Commitments and Contingencies

9 Months Ended

Mar. 31, 2020

Commitments And Contingencies

Commitments and Contingencies

22. Commitments and contingencies

On February 23, 2018 the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease is set to commence Commencing March 1, 2018. The term of the lease is for a (5) Five Years with 1 month free on the 1st year of the term. The monthly rent on the 1st year will be $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease will be $737,367. After the adoption of ASC842, $455,590 of operating lease right-of-use asset and $465,826 of operating lease liabilities were not retroactively reflected to June 30, 2019 financial statements, and $388,332 of operating lease right-of-use asset and $401,579 of operating lease liabilities were reflected to March 31, 2020 financial statements. As of the date of this filing, this property became the headquarter of the company.

Nine Months Ended
March 31, 2020
Lease Cost
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)	$	112,482
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the nine months ended March 31, 2020	$	109,471
Remaining lease term – operating leases (in years)		2.92
Average discount rate – operating leases		10	%
The supplemental balance sheet information related to leases for the periods are as follows:
Operating leases
Right-of-use assets	$	388,332
Total operating lease assets	$	388,332
Short-term operating lease liabilities	$	113,675
Long-term operating lease liabilities	$	287,904
Total operating lease liabilities	$	401,579
Maturities of the Company’s lease liabilities are as follows:
Period ending June 30,		Operating Lease
2020	$	50,269
2021		151,344
2022		155,888
2023		105,984
Total lease payments		463,485
Less: Imputed interest/present value discount		(61,906	)
Present value of lease liabilities	$	401,579