| SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES |
The
table below presents the lease-related assets and liabilities recorded on the balance sheet.
SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES
| | |
2025 | | |
2024 | |
| | |
As of June 30, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Assets | |
| | | |
| | |
| Right-of-use asset (1) | |
$ | 720,000 | | |
$ | 720,000 | |
| Right-of-use assets (2) | |
| 162,092 | | |
| 64,910 | |
| Total RoU assets | |
$ | 882,092 | | |
$ | 784,910 | |
| Less: Accumulated amortization | |
| (363,717 | ) | |
| (275,428 | ) |
| Operating lease right of use assets | |
$ | 518,375 | | |
| 509,482 | |
| | |
| | | |
| | |
| Liabilities | |
| | | |
| | |
| Current: | |
| | | |
| | |
| Operating lease liabilities | |
$ | 38,311 | | |
$ | 24,881 | |
| Finance lease liabilities | |
| - | | |
| 22,323 | |
| Total lease liabilities current | |
| 38,311 | | |
| 47,204 | |
| | |
| | | |
| | |
| Finance lease liabilities – assets held for sale | |
$ | - | | |
$ | 603,252 | |
| Total Current Lease Liabilities | |
$ | 38,311 | | |
| 650,456 | |
| | |
| | | |
| | |
| Non-current: | |
| | | |
| | |
| Operating lease liabilities | |
$ | 91,639 | | |
$ | 4,602 | |
| Finance lease liabilities | |
| - | | |
| 86,565 | |
| Total Non-current Lease Liabilities | |
| 91,639 | | |
| 91,167 | |
| | |
| | | |
| | |
| Total lease liabilities | |
$ | 129,950 | | |
$ | 741,623 | |
| (1) | | This leasing arrangement
for the lease of the Segama factory amounting to $720,000
is for a lease term of seven (7)
years and included an exclusive right and option to purchase the factory site, together with all its right title and interest, for a
consideration to be mutually agreed between the parties at any time during the period of two years from the date of the Lease Agreement
ended March 1, 2024. The option was not exercised and has lapsed. |
There
are no corresponding lease liabilities recorded as the lease payments for the entire lease period has been paid upfront upon inception
of the agreement.
| (2) | | The Company through
its wholly owned subsidiary VRI entered into various lease arrangements for the use of motor vehicles for lease term of three (3) to
four (4) years which expire at various dates through 2029. Certain of the lease arrangements contain option to purchase at an agreed
consideration as stated in the respective lease agreement. The Company’s lease agreements do not contain any material restrictive
covenants. |
|
| SCHEDULE OF THE LEASE TERMS AND DISCOUNT RATES |
The
table below presents the information related to weighted average discount rate and the remaining lease term (years) of the operating
leases.
SCHEDULE OF THE LEASE TERMS AND DISCOUNT RATES
| | |
As of June 30, | |
| | |
2025 | | |
2024 | |
| Operating leases | |
| | | |
| | |
| Weighted average discount rate | |
| 9.00 | % | |
| 18.20 | % |
| Weighted average remaining lease term (years) | |
| 3.10 | | |
| 1.17 | |
| Finance leases | |
| | | |
| | |
| Weighted average discount rate | |
| NA | | |
| 6.73 | % |
| Weighted average remaining lease term (years) | |
| NA | | |
| 3.66 | |
|
| SCHEDULE OF LEASE COSTS |
The
Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities
or right-of-use assets. The following tables summarize the lease expense for the years.
SCHEDULE OF LEASE COSTS
| | |
2025 | | |
2024 | |
| | |
Years ended June 30, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Finance lease cost: | |
| | | |
| | |
| Interest on lease liabilities (per ASC 842) | |
$ | 5,368 | | |
$ | 45,926 | |
| | |
| | | |
| | |
| Operating lease cost: | |
| | | |
| | |
| Operating lease expense (per ASC 842) | |
| 145,705 | | |
| 131,096 | |
| | |
| | | |
| | |
| Total lease expense | |
$ | 151,073 | | |
$ | 177,022 | |
|
| SCHEDULE OF FUTURE MINIMUM OPERATING LEASE PAYMENTS |
The
table below summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present
value of future lease payments for the next three years and thereafter ending June 30:
SCHEDULE OF FUTURE MINIMUM OPERATING LEASE PAYMENTS
| Years ending June 30, | |
Operating and
finance lease amount | |
| | |
| |
| 2026 | |
| 48,435 | |
| 2027 | |
| 48,435 | |
| 2028 | |
| 37,710 | |
| Thereafter | |
| 15,741 | |
| Total minimum lease liabilities payment | |
| 150,321 | |
| Less: imputed interest | |
| (20,371 | ) |
| | |
| | |
| Present value of lease liabilities | |
$ | 129,950 | |
|