Leases

9 Months Ended

Mar. 31, 2026

Note 18 - Leases

On February 15, 2022, upon completion of the acquisition of Anivia Limited, the Company assumed an operating lease for offices located in the People’s Republic of China. In July 2023, the Company renewed the lease contract for its existing office plus additional office space. The lease term is for three years expiring on July 14, 2026. The total base rental fee for these offices is approximately $19,406 per month. In September 2024, the Company terminated the lease contract of the office space.

On July 28, 2021, the Company entered into a Lease agreement (the “Lease Agreement”) with 9th & Vineyard, LLC, a Delaware limited liability company (the “Landlord”), to lease from the Landlord approximately 99,347 square feet of space located at 8798 9th Street, Rancho Cucamonga, California (the “Premises”). The term of the Lease Agreement is for 62 months, commencing on the date on which the Landlord completes certain prescribed improvements on the property (the “Rent Commencement Date”). The Lease Agreement does not provide for an option to renew. Under the Lease Agreement, the Company is responsible for its pro rata share of certain costs, including utility costs, insurance and common area costs, as further detailed in the Lease Agreement. In addition, following the Rent Commencement Date, the first two months of the Base Rent were abated.

The lease did not start under the original agreement as the construction was not completed. On February 23, 2022, the Company entered into an amended agreement to extend the lease term to 74 months. Under the amended agreement, the lease commenced on February 10, 2022, with rent payments commencing May 11, 2022 and the lease expiring on May 31, 2028. The base rental fee is $114,249, increasing gradually over time to $140,079 per month through the expiration date of May 31, 2028.

On May 1, 2022, the Company leased another fulfillment center in Duarte, California. The base rental fee is $56,000 to $59,410 per month through April 30, 2025. The lease had been expired without renewal since May 1, 2025.

In September 2024, DHS entered into a sublease agreement with a third-party entity for office space in Shenzhen. The lease term is for one year from October 1, 2024 to September 30, 2025. The lease is treated as short-term lease and the base rental fee is approximately $10,000 per month.


	For the Three Months Ended March 31,
	2026		2025
Lease cost
Operating lease cost (included in G&A in the Company's statement of operations)	$	361,746	$	534,836
Short-term lease expenses		–		28,880

Other information
Cash paid for amounts included in the measurement of lease liabilities	$	386,460	$	552,768
Remaining term in years		2.17		0.08 – 3.17
Average discount rate - operating leases		5%		5 - 6%

	For the Nine Months Ended March 31,
	2026		2025
Lease cost
Operating lease cost (included in G&A in the Company's statement of operations)	$	1,085,237	$	1,798,416
Short-term lease expenses		9,781		252,948

Other information
Cash paid for amounts included in the measurement of lease liabilities	$	1,143,483	$	1,837,011
Remaining term in years		2.17		0.08 – 3.17
Average discount rate - operating leases		5%		5 - 6%

The supplemental balance sheet information related to leases for the period is as follows:


Operating leases	03/31/2026		6/30/2025
Right of use asset - non-current	$	2,966,202	$	3,915,539

Lease Liabilities – current		1,450,340		1,361,111
Lease Liabilities - non-current		1,817,153		2,913,967
Total operating lease liabilities	$	3,267,493	$	4,275,078

Maturities of the Company’s lease liabilities are as follows:


	Operating
	Lease
For Year ending June 30:
2026	$	390,434
2027		1,586,572
2028		1,459,411
Less: Imputed interest/present value discount		(168,924	)
Present value of lease liabilities	$	3,267,493