v3.26.3
Segment Information
 12 Months Ended
Jun. 30, 2026
Segment Information [Abstract]  
Segment information

Note 20 – Segment information

 

The Company’s operating segments have been identified based on the way management organizes the business by the nature of services provided to customers and how the Chief Operating Decision Maker (“CODM”) manages the business and allocates resources. The CODM for the Company is its Chief Executive Officer. The Company has two reportable segments: (i) payment processing and e-commerce operation on its ZCITY platform, and (ii) customized software development service.

 

The accounting policies applied to each segment are consistent with those described in the summary of significant accounting policies. The CODM evaluates the performance of reportable segments and allocates resources primarily based on segment profit (loss). Segment profit (loss) represents segment revenue less directly attributable and allocated cost of revenue and operating expenses. Segment profit (loss) is the sole measure used by the CODM and is determined in a manner consistent with the measurement principles used in preparing the consolidated financial statements in accordance with ASC 280-10-50-28A. The CODM does not evaluate the performance of segments using asset information. As such, the Company does not allocate assets to its reportable segments. Intersegment sales and transfers are accounted for as if the transactions were made with third parties, using current market prices.

 

The Company’s reportable segments represent strategic business units that offer different products and services and are managed separately due to their distinct operational and marketing requirements.

 

The following tables summarize the Company’s segment information for the year ended June 30, 2026 and 2025.

 

    For the Years Ended
June 30, 2026		  
    ZCITY
Platform		     Customized
Software
development
service		     Total  
                   
Revenue from external customers   $ 5,169,784     $ -     $ 5,169,784  
                         
Less:                        
Cost of revenue     (5,161,042 )     -       (5,161,042 )
Segment gross profit   $ 8,742     $ -       8,742  
                         
Less:                        
Advertising     (1,207,891 )     -       (1,207,891 )
Payment transaction fee     (55,231 )     -       (55,231 )
Long-live assets impairment     (3,044,877 )     -       (3,044,877 )
Provision for credit loss     (2,762,951 )     (671,818 )     (3,434,769 )
Other marketing expense     (898 )     -       (898 )
Salaries     (756,525 )     -       (756,525 )
Depreciation and amortization     (5,554 )     -       (5,554 )
Office expense     (121,505 )     -       (121,505 )
Research and development     (1,646,230 )     -       (1,646,230 )
Gain from disposal of subsidiaries     1,013,977       -       1,013,977  
Other segment item     (35,955 )     -       (35,955 )
Segment (loss) income     (8,614,898 )     (671,818 )     (9,286,716 )
                         
Reconciliation of profit or loss                        
Less: Unallocated amounts                        
Professional fees                     (3,149,265 )
D&O insurance                     (69,544 )
Stock based compensation                     (1,845,923 )
Other corporate expenses                     (1,179,271 )
Change in fair value of derivative assets and liabilities                     4,643,137  
Net loss before income taxes                   $ (10,887,582 )

 

    For the Years Ended
June 30, 2025		  
    ZCITY
Platform		     Customized
Software
development
service		     Total  
                   
Revenue from external customers   $ 850,557     $ 1,480,000     $ 2,330,557  
                         
Less:                        
Cost of revenue     206,106       454,626       660,732  
Segment gross profit   $ 644,451     $ 1,025,374       1,669,825  
                         
Less:                        
Advertising     99,656       -       99,656  
Payment transaction fee     17,513       -       17,513  
Long-live assets impairment     19,517,303       -       19,517,303  
Share-based compensation adjustment     2,726,545       -       2,726,545  
Other marketing expense     12,298       -       12,298  
Salaries     547,816       -       547,816  
Depreciation and amortization     895,998       -       895,998  
Office expense     120,546       -       120,546  
Research and development     215,900       -       215,900  
Unrealized holding loss on marketable securities     170,817       -       170,817  
Interest expense     4,999       -       4,999  
Segment (loss) income     (23,684,940 )     1,025,374       (22,659,566 )
                         
Reconciliation of profit or loss                        
Less: Unallocated amounts                        
Professional fees                     1,127,236  
D&O insurance                     64,565  
Stock based compensation                     208,445  
Other corporate expenses                     785,106  
Change in fair value of derivative liabilities                     (1,816,917 )
Net loss before income taxes                   $ (23,028,001 )

 

Other Significant Items:

 

    For the Years Ended
June 30, 2026		  
    ZCITY
Platform		     Customized
Software
development
service		     Total  
                         
Capital expenditure   $ 1,052,587     $     -     $ 1,052,587  

 

    For the Years Ended
June 30, 2025		  
    ZCITY
Platform		     Customized
Software
development
service		     Total  
                         
Capital expenditure   $ 14,818     $     -     $ 14,818  

 

 

Disaggregated information of revenues by regions are as follows:

 

    For the Years Ended
June 30, 2026		  
    ZCITY
Platform		     Customized
Software
development
service		     Total  
                   
Malaysia   $ 5,169,784     $         -     $ 5,169,784  
United States     -       -       -  
Total revenue   $ 5,169,784     $ -     $ 5,169,784  

 

    For the Years Ended
June 30, 2025		  
    ZCITY
Platform		     Customized
Software
development
service		     Total  
                   
Malaysia   $ 850,557     $ -     $ 850,557  
United States     -       1,480,000       1,480,000  
Total revenue   $ 850,557     $ 1,480,000     $ 2,330,557