Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 28, 2016 | Dec. 31, 2015 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Trading Symbol | wesc | ||
Entity Registrant Name | W&E Source Corp. | ||
Entity Central Index Key | 1,368,275 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 82,489,391 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 134,625 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current Assets | ||
Cash | $ 5,647 | $ 10,893 |
Accounts receivables | 824 | 603 |
Total current assets | 6,471 | 11,496 |
Non-Current Assets | ||
Prepayments/Deposits | 11,613 | 12,009 |
Total non-current assets | 11,613 | 12,009 |
TOTAL ASSETS | 18,084 | 23,505 |
Current liabilities | ||
Accounts payable and accrued liabilities | 13,245 | 7,128 |
Wage payable and other payable | 0 | 2,142 |
Advanced for share issuance | 79,098 | 42,412 |
Advances from related parties and related party payables | 25,920 | 27,841 |
Total current liabilities | 118,263 | 79,523 |
TOTAL LIABILITIES | 118,263 | 79,523 |
Shareholders' deficit | ||
Common stock, $0.0001 par value, 500,000,000 shares authorized, 63,438,300 shares issued and outstanding as of June 30, 2016 and 2015 | 6,344 | 6,344 |
Additional paid-in capital | 957,055 | 957,055 |
Accumulated deficit | (1,072,229) | (1,023,523) |
Accumulated other comprehensive income | 8,651 | 4,106 |
Total shareholders' deficit | (100,179) | (56,018) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ 18,084 | $ 23,505 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Paranthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Common Stock, Par Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 63,438,300 | 63,438,300 |
Common Stock, Shares, Outstanding | 63,438,300 | 63,438,300 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Sales revenues | $ 3,718 | $ 7,374 |
Cost of revenues | (1,757) | (3,031) |
Gross profit | 1,961 | 4,343 |
Operating expenses | ||
General and administrative expenses | 45,525 | 81,928 |
Total operating expenses | 45,525 | 81,928 |
Operating Loss | (43,564) | (77,585) |
Other expense | ||
Foreign currency exchange loss | (5,142) | (3,556) |
Total other expense | (5,142) | (3,556) |
Net loss | (48,706) | (81,141) |
Other comprehensive income: | ||
Cumulative foreign currency translation adjustment | 4,545 | 4,766 |
Comprehensive loss | $ (44,161) | $ (76,375) |
Weighted average number of shares outstanding - basic and diluted | 63,438,300 | 58,443,846 |
Loss per share - basic and diluted | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Capital Stock [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Total |
Beginning Balance at Jun. 30, 2014 | $ 4,790 | $ 803,226 | $ 0 | $ (660) | $ (942,382) | $ (135,026) |
Beginning Balance (Shares) at Jun. 30, 2014 | 47,900,000 | |||||
Issue of common shares | $ 1,554 | 153,829 | 155,383 | |||
Issue of common shares (Shares) | 15,538,300 | |||||
Foreign currency translation adjustment | 4,766 | 4,766 | ||||
Net loss | (81,141) | (81,141) | ||||
Ending Balance at Jun. 30, 2015 | $ 6,344 | 957,055 | 4,106 | (1,023,523) | (56,018) | |
Ending Balance (Shares) at Jun. 30, 2015 | 63,438,300 | |||||
Foreign currency translation adjustment | 4,545 | 4,545 | ||||
Net loss | (48,706) | (48,706) | ||||
Ending Balance at Jun. 30, 2016 | $ 6,344 | $ 957,055 | $ 0 | $ 8,651 | $ (1,072,229) | $ (100,179) |
Ending Balance (Shares) at Jun. 30, 2016 | 63,438,300 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flow from Operating Activities | ||
Net loss | $ (48,706) | $ (81,141) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 0 | 7,965 |
Change in operating assets and liabilities: | ||
Prepaid expenses and deposits | 75 | 0 |
Decrease in accounts receivable | 0 | 1,823 |
Decrease in other receivable | (163) | (85) |
Increase (decrease) in accounts payable and accrued liabilities | 4,025 | (5,562) |
Decrease in related party payable | (1,809) | 0 |
Net cash sourced (used) in operating activities | (46,578) | (77,000) |
Cash Flows from Financing Activities | ||
Proceeds from advances - related parties | 0 | 29,414 |
Proceeds from advances for share issuance | 37,080 | 45,128 |
Net cash provided by financing activities | 37,080 | 74,542 |
Cumulative translation adjustment | 4,252 | (1,218) |
Net decrease in cash & cash equivalents for the year | (5,246) | (3,676) |
Beginning of period | 10,893 | 14,569 |
End of period | 5,647 | 10,893 |
Supplemental cash flows information | ||
Interest received | 0 | 0 |
Interest paid | 0 | 0 |
Income tax paid | 0 | 0 |
Share issuance for the debt settlement | $ 0 | $ 155,383 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Jun. 30, 2016 | |
