Note 6. Leases

In June 2021, the Company entered into a 5-year lease agreement (the “Greenhill Lease”) for its Australian facility located in Dulwich, South Australia. The lease expired according to its terms in May 2026.

The Company accounted for the Greenhill Lease under ASC 842, recognizing a right-of-use ("ROU") asset and a corresponding lease liability representing future rent payment obligations. The ROU asset was initially measured based on the present value of future lease payments and subsequently amortized over the lease term.

In October 2025, the Company committed to a plan to exit its Australian facility as part of a restructuring plan as approved by the Company's board of directors. The leased facility ceased being used for any business purpose and the Company did not sublease the space during the remainder of the lease term. Accordingly, under ASC 360, Property, Plant, and Equipment, and ASC 842, the carrying value of the associated right-of-use asset was evaluated for abandonment, and the remaining carrying amount of less than $0.1 million was derecognized. The lease liability of approximately $0.1 million was also derecognized.

The resulting write-off of the right-of-use asset is recorded in restructuring costs in the consolidated statements of operations and other comprehensive income (loss) for the twelve months ended June 30, 2026.

Variable lease expense for the premises primarily consisted of common area maintenance and other operating costs.