Leases

9 Months Ended

Mar. 31, 2025

8. Leases

The Company has entered into two operating leases for office spaces as of March 31, 2025. On February 1, 2025, the Company entered into a new lease which has an initial expiration date in 2026. On February 24, 2025, the Company entered into a

n a

mendment to an existing lease to extend the lease expiration date to 2027 and modify the remaining lease payments. The lease modification was not accounted for as a separate contract and instead the existing operating lease right-of-use asset and liability were remeasured during the period under agreements that expire in 2026 and 2027. Both leases contain options to extend for additional renewal periods. The leases require 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, 2025:


(US$’000)	Operating lease right- of- use assets
Balance at July 1, 2024	$	270
Re-measurement during the period		666
Initial measurement at February 1, 2025		254
Amortization of right of use asset		(226	)

Operating lease right-of-use asset at March 31, 2025	$	964


(US$’000)	Operating lease liabilities
Balance at July 1, 2024	$	284
Re-measurement during the period		666
Initial measurement at February 1, 2025		255
Principal payments on operating lease liabilities		(246	)

Operating lease liabilities at March 31, 2025		959
Less: non-current portion		(613	)

Current portion at March 31, 2025	$	346

As of March 31, 2025, the Company’s operating leases have a

weighted average

lease term of 2.67 years and a

weighted average

discount rate of 6%.

The leases’ options to extend are not included within the remaining lease term as the Company is currently not reasonably certain to exercise such options. The maturities of the operating lease liabilities are as follows:


(US$’000)	March 31, 2025
2025	$	267
2026		435
2027		331

Total operating lease payments		1,033

Less imputed interest		(75	)

Present value of operating lease liabilities	$	959

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. The incremental borrowing rate was determined based on quoted rates by the Company’s business banker for collateralized debt with terms similar to the lease agreements. Rent

expense was $0.1 million and $0.2 million for the three and nine months ended March 31, 2025, respectively, and $0.1 million and $0.2 million

for the same periods in 2024, and is reported within general and administrative on the consolidated statements of operations and comprehensive loss.