Long-term Debt (Notes)

12 Months Ended

Jun. 30, 2022

Long-Term Debt, Unclassified [Abstract]

Long-term debt

Paycheck Protection Program ("PPP") loan

On April 27, 2020, the Company entered into a PPP loan for $500,000 in connection with the CARES Act related to COVID-19. The full amount of the PPP loan was classified as current as of June 30, 2021.The full amount of the PPP loan and accrued interest were forgiven on August 13, 2021 and reported as other income during the year ended June 30, 2022.

Economic Injury Disaster ("EIDL") loan

EIDL is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to the Coronavirus (COVID-19) pandemic. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments. The Company received $150,000 EIDL loan. The annual interest rate is 3.75%. The payment term is 30 years and the monthly payment is $731 from July 1, 2021. The EIDL loan is secured by the tangible and intangible personal property of the Company. The Company submitted an EIDL loan increase application on May 6, 2022, increasing the loan amount from $150,000 to $200,000. The loan modification was not approved as the funding was exhausted

The future annual principal amounts and accrued interest to be paid as of June 30, 2022 are as follows:



Year ending June 30,	EIDL Loan Payment
2023	$	3,105
2024	3,084
2025	3,202
2026	3,324
2027	3,582
Thereafter	136,348
Total	$	152,645

Other Short-term and Long-term Liabilities

The CARES Act allows employers to defer the deposit and payment of the employer share of Social Security tax that would otherwise be due on or after March 27, 2020, and before January 1, 2021. The Company has deferred approximately $82,000 of the social security tax as of June 30, 2021. 50% of the deferred employment taxes was paid before December 31, 2021. The remaining 50% is not due until December 31, 2022. Approximately $41,000 of the employer payroll tax withholding deferral was reported as short-term other liabilities as of June 30, 2022.