REVENUE

3 Months Ended

Sep. 30, 2023

REVENUE

REVENUE

NOTE 5. REVENUE

Disaggregation of Revenue

The following table presents the Company’s revenue for the three months ended September 30, 2023 from contracts with customers, disaggregated by Company location and sales channel:

Revenue by Geographical location:

(Dollars in thousands)	September 30, 2023
US	$	2,431
Europe		660
Total	$	3,091

Revenue by product sales channel:

(Dollars in thousands)	September 30, 2023
Direct to Consumer	$	1,841
Amazon		262
Wholesale		122
Retreat/licensing		152
Digital		714
Total	$	3,091

For the three months ended September 30, 2023, the Company had no customers who accounted for greater than 10% of total revenue. The Company primarily views its disaggregated revenue on a geographic basis.  There was no revenue for the three months ended September 30, 2022.

Contract Liabilities

The deferred revenue balances were as follows:

(Dollars in thousands)	Three Months Ended September 30, 2023
Deferred revenue, June 30, 2023	$	2,343
Decrease in reward liabilities over the period, net (a)		(12	)
Decrease in deferred revenue over the period, net (b)(c)		(242	)
Deferred revenue, September 30, 2023	$	2,088

(a)	The Company records a liability for outstanding loyalty points earned by customers. As of September 30, 2023 and June 30, 2023, the liability for outstanding loyalty was approximately $259 and $271, respectively, and is included in contract liabilities in the accompanying consolidated balance sheets.
(b)	The Company records a liability for fees collected from customers with respect to its subscription-based wellness app, retreat package sales and licensing fees which amounts are recognized when earned. As of September 30, 2023 and June 30, 2023, the liabilities for unearned revenue totaled $1,792 and $2,065, respectively, and is included in contract liabilities in the accompanying consolidated balance sheets.
(c)	As of September 30, 2023 and June 30, 2023, liabilities for unearned product sales totaled $37 and $7, respectively.

Sales Returns Reserve

The Company offers a 30-day satisfaction guarantee and sales return refunds to its customers on their first order or first subscription order. The Company records a liability for estimated sales return refunds, which is based on historical returns and is included within accrued expenses on the consolidated balance sheet.

The reserve was approximately $14 and $28 as of September 30, 2023 and June 30, 2023, respectively, and is included in other current liabilities in the accompanying consolidated balance sheets.  The Company’s sales returns reserve was comprised of the following:

(Dollars in thousands)	Three Months Ended September 30, 2023
Balance as of June 30, 2023	$	28
Charges to Costs and Expenses		15
Deductions		(29	)
Balance as of September 30, 2023	$	14