(9) Leases

12 Months Ended

Jun. 30, 2018

Disclosure Text Block [Abstract]

(9) Leases

Operating Leases

The Company rents office, manufacturing, warehouse and storage space and office equipment under agreements which run one year or more in duration. Rent expense for the years ended June 30, 2018 and 2017 was $961,886 and $289,323, respectively. Future minimum rental payments required under operating leases that have a duration of one year or more as of June 30, 2018 are as follows:

2019	$	646,800
2020		646,800
2021		189,000
Total	$	1,482,600

The Company leases office, manufacturing and warehouse facilities in Detroit, Michigan, Hopkins, Minnesota, Northvale, New Jersey and Eagan, Minnesota from employees, shareholders and entities controlled by shareholders, who were previously principals of businesses acquired by the Company. The leases are related-party transactions. The expense associated with these related-party transactions totaled $887,926 and $160,800 for the years ended June 30, 2018 and 2017, respectively.

Capital Leases

The Company leases certain equipment and the Utah building (see Note 10) that have been determined to be capital leases. The capital lease assets are included in Property and Equipment (see Note 4). The balance of the capital lease obligation was as follows as of June 30:

	2018			2017
Balance of capital lease obligation	$	3,199,267		$	3,281,547
Less current portion		(226,727	)		(193,818	)
	$	2,972,540		$	3,087,729

At June 30, 2018, future minimum gross lease payments required under the capital leases were as follows:

2019	$	373,702
2020		380,674
2021		387,790
2022		395,040
2023		399,794
Thereafter		2,502,438
Total	$	4,439,438
Imputed interest	$	1,086,850
Deferred rent		153,321