RIGHT-OF-USE ASSETS AND LEASE

9 Months Ended

Jun. 30, 2024

NOTE 14 - RIGHT-OF-USE ASSETS AND LEASE

The Company has operating leases for its office facilities and employee accommodation. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The following table provides a summary of leases as of June 30, 2024 and September 30, 2023:

Assets/liabilities	Classification	June 30, 2024		September 30, 2023
Assets
Operating lease right-of-use assets	Operating lease assets	$	240,743	$	479,427

Liabilities
Current
Operating lease liability - current	Current operating lease liabilities	$	248,405	$	318,422

Long-term
Operating lease liability - net of current portion	Long-term operating lease liabilities	$	410,846	$	95,907

Total lease liabilities		$	659,251	$	414,329

The operating lease expense for the nine months ended June 30, 2024 and 2023 was as follows:

Lease cost	Classification	2024		2023		2024		2023
		For the three months ended June 30,				For the nine months ended June 30,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	General and administrative	$	81,064		84,830	$	246,939	$	253,512
Total lease cost		$	81,064		84,830	$	246,939	$	253,512

Maturities of operating lease liabilities as of June 30, 2024 were as follows:

Maturity of lease liabilities	Operating leases
Remaining of 2024	$	175,547
2025		159,896
2026		-
2027		-
2028		-
Thereafter		-
Total lease payments	$	335,443
Less: interest		(6,630	)
Present value of lease payments	$	328,813

Maturities of operating lease liabilities as of September 30, 2023, were as follows:

Maturity of Lease Liabilities	Operating Leases
2024	$	93,798
2025		159,896
2026		-
2027		-
2028		-
Thereafter		-
Total lease payments	$	253,694
Less: interest		(3,676	)
Present value of lease payments	$	250,018

Supplemental information related to operating leases was as follows:

	2024		2023		2024		2023
	For the three months ended June 30,				For the nine months ended June 30,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities	$	14,398		133,868	$	111,469		133,868
New operating lease assets obtained in exchange for operating lease liabilities	$	14,398		110,738	$	111,469		110,738

The amortization expense was $54,965 and $48,028 for the three months ended June 30, 2024 and 2023 and $216,678 and $237,538 for the nine months ended June 30, 2024 and 2023, respectively.

Kun Peng International Ltd. 10-Q