Lakeside Holding Ltd Debt Disclosure
NOTE 10 — LOANS PAYABLE
The Company obtained multiple loans to finance the purchase of vehicles and warehouse machinery and obtained other loans to support its working capital needs.
The loan balance consists of the following:
| June 30, 2025 | June 30, 2024 | |||||||
| Equipment loans (a) | $ | 34,645 | $ | 84,357 | ||||
| Vehicle loans (b) | 88,762 | 146,283 | ||||||
| Other loans | 1,237,103 | 652,697 | ||||||
| Total | 1,360,510 | 883,337 | ||||||
| Less: loan payable, current | (1,300,112 | ) | (746,962 | ) | ||||
| Loan payable, non-current | $ | 60,398 | $ | 136,375 | ||||
(a) Equipment loans
The Company made the total principal repayments of $49,712 and $63,981 in connection with the equipment loans during the years ended June 30, 2025 and 2024, respectively. Interest expenses for the above-mentioned equipment loans amounted to $5,235 and $9,168 during the years ended June 30, 2025 and 2024, respectively. The Company did not have any new equipment loan during the year ended June 30, 2025.
(b) Vehicle loans
During the year ended June 30, 2025, the Company entered into a new vehicle loan with Tesla, Inc. for a principal amount of $ 102,235 at a fixed interest rate of 9.14% per annum with a maturity date of October 18, 2030. During the year ended June 30, 2025, the lender repossessed a vehicle previously held by the Company under a financing arrangement. As a result of the repossession, the Company was relieved of its obligation to settle the remaining outstanding balance on the related loan. The Company recognized a loss on disposal of $21,540, which is included in general and administrative expenses in the consolidated statement of income (loss) and comprehensive income (loss) under this arrangement.
The Company made the total principal repayments of $65,987 and $55,981 in connection with the above vehicle loans during the years ended June 30, 2025 and 2024, respectively. Interest expenses for the above-mentioned above vehicle loans amounted to $11,037 and $6,188 during the years ended June 30, 2025 and 2024, respectively.
Other loans
| June 30, 2025 | June 30, 2024 | |||||||
| Loan A | $ | 120,000 | $ | 150,000 | ||||
| Loan B | 50,000 | 200,000 | ||||||
| Loan C | 50,000 | 50,000 | ||||||
| Loan D | 95,000 | 175,000 | ||||||
| Loan E | 12,009 | 77,697 | ||||||
| Loan F | 50,000 | |||||||
| Loan G | 19,995 | |||||||
| Loan H | 99,975 | |||||||
| Loan I | 317,252 | |||||||
| Loan J | 10,000 | |||||||
| Loan K | 100,000 | |||||||
| Loan L | 50,003 | |||||||
| Loan M | 23,347 | |||||||
| Loan N | 139,595 | |||||||
| Loan O | 99,927 | |||||||
| Total | $ | 1,237,103 | $ | 652,697 | ||||
| (a) | The Company entered a loan of $300,000 with a third party on March 1, 2022. The loan is unsecured, with a fixed interest of 15% per annum and payable on monthly basis, for 6 months period and matured on September 1, 2022. On September 1, 2022, both parties agreed to extend the loan’s principal payment term to on demand. The Company has made repayment of $30,000 during the year ended June 30, 2025. |
| (b) | The Company entered a loan of $200,000 with a third party on July 26, 2021. The loan is unsecured, with no interest bearing for 6 months period and matured on January 25, 2022. The Company paid a principal of $100,000 during the year ended June 30, 2021 and both parties agreed to extend the remaining principal balance of $100,000 payment term to on demand. On April 8, 2024, the Company entered another loan of $100,000 with the same party. On June 27, 2025, the Company entered another loan of $50,000 with the same party. The loan is unsecured, with no interest bearing for a 6-month period and matured on September 7, 2024. The Company has made repayment of $200,000 during the year ended June 30, 2025. |
| (c) | The Company entered a loan agreement of $50,000 with an employee on October 27, 2021. The loan is non-interest bearing, for a 12-month period, and matured on October 26, 2022. |
On October 26, 2022, both parties agreed to extend the loan term to on demand.
| (d) | The Company entered a loan agreement of $100,000 with a third party on July 3, 2023. The loan is non-interest bearing, for a 6-month period. |
On April 10, 2024, the Company entered another loan agreement of $75,000 with same party. The loan is non-interest bearing, for a 6-month period, and matured on September 9, 2024.
