LEASES

6 Months Ended

Dec. 31, 2022

8. LEASES

Company as a lessee

The Company has lease contract for land and building. The Company’s obligations under these leases are secured by the lessor’s title to the leased assets. The Company is restricted from assigning and subleasing the leased assets.

(a)

Right-of-use assets

	Shop lot			Total
	US$			US$
Cost
Balance as of June 30, 2022		438,119			438,119
Effect of foreign currency exchange difference		(4,486	)		(4,486	)
Balance as of December 31, 2022		433,633			433,633

Accumulated amortization
Balance as of June 30, 2022		186,653			186,653
Amortization		29,958			29,958
Balance as of December 31, 2022		216,611			216,611

Net carrying amount
As of June 30, 2022		251,466			251,466
As of December 31, 2022		217,022			217,022

Shop Lot

Arem Pacific Corporation

Notes to Unaudited Condensed Consolidated Financial Statements

For The Period Ended From June 30, 2022, to December 31, 2022

8. LEASES (Continued)

(b)

Lease liabilities

The carrying amounts of lease liabilities is as follows:

Leases - Schedule of Lease Liabilities

	*December 31, 2022*		*June 30, 2022*
	US$		US$
Current
Lease liabilities		60,851		60,412

Non-Current
Lease liabilities		181,297		223,517
Operating Lease Liability		242,148		283,929

Arem Pacific Corp 10-Q