8.   Finance Lease ROU Assets

As discussed above, the Company adopted ASC 842 effective July 1, 2019 using the modified retrospective approach for all leases entered into before the effective date.

From January 13, 2016 until November 1, 2021, iBio CDMO leased its facility (the “Facility”) in Bryan, Texas as well as certain equipment from an affiliate (the "Second Eastern Affiliate") of Eastern Capital Limited ("Eastern"), a former significant stockholder of the Company, under a sublease (the "Sublease"). The Sublease was terminated on November 1, 2021 when iBio CDMO acquired the Facility and became the tenant under the ground lease for the property upon which the Facility is located.  See Note 13 – Finance Lease Obligation for more details of the terms of the Sublease and Note 25 - Subsequent Events.

The economic substance of the Sublease was that the Company was financing the acquisition of the Facility and equipment. As the Sublease involved real estate and equipment, the Company separated the equipment component and accounted for the Facility and equipment as if each were leased separately.

The following table summarizes by category the gross carrying value and accumulated amortization of finance lease ROU (in thousands):

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Amortization of finance lease ROU assets was approximately $416,000 and $415,000 for three months ended September 30, 2021 and 2020, respectively.