Leases

3 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Leases

Leases

Operating lease cost amounted to $0.7 million and $0.6 million for three months period ended September 30, 2021 and 2020. As of September 30, 2021, the Company’s right-of-use assets, lease obligations and remaining cash commitment on these leases (in thousands):

	Right-of-Use Assets	Operating Lease Obligations		Remaining Cash Commitment
Operating leases	6,490	$	6,619	$	7,936

The Company has other operating lease agreements with commitments of less than one year or that are not significant. The Company elected the practical expedient option and as such, these lease payments are expensed as incurred. The Company’s weighted average discount rate and remaining term on lease liabilities is approximately 9.0% and 4.9 years. As of September 30, 2021, the Company’s financing leases are de minimis. The foreign exchange impact affecting the operating leases are de minimis.

In September 2021, the Company entered into a six year lease in China for 100,682 square feet and recorded a right of use asset for $2.6 million. The facility is expected to be operational by the end of 2021. In July, Starrett UK leased space to another company for annual rent of $0.2 million and incremental applicable service charges. The lease is a 20 year agreement with a contract review in 2026. The fees are recorded in Other Income in the Company's Consolidated Statement of Operations.

At September 30, 2021, the Company had the following fiscal year minimum operating lease commitments (in thousands)

Three Months Ended September 30, 2021	Operating Lease Commitments
2022 (Remainder of year)	$	1,727
2023	1,656
2024	1,523
2025	1,166
2026	1,013
Thereafter	850
Subtotal	$	7,936
Imputed interest	(1,316)
Total	6,619