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PROPERTY AND EQUIPMENT, NET
 3 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

NOTE 8 - PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consisted of the following:

 

   September 30, 2024   June 30, 2024 
         
Buildings  $6,324,352   $6,167,928 
Machinery and equipment   3,171,944    3,051,688 
Motor vehicles   267,456    275,366 
Office equipment   101,461    97,882 
Fixture and furniture   105,607    101,936 
Construction in progress   238,966    230,661 
Subtotal   10,209,786    9,925,461 
Less: accumulated depreciation and amortization   (3,796,620)   (3,556,394)
Less: accumulated impairment for property and equipment   (92,523)   (89,308)
Total property and equipment, net  $6,320,643   $6,279,759 

 

Depreciation and amortization expense charged to the continuing operations was US$132,208 and US$133,257 for the three months ended September 30, 2024 and 2023, respectively.

 

Depreciation and amortization expense charged to the discontinued operations was nil and US$2,403 for the three months ended September 30, 2024 and 2023, respectively.

 

The Company also provides its customers with specialized testing devices as its customers could only use these devices to generate results from these rapid diagnostic products. The ownership of these specialized testing devices is not transferred to its customers, but remains as the Company’s properties. The specialized testing devices will be returned to the Company when they are no longer required by the customer. As of September 30, 2024 and June 30, 2024, properties with net book values of US$19,491 and US$24,223 were held by the Company’s customers.

 

 

On May 29, 2023, the Company’s Board approved the pledge of real estate property as collateral to guarantee a personal loan of Yuying Zhang, the former chairman of the Board and legal representative of Tenet-Jove. This collateral was provided in exchange for the transfer of the real estate title from Yuying Zhang to a subsidiary of the Company. According to the memorandum between the Company and Yuying Zhang, it was anticipated that the loan would be repaid and the pledge would be released before May 31, 2024. The Company retains the right to claim full compensation if the property is not released by the due date. On May 24, 2023, Yuying Zhang entered into a loan agreement with Weiqing Guo for a principal amount of RMB 15,000,000, with a due date of May 23, 2023. On May 23, 2023, Yuying Zhang entered into a supplementary agreement with Weiqing Guo, wherein the parties agreed to extend the due date of the principal amount from May 23, 2023 to May 23, 2024, and to provide a mortgage guarantee for the repayment of the principal amount. On May 23, 2024, Yuying Zhang entered into another supplementary agreement with Weiqing Guo, wherein the parties agreed to extend the due date of the principal amount from May 23, 2024 to May 23, 2025, and the real estate property continued to be pledged until May 23, 2025. If Yuying Zhang fails to repay the loan and the property is executed by the Court, the Company has the right to pursue compensation from Zhang Yuying based on the market value of the property. As of September 30, 2024 and June 30, 2024, the net book value of the property was US$1,039,868 and US$1,012,381, respectively.

 

In addition, the Company also pledged certain property and equipment for the Company’s bank loans and its related party’s personal loan (see Note 12 and Note 13).