Operating Lease Obligation
|3 Months Ended
Sep. 30, 2021
|Operating Lease, Liability [Abstract]
|Operating Lease Obligation
14. Operating Lease Obligation
On September 10, 2021, the Company entered into a lease for approximately 11,383 square feet of space in San Diego, California. Terms of the lease include the following:
As discussed above, the lease provides for scheduled increases in base rent and scheduled rent abatements. Rent expense is charged to operations using the straight-line method over the term of the lease which results in rent expense being charged to operations at inception of the lease in excess of required lease payments. This excess (formerly classified as deferred rent) is shown as a reduction of the
operating lease right-of-use asset in the accompanying balance sheet. As the Company has already started making improvements to the facility, the rent expense will be spread commencing from September 10, 2021.
The following tables present the components of lease expense and supplemental balance sheet information related to the operating lease obligation (in thousands).
Future minimum payments under the operating lease obligation are due as follows (in thousands):