v3.26.1
Leases
12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
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 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 United States and Australia 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. However, certain European production facility leases acquired through our purchase of Saxdor are set to expire within the next 1-2 years and the Company has determined that extension options on those facilities are reasonably certain to be exercised for one extension period of 1-3 years, depending on the facility. Accordingly, the lease liabilities related to those production facilities include future lease payments related to options to extend the current lease agreements.
Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows:
As of June 30,
Classification20262025
Assets
Right-of-use assets (1)
Other assets$11,696 $6,551 
Liabilities
Current operating lease liabilitiesAccrued expenses$4,899 $2,408 
Long-term operating lease liabilitiesOther liabilities6,852 4,915 
Total lease liabilities$11,751 $7,323 
(1) Includes $7.8 million of right-of-use assets obtained in exchange for new operating lease obligations related to the acquisition of Saxdor.
Fiscal Year Ended June 30,
Classification202620252024
Operating lease costs (1)
Cost of sales$3,206 $2,394 $2,537 
Selling and marketing, and general and administrative934 787 838 
Sublease incomeOther income, net(32)(38)(38)
Cash paid for amounts included in the measurement of operating lease liabilitiesCash flows from operating activities2,706 2,667 2,661 
(1) Includes short-term leases, which are insignificant, and are not included in the lease liability.
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 for the fiscal year ended June 30, 2026 and 2025 was 2.54 and 3.02 years, respectively. As of June 30, 2026 and 2025, the weighted average discount rate determined based on the Company's incremental borrowing rate is 7.41% and 4.64%, respectively.
Future annual minimum lease payments for the following fiscal years as of June 30, 2026 are as follows:
Amount
2027$5,615 
20284,416 
20292,351 
2030526 
203190 
2032 and thereafter— 
Total12,998 
Less imputed interest(1,247)
Present value of lease liabilities$11,751