LEASE OBLIGATIONS

9 Months Ended

Mar. 31, 2024

Lease Obligations

LEASE OBLIGATIONS

4. 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 March 31, 2024 is $44,103.

On July 1, 2019, the Company entered into a three-year operating lease for its facility in El Paso, Texas, and in February 2022 extended the lease through June 2025. Remaining minimum lease payments at March 31, 2024 total $55,637. Total rent expense including base rent and common area expenses was $16,247 and $15,973 during the three months ended March 31, 2024 and 2023, respectively.

On October 4, 2021, the Company assumed the remaining term of the Windham, Maine lease as part of the Lighthouse acquisition. The lease expires on July 31, 2025. Remaining minimum lease payments on March 31, 2024 total $177,293. Total rent expense including base rent and common area expenses was $34,432 and $36,495 during the three months ended March 31, 2024 and 2023, respectively. Included in the accompanying balance sheet at March 31, 2024 is a right-of-use asset of $232,930 and current and long-term right-of-use operating lease liabilities of $175,961 and $56,969, respectively.

At March 31, 2024 future minimum lease payments under the capital lease and operating lease obligations are as follows:

Fiscal Year Ending June 30:	Capital Leases		Operating Lease
2024	$	12,155	$	42,931
2025		43,919		178,569
2026		28,028		11,430
Total Minimum Payments	$	84,102	$	232,930
Less: amount representing interest		4,575
Present value of minimum lease payments		79,527
Less: current portion		43,301
Lease Obligation, net of current portion	$	36,226

The Company’s operating leases for its Gardner, Massachusetts office, manufacturing and warehousing space and an equipment lease have expired and continue on a month-to-month tenant-at-will basis. Rent expense on these operating leases was $147,544 and $150,862 for the nine months ended March 31, 2024 and 2023, respectively.