The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. Leases with an initial term of 12 months or less are not recorded on the unaudited interim condensed consolidated balance sheets. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised.

Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows:


Classification		As of December 31, 2022		As of June 30, 2022
Assets
Right-of-use assets	Other assets	$	9,662	$	10,659

Liabilities
Current operating lease liabilities	Accrued expenses	$	2,201	$	2,121
Long-term operating lease liabilities	Other liabilities	8,937		10,062
Total lease liabilities		$	11,138	$	12,183


Classification		Three Months Ended December 31, 2022		Three Months Ended December 31, 2021		Six Months Ended December 31, 2022		Six Months Ended December 31, 2021
Operating lease costs (1)	Cost of sales	$	646	$	621	$	1,313	$	1,263
	Selling and marketing, and general and administrative	237		215		456		431

Sublease income	Other expense (income), net	9		9		19		19

Cash paid for amounts included in the measurement of operating lease liabilities	Cash flows from operating activities	622		631		1,245		1,259

The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase.

The weighted-average remaining lease term as of December 31, 2022 and 2021 was 5.08 years and 5.97 years, respectively. As of December 31, 2022 and 2021, the weighted-average discount rate determined based on the Company's incremental borrowing rate is 3.64% and 3.62%, respectively.

Future annual minimum lease payments for the following fiscal years as of December 31, 2022 are as follows:


	Amount
Remainder of 2023	$	1,271
2024	2,576
2025	2,307
2026	2,255
2027	2,255
2028 and thereafter	1,504
Total	12,168
Less: imputed interest	(1,030)
Present value of lease liabilities	$	11,138