8. Leases The Company has entered into an operating lease for office space under an agreement that expires in 2025. The lease requires the Company to pay utilities, insurance, taxes and other operating expenses. The Company’s lease does not contain any residual value guarantees or material restrictive covenants. The tables below show the changes during the nine months ended March 31, 2023:
|
|
|
|
|
(US$’000) |
|
Operating lease right- of- use assets |
|
Balance at July 1, 2022 |
|
$ |
771 |
|
Amortization of right of use asset |
|
|
(182 |
) |
|
|
|
|
|
Operating lease asset at March 31, 2023 |
|
$ |
589 |
|
|
|
|
|
|
|
|
|
|
|
(US$’000) |
|
Operating lease liabilities |
|
Balance at July 1, 2022 |
|
$ |
811 |
|
Principal payments on operating lease liabilities |
|
|
(188 |
) |
|
|
|
|
|
Operating lease liabilities at March 31, 2023 |
|
|
623 |
|
Less: non-current portion |
|
|
(354 |
) |
|
|
|
|
|
Current portion at March 31, 2023 |
|
$ |
269 |
|
|
|
|
|
| As of March 31, 2023, the Company’s operating lease has a remaining lease term of 2.21 years and a discount rate of 4.67%. The maturities of the operating lease liabilities are as follows:
|
|
|
|
|
(US$’000) |
|
March 31, 2023 |
|
2023 |
|
$ |
292 |
|
2024 |
|
|
303 |
|
2025 |
|
|
62 |
|
|
|
|
|
|
Total operating lease payments |
|
|
657 |
|
Less imputed interest |
|
|
(34 |
) |
|
|
|
|
|
Present value of operating lease liabilities |
|
$ |
623 |
|
|
|
|
|
| The Company recorded lease liabilities and lease assets for the lease based on the present value of lease payments over the expected lease term, discounted using the Company’s incremental borrowing rate. Rent expense was $0.1 million and $0.2 million for the three and nine months ended March 31, 2023, respectively, and $0.1 million and $0.2 million for the same periods in 2022.
|