(9) Leases

12 Months Ended

Jun. 30, 2019

Leases [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, 2019 and 2018 was $1,087,987 and $961,886, respectively. Future minimum rental payments required under operating leases that have a duration of one year or more as of June 30, 2019 are as follows:

2020		1,030,538
2021		508,782
Total	$	1,539,320

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 $1,041,187 and $887,926 for the years ended June 30, 2019 and 2018, 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:

	2019			2018
Balance of capital lease obligation	$	3,199,022		$	3,199,267
Less current portion		(283,781	)		(226,727	)
	$	2,915,241		$	2,972,540

At June 30, 2019, future minimum gross lease payments required under the capital leases were as follows:

2020	$	454,150
2021		461,266
2022		468,516
2023		442,631
2024		384,754
Thereafter		2,113,348
Total	$	4,324,665
Imputed interest	$	948,462
Deferred rent		177,181