Right-Of-Use Assets And Operating Lease Liabilities

3 Months Ended

Sep. 30, 2022

Right-of-use Assets And Operating Lease Liabilities

Right-Of-Use Assets And Operating Lease Liabilities

Note 8 – Right-Of-Use Assets And Operating Lease Liabilities

On January 5, 2021, Jingmai Electronic leased an office in Zhejiang, China from January 5, 2021 to April 5, 2022. There was rent-free period from January 5, 2021 to April 5, 2021. The monthly rent is $366.

On March 20, 2022, Zhejiang Jingmai Electronic Commerce Ltd. leased an office in Zhejiang, China. The lease is from April 1, 2022 to March 30, 2023. The monthly rent is $351. As of September 30, 2022, the Company had paid rent up until March 30, 2023. As of September 30, 2022 and June 30, 2022, operating lease right-of-use assets was $2,109 and $3,359, respectively.

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 are recognized at commencement date based on the present value of lease payments over the lease term. For the three months ended September 30, 2022 and 2021, the Company recorded $1,095 and $964 in total lease operating costs, respectively.

Information related to the Company’s operating right of use assets and related lease liabilities are as follows:

	Three Months ended September 30, 2022			Three Months ended September 30, 2021
Cash paid for operating lease liabilities	$	-		$	4,822
Weighted-average remaining lease term		0.50			0.75
Weighted-average discount rate		5	%		5	%
Minimum future lease payments	$	-		$	-