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Leases | 3 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
LEASES | NOTE 5 — LEASES The Company has multiple lease agreements for warehouses, warehouse machinery and equipment and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2024 and June 30, 2024, balance of lease liabilities was $4,538,474 and $3,693,211, respectively. The Company recognized additional operating lease liabilities of $845,263 as result of entering into two new operating lease agreements for the three months ended September 30, 2024. The ROU asset was recognized at the discount rate of 10.25% for one lease with a lease term of 1.6 years in the U.S. and 4.42% for another lease with a lease term of 2 years in China, resulting in a total of $1,244,140 on the commencement date. As of September 30, 2024, the Company did not recognize any additional finance lease liabilities. Total operating lease expenses on offices, warehouses, and warehouse equipment for the three months ended September 30, 2024 and 2023 were $466,723 and $ 219,571, respectively. Total finance lease expenses on warehouse machinery and equipment for the three months ended September 30, 2024 and 2023 were $8,016 and $7,663, respectively. Depreciation of finance lease right-of-use assets were $7,595 and $7,332 for the three months ended September 30, 2024 and 2023, respectively. The following table includes supplemental cash flow and non-cash information related to leases:
|  | For the three months ended September 30, |
|  | 2024 |  |  | 2023 |
Cash paid of amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 470,260 |  |  | $ | 222,053 |
Operating cash flows from finance leases |  | $ | 422 |  |  | $ | 331 |
Financing cash flows from finance leases |  | $ | 7,632 |  |  | $ | 6,425 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Operating lease liabilities |  | $ | 1,244,140 |  |  | $ | - |
The weighted average remaining lease terms and discount rates for all of operating lease and finance leases is as follows:
|  | September 30, 2024 |  |  | June 30, 2024 |
Weighted-average remaining lease term (years): |  |  |  |  |  |
Operating lease |  |  | 2.94 years |  |  |  | 3.05 years |
Finance lease |  |  | 1.17 years |  |  |  | 1.31 years |
Weighted average discount rate: |  |  |  |  |  |  |  |
Operating lease |  |  | 7.21 | % |  |  | 6.30 | %
Finance lease |  |  | 6.78 | % |  |  | 6.51 | %
The following is a schedule of maturities of operating and finance lease liabilities as of September 30, 2024: Operating leases
Twelve months ending September 30, |  | Repayment |
2025 |  | $ | 2,149,231 |
2026 |  |  | 1,486,618 |
2027 |  |  | 533,724 |
2028 |  |  | 554,061 |
2029 |  |  | 380,383 |
Total future minimum lease payments |  |  | 5,104,017 |
Less: imputed interest |  |  | (565,543 | )
Total operating lease liabilities |  | $ | 4,538,474 |
Financing leases
Twelve months ending September 30, |  | Repayment |
2025 |  | $ | 35,354 |
2026 |  |  | 12,439 |
2027 |  |  | 1,262 |
Total future minimum lease payments |  |  | 49,055 |
Less: imputed interest |  |  | (1,608 | )
Total finance lease liabilities |  | $ | 47,447 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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