The
Company’s advances to suppliers are as follows:
As of
As of
March 31,
June 30,
2026
2025
Commodity trading (1)
$
19,203,660
-
Freight fees
194,688
1,084
Advances to suppliers
$
19,398,348
$
1,084
(1)
As of March 31, 2026, the Company
made advance payments of $19,203,660
(paid in Djiboutian francs of approximately DJF 3.4
billion) to third-party suppliers in connection with purchase agreements for agricultural commodities in connection with certain trade
opportunities that the Company identified. The advances represent prepayments for inventory to be delivered in subsequent periods. Management
expects delivery of the related goods by October 2026 and is currently evaluating whether to pursue additional opportunities in the commodity
trading business. Key risks associated with these transactions include but not limited to foreign exchange risk stemming from conversion
between Djiboutian franc and US dollars, risks related to the political and economic stability of Djibouti, performance risk of the counterparty
suppliers and the legal enforceability of the executed purchase agreements. These advances are unsecured and non-interest bearing. Management
has evaluated the recoverability of these advances and determined that no allowance was necessary as of March 31, 2026.