ACCRUED LIABILITIES

6 Months Ended

Dec. 31, 2020

NOTE 5 ACCRUED LIABILITIES

Accrued liabilities at December 31, 2020 and June 30, 2020 were as follows:


		As of		As of
		December 31,		June 30,
		2020		2020
Employee compensation and benefits	$	582,244	$	1,493,484
Income tax payable		115,649		110,649
Customer deposit		5,000,000		5,000,000
Other		1,817,924		1,442,681
Total accrued liabilities	$	7,515,817	$	8,046,814

The customer deposit of $5,000,000 relates to a partial deposit received from the distributor of the Company's Assurance AB™ product. Under the terms of the agreement with the distributor, the purchase order may not be cancelled and product may only be returned if damaged in transit or subject to a recall order. In an effort to expeditiously satisfy the Company's obligations under the agreement with the distributor, the Company paid the full amount of the partial deposit to the Company's U.S. supplier. The deposit paid to the supplier is included in other current assets on the condensed consolidated balance sheets. If the Assurance AB test does not receive Emergency Use Authorization from the FDA, the deposit paid to the Company's supplier may become impaired. As of the date of this filing, the Company has withdrawn its original EUA application and is planning on filing a new EUA application for a version of the product designed to meet testing needs anticipated during the vaccination phase of the pandemic. The Company will fulfill the purchase order upon receipt of the remaining deposit amount due from the distributor under the distribution agreement. As of the date of the financial statements, no additional deposits have been made. The customer has requested a refund of the deposit. See further discussion in Note 11.

PREDICTIVE TECHNOLOGY GROUP, INC. 10-Q