EX-99.1 2 ea024294801ex99-1_junee.htm FINANCIAL RESULTS OF JUNEE LIMITED AS OF AND FOR THE SIX MONTHS ENDED DECEMBER 31, 2024

Exhibit 99.1

 

Junee Limited Announces Financial Results for the First Half of Fiscal Year 2025

 

Junee Limited (“Junee” or the “Company”) (Nasdaq: JUNE) is a holding company limited by shares and established under the laws of the British Virgin Islands on August 25, 2021 with no material operations of its own. The Company specializes in providing high-quality residential and commercial interior design solutions. Through its subsidiaries, including OPS Interior Design Consultant Ltd (“OPS HK”) and now ASPAC AI Computing Pty Ltd (“ASPAC AI Computing”), Junee aims to become a leading technology company dedicated to developing and delivering next-generation digital infrastructure solutions. It is committed to integrating smart technology into every aspect of its offerings, setting new standards for innovation and excellence in the industry. The Company today announced its unaudited financial results for the six months ended December 31, 2024 (the “First Half of Fiscal Year 2025”). This unaudited financial results for the First Half of Fiscal Year 2025 was prepared by the management.

 

First Half of Fiscal Year 2025 Financial Results

 

   For the Six Months Ended December 31, 
Selected Unaudited Interim Condensed
Consolidated Statements of Income Data:		 

2024

USD

  

2023
USD

  

2022
USD

 
Revenue   737,981    1,662,285    3,015,268 
Cost of revenue   (691,406)   (1,255,208)   (2,338,308)
Gross profit   46,575    407,077    676,960 
Operating expenses   (6,321,395)   (721,070)   (816,926)
Loss before provision for income taxes   (6,136,458)   (227,104)   (33,472)
Income tax benefit (expense)   26,850    (3,288)   (21,208)
Net loss   (6,109,608)   (230,392)   (54,680)
Net loss per share – basic and diluted   (0.470)   (0.022)   (0.005)

 

Revenue

 

Revenue decreased by $924,304 or 55.6%, from $1,662,285 for the six months ended December 31, 2023 to $737,981 for the six months ended December 31, 2024, which was primarily due to the further decline in customers’ demands for OPS HK’s services during the six months ended December 31, 2024, as a result of the economic recession in Hong Kong led by the increased inflation pressure.

 

Revenue decreased by $1,352,983 or 44.9%, from $3,015,268 for the six months ended December 31, 2022 to $1,662,285 for the six months ended December 31, 2023, which was primarily due to the decline in customers’ demands for OPS HK’s services during the six months ended December 31, 2023, as a result of the economic recession in Hong Kong led by the increased inflation pressure.

 

To address the increased inflation pressure, many major central banks have expedited the tightening of the monetary policy and increased the interest rates, which caused the real estate market in Hong Kong to fall both in transaction volume and price. It also increased the cost of business operations of the customers, and thus, the customers delayed or cancelled the renovation, relocation and business expansion plans. The tightened monetary policy had slowed down the recovery of the economy in Hong Kong during the six months ended December 31, 2024 and 2023 after an outbreak of the Omicron variant of COVID-19 pandemic in early 2022.

 

In terms of the major revenue type, revenue from the design and fit-out services decreased by $966,319, or 58.9%, from $1,641,839 for the six months ended December 31, 2023 to $675,520 for the six months ended December 31, 2024. The decrease was mainly due to the decline in customer’s demands for OPS HK’s design and fit-out services during the six months ended December 31, 2024 as a result of the economic recession in Hong Kong, as stated above. Others represent the revenue from the design only services and the repair and maintenance services, which increased by $42,015, or 205.5%, from $20,446 for the six months ended December 31, 2023 to $62,461 for the six months ended December 31, 2024. The increase was mainly due to the increase in the number of repair and maintenance projects and new design only projects OPS HK undertook during the six months ended December 31, 2024.

