The Company has leases for office and warehouse space and office equipment that require monthly payments. These leases have payments ranging from $1,000 to $6,000 per month which expire through June 2028 and are recognized on a straight-line basis over the life of the lease. All leases are classified as operating leases which do not include renewal options. The Company currently does not have any variable lease costs. The Company elected 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 total right of use assets associated with its operating leases of $131,000 and $198,000 as of June 30, 2026, and June 30, 2025, respectively, which is included in other assets on the Company’s balance sheet. Operating lease liabilities were $133,000 and $198,000 as of June 30, 2026, and June 30, 2025, respectively, which are included in other accrued liabilities and other long-term liabilities on the Company’s balance sheet.

As of June 30, 2026, and June 30, 2025, the Company had a weighted-average lease term of 2.0 and 2.9 years, respectively, for its operating leases, which had a weighted-average discount rate of 6.5% and 6.4%, respectively. Operating lease payments of $76,000  and $81,000 are included in operating cash flows in fiscal 2026 and fiscal 2025, respectively.

Maturities of lease liabilities, which are included in other accrued liabilities and other long-term liabilities on the Balance Sheet, are as follows: