Leases

6 Months Ended

Dec. 29, 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 2029. 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.

Operating leases

As of December 29, 2023, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2024 (remaining six months)	$	994
2025	1,190
2026	1,118
2027	1,143
2028	1,143
Thereafter	287
Total undiscounted lease payments	5,875
Less imputed interest	(494)
Total present value of lease liabilities	$	5,381	(1)

(1)Includes current portion of operating lease liabilities of $1.4 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 three and six months ended December 29, 2023 was $0.5 million and $1.1 million, respectively, and for the three and six months ended December 30, 2022 was $0.6 million and $1.2 million, respectively.

Rental expense for short-term leases for the three and six months ended December 29, 2023 was $0.3 million and $0.7 million, respectively, and for the three and six months ended December 30, 2022 was de minimis.

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


	As of December 29, 2023		As of June 30, 2023
Weighted-average remaining lease term (in years)	4.4		1.2
Weighted-average discount rate	4.0	%	3.4	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statements of cash flows related to operating and finance leases for the three and six months ended December 29, 2023 and December 30, 2022:


	Three Months Ended				Six Months Ended
(in thousands)	December 29, 2023		December 30, 2022		December 29, 2023		December 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	785	$	661	$	1,744	$	1,302
Financing cash flows from finance leases	$	—	$	3	$	—	$	5
ROU assets obtained in exchange for lease liabilities	$	118	$	69	$	5,054	$	69