 

 

In terms of the major revenue type, revenue from the design and fit-out services decreased by $950,515, or 36.7%, from $2,592,354 for the six months ended December 31, 2022 to $1,641,839 for the six months ended December 31, 2023. The decrease was mainly due to the decline in customer’s demands for OPS HK’s design and fit-out services during the six months ended December 31, 2023 as a result of the economic recession in Hong Kong, as stated above. Others represent the revenue from the design only services and the repair and maintenance services, which decreased by $402,468, or 95.2%, from $422,914 for the six months ended December 31, 2022 to $20,446 for the six months ended December 31, 2023. The decrease was mainly due to the decrease in the number of repair and maintenance projects and new design only projects OPS HK undertook during the six months ended December 31, 2023.

 

In terms of the property type, revenue from commercial and retail project decreased by $297,785 or 80.4%, from $370,202 for the six months ended December 31, 2023 to $72,417 for the six months ended December 31, 2024, which was mainly attributable to the decrease in number of commercial and retail projects OPS HK undertook due to the decline in customers’ demands for OPS HK’s services as stated above for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023. Revenue from office projects increased by $206,943, or 115.2%, from $179,690 for the six months ended December 31, 2023 to $386,633 for the six months ended December 31, 2024. Such increase was mainly due to the completion of two new office projects with contract sum of approximately $295,000 in aggregate during the six months ended December 31, 2024. Revenue from residential projects decreased by $833,462, or 74.9%, from $1,112,393 for the six months ended December 31, 2023 to $278,931 for the six months ended December 31, 2024, which was mainly due to the two big residential projects with contract sum of over approximately $1 million OPS HK engaged during the six months ended December 31, 2023, which contributed an aggregated revenue of approximately $860,000 during the six months ended December 31, 2023 while these two projects only contributed an aggregated revenue of approximately $208,000 during the six months ended December 31, 2024.

 

In terms of the property type, revenue from commercial and retail project decreased by $328,474 or 47.0%, from $698,676 for the six months ended December 31, 2022 to $370,202 for the six months ended December 31, 2023, which was mainly attributable to the decrease in number of commercial and retail projects OPS HK undertook due to the decline in customers’ demands for OPS HK’s services as stated above for the six months ended December 31, 2023, as compared to the six months ended December 31, 2022. Revenue from office projects decreased by $1,171,422, or 86.7%, from $1,351,112 for the six months ended December 31, 2022 to $179,690 for the six months ended December 31, 2023. Such decrease was mainly due to the completion of one big office project with a contract sum of over $1.5 million, which contributed revenue of $1,107,008 during the six months ended December 31, 2022, and the decrease in number of office projects OPS HK undertook due to the decline in customers’ demands for OPS HK’s services as stated above for the six months ended December 31, 2023, as compared to the six months ended December 31, 2022. Revenue from residential projects increased by $146,913, or 15.2%, from $965,480 for the six months ended December 31, 2022 to $1,112,393 for the six months ended December 31, 2023, which was mainly due to the two new big residential projects with contract sum of over approximately $1 million OPS HK engaged during the six months ended December 31, 2023, which contributed an aggregated revenue of approximately $860,000 during the six months ended December 31, 2023, which partially offset the decrease in number of new residential projects awarded for the six months ended December 31, 2023, as compared to the six months ended December 31, 2022.

 

Gross profit

 

The total gross profit decreased by $360,502, or 88.6%, from $407,077 for the six months ended December 31, 2023 to $46,575 for the six months ended December 31, 2024. The decrease in total gross profit was mainly due to the decrease in revenue for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023. The total gross profit margin decreased from 24.5% for the six months ended December 31, 2023 to 6.3% for the six months ended December 31, 2024, which was mainly due to some projects OPS HK undertook, which generated gross loss as a result of the variation in schedule and additional work performed and cost incurred for such projects during the six months ended December 31, 2024.

 

2

 

The total gross profit decreased by $269,883, or 39.9%, from $676,960 for the six months ended December 31, 2022 to $407,077 for the six months ended December 31, 2023. The decrease in total gross profit was mainly due to the decrease in revenue for the six months ended December 31, 2023, as compared to the six months ended December 31, 2022. The total gross profit margin remained relatively stable at approximately 24.5% and 22.5% for the six months ended December 31, 2023 and 2022, respectively.

