Commitments and Contingencies

12 Months Ended

Jun. 30, 2020

Commitments And Contingencies

Commitments and Contingencies

27.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. As of the date of this filing, this property became the headquarter of the company.

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.

For The Year Ended
June 30, 2020
Lease Cost
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)	$	149,976
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the year ended June 30, 2020	$	108,073
Remaining lease term – operating leases (in years)		2.67
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	$	1,105,755
Total operating lease assets	$	1,105,755
Short-term operating lease liabilities	$	120,645
Long-term operating lease liabilities	$	1,019,369
Total operating lease liabilities	$	1,140,014
Maturities of the Company’s lease liabilities are as follows:
Period ending June 30,		Operating
		Lease
2021		370,971
2022		375,515
2023		315,051
2024		156,267
2025		130,222
Total lease payments		1,348,026
Less: Imputed interest/present value discount		(208,012	)
Present value of lease liabilities	$	1,140,014