Leases

9 Months Ended

Mar. 29, 2024

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., 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 term 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 March 29, 2024, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2024 (remaining three months)	$	444
2025	1,342
2026	1,272
2027	477
2028	15
Thereafter	1
Total undiscounted lease payments	3,551
Less imputed interest	(215)
Total present value of lease liabilities	$	3,336	(1)

(1)Includes current portion of operating lease liabilities of $1.3 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 nine months ended March 29, 2024 was $0.4 million and $1.5 million, respectively, and for the three and nine months ended March 31, 2023 was $0.6 million and $1.8 million, respectively.

Rental expense for short-term leases for the three and nine months ended March 29, 2024 was $0.1 million and $0.8 million, respectively, and for the three and nine months ended March 31, 2023 was $0.2 million and $0.3 million, respectively.

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


	As of March 29, 2024		As of June 30, 2023
Weighted-average remaining lease term (in years)	2.5		1.2
Weighted-average discount rate	4.6	%	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 nine months ended March 29, 2024 and March 31, 2023:


	Three Months Ended				Nine Months Ended
(in thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	442	$	575	$	2,186	$	1,877
Financing cash flows from finance leases	$	—	$	2	$	—	$	7
ROU assets obtained in exchange for lease liabilities	$	632	$	—	$	3,406	$	79