Leases

6 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Note 9. Leases

The Company has four leases for office and warehouse space that require monthly payments. These leases have escalating payments ranging from approximately $450 to $4,400 per month which expire through July 2022 and are recognized on a straight-line basis over the life of the lease. The Company has a lease for office equipment that requires payments of approximately $1,500 per month through December 2022. All leases are classified as operating leases which do not include renewal options. The Company currently does not have any short-term or variable lease costs. The Company applied the practical expedient to calculate the present value of the fixed payments without having to perform an allocation to lease and non-lease components. 

The Company has recognized right of use assets associated with its operating leases of approximately $122,000 and $45,000 as of December 31, 2019 and June 30, 2019, respectively, which is included in other assets on the Company’s condensed balance sheet. Operating lease liabilities were $123,000 and $45,000 as of December 31, 2019 and June 30, 2019, respectively, which are included in current maturities of long-term liabilities and other long-term liabilities on the Company’s condensed balance sheet.

As of December 31, 2019, the Company has a weighted-average lease term of 0.8 years for its operating leases, which have a weighted-average discount rate of 4.0%. Operating lease payments of $45,000 are included in operating cash flows for the six months ended December 31, 2019.

Maturities of lease liabilities, which are included in current maturities of long-term liabilities and other long-term liabilities on the Company’s condensed balance sheet, are as follows:

Fiscal years ending June 30:
2020*	$	44,000
2021		73,000
2022		9,000
2023		1,000
Total lease payments		127,000
Less: Interest		(4,000)
Present value of lease liabilities	$	123,000

 ^*Six months ending June 30, 2020