v3.26.1
Segment Information
 9 Months Ended
Mar. 31, 2026
Segment Information [Abstract]  
Segment information

Note 17 – Segment information

 

The Company’s operating segments have been identified based on the way management organizes the business by the nature of services provided to customers and how the Chief Operating Decision Maker (“CODM”) manages the business and allocates resources. The CODM for the Company is its Chief Executive Officer. The Company has two reportable segments: (i) payment processing and e-commerce operation on its ZCITY platform, and (ii) customized software development service.

 

The accounting policies applied to each segment are consistent with those described in the summary of significant accounting policies. The CODM evaluates the performance of reportable segments and allocates resources primarily based on segment profit (loss). Segment profit (loss) represents segment revenue less directly attributable and allocated cost of revenue and operating expenses. Segment profit (loss) is the sole measure used by the CODM and is determined in a manner consistent with the measurement principles used in preparing the consolidated financial statements in accordance with ASC 280-10-50-28A. The CODM does not evaluate the performance of segments using asset information. As such, the Company does not allocate assets to its reportable segments. Intersegment sales and transfers are accounted for as if the transactions were made with third parties, using current market prices.

 

The Company’s reportable segments represent strategic business units that offer different products and services and are managed separately due to their distinct operational and marketing requirements.

 

The following tables summarize the Company’s segment information for the three months ended March 31, 2026 and 2025 and for the nine months ended March 31, 2026 and 2025.

 

  

For the Three Months Ended
March 31, 2026

(Unaudited)

 
   ZCITY
Platform		   Customized
Software
development
service		   Total 
             
Revenue from external customers  $1,500,907   $
              -
   $1,500,907 
                
Less:               
Cost of revenue   1,494,492    
-
    1,494,492 
Advertising   34,705    
-
    34,705 
Payment transaction fee   15,905    
-
    15,905 
Other marketing expense   62    
-
    62 
Salaries   202,518    
-
    202,518 
Gain from disposal of subsidiaries   (1,006,730)   
-
    (1,006,730)
Provision for credit loss   1,406,333    
-
    1,406,333 
Depreciation and amortization   25,746    
-
    25,746 
Office expense   34,759    
-
    34,759 
Research and development   78,892    
-
    78,892 
Interest expense   84    
-
    84 
Segment loss   (785,859)   
-
    (785,859)
                
Reconciliation of profit or loss               
Less: Unallocated amounts               
Professional fees             2,125,379 
D&O insurance             12,104 
Stock based compensation             251,196 
Other corporate expenses             280,167 
Gain from change in fair value of derivative liabilities             (1,183,478)
Net loss before income taxes            $(2,271,228)
  

For the Three Months Ended
March 31, 2025

(Unaudited)

 
   ZCITY Platform   Customized Software development service   Total 
             
Revenue from external customers  $63,915   $602,606   $666,521 
                
Less:               
Cost of revenue   46,346    133,892    180,238 
Segment gross profit  $17,569   $468,714    486,283 
                
Less:               
Advertising   2,894    
-
    2,894 
Payment transaction fee   2,575    
-
    2,575 
Other marketing expense   2,496    
-
    2,496 
Salaries   80,155    
-
    80,155 
Depreciation and amortization   69,125    115,467    184,592 
Office expense   1,774    2,964    4,738 
Research and development   5,343    
-
    5,343 
Unrealized holding loss on marketable securities   501,848    
-
    501,848 
Interest expense   230    385    615 
Segment (loss) income   (648,871)   349,898    (298,973)
                
Reconciliation of profit or loss               
Less: Unallocated amounts               
Professional fees             58,174 
D&O insurance             11,329 
Stock based compensation             70,000 
Other corporate expenses             83,317 
Change in fair value of derivative liabilities             (1,781,758)
Net income before income taxes            $1,259,965 
  

For the Nine Months Ended
March 31, 2026

(Unaudited)

 
   ZCITY
Platform		   Customized
Software
development
service		   Total 
             
Revenue from external customers  $2,764,426   $
-
   $2,764,426 
                
Less:               
Cost of revenue   2,755,818    
-
    2,755,818 
Advertising   65,540    
-
    65,540 
Payment transaction fee   29,943    
-
    29,943 
Other marketing expense   734    
-
    734 
Long-live assets impairment   3,044,877    
-
    3,044,877 
Gain from disposal of subsidiaries   (1,006,730)        (1,006,730)
Provision for credit loss   2,735,181    699,560    3,434,741 
Salaries   529,644    
-
    529,644 
Depreciation and amortization   155,361    
-
    155,361 
Office expense   79,786    
-
    79,786 
Research and development   881,536    
-
    881,536 
Interest expense   1,042    
-
    1,042 
Segment loss   (6,508,306)   (699,560)   (7,207,866)
                
Reconciliation of profit or loss               
Less: Unallocated amounts               
Professional fees             3,458,037 
D&O insurance             45,439 
Stock based compensation             1,138,423 
Other corporate expenses             965,448 
Gain from change in fair value of derivative liabilities             (5,400,218)
Net loss before income taxes            $(7,414,995)
  

For the Nine Months Ended
March 31, 2025

(Unaudited)

 
   ZCITY Platform   Customized Software development service   Total 
             
Revenue from external customers  $573,184   $602,606   $1,175,790 
                
Less:               
Cost of revenue   159,492    133,892    293,384 
Segment gross profit  $413,692   $468,714    882,406 
                
Less:               
Advertising   97,597    
-
    97,597 
Payment transaction fee   16,347    
-
    16,347 
Other marketing expense   11,437    
-
    11,437 
Salaries   451,877    
-
    451,877 
Depreciation and amortization   617,510    115,467    732,977 
Office expense   41,662    2,964    44,626 
Research and development   85,688    
-
    85,688 
Unrealized holding loss on marketable securities   169,183    
-
    169,183 
Interest expense   2,598    385    2,983 
Segment loss   (1,080,207)   349,898    (730,309)
                
Reconciliation of profit or loss               
Less: Unallocated amounts               
Professional fees             547,748 
D&O insurance             48,368 
Stock based compensation             210,000 
Other corporate expenses             147,575 
Change in fair value of derivative liabilities             (1,781,758)
Net loss before income taxes            $97,757 

Other Significant Items:

 

  

For the nine months Ended

March 31, 2026

(Unaudited)

 
   ZCITY
Platform		   Customized
Software
development
service		   Total 
                
Capital expenditure  $1,044,862   $
                -
   $1,044,862 

 

  

For the nine months Ended
March 31, 2025

(Unaudited)

 
   ZCITY
Platform		   Customized
Software
development
service		   Total 
                
Capital expenditure  $4,547   $
                  -
   $4,547