The Company made repayment of $80,000 during the year ended June 30, 2025. Both parties agreed to extend the remaining principal balance of $95,000 payment term to on demand.
| (e) | The Company entered a loan of $125,000 with a third party on August 17, 2023. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 16.00% per annum for 24 months period and matured on August 16, 2025. The monthly payment is $6,120 blending of interest and principal. |
| (f) | On October 16, 2024, the Company entered a loan of $150,000 with a third party. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 33.37% per annum and payable on monthly basis, for 12 months period and matured on October 16, 2025. The monthly payment is $16,250 for the first six months and $13,250 for the remaining six months blending of interest and principal. |
| (g) | The Company entered a loan of $45,000 with a third party on November 5, 2024. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 24.16% per annum and payable on monthly basis, for 12 months period and matured on November 5, 2025. The monthly payment is $4,259 blending of interest and principal. |
| (h) | The Company entered a loan of $99,975 with a third party on January 21, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on July 21, 2025. |
| (i) | The Company entered a loan of $350,000 with a third party on May 17, 2025. The loan is personally guaranteed by Henry Liu, the CEO, and Shuai Li, the Shareholder, with a fixed interest of 45.7% per annum and payable on weekly basis, for 52 weeks and matured on May 16, 2026. The monthly payment is $8,413 blending of interest and principal. |
| (j) | The Company entered a loan of $10,000 with a third party on April 18, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on October 18, 2025. |
| (k) | The Company entered a loan of $100,000 with an unrelated party on June 30, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on December 30, 2025. |
| (l) | The Company entered a loan of $67,003 with a third party on April 10, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on October 10, 2025. The Company has made repayment of $17,000 during the year ended June 30, 2025. |
| (m) | The Company entered a loan of $23,347 (RMB167,250) with a third party on August 9, 2024. The loan is unsecured, with no interest bearing and repayable on demand |
| (n) | The Company entered a loan of $139,595 (RMB1,000,000) with a third party on June 6, 2025. The loan is unsecured, with no interest bearing for 12 months period and matured on May 31, 2026. |
| (o) | The Company entered a loan of $99,928 with a third party on June 27, 2025. The loan is at a fixed interest of 8.99% per annum and payable on monthly basis, for 11 months period and matured on May 27, 2025. The monthly payment is $9,498 blending of interest and principal. |
The Company made the total principal repayments of $553,440 and $214,986 in connection with the above other loans during the years ended June 30, 2025 and 2024, respectively. Interest expenses for the above-mentioned other loans amounted to and $79,697 during the years ended June 30, 2025 and 2024, respectively.
The repayment schedule for the Company’s loans is as follows:
| Twelve months ending June 30, | Vehicle loans | Equipment loans | Others | Total | ||||||||||||
| 2026 | $ | 37,167 | 30,977 | 1,311,400 | 1,379,544 | |||||||||||
| 2027 | 35,353 | 5,790 | 41,143 | |||||||||||||
| 2028 | 13,406 | 13,406 | ||||||||||||||
| 2029 | 8,937 | 8,937 | ||||||||||||||
| Total undiscounted borrowings | 94,863 | 36,767 | 1,311,400 | 1,443,030 | ||||||||||||
| Less: imputed interest | (6,101 | ) | (2,122 | ) | (74,297 | ) | (82,520 | ) | ||||||||
| Total | $ | 88,762 | 34,645 | 1,237,103 | 1,360,510 | |||||||||||
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.