Leases

12 Months Ended

Jun. 30, 2026

NOTE 10. 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			As of
	June 30, 2026			June 30, 2025
Operating lease right-of-use assets	$	3,329,452		$	5,181,521
Impairment		(301,067	)		(151,516	)
Total	$	3,028,385		$	5,030,005

Operating lease liabilities – current	$	1,443,763		$	1,838,815
Operating lease liabilities – non-current		1,893,249			3,267,522
Total	$	3,337,012		$	5,106,337

As of June 30, 2026, the maturities of our lease liabilities (excluding short-term leases) are as follows:

	As of June 30, 2026
July 1, 2026 to June 30, 2027	$	1,607,967
July 1, 2027 to June 30, 2028		803,628
July 1, 2028 to June 30, 2029		722,952
July 1, 2029 to June 30, 2030		481,968
Total future lease payments		3,616,515
Less: imputed interest		(279,503	)
Total lease liabilities	$	3,337,012

The Company incurred lease costs, which include the payment of short-term leases, of $2,066,548 and $1,757,022 on the Company’s consolidated statements of operations and comprehensive loss for the years ended June 30, 2026 and 2025, respectively.

The Company made payments of $2,135,952 and $1,654,992 under the lease agreements during the years ended June 30, 2026 and 2025, respectively.

The weighted-average remaining lease term related to the Company’s lease liabilities as of June 30, 2026 and 2025 was 2.9 years and 3.4 years, respectively.

The discount rate related to the Company’s lease liabilities as of June 30, 2026 and 2025 was 6.0% and 6.4%. 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.