Organization and Nature of Operations [Text Block] | Note 1 – Organization and Nature of Operations W&E Source Corp. (“the Company”) was incorporated in the State of Delaware on October 11, 2005 and is based in Montréal, Québec, Canada. The Company is providing air ticket reservations, hotel reservations and other travel related services. On August 25, 2011, the Company incorporated a company called Airchn Travel Global, Inc. (“ATGI”) in the State of Washington, USA. ATGI is a wholly owned subsidiary of the Company. ATGI focuses on a business segment of travel businesses which includes air ticket reservations, hotel reservations and other travel services. On October 4, 2011, the Company incorporated a company called Airchn Travel (Canada) Inc. (“ATCI”) in the Province of British Columbia, Canada. ATCI is a wholly owned subsidiary of ATGI. ATCI has a similar business segment as ATGI. In January 2012, the Company changed its name from News of China, Inc. to W&E Source Corp. and increased its authorized shares to 500,000,000 shares. As a result of the name change, the Company’s listing symbol on OTCQB is also changed to WESC. During the quarter ended March 31, 2012, the Company incorporated a company named Airchn Travel (Beijing) Inc. (“ATBI”) in Beijing, China. ATBI is also a wholly owned subsidiary of ATGI. ATBI has a similar business segment as ATGI. On December 15, 2012, Airchin Travel (Beijing) Inc., a wholly owned subsidiary of W&E Source Corp. (the “Company”), entered into the Share Purchase Agreement (the “Agreement”) with Mr. Wu Hao (the “Seller”), a majority shareholder of Chengdu Baopiao Internet Co., Ltd. (“Baopiao”), to acquire part of his ownership in Baopiao which equals 51% of all issued and outstanding stock of Baopiao (the “Shares”). The Company will pay for the aggregate purchase price of RMB2,550,000 for the Shares in cash and by assuming the Seller’s debt to Baopiao in the amount of RMB1,800,000 (approximately US $289,000) (the “Debt”). According to the terms of the Agreement, the Company will assume the Debt upon execution of the Agreement and pay the Seller the remaining RMB750,000 of the purchase price within 20 days from the execution of the Agreement. Also at execution, the Company will paid Baopiao RMB200,000 as repayment of the Debt and satisfy the remaining Debt of RMB1,600,000 within 20 days from the execution of the Agreement. Also pursuant to the Agreement, the Seller will provide guaranties that other than the information including financial statements provided to the Company, Baopiao does not have any other debts, and no third party has any rights or liens on the assets of Baopiao. The Seller and Baopiao will also indemnify the Company against any damages, liabilities, losses and expenses which the Company may sustain or suffer due to any breach of the guaranties made by the Seller or Baopiao. Baopiao has obtained the necessary shareholder approval for the transfer of the Shares and will register the transfer of the Shares with the applicable State Administration for Industry and Commerce within three days from the date of the Agreement. In connection with the Agreement, the Company also entered into an agreement with the Seller and Baopiao that as an incentive for the management team of Baopiao, the Company will reserve up to 26 million shares of its common stock for issuance to the Baopiao employees upon achievement of certain milestones over the next three years. The Share Purchase Agreement with Mr. Wu Hao is not completed in January, 2013 and both the Company and Mr. Wu Hao agreed to terminate the agreement entered on December 15, 2012. On October 26, 2014, the Company issued 15,538,300 common shares of the Company to settle the debts payable of $155,383 to related parties at $0.01 per share. On August 5, 2016, the Company issued 19,051,091 common shares of the Company to settle the debts payable of $25,920 to a related party and $78,861 to an independent party of the Company at $0.0055 per share, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies [Text Block] | Note 2 – Summary of Significant Accounting Policies a. Basis of presentation b. Foreign currency translation. c. Principles of consolidation. d. Use of Estimates. e. Loss per share. f. Revenue recognition. g. Cash and cash equivalents. h. Equipment. i. Income taxes. j. Recently issued accounting pronouncements. Recently Issued Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The amendments in ASU 2015-11 require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of ASU 2015-11 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The adoption of ASU 2015-16 is not expected to have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The amendments in ASU 2016-01, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. In addition, the new guidance permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-03, “Intangibles-Goodwill and Other (Topic 350); Business Combinations (Topic 805); Consolidation (Topic 810); Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance”. The amendments in this ASU make the guidance in ASUs 2014-02, 2014-03, 2014-07, and 2014-18 effective immediately by removing their effective dates. The amendments also include transition provisions that provide that private companies are able to forgo a preferability assessment the first time they elect the accounting alternatives within the scope of this ASU. Any subsequent change to an accounting policy election requires justification that the change is preferable under Topic 250, Accounting Changes and Error Corrections. The amendments in this ASU also extend the transition guidance in ASUs 2014-02, 2014-03, 2014-07, and 2014-18 indefinitely. While this ASU extends transition guidance for Updates 2014-07 and 2014-18, there is no intention to change how transition is applied for those two ASUs. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. |
