The Company has operating leases primarily for its office facilities. The leases expire at various dates through fiscal year 2032, some of which include options to renew, with renewal terms of up to 5 years. The Company does not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain that it will exercise these renewal options at the time of the lease commencement.

The components of lease expense were as follows (in thousands):


	Fiscal Year Ended June 30,
	2026		2025		2024
Operating lease expense	$	3,313	$	3,617	$	4,220
Short-term lease expense		774		818		840
Variable lease expense (1)		274		207		565
Total lease expense	$	4,361	$	4,642	$	5,625

(1)

Variable lease expense is primarily composed of common area maintenance charges.

Supplemental information related to operating leases was as follows (in thousands, except lease term and discount rate):


	Fiscal Year Ended June 30,
	2026			2025			2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	3,221		$	3,382		$	5,114

Lease liabilities arising from obtaining right-of-use assets
Operating leases	$	404		$	2,539		$	11,026

Weighted average remaining lease term - operating leases	3.0 years			3.9 years			4.3 years
Weighted average discount rate - operating leases		7.3	%		7.3	%		6.9	%

The implicit rate within each lease is not readily determinable and therefore the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgment. The Company determined its incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and currency to align with the terms of a lease.

Maturities of operating lease liabilities as of June 30, 2026 were as follows (in thousands):


Fiscal Year Ending June 30,	Amount
2027	$	3,361
2028		3,414
2029		2,170
2030		950
2031		129
Thereafter		17
Total minimum lease payments		10,041
Less: imputed interest		(2,382	)
Present value of net minimum lease payments	$	7,659
Operating lease liabilities:
Current (included in Accrued Liabilities)	$	2,754
Noncurrent		4,905
Total	$	7,659