Restricted Net Assets

12 Months Ended

Jun. 30, 2025

Restricted Net Assets [Abstract]

RESTRICTED NET ASSETS

NOTE 17 – RESTRICTED NET ASSETS

The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances, or cash dividends.

The Company’s PRC subsidiaries’ net assets as of June 30, 2025 and 2024 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and they are as follows.

Parent Company Financial Statements

PARENT COMPANY FINANCIAL INFORMATION OF ENLIGHTIFY INC.

Condensed Balance Sheets

	As of June 30,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	3,156		$	2,721
Other current assets		10,117,052			169,071
Total current assets		10,120,208			171,791
Long-term equity investment		92,240,599			114,953,290
Total long-term assets		92,240,599			114,953,290
Total assets	$	102,360,807		$	115,125,082
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		4,880,375			4,520,449
Other payables and accrued expenses		12,747,716			10,290,932
Total current liabilities		17,842,611			15,025,901
Shareholders’ equity
Common stock, $.001 par value, 115,197,165 shares authorized, 16,116,914 and 14,793,538 shares issued as of June 30, 2025 and June 30, 2024, respectively; 15,770,934 and 14,793,538 shares outstanding as of June 30, 2025 and June 30, 2024, respectively		16,117			14,794
Additional paid-in capital		246,306,702			244,825,844
Accumulated other comprehensive loss		(28,011,540	)		(26,550,536	)
Retained earnings		(133,793,083	)		(118,190,922	)
Total shareholders’ equity		84,518,196			100,099,180
Total liabilities and shareholders’ equity	$	102,360,807		$	115,125,082

Condensed Statements of Operations

	Year ended June 30,
	2025			2024
Revenue	$	-		$	-
General and administrative expenses		3,939,125			3,854,944
Interest income		5			12
Equity investment in subsidiaries		(11,660,417	)		(24,550,383	)
Net loss	$	(15,599,537	)	$	(28,405,315	)

Condensed Statements of Cash Flows

	Year Ended June 30,
	2025			2024
Net cash used in operating activities	$	(383,186	)	$	(399,789	)
Net cash used in investing activities		-			(1,502,600	)
Net cash provided by financing activities		60,517			191,000
Cash and cash equivalents, beginning balance		338,961			2,050,350
Cash and cash equivalents, ending balance	$	16,292		$	338,961

Notes to Condensed Parent Company Financial Information

As of June 30, 2025, and 2024, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.