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Commitments and Contingencies
 3 Months Ended
Sep. 30, 2025
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

17. 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 currently not aware of any such legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results.

 

Retirement Plans

 

The Company does not maintain a defined contribution plan or any other type of retirement plan for its employees.

 

Leases

 

The Company has a non-cancellable operating lease commitment for its office facility expiring in 2028. Rent expense totaled $40,416 and $40,416 for the three months ended September 30, 2025 and 2024, respectively.

 

The following table discloses the lease cost, weighted average discount rate, and weighted average remaining lease term for operating leases as of September 30, 2025 and 2024:

 

   September 30,
2025		   September 30,
2024		 
Operating lease cost  $40,416   $40,416 
Remaining lease term   2.4 years    3.4 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 September 30, 2025:

 

Year Ended June 30,

    
2026 (remainder)  $125,765 
2027   171,407 
2028   116,160 
2029   
-
 
2030   
-
 
Total undiscounted cash flows   413,332 
Less amount representing interest   (30,255)
Present value of lease liabilities   383,077 
Less current portion   (148,440)
Noncurrent lease liabilities  $234,637 

Asset Management Agreement

 

Pursuant to the terms of the Asset Management Agreement, the Company agreed to pay the Asset Manager and 21Shares a monthly fee in arrears computed at an annual rate as follows: (i) 2% in the aggregate on amounts up to and including $1,000,000,000 in Treasury Account value, with 1.75% paid to the Asset Manager and 0.25% paid to 21Shares; (ii) 1.75% in the aggregate on amounts above $1,000,000,000 up to and including $1,500,000,000 in Treasury Account value, with 1.5% paid to the Asset Manager and 0.25% paid to 21Shares; and (iii) 1.5% in the aggregate on amounts above $1,500,000,000 in Treasury Account value, with 1.25% paid to the Asset Manager and 0.25% paid to 21Shares. Such payments may be made, in the sole discretion of the Asset Manager or 21Shares, in shares of class B common stock, cash, or Dogecoin and shall be pro-rated for partial periods.