TREASURE GLOBAL INC Leases Disclosure
Note 16 – Leases
As of June 30, 2025 and 2024, the Company has engaged in multiple offices leases which were classified as operating leases.
The Company occupies various offices under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company recognized lease expense on a straight-line basis over the lease term for operating lease.
Operating lease expense for the years ended June 30, 2025 and 2024 were $4,375, and $20,332, respectively.
As of June 30, 2025 and 2024, the weighted-average lease term is 2.3 and 0.5 years for the remaining leases, respectively. Weighted-average discounted rated related to leases were 6.0% and 3.5% as of June 30, 2025 and 2024, respectively.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company’s lease liabilities under the remaining operating leases as of June 30, 2025 for the next five years is as follows:
| June 30, | ||||
| 2026 | $ | 43,238 | ||
| 2027 | 64,032 | |||
| 2028 | 16,008 | |||
| Total undiscounted lease payments | 123,278 | |||
| Less imputed interest | (9,665 | ) | ||
| Total lease liabilities | $ | 113,613 | ||
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.