0001193125-21-160473 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Mar. 31, 2021	May 03, 2021
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	AVITA MEDICAL, INC.
Entity Central Index Key	0001762303
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Security Exchange Name	NASDAQ
Trading Symbol	RCEL
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Entity Interactive Data Current	Yes
Entity Address, State or Province	CA
Entity Incorporation, State or Country Code	DE
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		24,842,883

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
ASSETS
Cash	$ 114,879	$ 73,639
Accounts receivable, net	2,230	2,076
BARDA receivables	3,250	356
Prepaids and other current assets	1,357	990
Restricted cash	201	201
Inventory	1,794	1,125
Total current assets	123,711	78,387
Plant and equipment, net	1,643	1,363
Operating lease right-of-use assets	1,639	2,347
Intangible assets, net	463	364
Other long-term assets	631	1
Total assets	128,087	82,462
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	3,638	4,333
Accrued wages and fringe benefits	2,472	2,816
Other current liabilities	956	560
Total current liabilities	7,066	7,709
Contract liabilities	999	435
Operating lease liabilities, long term	1,060	1,917
Other long term liabilities	19	0
Total liabilities	9,144	10,061
Contingencies (Note 10)
Shareholders' Equity:
Common stock, $0.0001 par value per share, 200,000,000 shares authorized, 24,842,883 and 21,467,912 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively	3	3
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding at March 31, 2021 and June 30, 2020
Additional paid-in capital	327,447	259,165
Accumulated other comprehensive income	8,271	8,146
Accumulated deficit	(216,778)	(194,913)
Total shareholders' equity	118,943	72,401
Total liabilities and shareholders' equity	$ 128,087	$ 82,462

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Jun. 30, 2020
Statement of Financial Position [Abstract]
Common stock par value	$ 0.0001	$ 0.0001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	24,842,883	21,467,912
Common stock shares outstanding	24,842,883	21,467,912
Preferred stock par value	$ 0.0001	$ 0.0001
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0

Consolidated Statements of Operations - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Mar. 31, 2021

Mar. 31, 2020

Income Statement [Abstract]

Revenues

$ 8,765

$ 3,877

$ 18,928

$ 10,386

Cost of sales

(2,146)

(634)

(3,896)

(2,099)

Gross profit

6,619

3,243

15,032

8,287

BARDA income

570

1,008

1,615

3,445

Operating expenses:

Sales and marketing expenses

^[1]

(3,649)

(4,375)

(10,514)

(11,446)

General and administrative expenses

^[1]

(5,422)

(12,787)

(17,125)

(23,316)

Research and development expenses

^[1]

(4,109)

(2,495)

(10,844)

(6,626)

Total operating expenses

(13,180)

(19,657)

(38,483)

(41,388)

Operating loss

(5,991)

(15,406)

(21,836)

(29,656)

Interest expense

(3)

(5)

(13)

(25)

Other income

363

565

Loss before income taxes

(5,987)

(15,048)

(21,834)

(29,116)

Provision for income taxes

(10)

(31)

Net loss

$ (5,997)

$ (15,048)

$ (21,865)

$ (29,116)

Net loss per common share:

Basic

$ (0.26)

$ (0.71)

$ (1.00)

$ (1.46)

Diluted

$ (0.26)

$ (0.71)

$ (1.00)

$ (1.46)

Weighted-average common shares:

Basic

22,734,335

21,215,246

21,948,132

19,932,947

Diluted

22,734,335

21,215,246

21,948,132

19,932,947

[1]	Refer to Note 2 for information about a reclassification of share-based compensation expense

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,997)	$ (15,048)	$ (21,865)	$ (29,116)
Other comprehensive income gain/(loss):
Foreign currency translation gain/(loss)	(18)	(154)	125	(110)
Comprehensive loss	$ (6,015)	$ (15,202)	$ (21,740)	$ (29,226)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning Balance at Jun. 30, 2019	$ 20,832	$ 3	$ 165,473	$ 8,184	$ (152,828)
Beginning balance, shares at Jun. 30, 2019		18,712,996
Net loss	(29,116)				(29,116)
Issuance of common stock under direct placement	81,702		81,702
Issuance of common stock under direct placement, shares		2,033,898
Issuance costs associated with direct placement	(5,077)		(5,077)
Share-based compensation	12,623		12,623
Exercise of stock options	317		317
Exercise of stock options, shares		63,075
Vesting of restricted stock units		$ 0
Vesting of restricted stock units, shares		498,120
Issuance of common stock to director in lieu of directors fees	107		107
Issuance of common stock to director in lieu of directors fees, shares		15,853
Beginning balance adjustment related ot the adoption of ASC 842	(55)				(55)
Translation gain	(110)			(110)
Ending Balance at Mar. 31, 2020	81,223	$ 3	255,145	8,074	(181,999)
Ending Balance, shares at Mar. 31, 2020		21,323,942
Beginning Balance at Dec. 31, 2019	87,308	$ 3	246,028	8,228	(166,951)
Beginning balance, shares at Dec. 31, 2019		21,174,743
Net loss	(15,048)				(15,048)
Share-based compensation	9,048		9,048
Exercise of stock options	69		69
Exercise of stock options, shares		12,190
Vesting of restricted stock units		$ 0
Vesting of restricted stock units, shares		137,009
Translation gain	(154)			(154)
Ending Balance at Mar. 31, 2020	81,223	$ 3	255,145	8,074	(181,999)
Ending Balance, shares at Mar. 31, 2020		21,323,942
Beginning Balance at Jun. 30, 2020	72,401	$ 3	259,165	8,146	(194,913)
Beginning balance, shares at Jun. 30, 2020		21,467,912
Net loss	(21,865)				(21,865)
Issuance of common stock under direct placement	69,106		69,106
Issuance of common stock under direct placement, shares		3,214,250
Issuance costs associated with direct placement	(5,109)		(5,109)
Share-based compensation	4,253		4,253
Exercise of stock options	$ 32		32
Exercise of stock options, shares	8,884	8,884
Vesting of restricted stock units, shares		151,837
Translation gain	$ 125			125
Ending Balance at Mar. 31, 2021	118,943	$ 3	327,447	8,271	(216,778)
Ending Balance, shares at Mar. 31, 2021		24,842,883
Beginning Balance at Dec. 31, 2020	59,597	$ 3	262,086	8,289	(210,781)
Beginning balance, shares at Dec. 31, 2020		21,625,058
Net loss	(5,997)				(5,997)
Issuance of common stock under direct placement	69,106		69,106
Issuance of common stock under direct placement, shares		3,214,250
Issuance costs associated with direct placement	(5,109)		(5,109)
Share-based compensation	1,333		1,333
Exercise of stock options	31		31
Exercise of stock options, shares		3,575
Translation gain	(18)			(18)
Ending Balance at Mar. 31, 2021	$ 118,943	$ 3	$ 327,447	$ 8,271	$ (216,778)
Ending Balance, shares at Mar. 31, 2021		24,842,883

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flow from operating activities:
Net loss	$ (21,865)	$ (29,116)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	540	255
Share based compensation	4,253	12,623
Non-cash lease expense	432	373
Loss on fixed assset disposal		218
Remeasurement and foreign currency transaction loss	237	6
Excess and obsolete inventory related charges	362	1
BARDA deferred costs	198
Contract cost amortization	50
Provision (benefit) for doubtful accounts	(8)	38
Issuance of common stock to directors in lieu of directors' fees		107
Changes in operating assets and liabilities:
Trade and other receivables	(144)	(660)
BARDA receivables	(2,894)	(381)
Prepaids and other current assets	(367)	(875)
Inventory	(1,027)	(82)
Other long-term assets	(680)	40
Accounts payable and accrued expenses	(895)	275
Accrued wages and fringe benefits	(356)	82
Other current liabilities	79	623
Contract liabilities	564
Operating lease liability	(429)	(352)
Other long-term liabilities		(4)
Net cash used in operations	(21,950)	(16,829)
Cash flows from investing activities:
Cash paid for plant and equipment	(775)	(464)
Cash paid for patent filing fees	(198)	(183)
Net cash used in investing activities	(973)	(647)
Cash flow from financing activities:
Proceeds from direct placement of common stock	69,106	81,702
Issuance cost associated with direct placement	(5,109)	(5,077)
Principal repayment of finance lease	(11)	(37)
Proceeds from exercise of stock options	32	317
Net cash provided by financing activities	64,018	76,905
Effect of foreign exchange rate on cash and restricted cash	145	(42)
Net increase (decrease) in cash and restricted cash	41,240	59,387
Cash and restricted cash at beginning of the period	73,840	20,374
Cash and restricted cash end of the period	115,080	79,761
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes	42	0
Cash paid for interest	3	12
Plant and equipment purchases not yet paid	$ 50	$ 5

The Company

9 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company

1. The Company

Nature of the Business

The AVITA group of companies (comprising AVITA Medical, Inc. (“

AVITA

” or the “

Company

”) and its subsidiaries, including AVITA Medical Pty Limited, previously known as AVITA Medical Limited, (“

AVITA Medical

”)) (collectively, “

AVITA Group

” or “

”, “

”, or “

our

”) is a commercial-stage regenerative tissue company focused on the treatment of burns, trauma and other acute injuries, together with skin defects like vitiligo. The Company’s lead product is the RECELL

System, a device that enables healthcare professionals to produce a suspension of

Spray-On

Skin

™

Cells using a small sample of the patient’s own skin. In September 2018, the United States Food & Drug Administration (“

FDA

”) granted premarket approval (“

PMA

”) to the RECELL System for use in the treatment of acute thermal burns in patients eighteen years and older. Following receipt of our PMA, we commenced commercializing the RECELL System in January 2019 in the United States. In addition, the FDA has granted the Company three Investigational Device Exemptions (“

IDEs

”) studies which have enabled the Company to initiate pivotal clinical investigational studies to seek expanded FDA (supplementary) PMA of the RECELL System for each of soft tissue reconstruction, pediatric scalds, and vitiligo. Enrollment of those clinical studies is ongoing and, if successful, those studies would enable the Company to commence commercializing the RECELL System in the United States in each of those indications.

