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Note 9. Accrued Payroll and Benefits Expense
9 Months Ended
Mar. 31, 2018
Note 9. Accrued Payroll And Benefits Expense  
Note 9. Accrued Payroll and Benefits Expense

As of March 31, 2018 and June 30, 2017, accrued payroll and benefits expense was $2,019,218 and $1,472,773, respectively. Included in the balance as of March 31, 2018 and 2017 was $577,788 and $200,000, respectively, of accrued severance expense for Company personnel including one executive officer. As of March 31, 2018 and June 30, 2017, long-term severance accrual included in other liabilities was $262,020 and $0, respectively. Payments will be made in cash over a two year period. The Company recognized $839,807 in severance expense during the three and nine months ended March 31, 2018 related to the termination of Company personnel including one executive officer. The Company recognized $2,304 in severance expense during the three and nine months ended March 31, 2017. Severance expense is included in selling, general, and administrative expenses.

 

On May 7, 2018, the Company implemented a reduction of its workforce by 10 employees to better align its resources with the needs of its business and focus on improving profitability. The Company expects that it will incur severance expense of approximately $140,000, which will be recorded during the fourth fiscal quarter of 2018.