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Loans Payable | 3 Months Ended
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Sep. 30, 2024
Loans Payable [Abstract] |
LOANS PAYABLE | NOTE 7 — LOANS PAYABLE The Company obtained multiple loans to finance the purchase of vehicles and warehouse machinery and obtained other loans to support its working capital needs. The loan balance consists of the following:
|  | September 30, 2024 |  |  | June 30, 2024 |
Equipment loans |  | $ | 70,602 |  |  | $ | 84,357 |
Vehicle loans |  |  | 132,048 |  |  |  | 146,283 |
Other loans |  |  | 387,241 |  |  |  | 652,697 |
Total |  |  | 589,891 |  |  |  | 883,337 |
Less: loan payable, current |  |  | (484,725 | ) |  |  | (746,962 | )
Loan payable, non-current |  | $ | 105,166 |  |  | $ | 136,375 |
Equipment loans On December 7, 2020, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $48,033 at a fixed interest rate of 3.99% per annum with a maturity date of December 1, 2025. The loan balance was $12,920 and $15,427 as of September 30, 2024 and June 30, 2024, respectively. On March 9, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $12,700 at a fixed interest rate of 3.99% per annum with a maturity date of July 6, 2025. The loan balance was $2,815 and $3,642 as of September 30, 2024 and June 30, 2024, respectively. On April 7, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $12,700 at a fixed interest rate of 3.99% per annum with a maturity date of July 6, 2025. The loan was guaranteed by Mr. Henry Liu, the Chairman of the Board and CEO. The loan balance was $2,815 and $3,642 as of September 30, 2024 and June 30, 2024, respectively. On June 4, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $26,800 at a fixed interest rate of 3.79% per annum with a maturity date of June 3, 2025. The loan balance was $5,339 and $7,085 as of September 30, 2024 and June 30, 2024, respectively. On June 14, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $20,724 at a fixed interest rate of 6% per annum with a maturity date of August 06, 2024. The loan balance was $nil and $1,252 as of September 30, 2024 and June 30, 2024, respectively. On July 13, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $8,465 at a fixed interest rate of 6% per annum with a maturity date of June 30, 2024. The loan balance was $nil and $256 as of September 30, 2024 and June 30, 2024, respectively. On September 28, 2021, the Company entered into another equipment loan with Toyota Commercial Finance for a principal amount of $23,600 at a fixed interest rate of 3.54% per annum with a maturity date of June 30, 2024. The loan balance was $nil and $690 as of September 30, 2024 and June 30, 2024, respectively. On February 21, 2023, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $29,705 at a fixed interest rate of 7.90% per annum with a maturity date of February 20, 2027. The loan balance was $19,051 and $20,823 as of September 30, 2024 and June 30, 2024, respectively. On June 10, 2021, the Company entered into an equipment loan with Amur Equipment Finance for a principal amount of $41,239 at a fixed interest rate of 13.92% per annum with a maturity date of June 9, 2026. The loan is personally guaranteed by Henry Liu, the Chairman of the Board and CEO. The loan term was 5 years. The loan balance was $16,764 and $18,972 as of September 30, 2024 and June 30, 2024, respectively. On September 9, 2021, the Company entered into an equipment loan with Hatachi Capital America Corp. for a principal amount of $28,450 at a fixed interest rate of 9.49% per annum with a maturity date of March 15, 2026. The loan balance was $10,898 and $12,569 as of September 30, 2024 and June 30, 2024, respectively. The Company made the total principal repayments of $13,755 and $15,824 in connection with the above equipment loans during the three months ended September 30, 2024 and 2023, respectively. Interest expenses for the above-mentioned equipment loans amounted to $1,640 and $2,681 during the three months ended September 30, 2024 and June 30, 2024, respectively. Vehicle loans On May 20, 2020, the Company entered into a vehicle loan with BMW Financial Services for a principal amount of $77,844 at a fixed interest rate of 0.9% per annum with a maturity date of June 4, 2025. The loan balance was $11,902 and $15,853 as of September 30, 2024 and June 30, 2024, respectively. On July 29, 2021, the Company entered into a vehicle loan with AutoNation Honda O’Hare for a principal amount of $41,851 at a fixed interest rate of 1.90% per annum with a maturity date of August 10, 2025. The loan was guaranteed by Mr. Henry Liu, the Chairman of the Board and CEO. The loan balance was $9,875 and $12,540 as of September 30, 2024 and June 30, 2024, respectively. On June 3, 2022, the Company entered into a vehicle loan with Tesla, Inc. for a principal amount of $101,050 at a fixed interest rate of 3.24% per annum with a maturity date of June 18, 2027. The loan balance was $57,637 and $62,630 as of September 30, 2024 and June 30, 2024, respectively. On January 23, 2023, the Company entered into a vehicle loan with Tesla, Inc. for a principal amount of $68,540 at a fixed interest rate of 5.34% per annum with a maturity date of February 9, 2029. The loan balance was $52,634 and $55,259 as of September 30, 2024 and June 30, 2024, respectively. The Company made the total principal repayments of $14,235 and $13,854 in connection with the above vehicle loans during the three months ended September 30, 2024 and 2023, respectively. Interest expenses for the above-mentioned above vehicle loans amounted to $1,308 and $1,689 during the three months ended September 30, 2024 and June 30, 2024, respectively. Other loans
|  | September 30, 2024 |  |  | June 30, 2024 |
Loan A |  | $ | 150,000 |  |  | $ | 150,000 |
Loan B |  |  | — |  |  |  | 200,000 |
Loan C |  |  | 50,000 |  |  |  | 50,000 |
Loan D |  |  | 125,000 |  |  |  | 175,000 |
Loan E |  |  | 62,241 |  |  |  | 77,697 |
Total |  | $ | 387,241 |  |  | $ | 652,697 |
(a) | The Company entered a loan of $300,000 with an unrelated party on March 1, 2022. The loan is unsecured, with a fixed interest of 15% per annum and payable on monthly basis, for 6 months period and matured on September 1, 2022. On September 1, 2022, both parties agreed to extend the loan’s principal payment term to on demand.
(b) | The Company entered a loan of $200,000 with an unrelated party on July 26, 2021. The loan is unsecured, with no interest bearing for 6 months period and matured on January 25, 2022. The Company paid a principal of $100,000 during the year ended June 30, 2021 and both parties agreed to extend the remaining principal balance of $100,000 payment term to on demand. On April 8, 2024, the Company entered another loan of $100,000 with the same party. The loan is unsecured, with no interest bearing for a 6-month period and matured on September 7, 2024. The Company has made repayment of $200,000 during the three months ended September 30, 2024.
(c) | The Company entered a loan agreement of 50,000 with an employee on October 27, 2021. The loan is non-interest bearing, for a 12-month period, and matured on October 26, 2022.
On October 26, 2022, both parties agreed to extend the loan term to on demand.
(d) | The Company entered a loan agreement of $100,000 with an unrelated party on July 3, 2023. The loan is non-interest bearing, for a 6-month period.
On April 10, 2024, the Company entered another loan agreement of $75,000 with same party. The loan is non-interest bearing, for a 6-month period, and matured on September 9, 2024. The Company made repayment of $50,000 during the three months ended September 30, 2024. Both parties agreed to extend the remaining principal balance of $125,000 payment term to on demand
| (e) | The Company entered a loan of $125,000 with an unrelated party on August 17, 2023. The loan is personally guaranteed by Henry Liu, the Chairman of the Board and CEO, with a fixed interest of 16.00% per annum for 24 months period and matured on August 16, 2025. The monthly payment is $6,120 blending of interest and principal.
The Company made the total principal repayments of $265,456 and $122,137 in connection with the above other loans during the three months ended September 30, 2024 and 2023, respectively. Interest expenses for the above-mentioned other loans amounted to $16,515 and $18,084 during the three months ended September 30, 2024 and 2023, respectively. The repayment schedule for the Company’s loans is as follows:
Twelve months ending September 30, |  | Vehicle loans |  |  | Equipment loans |  |  | Others |  |  | Total |
2025 |  | $ | 57,279 |  |  | $ | 48,823 |  |  | $ | 392,320 |  |  | $ | 498,422 |
2026 |  |  | 35,353 |  |  |  | 23,878 |  |  |  | - |  |  |  | 59,231 |
2027 |  |  | 29,866 |  |  |  | 3,619 |  |  |  | - |  |  |  | 33,485 |
2028 |  |  | 13,406 |  |  |  | - |  |  |  | - |  |  |  | 13,406 |
2029 |  |  | 5,586 |  |  |  | - |  |  |  | - |  |  |  | 5,586 |
Total undiscounted borrowings |  |  | 141,490 |  |  |  | 76,320 |  |  |  | 392,320 |  |  |  | 610,130 |
Less: imputed interest |  |  | (9,442 | ) |  |  | (5,718 | ) |  |  | (5,079 | ) |  |  | (20,239 | )
Total |  | $ | 132,048 |  |  | $ | 70,602 |  |  | $ | 387,241 |  |  | $ | 589,891 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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