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

9 Months Ended

Mar. 31, 2023

7. LEASES

As of March 31, 2023 and June 30, 2022, the balances of operating lease right of use assets were $5.4 million and $6.5 million respectively. Components of operating lease expense for the three and nine months ended March 31, 2023 and 2022 were as follows:


in thousands
	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Operating lease costs	$	366	$	347	$	1,094	$	1,181
Variable lease costs		148		143		367		379
Short term lease costs		29		23		78		70
Finance lease costs		—		6		—		16
	$	543	$	519	$	1,539	$	1,646

For the nine months ended March 31, 2023, we made cash payments of $1.2 million for operating lease obligations. These payments are included in operating cash flows. As of March 31, 2023, the weighted-average remaining lease term under our capitalized operating leases was 4.9 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 March 31, 2023 (in thousands):


Year ending June 30,	Operating Leases
2023 (remainder of year)	$	408
2024		1,624
2025		1,599
2026		1,171
2027		823
Thereafter		1,326
Total lease payments		6,951
Imputed interest		(811	)
Total operating lease liability	$	6,140		(1)
Operating lease liability - current	$	1,338		(2)
Operating lease liability - long-term		4,802		(3)
	$	6,140		(1)

(1)

Represents the present value of the capitalized operating lease liabilities as of March 31, 2023.

(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.