Leases

12 Months Ended

Jun. 30, 2026

Note 14: Leases

The Company leases offices, warehouses, computer equipment, and vehicles. Certain leases include options to renew, which may extend the lease term from 1 to 13 years. The decision to exercise renewal options is at the Company’s sole discretion and is included in the lease term when it is reasonably certain that the option will be exercised.

Leasehold improvements and assets are depreciated over the shorter of their useful life or the lease term unless the lease includes a purchase option or title transfer that is reasonably certain to occur.

Our lease agreements do not include material residual value guarantees or restrictive covenants. Lease payments generally include fixed payments, with some leases requiring variable payments. These variable payments typically cover the Company’s proportionate share of property taxes, insurance, and common area maintenance and are recognized as incurred rather than being included in the lease liability.

On the consolidated balance sheet, operating leases are reflected in “Operating Lease Right-of-Use Assets, Net,” “Current Portion of Operating Lease Obligations,” and “Operating Lease Obligations, Non-Current.” Finance leases are included under “Property & Equipment, Net,” “Current Portion of Finance Lease Obligations,” and “Finance Lease Obligations, Non-Current.

The extended lease term will result in continued amortization of the ROU asset over the remaining lease period, with the associated lease liabilities being remeasured in accordance with ASC 842, Leases. The Company will continue to amortize the ROU asset in line with the revised lease terms and conditions, reflecting the financial impact of the extension in future periods.

Components of lease expense were as follows for the years ended June 30, 2026, and 2025:

Schedule of Components of Lease Expense

	Year Ended			Year Ended
	June 30, 2026			June 30, 2025
Lease Cost ($ in thousands)
Finance Lease Cost:
Amortization of Right of Use Assets	$	1,488		$	1,581
Interest on lease liabilities		271			492
Capitalized Operating Lease Cost		4,265			4,292
Short - Term Lease Cost		78			79
Variable Lease Cost		1,113			1,117
Total Lease Cost	$	7,215		$	7,561

Other Information
Cash paid for amounts included in the measurement of lease liabilities:		-			-
Operating cash flows from finance leases	$	-		$	-
Operating cash flows from Capitalized operating leases	$	4,226		$	3,112
Financing cash flows from finance leases	$	3,069		$	2,870

Right of use assets obtained in exchange for new finance lease liabilities		-			-
Right of use assets obtained in exchange for new operating lease liabilities	$	-		$	-
Net Right of use asset remeasurement		-			-

Weighted average remaining lease term - finance leases (in Years)		0.67			1.58
Weighted average remaining lease term - operating leases (in Years)		4.56			5.52
Weighted average discount rate - finance leases		6.56	%		7.08	%
Weighted average discount rate - operating leases		5.71	%		5.69	%

Maturities of operating and finance lease liabilities as of June 30, 2026 are as follows:

($ in thousands)	Operating Leases		Finance Leases
2027		4,160		1,987
2028		4,249		-
2029		4,362		-
2030		4,493		-
2031		2,681		-
Total Lease Payments		19,945		1,987
Less Imputed Interest		2,399		50
Present Value Obligation		17,546		1,937
Short-term Liability		3,329		1,937
Total	$	14,217	$	-

Finance ROU leases are recorded in Property and Equipment, net on the consolidated balance sheets.

	June 30, 2026			June 30, 2025
Cost		13,841			13,831
Additions		-			10
Accumulated Depreciation		(4,891	)		(3,403	)
Net Book Value		8,950			10,438