| OTHER RECEIVABLES, NET |
Note 5. OTHER RECEIVABLES, NET
The Company’s other receivables are as follows:
| | |
September 30, | | |
June 30, | |
| | |
2023 | | |
2023 | |
| Advances to customers* | |
$ | 7,049,697 | | |
$ | 7,060,456 | |
| Employee business advances | |
| 17,209 | | |
| 10,570 | |
| Total | |
| 7,066,906 | | |
| 7,071,026 | |
| Less: allowances for credit losses | |
| (6,983,268 | ) | |
| (6,994,212 | ) |
| Other receivables, net | |
$ | 83,638 | | |
$ | 76,814 | |
| * | On March 23, 2023, SG Shipping
& Risk Solution Inc. an indirect wholly owned subsidiary of SGLY entered into an operating income right transfer contract with Goalowen
Inc. pursuant to which Goalowen agreed to transfer its rights to receive income from operating a tuna fishing vessel to SG Shipping for
$3 million. Such contract was signed by the Company’s former COO Jing Shan without the Board’s authorization. On May 5, 2023,
Ms. Shan made a wire transfer of $3 million to Goalowen without the Board’s authorization,. It was recorded as an Advance to customers.
As of June 30, 2023, the Company evaluated the collection possibility, and decided to provide a 100% allowance provision in the amount
of $3 million. |
Movement of allowance for doubtful accounts are
as follows:
| | |
September 30, | | |
June 30, | |
| | |
2023 | | |
2023 | |
| Beginning balance | |
$ | 6,994,212 | | |
$ | 3,942,258 | |
| Increase | |
| - | | |
| 3,000,000 | |
| Recovery of doubtful accounts | |
| - | | |
| - | |
| Less: write-off | |
| - | | |
| - | |
| Exchange rate effect | |
| (10,944 | ) | |
| 51,954 | |
| Ending balance | |
$ | 6,983,268 | | |
$ | 6,994,212 | |
|