Subsequent Events

12 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

NOTE 12 - SUBSEQUENT EVENTS

On August 13, 2018, the Company formally entered into the Purchase Agreement with Precept, pursuant to which the Company has sold certain assets, primarily inventory and related intangibles, comprising its Wholesale Business to Precept (the “Precept Transaction”). The Purchase Agreement provides that Precept will pay an aggregate consideration of approximately $18 million in cash and royalty payments to acquire the Wholesale Business, subject to certain closing adjustments. See Note 3 for further information regarding discontinued operations.

The Company also entered into a Transition Services Agreement in connection with the sale of the Wholesale Business, under which we will provide winemaking and other services to Precept over the nine month period following closing.

Finally, a portion of the purchase price is based on Precept’s sales of the Wholesale Business brands and is paid over time pursuant to a Royalty Payment Agreement. If Precept fails to sell sufficient amounts of such brands or the market for the Wholesale Business brands deteriorates, such royalty amounts may not be realized in full or at all.

Concurrent with the execution of the Purchase Agreement the Company also terminated or modified the employment arrangements with Jason Strobbe and Jean-Marc Bussion. As a part of the respective separation agreements, the Company agreed to accelerate the vesting of certain outstanding equity awards. Both individuals were terminated effective August 31, 2018 which resulted in the acceleration of 2,085 RSUs and 48,336 stock options. There was no incremental expense incurred as a result of this modification.