 

Operating expenses

 

The total operating expenses increased by $5,600,325, or 776.7%, from $721,070 for the six months ended December 31, 2023 to $6,321,395 for the six months ended December 31, 2024. Such increase was mainly attributable to (i) the increase in legal and professional fees of approximately $1,300,000 such as audit, legal and consulting service expenses the Group incurred for being provided with advice and assistance in continuing compliance with the listing requirements after the listing in the United States during the six months ended December 31, 2024, as compared to the six months ended December 31, 2023; (ii) the increase in operating lease expenses of approximately $250,000 as the Group leased three additional properties for operations during the six months ended December 31, 2024, as compared to the six months ended December 31, 2023; (iii) the increase in share-based compensation of approximately $3,100,000 as the Group has granted share options and shares to its directors and employees under equity incentive plan during the six months ended December 31, 2024; and (iv) the increase in travelling expenses for business development of approximately $550,000 during the six months ended December 31, 2024, as compared to the six months ended December 31, 2023.

 

The total operating expenses decreased by $95,856, or 11.7%, from $816,926 for the six months ended December 31, 2022 to $721,070 for the six months ended December 31, 2023. Such decrease was mainly attributable to (i) a decrease in legal and professional fees of approximately $59,000; (ii) a decrease in provision for doubtful accounts of approximately $22,000; and (iii) a decrease in selling and marketing expenses of approximately $9,000.

 

Income tax expense

 

The Group recorded income tax benefit of $26,850 for the six months ended December 31, 2024 as OPS HK did not generate any assessable profits during the six months ended December 31, 2024.

 

The income tax expense decreased by $17,920 or 84.5%, from $21,208 for the six months ended December 31, 2022 to $3,288 for the six months ended December 31, 2023. Such decrease was mainly due to the decrease in current tax expense related to the assessable profits arising by OPS HK for the six months ended December 31, 2023, as compared to the six months ended December 31, 2022.

 

Net loss

 

The net loss increased by $5,879,216, or 2,551.8%, from $230,392 for the six months ended December 31, 2023 to $6,109,608 for the six months ended December 31, 2024. Such change was the result of the combination of the changes as discussed above.

 

The net loss increased by $175,712, or 321.3%, from $54,680 for the six months ended December 31, 2022 to $230,392 for the six months ended December 31, 2023. Such change was the result of the combination of the changes as discussed above.

 

3

 

Cash Flow

 

Net cash used in operating activities amounted to $2,896,614 for the six months ended December 31, 2024, mainly derived from (i) net loss of $6,109,608 for the six months ended December 31, 2024; and (ii) an increase in prepayments, deposits and other current assets of $743,413 as the Group has paid the rental deposits for the three additional leased properties and prepaid the service provider for the provision of consulting services during the six months ended December 31, 2024, which was offset by (i) various non-cash items of $3,396,721; (ii) an increase in contract liabilities of $247,305 as OPS HK increased billings in advance of performance obligations under contracts closer to the end of the six months ended December 31, 2024, as compared to that of the fiscal year ended June 30, 2024; (iii) a decrease in contract assets of $213,942 as OPS HK increased billing to customers closer to the end of the six months ended December 31, 2024, as compared to that of the fiscal year ended June 30, 2024.

 

Net cash provided by operating activities amounted to $63,808 for the six months ended December 31, 2023, mainly derived from (i) various non-cash items of $46,153, such as depreciation of property and equipment, amortization of operating lease right-of-use assets and interest of lease liabilities, provision for doubtful accounts and deferred income taxes benefit; (ii) a decrease in accounts receivables of $386,829, due to more settlement by the customers closer to the end of the six months ended December 31, 2023, as compared to that of the fiscal year ended June 30, 2023; and (iii) an increase in contract liabilities of $236,466 as OPS HK increased billings in advance of performance obligations under contracts closer to the end of the six months ended December 31, 2023, as compared to that of the fiscal year ended June 30, 2023, which was offset by (i) net loss of $230,392 for the six months ended December 31, 2023; (ii) an increase in contract assets of $220,120, due to more services provided but not yet billed to customers closer to the end of the six months ended December 31, 2023, as compared to that of the fiscal year ended June 30, 2023; and (iii) a decrease in accounts payable of $120,952, due to more settlement to subcontractors and suppliers on services requested closer to the end of the six months ended December 31, 2023, as compared to that of the fiscal year ended June 30, 2023.

