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LEASE OBLIGATIONS

6 Months Ended

Dec. 31, 2025

4.	LEASE OBLIGATIONS

In March 2021 the Company entered into a five-year capital lease in the amount of $161,977 and in January 2020, the Company entered into a five-year capital lease for $47,750, both for manufacturing equipment. The net book value of fixed assets under capital lease obligations as of December 31, 2025 is $9,268.

On July 1, 2019 the Company entered into a three-year operating lease for its facility in El Paso, Texas, and in February 2022 the Company entered into an extension of the lease for an additional three years through June 2025. In May 2025, this lease was extended for an additional three years through May 2028. Remaining minimum lease payments at December 31, 2025 total $123,419. Total lease costs including base rent and common area expenses was $39,329 and $33,281 during the six months ending December 31, 2025 and 2024, respectively. Included in the accompanying balance sheet at December 31, 2025 is a right-of-use asset of $110,371 and current and long-term operating lease liabilities of $42,138 and $69,103, respectively.

On May 15, 2025 the Company entered into a eight-year lease in South Portland, Maine with two five-year extension options. Remaining minimum lease payments at December 31, 2025 total $1,112,388. Total lease costs including base rent and common area expenses was $81,653 during the six months ending December 31, 2025. The amount of variable lease payments is immaterial. Included in the accompanying balance sheet at December 31, 2025 is a right-of-use asset of $544,254 and current and long-term operating lease liabilities of $66,374 and $743,173, respectively. The applicable discount rate utilized for this lease at commencement was 9.0%.

On June 2, 2025 the Company entered into a seven-year operating lease in Littleton, Massachusetts with two five-year extension options.

Remaining minimum lease payments at December 31, 2025 total $2,588,721. Total lease costs including base rent and common area expenses was $121,823 during the six months ending December 31, 2025. The amount of variable lease payments is immaterial. Included in the accompanying balance sheet at December 31, 2025 is a right-of-use asset of $1,785,927 and current and long-term operating lease liabilities of $105,222 and $1,802,528, respectively. The applicable discount rate utilized for this lease at commencement was 9.0%.

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


Fiscal Year Ending June 30:	Capital Leases		Operating Leases
2026	$	9,335	$	180,716
2027		–		555,198
2028		–		567,327
2029		–		535,107
2030		–		551,240
2031 and thereafter		–		1,434,940
Total Minimum Payments		9,335		3,824,528
Less: amount representing interest		67		995,990
Present value of minimum lease payments		9,268		2,828,538
Less: current portion		9,268		213,734
Future minimum long-term lease liability	$	–	$	2,614,804

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 $101,918 and $102,540 for the six months ended December 31, 2025, and 2024, respectively.