In March 2020, the World Health Organization declared the outbreak of a novel strain of the coronavirus (“

COVID-19

”) a pandemic.

COVID-19

is having, and will likely continue to have, an adverse effect on the Company’s business, results of operations, financial condition, and cash flows, and its future impacts remain highly uncertain and unpredictable. The Company has considered the disruptions caused by

COVID-19,

including lower than forecasted sales, delays to the speed of enrollment in the Company’s clinical trials that may, if successful, support commercial approval and new revenues in additional markets, and macroeconomic factors, that may impact its estimates. The Company has assessed the potential impact of

COVID-19

on certain accounting matters including, but not limited to, the allowance for doubtful accounts, inventory reserves and return reserves, and impairment considerations for long-lived assets and intangibles, as of March 31, 2021 and through the date of this report. During the three months and nine months ended March 31, 2021,

COVID-19

had minor effects on the Company’s operations and financial position and cash flows. With respect to future operating results, it is not possible at this time to predict, with any degree of precision, the effects of

COVID-19.

Consequently, actual results for accounting estimates and assumptions, particularly those relating to the recoverability of certain intangible assets and estimates of expected credit losses on accounts receivable could differ from these estimates.

Recent Developments

In July 2020, Biomedical Advanced Research and Development Authority (“BARDA”) initiated the procurement of the RECELL system valued at

$7.6

million as part of the U.S. Department of Health and Human Services emergency response preparedness. As part of the contract the Company will deliver

5,614

RECELL system units to BARDA. Units procured by BARDA as part of the emergency response preparedness are maintained and stored by the Company under a vendor-managed inventory arrangement (“VMI”) during the term of the contract. In addition to procurement of the product, BARDA has expanded its awarded contract to provide supplemental funding of

$1.6

million to support the emergency deployment of the RECELL system for use in mass casualty or other emergency situations. In February 2021, BARDA accepted the first delivery of the RECELL system. As of March 31, 2021 a total of

3,020

RECELL system units have been delivered and accepted by BARDA

Effective December 2, 2020 (United States time), AVITA Therapeutics, Inc., changed its corporate name to AVITA Medical, Inc. after successfully filing a Certificate of Amendment of Certificate of Incorporation with the Secretary of State of Delaware. The Company’s change of name was registered with the Australian Securities and Investments Commission effective as from January 6, 2021. The Company’s common stock continues to trade on The NASDAQ Stock Exchange LLC (“NASDAQ”) under the symbol “RCEL” and its CHESS Depositary Interests (“CDIs”) continue to trade on the Australian Securities Exchange (“ASX”) under the ticker symbol, “AVH”.

Redomiciliation

On June 29, 2020, the Company, a newly formed Delaware corporation, acquired all of the issued share capital of AVITA Medical, a then public company incorporated under the laws of the Commonwealth of Australia and former parent company of the AVITA Group. The acquisition was completed pursuant to a scheme of arrangement under Australian law and was approved by the Federal Court of Australia on June 22, 2020, and by shareholders of AVITA Medical on June 15, 2020 (the “

Redomiciliation

”). Under the Redomiciliation, all of the issued and outstanding ordinary shares of AVITA Medical, including those ordinary shares held in the form of American Depositary Shares (“

ADSs

”), were exchanged for newly issued shares of common stock of the AVITA Medical, Inc. or CHESS Depositary Interests (“

CDIs

”). This exchange was conducted on the basis of one share of common stock of AVITA Medical, Inc. for every 100 ordinary shares of AVITA Medical, effecting an ‘implicit consolidation’ or ‘reverse split’. The holders of ordinary shares of AVITA Medical received one CDI for every 20 ordinary shares held in AVITA Medical, and the holders of AVITA Medical

ADSs

(each of which previously represented 20 ordinary shares in AVITA Medical) received one share of common stock in AVITA Medical, Inc. for every five ADSs held. The common stock of AVITA Medical, Inc. began trading on The NASDAQ Stock Exchange LLC (“

NASDAQ

”) upon market open on July 1, 2020 under the same ticker code, “RCEL” as AVITA Medical’s ADSs were traded under prior to the Redomiciliation.

As part of the exchange of shares under the Redomiciliation, a reverse split was also simultaneously implemented such that the number of shares of common stock on issue in AVITA Medical, Inc. (as set out in the consolidated financial statements) is less than the number of ordinary shares in AVITA Medical that was previously set out in the consolidated financial statements of AVITA Medical.

The Redomiciliation resulted in the domicile of the AVITA Group moving from Australia to the United States of America, with AVITA Medical, Inc. becoming the ultimate parent company of the AVITA Group. In addition, the existing listing of AVITA Medical ordinary shares on the Australian Securities Exchange (“

ASX

”) (as its primary listing) and AVITA Medical ADSs on NASDAQ (as its secondary listing) was inverted and replaced with a new listing of AVITA Medical, Inc. common stock on NASDAQ (as its primary listing) under the existing ticker symbol, “RCEL” and AVITA Medical, Inc. CDIs on the ASX (as its secondary listing) under the existing ticker symbol, AVH. Five CDIs traded on ASX are equivalent to one share of common stock traded on NASDAQ.

As a result of the Redomiciliation, the reporting currency of the AVITA Group has changed from the Australian dollar to the U.S. dollar. In accordance with SEC regulation,

S-X

Rule 320 (e), the impact of the change in the reporting currency was included in a component of other comprehensive income (loss).

Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“

GAAP

”) for interim financial information and with the instructions to Form

10-Q

and Article 10 of Regulation

S-X

of the Securities and Exchange Commission (the “

SEC

”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this quarterly report on Form

10-Q

should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form

10-K

for the fiscal year ended June 30, 2020 filed with the SEC on August 27, 2020 (the “

Annual Report

”).

There have been no changes to the Company’s significant accounting policies as described in the annual report on Form

10-K

that have had a material impact on the Company’s consolidated financial statements, except for the revenue recognition for the BARDA contract for the option to procure the RECELL system as described below. See the summary of the Company’s significant accounting policies set forth in the notes to its consolidated financial statements included in the Annual Report.

Reclassification

Certain amounts in the prior period Consolidated Statement of Operations have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported operating expense, loss before taxes, net loss and earnings per share.

After the issuance of the consolidated financial statements for the year ended June 30, 2020, and the quarter ended September 30, 2020, the Company concluded that the presentation of share-based compensation should be reclassified to the functional expense line items consistent with cash compensation in accordance with SAB Topic 14. The Company has determined that such change in presentation of prior period amounts in the Statement of Operations is not material to the consolidated financial statements.

The Company reclassified share-based compensation expense of $9.0 million for the three months ended March 31, 2020 to sales and marketing expense of $213,000, general and administrative expense of $8.6 million and research and development expenses of

$193,000.

For the nine months ended March 31, 2020, the Company reclassified share-based compensation of

$12.6 million to sales and marketing expense of $584,000, general and administrative expense of $11.5 million and research and development expenses of $497,000.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. As a result of the Redomiciliation, the parent company of the AVITA Group changed from AVITA Medical to AVITA Medical, Inc. All intercompany transactions and balances have been eliminated on consolidation.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts including doubtful accounts, carrying value of long-lived asset, the useful lives of long-lived assets, inventory, accounting for income taxes and share-based compensation and related disclosures. Estimates have been prepared on the basis of the current and available information. However, actual results could differ from estimated amounts.

Foreign Currency Translation and Foreign Currency Transactions

The financial position and results of operations of the Company’s operating

non-U.S.

subsidiaries are generally determined using the respective local currency as the functional currency of that subsidiary. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange prevailing during the period. Adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive gain (loss) in shareholders’ equity. Gains and losses resulting from foreign currency transactions are included in general and administrative expenses and were a gain of $8,000 and a loss of $106,000 for the three and nine months ended March 31, 2021, respectively. For the three and nine months ended March 31, 2020 amounts were not significant. The Company’s

non-operating

subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, nonmonetary assets and liabilities at historical rates. Gains and losses resulting from these remeasurements and foreign currency transactions are included in general and administrative expenses. During the three and nine months ended March 31, 2021, the Company recorded losses of $16,000 and $131,000, respectively. During the three and nine months ended March 31, 2020, the

amounts were not significant.

Revenue Recognition

Effective July 1, 2018, the Company adopted ASC 606,

Revenue from Contracts with Customers

, using the modified retrospective method applicable to all contracts that were not completed at the date of initial application. This update outlined a comprehensive new revenue recognition model designed to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also required additional qualitative disclosures, refer to Note 12 – Revenues for further information.

The Company’s revenue consists primarily of the sale of the RECELL System to hospitals or other treatment centers and to BARDA (collectively, “customers”), predominately in the United States. The Company evaluated the BARDA contract and concluded that a portion of the arrangement, such as the procurement of the RECELL system and the emergency preparedness, represents a transaction with a customer and as such are

the scope of ASC 606. Amounts received from BARDA for the research and development of the Company’s product are classified as BARDA income in the consolidated statement of operations and are accounted for under IAS 20. For further details refer to BARDA Income and Receivables below.

