NOTE 3 — LEASES

In November 2020, the Company entered into an assignment, assumption and amendment of lease agreement for ancillary office space in Bend, Oregon. The leased space consists of approximately 5,000 square feet and provides for average monthly rent of approximately $8,400 through the expiration date in February 2024. The lease provides one option to renew the lease for an additional three years at market rates. The Company determined it was not reasonably assured that this renewal option would be exercised whereby the resulting lease term was estimated at 40 months. Using a discount rate of 6.0%, the Company recognized an ROU asset and corresponding operating lease liability of approximately $0.3 million at inception of the lease.

As of June 30, 2021 and 2020, the carrying value of all ROU assets and operating lease liabilities was as follows (in thousands):


	2021		2020
Right-of-Use Assets, net	$	396	$	383
Operating Lease Liabilities:
Current	$	265	$	245
Long-term		187		165
Total	$	452	$	410

For the fiscal years ended June 30, 2021 and 2020, operating lease expense was as follows (in thousands):


	2021		2020
Research and development	$	268	$	188
General and administrative		111		82
Total	$	379	$	270

As of June 30, 2021, the weighted-average remaining lease term under operating leases was 1.9 years, and the weighted-average discount rate used to determine the operating lease liabilities was 7.4%. For the fiscal year ended June 30, 2021, cash paid for amounts included in the measurement of operating lease liabilities amounted to $0.3 million, which is included in the determination of net cash used in operating activities in the consolidated statement of cash flows.

Future Lease Payments

Future payments under operating lease agreements as of June 30, 2021 are as follows (in thousands):


Fiscal year ending June 30,
2022	$	283
2023		117
2024		80
Total lease payments		480
Less imputed interest		(28)
Present value of operating lease liabilities	$	452