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Leases
 6 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES

10. LEASES

 

The Company has operating lease arrangements for office premises in Hong Kong, California and Malaysia. These leases typically have terms of two to five years.

 

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 and lease liabilities where the Company is the lessee are presented as follow:

 

   As of
June 30,		   As of
December 31,		 
   2023   2023 
Operating lease right-of-use assets  $4,061,617   $3,969,437 
           
Operating lease liabilities – current  $944,525   $1,244,565 
Operating lease liabilities – non-current   3,356,232    3,067,909 
Total  $4,300,757   $4,312,474 

 

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

 

   As of
December 31,
2023		 
January 1, 2024 to December 31, 2024  $1,539,981 
January 1, 2025 to December 31, 2025   1,543,278 
January 1, 2026 to December 31, 2026   1,258,333 
January 1, 2027 to December 31, 2027   564,731 
Total future lease payments   4,906,323 
Less: imputed interest   (593,849)
Total lease liabilities  $4,312,474 

  

The Company incurred lease costs, which include the payment of short-term leases, of $369,185 and $335,678 on the Company’s unaudited condensed consolidated statements of operations and comprehensive loss for the three months ended December 31, 2022 and 2023, respectively. The Company incurred lease costs, which include the payment of short-term leases, of $758,735 and $734,991 on the Company’s unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended December 31, 2022 and 2023, respectively.

 

The Company made payments of $300,640 and $379,600 under the lease agreements during the three months ended December 31, 2022 and 2023, respectively. The Company made payments of $540,030 and $712,421 under the lease agreements during the three and six months ended December 31, 2022 and 2023, respectively.

 

The weighted-average remaining lease term related to the Company’s lease liabilities as of June 30, 2023 and December 31, 2023 was 4 years and 3.2 years, respectively.

 

The discount rate related to the Company’s lease liabilities as of both June 30, 2023 and December 31, 2023 was 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.