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Segment Reporting
 6 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 19 — SEGMENT REPORTING

 

The Company follows Financial Accounting Standards Board (FASB”) Accounting Standards codification “ASC”) Topic 280, Segment Reporting, as amended by Accounting Standards Update (“ASU”) No.2023-07. Segment Reporting Topic 280: Improvements to Reportable Segment Disclosures, the Company continually monitors the reportable segments for changes in fact and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment.

 

The Company’s chief operating decision maker (“CODM”) is Mr. Henry Liu, the CEO. The CODM regularly reviews financial information, including segment revenue, gross profit, significant segment expenses (selling expenses and general and administrative expenses), segment net income (loss), and segment assets to evaluate segment performance and allocate resources accordingly.

 

Based on internal management reporting and assessment, the Company concludes that it has two reporting segments listed as below for the six months ended December 31, 2025 and 2024. The Company and its subsidiaries are located either in the U.S. or China. The Company is primarily engaged in the business of providing customized cross-border freight solutions in the U.S. and distribution of pharmaceutical products in China. Segment net income (loss) excludes general corporate administrative expenses and selling expenses including corporate functional costs relating to professional expenses, payroll expense of management, and interest expenses in connection with convertible debt that are managed centrally at the corporate level and are excluded from the measure of segment performance reviewed by the CODM.

 

The summary of key information by segments for the six months ended December 31, 2025 was as follows: 

 

    Cross-border
freight
solutions
(U.S.)		     Pharmaceutical
distribution
(China)		     Holding     Total for the
six months
ended
December 31,
2025		  
Revenue from external customers   $ 8,110,140       3,780,654      
—
       11,890,794  
Revenue from related parties   $ 1,221,728      
—
      
—
       1,221,728  
Cost of revenue   $ 8,108,196       1,985,266      
—
       10,093,462  
Gross profit   $ 1,223,672       1,795,388      
—
       3,019,060  
Selling expense   $
—
       1,074,293       18,951       1,093,244  
General and administrative expense   $ 2,132,762       356,740       1,828,511       4,318,013  
Depreciation & amortization   $ 78,903       23,172       43,642       145,717  
Income tax expense   $
—
       81,039      
—
       81,039  
Long-lived assets   $ 2,297,112       418,551       373,566       3,089,229  
Segment assets   $ 6,421,111       3,725,331       14,153,766       24,300,208  
Segment profit (loss)   $ (1,016,831 )     222,675       (2,146,741 )     (2,940,897 )

 

 The summary of key information by segments for the six months ended December 31, 2024 was as follows: 

 

   Cross-border
freight
solutions
(U.S.)		   Pharmaceutical
distribution
(China)		   Others   Total for the
six months
ended
December 31,
2024		 
Revenue from external customers  $6,702,063   $218,086   $
–
   $6,920,149 
Revenue from related parties  $756,994   $
–
   $
–
   $756,994 
Cost of revenue  $7,075,044   $121,791   $
–
   $7,196,835 
Gross profit  $384,013   $96,295   $
–
   $480,308 
Depreciation & amortization  $86,685   $447   $
–
   $87,132 
Income tax provision  $89,581   $
–
   $
–
   $89,581 
Capital expenditure  $181,963   $74,351   $
–
   $256,314 
Long-lived assets  $4,582,950   $816,826   $
–
   $5,399,776 
Segment assets  $7,092,574   $1,949,879   $794,673   $9,837,126 
Segment loss  $(2,129,585)  $(334,567)  $(818,075)  $(3,282,227)