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Related Party Transactions and Balances
 3 Months Ended
Sep. 30, 2024
Related Party Transactions and Balances [Abstract]  
Related Party Transactions and Balances

13. Related Party Transactions and Balances

 

Related Parties

 

Name of related parties   Relationship with the Company
Jacky Chen   Former CEO of the Company’s significant operating subsidiary, Armstrong Logistic Inc. (from January 1, 2021 to December 31, 2021)
Aidy Chou   Founder, CEO, and substantial stockholder
Tong Wu   Founder, Secretary, Treasurer, director, and substantial stockholder
DNA Motor Inc.   A company wholly-owned by Jacky Chen
Junchu Inc.   A company wholly-owned by Tong Wu

 

Related Party transactions

 

The Company had the following related party transactions:

 

(i)During the three months ended September 30, 2024, the Company’s related parties, Jacky Chen, Aidy Chou and Tong Wu, together advanced $nil (2023: US$491,978) to support the Company’s working capital needs.

  

(ii)DNA Motor Inc. (“DNA”), the landlord of five of the Company’s operating leases, is owned by Jacky Chen. During the three months ended September 30, 2024, for these operating leases, US$94,829 (2023: US$116,988) lease expense was recorded in general and administrative expenses, US$2,989,368 (2023: US$3,180,657) was recorded in costs of sales and US$408,098 (2023: nil) was recorded in other expenses. The aggregate lease liability associated with these operating leases as of September 30, 2024 and June 30, 2024 was US$31,063,361 and US$32,853,612, respectively.

 

(iii)

During the three months ended September 30, 2024, the Company generated revenue of US$553 (2023: US$140,959) for providing logistic services to DNA. During the three months ended September 30, 2024, the Company generated revenue of US$884,700 (2023: US$125,813) for providing warehouse services to DNA. During the three months ended September 30, 2024, the Company paid expenses in the total amount of US$716,789 on behalf of DNA. The amount due from DNA is included in accounts receivable and other receivables from a related party as disclosed in Note 3.

 

(v)During the three months ended September 30, 2024, the Company incurred general and administrative expenses of US$607 for outside services, warehouse supplies, freight expenses and operating expenses provided by DNA. During the three months ended September 30, 2023, the Company incurred operating expenses that totaled US$15,000 for outside service provided by DNA.

 

Due to related party balance

 

The Company’s balances due to related parties as of September 30, 2024 and June 30, 2024 were as follows:

 

   September 30,
2024		   June 30,
2024		 
   US$   US$ 
Tong Wu   181,971    181,971 
Jacky Chen   168,238    168,238 
Total   350,209    350,209 

 

The due to related party balances as of September 30, 2024 and June 2024 are unsecured, interest-free, and are due on demand.