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Leases | 12 Months Ended
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Jun. 30, 2025
Leases [Abstract] |
LEASES | NOTE 8 — 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. The Company entered into three new operating lease agreements for the year ended June 30, 2025. 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., of 4.42% for another lease with a lease term of 2 years in China, and of 4.42% for another lease with a lease term of 5 years in China, resulting in a total of $1,451,938 on the commencement date. For the year ended June 30, 2025, the Company entered into two new finance lease agreements for the year ended June 30, 2025. The ROU asset was recognized at the discount rate of 9.75% and 10.75% respectively for two leases with the lease term of 5 years and 5 years respectively in the U.S., resulting in a total of $89,003 on the commencement date. Total operating lease expenses on offices, warehouses, and warehouse equipment for the years ended June 30, 2025 and 2024 were $2,042,946 and $1,005,686, respectively. Total finance lease expenses on warehouse machinery and equipment for the years ended June 30, 2025 and 2024 were $38,540 and $32,525, respectively. Depreciation of finance lease right-of-use assets were $32,681 and $30,712 for the years ended June 30, 2025 and 2024, respectively. The following table includes supplemental cash flow and non-cash information related to leases:
|  | For the years ended, |
|  | 2025 |  |  | 2024 |
Cash paid of amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 1,540,032 |  |  | $ | 846,992 |
Operating cash flows from finance leases |  | $ | 5,859 |  |  | $ | 1,813 |
Financing cash flows from finance leases |  | $ | 30,779 |  |  | $ | 29,628 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Finance lease liabilities |  | $ | 89,003 |  |  | $ | 19,982 |
Operating lease liabilities |  | $ | 1,451,938 |  |  | $ | 2,094,498 |
The weighted average remaining lease terms and discount rates for all of operating lease and finance leases is as follows:
|  | June 30, 2025 |  |  | June 30, 2024 |
Weighted-average remaining lease term (years): |  |  |  |  |  |  |  |
Operating lease |  |  | 2.44 years |  |  |  | 3.05 years |
Finance lease |  |  | 3.19 years |  |  |  | 1.31 years |
Weighted average discount rate: |  |  |  |  |  |  |  |
Operating lease |  |  | 7.00 | % |  |  | 6.30 | %
Finance lease |  |  | 9.32 | % |  |  | 6.51 | %
The following is a schedule of maturities of operating and finance lease liabilities as of June 30, 2025: Operating leases
Twelve months ending June 30, |  | Repayment |
2026 |  | $ | 2,500,558 |
2027 |  |  | 574,730 |
2028 |  |  | 594,275 |
2029 |  |  | 567,260 |
2030 |  |  | 22,823 |
Total future minimum lease payments |  |  | 4,259,646 |
Less: imputed interest |  |  | (376,574 | )
Total operating lease liabilities |  | $ | 3,883,072 |
Financing leases
Twelve months ending June 30, |  | Repayment |
2026 |  | $ | 53,409 |
2027 |  |  | 24,810 |
2028 |  |  | 21,656 |
2029 |  |  | 21,656 |
2030 |  |  | 7,219 |
Total future minimum lease payments |  |  | 128,750 |
Less: imputed interest |  |  | (15,448 | )
Total finance lease liabilities |  | $ | 113,302 |

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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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