Revenues for commercial customers (hospitals and treatment centers) are recognized as control of the product is transferred to customers, at an amount that reflects the consideration expected to be received in exchange for the product. Revenues are recognized net of volume discounts. As such, revenue is recognized only to the extent a significant reversal of revenues is not expected to occur in subsequent periods. For the Company’s contracts that have an original duration of one year or less, the Company used the practical expedient applicable to such contracts and does not consider the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of each reporting period or when the Company expects to recognize this revenue. The Company has further applied the practical expedient to exclude sales tax in the transaction price and expense contract fulfilment costs such as commissions and shipping and handling expenses as incurred.

For revenues related to the BARDA contract, the Company identified two performance obligations (i) the procurement of 5,614 RECELL units, (ii) emergency preparedness services. Through this contract the Company promises to procure the product through a vendor management inventory arrangement and to stand ready to provide emergency deployment services related to the product. Emergency preparedness services include procuring necessary storage containers, housing, and maintaining the containers (and product), and providing shipping and handling services in the event of an emergency situation. This stand ready obligation is a series of distinct services that are substantially the same and have the same pattern of transfer to the customer, overtime as services are consumed.

The total transaction price of the parts of the BARDA contract was determined to be $9.2 million. The transaction price was allocated on a stand-alone selling price basis as follows: $7.6 million to the procurement of the RECELL product, which will be classified as revenues when recognized in the consolidated statement of operations and $1.6 million to the emergency deployment services which will be classified as revenues when recognized in the consolidated statement of operations.

The $1.6

million for emergency deployme

t includes variable consideration which is deemed immaterial to the contract as a whole.

The Company estimated the stand-alone selling price of the procurement of the RECELL product based on historical pricing of the Company’s product at the initial execution of the contract. The Company estimated the stand-alone selling price of the emergency deployment services performed based on the Company’s projected cost of providing the services plus an applicable profit margin as denoted in the contract.

The Company’s performance obligations are either satisfied at a point in time or over time as services are provided. The product procurement performance obligation is satisfied at a point in time, upon transfer of control of the product. As such, the related revenue for these performance obligations is recognized at a point in time as revenue within the Company’s consolidated statement of operations. In addition to guidance under ASC 606, the Company recognizes revenue from the sales of RECELL product to BARDA for placement into vaccine stockpiles in accordance with

Securities and Exchange Commission (SEC) Interpretation, Commission Guidance regarding Accounting for Sale of Vaccines and BioTerror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile (SNS).

Under this guidance, revenue is recognized when product is placed in the BARDA vendor-managed inventory as control of the product has been transferred to the customer at the time of delivery to the VMI. RECELL units that have been delivered to the BARDA have a product replacement obligation at no cost to BARDA due to product’s limited shelf-life. The estimated cost of the expired inventory over the term of the contract is accrued on a per unit basis at the time of delivery. The liability is released upon replacement of the product along with a corresponding reduction to inventory. The Company has estimated deferred cost of approximately

$198,000 as of March 31, 2021 for the rotation of the product. Such amounts are recorded in other current liabilities and other long-term liabilities in the amounts of $179,000 and $19,000, respectively. The emergency preparedness services performance obligation is satisfied over time. Revenue for the emergency deployment will be recognized on a straight-line basis during the term of the contract

as services are consumed over time

Services recognized over the three and nine months ended March 31, 2021 are $58,000 and are included in sales within the consolidated statement of operations. Contract costs to fulfil the performance obligation are incremental and expected to be recovered are capitalized and amortized on a straight-line basis over the term of the contract. As of March 31, 2021 and June 30, 2020 contract costs of $488,000 and $0 are included in other long-term assets, respectively.

Contract Liabilities

The Company receives payments from customers based on contractual terms. Trade receivables are recorded when the right to consideration becomes unconditional. The Company satisfies its performance obligation on product sales when the products are shipped or delivered, depending on the terms of the sale. Payment terms on invoiced amounts are typically

30-

days, and do not include a financing component. Contract liabilities are recorded when the Company receives payment prior to satisfying its obligation to transfer goods to a customer. The Company had $999,000 and $435,000 of contract liabilities as of March 31, 2021 and June 30, 2020, respectively.

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, and trade receivables, BARDA receivables and other receivables. As of March 31, 2021, and June 30, 2020, substantially all of the Company’s cash was deposited in accounts at financial institutions, and amounts exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which its cash is held.

As of March 31, 2021 and June 30, 2020, no single commercial customer accounted for more than 10% of net accounts receivable. BARDA receivables for the procurement of the RECELL system and emergency preparedness accounted for approximately 85% of BARDA receivables. See table below for breakdown of BARDA receivables.


	As of March 31, 2021		As of June 30, 2020
BARDA procurement and emergency preparedness services	$	2,767	$	—
BARDA expense reimbursements		483		356

Total	$	3,250	$	356

For the three months and nine months ended March 31, 2021, no single commercial customer accounted for more than 10% of total revenues. For the three months ended March 31, 2020, one customer accounted for approximately 10% of total revenues. For the nine months ended March 31, 2020, one customer accounted for approximately 12% of total revenues. Revenues from the BARDA contract accounted for approximately 47% and approximately 22% of total revenues for the three and nine months ended March 31, 2021, respectively. Prior to the current quarter BARDA had not yet procured the RECELL product.

Restricted Cash

Pursuant to a contractual agreement with American Express to maintain the business credit card, the Company must maintain restricted cash deposits which amounted to approximately

$201,000 and $201,000 as of March 31, 2021 and June 30, 2020, respectively.

BARDA Income and Receivables

The AVITA Group was awarded a Biomedical Advance Research and Development Authority (“

BARDA

”) contract in September 2015. Under this arrangement BARDA supported the Company’s research and development for the Company’s product, including the ongoing U.S. clinical regulatory program targeted towards PMA, our compassionate use program, clinical and health economics research. The BARDA contract supports the Company’s ongoing Pediatric Scalds clinical trial.

Consideration received under the BARDA arrangement is earned and recognized under a

cost-plus-fixed-fee

arrangement in which the Company is reimbursed for direct costs incurred plus allowable indirect costs and a

fixed-fee

earned. Billings under the contracts are based on approved provisional indirect billing rates, which permit recovery of fringe benefits, general and administrative expenses and a fixed fee.

The Company has concluded that grants under the BARDA relationship is not within the scope of ASC 606, as it does not meet the definition of a contract with a “customer.” The Company has further concluded that Subtopic

958-605,

Not-for-Profit-Entities-Revenue

Recognition

also does not apply, as the Company is a business entity and the payments are with governmental agencies or units. With respect to the BARDA arrangement, we considered the guidance in IAS 20,

Accounting for Government Grants and Disclosure of Government Assistance,

by analogy. BARDA income and related receivables are recognized when there is reasonable assurance that the amount will be received, and all attaching conditions have been complied with. When the payment relates to an expense item, the amount received is recognized as income over the period when the expense was incurred.

Share-based compensation

The Company records compensation expense for stock options based on the fair market value of the awards on the date of grant. The fair value of stock-based compensation awards is amortized over the vesting period of the award. Compensation expense for performance-based awards is measured based on the number of shares ultimately expected to vest, estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. The Black-Scholes option price model and Monte Carlo Simulation were used to estimate the fair value of the time-based and performance-based options, respectively. Under ASU

2016-09,

ASU

2016-09,

Compensation – Stock Compensation (“ASC 718”) Improvements to Employee Share-Based Payment Accounting

, the Company elected to account for forfeitures as they occur.

Accounting Standards Update

9 Months Ended

Mar. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Update

3. Accounting Standards Update

Recent Accounting Pronouncements Not Yet Adopted

In December 2019, the FASB issued ASU

2019-12,

Simplifying the Accounting for Income Taxes

, or ASU

2019-12,

which includes amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740,

Income Taxes

, or ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The new guidance is effective for the Company for annual periods beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted. The Company is currently evaluating the potential impact that the adoption of ASU

2019-12

will have on its consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 65
-Paragraph 1
-Subparagraph (g)(2)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 65
-Paragraph 1
-Subparagraph (i)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 6
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 944
-SubTopic 40
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-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
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-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=112272810&loc=d3e31137-122693

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Topic 740
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+ Details

Leases

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

4. Leases

On July 1, 2019, the Company adopted Accounting Standards Codification No. 842,

Leases

, (“ASC 842”), which requires lessees to recognize operating leases on the balance sheet as a

right-of-use

asset (“ROU”) and lease liability.

At contract inception, the Company determines whether the contract is a lease or contains a lease. A contract contains a lease if the Company is both able to identify an asset and can conclude it has the right to control the identified asset for a period of time. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet.

The Company has operating leases for corporate office space, manufacturing and warehouse facility. The Company has finance leases for equipment and furniture. The Company’s leases have remaining lease terms of less than one year to four years, some of which include options to renew the lease. Finance leases in the amount of $0 and $11,000 are included in other current liabilities as of March 31, 2021 and June 30, 2020, respectively.

During November 2020, the Company remeasured the lease liability for an office lease due to a change in the lease term. As a result of the remeasurement of the lease liability, there was a reduction of approximately $563,000 to the operating lease ROU assets and operating lease liabilities. There was no impact on earnings as a result of the modification. In addition to the modification for the office lease, the Company entered into a new lease in November 2020 for additional warehouse space. The new lease resulted in an increase of $236,000 to the operating lease ROU assets and operating lease liabilities.

