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

NOTE 20 – SEGMENT INFORMATION

 

The Company follows ASC Topic 280, Segment Reporting, which requires that companies to disclose segment data based on how the chief operating decision maker (“CODM”) makes decision about allocating resources to each segment and evaluating their performances. The Company’s CODM has been identified as the Chief Executive Officer. The Company has two operating and reportable segments, consisting of IT services and academic education service. The reportable segments align with the manner in which the CODM currently receives and uses financial information to allocate resource and evaluate the performance of the segments.

 

The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable to each segment. The CODM uses gross profit, gross profit margin, operating income (loss), operating margin, and income (loss) before tax to assess financial performance and allocate resources. The CODM considers budget to actual comparisons on a regular basis when assessing the operating results and making resource decisions to improve profitability. The CODM also uses the budget to actual comparisons to make decisions aligned with the Company’s strategic initiatives and capital allocation priorities.

 

The Company’s CODM does not evaluate its operating segments using discrete asset information. There is no asset information that are supplemental to those disclosed in these consolidated financial statements, that are regularly provided to the CODM.

 

The table below provides a summary of the Company’s operating segment operating results for the year ended June 30, 2026:

 

    For the year ended June 30, 2026  
    IT services     Academic education services     Intersegment
eliminations		     Total  
Revenue     170,545,778       1,665,553            -       172,211,331  
Less:                                
Cost of revenues     140,768,846       764,874       -       141,533,720  
Gross profit     29,776,932       900,679       -       30,677,611  
Gross profit margin     17 %     54 %     -       18 %
Selling and marketing expenses     4,033,819       139,893       -       4,173,712  
General and administrative expenses     28,692,059       1,903,450       -       30,595,509  
Research and development expenses     6,668,643       -       -       6,668,643  
Other segment operating loss (income)*     (733,657 )     1,435,782       -       702,125  
Operating loss     (8,883,932 )     (2,578,446 )     -       (11,462,378 )
Operating margin     (5 )%     (155 )%     -       (7 )%
Total other loss, net     (679,866 )     (12,955 )     -       (692,821 )
Loss before income taxes     (9,563,798 )     (2,591,401 )     -       (12,155,199 )
Other segment (loss) income, net**     (792,937 )     19,535       -       (773,402 )
Net loss     (10,356,735 )     (2,571,866 )     -       (12,928,601 )

 

The table below provides a summary of the Company’s operating segment operating results for the year ended June 30, 2025:

 

    For the year ended June 30, 2025  
    IT services     Academic education services     Intersegment
eliminations		     Total  
Revenue     162,467,057       2,047,049       (32,692 )     164,481,414  
Less:                                
Cost of revenues     127,362,787       819,260       (6,051 )     128,175,996  
Gross profit     35,104,270       1,227,789       (26,641 )     36,305,418  
Gross profit margin     22 %     60 %             22 %
Selling and marketing expenses     4,939,341       241,341       -       5,180,682  
General and administrative expenses     30,229,878       1,622,301       -       31,852,179  
Research and development expenses     5,815,555       -       -       5,815,555  
Other segment operating income*     (1,165,694 )     -       -       (1,165,694 )
Operating loss     (4,714,810 )     (635,853 )     (26,641 )     (5,377,304 )
Operating margin     (3 )%     (31 )%             (3 )%
Total other income (loss), net     310,617       (8,927 )     -       301,690  
Loss before income taxes     (4,404,195 )     (644,778 )     (26,641 )     (5,075,614 )
Other segment (loss) income, net**     (1,473,609 )     122,659       -       (1,350,950 )
Net loss     (5,877,804 )     (522,119 )     (26,641 )     (6,426,564 )

 

The table below provides a summary of the Company’s operating segment operating results for the year ended June 30, 2024: 

 

    For the year ended June 30, 2024  
    IT services     Academic education services     Intersegment
eliminations		     Total  
Revenue     141,818,338       1,042,832       (48,444 )     142,812,726  
Less:                                
Cost of revenues     109,506,676       367,886       (8,967 )     109,865,595  
Gross profit     32,311,662       674,946       (39,477 )     32,947,131  
Gross profit margin     23 %     65 %     81 %     23 %
Selling and marketing expenses     4,573,344       -       -       4,573,344  
General and administrative expenses     24,500,116       619,894       -       25,120,010  
Research and development expenses     7,155,949       -       -       7,155,949  
Other segment operating income*     (1,363,757 )     -       -       (1,363,757 )
Operating (loss) income     (2,553,990 )     55,052       (39,477 )     (2,538,415 )
Operating margin     (2 )%     (5 )%     (81 )%     (2 )%
Total other income, net     686,051       8,999       -       695,050  
(Loss) income before income taxes     (1,867,939 )     64,051       (39,477 )     (1,843,365 )
Other segment (loss) income, net **     (16,712 )     12,767       -       (3,945 )
Net (loss) income     (1,884,651 )     76,818       (39,477 )     (1,847,310 )

 

* Other segment operating income includes impairment of goodwill and subsidies and other operating income.
   
** Other segment (loss) income includes provision for income taxes and share of income (loss) in equity method investees.

 

The following table presents revenues by the service lines for the years ended June 30, 2026, 2025 and 2024:

 

    For the year ended June 30  
    2026     2025     2024  
Revenue:                  
IT consulting service     164,064,793       158,790,921       136,844,784  
Customized IT solution service     5,949,195       2,781,538       3,147,593  
Other     531,790       894,598       1,825,961  
IT services subtotal     170,545,778       162,467,057       141,818,338  
Revenue:                        
Academic education service     1,665,553       2,047,049       1,042,832  
Inter-segment*     -       (32,692 )     (48,444 )
Total revenue     172,211,331       164,481,414       142,812,726  

 

The following table presents revenues generated in domestic and overseas markets for the years ended June 30, 2026, 2025 and 2024:

 

    For the year ended June 30  
    2026     2025     2024  
Mainland China     109,515,023       121,989,818       120,510,430  
Singapore     25,962,669       21,882,041       10,987,527  
Hong Kong     23,184,244       14,397,386       6,245,523  
United States     6,355,166       3,881,511       4,367,813  
Japan     4,455,633       2,000,817       566,410  
India     102,395       213,851       8,512  
Others     2,636,201       115,990       126,511  
Total     172,211,331       164,481,414       142,812,726  

 

Long-lived assets by geographic area are presented as follows:

 

    For the year ended June 30  
    2026     2025     2024  
Hong Kong     13,995,880       14,573,483       15,290,412  
Singapore     4,771,157       5,108,371       4,861,111  
Mainland China     1,149,505       1,512,594       1,010,449  
India     15,950       15,841       4,052  
Malaysia     -       2,174       2,373  
Japan     17,629       -       127  
Total     19,950,121       21,212,463       21,168,524