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COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Sep. 30, 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 three months ended September 30, 2023 and 2022, of approximately $0.20 million and $0.14 million, respectively, which were included in cash flows from operating activities within the consolidated statements of cash flows. As of September 30, 2023, the Company’s operating leases have a weighted average remaining lease term of 1.5 years and weighted average discount rate of 8.3%.

 

The total rent expense for all operating leases for the three months ended September 30, 2023 and 2022, was approximately $0.11 million and $0.13 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.

 

Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities at September 30, 2023 are as follows:

SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS 

Years Ended June 30,    
2024 (remaining 9 months)  $350,000 
2025   381,000 
2026   188,000 
Total future minimum lease commitments, including short-term leases   919,000 
Less: future minimum lease payments of short -term leases   (9,000)
Less: imputed interest   (66,000)
Present value of future minimum lease payments, excluding short term leases  $844,000 
      
Current portion of operating lease liabilities  $426,000 
Non-current portion of operating lease liabilities   418,000 
Total operating lease liability  $844,000 

 

 

THE GLIMPSE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

SEPTEMBER 30, 2023 AND 2022

 

Contingent Consideration for Acquisitions

 

Contingent consideration for acquisitions, consists of the following as of September 30, 2023 and June 30, 2023, respectively (see Note 7):

  

   As of September 30,   As of
June 30,		 
   2023   2023 
S5D, current portion  $1,049,400   $1,908,800 
BLI, current portion   2,504,900    2,957,700 
XRT   65,715    254,291 
Subtotal current portion   3,620,015    5,120,791 
S5D, net of current portion   728,500    1,251,700 
BLI, net of current portion   2,392,600    3,253,300 
Total contingent consideration for acquisitions  $6,741,115   $9,625,791 

 

Employee Bonus

 

It is anticipated that a certain employee will meet the revenue threshold to earn a bonus payout of approximately $0.53 million during this fiscal year. This is included in accrued non cash performance bonus in the consolidated balance sheet at September 30, 2023. If the revenue milestone is achieved, this bonus will be paid entirely in the form of Company common stock at a share conversion price of $7.00/share. For the three months ended September 30, 2023, the fair value of this potential bonus decreased approximately $0.39 million due to a decrease in the Company’s common stock price between the measurement dates. This gain is included in sales and marketing expenses on the consolidated statement of operations.

 

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.