Commitments and Contingencies

9 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

25. Commitments and contingencies

On February 23, 2018, the Company entered into a lease agreement for new office space commencing March 1, 2018. The term of the lease is for five years with one month free in the first year of the term. The monthly rent in the first year was $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease is $737,367.

Our warehouse along with some office space is located at 20529 East Walnut Drive North, Diamond Bar, California, where we lease approximately 11,627 square feet of combined space. The lease term is for five years and two months ending on April 30, 2025. The current monthly rental payment for the facility is $13,022.

Nine Months Ended
March 31, 2021
Lease Cost
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)	$	231,694
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the nine months ended March 31, 2021	$	163,170
Remaining lease term – operating leases (in years)		3.00
Average discount rate – operating leases		10	%
The supplemental balance sheet information related to leases for the periods are as follows:
Operating leases
Short-term right-of-use assets	$	237,555
Long-term right-of-use assets	$	549,262
Total operating lease assets	$	786,817
Short-term operating lease liabilities	$	231,305
Long-term operating lease liabilities	$	591,115
Total operating lease liabilities	$	822,420

Maturities of the Company’s lease liabilities are as follows:

	Operating
Period ending June 30,	Lease
2021	$	78,825
2022		305,040
2023		273,425
2024		172,465
2025		147,446
Total lease payments		977,200
Less: Imputed interest/present value discount		(154,780	)
Present value of lease liabilities	$	822,420