Leases
The Company has operating leases for current corporate offices and certain equipment. These leases have remaining terms of approximately one to 6.5 years. As of June 30, 2025, the weighted average remaining lease term and weighted average discount rate for operating leases was 5.91 years and 3.17%, respectively. As of June 30, 2024, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.90 years and 3.46%, respectively.
The components of lease expense for the fiscal years ended June 30, 2025 and 2024, were as follows (in thousands):
| | | | | | | | | | | |
| Years ended June 30, |
| 2025 | | 2024 |
| Operating lease expense | | | |
| Operating lease cost | $ | 1,881 | | | $ | 1,913 | |
| Variable lease cost | 154 | | | 174 | |
| Short-term lease cost | 11 | | | 47 | |
| Total lease expense | $ | 2,046 | | | $ | 2,134 | |
Supplemental cash flow information related to operating leases was as follows (in thousands):
| | | | | | | | | | | |
| June 30, 2025 | | June 30, 2024 |
| Operating cash outflows from operating leases | $ | 2,284 | | | $ | 2,187 | |
| Right-of-use assets obtained in exchange for lease obligations | $ | — | | | $ | 2,475 | |
Maturity of lease liabilities at June 30, 2025 are as follows (in thousands):
| | | | | | | | | |
| Year ended June 30, | | Amount | |
| 2026 | | $ | 2,214 | | |
| 2027 | | 2,195 | | |
| 2028 | | 2,073 | | |
| 2029 | | 1,772 | | |
| 2030 | | 1,817 | | |
| Thereafter | | 2,805 | | |
| Total | | 12,876 | | |
| Less: imputed interest | | (1,198) | | |
| Present value of lease liabilities | | $ | 11,678 | | |
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.