OPERATING AND FINANCING LEASES

9 Months Ended

Mar. 31, 2026

NOTE 4 – OPERATING AND FINANCING LEASES

The Company accounts for its various operating leases in accordance with Accounting Standards Codification (ASC) 842 – “Leases”, as updated by ASU 2016-02. At the inception of a lease, the Company recognizes right-of-use lease assets and related lease liabilities measured at present value of future lease payments on its balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. The Company’s most common initial term varies in length from 2 to 19 years. Including renewal options negotiated with the landlord, we have a total span of 2 to 16 years at the facilities we lease. The Company reviewed its contracts with vendors and customers, determining that its right-of-use lease assets consisted of only office space operating leases. In determining the right-of-use lease assets and liabilities, the Company did recognize lease extension options which the Company feels would be reasonably exercised. Our incremental borrowing rate (“IBR”) used to discount the stream of operating lease payments is closely related to the interest rates available to the Company.

A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of March 31, 2026 is as follows:


12 Months Ending March 31,	Operating Lease Payments			Financing Lease Payments
2027	$	6,204		$	224
2028		6,057			—
2029		5,791			—
2030		5,708			—
2031		5,259			—
Thereafter		23,082			—
Present value discount		(13,494	)		—
Total lease liability	$	38,607		$	224

Weighted Average Remaining Lease Term


	For the nine months ended March 31,
	2026			2025
Operating leases - years		9.6			10.4
Finance lease - years		0.9			1.9
Weighted Average Discount Rate
Operating leases		6.6	%		6.5	%
Finance lease		3.6	%		3.6	%

The components of lease expense were as follows:

Components of lease expense
	For the nine months ended March 31,
	2026		2025
Operating lease cost	$	4,770	$	4,608
Finance lease cost:
Depreciation of leased equipment	$	169	$	162
Interest on lease liabilities		—		12
Total finance lease cost	$	185	$	174

Supplemental cash flow information related to leases was as follows:

Supplemental cash flow information related to leases
	For the nine months ended March 31,
Cash paid for amounts included in the measurement of lease liabilities:	2026		2025
Operating cash flows from operating leases	$	4,275	$	4,313
Financing cash flows from financing leases	$	183	$	183
Right-of-use and equipment assets obtained in exchange for lease obligations:
Operating leases	$	2,711	$	2,320