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LEASE OBLIGATIONS

6 Months Ended

Dec. 31, 2024

4.	LEASE OBLIGATIONS

In March 2021 the Company entered into a five-year capital lease in the amount of $161,977 for manufacturing equipment. In January 2020, the Company entered into a five-year capital lease for $47,750 for manufacturing equipment. The net book value of fixed assets under capital lease obligations as of December 31, 2024 is $45,892.

On July 1, 2019, the Company entered into a three-year operating lease for its facility in El Paso, Texas, and in February 2022 extended the lease through June 2025. Remaining minimum lease payments at December 31, 2024 total $22,927. Total rent expense including base rent and common area expenses was $33,281 and $36,288 during the six months ended December 31, 2024 and 2023, respectively.

On October 4, 2021, the Company assumed the remaining term of the Windham, Maine lease as part of the Lighthouse acquisition. The lease expires on July 31, 2025. Remaining minimum lease payments on December 31, 2024 total $79,019. Total rent expense including base rent and common area expenses was $68,864 during both the six months ended December 31, 2024 and 2023. Included in the accompanying balance sheet at December 31, 2024 is a right-of-use asset of $101,946 and current right-of-use operating lease liabilities of $101,946.

At December 31, 2024 future minimum lease payments under the capital lease and operating lease obligations are as follows:


Fiscal Year Ending June 30:	Capital Leases		Operating Lease
2025	$	19,610	$	92,007
2026		28,028		11,477
Total Minimum Payments		47,638		103,484
Less: amount representing interest		1,746		1,538
Present value of minimum lease payments		45,892		101,946
Less: current portion		36,622		101,946
Lease Obligation, net of current portion	$	9,270	$	–

The Company’s four facilities in Gardner, Massachusetts, which are used for offices, production and storage spaces are leased primarily on a tenant-at-will basis. Rent expense on these operating leases was $102,540 and $97,581 for the six months ended December 31, 2024, and 2023, respectively.