| Prepaid expenses and other current assets |
Note 7 — Prepaid expenses and other current assets As of June 30, 2026 and 2025, prepaid expenses and other current assets consist of the following: | | | June 30,
2026 | | | June 30,
2025 | | | | | | | | | | | Other receivables(1) | | $ | 213,565 | | | $ | 177,814 | | | Prepaid rent | | | - | | | | 355,677 | | | Prepaid research and development fees | | | 4,000 | | | | 198,328 | | | Prepaid insurance and subscriptions | | | 239,559 | | | | 153,659 | | | Prepaid professional fee | | | 8,002 | | | | 96,839 | | | Prepayment to be refunded(2) | | | 616,116 | | | | 1,116,116 | | | Advances to a third party | | | 15,500 | | | | 19,500 | | | Other prepaid expenses | | | 12,359 | | | | 37,161 | | | Less: allowance for credit losses (1) (2) | | | (836,931 | ) | | | (317,282 | ) | | Total prepaid expenses and other current assets | | $ | 272,170 | | | $ | 1,837,812 | | | (1) | This represents receivables from payments made on behalf of a vendor and other fees and bank fee receivables. $220,815 and $48,317 allowance for credit losses was recorded for the balances due to aging of the receivables as of June 30, 2026 and 2025, respectively. | | (2) | This represents prepayment to be refunded resulting from the cancellation of purchase orders. $616,116 and $268,965 allowance for credit losses was recorded for the balances due to aging of the prepayments as of June 30, 2026 and 2025, respectively. | For the years ended June 30, 2026 and 2025, the Company recognized $519,649 and $317,282 on provision of allowance on credit losses for prepaid expenses and other current assets, respectively. Movement of allowance for credit losses consisted of the following for the period ended the date indicated: | | | For the Years Ended
June 30, | | | | | 2026 | | | 2025 | | | | | | | | | | | Balance as of the beginning of the year | | $ | 317,282 | | | $ | - | | | Addition | | | 519,649 | | | | 317,282 | | | Balance as of the end of the year | | $ | 836,931 | | | $ | 317,282 | |
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