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Leases
 9 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases LEASES
The majority of the Company’s leases are operating leases related to office space for which the Company recognizes lease expense on a straight-line basis over the respective lease term. The Company leases office facilities in the United States in San Diego, California; Centennial, Colorado; Overland Park, Kansas; Oakland, California; Indianapolis, Indiana; and Monaca, Pennsylvania. SelectRx leases the Monaca facility from an Executive Vice President of SelectRx. The Company expects to incur $3.6 million in total rental payments over the initial ten-year term plus an additional five-year extension option that it is reasonably certain to exercise. The Company's operating leases have remaining lease terms from less than one year up to twelve years.

During the nine months ended March 31, 2024, the Company entered into a lease amendment for the Overland Park, Kansas office which extended the lease term for a portion of its office facilities resulting in additional right-of-use assets obtained in exchange for new lease liabilities of $0.6 million. In addition, as part of the amendment, the Company leased additional office facilities with an expected commencement date on or before June 1, 2024, which will result in additional right-of-use assets in exchange for new lease liabilities of $4.5 million, and executed the early termination option for a portion of its office facilities effective on the commencement date of the additional office space, resulting in remeasurement of the operating lease liability and accelerated amortization of the right-of-use asset over the shortened remaining term of the lease.

During the nine months ended March 31, 2023, operating leases commenced in San Diego, California and Indianapolis, Indiana, resulting in new right-of-use assets obtained in exchange for new lease liabilities of $1.6 million. In addition, the Company exercised an early termination option for a portion of its office facilities in Overland Park, Kansas effective July 31, 2023, which resulted in an early termination penalty of $0.9 million, which was recorded as part of the remeasurement of the operating lease liability and resulted in accelerated amortization of the right-of-use asset over the shortened remaining term of the lease.

Lease Costs—The components of lease costs were as follows for the periods presented:

Three Months Ended March 31,Nine Months Ended March 31,
(in thousands)2024202320242023
Finance lease costs(1)
$41 $43 $125 $129 
Operating lease costs(2)
1,271 1,953 4,371 5,998 
Short-term lease costs61 74 183 137 
Variable lease costs(3)
203 (6)498 404 
Sublease income(574)(671)(1,721)(1,756)
Total net lease costs$1,002 $1,393 $3,456 $4,912 
(1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating costs and expenses and interest expense, net in the condensed consolidated statements of comprehensive income (loss).
(2) Recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income (loss).
(3) Variable lease costs are not included in the measurement of the lease liability or right-of-use asset as they are not based on an index or rate and primarily represents common area maintenance charges and real estate taxes recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income (loss).

Maturities of Lease Liabilities—As of March 31, 2024, remaining maturities of lease liabilities for each of the next five fiscal years and thereafter are as follows:
(in thousands)Operating leasesFinance leasesTotal
Remainder fiscal 2024$1,915 $42 $1,957 
20257,257 140 7,397 
20266,708 38 6,746 
20275,389 32 5,421 
20284,832 — 4,832 
Thereafter11,025 — 11,025 
     Total undiscounted lease payments37,126 252 37,378 
Less: interest10,137 19 10,156 
     Present value of lease liabilities$26,989 $233 $27,222 

The Company executed noncancelable subleases for portions of its office facilities in Overland Park, Kansas and Centennial, Colorado, which commenced during the fiscal years ended June 30, 2023 and 2022, and run through July 31, 2029 and November 30, 2026, respectively. Sublease income is recorded on a straight-line basis as a reduction of lease expense in the condensed consolidated statements of comprehensive income (loss). The Company may consider entering into additional sublease arrangements in the future.

