| Other payables and accrued liabilities |
Note 9 — Other payables and accrued liabilities As of June 30, 2026 and 2025, other payables and accrued liabilities consist of the following: | | | June 30,
2026 | | | June 30,
2025 | | | | | | | | | | | Payroll and payable tax payable | | $ | 306,200 | | | $ | 174,684 | | | Interest payable* | | | 5,140,441 | | | | 2,309,106 | | | Professional fee payable | | | 343,717 | | | | 168,186 | | | Accrued warranty expenses | | | 433,165 | | | | 328,438 | | | Excise tax payable** | | | 556,620 | | | | 556,620 | | | Refunds payable | | | 111,126 | | | | - | | | Research and development (“R&D”) fee payable*** | | | 934,500 | | | | - | | | Others | | | 45,188 | | | | 33,925 | | | Total other payables and accrued liabilities | | $ | 7,870,957 | | | $ | 3,570,959 | | | * | On April 9, 2024, the Company and a vendor entered into a purchase and financing agreement, which was further amended on October 1, 2024 and December 12, 2025. Pursuant to these agreements, the Company is subject to interest of $0.618% per month, or 0.0206% per day, on the 90% of purchase amount, from the date of the vendor arranging the production (“Due Date”), provide that such payment is made within 120 days of the Due Date. The interest rate will increase to 2.5% per months beginning on the 121st day of the Due Date, if the Company falls to pay the outstanding balance within 120 days of the Due Date. As of June 30, 2026 and 2025, the accounts payable balance due to this vendor were $33,347,658 and $26,233,992, respectively. | | ** | These balances were carried from ACAC, and payable by the Company, as a result on 1% excise tax on certain repurchases (including redemptions) of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023 under the Inflation Reduction Act of 2022. | | | | | *** | In January 2026, the Company and a third party entered into a R&D agreement, pursuant to which the third party will provide the Company technical development services for the operating system of the Company’s mobile phone products in three phases, and the Company will pay a total of $3,115,000 in four milestone-based installments. As of June 30, 2026, approximately 60% of the project has been completed. Accordingly, the Company recognized aggregated $1,869,000 R&D expenses under the agreement for the year ended June 30, 2026, reflecting progress in the development phase. As of June 30, 2026, $934,500 remained unpaid. |
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