ROU assets represent the Company’s right to control an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate (“

IBR

”) based on the information available at commencement date or modification date in determining the discount rate used to present value lease payments. The Company used the IBR on July 1, 2019 for its operating leases that commenced on or prior to that date. For leases that were modified and entered into during November 2020, the Company used the IBR in effect on the commencement date or modification date. In determining the IBR, the Company considered its credit rating and current market interest rates. The IBR used approximates the interest that the Company would be required to pay for a collateralized loan over a similar term. Additionally, the Company used the portfolio approach when applying the discount rate selected based on the dollar amount and term of the obligation. Certain leases for equipment and furniture contain bargain purchase options and are classified as finance leases. The Company’s leases typically do not include any residual value guarantees or asset retirement obligations.

The Company’s lease terms are only for periods in which it has enforceable rights. A lease is no longer enforceable when both the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. The Company has options to renew some of these leases for three years after their expiration. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a

lease-by-lease

basis.

Some leases require variable payments for common area maintenance, property taxes, parking, insurance, and other variable costs. The variable portion of lease payments is not included in operating lease ROU assets or operating lease liabilities. Variable lease costs are expensed when incurred.

The following table sets forth the Company’s operating lease expense which are included in general and administrative expenses in the consolidated statements of operations (in thousands):


	Three Months ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease cost	$	186	$	175	$	546	$	526
Variable lease cost		12		12		36		35

Total lease cost	$	198	$	187	$	582	$	561

Supplemental cash flow information related to operating leases for the nine months ended March 31, 2021 and 2020 was as follows (in thousands):


	Nine Months ended March 31, 2021		Nine Months ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	543	$	505

Supplemental balance sheet information, as of March 31, 2021 and June 30, 2020 related to operating leases was as follows (in thousands):


	As of March 31, 2021			As of June 30, 2020
Reported as:
Operating lease right-of-use assets	$	1,639		$	2,347

Total right-of-use assets	$	1,639		$	2,347

Other current liabilities:
Operating lease liabilities, short-term	$	685		$	533
Operating lease liabiltiies, long term		1,060			1,917

Total operating lease liabilities	$	1,745		$	2,450

Operating lease weighted average remaining lease term (years)		2.86			3.91
Operating lease weighted average discount rate		6.66	%		7.50	%

As of March 31, 2021, maturities of the Company’s operating lease liabilities are as follows (in thousands):


	Operating Leases
Remaining 2021	$	192
2022		784
2023		428
2024		413
2025		105

Total lease payments	$	1,922
Less imputed interest		(177	)

Total operating lease liabilities	$	1,745

As of March 31, 2021, there were no leases entered into that had not yet commenced.

Inventory

9 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Inventory

5. Inventory

The composition of inventory is as follows (in thousands):


	As of March 31, 2021		As of June 30, 2020
Raw materials	$	941	$	947
Work in process inventory		395		—
Finished goods		458	$	178

Total inventory	$	1,794	$	1,125

The Company has reduced the carrying value of its inventories to reflect the net realizable value. Charges for estimated excess and obsolescence are recorded in cost of sales in the consolidated statements of operations and were $243,000 and $362,000 for the three months and nine months ended March 31, 2021, respectively. Amounts for the three and nine months ended March 31, 2020 were not significant.

Intangible Assets

9 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

6. Intangible Assets

The composition of intangible assets, net is as follows (in thousands):


			As of March 31, 2021							As of June 30, 2020
	Weighted Average Life		Gross Amount		Accumulated Amortization			Net Carry Amount		Gross Amount		Accumulated Amortization			Net Carry Amount
Patent 1		3	$	264	$	(165	)	$	99	$	235	$	(101	)	$	134
Patent 2		14		115		(15	)		100		74		(9	)		65
Patent 3		15		163		(16	)		147		125		(9	)		116
Patent 5		20		47		(2	)		45		26		—			26
Patent 6		20		29		—			29		—		—			—
Trademarks		Indefinite		43		—			43		23		—			23

Total intangible assets			$	661	$	(198	)	$	463	$	483	$	(119	)	$	364

During the three and nine months ended March 31, 2021 and 2020, the Company did not identify any events or changes in circumstances that indicated the carrying value of its intangibles may not be recoverable. As such, there was no impairment of intangibles assets recognized for the three and nine months ended March 31, 2021 and 2020. Amortization expense of intangibles included in the consolidated statements of operations was $30,000 and $79,000 for the three and nine months ended March 31, 2021, respectively and $15,000 and $15,000 for the three and nine months ended March 31, 2020, respectively.

The Company expects the future amortization of amortizable intangible assets held at March 31, 2021 to be (in thousands):


	Estimated Amortization Expense
Remainder of 2021	$	31
2022		89
2023		25
2024		25
2025		25
2026 and thereafter		225

Total	$	420

Plant and Equipment

9 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Plant and Equipment

7. Plant and Equipment

The composition of property, plant and equipment, net is as follows (in thousands):


	Useful Lives	As of March 31, 2021			As of June 30, 2020
Computer equipment	3 years	$	890		$	802
Computer software	3 years		520			369
Construction in progress			311			138
Furniture and fixtures	7 years		440			425
Laboratory equipment	5 years		452			194
Leasehold improvements	Lesser of life or lease term		242			216
RECELL Moulds	5 years		130			100
Less: accumulated amortization and depreciation			(1,342	)		(881	)

Total plant and equipment, net		$	1,643		$	1,363

Depreciation expense related to plant and equipment for the three months ended March 31, 2021 and 2020 was $137,000 and $86,000, respectively. Depreciation expense for the nine months ended March 31, 2021 and 2020, was $461,000 and $240,000 respectively.

Prepaids and Other Current Assets and Other Long-Term Assets

9 Months Ended

Mar. 31, 2021

Prepaids and Other Current Assets and Other Long Term Assets [Abstract]

Prepaids and Other Current Assets and Other Long-term Assets

Prepaids and Other Current Assets and Other long-term assets

Prepaids and other current assets consisted of the following (in thousands):


	As of March 31, 2021		As of June 30, 2020
Prepaid expenses	$	890	$	792
Lease deposits		2		123
Other receivables		465		75

Total prepaids and other current assets	$	1,357	$	990

Prepaid expenses primarily consist of prepaid benefits and insurance.

Other long-term assets consisted of the following (in thousands):


	As of March 31, 2021		As of June 30, 2020
BARDA contract costs	$	488	$	—
Long-term lease deposits		124		1
Long-term prepaids		19		—

Total other long-term assets	$	631	$	1

Reporting Segment and Geographic Information

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Reporting Segment and Geographic Information

9. Reporting Segment and Geographic Information

The Company views its operations and manages its business in one reporting segment. Long-lived assets were primarily located in the United States as of March 31, 2021 and June 30, 2020 with an insignificant amount located in Australia and the United Kingdom.

Revenue by region for the three and nine months ended March 31, 2021 and 2020 were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Revenue:
United States	$	8,725	$	3,780	$	18,715	$	10,009
Foreign:
Australia		25		46		158		217
United Kingdom		15		51		55		160

Total	$	8,765	$	3,877	$	18,928	$	10,386

Revenue by Customer type for the three and nine months ended March 31, 2021 and 2021 were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Revenue:
Commercial sales	$	4,622	$	3,877	$	14,785	$	10,386
BARDA:
Product sales		4,085		—		4,085		—
Services for emergency preparedness		58		—		58		—

Total	$	8,765	$	3,877	$	18,928	$	10,386

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Contingencies

9 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

10. Contingencies

The Company is subject to certain contingencies arising in the ordinary course of business. The Company records accruals for these contingencies to the extent that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, that amount is accrued. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued. The Company expenses legal costs associated with loss contingencies as incurred. As of March 31, 2021 and June 30, 2020, the Company did not have any outstanding or threatened litigation that would have a material impact to the financial statements.

Common and Preferred Stock

9 Months Ended

Mar. 31, 2021

Equity [Abstract]

Common and Preferred Stock

11. Common and Preferred Stock

On June 29, 2020, a statutory scheme of arrangement under Australian law to effect a redomiciliation of the AVITA Group from Australia to the United States of America was implemented (the “

Scheme

”). The Scheme was approved by shareholders on June 15, 2020 and approved by the Federal Court of Australia on June 22, 2020.

Pursuant to the Scheme, all ordinary shares in AVITA Medical, the former parent company of the AVITA Group, were exchanged for shares of common stock in AVITA Medical, Inc., which at the time was named AVITA Therapeutics, Inc. As a result, AVITA Medical, Inc. became the sole shareholder of AVITA Medical and the new parent company of the AVITA Group. In conjunction with the Scheme, an implicit reverse split on a 1 for 100 basis was implemented whereby shareholders of AVITA Medical received one share of common stock in AVITA Medical, Inc. for every 100 ordinary shares held in AVITA Medical. AVITA Therapeutics, Inc. changed its name to AVITA Medical, Inc. in December 2020.

Under the Scheme, eligible shareholders in AVITA Medical received consideration in the form of:

•

five CDIs in AVITA Medical, Inc. for every 100 ordinary shares in AVITA Medical that were held by them; or

•

one share of common stock in AVITA Medical, Inc. for every 5 ADS

in AVITA Medical that were held by them.

The Company’s CDIs are quoted on the ASX under AVITA Medical’s existing ASX ticker code, “AVH”. The Company’s shares of common stock are quoted on NASDAQ under AVITA Medical’s existing NASDAQ ticker code, “RCEL”. One share of common stock on NASDAQ is equivalent to five CDIs on the ASX.

As a result of the ‘implicit consolidation’ that occurred under the Scheme, the number of shares of common stock on issue in the Company (as set out in the consolidated financial statements) is less than the number of ordinary shares in AVITA Medical that was previously set out in the consolidated financial statements of AVITA Medical. All common share amounts included in the consolidated financial statements have been retroactively reduced by a factor of one hundred and all per share amounts have been increased by a factor or one hundred, with the exception of the Company’s common stock par value.

