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Operating Leases

9 Months Ended

Mar. 31, 2024

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 fiscal 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, 2024:

2024	$	131,679
2025		508,665
2026		529,284
2027		268,530
2028		246,013
Thereafter		21,114
Total undiscounted future minimum lease payments		1,705,285
Less: Imputed interest		(137,670	)
Accrued adverse lease obligation		291,244
Present value of operating lease obligation	$	1,858,859

In October 2023, the Company consolidated its Delray Beach facility with the Tampa facility and recognized a lease impairment of 291,244, which is accrued as part of the $803,558 current portion of operating lease payable.

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2024 are:

Weighted average remaining lease term		43 Months
Weighted average incremental borrowing rate			5.0	%

For the three and nine months ended March 31, 2024, 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, 2024		Nine Months Ended March 31, 2024
Operating lease cost:
Operating lease cost	$	148,794	$	462,496
Amortization of ROU assets		144,983		455,006
Interest expense		19,587		66,832
Total lease cost	$	313,364	$	984,334

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