Taxation (Tables)

12 Months Ended

Jun. 30, 2025

Taxation [Abstract]

Schedule of Income Tax Provision

The income tax provision consists of the following components:

	For the years ended June 30,
		2025		2024		2023
Current income tax expense	$	-	$	-	$	-
Deferred income tax expense		-		-		-
Total income tax expense	$	-	$	-	$	-

Schedule of Group’s Actual Provision for Income Taxes

A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows:

	For the years ended June 30,
	2025			2024			2023
Loss before income tax expense	$	13,065,903		$	5,980,776		$	6,618,209
Income tax expense at the PRC statutory rate of 25%		3,266,475			1,495,193			1,654,553
Impact of different tax rates in other jurisdictions		(1,222,580	)		(155,074	)		-
Effect of preferential tax rate(a)		(925,755	)		(715,782	)		(712,507	)
Tax effect of entertainment expense		(163,943	)		(191,237	)		(200,297	)
Tax effect of welfare expense		-			-			(181	)
Tax effect of R&D expense additional deduction		317,569			337,007			270,598
Tax effect of non-deductible expenses		-			-			(142,177	)
Tax effect of true-up on NOL		(329,487	)		(80,363	)		-
Change in valuation allowance		(942,279	)		(689,744	)		(869,989	)
Income tax expense	$	-		$	-		$	-

(a) The Group’s subsidiary Scage Nanjing is subject to a favorable tax rate of 15% as a “High and New Technology Enterprise” (“HNTE”), all the Group’s other subsidiaries are subject to a favorable tax rate of 5% or 5% as small, low-profit enterprises. For the years ended June 30, 2025, 2024 and 2023, per share effect of preferential tax were (US$0.01), (US$0.01) and (US$0.01), respectively.

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

As of June 30, 2025 and 2024, the significant components of the deferred tax assets and deferred tax liabilities are summarized below:

	As of June 30,
	2025			2024
Deferred tax assets:
Net operating loss carry-forwards	$	2,915,140		$	2,107,134
Excess advertising expense		2			2
Allowance for credit losses		34,390			36,061
Inventory write-downs		242,646			191,624
Impairment of long-lived assets		13,992			17,038
Accrued expenses		201,770			81,123
Operating lease liabilities		19,672			38,152
Net-off with deferred tax liabilities		(29,907	)		(57,288	)
Total deferred tax assets		3,397,705			2,413,846
Less: Valuation allowance		(3,397,705	)		(2,413,846	)
Total deferred tax assets, net	$	-		$	-

	As of June 30,
	2025			2024
Deferred tax liabilities:
Accelerated depreciation of fixed assets	$	(1,544	)	$	(4,557	)
Fixed assets cost adjustment arise from internal transactions		(9,437	)		(10,190	)
Right-of-use assets		(18,926	)		(42,541	)
Net-off with deferred tax assets		29,907			57,288
Total deferred tax assets, net	$	-		$	-

Schedule of Changes in Valuation Allowance

Changes in valuation allowance are as follows:

	For the years ended June 30,
	2025			2024			2023
Balance at the beginning of the period	$	2,413,846		$	1,731,915		$	968,543
Additions		973,201			714,889			917,786
Utilization		(30,922	)		(25,145	)		(47,797	)
Effect of change of preferential tax rate		-			-			3,121
Foreign exchange effect		41,580			(7,813	)		(109,738	)
Balance at the end of the period	$	3,397,705		$	2,413,846		$	1,731,915