Leases

6 Months Ended

Dec. 31, 2021

Note 7. Leases

We are party to a lease agreement for approximately 32,800 square feet of office space in San Diego, California. We have accounted for the lease as an operating lease. The contractual lease term is from July 2020 through March 2028. The lease contains an option to renew and extend the lease terms. We have not included the lease extension within the ROU asset and lease liability on the balance sheet as it is not reasonably certain to be exercised. The lease includes variable non-lease components (e.g., common area maintenance, maintenance, etc.) that are not included in the ROU asset and lease liability and are reflected as an expense in the period incurred. We do not have any other operating or finance leases. Upon commencement of the lease, we recognized an operating lease ROU asset of $8.7 million and a corresponding operating lease liability of $8.7 million.

The total operating lease costs were as follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost	$	377	$	377	$	753	$	753

Supplemental cash flow information related to our operating leases were as follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	380	$	123	$	760	$	246
Right-of-use assets obtained in exchange for operating lease obligations:		—		—		—		8,689

The following is a schedule of the future minimum rental payments for our operating lease, reconciled to the lease liability as of December 31, 2021 (in thousands):


	December 31, 2021
Remainder of fiscal year ending June 30, 2022	$	760
Years ending June 30,
2023		1,565
2024		1,612
2025		1,168
2026		1,710
2027		1,761
Thereafter		1,360
Total lease payments		9,936
Less: Present value discount		(2,094	)
Total operating lease liability	$	7,842
Balance Sheet Classification – Operating Lease
Operating lease liability	$	987
Operating lease liability, long-term		6,855
Total operating lease liability	$	7,842
Other Balance Sheet Information – Operating Lease
Weighted average remaining lease term (in years)		6.3
Weighted average discount rate		7.50	%