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COMMITMENTS AND CONTINGENCIES | 9 Months Ended
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Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Lease Costs The Company made cash payments for all operating leases for the nine months ended March 31, 2024 and 2023, of approximately $0.46 million and $0.46 million, respectively, which were included in cash flows from operating activities within the consolidated statements of cash flows. As of March 31, 2024, the Company’s operating leases have a weighted average remaining lease term of 1.24 years and weighted average discount rate of 8.37%. The total rent expense for all operating leases for the three months ended March 31, 2024 and 2023, was approximately $0.21 million and $0.13 million, respectively, with short-term leases making up an immaterial portion of such expenses. The total rent expense for all operating leases for the nine months ended March 31, 2024 and 2023, was approximately $0.35 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 approximately 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 March 31, 2024 are as follows: SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS
Years Ended June 30, |  |  |
2024 (remaining 3 months) |  | $ | 122,000 |
2025 |  |  | 388,000 |
2026 |  |  | 177,000 |
Total future minimum lease commitments, including short-term leases |  |  | 687,000 |
Less: future minimum lease payments of short -term leases |  |  | (23,000 | )
Less: imputed interest |  |  | (39,000 | )
Present value of future minimum lease payments, excluding short term leases |  | $ | 625,000 |
Current portion of operating lease liabilities |  | $ | 413,000 |
Non-current portion of operating lease liabilities |  |  | 212,000 |
Total operating lease liability |  | $ | 625,000 |
THE GLIMPSE GROUP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2024 AND 2023 Contingent Consideration for Acquisitions Contingent consideration for acquisitions, consists of the following as of March 31, 2024 and June 30, 2023 respectively (see Note 6): SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS
|  | As of March 31, |  |  | As of June 30, |
|  | 2024 |  |  | 2023 |
S5D, current portion |  | $ | - |  |  | $ | 1,908,800 |
BLI, current portion |  |  | 2,918,939 |  |  |  | 2,957,700 |
XRT |  |  | - |  |  |  | 254,291 |
Subtotal current portion |  |  | 2,918,939 |  |  |  | 5,120,791 |
S5D, net of current portion |  |  | - |  |  |  | 1,251,700 |
BLI, net of current portion |  |  | 1,414,682 |  |  |  | 3,253,300 |
Total contingent consideration for acquisitions |  | $ | 4,333,621 |  |  | $ | 9,625,791 |
Employee Bonus During this fiscal year, a certain employee met the revenue threshold to earn a bonus payout and this was included in accrued non cash performance bonus in the consolidated balance sheet at June 30, 2023. This bonus was paid in February 2024 entirely in the form of Company common stock with a fair value of approximately $0.36 million. For the three and nine months ended March 31, 2024, the fair value of this potential bonus decreased approximately zero and $0.55 million, respectively, 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 condensed consolidated statement of operations. Potential Future Distributions Upon Divestiture or Sale In some instances, upon a divestiture or sale of a subsidiary company or capital raise into subsidiary company, the Company is contractually obligated to distribute a portion of the net proceeds or capital raise to the senior management team of the divested subsidiary company. There are no such distributions expected currently.

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