| PREPAYMENTS AND OTHER CURRENT ASSETS |
NOTE 5 — PREPAYMENTS AND OTHER CURRENT ASSETS
Prepayments
and other current assets consisted of the following:
| | |
As of
June 30, | |
| | |
2025 | | |
2024 | |
| VAT recoverable | |
$ | 1,939 | | |
$ | 39,161 | |
| Prepaid expenses and others current assets | |
| 13,209 | | |
| 54,056 | |
| Loans to third parties* | |
| - | | |
| 9,457,764 | |
| Subtotal | |
| 15,148 | | |
| 9,550,981 | |
| Less: allowance for doubtful accounts | |
| (814 | ) | |
| (112,541 | ) |
| Total | |
$ | 14,334 | | |
$ | 9,438,440 | |
| * | During the year ended June 30, 2024, the Company provided loans to some third parties for their working capital needs. These loans have a term of one year and bear interest at 8% per annum. As of June 30, 2025, Elitepro Innovation Limited, who borrowed approximately $5.3 million from the Company, had repaid all principal and $240,576 in interest and Nexustech Services Limited, who borrowed approximately $6.1 million from the Company, had repaid all principal and $236,990 in interest. |
Allowance for credit losses movement is as follows:
| | |
For the years ended, | |
| | |
2025 | | |
2024 | |
| Beginning balance | |
$ | 112,541 | | |
| - | |
| Provision | |
| 584 | | |
| 112,541 | |
| Reduction | |
| (112,311 | ) | |
| - | |
| Ending balance | |
$ | 814 | | |
$ | 112,541 | |
|