v3.25.2
Leases
 12 Months Ended
Jun. 30, 2025
Leases [Abstract]  
LEASES

NOTE 10. LEASES

 

The Company has operating lease arrangements for office premises in Hong Kong, California and Malaysia. These leases typically have terms of two to five years.

 

Leases with an initial term of 12 months or less are not presented as right-of-use assets on the consolidated balance sheet and are expensed over the lease term. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date.

 

The balances for the right-of-use assets and lease liabilities where the Company is the lessee are presented as follow:

 

   As of   As of 
   June 30,
2025		   June 30,
2024		 
Operating lease right-of-use assets  $5,181,521   $3,579,140 
Impairment   (151,516)   - 
Total  $5,030,005   $3,579,140 
           
Operating lease liabilities – current  $1,838,815   $1,207,832 
Operating lease liabilities – non-current   3,267,522    2,194,094 
Total  $5,106,337   $3,401,926 

 

As of June 30, 2025, the maturities of our lease liabilities (excluding short-term leases) are as follows: 

 

   As of
June 30,
2025		 
July 1, 2025 to June 30, 2026  $2,110,799 
July 1, 2026 to June 30, 2027   1,583,109 
July 1, 2027 to June 30, 2028   777,402 
July 1, 2028 to June 30, 2029   696,727 
July 1, 2029 to June 30, 2030   464,484 
Total future lease payments   5,632,521 
Less: imputed interest   (526,184)
Total lease liabilities  $5,106,337 

 

The Company incurred lease costs, which include the payment of short-term leases, of $1,757,022 and $1,522,974 on the Company’s consolidated statements of operations and comprehensive loss for the years ended June 30, 2025 and 2024, respectively.

 

The Company made payments of $1,654,992 and $1,342,709 under the lease agreements during the years ended June 30, 2025 and 2024, respectively.

 

The weighted-average remaining lease term related to the Company’s lease liabilities as of June 30, 2025 and 2024 was 3.4 years and 2.7 years, respectively.

 

The discount rate related to the Company’s lease liabilities as of June 30, 2025 and 2024 was 6.4% and 7.9%. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.