v3.26.1
Segment Reporting
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 18 — SEGMENT REPORTING

 

The Company follows Financial Accounting Standards Board (FASB”) Accounting Standards codification “ASC”) Topic 280, Segment Reporting, as amended by Accounting Standards Update (“ASU”) No.2023-07. Segment Reporting Topic 280: Improvements to Reportable Segment Disclosures, the Company continually monitors the reportable segments for changes in fact and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment.

 

The Company’s chief operating decision maker (“CODM”) is Mr. Yang Li, the Principal Executive Officer. The CODM regularly reviews financial information, including segment revenue, gross profit, significant segment expenses (selling expenses and general and administrative expenses), segment net income (loss), and segment assets to evaluate segment performance and allocate resources accordingly.

 

Based on internal management reporting and assessment, the Company concludes that it has two reporting segments listed as below for the nine months ended March 31, 2025. The Company and its subsidiaries are located either in the U.S. or China. The Company is primarily engaged in the business of providing customized cross-border freight solutions in the U.S. and distribution of pharmaceutical products in China.

 

During the nine months ended March 31, 2026, the Company completed disposal of its customized cross-border freight solutions in the U.S segment (the “Disposed Segment”). The results of operations of the Disposed Segment have been classified as discontinued operations in the condensed consolidated financial statements for all periods presented, in accordance with ASC 205-20. See Note 15. “Discontinued Operations” for additional information regarding the ABL Chicago disposal.

 

Following the disposal, the Company operates as a single reporting segment consisting of distribution of pharmaceutical products in China. Prior period segment information has been recast to conform to the current period presentation.

 

Segment net income (loss) excludes general corporate administrative expenses and selling expenses including corporate functional costs relating to professional expenses, payroll expense of management, and interest expenses in connection with convertible debt that are managed centrally at the corporate level and are excluded from the measure of segment performance reviewed by the CODM.

 

The summary of key information by segments for the nine months ended March 31, 2026 was as follows: 

 

   Pharmaceutical
distribution
(China)		   Holding  

Total for the
nine months
ended
March 31,

2026

 
Revenue from external customers  $5,108,387   $
-
   $5,108,387 
Cost of revenue  $2,333,460   $
-
   $2,333,460 
Gross profit  $2,774,927   $
-
   $2,774,927 
Selling expense  $1,785,669   $19,128   $1,804,797 
General and administrative expense  $481,389   $3,401,777   $3,883,166 
Depreciation & amortization  $36,556   $65,475   $102,031 
Income tax expense  $126,661   $(16,029)  $110,632 
Long-lived assets  $400,377   $334,612   $734,989 
Segment assets  $3,774,605   $14,006,046   $17,780,651 
Segment profit (loss)  $246,745   $(3,699,622)  $(3,452,877)

 

The summary of key information by segments for the nine months ended March 31, 2025 was as follows: 

 

   Pharmaceutical
distribution
(China)		   Holdings  

Total for the
nine months
ended
March 31,

2025

 
Revenue from external customers  $715,362   $
–
   $715,362 
Cost of revenue  $240,966   $
–
   $240,966 
Gross profit  $474,396   $
–
   $474,396 
Depreciation & amortization  $4,262   $32,946   $37,208 
General and administrative expense  $246,685   $1,556,794   $1,803,479 
Income tax provision  $26,608   $(8,014)  $18,594 
Capital expenditure  $155,991   $
–
   $155,991 
Long-lived assets  $348,179   $493,157   $841,336 
Segment assets  $1,090,942   $2,224,881   $3,315,823 
Segment profit (loss)  $70,616   $(1,600,218)  $(1,529,602)