Debts and Other Liabilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debts and Other Liabilities | Note 9 - Debts and Other Liabilities
(1) Promissory Notes and Related Parties Debt
In 2019, the Company received $550,000 in proceeds from several creditors, including $50,000 from related parties in the form of unsecured promissory notes. Under the terms of the unsecured promissory notes, the principal was due and payable on the earlier to occur of (i) the 9-month anniversary of the first advance under each promissory note; or (ii) the completion of an initial public offering by payee (“Maturity Date”), and the promissory note shall bear interest at a monthly rate of 1% based upon the amount outstanding as of any calculation date. Interest shall be payable monthly commencing on the 15th day of each calendar month following the date funds are first advanced. The maturity dates on these promissory notes were extended to March 31, 2021. The noteholders agreed to defer the repayment of the principal balance until the completion of an initial public offering and subsequently agreed to defer the repayment until demanded or paid.
On May 31, 2026, the Company entered into an exchange agreement with Strategic Education Loan Fund, LLC (“SELF”), the holder of an unsecured promissory note issued on November 12, 2019 in the principal amount of $500,000. Under the exchange agreement, SELF exchanged the note for shares of the Company’s common stock and irrevocably waived all interest and other amounts accrued under the note through the date of the agreement. The exchange closed on May 31, 2026, at which time the note was cancelled and all of SELF’s rights under the note were extinguished. The shares were issued in reliance on the exemptions from registration provided by Section 3(a)(9) and/or Section 4(a)(2) of the Securities Act of 1933, as amended, and are subject to transfer restrictions that expire on May 31, 2027 and terminate earlier upon a change in control of the Company.
Concurrently with the exchange, the Company engaged SELF as a consultant under a four-year consulting agreement and granted SELF an option to purchase shares of common stock. See Note 14 – Share-Based Compensation Plans.
(2) Equipment Loan
In January 2023, the Company entered into an equipment loan for $30,744. The note accrues interest at a rate of 6.0% per annum and requires 48 equal monthly payments. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $2,270 and $4,498, respectively.
In August 2023, the Company entered into an equipment loan for $35,580. The note accrues interest at a rate of 10.14% per annum and requires 48 equal monthly payments. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $8,367 and $10,741, respectively.
In November 2023, the Company entered into an equipment loan for $14,610. The note accrues interest at a rate of 10.72% per annum and requires 48 equal monthly payments. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $4,590 and $5,575, respectively.
In December 2023, the Company entered into an equipment loan for $11,920. The note accrues interest at a rate of 13.53% per annum and requires 36 equal monthly payments. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $787 and $1,935, respectively.
In February 2024, the Company entered into an equipment loan for $35,612. The note accrues interest at a rate of 8% per annum and requires 36 equal monthly payments. The first payment was on April 1, 2024. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $6,541 and $9,714, respectively.
In June 2024, the Company entered into an equipment loan for $48,966. The note accrues interest at a rate of 11.16% per annum and requires 48 equal monthly payments. The first payment was on June 1, 2024. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $23,061 and $26,161, respectively.
In July 2024, the Company entered into an equipment loan for $39,189. The note accrues interest at a rate of 11.15% per annum and requires 48 equal monthly payments. The first payment was on July 1, 2024. As of September 30, 2026 and June 30, 2026, the principal balance of the promissory note was $19,295 and $21,752, respectively.
Future maturities over the remaining term of total debt for (1) to (2) are as follows:
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