The Company is authorized to issue 200,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share, issuable in one or more series as designated by the Company’s board of directors. No other class of capital stock is authorized. As of March 31, 2021, and June 30, 2020, 24,842,883

and 21,467,912 shares of common stock, respectively, were issued and outstanding and no shares of preferred stock were outstanding.

On February 24, 2021, the Company announced that it had commenced an underwritten registered public offering of its common stock. On March 1, 2021, the Company issued

3,214,250 shares of common stock at the offering price of $21.50 per share. The gross proceeds from the offering are approximately $69.1 million. The Company incurred $5.1 million in capital issuance expenses. The offering was made pursuant to a shelf registration statement on Form

S-3

(File

No. 333-249419)

that was previously filed with the Securities and Exchange Commission (the “SEC”) on October 9, 2020 and declared effective on October 16, 2020 and that was also publicly released on the Australian Securities Exchange (“ASX”). The final prospectus supplement relating to and describing the terms of the offering was filed with the SEC on February 25, 2021 (in the United States) and released on the ASX on March 1, 2021 (in Australia).

Revenues

3 Months Ended

Mar. 31, 2021

Revenue, Performance Obligation [Abstract]

Revenues

12. Revenues

Revenues

The Company’s revenue consists of sale of the RECELL System to hospitals or other treatment centers and to BARDA (collectively, “customers”), predominately in the United States. In addition, the Company records service revenue for the emergency preparedness services provided to BARDA

Contract Liabilities

30-90

days, and do not include a financing component.

Contract liabilities are recorded when the Company receives payment prior to satisfying its obligation to transfer goods to a customer. The Company had $999,000 and $435,000

of contract liabilities as of March 31, 2021 and June 30, 2020, respectively. For the three and nine months ended March 31, 2021 and 2020, revenue recognized from amounts included in the beginning balance of contract liabilities were not significant.

Remaining Performance Obligations

Revenues from remaining performance obligations are calculated as the dollar value of the remaining performance obligations on executed contracts. The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) pursuant to the Company’s existing customer agreements is $4.5

million as of March 31, 2021. The majority of which relates to our July 13, 2020 contract with BARDA for the purchase, delivery and storage of RECELL Systems for emergency response preparedness for a period of three years. We recognized

$4.1

million of revenue for the RECELL product during the three and nine months ended March 31, 2021, for purchases by BARDA. We recognized

$58,000 of service revenue related to the emergency readiness performance obligation during the three and nine months ended March 31, 2021. There were no

purchases by BARDA during the three and nine months ended March 31, 2020. We are contracted to manage this inventory of product until the federal government requests shipment or at contract termination on December 31, 2023.

Contract Costs

Capitalized cost to fulfil the BARDA emergency preparedness performance obligation, which primarily consist of billed costs to BARDA incurred in connection with the emergency deployment services, were $488,000 and $0 as of March 31, 2021 and June 30, 2020, respectively. Amortization expense related to deferred contract costs were $50,000 and $0 during the three months ended March 31, 2021 and 2020, respectively, and are classified as cost of sales on the accompanying consolidated Statements of Operations. There was no impairment loss in relation to deferred contract costs during the three months ended March 31, 2021.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Share-Based Payment Plans

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Payment Plans

13. Share-Based Payment Plans

Overview of Employee Share-Based Compensation Plans

In November 2014, our former parent company, AVITA Medical, adopted the Employee Share Plan and the Incentive Option Plan (collectively, the “2016 Plans”). The 2016 Plans previously authorized the issuance of stock options or other share-based instruments representing up to 7.5% of outstanding capital of AVITA Medical. Any increase in the maximum number of shares issuable under the 2016 Plans was subject to shareholder approval or to an increase in the total number of ordinary shares outstanding. Upon Redomiciliation, the 2016 Plans were terminated with respect to future grants and accordingly, there are no more shares available to be issued under the 2016 Plans. In addition, upon Redomiciliation, the Company had an implicit

100-1

reverse stock split and all share information presented below has been presented on a reverse split stock basis.

During November 2020, the Company, pursuant to Rule 416 under the Securities Act of 1933, filed a registration statement on form

S-8

to register a total of 1,750,000 shares of common stock which may be issued pursuant to the terms of the Avita Medical, Inc. 2020 Omnibus Incentive Plan.

Share-Based Payment Expenses

Share-based payment transactions are recognized as compensation cost based on the fair value of the instrument on the date of grant. The Black-Scholes option price model and Monte Carlo Simulation were used to estimate the fair value of the time-based and performance-based options, respectively, as of the date of the grant for awards granted under the 2020 plan. For the shares granted under the 2016 Plan the Company used the Binomial valuation model to estimate the grant date fair value of the stock options.

During the three and nine months ended March 31, 2021 the Company recorded $1.3 million and $4.3 million to share-based compensation expense, respectively. For the three and nine months ended March 31, 2020, the Company recorded $9.0 million and $12.6 million in compensation expense, respectively. No income tax benefit was recognized in the consolidated statements of comprehensive loss for share-based payment arrangements for the three and nine months ended March 31, 2021 and 2020.

The Company has included share-based compensation expense as part of operating expenses in the accompanying Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Sales and marketing expenses	$	238	$	213	$	862	$	584
General and administrative expenses		930		8,642		2,922		11,542
Research and development expenses		165		193		469		497

Total	$	1,333	$	9,048	$	4,253	$	12,623

A summary of stock option activity under the employees share option plan

arrangement as of March 31, 2021 and changes during the period then ended is presented below:


	Service Only Stock Options			Performance Based Stock Options			Total Stock Options
Outstanding at June 30, 2020		904,353			356,171			1,260,524
Granted		211,400			95,000			306,400
Exercised		(8,384	)		(500	)		(8,884	)
Expired		(20,690	)		(45,000	)		(65,690	)
Forfeited		(77,675	)		(22,500	)		(100,175	)

Outstanding at March 31, 2021		1,009,004			383,171			1,392,175

Exercisable at March 31, 2021		392,815			253,397			646,212

Restricted Stock Units

Restricted stock units (“

RSUs

”) are granted to executives as part of their long-term incentive compensation. RSU awards are approved by the Compensation Committee as determined necessary. The RSU awards have a contractual term of 10 years and vest in accordance with the tenure or performance conditions as determined by the Compensation Committee. The grant date fair value is determined based on the price of the Company stock on the NASDAQ on the date of grant. RSUs primarily consist of awards to the Chief Executive Officer and other executives.

A summary of the Company’s unvested shares activity as of and for the nine months ended March 31, 2021, is presented below:


	Service Condition RSU		Performance Conditions RSU			Total RSU
Unvested RSUs outstanding at June 30, 2020		95,013		244,346			339,359
Granted		—		5,000			5,000
Vested		—		(151,837	)		(151,837	)
Forfeited		—		(45,002	)		(45,002	)

Unvested RSUs outstanding at March 31, 2021		95,013		52,507			147,520

Income Taxes

9 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

At June 30, 2020, the Company and its subsidiaries had net operating loss carryforwards for U.S. federal, state, United Kingdom, and Australian income tax purposes of $88.5 million, $57.5 million, $29.8 million, and $34.1 million, respectively. The net operating loss carryforwards may be subject to limitation regarding their utilization against taxable income in future periods due to “change of ownership” provisions of the Internal Revenue Code and similar state and foreign provisions. Of these carryforwards, $21.7 million will expire, if not utilized, in various years through 2038.

The remaining loss carryforwards have no expiration.

In assessing the recoverability of its deferred tax assets, the Company considers whether it is more likely than not that its deferred assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating losses can be utilized. The Company considers all positive and negative evidence when determining the amount of the net deferred tax assets that are more likely than not to be realized. This evidence includes, but is not limited to, historical earnings, scheduled reversal of taxable temporary differences, tax planning strategies and projected future taxable income. Based upon the weight of available evidence including the uncertainty regarding the Company’s ability to utilize certain net operating losses and tax credits in the future, the Company has established a full valuation allowance against all its net deferred tax assets. The deferred tax assets are primarily net operating loss carryforwards for which management has determined it is more likely than not that the deferred tax assets will not be realized.

The Company recognizes the tax benefit from an uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements related to a particular tax position are measured based on the largest benefit that has a greater than a

50% likelihood of being realized upon settlement.

The amount of unrecognized tax benefits is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination.

The Company

has not identified any uncertain tax positions as

of March 31, 2021 or June 30, 2020.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the United States.

The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses and technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property. The Company evaluated the provisions of the CARES Act and does not anticipate the associated impacts, if any, will have a material effect on its financial position. Furthermore, on December 27, 2020, the Consolidated Appropriations Act was enacted and on March 11, 2021 the American Rescue Plan Act, a $1.9

trillion tax-and-spending package aimed at addressing the continuing economic and health impacts of the coronavirus pandemic, was enacted. The Company evaluated and does not anticipate the Consolidated Appropriations Act and the American Rescue Plan Act to have a material impact on the Company’s financial position.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Loss per Share

9 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Net Loss per Share

15. Net Loss per Share

The following is a reconciliation of the basic and diluted loss per share computations:


	Three months ended March 31,						Nine months ended March 31,
	(in thousands, except per share data)
	2021			2020			2021			2020
Net Loss	$	(5,997	)	$	(15,048	)	$	(21,865	)	$	(29,116	)
Weighted-average common shares – outstanding, basic		22,734			21,215			21,948			19,933
Weighted-average common shares – outstanding, diluted		22,734			21,215			21,948			19,933

Net loss per common share, basic	$	(0.26	)	$	(0.71	)	$	(1.00	)	$	(1.46	)

Net loss per common share, diluted	$	(0.26	)	$	(0.71	)	$	(1.00	)	$	(1.46	)

The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the relevant period. For the purposes of the calculation of diluted net loss per share options to purchase common stock, restricted stock units and unvested shares of common stock issued upon the early exercise of stock options have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive. Because the Company has reported a net loss for the three and nine months ended March 31, 2021 and 2020, diluted net loss per common share is the same as the basic net loss per share for those periods.

