Other Receivables, Net

12 Months Ended

Jun. 30, 2023

Other Receivables, Net [Abstract]

OTHER RECEIVABLES, NET

Note 6. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	June 30, 2023			June 30, 2022
Advances to customers*	$	7,060,456		$	3,943,547
Employee business advances		10,570			23,768
Total		7,071,026			3,967,315
Less: allowances for doubtful accounts		(6,994,212	)		(3,942,258	)
Other receivables, net	$	76,814		$	25,057

* In fiscal year 2019 and 2020, the Company entered into contracts with several customers where the Company’s services included both freight charge and cost of commodities to be shipped to customers’ designated locations. The terms of the contracts required the Company to prepay the commodities.  The Company prepaid for the commodities and reclassified the payment as other receivables as the payments were paid on behalf of the customers. These payments will be repaid to the Company when either the contract is executed or the contracts are terminated by either party. The customers were negatively impacted by the pandemic and required additional time to execute the contracts, due to significant uncertainty on whether the delayed contracts will be executed timely, the Company had provided full allowance due to contract delay during the fiscal year ended June 30, 2020. The Company subsequently recovered and $1,934,619 in fiscal year 2022.   On March 23, 2023, SG Shipping & Risk Solution Inc. an indirect wholly owned subsidiary of SGLY entered into an operating income right transfer contract with Goalowen Inc. pursuant to which Goalowen agreed to transfer its rights to receive income from operating a certain tuna fishing vessel to SG Shipping for $ 3 million. Such contract was signed by the former COO Jing Shan without the Board’s authorization. On May 5, 2023, Ms. Shan made a wire transfer of $ 3 million to Goalowen without the Board’s authorization,. It was recorded as an Advance to customers. As of June 30, 2023, the Company evaluated the collection possibility, and decided to provide a 100% allowance provision in the amount of $3 million.

Movement of allowance for doubtful accounts are as follows:

	June 30,		June 30,
	2023		2022
Beginning balance	$	3,942,258	$	6,024,266
Increase		3,000,000
Recovery for doubtful accounts		-		(1,934,619	)
Less: write-off
Exchange rate effect		51,954		(147,389	)
Ending balance	$	6,994,212	$	3,942,258