Leases

3 Months Ended

Sep. 30, 2023

Note 8. Leases

The Company leases the majority of its office space in the U.S., U.K., Singapore and Ukraine under non-cancelable operating lease agreements, which have various expiration dates through June 2030, some of which include options to extend the leases for up to 5 years.

As part of the Company's continuing assessment of its facilities requirements, in September 2022, the Company exited a portion of the leased office space in its headquarters in Palo Alto, California and amended the underlying lease agreement to relieve the Company of certain lease payments. As a result, the Company assessed the right-of-use (“ROU”) asset associated with the leased office space and deemed it to be impaired. The Company also assessed the lease liability in view of the amended lease agreement. The Company recorded a net charge of $1.9 million in connection with the impairment of the related ROU asset and the reassessment of the lease liability, which was included in its unaudited condensed consolidated statements of operations during the three months ended September 30, 2022.

The components of lease costs were as follows (in thousands):


	Three Months Ended September 30,
Operating Leases:	2023		2022
Operating lease cost (1)	$	1,500	$	1,682
Short-term lease cost		271		210

(1)

Amount excluded a net charge of $1.9 million related to lease modification and impairment for the three months ended September 30, 2022 as described above.

The weighted-average remaining lease term of the Company's operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:


Lease Term and Discount Rate:	September 30, 2023			September 30, 2022
Weighted-average remaining lease term (in years)		6.0			6.4
Weighted-average discount rate		7.1	%		7.1	%

The following table presents supplemental cash flow information related to the Company's operating leases (in thousands):


	Three Months Ended September 30,
	2023		2022
Cash payments included in the measurement of operating lease liabilities	$	1,695	$	1,965

Current operating lease liabilities of $4.3 million and $4.7 million were included in other current liabilities on the Company’s unaudited condensed consolidated balance sheets as of September 30, 2023 and June 30, 2023, respectively.

As of September 30, 2023, remaining maturities of operating lease liabilities are as follows (in thousands):


Fiscal Year Ending June 30,	Amount
2024 (remaining 9 months)	$	4,272
2025		3,764
2026		3,371
2027		2,838
2028		3,121
2029 and thereafter		6,379
Total lease payments		23,745
Less: imputed interest		(4,424	)
Present value of operating lease liabilities	$	19,321