XML 30 R16.htm IDEA: XBRL DOCUMENT

Note 6 - Leases

12 Months Ended

Jun. 30, 2025

Note 6 - Leases

The Company’s operating leases are for its offices and these leases have original lease periods expiring between 2029 and 2030. Most leases include option provisions under which the parties may extend the lease term. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. The Company had no finance leases recorded as of June 30, 2025, and June 30, 2024.

In June 2024, the Company entered into a forward-starting operating lease agreement to lease office space in Berwyn, Pennsylvania from the owner of the office space that the Company was renting that same space under a sublease arrangement. The Company determined that it is an operating lease, and that lease commencement occurred in July 2024. The initial lease termination date is July 31, 2030, and under the lease agreement the Company has one five-year renewal option to extend the lease through July 2035. The Company has elected to utilize the practical expedient to not separate lease and non-lease components upon recognition and variable lease payments will be expensed as incurred. The Company recorded an operating lease ROU asset of $0.5 million and a lease liability of $0.5 million at lease commencement. The ROU asset and lease liability will be recorded at present value using an incremental borrowing rate of 12.3%. See Note 18 - Commitments and Contingencies for further detail.

In May 2023, the Company entered into an operating lease agreement to relocate its principal office to Denver, Colorado. The initial lease termination date is March 31, 2029, and under the lease agreement the Company has one five-year renewal option to extend the lease through March 2034. Undiscounted minimum monthly rent payments average approximately $15,500 over the initial term of the lease. Variable lease payments will be expensed as incurred.

During the fourth quarter of fiscal 2024, as part of the previously announced wind down of the Consumer Health business and the closure of the Grand Prairie, Texas manufacturing site, the Company ceased using its leased Oceanside, California warehouse and its Grand Prairie, Texas manufacturing facility. As a result, the Company wrote off the remaining related operating lease ROU assets in the fourth quarter of fiscal 2024. The lease for the Oceanside, California warehouse was set to expire on December 31, 2026, however, in March 2025, the Company terminated this lease with the landlord and recorded a net gain on lease termination of $0.1 million in general and administrative expense in the consolidated statement of operations. The lease for the Grand Prairie, Texas manufacturing site expired on December 31, 2024.

The components of lease costs for continuing operations are as follows:

	*Year Ended*
	*June 30,*
	*2025*		*2024*		*Statement of Operations Classification*
	(in thousands)
Lease cost:
Operating lease cost	$	469	$	1,986	Operating expenses
Short-term lease cost		182		94	Operating expenses
Finance lease cost:
Amortization of leased assets		—		53	Cost of goods sold
Interest on lease liabilities		—		3	Interest expense
Total lease cost	$	651	$	2,136

Supplemental balance sheet information related to leases is as follows:

	*June 30,*
	*2025*		*2024*		*Balance Sheet Classification*
	(in thousands)
Assets:
Non-current: operating leases	$	1,061	$	829	Operating lease right-of-use assets

Liabilities:
Current: operating leases	$	137	$	712	Other current liabilities
Non-current: operating leases		985		577	Other non-current liabilities
Total lease liabilities	$	1,122	$	1,289

The remaining weighted-average lease term and discount rate used are as follows:

	*June 30,*
	*2025*			*2024*
Weighted-average remaining lease term (years):
Operating lease right-of-use assets		4.3			2.7
Weighted-average discount rate:
Operating lease right-of-use assets		11.3	%		10.0	%

Supplemental cash flows information related to leases is as follows:

	*Year Ended*
	*June 30,*
	*2025*		*2024*
	(in thousands)
Cash flows classification of lease payments:
Operating cash flows from operating leases	$	754	$	1,723
Operating cash flows from finance leases	$	—	$	3
Financing cash flows from finance leases	$	—	$	85

As of June 30, 2025, the Company’s estimated future minimum lease payments were as follows:

	*Operating*
	(in thousands)
2026	$	309
2027		331
2028		386
2029		358
2030		230
Thereafter		20
Total lease payments		1,634
Less: imputed interest		(386	)
Less: tenant improvement allowance		(126	)
Lease liabilities	$	1,122