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OTHER CURRENT ASSETS, NET | 3 Months Ended
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Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
OTHER CURRENT ASSETS, NET | NOTE 7 – OTHER CURRENT ASSETS, NET Other current assets, net consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS
|  | September 30, 2024 |  |  | June 30, 2024 |
Loans to third parties (1) |  | $ | 10,491,713 |  |  | $ | 9,445,164 |
Other receivables (2) |  |  | 2,593,910 |  |  |  | 2,464,188 |
Prepayment for business acquisition (3) |  |  | 2,630,000 |  |  |  | - |
Short-term deposits |  |  | 45,681 |  |  |  | 39,966 |
Prepaid expenses |  |  | 2,873 |  |  |  | 1,658 |
Subtotal |  |  | 15,764,177 |  |  |  | 11,950,976 |
Less: allowance for credit losses |  |  | (4,712,099 | ) |  |  | (4,656,522 | )
Total other current assets, net |  | $ | 11,052,078 |  |  | $ | 7,294,454 |
1) | Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners or employees of the Company. These loans bear interest or no interest and have terms of no more than one year. As of September 30, 2024, loans that amounted to US$1,018,722 were carried forward from fiscal year 2023. On September 20, 2023, the Company lent a loan amounting to US$106,916 to a third party for one year, with a maturity date of September 19, 2024. The loan was extended for one year upon maturity. On December 31, 2023, the Company lent a loan amounting to US$1,478,001 to two third parties for one year, with a maturity date of December 30, 2024. On May 28, 2024, the Company lent a loan amounting to US$2,851,082 to a third party for one year, with a maturity date of May 27, 2025. On June 5, 2024, the Company lent a loan amounting to US$4,233,857 to a third party for one year, with a maturity date of June 4, 2025. For loans entered on May 28, 2024 and June 5, 2024, the Company entered into Debt Transfer Agreements with the borrowers (the “Original Borrowers”) and another third party (the “New Borrower”) on August 20, 2024, pursuant to which the Original Borrowers transferred all their debts to the New Borrower, and the New Borrower agreed to fulfill its repayments obligation to the Company in accordance with the term of the original loan agreements. On July 24, 2024 and September 18, 2024, the Company lent loans amounting to US$114,043 and US$390,160 to two third parties for one year, with a maturity date of July 23, 2025 and September 17, 2025, respectively. In addition, the Company also lent a loan amounting to US$42,766 to a third party during the three months ended September 30, 2024, and the amount is due on demand. The Company periodically reviewed the loans to third parties as to whether their carrying values remain realizable, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of September 30, 2024 and June 30, 2024, the total outstanding balance, including principal and interest, amounted to US$10,491,713 and US$9,445,164, respectively, and the allowance for credit losses was US$2,603,639 and US$2,548,557, respectively. The Company’s management will continue putting effort into the collection of overdue loans to third parties.
2) | Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses, as well as advances for services to other third party.
3) | The amount pertains to prepaid purchase consideration made for the acquisition of Jiangsu Fuwang Medical Equipment Co., Ltd (“Fuwang Medical”). The Company entered into an Equity Acquisition Framework Agreement with a shareholder of Fuwang Medical for the acquisition of his equity interests in Fuwang Medical, and the Company made partial payment of the consideration during the three months ended September 30, 2024.
Movement of allowance for credit losses is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS
|  | September 30, 2024 |  |  | June 30, 2024 |
Beginning balance |  | $ | 4,656,522 |  |  | $ | 3,287,793 |
Acquisition of subsidiaries |  |  | - |  |  |  | 36,393 |
Charge to allowance |  |  | - |  |  |  | 2,248,574 |
Less: disposal of VIEs |  |  | - |  |  |  | (610,751 | )
Foreign currency translation adjustments |  |  | 55,577 |  |  |  | (305,487 | )
Ending balance |  | $ | 4,712,099 |  |  | $ | 4,656,522 |

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