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. During August 2021, the Company extended the lease thr o ugh June 2025. The tables below show the changes during the three months ended September 30, 2021:
|
|
|
|
Balance at July 1, 2021 |
|
$ |
202 |
|
Re-measurement during the period |
|
|
794 |
|
Amortization of right of use asset |
|
|
(49 |
) |
| |
|
|
|
|
Operating lease asset at September 30, 2021 |
|
$ |
947 |
|
| |
|
|
|
|
| |
|
|
|
|
|
|
Operating
lease
liabilities |
|
| Balance at July 1, 2021 |
|
$ |
213 |
|
Re-measurement during the period |
|
|
794 |
|
| Principal payments on operating lease liabilities |
|
|
(51 |
) |
| |
|
|
|
|
| Operating lease liabilities at September 30, 2021 |
|
|
954 |
|
Less: non-current portion |
|
|
(760 |
) |
| |
|
|
|
|
| Current portion at September 30, 2021 |
|
$ |
194 |
|
| |
|
|
|
| As of September 30, 2021, the Company’s operating lease has a remaining lease term of 3.71 years and a discount rate of 4.67%. The maturities of the operating lease liabilities are as follows:
| |
|
|
|
|
(US$’000) |
|
September 30,
2021 |
|
| 2022 |
|
|
235 |
|
| 2023 |
|
|
287 |
|
| 2024 |
|
|
297 |
|
| 2025 |
|
|
228 |
|
| |
|
|
|
|
Total operating lease payment s
|
|
|
1,047 |
|
| Less imputed interest |
|
|
(93 |
) |
| |
|
|
|
|
| Present value of operating lease liabilities |
|
$ |
954 |
|
| |
|
|
|
| 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 for the three months ended September 30, 2021 and 2020, respectively, of which $7 thousand was recorded in the general and administrative expense and $45 thousand was record in research and development expenses. |