J. Commitments

We lease a total of approximately 162,000 square feet at our manufacturing facility in Vista, California from an unaffiliated third party under a non-cancelable operating lease. On July 18, 2023, we entered into a Fourth Amendment to the lease of our Vista, California manufacturing facility. The Fourth Amendment extends the term of the lease by an additional ten years and five months commencing April 1, 2024 and includes an option to extend the lease through August 31, 2039. We reevaluated our leased property in Vista as of June 30, 2026 and determined that it was no longer reasonably certain that we would exercise an extension option that was previously recorded at the time of the Fourth Amendment to the Lease. As a result, our lease liability and right-of-use asset as of  June 30, 2026 both decreased by $14.1 million due to this remeasurement.

NAIE leases facility space in Manno, Switzerland from two unaffiliated third parties. The leased spaces total approximately 116,000 square feet. NAIE primarily use the facilities for manufacturing, packaging, warehousing and distributing nutritional supplement products for the European and Asian marketplaces. On May 4, 2022, NAIE further extended the lease on its main manufacturing facility for a new term of ten years effective January 1, 2023 with a new expiration date of December 31, 2032, with an option to extend one year.

On November 5, 2018, NAIE entered into a lease with Sofinol SA for approximately 2,870 square meters of commercial warehouse space in a building located on the property adjacent to the leasehold for the primary existing NAIE facility in Manno, Switzerland. NAIE uses the space primarily for raw material storage. The lease was for an initial five-year term commencing on January 1, 2019 and NAIE can terminate the lease with 12 months advance notice given on June 30th or December 31st each year of the initial term. At the end of the initial term the lease transfers to an indefinite tenancy at the same rental rate terminable by NAIE or the landlord upon 12 months' advance notice. The initial term of this lease ended on December 31, 2024. On June 9, 2026, NAIE provided notification of terminating this lease thus ending the lease on December 31, 2026.

On  January 22, 2024, NAIE entered into a lease for an apartment in Lugano, Switzerland with an original lease term of 27 months beginning April 1, 2024 and ending on June 30, 2026. On  June 2, 2026, NAIE extended the lease term six months until December 31, 2026.

Minimum rental commitments (exclusive of property tax, insurance and maintenance) under all non-cancelable operating leases with initial or remaining lease terms in excess of one year, including the lease agreements referred to above, are set forth below as of June 30, 2026 (in thousands): 

Rental expense totaled $5.7 million for the fiscal year ended June 30, 2026 and $5.5 million for the fiscal year ended June 30, 2025.