Leases

12 Months Ended

Jun. 30, 2023

The Company leases facilities under non-cancelable operating lease agreements. The Company leases a portion of its capital equipment and vehicles, certain land and buildings for its facilities in Thailand, the Cayman Islands, the PRC, the U.S., the U.K., Israel and Singapore under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one to five years following the expiration of the current term. However, the Company has excluded all lease extension options from its right of use (“ROU”) assets and lease liabilities as the Company is not reasonably assured that it will exercise these options. None of the lease agreements contain residual value guarantees provided by the lessee. The Company also has one intercompany lease transaction in the form of a lease of office and manufacturing space.

As of June 30, 2023, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2024	$	1,217
2025	71

Total undiscounted lease payments	1,288
Less imputed interest	(21)
Total present value of lease liabilities	$	1,267	(1)

(1)Includes current portion of operating lease liabilities of $1.2 million.

Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term.

Rental expense for long-term leases for the years ended June 30, 2023, June 24, 2022 and June 25, 2021 was $2.4 million, $2.2 million and $2.6 million, respectively.

Rental expense for short-term leases for the years ended June 30, 2023, June 24, 2022 and June 25, 2021 was $0.8 million, $0.2 million and $0.3 million, respectively.

The following summarizes additional information related to the Company’s operating leases:


	As of June 30, 2023
Weighted-average remaining lease term (in years)
Operating leases	1.2
Weighted-average discount rate
Operating leases	3.4	%

The following information represents supplemental disclosure for the statement of cash flows related to operating leases:


(in thousands)	Year Ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,477
Financing cash flows from finance leases	$	9
ROU assets obtained in exchange for lease liabilities	$	312