operating leases
Fixed payments - operating cash flows	$	1,778	$	1,832
Liability reduction - operating cash flows	$	1,537	$	1,618
Cash flows from finance leases
Interest - operating cash flows	$	28	$	35
Repayments of principal portion - financing cash flows	$	156	$	123

Operating Leases:	December 31,			June 30,
	2023			2023
Total operating right-of-use assets	$	9,931		$	8,921
Accrued expenses (Current liabilities)	$	3,752		$	3,566
Long-term operating lease liability		6,851			5,954
Total operating lease liabilities	$	10,603		$	9,520
Weighted Average remaining Lease Term (in years)		3.89			3.31
Weighted Average Discount Rate		5.33	%		5.44	%

Finance Leases:	December 31,			June 30,
	2023			2023
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		41			34
Accumulated depreciation		(1,086	)		(929	)
Total finance lease assets, net	$	1,060		$	1,138
Accrued expenses (Current liabilities)	$	307		$	284
Long-term finance lease liability		800			960
Total finance lease liabilities	$	1,107		$	1,244
Weighted Average remaining Lease Term (in years)		3.33			3.83
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases			Net Lease Commitments
2024	$	3,752		$	307		$	(189	)	$	3,870
2025		3,026			362			(31	)		3,357
2026		1,929			362			-			2,291
2027		1,463			195			-			1,658
2028		649			-			-			649
Thereafter		1,131			-			-			1,131
Total lease payments	$	11,950		$	1,226		$	(220	)	$	12,956
Less: Interest		(1,347	)		(119	)					(1,466	)
Present Value of Lease Liabilities	$	10,603		$	1,107					$	11,490