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COMMITMENTS AND CONTINGENCIES | 12 Months Ended
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Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 14. COMMITMENTS AND CONTINGENCIES Lease Costs The Company made cash payments for all operating leases for the years ended June 30, 2023 and 2022, of approximately $0.60 million and $0.37 million, respectively, which were included in cash flows from operating activities within the consolidated statements of cash flows. As of June 30, 2023, the Company’s operating leases have a weighted average remaining lease term of 1.5 years and weighted average discount rate of 7.9%. The total rent expense for all operating leases for the years ended June 30, 2023 and 2022, was approximately $0.54 million and $0.41 million, respectively, with short-term leases making up an immaterial portion of such expenses. Lease Commitments The Company has various operating leases for its offices. These existing leases have remaining lease terms ranging from 1 to 3 years. Certain lease agreements contain options to renew, with renewal terms that generally extend the lease terms by 1 to 3 years for each option. The Company determined that none of its current leases are reasonably certain to renew. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities at June 30, 2023 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS
Years Ended June 30, |  |  |
2024 |  | $ | 534,000 |
2025 |  |  | 324,000 |
2026 |  |  | 120,000 |
Total future minimum lease commitments, including short-term leases |  |  | 978,000 |
Less: future minimum lease payments of short -term leases |  |  | (80,000 | )
Less: imputed interest |  |  | (69,000 | )
Present value of future minimum lease payments, excluding short term leases |  | $ | 829,000 |
Current portion of operating lease liabilities |  | $ | 406,000 |
Non-current portion of operating lease liabilities |  |  | 423,000 |
Total operating lease liability |  | $ | 829,000 |
Contingent Consideration for Acquisitions Contingent consideration for acquisitions, consists of the following as of June 30, 2023 and June 30, 2022 respectively (see Notes 4 and 7): SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS
|  | As of June 30, |  |  | As of June 30, |
|  | 2023 |  |  | 2022 |
S5D, current portion |  | $ | 1,908,800 |  |  | $ | 1,397,600 |
BLI, current portion |  |  | 2,957,700 |  |  |  | - |
AUGGD |  |  | - |  |  |  | 568,571 |
XRT |  |  | 254,291 |  |  |  | - |
Subtotal current portion |  |  | 5,120,791 |  |  |  | 1,966,171 |
S5D, net of current portion |  |  | 1,251,700 |  |  |  | 5,340,800 |
BLI, net of current portion |  |  | 3,253,300 |  |  |  | - |
Net of current portion |  |  | 3,253,300 |  |  |  | - |
Total contingent consideration for acquisitions |  | $ | 9,625,791 |  |  | $ | 7,306,971 |
AUGGD In June 2022, AUGGD achieved its initial revenue threshold as defined in the asset acquisition agreement, and was issued shares of Company stock in July 2022 reflecting the payment of additional asset acquisition consideration. The share issuance was done inclusive of netting the outstanding balance of a $0.25 million note receivable due the Company by ARI (see Note 13). This additional consideration of approximately $0.57 million was included in contingent consideration for acquisitions, current portion, in the consolidated balance sheet at June 30, 2022 and was satisfied during the year ended June 30, 2023 (see Note 10). XRT During the year ended June 30, 2023, XRT achieved certain revenue threshold as defined in the asset acquisition agreement and is expected to meet certain further thresholds in the future. Certain earned, and not yet paid, and expected to be earned additional consideration of approximately $0.25 million were included in contingent consideration for acquisitions, current portion, in the consolidated balance sheet at June 30, 2023 (see Note 7). No further contingent consideration is expected to be earned. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 Employee Bonus It is anticipated that a certain employee will meet the revenue threshold to earn a bonus payout of approximately $0.91 million in the upcoming fiscal year. This and an earned, but not yet paid, bonus of approximately $0.13 million are included in accrued bonus in the consolidated balance sheet at June 30, 2023. These bonuses will be paid entirely in the form of Company common stock. Potential Future Distributions Upon Divestiture or Sale In some instances, upon a divestiture or sale of a subsidiary company, the Company is contractually obligated to distribute up to 10% of the net proceeds from such divestiture or sale to the senior management team of the divested subsidiary company. Currently, there were no active discussions pertaining to a potential divestiture or sale of any of the Company’s subsidiaries that would trigger such distribution. COVID-19 The COVID-19 pandemic caused significant business and financial markets disruption worldwide and there was significant uncertainty around the duration of this disruption. We continue to monitor the situation and the effects on our business and operations. While some level of potential uncertainty remains, given the current state of the pandemic, we do not expect the impact of COVID-19 to be material to our business and operations.

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