Leases

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Note 5 – Leases

The Company has an operating lease for the rental of office space. Rent expense for the operating lease for the three and months ended March 31, 2021 and 2020, was $0, respectively, and for nine months ended March 31, 2021 and 2020, rent expense was $3,369 and $0, respectively. The Company had paid rent up until December 10, 2020, the did not renew this lease.

On January 5, 2021, Zhejiang Jingmai Electronic Commerce Ltd. leases new office in Zhejiang, China. The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021. The monthly rent is approximately $397 (RMB 2,600). 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 are 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 January 1, 2021 are recognized at commencement date based on the present value of lease payments over the lease term. For the nine months ended March 31, 2021, the Company recognized approximately $934 in total operating 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:

	Nine Months ended March 31, 2021
Cash paid for operating lease liabilities	$	-
Weighted-average remaining lease term		1.0
Weighted-average discount rate		5	%
Minimum future lease payments	$	4,636

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31:

2022	$	4,762
2023		-
2024		-
2025		-
2026 and thereafter		-
Total undiscounted lease liabilities		4,762
Less: Amount representing interest		(126	)
Total present value of minimum lease payments	$	4,636