8. LEASES

The Company has operating lease arrangements for office premises in Hong Kong, California and Malaysia. These leases typically have terms of two to five years.

Leases with an initial term of 12 months or less are not presented as right-of-use assets on the consolidated balance sheet and are expensed over the lease term. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date.

The balances for the right-of-use assets and lease liabilities where the Company is the lessee are presented as follow:

As of December 31, 2024, the maturities of our lease liabilities (excluding short-term leases) are as follows:

The Company incurred lease costs, which include the payment of short-term leases, of $383,174 and $335,678 on the Company’s consolidated statements of operations and comprehensive loss for the three months ended December 31, 2024 and 2023, respectively. The Company incurred lease costs, which include the payment of short-term leases, of $765,733 and $734,991 on the Company’s consolidated statements of operations and comprehensive loss for the six months ended December 31, 2024 and 2023, respectively.

The Company made payments of $330,020 and $379,600 under the lease agreements during three months ended December 31, 2024 and 2023, respectively. The Company made payments of $720,640 and $712,421 under the lease agreements during six months ended December 31, 2024 and 2023, respectively.

The weighted-average remaining lease term related to the Company’s lease liabilities as of December 31, 2024 and June 30, 2024 was 2.2 years and 2.7 years, respectively.

The discount rate related to the Company’s lease liabilities as of December 31, 2024 and June 30, 2024 was 7.9% and 7.9%, respectively. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.