LEASE OBLIGATIONS

6 Months Ended

Dec. 31, 2021

Lease Obligations

LEASE OBLIGATIONS

5. LEASE OBLIGATIONS  

In March 2021 the Company entered into a five-year capital lease in the amount of $161,977 for manufacturing equipment. In January 2020, the Company entered into a five-year capital lease for $47,750 for manufacturing equipment. The net book value of fixed assets under capital lease obligations as of December 31, 2021 is $167,126.

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 $31,411 at December 31, 2021. Total rent expense including base rent and common area expenses was $15,705 and $15,190 during the three months ended December 31, 2021 and 2020, respectively. Included in the accompanying balance sheet at December 31, 2021 is a right-of-use asset of $31,054 and current and long-term right-of-use operating lease liabilities of $31,054 and $0, respectively.

At December 31, 2021 future minimum lease payments under the capital lease and operating lease obligations are as follows: 

Fiscal Year Ending June 30:	Capital Leases		Operating Lease
2022	$	24,309	$	31,054
2023		48,619		–
2024		48,619		–
2025		43,917		–
2026		28,006		–
Total Minimum Payments		193,470	$	31,054
Less: amount representing interest		21,605
Present value of minimum lease payments		171,865
Less: current portion		39,508
	$	132,357

The Company’s operating leases for its Gardner, Massachusetts office, production and storage spaces plus an equipment lease as well as the Windham, Maine office and production space have expired and are continuing on a month-to-month tenant at will basis. Rent expense on these operating leases was $136,744 and $83,232 for the six months ended December 31, 2021 and 2020, respectively.