v3.25.2
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 13. COMMITMENTS AND CONTINGENCIES

 

Lease Costs

 

The Company made cash payments for all operating leases for the years ended June 30, 2025 and 2024, of approximately $0.41 million and $0.58 million, respectively, which were included in cash flows from operating activities within the consolidated statements of cash flows. As of June 30, 2025, the Company’s operating leases have a weighted average remaining lease term of 0.60 years and weighted average discount rate of 8.20%.

 

The total rent expense for all operating leases for the years ended June 30, 2025 and 2024, was approximately $0.33 million and $0.46 million, respectively.

 

 

THE GLIMPSE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

Lease Commitments

 

The Company has various operating leases for its offices. These existing leases have remaining lease terms ranging from approximately 0.5 to 1.5 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 expected to be renewed except one. That remaining lease will not be renewed under its current terms and will be renegotiated. Therefore, said lease does not have a measurable term or rate to calculate future lease payments beyond its current term.


 

Future approximate undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities as of June 30, 2025 are as follows:

     

Years Ended June 30,    
2026   183,882 
2027   4,775 
Total future minimum lease commitments, including short-term leases   188,658 
Less: future minimum lease payments of short -term leases   (52,500)
Less: imputed interest   (4,407)
Present value of future minimum lease payments, excluding short term leases  $131,750 
      
Current portion of operating lease liabilities  $127,046 
Non-current portion of operating lease liabilities   4,704 
Total operating lease liability  $131,750 

 

Contingent Consideration for Acquisitions

 

Contingent consideration for acquisitions consists of the following as of June 30, 2025 and 2024, respectively (see Note 8):

    

   As of June 30,   As of June 30, 
   2025   2024 
BLI, current portion  $1,483,583   $1,431,761 
XRT   -    35,714 
Subtotal current portion   1,483,583    1,467,475 
BLI, net of current portion   -    1,413,696 
Total contingent consideration for acquisitions  $1,483,583   $2,881,171 

 

In addition, as a result of actual revenue not achieving targets, there is no future contingent consideration recorded related to the S5D acquisition as of June 30, 2024. The contingent consideration payout period ended in January 2025 with no further consideration payments being made.