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Concentration of risk
 12 Months Ended
Jun. 30, 2025
Risks and Uncertainties [Abstract]  
Concentration of risk

Note 16 - Concentration of risk

 

Credit risk

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, and accounts receivable.

 

As of June 30, 2025 and 2024, $1,774,296 and $7,219,296, respectively, were deposited with various financial institutions and financial services companies in the United States and PRC. Accounts at each institution in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. The Company had approximately $1.4 million and $5.8 million, respectively, in excess of the FDIC insurance limit, as of June 30, 2025 and 2024.

 

Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposing the Company to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company maintains reserves for estimated credit losses, and such losses have generally been within expectations.

 

The business of DHS, the Company’s VIE, may be impacted by Chinese economic conditions, changes in regulations and laws, and other uncertainties.

 

Customer and vendor concentration risk

 

For the years ended June 30, 2025 and 2024, Amazon Vendor and Amazon Seller customers accounted for 82% and 90% of the Company's total revenues, respectively. As of June 30, 2025 and 2024, accounts receivable from Amazon Vendor and Amazon Seller accounted for 72% and 91% of the Company’s total accounts receivable.

 

For the year ended June 30, 2025, two suppliers accounted for 14% and 11% of the Company's total purchases, respectively. For the year ended June 30, 2024, one supplier accounted for 10% of the Company's total purchases, respectively. As of June 30, 2025 and 2024, accounts payable to one supplier accounted for 10% and 36% of the Company’s total accounts payable, respectively.