Leases

12 Months Ended

Jun. 30, 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 amounted to $3,398 and $0 for years ended June 30, 2021 and 2020, respectively. The lease term was from May 11, 2020 and expired on December 10, 2020. The Company had paid rent up until December 10, 2020.

On January 5, 2021, Zhejiang Jingmai Electronic Commerce Ltd. leased an office in Zhejiang, China. The lease term of the office is from January 5, 2021 to April 5, 2022. There is rent-free period which is from January 5, 2021 to April 5, 2021. The monthly rent is approximately $403.

The operating lease is listed as a separate line item on the Company’s consolidated financial statements. The operating lease represents 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 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 year ended June 30, 2021, the Company recorded $1,885 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 right of use assets and related lease liabilities are as follows:

	Year ended June 30, 2021
Cash paid for operating lease liabilities	$	-
Weighted-average remaining lease term		0.75
Weighted-average discount rate		5	%
Minimum future lease payments	$	4,746

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending June 30:

2022	$	4,832
2023 and thereafter		-
Total undiscounted lease liabilities		4,832
Less: Amount representing interest		(86	)
Total present value of minimum lease payments	$	4,746