Leases

6 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Leases

Leases

Operating lease cost amounted to $0.8 million and $1.6 million for the three and six months period ended December 31, 2021 and $0.6 million and $1.2 million for the three and six months period ended December 31, 2020. As of December 31, 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	$	5,772	$	5,932	$	7,201

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.

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 4.6 years. As of December 31, 2021, the Company’s financing leases are de minimis. The foreign exchange impact affecting the operating leases are de minimis.

The Company entered into $0.1 million and $2.6 million in new operating lease commitments and incurred immaterial exchange expense during the three and six months ended December 31, 2021.

At December 31, 2021, the Company had the following fiscal year minimum operating lease commitments (in thousands)

Six months ended December 31, 2021	Operating Lease Commitments
2021 (Remainder of year)	$	994
2023	1,689
2024	1,520
2025	1,129
2026	1,044
Thereafter	824
Subtotal	$	7,201
Imputed interest	(1,269)
Total	5,932