Leases

9 Months Ended

Mar. 31, 2023

The Company leases facilities under non-cancelable operating lease agreements. The Company leases a portion of its capital equipment and vehicles, certain land and buildings for its facilities in Thailand, the Cayman Islands, the PRC, the U.S., the U.K., Israel and Singapore under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one to five years following the expiration of the current term. However, the Company has excluded all lease extension options from its right of use (“ROU”) assets and lease liabilities as the Company is not reasonably assured that it will exercise these options. None of the lease agreements contain residual value guarantees provided by the lessee. The Company also has one intercompany lease transaction in the form of a lease of office and manufacturing space.

Operating leases

As of March 31, 2023, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2023 (remaining three months)	$	644
2024	1,213
2025	45


Total undiscounted lease payments	1,902
Less imputed interest	(33)
Total present value of lease liabilities	$	1,869	(1)

(1)Includes current portion of operating lease liabilities of $1.6 million.

Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term.

Rental expense for long-term leases for the three and nine months ended March 31, 2023 was $0.6 million and $1.8 million, respectively, and for the three and nine months ended March 25, 2022 was $0.7 million and $2.1 million, respectively. Rental expense for short-term leases for the three and nine months ended March 31, 2023 was $0.2 million and $0.3 million, respectively, and for the three and nine months ended March 25, 2022 was $0.1 million and $0.2 million, respectively.

Finance leases

As of March 31, 2023, the Company had one finance lease agreement with a de minimis amount.

The following summarizes additional information related to the Company’s operating leases:


	As of March 31, 2023		As of June 24, 2022
Weighted-average remaining lease term (in years)	1.3		1.8
Weighted-average discount rate	3.4	%	3.4	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three and nine months ended March 31, 2023 and March 25, 2022:


	Three Months Ended				Nine Months Ended
(in thousands)	March 31, 2023		March 25, 2022		March 31, 2023		March 25, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	575	$	678	$	1,877	$	2,076
Financing cash flows from finance leases	$	2	$	—	$	7	$	—
ROU assets obtained in exchange for lease liabilities	$	—	$	—	$	79	$	38