v3.25.1
RELATED PARTY TRANSACTIONS
 9 Months Ended 12 Months Ended
Mar. 31, 2025
Jun. 30, 2024
RELATED PARTY TRANSACTIONS

Note 14 — RELATED PARTY TRANSACTIONS

 

The table below sets forth major related parties of the Company and their relationships with the Company:

 

 

Entity or individual name   Relationship with the Company
Feng Xie   Founder and controlling shareholder of the Company
Wuhan Huiyu   Investee of the Company
Shanghai Dongying Network Technology Co., Ltd. (“Shanghai Dongying”)   Investee of the Company
Mobile Motion Co., Limited (“Mobile Motion”)   Wholly-owned subsidiary of investee of the Company

 

(a)The Company entered into the following related party transactions:

 

The Company invested in companies engaged in mobile game development and required the royalty right of the games from such investees to distribute on third-party platforms. The Company typically pays one-time royalties, continues to share profits, and/or pays customized design fees to such investees.

 

 

           
   For the
Nine Months Ended
March 31,		 
   2025   2024 
Royalty fee and service from related parties          
Wuhan Huiyu  $261,084   $316,790 
Shanghai Dongying   1,709,587    1,984,280 
Mobile Motion   434,398    714,689 
Total  $2,405,069   $3,015,759 

  

1) The Company entered into an exclusive game agency agreement with Wuhan Huiyu in January 2020. The exclusive agency term is eight years from the date of launching the game. Pursuant to the exclusive game agency agreement, the Company shares 15% to 18% of gross profit generated by the game with Wuhan Huiyu on a monthly basis. The Company recorded $261,084 and $316,790 of profit-sharing expenses for the nine months ended March 31, 2025 and 2024, respectively.
2) The Company entered into a technology development agreement with Shanghai Dongying in January 2021 to customize design the game. During the year ended June 30, 2024, the Company entered supplementary agreement with Shanghai Dongying regarding the profit-sharing policy. Pursuant to supplementary agreement, the Company shares 25% of operating income of the game generated by the game with Shanghai Dongying on a monthly basis. The Company recorded $1,709,587 and $1,984,280 of profit-sharing expenses for the nine months ended March 31, 2025 and 2024, respectively.
3) The Company entered into an exclusive game agency agreement with Mobile Motion in January 2021. The exclusive agency term is eight years from the date of launching the game. The Company recorded $25,248 and $25,194 of amortization of royalty fees for the nine months ended March 31, 2025 and 2024, respectively. The Company record $409,150 and $689,496 of customized design fees for the nine months ended March 31, 2025 and 2024.

  

(b)The Company had the following significant related party balances:

 

Advanced to Suppliers — related parties

 

As of March 31, 2025 and June 30, 2024, advanced to suppliers - related parties, consisted as following:

 

 

           
   As of 
   March 31,
2025		  

June 30,

2024

 
Wuhan Huiyu  $42,285   $- 
Shanghai Dongying   552,343    320,488 
Mobile Motion   704,937    873,717 
Total  $1,299,565   $1,194,205 

 

Due to related party

 

As of March 31, 2025 and June 30, 2024, the Company had a due to related party balance of nil and $107,361, respectively, to Feng Xie. The advances were due on demand and without interest. The Company paid off the due to Feng Xie during the nine months ended March 31, 2025.

 

  
Gamehaus Inc [Member]    
RELATED PARTY TRANSACTIONS  

Note 14 — RELATED PARTY TRANSACTIONS

 

The table below sets forth major related parties of the Company and their relationships with the Company:

 

 

Entity or individual name   Relationship with the Company
Feng Xie   Founder and controlling shareholder of the Company
Wuhan Huiyu   Investee of the Company
Shanghai Dongying Network Technology Co., Ltd. (“Shanghai Dongying”)   Investee of the Company
Mobile Motion Co., Limited (“Mobile Motion”)   Wholly-owned subsidiary of investee of the Company

 

(a) The Company entered into the following related party transactions:

 

The Company invested in companies engaged in mobile game development and required the royalty right of the games from such investees to distribute on third-party platforms. The Company typically pays one-time royalties, continues to share profits, and/or pays customized design fees to such investees.

 

   2024   2023 
   For the years ended
June 30,		 
   2024   2023 
Royalty fee and service from related parties          
Wuhan Huiyu  $450,761   $524,211 
Shanghai Dongying   2,860,905    - 
Mobile Motion   1,951,176    34,880 
Total  $5,262,842   $599,091 

 

 

1) The Company entered into an exclusive game agency agreement with Wuhan Huiyu in January 2020. The exclusive agency term is eight years from the date of launching the game. Pursuant to the exclusive game agency agreement, the Company shares 15% to 18% of gross profit generated by the game with Wuhan Huiyu on a monthly basis. The Company recorded $450,761 and $524,211 of profit-sharing expenses for the years ended June 30, 2024 and 2023, respectively.
2) The Company entered into a technology development agreement with Shanghai Dongying in January 2021 to customize design the game. During the year ended June 30, 2024, the Company entered supplementary agreement with Shanghai Dongying regarding the profit-sharing policy. Pursuant to supplementary agreement, the Company shares 25% of operating income of the game generated by the game with Shanghai Dongying on a monthly basis. The Company recorded $2,860,905 and nil of profit-sharing expenses for the years ended June 30, 2024 and 2023, respectively.
3) The Company entered into an exclusive game agency agreement with Mobile Motion in January 2021. The exclusive agency term is eight years from the date of launching the game. The Company paid an initial royalty fee of approximately $300,000 (RMB1.9 million). The Company recorded $33,567 and $34,880 of amortization of royalty fees for the years ended June 30, 2024 and 2023, respectively. The Company record $1,917,609 and nil of customized design fees for the years ended June 30, 2024 and 2023.

 

(b) The Company had the following significant related party balances:

 

Advanced to Suppliers — related parties

 

As of June 30, 2024 and 2023, advanced to suppliers - related parties, consisted as following:

 

   2024   2023 
  

As of June 30,

 
   2024   2023 
Shanghai Dongying  $320,488   $2,513,370 
Mobile Motion   873,717    1,206,219 
Total  $1,194,205   $3,719,589 

 

 

Due to related party

 

As of June 30, 2024 and 2023, the Company had a due to related party balance of $107,361 and nil, respectively, to Feng Xie. The advances were due on demand and without interest.