Note 4. Leases

 

The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars and copy machines that are considered operating leases. Some of the Company’s leases are non-cancellable operating lease agreements with various expiration dates through August 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised, and therefore are not factored into the determination of lease payments.

 

 

The following table provides information related to the Company’s operating leases (in thousands):

 

 

 

Years Ended June 30,

 

 

 

2025

 

 

2024

 

Operating lease costs (1)

 

$

8,980

 

 

$

9,146

 

Short-term operating lease costs

 

 

286

 

 

 

305

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

8,011

 

 

 

9,013

 

 

(1)
Excludes expenses related to short-term lease operating costs.

 

Operating lease right-of-use assets and operating lease obligations are represented in the table below (in thousands):

 

 

 

June 30,
2025

 

 

June 30,
2024

 

Beginning balance operating lease right-of-use assets

 

$

33,773

 

 

$

25,853

 

Lease assets added

 

 

4,624

 

 

 

14,389

 

Amortization for the year

 

 

(5,282

)

 

 

(6,469

)

Ending balance operating lease right-of-use assets

 

$

33,115

 

 

$

33,773

 

 

 

 

 

 

 

 

Beginning balance operating lease obligations

 

$

38,591

 

 

$

27,753

 

Lease liabilities added

 

 

5,726

 

 

 

16,775

 

Repayment and interest accretion

 

 

(4,460

)

 

 

(5,937

)

Ending balance operating lease obligations

 

$

39,857

 

 

$

38,591

 

 

 

 

 

 

 

 

Current portion of operating lease obligations

 

$

7,375

 

 

$

6,218

 

Noncurrent portion of operating lease obligations

 

$

32,482

 

 

$

32,373

 

 

The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows:

 

 

 

June 30,
2025

 

 

June 30,
2024

 

Weighted average remaining lease term (in years)

 

 

7.8

 

 

 

8.2

 

Weighted average discount rate

 

 

10.4

%

 

 

10.4

%

 

Maturities of operating lease liabilities as of June 30, 2025, are presented in the table below (in thousands):

 

Year Ending June 30,

 

Amount

 

2026

 

$

7,201

 

2027

 

 

8,257

 

2028

 

 

7,135

 

2029

 

 

5,515

 

2030

 

 

4,789

 

Thereafter

 

 

24,948

 

Total operating lease payments

 

 

57,845

 

Less: imputed interest

 

 

(17,988

)

Present value of operating lease liabilities

 

$

39,857

 

 

 

Historical Timeline

Fiscal YearFiled
2025Aug 28, 2025Showing above
2024Sep 19, 2024
2023Sep 7, 2023
2022Aug 17, 2022
2021Aug 17, 2021
2020Aug 25, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.