| LOAN RECEIVABLE FROM THIRD PARTIES, NET |
NOTE 5 — LOAN RECEIVABLE FROM THIRD PARTIES, NET Loan receivable from third parties, net consists of the following: | | | June 30,
2026 | | | June 30,
2025 | | | Unrelated individual A (1) | | $ | 8,854,057 | | | $ | 11,380 | | | Unrelated individual B (2) | | | 574,789 | | | | — | | | Unrelated individual C | | | 9,138 | | | | — | | | Gross loan receivable | | | 9,437,984 | | | | 11,380 | | | Less: allowance for credit loss | | | (2,256,647 | ) | | | — | | | Loan receivable, net | | | 7,181,337 | | | | 11,380 | | | (1) | On October 8, 2024, the Company entered into a loan agreement with a third party providing for a principal amount of up to $2 million at a fixed interest rate of 4.35% per annum. This agreement was subsequently amended on July 3, 2025, to increase the available principal to $6 million and extend the maturity date at July 9, 2026, while remaining the same fixed interest rate. On December 25, 2025, the facility was further expanded to a maximum principal amount of $10 million. On July 3, 2026, the maturity date was extended to July 8, 2027. The loan is unsecured and without a pledge or guarantee from the third party. As of June 30, 2026 and 2025, the gross loan balance was $8,854,057 and $11,380, respectively. Management expect to collect the loan receivable before June 30, 2027. | | (2) | During the year ended June 30, 2026, the Company entered into a loan agreement with a third party with a principal of $574,789 (RMB3,900,000), interest-free, with maturity date of December 31, 2026. | The Company recognized interest income of $268,711 and $28,120 in connection with loan receivable from third parties for the years ended June 30, 2026 and 2025, respectively. For the year ended June 30, 2026, the Company recognized an allowance for expected credit loss allowance of $2,256,647 against the loan balance. The net carrying amount of the loan as of June 30, 2026 was $7,181,337 and the Company expected to collect within twelve months.
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