Adoption of ASC 842, "Leases" (Tables)

3 Months Ended

Sep. 29, 2019

Adoption of ASC 842, "Leases" [Abstract]

Impact of Adoption of New Standards Update Related to Operating Lease

The impact of adoption of this new standards update is as follows (in thousands):

	July 1, 2019
	Adoption		Reclassification (1)		Total Adjustment
Balance Sheet:
Operating lease right of use assets	$	3,428	$	434	$	3,862
Operating lease liabilities - current		528				528
Operating lease liabilities - long-term		3,347				3,347

(1) As of June 30, 2019, the Company had $132 thousand recorded within deferred rent for lease incentives incurred at the inception of the affected leases and $302 thousand in deferred rent tenant improvements. Upon adoption of the new standards update, these lease incentives were included within the lease liability.

Components of Total Lease Expense

The components of total lease expense for the three months ended September 29, 2019, the majority of which is included in general and administrative expense, are as follows (in thousands):

	Three Months Ended
	September 29, 2019
Operating lease cost	$	153
Sublease income		(41	)
Total lease expense, net of sublease income	$	112

Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases is included in the table below (in thousands):

	Three Months Ended
	September 29, 2019
Cash paid for amounts included in the measurement of lease liabilities		158
Right of use assets added in exchange for lease obligations (since adoption)		-

Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to operating leases is included in the table below (in thousands):

	September 29, 2019
Operating lease right of use assets	$	3,313
Accrued liabilities - current		531
Operating lease liabilities - long-term		3,224

Weighted Average Remaining Lease Term and Weighted Average Discount Rate

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	September 29, 2019
Weighted average remaining lease term	7 years
Weighted average discount rate		4.0	%

Maturities of Lease Liabilities

Lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases
Remainder of fiscal year 2020	$	470
2021		641
2022		654
2023		664
2024		571
Thereafter		1,294
Total lease payments	$	4,294
Less imputed interest		(539	)
Total lease liability	$	3,755