OPERATING LEASE

12 Months Ended

Jun. 30, 2025

OPERATING LEASE

OPERATING LEASE

9. OPERATING LEASE 

In August 2024, the Company entered a 12-month operating lease with an option to extend for four additional one-year periods which the Company is reasonably certain they will exercise. The lease provides for approximately 750 square feet of rentable area which the Company intends to sublease. The monthly lease payments are $2,000 the first year, $2,250 for the second year, $2,500 for the third year, $2,750 for the fourth year, and $3,000 for the fifth year of the lease. On the commencement date of the lease, the Company recorded $112,746 related to the ROU asset and lease liability.

Operating lease expense was $26,766 and $0 for the years ended June 30, 2025 and June 30, 2024, respectively. Operating cash flows used for the operating leases during the years ended June 30, 2025 and 2024, was $12,000 and $0, respectively. As of June 30, 2025, the weighted average remaining lease term was 4.09 years, and the weighted average discount rate was 10%.

Future minimum lease payments under the lease as of June 30, 2025, were as follows:

2026	$	32,750
2027		29,750
2028		32,750
2029		35,750
Thereafter		3,000
Total		134,000
Less: Interest		(29,725	)
Present value of lease liability		104,275
Operating lease liability, current [1]		(26,750	)
Operating lease liability, long term	$	77,525

 ^[1] Represents lease payments to be made in the next 12 months.