Note 17 - Restructuring Costs

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note 17 - Restructuring Costs

As part of the Company’s previously announced restructuring activities related to the wind down and divestiture of the Consumer Health Segment and the closure of the Grand Prairie, Texas manufacturing site (Rx Segment), the Company has incurred expenses that qualify as exit and disposal costs under U.S. GAAP. These include severance and employee benefit costs as well as other direct separation benefit costs, right of use asset impairment charges, fixed asset and other asset impairment charges, accelerated depreciation of fixed assets, contract termination costs, and inventory write-downs. Severance and employee benefit costs primarily relate to cash severance.

The expense associated with severance and employee benefits and exit and disposal activities are included in restructuring costs in the consolidated statements of operations and expense associated with inventory write-downs is recorded in cost of sales in the consolidated statements of operations. The Company does not expect to incur any additional significant restructuring costs related to the wind down and divestiture of the Consumer Health Segment and the closure of the Grand Prairie, Texas manufacturing site during fiscal 2025. As of June 30, 2024, the Company did not have any material accruals related to the wind down of the Consumer Health Segment. As of June 30, 2024, the Company had accrued $0.9 million and $0.4 million related to accrued severance and employee benefits and accrued exit and disposal activity costs, respectively, related to the closure of the Grand Prairie, Texas manufacturing facility.

A summary of restructuring costs incurred during the year ended June 30, 2024, is as follows:

	Year Ended June 30, 2024
	Severance and Employee Benefits (1)		Exit and Disposal Activities (1)		Inventory Write-Down (2)		Total
	(in thousands)
Wind down of Consumer Health Segment (3)	$	20	$	189	$	730	$	939
Closure of Grand Prairie, Texas manufacturing site (4)		1,125		1,031		—		2,156
Total	$	1,145	$	1,220	$	730	$	3,095

⁽¹⁾  Expense associated with severance and employee benefits and exit and disposal activities are included in restructuring costs in the consolidated statements of operations.

⁽²⁾  Expense associated with inventory write-downs is recorded in cost of sales in the consolidated statements of operations.

⁽³⁾  Expense associated with the wind down of the Consumer Health Segment is related to the Consumer Health Segment.

⁽⁴⁾  Expense associated with the closure of the Grand Prairie, Texas manufacturing site is related to the Rx Segment.