Operating Lease |
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| Leases Of Lessee Disclosures Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPERATING LEASE |
As of June 30, 2022, the Company leases offices space and tea shop stores under certain non-cancelable operating leases, with terms matured through December 2023.
The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term.
The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discount lease payments based on an estimate of its incremental borrowing rate.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The table below presents the operating lease related assets and liabilities recorded on the balance sheets.
The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2022 and 2021:
Rent expense for the years ended June 30, 2022, 2021, and 2020 was $164,454, $226,055, and $377,261, respectively.
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2022:
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