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COMMITMENTS AND CONTINGENCIES | 9 Months Ended
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Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 11. COMMITMENTS AND CONTINGENCIES Lease Costs The Company made cash payments for all operating leases for the nine months ended March 31, 2023, of approximately $0.46 million, which was included in cash flows from operating activities within the consolidated statements of cash flows. As of March 31, 2023, the Company’s operating leases have a weighted average remaining lease term of 1.6 years and weighted average discount rate of 7.9%. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2023 AND 2022 The Company made cash payments for all operating leases for the nine months ended March 31, 2022, of approximately $0.28 million, which was included in cash flows from operating activities within the consolidated statements of cash flows. The total rent expense for all operating leases for the three and nine months ended March 31, 2023, was approximately $0.13 million and $0.41 million, respectively, with short-term leases making up an immaterial portion of such expenses. The total rent expense for all operating leases for the three and nine months ended March 31, 2022, was approximately $0.11 million and $0.29 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 4 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. Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities at March 31, 2023 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS
Years Ended June 30, |  |  |
2023 (three months) |  | $ | 137,000 |
2024 |  |  | 497,000 |
2025 |  |  | 321,000 |
2026 |  |  | 117,000 |
Total future minimum lease commitments, including short-term leases |  |  | 1,072,000 |
Less: future minimum lease payments of short -term leases |  |  | (65,000 | )
Less: imputed interest |  |  | (86,000 | )
Present value of future minimum lease payments, excluding short term leases |  | $ | 921,000 |
Current portion of operating lease liabilities |  | $ | 399,000 |
Non-current portion of operating lease liabilities |  |  | 522,000 |
Total operating lease liability |  | $ | 921,000 |
THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2023 AND 2022 Contingent Consideration for Acquisitions Contingent consideration for acquisitions, consists of the following as of March 31, 2023 and June 30, 2022 respectively: SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS
|  | As of March 31, |  |  | As of June 30, |
|  | 2023 |  |  | 2022 |
S5D, current portion |  | $ | 2,972,500 |  |  | $ | 1,397,600 |
BLI, current portion (see Note 4) |  |  | 1,017,200 |  |  |  | - |
AUGGD |  |  | - |  |  |  | 568,571 |
XRT |  |  | 134,288 |  |  |  | - |
Subtotal current portion |  |  | 4,123,988 |  |  |  | 1,966,171 |
S5D, net of current portion |  |  | 2,602,400 |  |  |  | 5,340,800 |
BLI, net of current portion (see Note 4) |  |  | 3,917,400 |  |  |  | - |
Total contingent consideration for acquisitions |  | $ | 10,643,788 |  |  | $ | 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 10). 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. Also refer to Notes 5 and 12. Potential Future Distributions Upon Divestiture or Sale Upon a divestiture or sale of certain subsidiary companies, 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. 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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