Leases

6 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

5. Leases

The Company has operating leases for its office spaces and finance leases for its equipment trailer.

The lease liability in connection with operating and finance leases are included in non-current lease liabilities and current portion of lease liabilities on the consolidated balance sheets as follows:

Operating leases:	December 31, 2024		June 30, 2024
Operating lease right-of-use assets	$	427,910	$	689,165
Current portion of operating lease liabilities	$	260,074	$	443,519
Long-term portion of operating lease liabilities		106,155		235,492
Total operating lease liabilities	$	366,229	$	679,011

Finance leases:	December 31, 2024		June 30, 2024
Property, plant and equipment, net	$	72,061	$	82,077
Current portion of finance lease liabilities	$	6,960	$	7,141
Long-term portion of finance lease liabilities		165,226		177,403
Total finance lease liabilities	$	172,186	$	184,544

The following lease costs are included in the consolidated statements of operations:

	Three months ended December 31, 2024		Three months ended December 31, 2023			Six months ended December 31, 2024		Six months ended December 31, 2023
Operating lease expense:
Operating lease expense	$	144,504	$	212,015		$	291,294	$	428,847
Short-term lease expense		-		9,665			1,629		17,353
Total operating lease expense		144,504		221,680			292,923		446,200
Finance lease expense:
Amortization of leased assets		10,016		11,653			20,402		23,488
Interest on lease liabilities		2,140		2,392			4,380		4,884
Total finance lease expense		12,156		14,045			24,782		28,372
Rental income		-		(59,088	)		-		(116,841	)
Total lease costs	$	156,660	$	176,637		$	317,705	$	357,731

The Company has calculated the weighted-average remaining lease term, presented in years below, and the weighted-average discount rate for the operating lease population. The Company uses the incremental borrowing rate as the lease discount rate, unless the lessor’s rate implicit in the lease is readily determinable, in which case it is used.

	December 31, 2024
Weighted-average remaining lease term (in years)
Operating leases		1.3
Finance expense		1.47
Weighted-average discount rate:
Operating leases		12	%
Finance expense		4.89	%

As of December 31, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows:

	Operating leases		Finance leases
2025		285,658		15,164
2026		108,278		168,542
Total minimum lease payments		393,936		183,706
Less: interest		27,707		11,520
Present value of lease obligations		366,229		172,186
Less: Current portion		260,074		6,960
Long-term portion of lease obligations		106,155		165,226