Leases

9 Months Ended

Mar. 31, 2022

Leases

Leases

Note 6 – Leases

The Company has an operating lease for the rental of office space. Rent expense for the operating lease amounted to $0 and $3,321 for nine months ended March 31, 2022 and 2021, 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. On March 20, 2022, the company renewed the one-year lease contract until March 30, 2023. The monthly rent is approximately $394.

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 nine months ended March 31, 2022, the Company recorded $2,923 in total lease operating costs. The Company had paid rent up until April 5, 2022.

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:

	Nine months ended March 31, 2022
Cash paid for operating lease liabilities	$	4,872
Weighted-average remaining lease term		1.00
Weighted-average discount rate		5	%
Minimum future lease payments	$	4,607

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

2023	$	4,732
2024		-
2025		-
2026		-
2027 and thereafter		-
Total undiscounted lease liabilities		4,732
Less: Amount representing interest		(126	)
Total present value of minimum lease payments	$	4,607