 

Net cash provided by operating activities amounted to $15,199 for the six months ended December 31, 2022, mainly derived from (i) various non-cash items of $64,727, such as depreciation of property and equipment, amortization of operating lease right-of-use assets and interest of lease liabilities, provision for doubtful accounts and deferred income taxes benefit; (ii) an decrease in contract assets of $106,410, due to more billings to customers closer to the end of the six months ended December 31, 2022, as compared to that of the fiscal year ended June 30, 2022; and (iii) an increase in contract liabilities of $307,004, as OPS HK increased billings in advance of performance obligations under contracts, which was offset by (i) net loss of $54,680 for the six months ended December 31, 2022; (ii) an increase in accounts receivable of $180,120, due to more billing to customers based on services provided closer to the end of the six months ended December 31, 2022, as compared to that of the fiscal year ended June 30, 2022; and (iii) a decrease in accounts payable of $219,620, due to more settlement to subcontractors and suppliers on services requested closer to the end of the six months ended December 31, 2022, as compared to that of the fiscal year ended June 30, 2022.

 

Net cash used in investing activities amounted to $1,338,760 for the six months ended December 31, 2024 mainly representing (i) the purchases of property and equipment of $258,860; (ii) deposits for investments of $443,646; (iii) payment for investments in equity securities of $478,768; and (iv) the increase in loans receivable of $179,951 during the six months ended December 31, 2024.

 

Net cash used in investing activities amounted to $6,535 for the six months ended December 31, 2023 representing the purchases of property and equipment during the six months ended December 31, 2023.

 

Net cash used in investing activities amounted to $8,580 for the six months ended December 31, 2022 representing the purchases of property and equipment during the six months ended December 31, 2022.

 

Net cash provided by financing activities amounted to $155,812 for the six months ended December 31, 2024, which included the proceeds from bank borrowings of $128,370 and advances from related parties of $113,070, which was partially offset by the repayment of bank borrowings of $85,628 during the six months ended December 31, 2024.

 

Net cash used in financing activities amounted to $244,326 for the six months ended December 31, 2023, which included the repayment of bank borrowings of $75,115, repayments to related parties of $60,741 and payments of offering costs related to the initial public offering of $108,470 during the six months ended December 31, 2023.

 

Net cash used in financing activities amounted to $267,982 for the six months ended December 31, 2022, which included the repayment of bank borrowings of $73,175, payments of a dividend to shareholders of $153,061, advances to related parties of $26,531 and payments of offering costs related to the initial public offering of $96,593, which was offset by the repayments from related parties of $81,378 during the six months ended December 31, 2022.

 

4

 

Recent Events

 

On March 12, 2025, the Company entered into a share purchase agreement (the “1st Share Purchase Agreement”) with Ma Chao (the “Seller”). Pursuant to the 1st Share Purchase Agreement, the Company agreed to acquire 51% of the issued and outstanding shares of Mindenergy AI Technology Pte. Ltd., a private limited company incorporated in Singapore (the “Target Company”). The transaction is expected to strengthen the Company’s strategic position in AI-driven technology solutions.

 

Pursuant to the 1st Share Purchase Agreement, the initial consideration shall be $250,000 and the total purchase price could be up to $9,800,000. The consideration will be paid in newly issued ordinary shares of the Company at an issuance price of $4.00 per ordinary share. Pursuant to the 1st Share Purchase Agreement, the Company shall initially issue 62,500 ordinary shares (the “Initial Issuance”) to the Seller, who shall complete all necessary regulatory filings to complete the transfer of the shares upon the Initial Issuance. As incentive for the Seller to collect and recover accounts receivable owed to the Target Company (the “AR”) within 365 days from the date of this agreement, for each amount of AR that the Seller collects for the Company post-closing, the Company shall issue to the Seller additional shares, at $4.00 per ordinary share, for which the value shall be equivalent to 51% of the collected amount, calculated based on the prevailing exchange rate at the bank on the date of collection. The maximum number of shares to be issued as consideration is up to 2,450,000.

