Note 16 - Warrants

9 Months Ended

Mar. 31, 2026

Warrants or Rights Disclosure [Text Block]

Note 16 - Warrants

The Company has engaged in several different types of equity financings throughout its history, some of which have resulted in the Company issuing warrants and prefunded warrants. Equity classified warrants are valued using a Black-Scholes option pricing model at issuance and are not remeasured. Liability classified warrants are carried at fair value using either the Black-Scholes option pricing model or the Monte Carlo simulation model. Outstanding warrants that are classified as derivative warrant liabilities in the unaudited consolidated balance sheets are marked to market at each reporting period, with the change in fair value recorded as a gain or loss on remeasurement and reported as a component of cash flows from operations. (see Note 12 - Fair Value Measurements for further detail).

As previously disclosed, the Company determined that public equity offerings completed in June 2023 and June 2025 whereby the Company issued certain warrants and prefunded warrants (collectively, the “June 2023 and June 2025 Warrants”) to certain institutional investors (the “Investors”) included certain stockholder approval language relating to beneficial ownership blockers and Nasdaq Capital Market LLC ownership blockers (the “Blockers”) creating ambiguity that required the Company to classify the June 2023 and June 2025 Warrants as liabilities rather than equity in its financial statements based on applicable authoritative guidance in FASB ASC Topic 480, Distinguishing Liabilities from Equity and ASC Topic 815, Derivatives and Hedging. The Company and the Investors agreed to make changes to the Blockers to address the unintended accounting treatment in order to provide for equity classification going forward and agreed to amend the June 2023 and June 2025 Warrants.

On March 31, 2026, the Company and the Investors, as applicable, entered into (i) an Amended and Restated June 2023 Tranche A Warrant (“Amended 2023 Tranche A Warrant”), (ii) an Amended and Restated June 2023 Prefunded Warrant (“Amended 2023 Prefunded Warrant”) and (iii) an Amended and Restated June 2025 Prefunded Warrant (“Amended 2025 Prefunded Warrant”), pursuant to which the Company canceled the previously issued June 2023 and June 2025 Warrants and issued to the Investors, as applicable, an Amended 2023 Tranche A Warrant, an Amended 2023 Prefunded Warrant and an Amended 2025 Prefunded Warrant, with revised Blockers. Under the Blockers that were included in the June 2023 and June 2025 Warrants prior to their amendment on March 31, 2026, it was unclear whether the Company’s stockholders could vote to amend or change the Blockers. The June 2023 and June 2025 Warrants were amended to make clear that a vote of the Company’s stockholders could not amend or change the Blockers, which resulted in the Company concluding that after the amendments they now met the requirements for equity classifications. Accordingly, the related derivative warrant liabilities of $26.4 million was reclassified to stockholders’ equity on March 31, 2026.

The number of warrants and prefunded warrants outstanding as of March 31, 2026, is as follows:

					*Remaining*
	*Number*		*Exercise*		*Contractual*
Description	*Outstanding*		*Price*		Life in Years ⁽⁵⁾		*Type*	*Classification*
January 2022 Warrants ⁽¹⁾		122,092	$	8.60		0.8	Warrant	Liability
March 2022 Warrants ⁽¹⁾		333,300	$	26.00		1.4	Warrant	Liability
August 2022 Warrants ⁽¹⁾		1,191,811	$	2.32		1.6	Warrant	Liability
June 2023 Tranche A Warrants ⁽²⁾		543,478	$	1.59		2.2	Warrant	Liability
Amended 2023 Tranche A Warrants ⁽²⁾		1,630,434	$	1.59		2.2	Warrant	Equity
Amended 2023 Prefunded Warrants ⁽³⁾		2,060,651	$	0.0001		N/A	Prefunded Warrant	Equity
Amended 2025 Prefunded Warrants ⁽⁴⁾		6,748,332	$	0.0001		N/A	Prefunded Warrant	Equity
Total outstanding		12,630,098

⁽¹⁾	Each of these warrants is exercisable at any time for one share of the Company’s common stock on a one-for-one basis under the terms of the agreements between the Company and the investors.

