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Commitments | 12 Months Ended
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Jun. 30, 2024
Commitments [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. The lease expired at maturity without renewal. On November 8, 2023, Shuhai Beijing entered into a new lease agreement for its office in Beijing. Pursuant to the agreement, the agreement commenced on November 8, 2023 and will expire on December 7, 2024, and has a monthly rent of RMB 17,358 (or $2,425). The deposit was RMB 56,762 (or $7,929). The Company received a one-month rent abatement. On November 8, 2023, Tianjin information entered into a lease agreement for its office in Beijing. Pursuant to the agreement, the agreement commenced on November 8, 2023 and will expire on December 7, 2024, and has a monthly rent of RMB 60,195 (or $8,409). The deposit was RMB 196,838 (or $27,496). The Company received a one-month rent abatement. 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. The lease expired at maturity without renewal. 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 |
On September 30, 2023, the lease was early terminated due to the management’s decision of transferring operations in Hangzhou to Beijing headquarter office for maximizing the efficiency and cost saving. 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:
|  | Year Ended June 30, 2024 |  |  | Year Ended June 30, 2023 |
Operating lease expense |  | $ | 167,969 |  |  | $ | 620,696 |
|  | June 30, 2024 |  |  | June 30, 2023 |
Right-of-use assets |  | $ | 49,345 |  |  | $ | 137,856 |
Lease liabilities - current |  |  | 53,530 |  |  |  | 124,640 |
Lease liabilities - noncurrent |  |  | - |  |  |  | 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 March 31, 2024:
12 Months Ending June 30, |  | Minimum Lease Payment |
2025 |  | $ | 54,410 |
Total undiscounted cash flows |  |  | 54,410 |
Less: imputed interest |  |  | 880 |
Present value of lease liabilities |  | $ | 53,530 |

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 440 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/440/tableOfContent + Details
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