Leases

12 Months Ended

Jun. 30, 2021

Note 11. Leases

We entered into 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 began in July 2020 and is scheduled to expire in 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):


	Years Ended June 30,
	2021		2020		2019
Operating lease cost	$	1,507	$	692	$	685

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


	Years Ended June 30,
	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	983	$	—	$	—
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 leases, reconciled to the lease liability as of June 30, 2021 (in thousands):


	June 30, 2021
Years ending June 30,
2022	$	1,519
2023		1,565
2024		1,612
2025		1,168
2026		1,710
Thereafter		3,121
Total lease payments		10,695
Less: Present value discount		(2,397	)
Total operating lease liability	$	8,298

Balance Sheet Classification - Operating Leases
Operating lease liability	$	928
Operating lease liability, long-term		7,370
Total operating lease liability	$	8,298

Other Balance Sheet Information - Operating Leases
Weighted average remaining lease term (in years)		6.8
Weighted average discount rate		7.50	%