Sublease Income—As of March 31, 2024, the future minimum fixed sublease receipts under non-cancelable operating lease agreements are as follows:

(in thousands)Total
Remainder fiscal 2024$632 
20252,548 
20262,587 
20272,180 
20281,931 
Thereafter2,092 
Total sublease income$11,970 
Leases LEASES
The majority of the Company’s leases are operating leases related to office space for which the Company recognizes lease expense on a straight-line basis over the respective lease term. The Company leases office facilities in the United States in San Diego, California; Centennial, Colorado; Overland Park, Kansas; Oakland, California; Indianapolis, Indiana; and Monaca, Pennsylvania. SelectRx leases the Monaca facility from an Executive Vice President of SelectRx. The Company expects to incur $3.6 million in total rental payments over the initial ten-year term plus an additional five-year extension option that it is reasonably certain to exercise. The Company's operating leases have remaining lease terms from less than one year up to twelve years.

During the nine months ended March 31, 2024, the Company entered into a lease amendment for the Overland Park, Kansas office which extended the lease term for a portion of its office facilities resulting in additional right-of-use assets obtained in exchange for new lease liabilities of $0.6 million. In addition, as part of the amendment, the Company leased additional office facilities with an expected commencement date on or before June 1, 2024, which will result in additional right-of-use assets in exchange for new lease liabilities of $4.5 million, and executed the early termination option for a portion of its office facilities effective on the commencement date of the additional office space, resulting in remeasurement of the operating lease liability and accelerated amortization of the right-of-use asset over the shortened remaining term of the lease.

During the nine months ended March 31, 2023, operating leases commenced in San Diego, California and Indianapolis, Indiana, resulting in new right-of-use assets obtained in exchange for new lease liabilities of $1.6 million. In addition, the Company exercised an early termination option for a portion of its office facilities in Overland Park, Kansas effective July 31, 2023, which resulted in an early termination penalty of $0.9 million, which was recorded as part of the remeasurement of the operating lease liability and resulted in accelerated amortization of the right-of-use asset over the shortened remaining term of the lease.

Lease Costs—The components of lease costs were as follows for the periods presented:

Three Months Ended March 31,Nine Months Ended March 31,
(in thousands)2024202320242023
Finance lease costs(1)
$41 $43 $125 $129 
Operating lease costs(2)
1,271 1,953 4,371 5,998 
Short-term lease costs61 74 183 137 
Variable lease costs(3)
203 (6)498 404 
Sublease income(574)(671)(1,721)(1,756)
Total net lease costs$1,002 $1,393 $3,456 $4,912 
(1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating costs and expenses and interest expense, net in the condensed consolidated statements of comprehensive income (loss).
(2) Recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income (loss).
(3) Variable lease costs are not included in the measurement of the lease liability or right-of-use asset as they are not based on an index or rate and primarily represents common area maintenance charges and real estate taxes recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income (loss).

Maturities of Lease Liabilities—As of March 31, 2024, remaining maturities of lease liabilities for each of the next five fiscal years and thereafter are as follows:
(in thousands)Operating leasesFinance leasesTotal
Remainder fiscal 2024$1,915 $42 $1,957 
20257,257 140 7,397 
20266,708 38 6,746 
20275,389 32 5,421 
20284,832 — 4,832 
Thereafter11,025 — 11,025 
     Total undiscounted lease payments37,126 252 37,378 
Less: interest10,137 19 10,156 
     Present value of lease liabilities$26,989 $233 $27,222 

The Company executed noncancelable subleases for portions of its office facilities in Overland Park, Kansas and Centennial, Colorado, which commenced during the fiscal years ended June 30, 2023 and 2022, and run through July 31, 2029 and November 30, 2026, respectively. Sublease income is recorded on a straight-line basis as a reduction of lease expense in the condensed consolidated statements of comprehensive income (loss). The Company may consider entering into additional sublease arrangements in the future.

Sublease Income—As of March 31, 2024, the future minimum fixed sublease receipts under non-cancelable operating lease agreements are as follows:

(in thousands)Total
Remainder fiscal 2024$632 
20252,548 
20262,587 
20272,180 
20281,931 
Thereafter2,092 
Total sublease income$11,970