Other Receivables, Net

3 Months Ended

Sep. 30, 2024

Other Receivables, Net [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	September 30,			June 30,
	2024			2024
Advances to customers*	$	6,978,426		$	6,849,309
Employee business advances		-			2
Total		6,978,426			6,849,311
Less: allowances for credit losses		(6,977,802	)		(6,848,699	)
Other receivables, net	$	624		$	612

* 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 tuna fishing vessel to SG Shipping for $3 million. 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 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, and there was no change in the fiscal year 2024 and for the three months ended September 30 2024.

Movement of allowance for credit losses are as follows:

	September 30,		June 30,
	2024		2024
Beginning balance	$	6,848,699	$	6,994,212
Increase		-		21,348
Less: write-off		-		(160,000	)
Exchange rate effect		129,103		(6,861	)
Ending balance	$	6,977,802	$	6,848,699