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Disposal of Subsidiary

12 Months Ended

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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- References

No definition available.

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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

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