v3.26.1
Discontinued Operations and Sales of Abl Chicago (Tables)
 9 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Schedule of Sale Transaction

As of June 30, 2025, the major of assets and liabilities from discontinued operation included the following:

 

    As of
June 30,
2025		  
ASSETS:      
Current Assets:      
Cash   $ 141,188  
Accounts receivable – third parties, net     1,488,660  
Accounts receivable – related party, net     396,331  
Prepaid expenses and other assets– third parties     227,984  
Other receivable – related parties     869,430  
Contract assets     119,054  
Loan receivable – Related parties     277,741  
Current assets from discontinued operation   $ 3,520,388  
         
Non-current Assets:        
Long-term investment   $ 15,741  
Property and equipment, net     228,819  
Right of use operating lease assets, net     2,886,929  
Right of use financing lease assets, net     93,797  
Prepaid expenses and other assets     65,000  
Non-current assets from discontinued operation   $ 3,290,286  
         
LIABILITIES        
Current liabilities        
Accounts payable– third parties   $ 1,475,989  
Accounts payable– related party     65,237  
Accrued expenses and other liabilities     958,130  
Obligations under operating leases     2,214,473  
Obligations under financing leases     47,035  
Other loan payable     1,037,242  
Tax payable     79,825  
Current liabilities from discontinued operation   $ 5,877,931  
         
Non-current liabilities        
Other loan payable   $ 60,398  
Loan payable to related party     124,176  
Obligations under operating leases     1,408,959  
Obligations under financing leases     66,267  
Non-current liabilities from discontinued operation   $ 1,659,800  

Net income (loss) from discontinued operations details is as follows:

 

   Nine Months Ended
March 31,		   Three Months Ended
March 31,		 
   2026   2025   2026   2025 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Revenue  $10,678,106   $10,764,921   $1,346,238   $3,305,864 
Cost of revenue   9,768,331    10,043,158    1,660,135    2,968,114 
Operating expenses   2,661,614    3,633,941    496,212    1,082,426 
Loss from operation   (1,751,839)   (2,912,178)   (810,109)   (744,676)
Gain on sale of ABL Chicago   2,556,315    
-
    2,556,315    
-
 
Other (expense) income, net   (150,088)   178,338    (74,987)   50,840 
Net income (loss) from discontinued operations, before tax   654,388    (2,733,840)   1,671,219    (693,836)
Income tax   
-
    89,581    
-
    
-
 
Income (loss) from discontinued operations, net of tax provision  $654,388   $(2,823,421)  $1,671,219   $(693,836)

The following table includes supplemental cash flow and non-cash information related to leases:

 

   For the Nine Months Ended
March 31,		 
   2026   2025 
Cash paid of amounts included in the measurement of lease liabilities:        
Operating cash flows from discontinued operation - operating leases  $1,599,276   $1,071,222 
Operating cash flows from discontinued operation - finance leases  $4,466   $3,963 
Financing cash flows discontinued operation - from finance leases  $20,980   $22,814 
Right-of-use assets obtained in exchange for lease obligations:          
Operating lease liabilities  $
-
   $1,105,533 
Finance lease liabilities   
-
   $89,003 
Schedule of Related Party

Accounts receivable, net consists of the following:

 

   June 30,
2025		 
Accounts receivable – third-party customers  $1,543,349 
Less: allowance for credit loss – third-party customers   (54,689)
Accounts receivable from third-party customers, net  $1,488,660 
      
Accounts receivable – related party customers  $396,331 
Less: allowance for credit loss – related party customers   
-
 
Total accounts receivable– related party customers, net  $396,331 

 

Prepayment, deposit and other receivable – third party

 

   June 30,
2025		 
Prepayment and other deposits  $33,212 
Rent deposits   259,772 
Total   292,984 
Less: non-current portion   (65,000)
Current portion  $227,984 

Accrued liabilities and other payables comprise the following amounts relating to the discontinued operation:

 

   June 30,
2025		 
Credit card payables  $323,382 
Payroll liabilities   112,076 
Accrued expense   220,823 
Other payables   301,849 
Total  $958,130 

The loan balance consists of the following:

 

   June 30,
2025		 
Equipment loans (a)  $34,645 
Vehicle loans (b)   88,762 
Other loans (c)   974,233 
Total   1,097,640 
Less: loan payable, current   (1,037,242)
Loan payable, non-current  $60,398 

Other receivable from related parties consists of balances with the parties listed below, arising from interest receivable, storage income, rental income, contractor salaries charged by related parties, other expenses paid on their behalf:

 

   June 30,
2025		 
Other receivable from Weship  $753,116 
Other receivable from Intermodal   99,635 
Other receivable from ABL LAX   18,291 
Other payable to ABL Shenzhen   (1,612)
Total  $869,430 

