Lakeside Holding Ltd Leases Disclosure
NOTE 8 — LEASES
The Company has multiple lease agreements for warehouses, warehouse machinery and equipment and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company entered into three new operating lease agreements for the year ended June 30, 2025. The ROU asset was recognized at the discount rate of 10.25% for one lease with a lease term of 1.6 years in the U.S., of 4.42% for another lease with a lease term of 2 years in China, and of 4.42% for another lease with a lease term of 5 years in China, resulting in a total of $1,451,938 on the commencement date.
For the year ended June 30, 2025, the Company entered into two new finance lease agreements for the year ended June 30, 2025. The ROU asset was recognized at the discount rate of 9.75% and 10.75% respectively for two leases with the lease term of 5 years and 5 years respectively in the U.S., resulting in a total of $89,003 on the commencement date.
Total operating lease expenses on offices, warehouses, and warehouse equipment for the years ended June 30, 2025 and 2024 were $2,042,946 and $1,005,686, respectively.
Total finance lease expenses on warehouse machinery and equipment for the years ended June 30, 2025 and 2024 were $38,540 and $32,525, respectively. Depreciation of finance lease right-of-use assets were $32,681 and $30,712 for the years ended June 30, 2025 and 2024, respectively.
The following table includes supplemental cash flow and non-cash information related to leases:
| For the years ended, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid of amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 1,540,032 | $ | 846,992 | ||||
| Operating cash flows from finance leases | $ | 5,859 | $ | 1,813 | ||||
| Financing cash flows from finance leases | $ | 30,779 | $ | 29,628 | ||||
| Right-of-use assets obtained in exchange for lease obligations: | ||||||||
| Finance lease liabilities | $ | 89,003 | $ | 19,982 | ||||
| Operating lease liabilities | $ | 1,451,938 | $ | 2,094,498 | ||||
The weighted average remaining lease terms and discount rates for all of operating lease and finance leases is as follows:
| June 30, 2025 | June 30, 2024 | |||||||
| Weighted-average remaining lease term (years): | ||||||||
| Operating lease | 2.44 years | 3.05 years | ||||||
| Finance lease | 3.19 years | 1.31 years | ||||||
| Weighted average discount rate: | ||||||||
| Operating lease | 7.00 | % | 6.30 | % | ||||
| Finance lease | 9.32 | % | 6.51 | % | ||||
The following is a schedule of maturities of operating and finance lease liabilities as of June 30, 2025:
Operating leases
| Twelve months ending June 30, | Repayment | |||
| 2026 | $ | 2,500,558 | ||
| 2027 | 574,730 | |||
| 2028 | 594,275 | |||
| 2029 | 567,260 | |||
| 2030 | 22,823 | |||
| Total future minimum lease payments | 4,259,646 | |||
| Less: imputed interest | (376,574 | ) | ||
| Total operating lease liabilities | $ | 3,883,072 | ||
Financing leases
| Twelve months ending June 30, | Repayment | |||
| 2026 | $ | 53,409 | ||
| 2027 | 24,810 | |||
| 2028 | 21,656 | |||
| 2029 | 21,656 | |||
| 2030 | 7,219 | |||
| Total future minimum lease payments | 128,750 | |||
| Less: imputed interest | (15,448 | ) | ||
| Total finance lease liabilities | $ | 113,302 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 14, 2025 | Showing above |
| 2024 | Sep 30, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.