Operating Leases

6 Months Ended

Dec. 31, 2021

Operating Leases

Note 7. Operating Leases

Note 7. Operating Leases

The Company has operating leases for corporate offices, warehouses and office equipment that have remaining lease terms of 1 year to 3 years.

Effective October 1, 2021, the Company entered into a 3-year lease for a California warehouse. The Company recorded a right of use asset and corresponding lease liability of $295,305. The Company will use this leased facility for assembly and distribution of finished goods.

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized in the condensed consolidated balance sheet as of December 31, 2021:

2022	136,937
2023	264,183
2024	245,697
2025	36,564
Total undiscounted future minimum lease payments	683,381
Less: Imputed interest	(39,724	)
Present value of operating lease obligation	643,657

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of December 31, 2021 are:

Weighted average remaining lease term	31 Months
Weighted average incremental borrowing rate		5.0	%

For the three and six months ended December 31, 2021, the components of lease expense, included in general and administrative expenses and interest expense in the condensed consolidated statements of operations income, are as follows:

	Three Months Ended December 31, 2021		Six Months Ended December 31, 2021
Operating lease cost:
Operating lease cost	$	48,771	$	99,285
Amortization of ROU assets	$	40,845	$	87,406
Interest expense		8,099		11,880
Total lease cost	$	97,715	$	198,571