LEASES

6 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

NOTE 11. LEASES

Effective July 1, 2019, we adopted the new lease accounting standard using the modified retrospective method of applying the new standard at the adoption date. In addition, we elected the practical expedient which allowed us to carry forward the historical lease classification of our sole operating lease for our corporate office, which includes our manufacturing and research and development facilities. Adoption of this standard resulted in the recording of net operating lease right-of-use (“ROU”) asset and corresponding operating lease liability of $3.3 million. Our financial position for reporting periods beginning on or after July 1, 2019 is presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance.

Our operating lease ROU asset and long-term liability are presented separately on our Condensed Balance Sheet. The current portion of our operating lease liability as of December 31, 2019, in the amount of $297,000, is presented within accrued expenses on the Condensed Balance Sheet.

As of December 31, 2019, the maturity of our lease liability is as follows:

	Operating Lease
Fiscal Year:
2020	$	232
2021		475
2022		489
2023		504
2024		519
Thereafter		1,796
Total lease payments		4,015
Less imputed interest:		(782	)
Total	$	3,233

As of December 31, 2019, our operating lease has a remaining lease term of seven years and nine months and an imputed interest rate of 5.3%. Cash paid for amounts included in the lease liability for the three and six months ended December 31, 2019 was $116,000 and $229,000, respectively. As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for our only operating lease having an initial or remaining noncancellable lease term in excess of one year would have been as follows:

	Operating Leases at June 30, 2019
Fiscal Year:
2020	$	461
2021		475
2022		489
2023		504
2024		519
Thereafter		1,796
Total minimum lease payments	$	4,244