Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
3 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases
9
. Leases
The Company has entered into an operating lease for office space under an agreement that expires in 2022. 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.
As of September 30, 2020, the Company’s operating lease has a remaining lease term of 1.7 years and a discount rate of 4.67%. The maturities of the operating lease liabilities are as follows:
 
(US$’000)
   September 30, 2020  
2021
   $ 156  
2022
     218  
  
 
 
 
Total operating lease payments
     375  
Less imputed interest
     (16
  
 
 
 
Present value of operating lease liabilities
   $ 359  
  
 
 
 
The Company recorded lease liabilities and
right-of-use
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 under the lease $52,000 for both the three months ended September 30, 2020 and 2019, respectively, and was recorded in the general and administrative expenses.