Leases

3 Months Ended

Sep. 30, 2022

The Company has various operating leases for office space. Some leases include options to extend the lease term, generally at the Company's discretion. The leases generally provide for fixed annual rentals plus certain other costs. The Company's lease agreements do not include any material residual value guarantees or material restrictive covenants. Since the Company's leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of future lease payments. Upon the adoption of ASC Topic 842, Leases, the Company used the incremental borrowing rate on July 1, 2019 for all operating leases that commenced prior to that date.

Lease costs were approximately $0.7 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively.

In September 2022, the Company terminated the lease of one of their office facilities in Englewood Cliffs, NJ. As part of company-wide restructuring, the Company made the decision to cease using this space as of September, 2022, and has no foreseeable plans to occupy it in the future. As of September 30, 2022 the company has made a $100 thousand payment and accrued an additional $100 thousand, which was paid on October 28, 2022. Further, the company derecognized the associated right of use asset, and lease liability, and recorded a loss on the early termination of the lease, which is recognized on the Statement of Operations on the line restructuring charges.

The following table summarizes the weighted-average remaining lease term and discount rate for operating leases:


	Undiscounted Cash Flows
Weighted-average discount rate for operating leases	5.50%
Weighted-average remaining operating lease term in years	3.2 years

As of September 30, 2022, the maturities of the Company's operating lease liabilities are as follows:

Remainder of fiscal year ending June 30, 2023	$	1,658,000
2024	1,998,000
2025	1,706,000
2026	1,436,000
2027	1,378,000
Thereafter	2,463,152
Total undiscounted operating lease payments	10,639,152
Less: Imputed interest	(1,591,000)
Total operating lease liabilities	9,048,152
Less: current portion of operating lease liabilities	1,440,080
Non-current operating lease liabilities	$	7,608,072