XML 31 R20.htm IDEA: XBRL DOCUMENT v3.25.1
Commitments and Contingencies
 9 Months Ended
Mar. 31, 2025
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

14. Commitments and Contingencies

 

Legal Proceedings

 

From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. The Company is aware of one legal claim and has accrued approximately $108,000 for such claim.

 

On August 20, 2024, the Company’s former Chief Executive Officer, Matthew Atkinson, filed a lawsuit against the Company in the State of Nebraska claiming compensation, unreimbursed expenses and accrued and unpaid vacation owed to him prior to his resignation in February 2024.

 

The Company is currently not aware of any other legal proceedings or claims that are expected to have a material adverse effect on its business, financial condition or operating results.

 

Leases

 

The Company has a non-cancellable operating lease commitment for its office facility expiring in 2028. Rent expense totaled $40,416 and $32,681 for the three months ended March 31, 2025 and 2024, respectively. For the nine months ended March 31, 2025 and 2024, rent expense totaled $121,248 and $90,307, respectively.

 

The following table discloses the lease cost, weighted average discount rate, and weighted average remaining lease term for operating leases as of March 31, 2025 and 2024:

 

   March 31,
2025		   March 31,
2024		 
Operating lease cost  $121,248   $90,307 
Remaining lease term   2.9 years    3.9 years 
Discount rate   6.56%   6.56%

The discount rate was determined using the Company’s external debt and was adjusted for collateralization, term and lease amount.

 

The following table discloses the undiscounted cash flows on an annual basis and a reconciliation of the undiscounted cash flows of operating lease liabilities recognized in the balance sheet as of March 31, 2025:

 

Year Ended June 30,    
2025 (remainder)  $41,461 
2026   167,226 
2027   171,407 
2028   116,160 
Total undiscounted cash flows   496,254 
Less amount representing interest   (43,690)
Present value of lease liabilities   452,564 
Less current portion   (141,627)
Noncurrent lease liabilities  $310,937 

 

On February 21, 2025, CleanCore Global entered into an Asset Purchase Agreement, which was amended on April 15, 2025 (as so amended, the “Purchase Agreement”) with Sanzonate Europe Ltd., an Irish incorporated company (the “Seller”), and Sanzonate Global Inc., the majority stockholder of the Seller (the “Stockholder”), pursuant to which CleanCore Global agreed to acquire substantially all of the assets of the Seller used in the manufacturer and distribution of aqueous ozone products (the “Business”). See Note 15 below for a description of the terms of the Purchase Agreement.