| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
22. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
The
Company performed a test on the restricted net assets of its consolidated subsidiaries, the VIE, and the VIE’s subsidiaries in
accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements”
and concluded that it was applicable for the Company to disclose the financial information for the parent company only.
The
subsidiaries did not pay any dividends to the Company for the years presented. Certain information and footnote disclosures generally
included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain
supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the
notes to the consolidated financial statements of the Company.
As
of December 31, 2024, the Company did not have significant capital commitments and other significant commitments, or guarantees, except
for those which have been separately disclosed in the consolidated financial statements.
| | |
As of
December 31, | | |
As of
June 30, | |
| | |
2024 | | |
2024 | |
| ASSETS | |
| | |
| |
| Cash | |
$ | 21,630 | | |
$ | 10,711 | |
| Digital assets, net | |
| 140,586 | | |
| 140,586 | |
| Prepaid expenses and other current assets | |
| 4,115,914 | | |
| 4,409,914 | |
| Due from a related party | |
| 5,631,319 | | |
| 4,408,299 | |
| TOTAL CURRENT ASSETS | |
| 9,909,449 | | |
| 8,969,510 | |
| | |
| | | |
| | |
| Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries | |
| 19,067,455 | | |
| 6,372,217 | |
| TOTAL ASSETS | |
| 28,976,904 | | |
| 15,341,727 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Other Payable | |
$ | 163,192 | | |
$ | 32,795 | |
| Due to a related party | |
| - | | |
| - | |
| TOTAL CURRENT LIABILITIES | |
$ | 163,192 | | |
$ | 32,795 | |
| TOTAL LIABILITIES | |
$ | 163,192 | | |
$ | 32,795 | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Ordinary shares (par value $0.01 per share; 64,400,000 Class A ordinary shares authorized; 14,362,733 and 3,362,733 Class A ordinary shares issued and outstanding as of December 31, 2024 and June 30, 2024, respectively; 10,600,000 Class B ordinary shares authorized, 576,308 Class B ordinary shares issued and outstanding as of December 31, 2024 and June 30, 2024, 1,000,000 Class C ordinary shares authorized, nil Class C shares issued and outstanding as of December 31, 2024 and June 30, 2024) | |
| 149,390 | | |
| 39,390 | |
| Subscription receivable | |
| (15,441 | ) | |
| (15,441 | ) |
| Additional paid-in capital | |
| 53,413,337 | | |
| 42,459,143 | |
| Retained earnings | |
| (22,927,867 | ) | |
| (25,468,546 | ) |
| Accumulated other comprehensive (loss) income | |
| (1,805,707 | ) | |
| (1,705,614 | ) |
| TOTAL SHAREHOLDERS’ EQUITY | |
| 28,813,712 | | |
| 15,308,932 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | |
$ | 28,976,904 | | |
$ | 15,341,727 | |
| | |
For the Six Months Ended December 31, | |
| | |
2024 | | |
2023 | |
| Revenue | |
$ | 219,971 | | |
$ | - | |
| Cost of revenue | |
| (214,249 | ) | |
| - | |
| Gross profit | |
| 5,722 | | |
| - | |
| | |
| | | |
| | |
| Selling expenses | |
| - | | |
| 1,151,120 | |
| General and administrative expenses | |
| 260,403 | | |
| 250,000 | |
| Financial expenses | |
| (23 | ) | |
| (1,488 | ) |
| Loss from operation | |
| (254,658 | ) | |
| (1,399,632 | ) |
| Other loss: | |
| (394 | ) | |
| | |
| Share of income of subsidiaries, consolidated VIE, and VIE’s subsidiaries | |
| 2,795,731 | | |
| (965,617 | ) |
| | |
| | | |
| | |
| Income (loss) before income tax expense | |
| 2,540,679 | | |
| (2,365,249 | ) |
| Income tax expense | |
| - | | |
| - | |
| Net income (loss) | |
$ | 2,540,679 | | |
$ | (2,365,249 | ) |
| Other Comprehensive loss | |
| | | |
| | |
| Foreign currency translation (loss) income | |
| (100,093 | ) | |
| 233,868 | |
| Total comprehensive income (loss) | |
$ | 2,440,586 | | |
$ | (2,131,381 | ) |
| | |
For the Six Months Ended
December 31, | |
| | |
2024 | | |
2023 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | |
| |
| Net income (loss) | |
| 2,540,679 | | |
| (2,365,249 | ) |
| Depreciation and amortization | |
| | | |
| | |
| Equity loss (income) of subsidiaries | |
| (2,795,731 | ) | |
| 965,617 | |
| Changes in operating assets and liabilities | |
| | | |
| | |
| Other non-current assets | |
| - | | |
| 231,483 | |
| Other current assets | |
| 294,000 | | |
| 1,754,652 | |
| Due from subsidiaries and the VIE | |
| (123,020 | ) | |
| (1,502,500 | ) |
| Other payable | |
| 130,397 | | |
| 13,884 | |
| Due from a related party | |
| - | | |
| - | |
| Net cash provided by (used in) operating activities | |
$ | 46,325 | | |
| (902,113 | ) |
| | |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | | |
| | |
| Investment in a subsidiary | |
| (9,999,600 | ) | |
| - | |
| Net cash used in investing activities | |
| (9,999,600 | ) | |
| - | |
| | |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | |
| Issuance of Class A Ordinary Shares | |
| 10,000,000 | | |
| - | |
| Payment for deferred offering costs | |
| (35,806 | ) | |
| - | |
| Net cash provided by financing activities | |
| 9,964,194 | | |
| - | |
| | |
| | | |
| | |
| | |
| | | |
| | |
| Net increase (decrease) in cash | |
| 10,919 | | |
| (902,113 | ) |
| Cash at the beginning of the period | |
| 10,711 | | |
| 1,095,007 | |
| Cash at the end of the period | |
$ | 21,630 | | |
| 192,894 | |
|