LEASES

12 Months Ended

Jun. 30, 2024

Leases

LEASES

NOTE 10 – LEASES

During the twelve months ended June 30, 2024, the Company entered into two finance leases for motor vehicles. The aggregate monthly lease payments are $1,800 with an aggregate commitment of approximately $95,000. The Company recognized financing lease right-of-use assets and related finance lease liabilities of approximately $95,000 upon commencement of the leases. As of June 30, 2023, the Company has one operating lease agreements for space (No. 5 factory building) in Malaysia. In February 2024, the Company completed the acquisition of the No. 5 factory building and space from the lessor (See Note 4).

	As of June 30, 2024		As of June 30, 2023
Operating lease Right-of-use assets	$	-	$	42,546
Finance leases Right-of-use assets		73,461		-
Total Right-of-use assets	$	73,461	$	42,546
Operating Lease liabilities – current	$	-	$	44,167
Operating Lease liabilities – non-current		-		-
Finance Lease liabilities – current		18,866		-
Finance Lease liabilities – non-current		41,686		-
Total Lease liabilities	$	60,552	$	44,167

The components of lease expense and supplemental cash flow information related to leases for the years ended June 30, 2024 and 2023 are as follows:

Other information for the year ended	June 30, 2024			June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Cash payments for operating lease	$	44,518		$	109,144
Cash payments for finance lease		19,364			-
Weighted average remaining lease term (in years)
Operating leases		0.17			2.75
Finance leases		3.27			-
Weighted average discount rate
Operating leases		7.31	%		7.31	%
Finance leases		8.77	%		-

The undiscounted future minimum payments under the Company’s operating and finance lease liabilities and reconciliation to the operating and finance lease liabilities recognized on the consolidated balance sheet as of June 30, 2024 are as follows:

	Operating lease		Finance lease
Year ending
2024	$	-	$	22,028
2025		-		22,028
2026		-		10,939
Thereafter		-		11,587
Total lease payment		-		66,582
Less: Imputed interest		-		(6,030	)
Total lease liabilities	$	-		60,552
Current		-		(18,866	)
Long term	$	-	$	41,686