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LEASE OBLIGATIONS

9 Months Ended

Mar. 31, 2025

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 March 31, 2025 is $36,225.

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 March 31, 2025 total $11,512. Total rent expense including base rent and common area expenses was $49,808 and $52,534 during the nine months ended March 31, 2025 and 2024, 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 March 31, 2025 total $45,435. Total rent expense including base rent and common area expenses was $103,296 and $91,819 during the nine months ended March 31, 2025 and 2024, respectively. Included in the accompanying balance sheet at March 31, 2025 is a right-of-use asset of $57,088 and current right-of-use operating lease liabilities of $57,088.

At March 31, 2025 future minimum lease payments under capital lease and operating lease obligations are as follows:


Fiscal Year Ending June 30:	Capital Leases		Operating Lease
2025	$	9,335	$	45,944
2026		28,004		11,477
Total Minimum Payments		37,339		57,421
Less: amount representing interest		1,114		333
Present value of minimum lease payments		36,225		57,088
Less: current portion		36,225		57,088
Lease Obligation, net of current portion	$	–	$	–

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 $156,143 and $147,544 for the nine months ended March 31, 2025, and 2024, respectively.