LEASES

12 Months Ended

Jun. 30, 2021

Disclosure Text Block Supplement [Abstract]

Commitments Disclosure [Text Block]

NOTE 8. LEASES

The Company has lease agreements on a continuing operations basis for office equipment that expire in fiscal year 2022. Lease expense included in continuing operations totaled $155,000 and $153,000 for the years ended June 30, 2021, and 2020, respectively.

The Company’s former subsidiary Galileo, which is classified as discontinued operations as described in Note 3, had lease agreements for office equipment and for office facilities. Lease expense included in discontinued operations totaled $74,000 for the year ended June 30, 2020.

For continuing operations, the components of lease expense included in general and administrative expense on the Consolidated Statements of Operations for the years ended June 30, 2021, and June 30, 2020, and qualitative information concerning the Company’s operating leases were as follows:

	Year Ended			Year Ended
	June 30,			June 30,
(dollars in thousands)	2021			2020
Operating lease cost	$	53		$	53
Short-term lease cost		102			100
Total lease cost	$	155		$	153
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	53		$	53
Right-of-use assets obtained in exchanged for:
Net operating lease liabilities	$	-		$	141
Weighted-average remaining lease term (in years)		0.83			1.83
Weighted-average discount rate		4.11	%		4.11	%

Maturities of lease liabilities from continuing operations as of June 30, 2021, are as follows:

(dollars in thousands)
Fiscal Year	Operating Leases
2022	$	44
Total lease payments		44
Less imputed interest		(1	)
Total	$	43

The Company is the lessor of certain areas of its owned office building under operating leases expiring in various years through fiscal year 2023. At the commencement of an operation lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Lease income included in other income on the Consolidated Statements of Operations was $91,000 and $92,000, for fiscal years 2021 and 2020, respectively. The cost of obtaining lessor contracts, which is included in other assets on the Consolidated Balance Sheets, was $4,000 and $7,000 at June 30, 2021, and June 30, 2020, respectively.

A summary analysis of annual undiscounted cash flows to be received on leases as of June 30, 2021, is as follows:

(dollars in thousands)
Fiscal Year	Operating Leases
2022	$	81
2023		34
Total lease payments	$	115

The Company may terminate the building leases with one hundred eighty days written notice if it sells the property. If the Company terminates the lease, the Company will pay the tenant a termination fee of the lesser of six months of the base monthly rent or the base monthly rent times the number of months remaining in the initial term.