Operating Leases

3 Months Ended

Sep. 30, 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 September 30, 2023:

2024	$	517,099
2025		619,080
2026		644,121
2027		270,054
2028		244,013
Thereafter		21,115
Total undiscounted future minimum lease payments		2,315,483
Less: Imputed interest		(197,895	)
Present value of operating lease obligation	$	2,117,588

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of September 30, 2023 are:

Weighted average remaining lease term	44 Months
Weighted average incremental borrowing rate		5.0	%

For the three months ended September 30, 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 September 30, 2023
Operating lease cost:
Operating lease cost	$	174,212
Amortization of ROU assets		170,970
Interest expense		26,347
Total lease cost	$	371,529