v3.26.3
Fair Value Measurement
 12 Months Ended
Jun. 30, 2026
Fair Value Measurement [Abstract]  
Fair Value Measurement

Note 4. Fair Value Measurement

The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables set forth the fair value of the Company’s liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy:

 

June 30, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

-

 

 

$

-

 

 

$

1,025,301

 

 

$

1,025,301

 

Accompanying warrant liability

 

 

-

 

 

 

-

 

 

 

1,971,172

 

 

 

1,971,172

 

Total liabilities measured at fair value

 

$

-

 

 

$

-

 

 

$

2,996,473

 

 

$

2,996,473

 

 

 

 

June 30, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

-

 

 

$

-

 

 

$

1,169,675

 

 

$

1,169,675

 

Accompanying warrant liability

 

 

-

 

 

 

-

 

 

 

3,701,492

 

 

 

3,701,492

 

Total liabilities measured at fair value

 

$

-

 

 

$

-

 

 

$

4,871,167

 

 

$

4,871,167

 

The Company has no financial assets that are measured at fair value. The liabilities measured at fair value at the end of each reporting period are contingent consideration and the accompanying warrant liability. The value of financial assets and other financial liabilities approximate their fair value. The following paragraph gives information about how the fair value of the financial liability is determined.

The accompanying warrant liability relates to the Company’s issuance of an accompanying warrant in conjunction with a Private Placement in June 2024. The fair value of the accompanying warrant liability was based on a Black-Scholes model valuation that required inputs (see Note 12) that were both significant to the fair value measurement and unobservable. This approach resulted in a classification of the accompanying warrant liability as Level 3 of the fair value hierarchy.

See Note 17 for additional disclosure related to contingent consideration.

The following table summarizes changes in the fair value of contingent consideration and the accompanying warrant liability, for which each fair value was determined by Level 3 inputs:

 

Contingent
Consideration
in a Business
Combination

 

 

Freestanding
Financial
Instruments
Accompanying
Warrants
Liability

 

Balance at June 30, 2024

 

$

587,762

 

 

$

4,657,832

 

Payment of milestone obligation to Eclipse

 

 

(134,741

)

 

 

-

 

Change in fair value, net of foreign currency effect

 

 

716,654

 

 

 

(956,340

)

Balance at June 30, 2025

 

 

1,169,675

 

 

 

3,701,492

 

Change in fair value, net of foreign currency effect

 

 

(144,374

)

 

 

(1,730,320

)

Balance at June 30, 2026

 

$

1,025,301

 

 

$

1,971,172

 

The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between levels during the periods presented.