Leases

9 Months Ended

Mar. 31, 2025

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:	March 31, 2025		June 30, 2024
Operating lease right-of-use assets	$	348,735	$	689,165
Current portion of operating lease liabilities	$	240,619	$	443,519
Long-term portion of operating lease liabilities		43,117		235,492
Total operating lease liabilities	$	283,736	$	679,011

Finance leases:	March 31, 2025		June 30, 2024
Property, plant and equipment, net	$	62,263	$	82,077
Current portion of finance lease liabilities	$	7,046	$	7,141
Long-term portion of finance lease liabilities		163,512		177,403
Total finance lease liabilities	$	170,558	$	184,544

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

	Three months ended March 31, 2025		Three months ended March 31, 2024			Nine months ended March 31, 2025		Nine months ended March 31, 2024
Operating lease expense:
Operating lease expense	$	176,341	$	214,160		$	589,422	$	643,007
Short-term lease expense		-		1,086			1,629		1,086
Total operating lease expense		176,341		215,246			591,051		644,093
Finance lease expense:
Amortization of leased assets		9,798		11,772			30,201		35,260
Interest on lease liabilities		2,073		2,353			6,452		7,237
Total finance lease expense		11,871		14,125			36,653		42,497
Rental income		-		(59,283	)		-		(176,124	)
Total lease costs	$	188,212	$	170,088		$	627,704	$	510,466

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.

	March 31, 2025
Weighted-average remaining lease term (in years)
Operating leases		1.17
Finance expense		1.23
Weighted-average discount rate:
Operating leases		12	%
Finance expense		4.89	%

As of March 31, 2025, the maturities of our operating lease liabilities (excluding short-term leases) are as follows:

	Operating leases		Finance leases
2025	$	259,169	$	15,168
2026		43,332		164,832
Total minimum lease payments		302,501		180,000
Less: interest		18,765		9,442
Present value of lease obligations		283,736		170,558
Less: Current portion		240,619		7,046
Long-term portion of lease obligations	$	43,117	$	163,512