 

On April 29, 2025, the Company entered into a share purchase agreement (the “2nd Share Purchase Agreement”) with the Seller to acquire the remaining 49% of the issued and outstanding shares of Mindenergy AI Technology Pte. Ltd.. This acquisition follows an earlier transaction where the Company acquired 51% of the Target Company pursuant to a share purchase agreement dated March 12, 2025. 

 

Pursuant to the 2nd Share Purchase Agreement, the initial consideration shall be USD 240,000 and the total purchase price could be up to $9,415,688. The consideration will be paid in newly issued ordinary shares of the Company at an issuance price of $8.00 per ordinary share. Pursuant to the 2nd Share Purchase Agreement, the Company shall initially issue 30,000 ordinary shares to the Seller. As incentive for the Seller to collect and recover accounts receivable owed to the Target Company within 365 days from the date of this agreement, for each amount of AR that the Seller collects for the Company post-closing, the Company shall issue to the Seller additional shares, at $8.00 per ordinary share, for which the value shall be equivalent to 49% of the collected amount, calculated based on the prevailing exchange rate at the bank on the date of collection. The maximum number of shares to be issued as consideration is up to 1,176,961.

 

On March 18 and 19, 2025, the Company entered into certain private placement subscription agreements with certain investors for the purchase and sale of ordinary shares, no par value per share (“Ordinary Shares”), and warrants to purchase Ordinary Shares (the “Purchaser Warrants”). The Company sold 6,600,000 Ordinary Shares and 2,199,999 Purchaser Warrants, and received $22,152,900 in gross proceeds from such sale. The Company plans to use the net proceeds from the private placement for the research and development as well as production of AI servers, exploring investment opportunities in the AI sector, and supplementing the Company’s general working capital.

 

About Junee Limited

 

The Company is a holding company limited by shares and established under the laws of the British Virgin Islands with no material operations of its own. The Company specializes in providing high-quality residential and commercial interior design solutions. Through its subsidiaries, including OPS HK and now ASPAC AI Computing, Junee aims to become a leading technology company dedicated to developing and delivering next-generation digital infrastructure solutions. It is committed to integrating smart technology into every aspect of its offerings, setting new standards for innovation and excellence in the industry. For more information, please visit the Company’s website at http://ops-int.com.hk/.

 

5

 

Forward-Looking Statements

 

All statements other than statements of historical fact in this announcement are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the SEC.

 

For more information, please contact:

 

Junee Limited

 

Phone:  +65 6022 1124
Email: ir@juneelimited.com

 

6

 

Junee Limited and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2024 and June 30, 2024
(Expressed in U.S. Dollars, except for the number of shares)

 

   December 31,
2024		   June 30,
2024		 
Assets        
Current assets        
Cash  $3,233,000   $7,244,941 
Accounts receivable, net   81,465    257,638 
Contract assets   40,163    253,351 
Contract costs   29,908    19,163 
Due from related parties   70,687    65,946 
Rental deposits – related parties, current   22,008    - 
Rental deposits, current   23,166    - 
Loans receivable   180,414    - 
Prepayments – related parties   7,336    7,298 
Prepayments and other current assets   646,441    16,856 
Total current assets   4,334,588    7,865,193 
           
Non-current assets          
Property and equipment, net   238,881    18,843 
Operating lease right-of-use assets   794,349    91,388 
Rental deposits – related parties, non-current   -    21,895 
Rental deposits, non-current   92,664    - 
Deposits for investments   444,788    - 
Investments in equity securities   480,000    - 
Deferred tax assets, net   36,020    9,055 
Total assets  $6,421,290   $8,006,374 
           
