Convertible Notes

9 Months Ended

Mar. 31, 2024

Convertible Notes [Abstract]

CONVERTIBLE NOTES

Note 11. CONVERTIBLE NOTES 

On December 19, 2021, the Company issued two senior convertible notes (the “Convertible Notes”) to two non-U.S. investors for an aggregate purchase price of $10,000,000.

The Convertible Notes carried interest of 5% annually and were convertible into shares of the Company’s common stock at a conversion price of $3.76 per share, the closing price of the common stock on December 17, 2021. The investors could convert their Convertible Notes into shares of the Company’s common stock beginning on June 19, 2022. The Convertible Notes were unsecured senior obligations of the Company which had a maturity date of December 18, 2023. The Company could repay any portion of the outstanding principal, accrued and unpaid interest, without penalty for early repayment.

On March 8, 2022, the Company amended and restated the terms of the Convertible Notes and issued the Amended and Restated Senior Convertible Notes (the “Amended and Restated Convertible Notes”) to the investors to change the principal amount of the Convertible Notes to an aggregate principal amount of $5,000,000. There other terms of the notes remained unchanged except for the waiver of interest for the $5,000,000 payment made on March 8, 2022.

For the three and nine months ended March 31, 2024, interest expenses related to the aforementioned notes amounted to nil and $21,917, respectively. For the three and nine months ended March 31, 2023, interest expenses related to the aforementioned notes amounted to $61,345 and $184,932, respectively.

On August 8, 2023, upon the unanimous consent of the board of directors of the Company, the Company prepaid the outstanding $5,000,000 balance of the 2022 Notes, along with the accrued interest of $403,424. The Company was not subject to any prepayment penalties.