LEASES

12 Months Ended

Jun. 30, 2023

NOTE 6 – LEASES

Lessee Arrangements

As discussed in Note 2, we acquired three partnerships which had solar equipment leases in place. We reassessed the leases as of the acquisition date and recorded them as finance leases in accordance with ASC 842. Our leases have remaining terms of 7.33 to 7.75 years. Right-of-use assets and lease liabilities by lease type, and the associated balance sheet classifications, are as follows:

	Balance Sheet Classification	June 30, 2023
Right-of-use assets:
Finance leases	Real estate assets, net	$	644,616

Lease liabilities:
Finance leases	Finance lease liabilities	$	628,420

We have included these leases in real estate assets, net as follows:

	June 30, 2023
Building, fixtures and improvements	$	658,695
Accumulated depreciation		(14,079	)
Lease Expense	$	644,616

Lease Expense

The components of total lease cost were as follows for the year ended June 30, 2023:

	June 30, 2023
Finance lease cost
Right-of-use asset amortization	$	14,079
Interest expense		12,325
Total lease cost	$	26,404

Lease Obligations

Future undiscounted lease payments for finance leases with initial terms of one year or more are as follows:

Fiscal Year Ending June 30, :	Finance Leases
2024	$	86,361
2025		89,813
2026		93,408
2027		97,079
2028		100,960
Thereafter		286,082
Total undiscounted lease payments		753,703
Less: Imputed interest		(125,283	)
Net lease liabilities	$	628,420

Supplemental Lease Information

	June 30, 2023
Finance lease weighted average remaining lease term (years)	7.53 years
Finance lease weighted average discount rate		5.0	%

Cash paid for amounts included in the measurement of lease liabilities
Financing cash flows from finance leases	$	30,276

Right-of-use assets obtained in exchange for new finance lease liabilities	$	658,695