LEASES

3 Months Ended

Sep. 30, 2021

Leases

LEASES

NOTE 12. 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 operating lease ROU asset and long-term liability are presented separately on our condensed consolidated balance sheet. The current portion of our operating lease liability as of September 30, 2021, in the amount of $353,000, is presented within accrued expenses on the condensed consolidated balance sheet.

As of September 30, 2021, our operating lease has a remaining lease term of six years and an imputed interest rate of 5.53%. Cash paid for amounts included in the lease liability was $120,000 for the three months ended September 30, 2021, excluding $12,000 paid for common area maintenance charges.

As of September 30, 2021, the maturity of our lease liability is as follows (in thousands):

	Operating Lease
Fiscal Year:
2022	$	369
2023		504
2024		519
2025		535
2026		551
Thereafter		710
Total lease payments		3,188
Less imputed interest		(493	)
Total	$	2,695