7. OPERATING LEASE 

In August 2024, the Company entered a 12-month operating lease with an option to extend for four additional one-year periods. The lease provides for approximately 750 square feet of rentable area which the Company subleases. The lease was amended by changing the effective date to June 11, 2025 with the option to extend for three additional one-year periods. The addendum also modified the monthly lease payments to $2,500 effective December 11, 2025 until June 11, 2026, $2,650 the first year, $2,800 for the second year, and $2,950 for the third year of the lease. On the commencement date of the lease, the Company recorded $112,746 related to the ROU asset and lease liability.

Operating lease expense was 7,500 and $5,700 for the three months ended March 31, 2026 and 2025, respectively, and $21,000 and $19,200 for the nine months ended March 31, 2026 and 2025, respectively. Operating cash flows used for the operating leases during the nine months ended March 31, 2026 and 2025, was $2,650 and $7,200, respectively. As of March 31, 2026, the weighted average remaining lease term was 3.17 years, and the weighted average discount rate was 10%.

Future minimum lease payments under the lease as of March 31, 2026, were as follows: