| PREPAYMENTS AND OTHER ASSETS |
Note 3
— PREPAYMENTS AND OTHER ASSETS
Prepayments
and other current assets consisted of the following:
| | |
As
of December
31,
2025 | | |
As
of
June 30,
2025 | |
| Advance
to crew | |
$ | 215,431 | | |
$ | 172,133 | |
| Advance
to employee | |
| 28,780 | | |
| 57,408 | |
| Rental
deposit(1) | |
| 100,000 | | |
| 500,000 | |
| Prepaid
consulting service fee(2) | |
| 7,479,825 | | |
| — | |
| Other | |
| 76,743 | | |
| 58,810 | |
| Total | |
$ | 7,900,779 | | |
$ | 788,351 | |
Prepayments
and other non-current assets consisted of the following:
| | |
As
of December
31, 2025 | | |
As
of
June 30,
2025 | |
| Loan
security deposit(3) | |
$ | 475,000 | | |
$ | 475,000 | |
| Prepaid
research and development expenses | |
| 100,000 | | |
| - | |
| Prepaid
consulting service fee(2) | |
| 960,959 | | |
| - | |
| Total | |
$ | 1,535,959 | | |
$ | 475,000 | |
| (1) | Rental deposit represents a deposit of $100,000 paid to the lessor of Top Advancer (see Note 8). During the six months ended December 31, 2025, the Company received $400,000 of this deposit, and the remaining balance is expected to be received in March 2026. |
| (2) | This represents prepaid consulting service fees of $8,440,784 paid to third-party service providers for consulting. These services are expected to be rendered over a contractual period of two years. The Company amortizes the prepaid consulting service fees on a straight-line basis over the service period. As of December 31, 2025, $7,479,825 and $960,959 are classified as current and non-current, respectively, based on the expected timing of service delivery. |
| (3) | This is long-term loan security deposit of $475,000, which is expected to be collected at the end of long-term loan agreement (see Note 9). |
|