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LEASES

9 Months Ended

Mar. 31, 2022

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 $41,000 and $130,000 for the three and nine months ended March 31, 2022, and $39,000 and $116,000 for the three and nine months ended March 31, 2021, respectively.

The following table presents the components of lease expense included in general and administrative expense on the Consolidated Statements of Operations and additional qualitative information concerning the Company’s operating leases.

		Nine Months Ending								Three Months Ending
		March 31,								March 31,
(dollars in thousands)		2022				2021				2022				2021
Operating lease cost		$	40			$	40			$	13			$	13
Short-term lease cost			90				76				28				26
Total lease cost		$	130			$	116			$	41			$	39

Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases		$	40			$	40			$	13			$	13

Weighted-average remaining lease term (in years)			0.08				1.08
Weighted-average discount rate			4.11	%			4.11	%

The following table presents the maturities of lease liabilities from continuing operations as of March 31, 2022.

(dollars in thousands)
Fiscal Year		Operating Leases
2022 (excluding the nine months ended March 31, 2022)		$	4
Total lease payments			4
Less imputed interest			-
Total		$	4

The Company is the lessor of certain areas of its owned office building under operating leases expiring in various months through fiscal year 2025. At the commencement of an operating 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 and nine months ended March 31, 2022, was $29,000 and $84,000, respectively. Lease income included in other income on the Consolidated Statements of Operations for the three and nine months ended March 31, 2021, was $23,000 and $69,000, respectively. The cost of obtaining lessor contracts, which is included in other assets on the Consolidated Balance Sheets, was $10,000 and $4,000 at March 31, 2022, and June 30, 2021, respectively.

The following is a summary analysis of annual undiscounted cash flows to be received on leases as of March 31, 2022.

(dollars in thousands)
Fiscal Year		Operating Leases
2022 (excluding the nine months ended March 31, 2022)		$	19
2023			75
2024			42
2025			36
Thereafter			-
Total lease payments		$	172

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.