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DEBT
 12 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
DEBT

NOTE 9. DEBT

 

Convertible Promissory Notes

 

At July 1, 2021 the Company had outstanding convertible promissory notes totalling approximately $1.43 million (net of original issue discount of approximately $0.16 million). The notes bore interest at 10% per annum.

 

All outstanding amounts on the notes at the time of the Company’s IPO were automatically converted to Company common stock at primarily $5.00/share and no further obligations existed. See Note 10.

 

The Company recorded a loss, during the year ended June 30, 2022, on conversion of the notes of approximately $0.28 million at time of the IPO, representing unamortized original issue discount and prepaid interest.

 

Paycheck Protection Program Loan

 

In March 2022 the Small Business Administration forgave principal and interest on a $0.62 million Paycheck Protection Program loan to the Company. The forgiveness is recorded in other income (expense) on the consolidated statements of operations.