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LEASES

3 Months Ended

Sep. 30, 2021

Disclosure Text Block Supplement [Abstract]

Commitments Disclosure [Text Block]

NOTE 5. LEASES

The Company has lease agreements on a continuing operations basis for office equipment that expire in fiscal year 2022. Lease expense totaled $39,000 for the three months ended September 30, 2021, and 2020.

The components of lease expense included in general and administrative expense on the Consolidated Statements of Operations and qualitative information concerning the Company’s operating leases were as follows:

		Three Months Ending
		September 30,
(dollars in thousands)		2021				2020
Operating lease cost		$	13			$	13
Short-term lease cost			26				26
Total lease cost		$	39			$	39

Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases		$	13			$	13

Right-of-use assets obtained in exchanged for:
Net operating lease liabilities		$	-			$	-

Weighted-average remaining lease term (in years)			0.58				1.58
Weighted-average discount rate			4.11	%			4.11	%

Maturities of lease liabilities from continuing operations as of September 30, 2021, are as follows:

(dollars in thousands)
Fiscal Year		Operating Leases
2022 (excluding the three months ended September 30, 2021)		$	31
Total lease payments			31
Less imputed interest			(1	)
Total		$	30

The Company is the lessor of certain areas of its owned office building under operating leases expiring in various years through fiscal year 2023. At the commencement of an operation lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Lease income included in other income on the Consolidated Statements of Operations for the three months ending September 30, 2021, and 2020, was $26,000 and $23,000, respectively. The cost of obtaining lessor contracts, which is included in other assets on the Consolidated Balance Sheets, was $4,000 and $4,000 at September 30, 2021, and June 30, 2021, respectively.

A summary analysis of annual undiscounted cash flows to be received on leases as of September 30, 2021, is as follows:

(dollars in thousands)
Fiscal Year		Operating Leases
2022 (excluding the three months ended September 30, 2021)		$	57
2023			34
Total lease payments		$	91

The Company may terminate the building leases with one hundred eighty days written notice if it sells the property. If the Company terminates the lease, the Company will pay the tenant a termination fee of the lesser of six months of the base monthly rent or the base monthly rent times the number of months remaining in the initial term.