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SUBSEQUENT EVENTS

9 Months Ended

Mar. 31, 2025

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

8.	SUBSEQUENT EVENTS

On May 13, 2025, the Company entered into a First Lease Extension Agreement (the “Extension”) with Texzona Industries, Inc., pursuant to which the Company will continue to lease approximately 9,375 square feet of commercial space located at 1410 Gail Borden, El Paso, Texas. The term of Extension is for a period of 36 months commencing on June 1, 2025 and shall end on May 31, 2028.

Base rent for each year of the term is $49,219, $50,695 and $52,216. In addition to base rent, the Company is responsible for taxes, insurance and common area maintenance (“CAM”). Beginning June 1, 2025, the total estimated monthly rental payment including CAM is $5,773.

On May 14, 2025, the Company entered into a Lease Agreement (the “Southborough Lease”) with 500 Southborough, LLC (the “Southborough Landlord”), pursuant to which the Company will lease approximately 8,750 square feet of commercial space located at 500 Southborough Drive, City of South Portland, County of Cumberland, Maine (the “Southborough Premises”). The Lease provides for an initial term commencing on the date the Southborough Landlord obtains a certificate of occupancy for the Southborough Premises and all Southborough Landlord work is substantially complete and expiring on the last day of the calendar month during which the eighth anniversary of the commencement date occurs. The commencement date is anticipated to be August 1, 2025, subject to Southborough Landlord’s review of floor plans and associated estimated construction timeframe.

The Southborough Lease provides the Company with two options to extend the term for additional five-year periods, exercisable with at least nine months’ prior written notice. Base rent for the initial term is abated for the first five months following the commencement date, after which annual base rent payable is $131,250 (or $10,937.50 per month), with annual increases of 3%. Base rent for any extension term will be as agreed by the parties or, if not agreed, at 95% of the then-current fair market base rental rate for similar space in South Portland, as determined by appraisal, with annual increases of 3% during each extension term.

In addition to base rent, the Company is responsible for its proportionate share (19.34%) of operating expenses, as defined in the Southborough Lease. The Southborough Lease is structured as a triple net lease. The Company is entitled to a tenant improvement allowance of $25 per rentable square foot for fit-up costs and $0.15 per rentable square foot for architectural costs, to be disbursed as costs are incurred. The Southborough Landlord is responsible for completing certain improvements to the Southborough Premises prior to occupancy, including interior wall construction, loading area, and separate utility metering. If delivery of the Southborough Premises is delayed beyond September 1, 2025, for reasons within the Southborough Landlord’s control, the Company is entitled to one day of abated rent for each day of delay.