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Disposal of Subsidiary | 12 Months Ended
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Jun. 30, 2024
Disposal of Subsidiary [Abstract] |
DISPOSAL OF SUBSIDIARY | NOTE 13 – DISPOSAL OF SUBSIDIARY On July 20, 2023, the Company’s shareholders decided to sell Zhangxun to a third party at a price of RMB 2 (US $0.28). There was no material transactions for Zhangxun for the period from July 1, 2023 through July 20, 2023, and for the purpose of complying with the Company’s monthly accounting cut-off date, the Company used Zhangxun’s financial statements as of June 30, 2023 as the date of disposal. The Company recorded $0.83 million gain on disposal of the subsidiary, which was the difference between the selling price of US$0.28 and the carrying value of the negative net assets of $2.34 million of the disposal entity, and further netting off the inter-company receivables from Zhangxun of $1.48 million due to uncertainty of the repayment from Zhangxun. In addition, the Company incurred additional $32,236 intercompany receivables from Zhangxun during the three months ended September 30, 2023, for which, the Company also netted off with gain on disposal of Zhangxun. The following table summarizes the carrying value of the assets and liabilities of Zhangxun at June 30, 2023.
Cash |  | $ | 34 |
Accounts receivable |  |  | 254,988 |
Other current assets |  |  | 50,406 |
Fixed assets, net |  |  | 10,012 |
Intangible assets, net |  |  | 344,629 |
Total assets |  |  | 660,069 |
Accounts payable |  | $ | 530,260 |
Advance from customers |  |  | 94,126 |
Accrued liability and other payables |  |  | 749,156 |
Loan payables |  |  | 153,045 |
Intercompany payables to existing entities |  |  | 1,475,216 |
Total liabilities |  |  | 3,001,803 |
Non-controlling interest |  | $ | (7,079 | )
The following table shows the results of operations relating to discontinued operations Zhangxun for the years ended June 30, 2024 and 2023, respectively.
|  | YEARS ENDED JUNE 30, |
|  | 2024 |  |  | 2023 |
Revenues |  | $ | - |  |  | $ | 3,520,142 |
Cost of goods sold |  |  | - |  |  |  | 3,199,171 |
Gross profit |  |  | - |  |  |  | 320,971 |
Operating expenses |  |  |  |  |  |  |  |
Selling |  |  | - |  |  |  | 318,092 |
General and administrative |  |  | - |  |  |  | 1,036,976 |
Research and development |  |  | - |  |  |  | 351,385 |
Total operating expenses |  |  | - |  |  |  | 1,706,453 |
Loss from operations |  |  | - |  |  |  | (1,385,482 | )
Gain on disposal of Zhangxun |  |  | 833,546 |  |  |  | - |
Other income, net |  |  | - |  |  |  | 11,587 |
Income (loss) before income tax |  |  | 833,546 |  |  |  | (1,373,895 | )
Income tax |  |  | - |  |  |  | - |
Income (loss) before noncontrolling interest from discontinued operations |  |  | 833,546 |  |  |  | (1,373,895 | )
Less: loss attributable to noncontrolling interest from discontinued operations |  |  | - |  |  |  | (209,501 | )
Net income (loss) to the Company from discontinued operations |  | $ | 833,546 |  |  | $ | (1,164,394 | )

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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