4. LEASE OBLIGATION

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

LEASE OBLIGATION

4. LEASE OBLIGATION

In January 2020 the Company entered into a five-year capital lease and a twelve-month capital lease in the amounts of $47,750 and $65,463 respectively, for manufacturing equipment. The net book value of fixed assets under capital lease obligations as of December 31, 2020 is $90,570.

On July 1, 2019 the Company entered into a three-year operating lease for its facility in El Paso, Texas with total remaining minimum lease payments of $93,711 at December 31, 2020. Total rent expense including base rent and common area expenses was $23,090 and $15,190 during the three months ended December 31, 2020 and 2019, respectively. Included in the accompanying balance sheet at December 31, 2020 is a right-of-use asset of $90,181 and current and long-term right-of-use operating lease liabilities of $59,127 and $31,054, respectively.

At December 31, 2020, future minimum lease payments under the capital lease and operating lease obligations are as follows:

Fiscal Year Ending June 30:	Capital Leases		Operating Lease
2021	$	11,095	$	30,889
2022		11,280		62,822
2023		11,280		–
2024		11,280		–
2025		6,580		–
Total Minimum Payments		51,515	$	93,711
Less: amount representing interest		5,905
Present value of minimum lease payments		45,610
Less: current portion		14,293
	$	31,317

The Company’s operating leases for its three Gardner, Massachusetts office, production and storage spaces plus an equipment lease have expired and are continuing on a month to month tenant at will basis. Rent expense on these operating leases was $83,231 and $72,827 for the six months ended December 31, 2020 and 2019, respectively.