Leases

9 Months Ended

Mar. 31, 2025

Note 14: Leases

Components of lease expense were as follows for the three and nine months ended March 31, 2025, and 2024:

Schedule of Components of Lease Expense

	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
Lease Cost ($ in thousands)	March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024
Finance Lease Cost:
Amortization of Right of Use Assets		364		46		1,103		139
Interest on lease liabilities		116		1		389		4
Capitalized Operating Lease Cost		1,104		915		3,228		2,768
Short – Term Lease Cost		24		18		55		55
Variable Lease Cost		297		336		800		1,927
Total Lease Cost		1,905		1,316		5,575		4,893

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		-		1		-		4
Operating cash flows from Capitalized Operating leases		717		1,031		2,074		3,077
Financing cash flows from finance leases		718		50		2,138		149

	March 31, 2025			June 30, 2024
Right of use assets obtained in exchange for new finance lease liabilities		5,738			7,854
Right of use assets obtained in exchange for new Capitalized Operating lease liabilities		-			21,900
Net ROU remeasurement		-			(9	)

Weighted average remaining lease term - finance leases (in Years)		1.83			2.86
Weighted average remaining lease term - Capitalized Operating leases (in Years)		5.76			6.50
Weighted average discount rate - finance leases		7.09	%		3.33	%
Weighted average discount rate - Capitalized Operating leases		5.68	%		5.68	%

Maturities of operating and finance lease liabilities as of March 31, 2025, are as follows:

*($ in thousands)*	Operating Leases		Finance Leases
Remaining in fiscal ending June 30, 2025		1,040		835
2026		4,205		3,340
2027		4,154		1,987
2028		4,232		-
2029		4,352		-
Thereafter		7,173		-
Total Lease Payments		25,156		6,162
Less Imputed Interest		(3,768)		(424)
Present Value Obligations		21,388		5,738
Short-term Liability		3,144		3,003
Long-term Liability		18,244		2,735

Finance leases are recorded in Property and Equipment, net on the condensed consolidated balance sheet.

($ in thousands)

ALLIANCE ENTERTAINMENT HOLDING CORP 10-Q