Leases

3 Months Ended

Sep. 30, 2024

Leases [Abstract]

LEASES

Note 12. LEASES

The Company determines if a contract contains a lease at inception which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. All of the Company’s leases are classified as operating leases.

The Company has several lease agreements with lease terms ranging from two to five years. As of September 30, 2024, ROU assets and lease liabilities amounted to $56,870 and $244,487 (including $153,365 from lease liabilities current portion and $91,122 from lease liabilities non-current portion), respectively and weighted average discount rate was approximately 10.74%.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration and the weighted average remaining lease terms are 1.64 years.

For the three months ended September 30, 2024 and 2023, rent expense amounted to approximately $478,444 and $160,489, respectively.

The five-year maturity of the Company’s lease obligations is presented below:

Twelve Months Ending September 30,	Operating Lease Amount
2025	$	172,249
2026		95,668
Total lease payments		267,917
Less: Interest		23,430
Present value of lease liabilities	$	244,487