Note 7 - Leases

9 Months Ended

Mar. 31, 2026

Lessee And Lessor Operating Leases [Text Block]

Note (7) – Leases:

Company as Lessee

As of March 31, 2026, the Company had 34 facilities, consisting of warehouse facilities and administrative offices, financed under operating leases with lease term expirations between 2026 and 2031. Operating lease cost consists of monthly rental payments under the terms of the Company’s lease agreements recognized on a straight-line basis. Short-term lease costs were not material during the nine or three months ended March 31, 2026 or 2025.

The following table provides details of the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of March 31, 2026. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.

	Total Operating
	Lease Obligations
Fiscal years ending June 30,	(in thousands)
2026 (remainder of)	$	1,253
2027		4,267
2028		3,227
2029		2,309
2030		2,001
Thereafter		1,088
Total minimum lease payments		14,145
Less: amounts representing interest		1,140
Present value of minimum lease payments		13,005
Less: current portion		3,925
Long-term portion	$	9,080

The table below presents additional information related to the Company’s operating leases (in thousands):

	Nine months ended				Three months ended
	March 31,				March 31,
	2026		2025		2026		2025
Operating lease cost
Operating lease cost (1)	$	3,471	$	2,914	$	1,162	$	993
Variable lease cost (2)		4,405		3,565		1,540		1,101
Total lease cost	$	7,876	$	6,479	$	2,702	$	2,094

(1)

Expenses are classified as selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

(2)

Certain of the Company’s subsidiaries lease space at locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as part of a revenue sharing arrangement. These expenses are classified within cost of sales in the Company’s condensed consolidated statements of operations.

The table below presents lease-related terms and discount rates as of March 31, 2026:

	March 31,
	2026
Weighted average remaining lease terms
Operating leases (years)		3.81 years
Weighted average discount rate
Operating leases		4.33	%

The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities for the nine months ended March 31, 2026 and 2025 (in thousands):

	Nine months ended
	March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:	$	3,471	$	2,914
Operating lease right-of-use assets obtained in exchange for operating lease liabilities:	$	3,696	$	2,835

Company as Lessor

The Company derives a portion of its revenue from equipment leasing arrangements. Such arrangements provide for monthly payments covering the equipment provided, maintenance and interest. These arrangements meet the criteria to be accounted for as sales type leases. Accordingly, revenue from the provision of the equipment is recognized upon delivery of the equipment and its acceptance by the customer. Upon the recognition of such revenue, an asset is established for the investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term.

The future minimum lease payments receivable for sales type leases are as follows (in thousands):

	Total Minimum		Amortization		Net Investment
	Lease Payments		of Unearned		in Sales Type
Fiscal years ending June 30,	Receivable		Income		Leases
2026 (remainder of)	$	1,457	$	910	$	547
2027		4,858		3,129		1,729
2028		3,718		2,251		1,467
2029		2,723		1,479		1,244
2030		1,787		916		871
Thereafter		2,103		975		1,128
					$	6,986	*

* Excludes residual values of $2.7 million.

The total net investments in sales type leases, including stated residual values, as of March 31, 2026 and June 30, 2025 was $9.7 million and $9.8 million, respectively. The current portion of $1.8 million is included in other current assets in the consolidated balance sheets as of March 31, 2026 and June 30, 2025, and the long term portion of $7.9 million and $8.0 million is included in other assets in the consolidated balance sheets as of March 31, 2026 and June 30, 2025, respectively.