13.LEASES

 

As of June 30, 2025 and 2024, the Company had one corporate office lease with a remaining lease term of 1.6 years as of June 30, 2025. During the year ended June 30, 2025 and 2024, operating cash flows included cash payments of $96 and $71, respectively related to the measurement of lease liabilities.

 

The Company incurred lease costs as follows:

 

          
   For the year ended June 30, 
   2025   2024 
Fixed rent expense  $94   $90 
Variable rent expense   13    14 
Short term lease cost   10    9 
Sublease income   (41)   (32)
Net lease cost – other operating expense  $76   $81 

 

The maturity of lease liabilities is as follows at June 30, 2025:

 

   Fiscal Year Lease Maturities 
2026  $98 
2027   50 
Total lease payments   148 
Less amount of payments representing interest   (17)
Present value of lease payments   131 
Less current portion of operating lease liability   (98)
Noncurrent operating lease liability  $33 

Historical Timeline

Fiscal YearFiled
2025Sep 11, 2025Showing above
2024Sep 23, 2024
2023Oct 6, 2023
2022Sep 6, 2022
2021Sep 8, 2021
2020Sep 16, 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.