A-Mark Precious Metals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

6 Months Ended

Dec. 31, 2022

7. LEASES

As of December 31, 2022 and June 30, 2022, the balances of operating lease right of use assets were $5.7 million and $6.5 million respectively. Components of operating lease expense for the three and six months ended December 31, 2022 and 2021 were as follows:


in thousands
	Three Months Ended				Six Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Operating lease costs	$	366	$	385	$	728	$	834
Variable lease costs		115		121		219		236
Short term lease costs		24		25		49		47
Finance lease costs		—		5		—		10
	$	505	$	536	$	996	$	1,127

For the six months ended December 31, 2022, we made cash payments of $0.8 million for operating lease obligations. These payments are included in operating cash flows. As of December 31, 2022, the weighted-average remaining lease term under our capitalized operating leases was 5.1 years, while the weighted-average discount rate for our operating leases was approximately 4.9%.

The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of December 31, 2022:


Years ending June 30,	Operating Leases
2023 (6 months remaining)	$	810
2024		1,624
2025		1,599
2026		1,171
2027		823
Thereafter		1,326
Total lease payments		7,353
Imputed interest		(890	)
	$	6,463		(1)
Operating lease liability - current	$	1,310		(2)
Operating lease liability - long-term		5,153		(3)
	$	6,463		(1)

(1)

Represents the present value of the capitalized operating lease liabilities as of December 31, 2022.

(2)

Current operating lease liabilities are presented within accrued liabilities on our condensed consolidated balance sheets.

(3)

Long-term operating lease liabilities are presented within other liabilities on our condensed consolidated balance sheets.

The Company has one related party lease. For information on this lease refer to Note 16.

We do not have leases that have not yet commenced, which would create significant rights and obligations for us, including any involvement with the construction or design of the underlying asset.