Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTAL FINANCIAL INFORMATION

v3.21.2
SUPPLEMENTAL FINANCIAL INFORMATION
12 Months Ended
Jun. 30, 2021
SUPPLEMENTAL FINANCIAL INFORMATION  
SUPPLEMENTAL FINANCIAL INFORMATION

NOTE 12 - SUPPLEMENTAL FINANCIAL INFORMATION

Property and Equipment

Property and equipment consist of the following as of June 30, 2021 and 2020 (in thousands):

 

 

 

 

 

 

 

 

    

2021

    

2020

Office furniture and equipment

 

$

56

 

$

47

Less accumulated depreciation

 

 

(27)

 

 

(14)

 

 

 

 

 

 

 

Total

 

$

29

 

$

33

 

Depreciation expense related to property and equipment amounted to approximately $13,000 and $11,000 for the fiscal years ended June 30, 2021 and 2020, respectively.

Employee Termination Benefits

In March 2021, the Company entered into a severance agreement with an officer of the Company that provides for aggregate payments of $0.2 million paid in monthly installments from March 2021 through September 2021. The severance agreement also resulted in the modification of certain stock options that were permitted to continue vesting through September 2021, whereby an aggregate of 46,250 stock options exercisable at a weighted average price of $18.17 will now expire in December 2021. Absent the modification, stock options for an aggregate of 38,750 vested shares would have expired in June 2021 and stock options for 7,500 never would have vested. The Company accounted for the modification of the original awards, whereby compensation cost was remeasured on the date of the modification that resulted in an increase in fair value of the modified awards for $0.1 million. Accordingly, an aggregate charge of $0.3 million related to severance costs and the modification of stock options is included in compensation expense under general and administrative expenses in the accompanying consolidated statements of operations for the fiscal year ended June 30, 2021.

For the fiscal year ended June 30, 2021, activity affecting the accrued liability for severance benefits is summarized as follows (in thousands):

 

 

 

 

Accrued severance, beginning of period

    

$

 —

Severance expense incurred

 

 

201

Cash payments

 

 

(124)

 

 

 

 

Accrued severance, end of period

 

$

77

 

The liability for accrued severance costs is included in accrued compensation and benefits in the accompanying consolidated balance sheet as of June 30, 2021.