Liabilities and Shareholders’ Equity          
Current liabilities          
Accounts payable  $482,741   $451,208 
Contract liabilities   259,431    11,431 
Current maturities of long-term bank borrowings   266,597    164,741 
Due to related parties   117,809    46 
Income tax payable   125,933    125,288 
Operating lease liabilities, related parties, current   50,736    85,626 
Operating lease liabilities, current   566,659    - 
Accrued expenses and other current liabilities   308,479    115,127 
Total current liabilities   2,178,385    953,467 
           
Non-current liabilities          
Operating lease liabilities, related parties, non-current   -    7,276 
Operating lease liabilities, non-current   183,937    - 
Long-term bank borrowings, non-current   22,902    80,643 
Total liabilities   2,385,224    1,041,386 
           
Shareholders’ equity          
Ordinary shares, no par value, unlimited number of ordinary shares authorized, 13,027,354 and 12,977,354 ordinary shares issued and outstanding as of December 31, 2024 and June 30, 2024, respectively*   6,935,390    6,710,390 
Additional paid-in capital   4,227,212    1,339,286 
Accumulated deficit   (7,211,825)   (1,102,217)
Accumulated other comprehensive income   85,289    17,529 
Total shareholders’ equity   4,036,066    6,964,988 
Total liabilities and shareholders’ equity  $6,421,290   $8,006,374 

 

* Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance and share split.

 

7

 

Junee Limited and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
For the Six Months Ended December 31, 2024, 2023 and 2022
(Expressed in U.S. Dollars, except for the number of shares)

 

   For the Six Months Ended
December 31,		 
   2024   2023   2022 
Revenue  $737,981   $1,662,285   $3,015,268 
Cost of revenue   691,406    1,255,208    2,338,308 
Gross profit   46,575    407,077    676,960 
                
Operating expenses               
Selling and marketing expenses   3,092    3,439    12,909 
General and administrative expenses   6,318,303    717,631    804,017 
Total operating expenses   6,321,395    721,070    816,926 
Loss from operations   (6,274,820)   (313,993)   (139,966)
                
Other income (expense)               
Interest income (expense), net   115,897    (5,183)   (6,772)
Other income   -    -    21,429 
Other income – related party   -    92,072    91,837 
Gain on disposal of property and equipment   22,465    -    - 
Total other income, net   138,362    86,889    106,494 
                
Loss before provision for income taxes   (6,136,458)   (227,104)   (33,472)
Income tax (benefit) expense   (26,850)   3,288    21,208 
Net loss  $(6,109,608)  $(230,392)  $(54,680)
                
Other comprehensive income               
Foreign currency translation adjustments   67,760    2,502    7,938 
Total comprehensive loss  $(6,041,848)  $(227,890)  $(46,742)
Net loss per share – basic and diluted*  $(0.470)  $(0.022)  $(0.005)
Weighted average shares outstanding – basic and diluted*   12,993,984    10,714,286    10,714,286 

 

* Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance and share split.

 

8

 

Junee Limited and Subsidiaries
Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity
For the Six Months Ended December 31, 2024, 2023 and 2022
(Expressed in U.S. Dollars, except for the number of shares)

 

For the Six Months Ended December 31, 2022
   Ordinary Shares   Additional
Paid-in		   Accumulated   Accumulated
Other
Comprehensive		     
   Shares*   Amount   Capital   Deficit   (Loss) Income   Total 
Balance as of June 30, 2022   10,714,286   $1,000   $1,339,286   $(132,907)  $(3,260)  $1,204,119 
                               
Net loss for the period   -    -    -    (54,680)   -    (54,680)
Foreign currency translation adjustments   -    -    -    -    7,938    7,938 
Dividend declared during the period   -    -    -    (153,061)   -    (153,061)
Balance as of December 31, 2022   10,714,286   $1,000   $1,339,286   $(340,648)  $4,678   $1,004,316 

 

For the Six Months Ended December 31, 2023
   Ordinary Shares   Additional
Paid-in		   Accumulated   Accumulated
Other
Comprehensive		     
   Shares*   Amount   Capital   Deficit   (Loss) Income   Total 
Balance as of June 30, 2023   10,714,286   $1,000   $1,339,286   $(247,290)  $(329)  $1,092,667 
                               
Net loss for the period   -    -    -    (230,392)   -    (230,392)
Foreign currency translation adjustments   -    -    -    -    2,502    2,502 
                               