⁽²⁾

In June 2023, the Company issued these tranche A warrants to purchase 2,173,912 shares of common stock (the “June 2023 Tranche A Warrants”), which may be exercised on a one-for-one basis at any time subject to certain limitations as defined in the agreements between the Company and the investors, for either shares of common stock at an exercise price of $1.59 per share or for prefunded warrants at an exercise price of $1.5899 per prefunded warrant to purchase common stock at a future exercise price of $0.0001 per share. The June 2023 Tranche A Warrants will expire upon the earlier of June 2028 or 30 days following the closing price of the Company’s common stock equaling 200% of the exercise price ($3.18 per share) for at least 40 consecutive trading days. As discussed above, on March 31, 2026, a total of 1,630,434 of the June 2023 Tranche A Warrants were canceled and issued to the Investors, as applicable, as Amended 2023 Tranche A Warrants, which resulted in their reclassification from liability classified to equity classified. A total of 543,478 of the June 2023 Tranche A Warrants were not amended and thus remained liability classified.

⁽³⁾

As discussed above, on March 31, 2026, a total of 2,060,651 prefunded warrants related to the Company’s public equity offering completed in June 2023 were canceled and issued to the Investors, as applicable, as Amended 2023 Prefunded Warrants, which resulted in their reclassification from liability classified to equity classified. Each of these Amended 2023 Prefunded Warrants is exercisable at any time for one share of the Company’s common stock on a one-for-one basis under the terms of the agreements between the Company and the Investors.

⁽⁴⁾

In June 2025, the Company raised gross proceeds of $16.6 million from the issuance of the June 2025 Common Stock and the June 2025 Prefunded Warrants. The June 2025 Prefunded Warrants had a fair value of approximately $12.3 million at issuance and were originally classified as derivative warrant liabilities. There was $1.3 million of issuance costs allocated to the June 2025 Prefunded Warrants. The June 2025 Prefunded Warrants were able to be exercised on a one-for-one basis at any time subject to certain limitations as defined in the agreements between the Company and the Investors. During the first half of fiscal 2026 a total of 1,485,000 of the June 2025 Prefunded Warrants were exercised to 1,485,000 shares of common stock. See Note 12 - Fair Value Measurements and Note 14 - Stockholders’ Equity for further detail. As discussed above, on March 31, 2026, all of the remaining June 2025 Prefunded Warrants were canceled and issued to the Investors, as applicable, as Amended 2023 Prefunded Warrants, which resulted in their reclassification from liability classified to equity classified. Each of the June 2025 Prefunded Warrants is exercisable at any time for one share of the Company’s common stock on a one-for-one basis under the terms of the agreements between the Company and the Investors.

⁽⁵⁾	All of the Company’s prefunded warrants do not have an expiration date.

A summary of warrant activity, excluding prefunded warrants, during the nine months ended March 31, 2026, is as follows:

						*Weighted-*
						*Average*
				*Weighted-*		*Remaining*
	*Number of*			*Average*		*Contractual*
	*Warrants*			*Exercise Price*		*Life in Years*
Outstanding June 30, 2025 ⁽¹⁾		3,836,686		$	4.76		2.6
Equity classified warrants expired		(15,571	)		N/A		N/A
Outstanding March 31, 2026 ⁽²⁾		3,821,115		$	4.17		1.8

⁽¹⁾	The number of warrants, excluding prefunded warrants, outstanding as of June 30, 2025, is comprised of 3,821,115 liability classified warrants and 15,571 equity classified warrants.

⁽²⁾	The number of warrants, excluding prefunded warrants, outstanding as of March 31, 2026, is comprised of 2,190,681 liability classified warrants and 1,630,434 equity classified warrants.

As discussed above, after certain amendments were made to the Company’s prefunded warrants, all of the Company’s prefunded warrants were reclassified from liability classified to equity classified on March 31, 2026. Please see Note 17 - Earnings Per Share for information about the treatment of prefunded warrants in the calculation of earnings per share. A summary of prefunded warrant activity during the nine months ended March 31, 2026, is as follows:

	*Number of*			*Weighted-*
	*Prefunded*			*Average*
	*Warrants*			*Exercise Price*
Outstanding June 30, 2025		10,293,983		$	0.0001
Prefunded warrants exercised ⁽¹⁾		(1,485,000	)	$	0.0001
Outstanding March 31, 2026		8,808,983		$	0.0001

⁽¹⁾	During the first half of fiscal 2025, a total of 1,485,000 of the June 2025 Prefunded Warrants were exercised to 1,485,000 shares of common stock. See Note 12 - Fair Value Measurements for further detail.