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Leases
6 Months Ended
Dec. 31, 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 December 31, 2024, all of the Company’s lease agreements have expired or terminated early, the balance of ROU assets and lease liabilities amounted to nil.

 

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.

 

For the three months ended December 31, 2024 and 2023, rent expense amounted to approximately $127,936 and $135,299, respectively. For the six months ended December 31, 2024 and 2023, rent expense amounted to approximately $261,147 and $295,788, respectively.