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Leases | 12 Months Ended
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Jun. 30, 2023
Leases |
Leases | Note 13. Leases Operating leases are reflected as an operating lease right of use (“ROU”) asset included in “Other assets”, and as a ROU liability in “Accrued liabilities and other” and “Operating lease liability” on the Company’s consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. In addition to the present value of lease payments, the operating lease ROU asset would also include any lease payments made to the lessor prior to lease commencement less any lease incentives and initial direct costs incurred, if any. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term and are presented as “General and administrative expenses” in the consolidated statements of operations. Certain leases have payment terms that vary based on the usage of the underlying assets. Variable lease payments are not included in ROU assets and lease liabilities. For all operating leases, lease and non-lease components are accounted for as a single lease component. As a non-operator and having adequate liquidity, the Company has generally not entered into lease transactions. The Company’s only operating lease is for corporate office space in Houston, Texas, effective May 1, 2019 and amended November 30, 2022 and set to expire September 30, 2026. The Company has no leases that meet the criteria for classification as a finance lease or a short-term lease. The Company makes certain assumptions and judgments when evaluating a contract that meets the definition of a lease under ACS 842, Leases. As the Company’s operating leases have not provide an implicit rate, an incremental borrowing rate was calculated using information available at the commencement date of the lease. The incremental borrowing rate for a lease is the rate of interest for which the Company would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term was determined by considering any option available to extend or to early terminate the lease which the Company believed was reasonably certain to be exercised. The table below summarized the Company’s leases for the years ended June 30, 2023 and 2022 (in thousands, except years and discount rate): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended June 30,
|  | 2023 |  | 2022
Statements of Operations: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease costs | ​ | $ | 58 | ​ | ​ | $ | 52 | ​
Variable lease costs | ​ | ​ | 33 | ​ | ​ | ​ | 38 | ​
Total lease costs | ​ | $ | 91 | ​ | ​ | $ | 90 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Statements of Cash Flow: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash paid for amounts included in the measurement of lease liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash flows from operating leases | ​ | $ | 62 | ​ | ​ | $ | 62 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ROU assets obtained in exchange for new operating lease liabilities | ​ | $ | 212 | ​ | ​ | $ | — | ​
Weighted average remaining lease term in years | ​ | ​ | 3.18 | ​ | ​ | ​ | 0.42 | ​
Weighted average discount rate | ​ | ​ | 6.44 | % | ​ | ​ | 5.15 | %
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2023 | ​ | ​ | June 30, 2022
Balance Sheets: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease ROU asset (included in other assets) | ​ | $ | 183 | ​ | ​ | $ | 21
Accrued liabilities and other - current | ​ | ​ | 59 | ​ | ​ | ​ | 26
Operating lease liability - long-term | ​ | ​ | 125 | ​ | ​ | ​ | —
​ As of June 30, 2023, the future minimum lease payments associated with the Company’s non-cancellable operating lease for office space are as follows (in thousands): ​
​ | ​ | ​ | ​
Fiscal Year |  | June 30, 2023
2024 | ​ | $ | 61
2025 | ​ | ​ | 62
2026 | ​ | ​ | 64
2027 | ​ | ​ | 16
2028 | ​ | ​ | —
Thereafter | ​ | ​ | —
Total operating lease payments | ​ | ​ | 203
Less: discount to present value | ​ | ​ | (19)
Total operating lease liabilities | ​ | ​ | 184
Less: current operating lease liabilities | ​ | ​ | 59
Non current operating lease liabilities | ​ | $ | 125
​ The Company applied the following practical expedients as provided in the standards update which provide elections to not reassess:
| ● | Not to apply the recognition requirements in the lease standard to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the Company is reasonably certain to exercise).
| ● | Whether an expired or existing pre-adoption date contracts contained leases.
| ● | Lease classification of any expired or existing leases.
| ● | Initial direct costs for any expired or existing leases.
| ● | Not to separate lease components from non-lease components in a contract and accounting for the combination as a lease (reflected by asset class).

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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