Balance as of December 31, 2023   10,714,286   $1,000   $1,339,286   $(477,682)  $2,173   $864,777 

 

For the Six Months Ended December 31, 2024
   Ordinary Shares   Additional
Paid-in		   Accumulated   Accumulated
Other
Comprehensive		     
   Shares*   Amount   Capital   Deficit   Income   Total 
Balance as of June 30, 2024   12,977,354   $6,710,390   $1,339,286   $(1,102,217)  $17,529   $6,964,988 
                               
Net loss for the period   -    -    -    (6,109,608)   -    (6,109,608)
Issuance of ordinary shares under equity incentive plan   50,000    225,000    -    -    -    225,000 
Share-based compensation   -    -    2,887,926    -    -    2,887,926 
Foreign currency translation adjustments   -    -    -    -    67,760    67,760 
                               
Balance as of December 31, 2024   13,027,354   $6,935,390   $4,227,212   $(7,211,825)  $85,289   $4,036,066 

 

* Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance and share split.

 

9

 

Junee Limited and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
For the Six Months Ended December 31, 2024, 2023 and 2022
(Expressed in U.S. Dollars)

 

  

For the Six Months Ended
December 31,

 
   2024   2023   2022 
Cash flows from operating activities:            
Net loss  $(6,109,608)  $(230,392)  $(54,680)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:               
Depreciation of property and equipment   39,482    5,060    5,164 
Amortization of operating lease right-of-use assets and interest of lease liabilities   290,277    44,544    43,433 
Provision for (Reversal of provision for) allowance for credit losses   4,551    (4,188)   17,322 
Deferred tax (benefit) expense   (26,850)   737    (1,192)
Gain on disposal of property and equipment   (22,465)   -    - 
Share-based compensation   3,111,726    -    - 
                
Changes in operating assets and liabilities:               
Accounts receivable   172,491    386,829    (180,120)
Contract assets   213,942    (220,120)   106,410 
Contract costs   (10,620)   (16,447)   (75,879)
Prepayments, deposits and other current assets   (743,413)   (7,245)   6,982 
Accounts payable   29,135    (120,952)   (219,620)
Contract liabilities   247,305    236,466    307,004 
Income taxes payable   -    2,551    22,400 
Operating lease liabilities, related parties   (43,902)   (43,734)   (43,622)
Operating lease liabilities   (240,930)   -    - 
Accrued expenses and other current liabilities   192,265    30,699    81,597 
Net cash (used in) provided by operating activities   (2,896,614)   63,808    15,199 
                
Cash flows from investing activities:               
Purchases of property and equipment   (258,860)   (6,535)   (8,580)
Deposits for investments   (443,646)   -    - 
Payment for investments in equity securities   (478,768)   -    - 
Loans receivable   (179,951)   -    - 
Proceeds from disposal of property and equipment   22,465    -    - 
Net cash used in investing activities   (1,338,760)   (6,535)   (8,580)
                
Cash flows from financing activities:               
Payments of dividend to shareholders   -    -    (153,061)
Payments of offering costs related to initial public offering   -    (108,470)   (96,593)
Proceeds from bank borrowings   128,370    -    - 
Repayment of bank borrowings   (85,628)   (75,115)   (73,175)
Advances from related parties   113,070    -    - 
Repayments to related parties   -    (60,741)   (26,531)
Repayments from related parties   -    -    81,378 
Net cash provided by (used in) financing activities   155,812    (244,326)   (267,982)
Effect of exchange rate changes on cash and restricted cash   67,621    1,190    6,017 
Net decrease in cash   (4,011,941)   (185,863)   (255,346)
Cash, beginning of period   7,244,941    558,386    999,227 
Cash, end of period  $3,233,000   $372,523   $743,881 
                
Supplemental disclosure information:               
Cash paid for interest  $4,517   $6,464   $7,300 
                
Supplemental non-cash in investing and financing activities:               
Operating lease right-of-use assets, obtained in exchange for operating lease obligations, related parties  $976,769   $168,500   $- 

 

 

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