OPERATING LEASES

6 Months Ended

Dec. 31, 2023

OPERATING LEASES

OPERATING LEASES

NOTE 4 — OPERATING LEASES

In October 2023, the Company entered into an addendum to the lease agreement for its office in Bend, Oregon. The addendum provided for a 36-month extension, which extends the lease through February 2027. The average base rent payable over the remaining lease term

is approximately $9,000. Upon execution of the addendum, the Company re-measured the Bend, Oregon operating lease liability at approximately $345,000 using a discount rate of 10.0%, and the related right-of-use asset was recognized for approximately $351,000.

The carrying values of all right-of-use assets and operating lease liabilities is as follows (in thousands):

	December 31,		June 30,
	2023		2023
Right-of-use assets	$	2,130	$	2,054
Operating lease liabilities:
Current	$	538	$	541
Long-term		1,975		1,937
Total	$	2,513	$	2,478

For the three and six months ended December 31, 2023 and 2022, operating lease expense is included under the following captions in the accompanying condensed consolidated statements of operations and comprehensive loss (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Research and development	$	130	$	115	$	261	$	192
General and administrative		39		48		81		71
Total	$	169	$	163	$	342	$	263

As of December 31, 2023, the weighted average remaining lease term under operating leases was 3.8 years, and the weighted average discount rate for operating lease liabilities was 7.2%. Future cash payments under all operating lease agreements as of December 31, 2023 are as follows (in thousands):

Fiscal year ending June 30,
Remainder of fiscal year 2024	$	367
2025		748
2026		770
2027		750
Thereafter		224
Total lease payments		2,859
Less imputed interest		(346)
Present value of operating lease liabilities	$	2,513