Leases

9 Months Ended

Mar. 31, 2024

Leases

Leases

11. Leases

A lease provides the lessee the right to control the use of an identified asset for a period in exchange for consideration. Operating lease right-of-use assets (“RoU assets”) are presented within the asset section of the Company’s consolidated balance sheets, while lease liabilities are included within the liability section of the Company’s consolidated balance sheets at March 31, 2024 and June 30, 2023.

RoU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company determines if an arrangement is a lease at inception. RoU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Most operating leases contain renewal options that provide for rent increases based on prevailing market conditions. The terms used to calculate the RoU assets for certain properties include the renewal options that the Company is reasonably certain to exercise.

The discount rate used to determine the commencement date present value of lease payments is the interest rate implicit in the lease, or when that is not readily determinable, the Company estimates a rate of 8.0% for the nine months ending March 31, 2024 and 2023, based primarily on historical lending agreements. RoU assets include lease payments required to be made prior to commencement and exclude lease incentives. Both RoU assets and the related lease liability exclude variable payments not based on an index or rate, which are treated as period costs. The Company’s lease agreements do not contain significant residual value guarantees, restrictions, or covenants.

The Company occupies office facilities under lease agreements that expire at various dates, many of which do not exceed a year in length. Total operating lease costs for the nine months ended March 31, 2024 and 2023, were each approximately $0.1 million. The Company does not have any finance leases as of March 31, 2024 and 2023.

As of March 31, 2024, current lease liabilities of $0.1 million are included in “Accounts payable and accrued liabilities” on the consolidated balance sheets. The table below presents total operating lease RoU assets and lease liabilities at March 31, 2024 and June 30, 2023:

	March 31, 2024		June 30, 2023
Operating lease right-of-use asset	$	67,366	$	143,154
Operating lease liabilities	$	86,030	$	175,788

The table below presents the maturities of operating lease liabilities as of March 31, 2024:

March 31, 2025	$	88,632
March 31, 2026		-
Total lease payments		88,632
Less: discount		(2,601	)
Total operating lease liabilities	$	86,030
Operating lease liabilities, current	$	86,030
Operating lease liabilities, non-current	$	-

The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use asset as of March 31, 2024.

Weighted average lease term (years)	0.67
Weighted average discount rate	8.00	%

AMERICAN BATTERY TECHNOLOGY COMPANY

Notes to the Condensed Consolidated Financial Statements

For the period ended March 31, 2024

(unaudited)