The loss per share incorporates the impact of the reverse stock split that was effectuated in conjunction with the Redomicilation. In accordance with ASC 260, the impact of the reverse stock split was retrospectively applied for all periods presented.

Retirement Plans

9 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans

16. Retirement Plans

The Company offers a 401(k)-retirement savings plan (the

“401(k) Plan”

) for its employees, including its executive officers, who satisfy certain eligibility requirements. The Internal Revenue Code of 1986, as amended, allows eligible employees to defer a portion of their compensation, within prescribed limits, on a

pre-tax

basis through contributions to the 401(k) Plan. The Company matches contributions to the 401(k) Plan based on the amount of salary deferral contributions the participant makes to the 401(k) Plan. The Company will match up to 6% of an employee’s compensation that the employee contributes to his or her 401(k) Plan account. Total Company matching contributions to the 401(k) Plan were $221,000 and $222,000 in the three months ended March 31, 2021 and 2020, respectively and $531,000 and $514,000 for the nine months ended March 31, 2021 and 2020, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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-Name Accounting Standards Codification
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+ Details

Subsequent Events

9 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

17. Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form

10-Q

and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“

GAAP

”) for interim financial information and with the instructions to Form

10-Q

and Article 10 of Regulation

S-X

of the Securities and Exchange Commission (the “

SEC

”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this quarterly report on Form

10-Q

should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form

10-K

for the fiscal year ended June 30, 2020 filed with the SEC on August 27, 2020 (the “

Annual Report

”).

There have been no changes to the Company’s significant accounting policies as described in the annual report on Form

10-K

Reclassification

$193,000.

For the nine months ended March 31, 2020, the Company reclassified share-based compensation of

$12.6 million to sales and marketing expense of $584,000, general and administrative expense of $11.5 million and research and development expenses of $497,000.

Principles of Consolidation

Use of Estimates

Foreign Currency Translation and Foreign Currency Transactions

The financial position and results of operations of the Company’s operating

non-U.S.

non-operating

amounts were not significant.

Revenue Recognition

Effective July 1, 2018, the Company adopted ASC 606,

Revenue from Contracts with Customers

The $1.6

million for emergency deployme

t includes variable consideration which is deemed immaterial to the contract as a whole.

as services are consumed over time

Contract Liabilities

30-

Concentrations


	As of March 31, 2021		As of June 30, 2020
BARDA procurement and emergency preparedness services	$	2,767	$	—
BARDA expense reimbursements		483		356

Total	$	3,250	$	356

Restricted Cash

Pursuant to a contractual agreement with American Express to maintain the business credit card, the Company must maintain restricted cash deposits which amounted to approximately

$201,000 and $201,000 as of March 31, 2021 and June 30, 2020, respectively.

BARDA Income and Receivables

The AVITA Group was awarded a Biomedical Advance Research and Development Authority (“

BARDA

Consideration received under the BARDA arrangement is earned and recognized under a

cost-plus-fixed-fee

arrangement in which the Company is reimbursed for direct costs incurred plus allowable indirect costs and a

fixed-fee

earned. Billings under the contracts are based on approved provisional indirect billing rates, which permit recovery of fringe benefits, general and administrative expenses and a fixed fee.

958-605,

Not-for-Profit-Entities-Revenue

Recognition

also does not apply, as the Company is a business entity and the payments are with governmental agencies or units. With respect to the BARDA arrangement, we considered the guidance in IAS 20,

Accounting for Government Grants and Disclosure of Government Assistance,

Stock-Based Compensation

Share-based compensation

2016-09,

ASU

2016-09,

Compensation – Stock Compensation (“ASC 718”) Improvements to Employee Share-Based Payment Accounting

, the Company elected to account for forfeitures as they occur.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Other Receivables


	As of March 31, 2021		As of June 30, 2020
BARDA procurement and emergency preparedness services	$	2,767	$	—
BARDA expense reimbursements		483		356

Total	$	3,250	$	356

Leases (Tables)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Summary Of Lease Cost

The following table sets forth the Company’s operating lease expense which are included in general and administrative expenses in the consolidated statements of operations (in thousands):


	Three Months ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease cost	$	186	$	175	$	546	$	526
Variable lease cost		12		12		36		35

Total lease cost	$	198	$	187	$	582	$	561

Summary Of Supplemental Cash Flow Information Related To Operating Leases

Supplemental cash flow information related to operating leases for the nine months ended March 31, 2021 and 2020 was as follows (in thousands):


	Nine Months ended March 31, 2021		Nine Months ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	543	$	505

Summary Of Supplemental Balance Sheet Information Related To Operating Leases

Supplemental balance sheet information, as of March 31, 2021 and June 30, 2020 related to operating leases was as follows (in thousands):


	As of March 31, 2021			As of June 30, 2020
Reported as:
Operating lease right-of-use assets	$	1,639		$	2,347

Total right-of-use assets	$	1,639		$	2,347

Other current liabilities:
Operating lease liabilities, short-term	$	685		$	533
Operating lease liabiltiies, long term		1,060			1,917

Total operating lease liabilities	$	1,745		$	2,450

Operating lease weighted average remaining lease term (years)		2.86			3.91
Operating lease weighted average discount rate		6.66	%		7.50	%

Summary Of Maturities Of The Company's Operating Lease Liabilities

As of March 31, 2021, maturities of the Company’s operating lease liabilities are as follows (in thousands):


	Operating Leases
Remaining 2021	$	192
2022		784
2023		428
2024		413
2025		105

Total lease payments	$	1,922
Less imputed interest		(177	)

Total operating lease liabilities	$	1,745

Inventory (Tables)

9 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Summary Of Composition Of Inventory

The composition of inventory is as follows (in thousands):


	As of March 31, 2021		As of June 30, 2020
Raw materials	$	941	$	947
Work in process inventory		395		—
Finished goods		458	$	178

Total inventory	$	1,794	$	1,125

Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Summary Of Composition Of Intangible Assets

The composition of intangible assets, net is as follows (in thousands):


			As of March 31, 2021							As of June 30, 2020
	Weighted Average Life		Gross Amount		Accumulated Amortization			Net Carry Amount		Gross Amount		Accumulated Amortization			Net Carry Amount
Patent 1		3	$	264	$	(165	)	$	99	$	235	$	(101	)	$	134
Patent 2		14		115		(15	)		100		74		(9	)		65
Patent 3		15		163		(16	)		147		125		(9	)		116
Patent 5		20		47		(2	)		45		26		—			26
Patent 6		20		29		—			29		—		—			—
Trademarks		Indefinite		43		—			43		23		—			23

Total intangible assets			$	661	$	(198	)	$	463	$	483	$	(119	)	$	364

Summary Of Future Amortization Of Amortizable Intangible Assets Held

The Company expects the future amortization of amortizable intangible assets held at March 31, 2021 to be (in thousands):


	Estimated Amortization Expense
Remainder of 2021	$	31
2022		89
2023		25
2024		25
2025		25
2026 and thereafter		225

Total	$	420

Plant and Equipment (Tables)

9 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Summary Of Composition Of Property, Plant And Equipment

The composition of property, plant and equipment, net is as follows (in thousands):


	Useful Lives	As of March 31, 2021			As of June 30, 2020
Computer equipment	3 years	$	890		$	802
Computer software	3 years		520			369
Construction in progress			311			138
Furniture and fixtures	7 years		440			425
Laboratory equipment	5 years		452			194
Leasehold improvements	Lesser of life or lease term		242			216
RECELL Moulds	5 years		130			100
Less: accumulated amortization and depreciation			(1,342	)		(881	)

Total plant and equipment, net		$	1,643		$	1,363

Prepaids and Other Current Assets and Other Long-Term Assets (Tables)

9 Months Ended

Mar. 31, 2021

Prepaids and Other Current Assets and Other Long Term Assets [Abstract]

Summary of Prepaids and Other Current Assets

Prepaids and other current assets consisted of the following (in thousands):


	As of March 31, 2021		As of June 30, 2020
Prepaid expenses	$	890	$	792
Lease deposits		2		123
Other receivables		465		75

Total prepaids and other current assets	$	1,357	$	990

Summary of Other Long Term Assets

Other long-term assets consisted of the following (in thousands):


	As of March 31, 2021		As of June 30, 2020
BARDA contract costs	$	488	$	—
Long-term lease deposits		124		1
Long-term prepaids		19		—

Total other long-term assets	$	631	$	1

Reporting Segment and Geographic Information (Tables)

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule Of Revenue By Region and Customer Type

Revenue by region for the three and nine months ended March 31, 2021 and 2020 were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Revenue:
United States	$	8,725	$	3,780	$	18,715	$	10,009
Foreign:
Australia		25		46		158		217
United Kingdom		15		51		55		160

Total	$	8,765	$	3,877	$	18,928	$	10,386

Revenue by Customer type for the three and nine months ended March 31, 2021 and 2021 were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Revenue:
Commercial sales	$	4,622	$	3,877	$	14,785	$	10,386
BARDA:
Product sales		4,085		—		4,085		—
Services for emergency preparedness		58		—		58		—

Total	$	8,765	$	3,877	$	18,928	$	10,386

Share-Based Payment Plans (Tables)

9 Months Ended

Mar. 31, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary Of Stock-based Compensation Is Reflected In The Statements Of Operations

