NOTE 15. COMMITMENTS AND CONTINGENCIES

Lease Costs

The Company made cash payments for all operating leases for the years ended June 30, 2026 and 2025, of approximately $0.22 million and $0.27 million, respectively, which were included in net cash used in operating activities within the consolidated statements of cash flows. As of June 30, 2026, the Company’s operating leases have a weighted average remaining lease term of 0.58 years and weighted average discount rate of 8.44%.

The total rent expense for all operating leases for the years ended June 30, 2026 and 2025, was approximately $0.21 million and $0.29 million, respectively.

Lease Commitments

The Company has two operating leases for its offices. These existing leases have remaining lease terms ranging from approximately 0.34 to 0.58 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. Lease renewals have not been determined at this time.

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, 2026 are as follows:

    SCHEDULE OF UNDISCOUNTED LEASE PAYMENTS   

Contingent Consideration for Acquisitions

Contingent consideration for acquisition consists of the following as of June 30, 2026 and 2025, respectively (see Note 8):

  SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS