BANK LOAN PAYABLE

12 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

BANK LOAN PAYABLE

NOTE 7 – BANK LOAN PAYABLE

In October 2022, the Company obtained a credit facility with OCBC Bank in Malaysia to provide a loan in the principal amount of MYR5,000,000 (approximately US$1,069,000) in relation to the Company’s purchase of a factory (No. 3 factory building, see Note 4). The acquisition and loan drawdown was completed in March 2023. The loan bears interest at the base lending rate, as defined, minus 2.2% (4.06% at March 31, 2024), is secured by the No. 3 factory building, matures in October 2042, and is guaranteed by certain of the Company’s shareholders.

In June 2023, the credit agreement with OCBC Bank was amended to provide a second loan to the Company in the principal amount of MYR4,600,000 (approximately US$975,162) in relation to the Company’s purchase of a factory (No. 5 factory building, see Note 4). The acquisition and loan drawdown was completed in February 2024. The loan bears interest at the base lending rate, as defined, minus 2.5% (4.06% at June 30, 2024), is secured by the No. 5 factory building, matures in December 2043, and is guaranteed by certain of the Company’s shareholders.

The total interest expenses were $81,203 and $17,446 for the year ended June 30, 2024 and 2023 respectively.

Future Minimum principal payments under the bank borrowing at June 30, 2024, are as follow:

2025	$	68,682
2026		71,586
2027		74,612
2028		77,766
2029 onward		1,701,724
Total		1,994,370
Current balance		(68,682	)
Non-current balance	$	1,925,688