Other Receivables, Net

6 Months Ended

Dec. 31, 2023

Other Receivables, Net [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET  

The Company’s other receivables are as follows:

	December 31,			June 30,
	2023			2023
Advances to customers*	$	7,161,024		$	7,060,456
Employee business advances		8,337			10,570
Total		7,169,361			7,071,026
Less: allowances for credit losses		(7,074,545	)		(6,994,212	)
Other receivables, net	$	94,816		$	76,814

* 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. (“Goalowen”) pursuant to which Goalowen agreed to transfer its rights to receive income from operating a tuna fishing vessel to SG Shipping for $3,000,000. Such contract was signed by the Company’s former COO, Jing Shan, without the Board’s authorization. On May 5, 2023, Ms. Shan made a wire transfer of $3,000,000 to Goalowen without the Board’s authorization. It was recorded as an advance to a customer. The Company filed a complaint against Jing Shan accusing her of the unauthorized transfers in the United States District Court for the Eastern District of New York and has brought a lawsuit against Goalowen to recover the $3 million. As of June 30, 2023, the Company evaluated the collection possibility, and decided to provide a 100% allowance provision in the amount of $3,000,000. 

Movement of allowance for doubtful accounts are as follows:

	December 31,		June 30,
	2023		2023
Beginning balance	$	6,994,212	$	3,942,258
Increase		-		3,000,000
Recovery of doubtful accounts		-		-
Less: write-off		-		-
Exchange rate effect		80,333		51,954
Ending balance	$	7,074,545	$	6,994,212