Commitments and Contingencies

6 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Leases

The Company has entered into operating leases primarily for real estate and office copiers. These leases generally have terms that range from 1 year to 6 years. These operating leases are included in "Prepaid expenses and other current assets" and "Lease right of use and other assets" on the Company's December 31, 2019 consolidated balance sheet and represent the Company's right to use the underlying asset for the lease term. The Company's obligation to make lease payments are included in "Current portion of lease liabilities" and "Lease right of use liabilities" on the Company's December 31, 2019 consolidated balance sheet. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use assets of approximately $0.5 million and lease liabilities for operating leases of approximately $0.5 million on July 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at their commencement date based on the present value of lease payments over the lease term. As of December 31, 2019, total right-of-use assets and operating lease liabilities were approximately $1.2 million and $1.2 million, respectively. The Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company's balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term. During the six months ended December 31, 2019, the Company recognized approximately $153,000 in total lease costs, which was composed operating lease costs for right-of-use assets.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company's right-of-use assets and related lease liabilities were as follows:

	Six months ended
	December 31, 2019
Cash paid for operating lease liabilities	$	203,449
Right of use assets obtained in exchange for new operating lease obligations	$	1,301,009

	As of
	December 31, 2019
Weighted-average remaining lease term		4.0 years
Weighted-average discount rate		10.5	%

Maturities of lease liabilities as of December 31, 2019 were as follows:

2020	$	303,863
2021		348,252
2022		247,359
2023		254,199
2024		254,794
Thereafter		109,493
		1,517,960
Less imputed interest		(288,955	)
Total lease liabilities	$	1,229,005

Former Chinese Distributor - Litigation

On March 23, 2017, the Company's former distributor in China, Cicel (Beijing) Science & Technology Co., Ltd., filed a lawsuit against the Company and certain of its officers and directors in the United States District Court for the Eastern District of New York, alleging that the Company improperly terminated its contract with the former distributor.  The complaint sought various remedies, including compensatory and punitive damages, specific performance and preliminary and post judgment injunctive relief, and asserted various causes of action, including breach of contract, unfair competition, tortious interference with contract, fraudulent inducement, and conversion.  On October 7, 2017, the court granted the Company's motion to dismiss each of the tort claims asserted against us, and also granted the individual defendants' motion to dismiss all claims asserted against them.  On January 23, 2020, the Court granted Cicel's motion to amend its complaint, to include claims for alleged defamation and theft of trade secrets in addition to the breach of contract claim.  The Company believes that it has various legal and factual defenses to the allegations in the complaint and intends to defend the action vigorously.  Fact discovery in the case is ongoing, and there is no trial date currently set.