LEASE

9 Months Ended

Mar. 31, 2024

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

NOTE 15 – LEASE

The Company has entered into a operating leases agreement with GKT, Alhambra, LP. The lease term of the office space is from December 1, 2020 to November 30, 2023. The Company is under a month-to-month base lease after December 1, 2023, and the current monthly rent including monthly management fee is $4,939.17.

The Company has entered into an operating lease agreement with SoCal Industrial LLC, Irwindale. The lease term of the office space is from June 1, 2023 to May 31, 2024 after the prior lease expired on May 31, 2023. The current monthly rent including monthly management fee is $1,764.00. The operating lease is listed as a separate line item on the Company’s condensed consolidated financial statements and represents the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is 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 December 1, 2020 are recognized at commencement date based on the present value of lease payments over the lease term. For the nine months ended March 31, 2024, the Company recognized approximately $63,855 in total 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, 2024
Cash paid for operating lease liabilities	$	50,793
Weighted-average remaining lease term		0.1700
Weighted-average discount rate		5	%
Minimum future lease payments	$	3,528

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

2024	$	3,528
2025		-
2026		-
2027		-
Total minimum payments		3,528
Less: imputed interest		(22	)
Total lease liability		3,506
Less: short-term lease liability		(3,506	)
Long-term lease liability	$	-