Leases

9 Months Ended

Mar. 31, 2024

9. Leases

The Company has operating leases primarily for its office facilities. The leases expire at various dates through fiscal year 2029, some of which include options to renew, with renewal terms of up to 7 years. The Company does not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain that it will exercise these renewal options at the time of the lease commencement.

The components of lease expense for the three and nine months ended March 31, 2024 and 2023 were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2024		2023		2024		2023
Operating lease expense	$	1,088	$	1,156	$	3,228	$	3,595
Short-term lease expense		175		155		530		484
Variable lease expense (1)		105		159		525		465
Total lease expense	$	1,368	$	1,470	$	4,283	$	4,544

(1)

Variable lease expense for the three and nine months ended March 31, 2024 and 2023 primarily included common area maintenance charges.

Supplemental information related to operating leases was as follows (in thousands, except lease term and discount rate):


	Nine Months Ended
	March 31,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	4,117		$	4,403

Lease liabilities arising from obtaining right-of-use assets
Operating leases	$	10,563		$	—

Weighted average remaining lease term - operating leases		4.3		1.5 years
Weighted average discount rate - operating leases		6.9	%		5.2	%

The implicit rate within each lease is not readily determinable and therefore the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgment. The Company determined its incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and currency to align with the terms of a lease.

Maturities of operating lease liabilities as of March 31, 2024 were as follows (in thousands):


Fiscal Year Ending June 30,	Amount
2024 (remaining three months)	$	997
2025		3,356
2026		2,708
2027		2,572
2028		2,714
Thereafter		1,666
Total minimum lease payments	$	14,013
Less imputed interest		(2,606	)
Present value of net minimum lease payments	$	11,407
Operating lease liabilities:
Current	$	3,147
Noncurrent		8,260
Total	$	11,407