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LEASES

9 Months Ended

Mar. 31, 2022

NOTE 13. 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 that 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 each in the amount 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 March 31, 2022, in the amount of $370,000, is presented within accrued expenses on the condensed consolidated balance sheet.

As of March 31, 2022, the maturity of our lease liability is as follows:


	Operating Lease
Fiscal Year:
2022	$	123
2023		504
2024		519
2025		535
2026		551
Thereafter		710
Total lease payments		2,942
Less imputed interest:		(421	)
Total	$	2,521

As of March 31, 2022, our operating lease has a remaining lease term of five 5 years and six months and an imputed interest rate of 5.53%. Cash paid for amounts included in the lease liability for the three and nine months ended March 31, 2022, was $123,000 and $366,000, respectively. Cash paid for amounts included in the lease liability for the three and nine months ended March 31, 2021, was $120,000 and $355,000, respectively.