Effective on July 1, 2020, the Group adopted Topic 842. At the inception of a contract, the Group determines if the arrangement is, or contains, a lease. The leases of the Group mainly consisted of office leasing.

For the year ended June 30, 2025, the Group derecognized the right-of-use assets due to early termination of long-term lease contract, and entered into a new leasing for office for twelve months. Since the Group elected the short-term lease exemption for all contracts with lease term of twelve months or less, the Group did not recognize the right-of-use assets and lease liabilities for such new short-term lease accordingly. And the Group adopted simplified calculation in lease expenses thereafter.

Supplemental balance sheet information related to operating lease was as follows:

The weighted average remaining lease terms and discount rates for the operating lease for the years of June 30, 2023, 2024 and 2025 were as follows:

For the years ended June 30, 2023, 2024 and 2025, the lease expenses were as follow: