Operating Leases

9 Months Ended

Mar. 31, 2023

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 March 31, 2023:

2023	$	94,255
2024		366,370
2025		153,458
2026		120,512
2027		28,684
Total undiscounted future minimum lease payments		763,279
Less: Imputed interest		(41,289	)
Present value of operating lease obligation	$	721,990

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2023 are:

Weighted average remaining lease term	29 Months
Weighted average incremental borrowing rate		5.0	%

For the three and nine months ended March 31, 2023, 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 March 31, 2023		Nine Months Ended March 31, 2023
Operating lease cost:
Operating lease cost	$	99,101	$	285,855
Amortization of ROU assets		67,088		233,409
Interest expense		4,595		25,030
Total lease cost	$	170,784	$	544,294