Singularity Future Technology Ltd. Leases Disclosure
Note 12. LEASES
The Company leases its office in Shanghai City from a third party for its operations.
As of June 30, 2025 and 2024, the remaining average lease term was an average of 1.5 and 1.7 years, respectively. The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, the Company estimates its incremental borrowing rate based on actual incremental borrowing interest rates from financial institutions in order to discount lease payments to present value. The discount rate of the Company’s operating leases was 10.74% and 10.74% per annum, as of June 30, 2025 and 2024, respectively.
Supplemental balance sheet information related to operating leases was as follows:
| June 30, | June 30, | |||||||
| 2025 | 2024 | |||||||
| Right-of-use assets | $ | 84,370 | $ | 98,327 | ||||
| Lease liabilities, current | 53,286 | 177,263 | ||||||
| Lease liabilities, non-current | 31,084 | 131,355 | ||||||
| Total lease liabilities | $ | 84,370 | $ | 308,618 | ||||
As of June 30, 2025, maturities of lease liability were as follows:
| As of | ||||
| June 30, | ||||
| Twelve months ended June 30, | 2025 | |||
| 2026 | $ | 61,151 | ||
| 2027 | 30,575 | |||
| Total future minimum lease payments | 91,726 | |||
| Less: Imputed interest | (7,356 | ) | ||
| Total lease liabilities | $ | 84,370 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 14, 2025 | Showing above |
| 2023 | Sep 29, 2023 | |
| 2021 | Sep 29, 2021 | |
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.