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LEASES

3 Months Ended

Sep. 30, 2024

NOTE 10 - LEASES

Lessee

The Company leases offices space and warehouse under non-cancelable operating leases, with terms ranging from one to seven and a half years. The lease terms vary from 2 years to 7.5 years. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of ROU assets and lease liabilities. Lease expenses for lease payment are recognized on a straight-line basis over the lease term. Leases with initial terms of 12 months or less are not recorded on the balance sheet.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below presents the operating lease related assets and liabilities recorded on the balance sheets.

	September 30, 2024		June 30, 2024

ROU lease assets	$	161,693	$	146,035

Operating lease liabilities – current		301,980		272,787
Operating lease liabilities – non-current		25,182		-
Total operating lease liabilities	$	327,162	$	272,787

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of September 30, 2024 and June 30, 2024:

	September 30, 2024			June 30, 2024

Remaining lease term and discount rate:
Weighted average remaining lease term (years)		1.11			1.00
Weighted average discount rate		4.33	%		4.38	%

The components of lease expenses for continuing operations were as follows:


	For the three months ended September 30,
	2024		2023
Lease cost
Amortization of right-of-use assets	$	38,174	$	15,275
Interest of operating lease liabilities		1,286		2,275
Total lease cost	$	39,460	$	17,550

Rent expenses totaled US$91,018 and US$40,551 from the continuing operations for the three months ended September 30, 2024 and 2023, respectively.

Rent expenses totaled nil and US$51,778 from the discontinued operations for the three months ended September 30, 2024 and 2023, respectively.

The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2024:


Remainder of 2025	$	298,650
2026		25,660
2027		6,415
Total lease payments		330,725
Less: imputed interest		(3,563	)
Present value of lease liabilities	$	327,162

Lessor

On September 21, 2023, the Company entered into a two-year rental agreement with a third party to lease its property for its office space. Rental income of US$15,468 and nil was recorded in other income, net on the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) for the three months ended September 30, 2024 and 2023, respectively.