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Operating Leases
6 Months Ended
Dec. 31, 2022
Operating Leases  
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 5 years.

 

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, 2022:

 

2023

 

$187,777

 

2024

 

 

147,623

 

2025

 

 

135,632

 

2026

 

 

113,633

 

2027

 

 

28,684

 

Total undiscounted future minimum lease payments

 

 

613,349

 

Less: Imputed interest

 

 

(50,020)

Present value of operating lease obligation

 

$563,329

 

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of December 31, 2022 are:

 

Weighted average remaining lease term

 

33 Months

 

Weighted average incremental borrowing rate

 

 

5.0%

 

For the three and six months ended December 31, 2022, the components of lease expense, included in general and administrative expenses and interest expense in the condensed consolidated statement of operations, are as follows:

 

 

 

Three Months

Ended

December 31,

2022

 

 

Six Months

Ended

December 31,

2022

 

Operating lease cost:

 

 

 

 

 

 

Operating lease cost

 

$93,377

 

 

$186,754

 

Amortization of ROU assets

 

 

83,644

 

 

 

166,321

 

Interest expense

 

 

9,735

 

 

 

20,435

 

Total lease cost

 

$186,756

 

 

$373,510