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Subsequent Event
9 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]  
Subsequent Event

In April 2021, the Company terminated several employees of our China subsidiaries, LPOIZ and LPOI, including the General Manager, the Sales Manager, and the Engineering Manager, after determining that they had engaged in malfeasance and conduct adverse to the interests of the Company, including efforts to misappropriate certain of the Company’s proprietary technology. The Company incurred various expenses associated with the investigation prior to the termination of the employees, including legal and consulting fees, totaling $194,000 during the three months ended March 31, 2021. Such expenses were recorded as “Selling, general and administrative” expenses in our Consolidated Statement of Comprehensive Income (Loss). In an effort to minimize the potential disruption of the business of our China subsidiaries, LPOIZ and LPOI, and avoid lengthy legal proceedings associated with the terminations, we entered into severance agreements with certain of the employees pursuant to which LPOIZ and LPOI agreed to pay such employees severance of approximately $470,000 in the aggregate, which will be paid out over a six-month period, provided that these employees comply with the terms set forth in the severance agreements. Additional legal fees and consulting expenses will be expensed as incurred in future periods, primarily in the three months ending June 30, 2021. Although we have taken steps to minimize the business impacts from the termination of the management employees and transition to new management personnel, we anticipate some short-term adverse impact on LPOIZ’s and LPOI’s domestic sales in China and results of operations, particularly in the three-month periods ending June 30, 2021 and September 30, 2021. We do not anticipate any material adverse impact on LPOIZ’s or LPOI’s production and supply of products to the Company for its customers.