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LEASES

6 Months Ended

Dec. 31, 2019

Company As Lessor

Operating leases under which the Company is the lessor arise from the leasing of the Company’s commercial real estate investment property to third parties. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expenses relating to the property held as investments in operating leases were $17 and $34 for the three and six months ended December 31, 2019 and $14 and $28 for the same period in the last fiscal year.

Future minimum rental income in China to be received from fiscal year 2020 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of December 31, 2019:

Remainder of fiscal 2020	$	34
2021	$	20
	$	54

Future minimum rental income in China to be received from fiscal year 2020 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of June 30, 2019:

2020	$	72
2021	$	6
	$	78

Company As Lessee

The Company has operating leases for corporate offices and research and development facilities with remaining lease terms of 1 year to 3 years and finance leases for plant and equipment.

Supplemental balance sheet information related to leases is as follows (in thousands):

		Dec. 31,
		2019
Components of Lease Balances	Classification	(Unaudited)
Assets
Operating Lease Assets	Right-of-use asset-operating, net	$	475
Finance Lease Assets	Property, plant & equipment		1,998
Accumulated Amortization ROU			751
Assets	Property, plant & equipment	$	1,247
Total Leased Assets		$	1,722

Liabilities
Operating Leases Liabilities
Current Portion	Current portion of lease liability-operating	$	343
Long-term portion	Lease liability- Operating, net of Current portion		134
Total operating lease liabilities		$	477
Finance Leases Liabilities
Current portion of finance leases	Current portion of lease liability-finance	$	286
Net of current portion of finance leases	Lease liability- Finance , net of Current portion		570
Total finance lease liabilities		$	856

Total lease liabilities		$	1,333

	3 Months Ended		6 Months Ended
	Dec. 31, 2019
Lease Cost
Finance Lease Cost:
Interest on Lease Liability		3	$	24
Amortisation of Right-of-use Asset		69		136
Total Finance Lease Cost		72		150

Operating Lease Costs $		184	$	359

Other information related to leases were as follows (in thousands except lease term and discount rate):

	Dec. 31,
	2019
	(Unaudited)
Cash Paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	24
Operating cash flows from operating leases	$	359
Finance cash flows from finance leases	$	127
Right-of-use assets obtained in exchange for new operating lease liabilities

Weighted-average remaining lease term:
Finance leases		3.67
Operating leases		0.97
Weighted-average Discount Rate:
Finance leases		3.43	%
Operating leases		3.25	%

As of December 31, 2019, the maturities of the Company's operating lease liabilities are as follow:

	Operating lease Liabilities			Finance Lease Liabilities
Fiscal Year
Remainder of 2020	$	309		$	199
2021		155			276
2022		29			220
2023		—			139
2024		—			99
Thereafter					22
Total future minimum lease payments	$	493		$	955
Less: amount representing interest		(16	)		(99	)
Present value of net minimum lease payments		477			856

Presentation on statement of financial position
Current	$	343		$	286
Non Current	$	134		$	570

As of Jun 30, 2019, future minimum lease payments under finance leases and non-cancelable operating leases were as follows:

	Operating lease Liabilities		Finance Lease Liabilities
Fiscal Year
2020	$	620	$	283
2021		216		187
2022		47		143
2023		1		68
2024		—		44
Total future minimum lease payments	$	884	$	725