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Fair Value Measurement
 6 Months Ended
Dec. 31, 2025
Fair Value Measurement [Abstract]  
Fair Value Measurement

Note 4. Fair Value Measurement

The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables set forth the fair value of the Company’s liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy:

 

December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

-

 

 

$

-

 

 

$

1,172,859

 

 

$

1,172,859

 

Accompanying warrants liability

 

 

-

 

 

 

-

 

 

 

2,712,784

 

 

 

2,712,784

 

Total liabilities measured at fair value

 

$

-

 

 

$

-

 

 

$

3,885,643

 

 

$

3,885,643

 

 

 

June 30, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

-

 

 

$

-

 

 

$

1,169,675

 

 

$

1,169,675

 

Accompanying warrants liability

 

 

-

 

 

 

-

 

 

 

3,701,492

 

 

 

3,701,492

 

Total liabilities measured at fair value

 

$

-

 

 

$

-

 

 

$

4,871,167

 

 

$

4,871,167

 

The Company has no financial assets that are measured at fair value. The liabilities measured at fair value at December 31, 2025 and June 30, 2025 are contingent consideration and the accompanying warrant liability. The value of financial assets and other financial liabilities approximate their fair value.

The accompanying warrants liability relates to the Company’s issuance of accompanying warrants in conjunction with a Private Placement in June 2024. The fair value of the accompanying warrants liability was based on valuations that required inputs that were both significant to the fair value measurement and unobservable. This approach resulted in a classification of the accompanying warrants liability as Level 3 of the fair value hierarchy. See Note 16 for additional disclosure related to contingent consideration.

The following table summarizes changes in the fair value of the contingent consideration and the accompanying warrants liability, for which each fair value was determined by Level 3 inputs:

 

Contingent
Consideration
in a Business
Combination

 

 

Freestanding
Financial
Instruments
Accompanying
Warrants
Liability

 

Balance at June 30, 2025

 

$

1,169,675

 

 

$

3,701,492

 

Change in fair value, net of foreign currency effect

 

 

3,184

 

 

 

(988,708

)

Balance at December 31, 2025

 

$

1,172,859

 

 

$

2,712,784

 

 

 

Contingent
Consideration
in a Business
Combination

 

 

Freestanding
Financial
Instruments
Accompanying
Warrants
Liability

 

Balance at June 30, 2024

 

$

587,762

 

 

$

4,657,832

 

Payment of milestone obligation to Eclipse

 

 

(175,055

)

 

 

-

 

Change in fair value, net of foreign currency effect

 

 

167,591

 

 

 

(3,847,707

)

Balance at December 31, 2024

 

$

580,298

 

 

$

810,125

 

The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between levels during the periods presented.