Commitments and Contingencies

9 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

14.

Commitments and Contingencies

Severance Arrangements

Pursuant to the terms of the employment agreements with our Chief Executive Officer, Chief Financial Officer and other senior employees, employment may be terminated by either the respective employee or us at any time. In the event an agreement is terminated by us without cause, or in certain circumstances terminates constructively or expires, the terminated employee will receive severance compensation for a period from six to

12 months,

depending on the employee, and bonus severance. Additionally, if terminated, our Chief Executive Officer, Chief Financial Officer and certain other senior executives will be entitled to COBRA continuation coverage under the Company’s hospitalization and medical plan for the 12-month period following termination. At March 31, 2019, the maximum contingent liability under these agreements was

$1,062.

In February 2019, the Company entered into a management agreement (the “Management Agreement”), as amended, with CIDM LLC (“CIDM” or the “Asset Manager”) under which CIDM will provide consulting services and advice to the Board of Directors and the Company’s management regarding asset allocation and acquisition strategy. CIDM will also exclusively manage the Company’s portfolio of publicly traded investments in order to better position the Company to increase returns as a whole. CIDM is an affiliate of the Company’s largest stockholder, JDS1, LLC. Under the terms of the Management Agreement, in addition to a cash payment to compensate CIDM for expenses incurred in connection with providing these services, the Company will pay for these services through the issuance of cash-settled stock appreciation rights (“SARs”) in respect of Company common stock resulting in no cash payment to CIDM unless and until there are certain qualifying changes of control of the Company (which does not include any change of control related to the stock ownership of CIDM or its affiliates). CIDM and its affiliates will be subject to standard trading restrictions and standstill provisions while the Management Agreement is active. Based upon the Company’s total assets as of March 31, 2019, the Company expects to issue 79,482 SARs to CIDM during the fourth quarter of our fiscal year 2019. The contingent liability associated with this cash-settled SAR commitment is dependent on certain change of control events and is not limited.