v3.26.3
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Schedule of Income Loss Before Income Taxes

For the years ended June 30, 2026 and 2025 income (loss) before income taxes by major taxing jurisdiction consists of:

 

    Years ended
June 30,
 
    2026     2025  
HK   $ 7,038,205     $ 7,447,310  
U.S.     (36,451,950 )     (44,039,142 )
Malaysia     (2,642,917 )     (1,444,690 )
Total   $ (32,056,662 )   $ (38,036,522 )
Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following:

 

    Years ended
June 30,
 
    2026     2025  
Current provision:                
United States – Federal   $ -       -  
United States - State     14,190       -  
Foreign     1,218,905       1,203,704  
Total current provision     1,233,095       1,203,704  
                 
Deferred provision:                
United States – Federal     -       -  
United States - State     -       -  
Foreign     (85,713 )     -  
Total deferred provision:     (85,713 )     -  
                 
Total provision for income tax   $ 1,147,382     $ 1,203,704  
Schedule of Aforementioned Statutory Tax Rate to Pre-Tax Income

The reconciliation of the actual income taxes to the amount of tax computed by applying the aforementioned statutory tax rate to pre-tax income is as follows:

 

    Years ended
June 30,
 
    2026     2025  
Federal statutory income tax rate   $ (6,732,256 )   $ (7,987,670 )
State income taxes, net of federal benefit     (2,469,295 )     (3,054,267 )
Global Intangible Low-Taxes Income     666,641       1,007,772  
Permanent Differences     237,117       56,843  
Foreign Rate Differential     (396,378 )     (373,481 )
Effect of entity tax reclassification     448,686       4,832,943  
Hong Kong Preferential Rate     (21,538 )     (11,908 )
Change in valuation allowance     9,401,452       6,750,352  
Other     12,953       (16,880 )
Income tax expense   $ 1,147,382     $ 1,203,704  
Schedule of Deferred Tax Liabilities and Assets

Significant components of the Company’s deferred tax liabilities and assets as of June 30, 2026 and 2025 are as follows:

 

    Years ended
June 30,
 
    2026     2025  
Deferred tax assets:            
Net operating loss carryforward   $ 17,973,556     $ 10,839,605  
Accounts receivable impairment     6,487,479       5,456,177  
Share based compensation     2,194,433       1,868,307  
Lease liabilities     830,588       1,270,401  
Others     1,539,074       775,701  
Total deferred tax assets     29,025,130       20,210,191  
Less: Valuation allowance     (28,018,555 )     (18,617,103 )
Net deferred assets     1,006,575       1,593,088  
                 
Deferred tax liabilities:                
Property, plant and equipment     (167,217 )     (353,363 )
Intangible Assets     (22,399 )     (8,405 )
Right of use assets     (731,246 )     (1,231,320 )
Net deferred tax liabilities     (920,862 )     (1,593,088 )
                 
Net deferred tax asset   $ 85,713     $ -  

 

Schedule of Valuation Allowance

Movement of valuation allowance:

 

    Years ended
June 30,
 
    2026     2025  
At the beginning of the year   $ 18,617,103     $ 11,850,516  
Current year addition     9,401,452       6,766,587  
At the end of the year   $ 28,018,555     $ 18,617,103