EGAIN Corp Leases Disclosure
6. LEASES
During our fiscal year ended June 30, 2025, we leased our office facilities under non-cancelable operating leases that expire on various dates through the fiscal year 2033. We also modified two of our existing operating leases by extending the terms under such leases, which resulted in an increase in operating lease right-of-use assets and operating lease liabilities in the amount of approximately $677,000 during our fiscal year ended June 30, 2025. All of our office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term. Lease ROU assets and liabilities are recognized on the commencement date at the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments.
The following table presents information about the weighted average lease term and discount rate as follows:
| As of June 30, 2025 | As of June 30, 2024 | ||||||
Weighted average remaining lease term (in years) | 5.14 | 5.52 | ||||||
Weighted average discount rate | 8.41 | % | 7.66 | % | ||||
The following table presents information about leases on our consolidated statement of operations (in thousands):
Years ended June 30, | ||||||
2025 | 2024 | |||||
Operating lease expense | $ | 1,346 | $ | 1,345 | ||
The following table presents supplemental cash flow information about our leases (in thousands):
Years ended June 30, | ||||||
2025 | 2024 | |||||
Operating cash outflows from operating leases | $ | 1,178 | $ | 1,200 | ||
As of June 30, 2025, remaining maturities of lease liabilities are as follows (in thousands):
Fiscal Period: | |||
Fiscal 2026 | $ | 1,221 | |
Fiscal 2027 | 1,107 | ||
Fiscal 2028 | 593 | ||
Fiscal 2029 |
| 426 | |
Fiscal 2030 |
| 302 | |
Thereafter | 1,056 | ||
Total minimum lease payments | 4,705 | ||
Less: Imputed interest | (1,036) | ||
Total operating lease liabilities | 3,669 | ||
Less: Current operating lease liabilities | (1,220) | ||
Total operating lease liabilities, net of current portion | $ | 2,449 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 12, 2025 | Showing above |
| 2024 | Sep 12, 2024 | |
| 2023 | Sep 14, 2023 | |
| 2022 | Sep 13, 2022 | |
| 2021 | Sep 10, 2021 | |
| 2020 | Sep 11, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.