v3.26.1
Fair Value Measurements
 9 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company determines the fair value of its financial instruments in accordance with the provisions of ASC 820, Fair Value Measurement (“ASC 820”), which establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

•Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities
         
•Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability
         
•Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability.

The carrying amounts of the Company’s cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued compensation, and accrued liabilities approximate their fair values due to the short-term nature of these instruments. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2026 and June 30, 2025 and indicate the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

As of March 31, 2026
(in thousands)Level 1Level 2Level 3Total
Liabilities:
Other long-term liabilities
Warrant liability$— $— $16,836 $16,836 

As of June 30, 2025
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents
Money market funds
$322 $— $— $322 
Liabilities:
Other long-term liabilities
Warrant liability$— $— $78,657 $78,657 

Money market funds—Represents short-term, highly liquid investments with maturities of three months or less at the time of purchase. Cash equivalents include a money market account primarily invested in cash and U.S.
Government securities. These investments are generally classified as Level 1 fair value measurements, which represent unadjusted quoted market prices in active markets for identical assets or liabilities.

Warrant liability—The Company utilizes the Black-Scholes-Merton option pricing model for the liability classified warrants each reporting period, with changes in fair value recognized in the condensed consolidated statements of comprehensive income. The estimated fair value of the liability classified warrants is determined using Level 3 inputs. Inherent in an option pricing model are estimates and assumptions related to expected share-price volatility, risk-free interest rate, expected dividend yield, and expected life. These estimates and assumptions could vary significantly, which could result in material differences in the fair values assigned to the assets and liabilities.

The expected life of the Eleventh Amendment Warrants is assumed to be equivalent to their remaining contractual term based upon the vesting date. The Company estimates the expected volatility of its common stock based on the Company’s historical volatility. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the valuation date for a maturity similar to the expected remaining life of the Eleventh Amendment Warrants. The Company does not plan to pay a dividend during the Eleventh Amendment Warrant term, nor have they historically, thus the dividend rate will remain at zero.

The fair value of the Eleventh Amendment Warrants has been estimated with the following assumptions:
March 31, 2026
Tranche 1
Stock price(1)
$0.63 
Exercise price$3.00 
Expected volatility
104.73 %
Risk-free interest rate3.77 %
Expected dividend-yield
— %
Expected life
3.54 years
Fair value per warrant
$0.27 
(1) The stock price is based on the closing stock price as of March 31, 2026.

The expected life of the Senior Non-Convertible Preferred Stock Warrants is assumed to be equivalent to their remaining contractual term of ten years. The exercise prices of each tranche are based upon the terms established in the Senior Non-Convertible Preferred Stock Purchase Agreements. The Company used a ten-year term matched zero-coupon interest rate and a ten-year look back term. The Company estimates the expected volatility of its common stock based on the Company’s historical volatility. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the valuation date for a maturity similar to the expected remaining life of the Senior Non-Convertible Preferred Stock Warrants. The Company does not plan to pay a dividend during the Senior Non-Convertible Preferred Stock Warrants term, nor have they historically, thus the dividend rate will remain at zero.
The fair value of the Senior Non-Convertible Preferred Stock Warrants has been estimated with the following assumptions:

March 31, 2026
Tranche ATranche BTranche C
Stock price(1)
$0.63 $0.63 $0.63 
Exercise price$0.01 $3.92 $5.50 
Expected volatility101.71 %101.71 %101.71 %
Risk-free interest rate4.18 %4.18 %4.18 %
Expected dividend-yield— %— %— %
Expected life8.87 years8.87 years8.87 years
Fair value per warrant$0.63 $0.47 $0.45 
(1) The stock price is based on the closing stock price as of March 31, 2026.

Changes in Level 3 fair value measurements during the period ended March 31, 2026 were as follows:
(in thousands)
Warrant Liability
Balance as of June 30, 2025
$78,657 
Change in fair value(57,580)
Cancellation of Eleventh Amendment Tranche 2-4 Warrants(4,241)
Balance as of March 31, 2026
$16,836