Leases

3 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

6. Leases

The Company has entered into various operating lease agreements for certain of its offices, manufacturing facilities and equipment, and finance lease agreements for certain equipment. These leases have original lease periods expiring between fiscal years 2024 and 2029. Most leases include one or more options to renew, and the exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

In May 2023, the Company entered into a lease agreement to relocate its principal office. The space was made available to the Company in September 2023 (lease commencement) with an initial term of five and a half years. The Company recorded an operating lease right-of-use (“ROU”) asset of $0.7 million and a lease liability of $0.7 million at lease commencement. The ROU asset and lease liability were recorded at present value using an incremental borrowing rate of 10.3%. The Company had elected the practical expedient to not separate lease and non-lease components.

The components of lease expenses are as follows:

	Three Months Ended
	September 30,
	2023		2022		Statement of Operations Classification
	(In thousands)
Lease cost:
Operating lease cost	$	360	$	222	Operating expenses
Short-term lease cost		23		160	Operating expenses
Finance lease cost:
Amortization of leased assets		14		18	Cost of sales
Interest on lease liabilities		1		3	Other expense, net
Total net lease cost	$	398	$	403

Supplemental balance sheet information related to leases is as follows:

	September 30,		June 30,		Balance Sheet Classification
	2023		2023
	(In thousands)
Assets:
Operating lease assets *	$	2,454	$	2,054	Operating lease right-of-use asset
Finance lease assets		—		159	Property and equipment, net
Total leased assets	$	2,454	$	2,213
Liabilities:
Current:
Operating leases	$	1,265	$	1,258	Other current liabilities
Finance leases		62		85	Current portion of debt
Non-current
Operating leases		1,208		832	Other non-current liabilities
Total lease liabilities	$	2,535	$	2,175

* Includes $0.2 million from the Consumer Health Segment as of September 30, 2023 and June 30, 2023.

Remaining lease term and discount rate used are as follows:

	September 30,			June 30,
	2023			2023
Weighted-Average Remaining Lease Term (years)
Operating lease assets		2.65			1.72
Finance lease assets		0.62			0.87
Weighted-Average Discount Rate
Operating lease assets		8.60	%		7.78	%
Finance lease assets		6.54	%		6.54	%

Supplemental cash flow information related to lease is as follows:

	Three Months Ended
	September 30,
	2023		2022
	(In thousands)
Cash flow classification of lease payments:
Operating cash flows from operating leases	$	360	$	357
Operating cash flows from finance leases	$	1	$	3
Financing cash flows from finance leases	$	23	$	27

As of September 30, 2023, the maturities of the Company’s future minimum lease payments were as follows:

	Operating		Finance
	(In thousands)
2024 (remaining 9 months)	$	1,035	$	64
2025		937		—
2026		282		—
2027		241		—
2028		199		—
Thereafter		168		—
Total lease payments		2,862		64
Less: Imputed interest		(389)		(2)
Lease liabilities	$	2,473	$	62