At the beginning of fiscal year 2021, the Company leased office space consisting of 5,219 square feet in Austin, Texas that housed executive management, finance and accounting, sales, and marketing and communications. The lease began in November 2016 and was originally set to expire in December 2023. On August 3, 2020, the Company decided to terminate the lease. Upon lease termination, the Company recognized a decrease in the related operating right-of-use (“ROU”) asset and operating lease liability of approximately $539 thousand and $506 thousand, respectively.

On April 27, 2021, Astrotech entered into a new lease for a research and development facility of approximately 5,960 square feet in Austin, Texas that includes a laboratory, a small production shop, and offices for staff, although many of the Company’s employees continue to work remotely. The lease commenced on June 1, 2021 and has a lease term of 36 months.

Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. Significant judgement is required when determining the Company’s incremental borrowing rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The balance sheet presentation of the Company’s operating and finance leases is as follows:

(In thousands)	Classification on the Condensed Consolidated Balance Sheet	September 30, 2021
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	228
Financing lease assets	Property and equipment, net		48
Total lease assets		$	276

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	90
Financing lease obligations	Lease liabilities, current		10
Non-current:
Operating lease obligations	Lease liabilities, non-current		162
Financing lease obligations	Lease liabilities, non-current		27
Total lease liabilities		$	289

(In thousands)
For the Year Ending June 30,	Operating Leases		Financing Leases		Total
2022	$	76	$	9	$	85
2023		103		12		115
2024		93		12		105
2025		—		9		9
2026		—		—		—
Thereafter		—		—		—
Total lease obligations		272		42		314
Less: imputed interest		20		5		25
Present value of net minimum lease obligations		252		37		289
Less: lease liabilities - current		90		10		100
Lease liabilities - non-current	$	162	$	27	$	189

Cash payments for operating leases for the three months ended September 30, 2021 and September 30, 2020 totaled $10 thousand and $70 thousand, respectively.

Cash payments for financing leases for each of the three months ended September 30, 2021 and September 30, 2020 totaled $3 thousand.

Weighted-average remaining lease term (years):

Operating leases

Financing leases

Weighted-average discount rate:

Operating leases

Financing leases