v3.26.3
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Schedule of Income Tax Expense

The Income tax expense applicable to loss before income taxes consists of the following: 

 

    For the Years Ended
June 30,		  
    2026     2025  
Current income tax expense:            
Federal   $ -     $ -  
State     -       -  
Foreign     174,611       233,855  
Total current income tax     174,611       233,855  
Deferred income tax benefit                
Federal     -       -  
State     -       -  
Foreign     (82,900 )     (21,559 )
Total deferred income tax benefit     (82,900 )     (21,559 )
Income tax expense   $ 91,711     $ 212,296  
Schedule of (Loss) Income Before Income Tax

(Loss) income before income tax consists of the following:

 

    For the Years Ended
June 30,		  
    2026     2025  
U.S.     (6,785,652 )     (1,804,645 )
Foreign     (3,261,055 )     118,159  
Loss before income tax   $ (10,046,707 )   $ (1,686,486 )
Schedule of Statutory Rate

The income tax expense differs from the amount computed by applying the U.S. federal statutory rate of 21.0% to loss before income taxes for the year ended June 30, 2026 as follows: 

 

    For the Year Ended
June 30,		  
    2026  
US Federal Statutory Tax Rate   $ (2,109,808 )     21.0 %
                 
State and Local Income Taxes, Net of Federal Income Tax Effect (1)     -       -  
Change in valuation allowance     1,424,986       (14.2 )%
Foreign tax effects                
PRC                
Statutory tax rate difference between PRC and US     (129,635 )     1.3 %
Non-deductible expense     64,414       (0.6 )%
Change in valuation allowance     913,705       (9.0 )%
Other adjustment     (76,191 )     0.7 %
Other foreign jurisdictions     4,240       - %
Total income tax expense   $ 91,711       (0.9 )%

 

(1) The Company’s U.S. subsidiary is incorporated in Nevada, which does not impose a state corporate income tax. Accordingly, there is no state and local income tax expense related to the U.S. subsidiary.

 

The income tax expense differs from the amount computed by applying the U.S. federal statutory rate of 21% to loss before income taxes for year ended June 30, 2025 as follows:

 

    For the 
Year Ended
June 30,		  
    2025  
Loss before tax   $ (1,686,486 )
Statutory state tax rate     21 %
Income tax recovery at the federal statutory rate     (354,162 )
         
Non-deductible expense     26,565  
Change in valuation allowance     535,167  
Foreign tax rate differential     4,726  
Total income tax expense   $ 212,296  
Schedule of Cash Paid for Income Tax

The amount of cash paid for income taxes (net of refunds) for the year ended June 30, 2026 is as follows:

 

    For the
 Year Ended
June 30,		  
    2026  
Federal   $ -  
State        -  
Foreign        
PRC     18,009  
Total income taxes paid, net of refunds   $ 18,009  
Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities consist of the following: 

 

    June 30
2026		     June 30,
2025		  
Deferred tax assets:            
Allowance for credit loss – account receivable   $ 23,874     $ 8,260  
Allowance for credit loss – loan receivable     473,896       -  
Allowance for credit loss – advances to supplier     736,909       -  
Accrued advertising expense     51,522       -  
Refundable liability net of right of return asset     87,106       -  
Non-capital loss carried forward     1,574,163       535,167  
Total deferred tax assets     2,947,470       543,427  
Less: Valuation allowance     (2,873,858 )     (535,167 )
Total deferred tax assets, net of valuation allowance     73,612       8,260  
Net off against deferred tax liabilities     (73,612 )     (8,260 )
Deferred tax assets, net   $ -     $ -  
                 
Deferred tax liabilities:                
Intangible asset – license   $ (73,612 )   $ (91,360 )
Total deferred tax liabilities     (73,612 )     (91,360 )
Net off against deferred tax assets     73,612       8,260  
Deferred tax liabilities, net   $ -     $ (83,100 )