OTHER CURRENT ASSETS, NET (Tables)

6 Months Ended

Dec. 31, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

SCHEDULE OF OTHER CURRENT ASSETS

Other current assets, net consisted of the following:

	December 31, 2024			June 30, 2024
Loans to third parties (1)	$	9,986,234		$	9,445,164
Other receivables (2)		3,644,993			2,464,188
Prepayment for business acquisition (3)		2,630,000			-
Short-term deposits		43,906			39,966
Prepaid expenses		1,765			1,658
Subtotal		16,306,898			11,950,976
Less: allowance for credit losses		(4,319,884	)		(4,656,522	)
Total other current assets, net	$	11,987,014		$	7,294,454

1)

Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners or employees of the Company. These loans bear interest or no interest and have terms of no more than one year. As of December 31, 2024, loans that amounted to US$688,642 were carried forward from fiscal year 2023. On September 20, 2023, the Company lent a loan amounting to US$102,761 to a third party for one year, with a maturity date of September 19, 2024. The loan was extended for one year upon maturity. On December 31, 2023, the Company lent a loan amounting to US$1,420,573 to two third parties for one year, with a maturity date of December 30, 2024. On May 28, 2024, the Company lent a loan amounting to US$2,740,304 to a third party for one year, with a maturity date of May 27, 2025. On June 5, 2024, the Company lent a loan amounting to US$4,069,352 to a third party for one year, with a maturity date of June 4, 2025. For loans entered on May 28, 2024 and June 5, 2024, the Company entered into Debt Transfer Agreements with the borrowers (the “Original Borrowers”) and another third party (the “New Borrower”) on August 20, 2024, pursuant to which the Original Borrowers transferred all their debts to the New Borrower, and the New Borrower agreed to fulfil its repayments obligation to the Company in accordance with the term of the original loan agreements. On July 24, 2024 and September 18, 2024, the Company lent loans amounting to US$109,612 and US$375,000 to two third parties for one year, with a maturity date of July 23, 2025 and September 17, 2025, respectively. In addition, the Company also lent a loan amounting to US$41,105 to a third party during the six months ended December 31, 2024, and the amount is due on demand. The Company periodically reviewed the loans to third parties as to whether their carrying values remain realizable, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of June 30, 2024, the total outstanding balance amounted to US$9,445,164, including principal of US$9,387,269 and accrued interests of US$57,895. As of December 31, 2024, the total outstanding balance amounted to US$9,986,234, including principal of US$9,547,349 and accrued interests of US$438,885. As of December 31, 2024 and June 30, 2024, the allowance for credit losses was US$2,211,977 and US$2,548,557, respectively. The Company’s management will continue putting effort into the collection of overdue loans to third parties.

2)

Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses, as well as advances for services to other third party.

3) The amount pertains to prepaid purchase consideration made for the acquisition of Jiangsu Fuwang Medical Equipment Co., Ltd (“Fuwang Medical”). The Company entered into an Equity Acquisition Framework Agreement with a shareholder of Fuwang Medical for the acquisition of his equity interests in Fuwang Medical, and the Company made partial payment of the consideration during the six months ended December 31, 2024. The acquisition is expected to be completed by March 31, 2025.

SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

Movement of allowance for credit losses is as follows:

	December 31, 2024			June 30, 2024
Beginning balance	$	4,656,522		$	3,287,793
Acquisition of subsidiaries		-			36,393
Charge to (reversal of) expense		(330,080	)		2,248,574
Less: disposal of VIEs		-			(610,751	)
Foreign currency translation adjustments		(6,558	)		(305,487	)
Ending balance	$	4,319,884		$	4,656,522