3. LEASE OBLIGATIONS

6 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

LEASE OBLIGATIONS

3. LEASE OBLIGATION

The Company entered into a five-year capital lease obligation in January 2016 for the acquisition of manufacturing equipment totaling $51,252.

In February 2016, FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires the recognition of lease asset and lease liabilities by lessees for those leases currently classified as operating leases with terms greater than twelve months and make certain changes to the accounting for lease expenses. The Company adopted this standard effective July 1, 2019 and has reflected its impact upon the El Paso, Texas facility operating lease entered into on July 1, 2019 in connection with the Ross Optical acquisition. The facility lease is a three-year operating lease obligation with total remaining minimum lease payments of $154,981 at December 31, 2019. Total rent expense including base rent and common area expenses were $15,190 and $30,381 during the three and six months ended December 31, 2019, respectively. Included in the accompanying balance sheet at December 31, 2019 is a right-of-use asset of $145,428 and current and long-term right-of-use operating lease liabilities of $55,247 and $90,181, respectively.

At December 31, 2019, future minimum lease payments under the capital lease and operating lease obligations are as follows:

Fiscal Year Ending June 30:	Capital Lease		Operating Lease
2020	$	5,979	$	30,380
2021		5,126		61,779
2022		–		62,822
Total Minimum Payments		11,105	$	154,981
Less: amount representing interest		1,211
Present value of minimum lease payments		9,894
Less: current portion		9,894
	$	–