OPERATING LEASES

3 Months Ended

Sep. 30, 2022

OPERATING LEASES

OPERATING LEASES

NOTE 3 — OPERATING LEASES

The carrying value of right-of-use assets and operating lease liabilities are as follows (in thousands):

	September 30,		June 30,
	2022		2022
Right-of-use assets	$	130	$	152
Operating lease liabilities:
Current	$	112	$	108
Long-term		49		80
Total	$	161	$	188

For the three months ended September 30, 2022 and 2021, operating lease expense is included under the following captions in the accompanying condensed consolidated statements of operations (in thousands):

	2022		2021
Research and development	$	77	$	79
General and administrative		23		23
Total	$	100	$	102

As of September 30, 2022, the weighted average remaining lease term under operating leases was 1.4 years, and the weighted average discount rate for operating lease liabilities was 6.0%. Future payments under all operating lease agreements that had commenced as of September 30, 2022 are as follows (in thousands):

Fiscal year ending June 30,
Remainder of fiscal year 2023	$	88
2024		79
Total lease payments		167
Less imputed interest		(6)
Present value of operating lease liabilities	$	161

Headquarters Lease

In April 2022, the Company entered into a lease agreement for a new corporate headquarters in Redwood City, California. The space consists of approximately 9,300 square feet and provides for total base rent payments of approximately $2.9 million through the expected expiration of the lease in November 2027. The landlord was required to make improvements to the facility before the Company could occupy the space, which were completed in October 2022, triggering the commencement of the lease. The lease provides for a six-month rent abatement period beginning upon commencement of the lease term which occurred on October 18, 2022. In addition, the lease provides an allowance of approximately $0.1 million that may be utilized by the Company for the purchase of furniture and equipment. The average base rent payable in cash over the 60-month lease term is approximately $48,000 per month. Upon commencement of the lease, the Company expects to recognize a right-of-use asset and a related operating lease liability for approximately $2.3 million.

The future payments under this operating lease agreement are as follows (in thousands):

Fiscal year ending June 30,
Remainder of fiscal year 2023	$	50
2024		609
2025		627
2026		646
2027		666
Thereafter		224
Total lease payments	$	2,822