Related Party Transactions

12 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

(4) RELATED PARTY TRANSACTIONS

Related party revenues

On March 22, 2018, the Board of Directors approved the execution of two agreements with Xi’an of China, an affiliated Company of IDSI. The agreements are a Know How Transfer Contract and a CTLM® Know How Confidentiality Agreement. The contract, having a term of 20 years, stipulates that Xi’an will pay IDSI a know how transfer fee of 25% of revenue for CTLM® product sales in their territory. There were no such sales during the years ended June 30, 2024 and 2023.

Related party fees

Erhfort, LLC earned a consulting fee of $5,000 for the year ended June 30, 2024 and $51,000 for the year ended June 30, 2023. Erhfort, LLC regularly reviews the Company’s operations and reports to IDSI’s CEO, Chunming Zhang, who lives in China. Erhfort, LLC is a related party because it owns Company common stock directly and indirectly. 

David Fong, who served as the Company’s CFO through August 10, 2022 and as a consultant on an as-needed basis thereafter, earned consulting fees of $2,400 for the year ended June 30, 2024 and $45,070 for the year ended and 2023. These fees were assigned to his affiliated business, Fong & Associates, LLC.

Related party payables and accrued expenses

As of June 30, 2024 and June 30, 2023, the amount of interest on related party notes due to Erhfort, LLC, which is included in accounts payable, is $317,473 and $239,260, respectively.

As of June 30, 2024 and June 30, 2023, the amount of consulting fees due to Erhfort, LLC, which is included in accounts payable, is $209,000 and $204,000, respectively.

As of June 30, 2024 and June 30, 2023, the amount of consulting fees due to Fong & Associates, LLC, which is included in accounts payable, is $328,970 and $331,070, respectively.

As of June 30, 2024 and June 30, 2023, the amount of reimbursable expenses due to Fong & Associates, LLC, which is included in accounts payable, is $1,785 and $6,809, respectively.

As of June 30, 2024 and June 30, 2023, the amount of interest on related party notes due to JM One Holdings, LLC, which is included in accrued expenses, is $14,868 and $11,860, respectively. JM One Holdings, LLC is an entity affiliated with the Company’s former CFO, David Fong.

Related party debt

As of June 30, 2024 and June 30, 2023, the amount in promissory notes due to related parties are $777,852 and $763,649, respectively (See Note 11).