PRO DEX INC Leases Disclosure
9. LEASES
Our operating lease ROU asset and long-term liability are presented separately on our consolidated balance sheet. The current portion of our operating lease liability, exclusive of imputed interest, as of June 30, 2025, in the amount of $498,000, is presented within accrued expenses on the consolidated balance sheet. As of June 30, 2025, the maturity of our lease liability is as follows:
| Operating Lease | ||||||
| Fiscal Year: | ||||||
| 2026 | $ | 551 | ||||
| 2027 | 567 | |||||
| 2028 | 143 | |||||
| Total lease payments | 1,261 | |||||
| Less imputed interest: | (78 | ) | ||||
| Total | $ | 1,183 | ||||
As of June 30, 2025 and 2024, our operating lease has a remaining lease term of 2.25 years and 3.25 years, respectively, and an imputed interest rate of 5.3%. Our lease agreement does not provide an implicit rate and, as a result, we used our estimated incremental borrowing rate at the time we adopted ASC 842 to determine the present value of future lease payments. Cash paid for amounts included in the lease liability for the fiscal years ended June 30, 2025 and 2024 was $535,000 and $519,000, respectively.
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.