The Company has included share-based compensation expense as part of operating expenses in the accompanying Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Sales and marketing expenses	$	238	$	213	$	862	$	584
General and administrative expenses		930		8,642		2,922		11,542
Research and development expenses		165		193		469		497

Total	$	1,333	$	9,048	$	4,253	$	12,623

Summary Of Stock Option Activity

A summary of stock option activity under the employees share option plan

arrangement as of March 31, 2021 and changes during the period then ended is presented below:


	Service Only Stock Options			Performance Based Stock Options			Total Stock Options
Outstanding at June 30, 2020		904,353			356,171			1,260,524
Granted		211,400			95,000			306,400
Exercised		(8,384	)		(500	)		(8,884	)
Expired		(20,690	)		(45,000	)		(65,690	)
Forfeited		(77,675	)		(22,500	)		(100,175	)

Outstanding at March 31, 2021		1,009,004			383,171			1,392,175

Exercisable at March 31, 2021		392,815			253,397			646,212

Summary Of Grant-date Fair Value Of Stock Option

A summary of the Company’s unvested shares activity as of and for the nine months ended March 31, 2021, is presented below:


	Service Condition RSU		Performance Conditions RSU			Total RSU
Unvested RSUs outstanding at June 30, 2020		95,013		244,346			339,359
Granted		—		5,000			5,000
Vested		—		(151,837	)		(151,837	)
Forfeited		—		(45,002	)		(45,002	)

Unvested RSUs outstanding at March 31, 2021		95,013		52,507			147,520

Net Loss per Share (Tables)

9 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Summary Of Reconciliation Of The Basic And Diluted Loss Per Share

The following is a reconciliation of the basic and diluted loss per share computations:


	Three months ended March 31,						Nine months ended March 31,
	(in thousands, except per share data)
	2021			2020			2021			2020
Net Loss	$	(5,997	)	$	(15,048	)	$	(21,865	)	$	(29,116	)
Weighted-average common shares – outstanding, basic		22,734			21,215			21,948			19,933
Weighted-average common shares – outstanding, diluted		22,734			21,215			21,948			19,933

Net loss per common share, basic	$	(0.26	)	$	(0.71	)	$	(1.00	)	$	(1.46	)

Net loss per common share, diluted	$	(0.26	)	$	(0.71	)	$	(1.00	)	$	(1.46	)

The Company - Additional Information (Detail) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Description of stock exchange ratio				This exchange was conducted on the basis of one share of common stock of AVITA Medical, Inc. for every 100 ordinary shares of AVITA Medical, effecting an ‘implicit consolidation’ or ‘reverse split’. The holders of ordinary shares of AVITA Medical received one CDI for every 20 ordinary shares held in AVITA Medical, and the holders of AVITA Medical ADSs (each of which previously represented 20 ordinary shares in AVITA Medical) received one share of common stock in AVITA Medical, Inc. for every five ADSs held.
BARDA income		$ 570	$ 1,008	$ 1,615	$ 3,445
BARDA \| RECELL system
Contract amount	$ 7,600
Number of units will be delivered	5,614
Number of Units Delivered				3,020

Summary of Significant Accounting Policies - Additional Information (Detail)

3 Months Ended

9 Months Ended

12 Months Ended

Jul. 31, 2020

Mar. 31, 2021

USD ($)

Mar. 31, 2020

USD ($)

Mar. 31, 2021

USD ($)

Mar. 31, 2020

USD ($)

Jun. 30, 2020

USD ($)

Gain (Loss) on Foreign Currency Transactions

$ 237,000

$ 6,000

Concentration risk, customer

Restricted cash

$ 201,000

Share based compensation

4,253,000

12,623,000

Sales and marketing expenses

^[1]

3,649,000

$ 4,375,000

10,514,000

11,446,000

General and administrative expenses

^[1]

5,422,000

12,787,000

17,125,000

23,316,000

Research and development expenses

^[1]

$ 4,109,000

2,495,000

10,844,000

6,626,000

Contract description

For revenues related to the BARDA contract, the Company identified two performance obligations (i) the procurement of 5,614 RECELL units, (ii) emergency preparedness services

Deferred Costs

$ 198,000

198,000

Deferred Costs, Current

179,000

Deferred Costs, Noncurrent

19,000

Capiitalized fulfilment costs

488,000

Contract with customers non current liability

999,000

435,000

Other Noncurrent Assets [member]

Capiitalized fulfilment costs

488,000

$ 0

BARDA [Member]

Total Transaction Price Of Contract

9,200,000

Recell System [member]

Services recognised

58,000

Recell System [member] | BARDA [Member]

Transaction price allocated on a stand alone selling price basis

7,600,000

Number of units will be delivered

5,614

Emergency Deployment [Member] | BARDA [Member]

Transaction price allocated on a stand alone selling price basis

1,600,000

Revision of Prior Period, Reclassification, Adjustment [Member]

Share based compensation

9,000,000

12,600,000

Sales and marketing expenses

213,000

584,000

General and administrative expenses

8,600,000

11,500,000

Research and development expenses

$ 193,000

$ 497,000

General and Administrative Expense [Member]

Gain (Loss) on Foreign Currency Transactions

(16,000)

(131,000)

General and Administrative Expense [Member] | Non-US [Member]

Gain (Loss) on Foreign Currency Transactions

8,000

(106,000)

Revenue [Member] | Recell System [member] | BARDA [Member]

Transaction price allocated on a stand alone selling price basis

1,600,000

Sales [Member]

Services recognised

$ 58,000

Maximum

Revenue, performance obligation, description of payment terms

90 days

Minimum

Revenue, performance obligation, description of payment terms

30 days

Revenue Benchmark

Concentration risk, customer

Concentration risk, percentage

10.00%

Revenue Benchmark | BARDA [Member]

Concentration risk, percentage

47.00%

22.00%

Revenue Benchmark | Customer One [Member]

Concentration risk, percentage

10.00%

12.00%

Accounts Receivable

Concentration risk, percentage

10.00%

Accounts Receivable Revenue

Concentration risk, percentage

85.00%

[1]	Refer to Note 2 for information about a reclassification of share-based compensation expense

Summary of Significant Accounting Policies - Summary of Other Receivables (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Other Receivables, Net, Current [Abstract]
BARDA procurement and emergency preparedness services	$ 2,767
BARDA expense reimbursements	483	$ 356
Total	$ 3,250	$ 356

Leases - Additional Information (Detail) - USD ($)	Mar. 31, 2021	Nov. 30, 2020	Jun. 30, 2020	Jul. 01, 2019
Leases [Line Items]
Finance lease liability	$ 0		$ 11,000
Decrease In Operating Lease ROU Assets And Operating Lease Liabilities		$ 563,000
Increase In Operating Lease ROU Assets And Operating Lease Liabilities		$ 236,000
Minimum
Leases [Line Items]
Remaining lease terms				1 year
Maximum
Leases [Line Items]
Remaining lease terms				4 years

Leases - Summary Of Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Lease Cost [Line Items]
Operating lease cost	$ 186	$ 175	$ 546	$ 526
Variable lease cost	12	12	36	35
Total lease cost	$ 198	$ 187	$ 582	$ 561

Leases - Summary Of Supplemental Cash Flow Information Related To Operating Leases (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disclosure Of Supplemental cash flow information related to operating leases [Line Items]
Operating cash outflows due to operating leases	$ 543	$ 505

Leases - Summary Of Supplemental Balance Sheet Information Related To Operating Leases (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Disclosure Of Supplemental Balance Sheet Information Related To Operating Leases [Line Items]
Operating lease right-of-use assets	$ 1,639	$ 2,347
Total right-of-use assets	1,639	2,347
Operating lease liabilities, short-term	685	533
Operating lease liabiltiies, long term	1,060	1,917
Total operating lease liabilities	$ 1,745	$ 2,450
Operating lease weighted average remaining lease term (years)	2 years 10 months 9 days	3 years 10 months 27 days
Operating lease weighted average discount rate	6.66%	7.50%

Leases - Summary Of Maturities Of The Company's Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Lessee Operating Lease Liability Maturity [Line Items]
Remaining 2021	$ 192
2022	784
2023	428
2024	413
2025	105
Total lease payments	1,922
Less imputed interest	(177)
Total operating lease liabilities	$ 1,745	$ 2,450

Inventory - Summary Of Composition Of Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Inventory [Line Items]
Raw materials	$ 941	$ 947
Work in process inventory	395
Finished goods	458	178
Total inventory	$ 1,794	$ 1,125

Inventory - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
Inventory - Additional Information (Detail) - USD ($)	Mar. 31, 2021	Mar. 31, 2021
Inventory Disclosure [Abstract]
Inventory impairments	$ 243,000	$ 362,000

Intangible Assets - Summary Of Composition Of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	$ 661	$ 483
Finite Lived Intangible Assets, Accumulated Amortization	(198)	(119)
Finite Lived Intangible Assets, Net Carrying Amount	420
Intangible Assets, Net (Excluding Goodwill)	463	364
Trademarks
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Finite Lived Intangible Assets, Gross Amount		23
Indefinite-lived Intangible Assets (Excluding Goodwill)	43
Finite Lived Intangible Assets, Accumulated Amortization
Finite Lived Intangible Assets, Net Carrying Amount	$ 43	23
Patent 1
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years
Finite Lived Intangible Assets, Gross Amount	$ 264	235
Finite Lived Intangible Assets, Accumulated Amortization	(165)	(101)
Finite Lived Intangible Assets, Net Carrying Amount	$ 99	134
Patent 2
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	14 years
Finite Lived Intangible Assets, Gross Amount	$ 115	74
Finite Lived Intangible Assets, Accumulated Amortization	(15)	(9)
Finite Lived Intangible Assets, Net Carrying Amount	$ 100	65
Patent 3
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years
Finite Lived Intangible Assets, Gross Amount	$ 163	125
Finite Lived Intangible Assets, Accumulated Amortization	(16)	(9)
Finite Lived Intangible Assets, Net Carrying Amount	$ 147	116
Patent 5
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	20 years
Finite Lived Intangible Assets, Gross Amount	$ 47	26
Finite Lived Intangible Assets, Accumulated Amortization	(2)
Finite Lived Intangible Assets, Net Carrying Amount	$ 45	26
Patent 6
Schedule Of Intangible Assets Excluding Goodwill [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	20 years
Finite Lived Intangible Assets, Gross Amount	$ 29
Finite Lived Intangible Assets, Accumulated Amortization
Finite Lived Intangible Assets, Net Carrying Amount	$ 29

Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of intangible assets	$ 0	$ 0	$ 0	$ 0
Amortization of intangible assets	$ 30,000	$ 15,000	$ 79,000	$ 15,000

Intangible Assets - Summary of Future Amortization of Amortizable Intangible assets held (Detail) $ in Thousands	Mar. 31, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 31
2022	89
2023	25
2024	25
2025	25
2026 and thereafter	225
Total	$ 420

Plant and Equipment - Summary Of Composition Of Property, Plant And Equipment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	$ (1,342)	$ (881)
Total plant and equipment, net	$ 1,643	1,363
Computer Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Property, Plant and Equipment, Gross	$ 890	802
Computer Software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Property, Plant and Equipment, Gross	$ 520	369
Construction In Progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 311	138
Furniture And Fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Property, Plant and Equipment, Gross	$ 440	425
Laboratory Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Property, Plant and Equipment, Gross	$ 452	194
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	0 years
Property, Plant and Equipment, Gross	$ 242	216
RECELL Moulds
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Property, Plant and Equipment, Gross	$ 130	$ 100

Plant and Equipment - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 137,000	$ 86,000	$ 461,000	$ 240,000

Prepaids and Other Current Assets and Other Long-Term Assets - Summary of Prepaids and Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Prepaid expenses	$ 890	$ 792
Lease deposits	2	123
Other receivables	465	75
Total prepaids and other current assets	$ 1,357	$ 990

Prepaids and Other Current Assets and Other Long-Term Assets - Summary of Other Long Term Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Other Assets, Noncurrent Disclosure [Abstract]
BARDA contract costs	$ 488
Long-term lease deposits	124	$ 1
Long-term prepaids	19
Total other long-term assets	$ 631	$ 1

Reporting Segment and Geographic Information - Schedule Of Revenue By Region and Customer Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Revenue :
Revenues	$ 8,765	$ 3,877	$ 18,928	$ 10,386
Commercial Sales
Revenue :
Revenues	4,622	3,877	14,785	10,386
Product Sales
Revenue :
Revenues	4,085		4,085
Services For Emergency Preparedness
Revenue :
Revenues	58		58
United States
Revenue :
Revenues	8,725	3,780	18,715	10,009
Foreign \| Australia
Revenue :
Revenues	25	46	158	217
Foreign \| United Kingdom
Revenue :
Revenues	$ 15	$ 51	$ 55	$ 160

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

Contingencies - Additional Information (Detail) - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Threatened Litigation
Litigation liability	$ 0	$ 0

Common and Preferred Stock - Additional Information (Detail) $ / shares in Units, $ in Thousands			3 Months Ended	9 Months Ended
	Feb. 24, 2021 USD ($) $ / shares shares	Jun. 29, 2020	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) shares	Jun. 30, 2020 $ / shares shares
Class of Stock [Line Items]
Common stock shares authorized			200,000,000	200,000,000		200,000,000
Common stock par value \| $ / shares			$ 0.0001	$ 0.0001		$ 0.0001
Common stock shares issued			24,842,883	24,842,883		21,467,912
Common stock shares outstanding			24,842,883	24,842,883		21,467,912
Preferred stock shares authorized			10,000,000	10,000,000		10,000,000
Preferred stock par value \| $ / shares			$ 0.0001	$ 0.0001		$ 0.0001
Preferred stock shares outstanding			0	0		0
Stock issued during period, value, new issues \| $			$ 69,106	$ 69,106	$ 81,702
Common Stock
Class of Stock [Line Items]
Sale of stock issue price per share \| $ / shares	$ 21.50
Stock issued during period, shares, new issues	3,214,250		3,214,250	3,214,250	2,033,898
Stock issued during period, value, new issues \| $	$ 69,100
Shareholders Of Avita Medical
Class of Stock [Line Items]
Reverse stock split ratio		0.01
Shareholders Of Avita Medical \| CDI
Class of Stock [Line Items]
Reverse stock split ratio		0.05
Shareholders Of Avita Medical \| Common Stock \| ADRS
Class of Stock [Line Items]
Reverse stock split ratio		0.05

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
Revenue - Additional Information (Detail) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Capiitalized fulfilment costs	$ 488,000		$ 488,000
Contract with customers non current liability	999,000		999,000		$ 435,000
Performance obligation estimated revenue expected to be recognised	4,500,000		4,500,000
Contract cost amortization			50,000
Contract cost impairment loss	0
Other Noncurrent Assets
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Capiitalized fulfilment costs	488,000		488,000		$ 0
RECELL system
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Services recognised	58,000		58,000
Revenue from performance obligation recognised	4,100,000	$ 0	$ 4,100,000	$ 0
Cost of Sales
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract cost amortization	$ 50,000	$ 0

Share-Based Payment Plans - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2020	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense		$ 1,333,000	$ 9,048,000	$ 4,253,000	$ 12,623,000
Income tax benefit (expense)		$ 0	$ 0	$ 0	$ 0
Employee Share Plan And Incentive Option Plan Two Thousand And Sixteen
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstading share capital authorised for issuance share based plan						7.50%
Share based compensation by share based payment arrangement weighted average grant date of fair value of options granted				$ 0
Share based compensation by share based payment arrangement intrinsic value of options exercised				$ 0
Two Thousand And Twenty Omnibus Incentive Plan [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued under the plan	1,750,000

Share-Based Payment Plans - Summary Of Stock-based Compensation Is Reflected In The Statements Of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 1,333	$ 9,048	$ 4,253	$ 12,623
Selling and Marketing Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	238	213	862	584
General and Administrative Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	930	8,642	2,922	11,542
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 165	$ 193	$ 469	$ 497

Share-Based Payment Plans - Summary Of Stock Option Activity (Detail) - shares	9 Months Ended
	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance	1,260,524
Granted	306,400
Exercised	(8,884)
Expired	(65,690)
Forfeited	(100,175)
Ending balance	1,392,175
Exercisable	646,212
Service Only Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance	904,353
Granted	211,400
Exercised	(8,384)
Expired	(20,690)
Forfeited	(77,675)
Ending balance	1,009,004
Exercisable	392,815
Performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance	356,171
Granted	95,000
Exercised	(500)
Expired	(45,000)
Forfeited	(22,500)
Ending balance	383,171
Exercisable	253,397

Share-Based Payment Plans - Summary Of Company Unvested Shares (Detail)	9 Months Ended
	Mar. 31, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares beginning balance	339,359
Unvested shares granted	5,000
Unvested shares vested	(151,837)
Unvested shares forfeited	(45,002)
Unvested shares ending balance	147,520
Non Options Service Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares beginning balance	95,013
Unvested shares ending balance	95,013
Non Option Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares beginning balance	244,346
Unvested shares granted	5,000
Unvested shares vested	(151,837)
Unvested shares forfeited	(45,002)
Unvested shares ending balance	52,507

Income Taxes - Additional Information (Detail) - USD ($)		3 Months Ended	12 Months Ended
	Mar. 11, 2021	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2020
Income Tax Disclosure [Line Items]
Unrecognised income tax benenfits		$ 0				$ 0
The American Rescue Plan Act [Member]
Income Tax Disclosure [Line Items]
Amount of the American Rescue Act	$ 1,900,000,000,000
Tax Cut And Jobs Act
Income Tax Disclosure [Line Items]
Percentage of tax amount likely to be realised		50.00%	50.00%	50.00%	50.00%
Tax Year 2038
Income Tax Disclosure [Line Items]
Net operating loss carryforwards						21,700,000
Internal Revenue Service (IRS)
Income Tax Disclosure [Line Items]
Net operating loss carryforwards						88,500,000
State and Local Jurisdiction
Income Tax Disclosure [Line Items]
Net operating loss carryforwards						57,500,000
Her Majesty's Revenue and Customs (HMRC)
Income Tax Disclosure [Line Items]
Net operating loss carryforwards						29,800,000
Australian Taxation Office
Income Tax Disclosure [Line Items]
Net operating loss carryforwards						$ 34,100,000

Net Loss per Share - Summary of Reconciliation of The Basic And Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Net loss	$ 5,997	$ 15,048	$ 21,865	$ 29,116
Weighted-average common shares - outstanding, basic	22,734,335	21,215,246	21,948,132	19,932,947
Weighted-average common shares - outstanding, diluted	22,734,335	21,215,246	21,948,132	19,932,947
Net loss per common share, basic	$ (0.26)	$ (0.71)	$ (1.00)	$ (1.46)
Net loss per common share, diluted	$ (0.26)	$ (0.71)	$ (1.00)	$ (1.46)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Retirement Plans - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Retirement Benefits [Abstract]
Defined contribution plan employers matching contribution percentage of employees pay			6.00%
Employers contribution to retirement plan	$ 221,000	$ 222,000	$ 531,000	$ 514,000