 

b) Summary of balances payable to related parties

 

   June 30,
2025		 
Account payable to Weship  $35,003 
Account payable to ABL Wuhan   9,012 
Account payable to Intermodal   21,222 
Total  $65,237 

 

c) Summary of balances receivable from related parties

 

   June 30,
2025		 
Accounts receivable from Weship  $8,853 
Accounts receivable from ABL Shenzhen   129,588 
Accounts receivable from ABL Wuhan   257,890 
Total  $396,331 

d) Loan receivable from related parties

 

   June 30,
2025		 
Loan receivable from Weship  $148,000 
Loan receivable from ABL LAX   129,741 
Total  $277,741 

e) Summary of related parties’ transactions

 

   Nine Months Ended
March 31,		   Three Months Ended
March 31,		 
   2026   2025   2026   2025 
Revenue from Weship (a)  $15,435   $5,341   $3,671   $3,579 
Revenue from ABL Wuhan (a)  $831,021   $692,212   $88,030   $245,006 
Revenue from ABL Shenzhen (a)  $530,888   $507,801   $66,501   $199,775 
Revenue from ABL LAX (a)  $2,585   $
-
   $
-
   $
-
 
Rental income from Weship (c)  $155,344   $255,483   $2,979   $76,629 
Rental income from Intermodal (d)  $8,199   $11,963   $4,099   $11,963 
Cost of revenue charged by Weship (b)  $402,846   $661,763   $25,526   $146,650 
Cost of revenue charged by Intermodal (e)  $386,468   $494,333   $26,502   $153,324 
Cost of revenue charged by ABL Wuhan (f)  $96,310   $127,548   $11,459   $62,620 
Cost of revenue charged by ABL LAX (f)  $
-
   $2,736    
-
   $2,736 
Interest expenses charged by ABL Shenzhen  $6,448   $
-
    1,612   $
-
 
  (a) The Company provides logistic forwarding services to Weship, ABL Wuhan and ABL Shenzhen and charges Weship, ABL Wuhan and ABL Shenzhen at its regular market rate for the services provided.

 

  (b) Weship is one of the Company’s vendors for truck delivery service.

 

  (c) The Company subleased portion of its warehouse space to Weship for rental income. The Company subleased its warehouse in Chicago to Weship in July 2023 and again for the period from January 2024 to February 12, 2026. The Company also subleased another warehouse with monthly rent of $6,500 from August 01, 2023 to October 31, 2024.

 

  (d) The Company subleased portion of its warehouse space to Intermodal for nine months ended February 12, 2026.
     
  (e) Intermodal is one of the Company’s vendors, providing truck delivery service and provides labor forces.

 

  (f) ABL Wuhan provides labor force and certain cross-border freight consolidation and forwarding services and is one of our cross-border freight consolidation and forwarding service providers.

f) Salaries and employee benefits paid to major shareholders

 

   Nine Months Ended
March 31,		   Three Months Ended
March 31,		 
   2026   2025   2026   2025 
Mr. Henry Liu  $46,238   $53,492   $4,007   $19,707 
Mr. Shuai Li   52,828    61,299   $4,434    22,584 
Total  $99,066   $114,791   $8,441   $42,291 
Schedule of Sale Transaction The Company recorded a gain on the sale of the ABL Chicago business in the amount of $2,556,315 as follows:
Cash consideration for sale of ABL Chicago  $1 
      
Less: book value of assets sold:     
Cash   167,536 
Accounts receivable – third parties, net   1,078,847 
Accounts receivable – related party, net   358,246 
Prepaid expenses and other as sets   337,616 
Other receivable – related parties   1,141,959 
Loan receivable – related parties   386,541 
Contract assets   43,365 
Investment in other entity   15,741 
Property and equipment, net   132,366 
Right of use operating lease assets, net   1,697,873 
Right of use financing lease assets, net   71,692 
Net book value of assets sold   5,431,782 
      
Add: Liabilities assumed by buyer     
Accounts payable– third parties   1,907,730 
Accounts payable– related party   153,353 
Accrued expenses and other liabilities   794,091 
Obligations under operating leases   2,150,449 
Obligations under financing leases   92,323 
Tax payable   79,825 
Other loan payable   2,243,159 
Amounts duo related party   260,144 
Amounts due to shareholder   182,846 
Amounts due to ultimate holding company   3,402,808 
Loan payable to related party   124,176 
Total liabilities assumed   11,390,904 
      
Less: Amounts due from ABL Chicago   3,402,808 
      
Gain on Sale of ABL Chicago  $2,556,315