v3.26.1
Note 6 - Leases
12 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Lessee And Lessor Operating Leases [Text Block]

6. Leases

Company as Lessee

  
 

As of June 30, 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.

 

The following table sets forth the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2026. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.

 

  

Maturity of

 
  

Operating Lease

 
  

Liabilities

 

Fiscal years ending June 30,

 

(in thousands)

 

2027

 $4,352 

2028

  3,243 

2029

  2,408 

2030

  2,001 

2031

  922 

Thereafter

  167 

Total lease payments

 $13,093 

Less: amounts representing interest

  1,004 

Present value of lease liabilities

 $12,089 

Less: current portion

  3,899 

Long-term portion

 $8,190 

 

 

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

 

  

Fiscal year ended

  

Fiscal year ended

 
  

June 30,

  

June 30,

 

Operating lease cost

 

2026

  

2025

 

Operating lease cost (1)

 $4,542  $3,967 

Variable lease cost (2)

  5,542   5,016 

Total lease cost

 $10,084  $8,983 

 

 

(1)

Expenses are classified within selling, general and administrative expenses in the Company’s consolidated statements of operations for the fiscal years ended June 30, 2026 and 2025.

   
 

(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 consolidated statements of operations for the fiscal years ended June 30, 2026 and 2025.

 

 

The table below presents lease-related terms and discount rates as of June 30, 2026 and 2025:

 

  

June 30, 2026

  

June 30, 2025

 

Weighted average remaining lease terms

        

Operating leases

 

3.65 years

  

3.74 years

 

Weighted average discount rate

        

Operating leases

  4.34%  4.10%

 

 

The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities for the fiscal years ended June 30, 2026 and 2025 (in thousands):

 

  

Fiscal year ended

  

Fiscal year ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

 

Cash paid for amounts included in the measurement of lease liabilities:

 $4,542  $3,967 

Operating lease right-of-use assets obtained in exchange for operating lease liabilities:

 $3,854  $6,197 

 

 

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 related to 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 in

 
  

Lease Payments

  

of Unearned

  

Sales Type

 

Fiscal years ending June 30,

 

to be Received

  

Income

  

Leases

 
             

2027

 $5,129  $3,255  $1,874 

2028

  3,847   2,389   1,458 

2029

  2,894   1,616   1,278 

2030

  1,963   1,023   940 

2031

  1,195   578   617 

Thereafter

  1,162   502   660 
          $6,827* 

 

 

* Excludes non-guaranteed residual values of $2.6 million.

  
 

The total net investments in sales type leases, including stated residual values, as of June 30, 2026 and June 30, 2025 was $9.4 million and $9.8 million, respectively. The current portion of $1.9 million and $1.8 million is included in other current assets in the consolidated balance sheets as of June 30, 2026 and June 30, 2025, respectively, and the long term portion of $7.5 million and $8.0 million is included in other assets in the consolidated balance sheets as of  June 30, 2026 and June 30, 2025, respectively.