LEASE COMMITMENTS |
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| LEASE COMMITMENTS | NOTE 7. LEASE COMMITMENTS
The Company has operating lease obligations for office spaces at its headquarters location for AtlasClearing and for a corporate apartment utilized for business purposes.
The various leases have the following characteristics:
The Company renewed a three-year operating lease for office space in February 2024, which will expire January 31, 2027. The terms of the agreement call for an annual 3% escalation in rents and one three-year renewal option at market rates.
The Company entered into a sublease agreement for additional office space in February 2026. The sublease commenced on March 1, 2026 and expires February 28, 2029. The lease provides for annual rent escalations over the lease term.
The Company entered into an operating lease for a corporate apartment in February 2026. The lease commenced on February 4, 2026 and expires April 2, 2027.
The Company entered into an operating lease for a corporate office in June 2026. The lease commenced on June 11, 2026 and expires August 31, 2029.
Rent expense under the four operating agreements totaling $235,040 and $195,266 for the years ended June 30, 2026 and 2025, respectively, was charged to operations during the fiscal years ended June 30, 2026 and 2025, respectively. The following is the future minimum payments required by the office lease agreements in effect at June 30, 2026:
As disclosed in Note 2, the Company adopted ASU No. 2016-02, Leases (Topic 842), which requires leases with durations greater than 12 months to be recognized on the statement of financial condition. The Company uses its estimated cost-of-capital at lease commencement as its interest rate, as the operating leases do not provide readily determinable implicit interest rates.
The following table presents the Company’s lease-related assets and liabilities as of June 30, 2026 and 2025:
The following table presents the weighted-average remaining lease term and weighted-average discount rates related to the Company’s operating leases as of June 30, 2026 and 2025:
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