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Acquisition

3 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

3.	Acquisition

Remeasurement of Earnout Consideration from Uplogix Acquisition

Our September 12, 2022 merger agreement with Uplogix, Inc. (“Uplogix”) provided for the holders of Uplogix note agreements, and certain former Uplogix employees, with the right to receive up to an additional $4,000,000 in the aggregate (the “Earnout Amount”), payable after the closing of the acquisition based on revenue targets for the business of Uplogix as specified in the merger agreement. The Earnout Amount was based on Uplogix achieving revenue of $7,000,000 to $14,000,000 for the period beginning at the September 12, 2022 closing date and ending on September 30, 2023.

The table below presents the change in the earnout consideration liability through September 30, 2023 (in thousands):


Preliminary estimated fair value of earnout consideration	$	1,718
Remeasurement estimates during fiscal 2023		(447	)
Payments		–
Balance at June 30, 2023	$	1,271
Final remeasurement estimate		(9	)
Balance at September 30, 2023	$	1,262

The balance of this liability, as reported in the table above, is recorded in other current liabilities on the accompanying unaudited condensed consolidated balance sheets at September 30, 2023 and June 30, 2023. We expect to disburse the $1,262,000 earnout consideration liability during the quarter ending December 31, 2023.