Adoption of ASC 842, "Leases" (Tables)

6 Months Ended

Dec. 27, 2020

Adoption of ASC 842, "Leases" [Abstract]

Impact of Adoption of New Standards Update Related to Operating Lease

The impact of adoption of this new standards update was as follows (in thousands):

	July 1, 2019
		Adoption	Reclassification (1)			Total Adjustment
Operating lease right of use assets	$	3,428	$	434	$	3,862
Operating lease liabilities – current		528				528
Operating lease liabilities - long-term		3,347				3,347

(1) As of June 30, 2019, the Company had $132 thousand recorded within deferred rent for lease incentives incurred at the inception of the affected leases and $302 thousand in deferred rent tenant improvements. Upon adoption of the new standards update, these lease incentives were included within the lease liability.

Components of Total Lease Expense

The components of total lease expense for the six months ended December 27, 2020, the majority of which is included in general and administrative expense, are as follows (in thousands):

		Six Months Ended
		December 27, 2020
Operating lease cost	$	367
Sublease income		(99	)
Total lease expense, net of sublease income	$	268

Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases is included in the table below (in thousands):

	Six Months Ended
	December 27, 2020
Cash paid for amounts included in the measurement of lease liabilities	$	388

Weighted Average Remaining Lease Term and Weighted Average Discount Rate

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	December 27, 2020
Weighted average remaining lease term	5.0 Years
Weighted average discount rate	4.0	%

Maturities of Operating Lease Liabilities

Operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases
Remainder of fiscal year 2021	$	398
2022		804
2023		813
2024		766
Thereafter		1,448
Total operating lease payments	$	4,229
Less: imputed interest		(433	)
Total operating lease liability	$	3,796