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Note 6 - Leases

3 Months Ended

Sep. 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 has no finance leases.

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 was 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 was recorded at present value using an incremental borrowing rate of 12.3%.

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 and variable lease payments are expensed as incurred.

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

	*Three Months Ended*
	*September 30,*
	*2025*		*2024*		*Statement of Operations Classification*
	(in thousands)
Lease cost:
Operating lease cost	$	84	$	122	Operating expenses
Short-term lease cost		3		91	Operating expenses
Total lease cost	$	87	$	213

Supplemental balance sheet information related to leases is as follows:

	*September 30,*		*June 30,*
	*2025*		*2025*		*Balance Sheet Classification*
	(in thousands)
Assets:
Non-current: operating leases	$	1,010	$	1,061	Operating lease right-of-use assets

Liabilities:
Current: operating leases	$	202	$	137	Other current liabilities
Non-current: operating leases		1,023		985	Other non-current liabilities
Total lease liabilities	$	1,225	$	1,122

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

	*September 30,*			*June 30,*
	*2025*			*2025*
Weighted-average remaining lease term (years):
Operating lease right-of-use assets		4.2			4.3
Weighted-average discount rate:
Operating lease right-of-use assets		11.4	%		11.3	%

For the three months ended September 30, 2025, the Company had operating net cash provided by operating leases of $0.1 million, primarily from the receipt of cash related to a tenant improvement allowance, partially offset by rent payments. For the three months ended September 30, 2024, the Company had operating net cash used by operating leases of $0.2 million, primarily due to rent payments.

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

	*Estimated Future Minimum Lease Payments*
	(in thousands)
2026 (remaining 9 months)	$	252
2027		331
2028		386
2029		358
2030		230
2031		19
Total lease payments		1,576
Less: imputed interest		(351	)
Total lease liabilities	$	1,225