Leases

9 Months Ended

Mar. 31, 2021

Note 7. Leases

In December 2019, we entered into a lease agreement for approximately 32,800 square feet of office space in San Diego, California. We have accounted for the lease as an operating lease. The contractual lease term began in July 2020 and is scheduled to expire in March 2028. The lease contains an option to renew and extend the lease terms. We have not included the lease extension within the ROU asset and lease liability on the balance sheet as it is not reasonably certain to be exercised. The lease includes variable

non-lease

components (e.g., common area maintenance, maintenance, etc.) that are not included in the ROU asset and lease liability and are reflected as an expense in the period incurred. We do not have any other operating or finance leases. Upon commencement of the lease, we recognized an operating lease ROU asset of $8.7 million and a corresponding operating lease liability of $8.7 million.

The total operating lease costs were as follows (in thousands):


	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2021			2020
Operating lease cost		$	377		$	201		$	1,130		$	603

Supplemental cash flow information related to our operating leases were as follows (in thousands):


	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	369		$	201		$	615		$	603
Right-of-use assets obtained in exchange for operating lease obligations:			—			—			8,689			—

The following is a schedule of the future minimum rental payments for our operating lease, reconciled to the lease liability as of March 31, 2021 (in thousands):


	March 31, 2021
Remainder of fiscal year ending June 30, 2021		$	368
Years ending June 30,
2022			1,519
2023			1,565
2024			1,612
2025			1,168
2026			1,710
Thereafter			3,122

Total lease payments			11,064
Less: Present value discount			(2,556	)

Total operating lease liability		$	8,508

Balance Sheet Classification – Operating Lease
Operating lease liability		$	900
Operating lease liability, long-term			7,608

Total operating lease liability		$	8,508

Other Balance Sheet Information – Operating Lease
Weighted average remaining lease term (in years)			7.0
Weighted average discount rate			7.50	%