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Leases
 9 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES

9. LEASES

 

The Company has operating lease arrangements for office premises in Hong Kong and California. These leases typically have terms of two to five years and are expensed on a straight-line basis.

 

Leases with an initial term of 12 months or less are not presented as right-of-use assets on the consolidated balance sheet and are expensed over the lease term. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date.

 

The balances for the right-of-use assets where the Company is the lessee are presented as follow:

 

   As of
June 30,		   As of
March 31,		 
   2022   2023 
Right-of-use assets  $295,804   $4,359,274 
           
Lease liabilities – current  $347,541   $917,310 
Lease liabilities – non-current   
-
    3,608,580 
Total  $347,541   $4,525,890 

 

As of March 31, 2023, the maturities of our lease liabilities (excluding short-term leases) are as follows:

 

   As of
March 31,
2023		 
2024   1,243,979 
2025   1,328,088 
2026   1,372,447 
2027   1,071,992 
2028   322,704 
Total future lease payments   5,339,210 
Less: imputed interest   (813,320)
Total lease liabilities   4,525,890 

 

The Company incurred lease costs, which includes the amortization of the right-of-use assets and the payment of short-term leases, of $74,052, $256,676, $215,713 and $770,049 on the Company’s consolidated statements of operations and comprehensive (loss)income for the three months ended March 31, 2022 and 2023 and nine months ended March 31, 2022 and 2023, respectively.

 

The Company made payments of $77,734, $300,593, $226,420 and $840,549 under the lease agreements during the three months ended March 31, 2022 and 2023 and nine months ended March 31, 2022 and 2023, respectively.

 

The weighted-average remaining lease term related to the Company’s lease liabilities as of June 30, 2022 and March 31, 2023 was 2 years and 4 years, respectively.

 

The discount rate related to the Company’s lease liabilities as of both June 30, 2022 and March 31, 2023 was 6% and 8%. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.