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Commitments | 3 Months Ended
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Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS | NOTE 12 – COMMITMENTS Leases On July 30, 2019, the Company entered into an operating lease for its office in Beijing. Pursuant to the lease, the delivery date of the property was August 8, 2019 but the lease term started on October 8, 2019 and expires on October 7, 2022, and has a monthly rent of RMB 207,269 without value added tax (“VAT”) (or $29,250). The lease required a security deposit of three months’ rent of RMB 677,769 (or $96,000). The Company received a six-month rent abatement, which was considered in calculating the present value of the lease payments to determine the ROU asset which is being amortized over the term of the lease. On October 8, 2022, the Company renewed this lease for another year but for half space of the previous lease, with a monthly rent of RMB 107,714 ($15,787). The Company received a one-month rent abatement. On July 30, 2019, the Company entered into a property service agreement for its office in Beijing (described above). Pursuant to the property service agreement, the agreement commenced on August 9, 2019 and will expire on October 8, 2022, and has a quarterly fee of RMB 202,352 (or $29,000). The deposit was RMB 202,352 (or $29,000). On October 8, 2022, the Company renewed this service agreement for its office in Beijing for another year, with a quarterly fee of RMB 96,476 ($14,128). The new deposit was RMB 96,476 (or $14,128). On August 28, 2019, the Company entered an operating lease for senior officers’ dormitory in Beijing. The lease has a term of two years with expiration on August 31, 2021, the monthly rent was RMB 14,500 ($2,045), payable every six months in advance. The lease was renewed for another year from September 1, 2021 to August 31, 2022 at a monthly rent of RMB 15,200 ($2,350), payable every six months in advance. On September 1, 2022, the Company entered a new six-month lease for a total rent of RMB 91,200 ($13,355), payable every three months in advance. On March 1, 2023, the Company renewed this lease for six-month for a total rent of RMB 91,200 ($13,272), payable every three months in advance. In August 2020, the Company entered into a lease for an office in Shenzhen City, China for three years from August 8, 2020 through August 7, 2023, with a monthly rent of RMB 209,911 ($29,651) for the first year. The rent will increase by 3% each year starting from the second year. On August 26, 2020, Tianjin Information entered into a lease for the office in Hangzhou City, China from September 11, 2020 to October 5, 2022. The first year rent is RMB 1,383,970 ($207,000). The second-year rent is RMB 1,425,909 ($202,800). The security deposit is RMB 115,311 ($16,400). The total rent for the lease period is to be paid in four installments. On October 6, 2022, Hangzhou took over and renewed this lease for one year, the total rent is RMB 1,178,463 ($172,575), payable every six months in advance. In May 2023, the lease was terminated. The total rent expense was RMB 848,620 ($122,253) for the year ended June 30, 2023. On May 10, 2023, Guo Hao Century entered into a lease for the office in Hangzhou City, China from May 10, 2023 to May 9, 2025. The security deposit is RMB 115,311 ($7,670). The quarterly rent is as follows:
Start Date |  | End Date |  | Rent expense |
|  |  |  | RMB |  |  | USD |
5/10/2023 |  | 8/9/2023 |  |  | 43,786 |  |  | $ | 6,060 |
8/10/2023 |  | 11/9/2023 |  |  | 66,038 |  |  |  | 9,139 |
11/10/2023 |  | 2/9/2024 |  |  | 66,038 |  |  |  | 9,139 |
2/10/2024 |  | 5/9/2024 |  |  | 64,602 |  |  |  | 8,940 |
5/10/2024 |  | 8/9/2024 |  |  | 66,038 |  |  |  | 9,139 |
8/10/2024 |  | 11/9/2024 |  |  | 66,038 |  |  |  | 9,139 |
11/10/2024 |  | 2/9/2025 |  |  | 66,038 |  |  |  | 9,139 |
2/10/2025 |  | 5/9/2025 |  |  | 63,884 |  |  | $ | 8,841 |
The Company adopted FASB ASC Topic 842 on July 1, 2019. The components of lease costs, lease term and discount rate with respect of the Company’s office lease and the senior officers’ dormitory lease with an initial term of more than 12 months are as follows:
|  | Three Months Ended September 30, 2023 |  |  | Three Months Ended September 30, 2022 |
Operating lease expense |  | $ | 74,181 |  |  | $ | 203,111 |
|  | September 30, 2023 |  |  | June 30, 2023 |
Right-of-use assets |  | $ | 65,854 |  |  | $ | 137,856 |
Lease liabilities - current |  |  | 34,367 |  |  |  | 126,640 |
Lease liabilities - noncurrent |  |  | 17,781 |  |  |  | 26,449 |
Weighted average remaining lease term |  |  | 0.36 years |  |  |  | 0.67 years |
Weighted average discount rate |  |  | 6.25 | % |  |  | 6.25 | %
The following is a schedule, by years, of maturities of the operating lease liabilities as of September 30, 2023:
12 Months Ending September 30, |  | Minimum Lease Payment |
2023 |  | $ | 36,591 |
2024 |  |  | 18,096 |
Total undiscounted cash flows |  |  | 54,687 |
Less: imputed interest |  |  | (2,539 | )
Present value of lease liabilities |  | $ | 52,148 |

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