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BANK LOAN PAYABLE
9 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
BANK LOAN PAYABLE

7. BANK LOAN PAYABLE

 

In October 2022, the Company obtained a credit facility with OCBC Bank in Malaysia to provide a loan in the principal amount of MYR5,000,000 (approximately US$1,069,000) in relation to the Company’s purchase of a factory (No. 3 factory building, see Note 4). The acquisition and loan drawdown was completed in March 2023. The loan bears interest at the base lending rate, as defined, minus 2.2% (4.06% at June 30, 2025), is secured by the No. 3 factory building, matures in October 2042, and is guaranteed by certain of the Company’s shareholders.

 

In June 2023, the credit agreement with OCBC Bank was amended to provide a second loan to the Company in the principal amount of MYR4,600,000 (approximately US$975,162) in relation to the Company’s purchase of a factory (No. 5 factory building, see Note 4). The acquisition and loan drawdown was completed in February 2024. The loan bears interest at the base lending rate, as defined, minus 2.5% (4.06% at June 30, 2025), is secured by the No. 5 factory building, matures in December 2043, and is guaranteed by certain of the Company’s shareholders.

 

The total interest expenses were $73,015 and $69,459 for the nine months ended March 31, 2026 and 2025, respectively.

 

Future Minimum principal payments under the bank loans payable, secured are as follow:

 

      
2027  $86,407 
2028   90,060 
2029   93,868 
2030   97,836 
2031 onward   1,863,968 
Total   2,232,139 
Current balance   (86,407)
Non-current balance  $2,145,732