| Related Party Balance and Transactions |
Note 13 - Related Party Balance and Transactions
| Name of related parties |
Relation with the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries |
| |
|
| Ms. Yan Fu |
The Company’s director and chief executive officer and the chief executive officer of Jiangxi Ruanyun |
| Ms. Wei Hu |
The Company’s chief financial officer |
| Mr. Cong Zhao |
The Company’s chief technology officer |
| |
|
| Mr. Linhua Wan |
A management staff member of the Jiangxi Alphabet |
| |
|
| Mr. Xili Huang |
A majority shareholder of Jiangxi Yiluyun Technology Co., Ltd. |
| |
|
| Nanchang Institute of Science & Technology |
The legal representative of Nanchang Institute of Science & Technology is also a shareholder of Jiangxi Ruanyun |
| |
|
| AI Soft Cloud LLC |
Mr. Cong Zhao, the Company’s chief technology officer, is the legal representative |
| |
|
| Link Door Smart Company |
Ms. Yan Fu, the Company’s chief executive officer, is the majority shareholder and Mr. Cong Zhao, the Company’s chief technology officer, is the minority shareholder |
| |
(b) |
The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had the following related party balances as of March 31, 2026 and 2025: |
| Schedule of amount due from related parties |
|
|
|
|
|
|
|
|
| |
|
As of March 31, |
| |
|
2026 |
|
2025 |
| Accounts receivable, net from related party: |
|
|
|
|
|
|
|
|
| Nanchang Institute of Science & Technology(4) |
|
$ |
332,391 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
| Amount due from related parties: |
|
|
|
|
|
|
|
|
| Mr. Cong Zhao(1) (2) |
|
$ |
21,745 |
|
|
$ |
— |
|
| Ms. Xing Xie(1) |
|
|
— |
|
|
|
5,512 |
|
| Mr. Xili Huang(1) |
|
|
— |
|
|
|
5,898 |
|
| |
|
$ |
21,745 |
|
|
$ |
11,410 |
|
| Amount due to related parties: |
|
|
|
|
|
|
|
|
| Ms. Yan Fu(3) |
|
$ |
45,540 |
|
|
$ |
43,289 |
|
| Nanchang Institute of Science & Technology (5) |
|
|
12,942 |
|
|
|
— |
|
| Total |
|
$ |
58,483 |
|
|
$ |
43,289 |
|
(1) All balances with the related parties
as of March 31, 2026 and 2025 were unsecured, interest-free and had no fixed terms of repayments.
(2) The amounts due from Mr. Cong Zhao
were advances made for a business project, which were repaid in full as of the date of the filing of this annual report with the SEC.
(3) The amounts due to Ms. Yan Fu primarily
consisted of (1) the operating lease expenses paid on behalf of the Company by Ms. Yan Fu and (2) sales commissions owed her.
(4)
The accounts receivable balance as of March 31, 2026 is presented net of a $9,985 allowance
for credit losses. This allowance, together with the $1,742,065 addition to the allowance
for third-party accounts receivable shown in Note 4, reconciles to the $1,752,050 provision
for credit losses presented in the consolidated statement of cash flows. As of July 20, 2026,
approximately $0.15 million, or 45%, of the net accounts receivable balance from Nanchang
Institute of Science & Technology as of March 31, 2026 had been collected.
(5) The amounts due to Nanchang Institute
of Science & Technology primarily consisted of the utility expenses paid on behalf of Jiangxi Yunxiaotong.
| |
(c) |
The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had the following related party transactions for the years ended March 31, 2026 and 2025: |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
For the Years Ended |
| |
|
Nature |
|
March 31, 2026 |
|
March 31, 2025 |
| Nanchang Institute of Science & Technology |
|
Sales made during the year |
|
$ |
815,372 |
|
|
$ |
— |
|
| AI Soft Cloud LLC |
|
Sales made during the year |
|
$ |
710,280 |
|
|
$ |
— |
|
| Link Door Smart Company |
|
Sales made during the year |
|
$ |
532,055 |
|
|
$ |
— |
|
| Ms. Wei Hu |
|
Share-based compensation |
|
$ |
225,390 |
|
|
$ |
— |
|
| Mr. Xili Huang |
|
Share-based compensation |
|
$ |
225,390 |
|
|
$ |
— |
|
|