LEASE

12 Months Ended

Jun. 30, 2023

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

NOTE 11 – LEASE

The Company has entered into an operating leases agreement with GKT, Alhambra, LP. The lease term of the office space is from December 1, 2020 to November 30, 2023. The current monthly rent including monthly management fee is $4,655.64. The operating lease is listed as separate line item on the Company’s condensed consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is also listed as a separate line item on the Company’s condensed consolidated financial statements.

The Company has entered into an operating lease agreement with SoCal Industrial LLC, Irwindale. The lease term of the office space is from June 1, 2023 to May 31, 2024 after the prior lease expired on May 31, 2023. The current monthly rent including monthly management fee is $1,764.00. The operating lease is listed as a separate line item on the Company’s condensed consolidated financial statements and represents the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is also listed as a separate line item on the Company’s condensed consolidated financial statements.

Operating lease right-of-use assets and liabilities commencing after December 1, 2020 are recognized at commencement date based on the present value of lease payments over the lease term. For the year ended June 30, 2023, the Company recognized approximately $36,556 in total lease costs.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company’s operating ROU assets and related lease liabilities are as follows:

	Year Ended
	June 30, 2023
Cash paid for operating lease liabilities	$	75,706
Weighted-average remaining lease term		0.64
Weighted-average discount rate		5	%
Minimum future lease payments	$	42,191

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending June 30:

2024	$	36,899
2025		3,528
2026		1,764
2027		-
Total minimum payments		42,191
Less: imputed interest		(273	)
Total lease liability		41,918
Less: short-term lease liability		(41,918	)
Long-term lease liability	$	-