Going Concern
Going Concern | 12 Months Ended |
Jun. 30, 2016 | |
Going Concern [Text Block] | Note 3 - Going Concern As reflected in the accompanying consolidated financial statements, the Company has an accumulated deficit of $1,072,229, and a net loss for $48,706 of the years ended June 30, 2016 and 2015 of $1,023,523 and $81,141, respectively. The Company currently has business activities to generate funds for its own operations, however, has not yet achieved profitable operations. These factors raise substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital and implement its business plan. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management believes that the current action to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. There are no assurances that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Jun. 30, 2016 | |
Accounts Payable and Accrued Liabilities [Text Block] | Note 4 - Accounts Payable and Accrued Liabilities Accounts Payable and Accrued Liabilities of $13,245 as of June 30, 2016 consists of a refund to customer of $1,257, payment for vendors (hotel) of $572, $1,400 in legal fee, $328 in commission fees, $9,500 in audit fee and others of $216. |
Related Parties
Related Parties | 12 Months Ended |
Jun. 30, 2016 | |
Related Parties [Text Block] | Note 5 – Related Parties Mrs. Hong Ba serves as the Chief Executive Officer and Director of the Company. Mr. Feng Li, the husband of Mrs. Hong Ba, is the owner of the Canada Airchn Financial Inc. (“CAFI”). Mr. Chen Xi Shi is the former Chief Financial Officer and Director of the Company. The shareholders make advances to the Company from time to time for the Company’s operations. These advances are due on demand and non-interest bearing. During the fiscal year ended June 30, 2015, the Company owned by a director of the Company charged $7,686 in rent and $5,764 was settled in share issuance and $1,921 has been due to the related party. During the fiscal year ended June 30, 2016, the Company owned by a director of the Company charged $7,236 in rent and the debt was transferred to an individual investor of the company. During fiscal year ended June 30, 2016, the former director of the Company transferred the debt of $25,920 in full to a related party, the sister in law of CEO of the Company. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Text Block] | Note 6 – Income Taxes United States of America The Company and its subsidiary are subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate. Canada The Company’s subsidiary, Airchn Travel (Canada) Inc. is incorporated in British Columbia in Canada. It is subject to income taxes on income arising in, or derived from, the tax jurisdiction in British Columbia it operates. The basic federal rate of Part I tax is 38% of taxable income, 28% after federal tax abatement. After the general tax reduction, the net federal tax rate is 18% effective January 1, 2010; 16.5% effective January 1, 2011; 15% effective January 1, 2012. The provincial and territorial lower and higher tax rates in British Columbia are 2.5% and 10%, respectively. Other than income tax, Airchn Travel (Canada) Inc. is GST registrants who make taxable services in British Columbia and collect tax at the 5% GST rate on taxable services. People’s Republic of China The Company’s subsidiary, Airchn Travel (Beijing) Inc. is incorporated in Beijing in China. It is subject to PRC tax laws. Prior to January 1, 2008, PRC enterprise income tax (“EIT”) was generally assessed at the rate of 33% of taxable income. In March 2007, a new enterprise income tax law (the “New EIT Law”) in the PRC was enacted which was effective on January 1, 2008. The New EIT Law generally applies a uniform 25% EIT rate to both foreign invested enterprises and domestic enterprises. For the reporting periods, the components of loss before income taxes were comprised of the following: For the Year Ended For the Year Ended June 30, 2016 June 30, 2015 United States of America $ (36,187 ) $ (34,880 ) Canada (9,332 ) (39,433 ) People's Republic of China (3,187 ) (6,828 ) Loss before income taxes $ (48,706 ) $ (81,141 ) The components of deferred taxes assets at June 30: 2016 2015 USA net operating losses $ 12,303 $ 11,859 Canada net operating losses 1,260 5,323 PRC net operating losses 866 1,855 Deferred tax assets, net 14,429 19,037 Less: valuation allowance (14,429 ) (19,037 ) Deferred tax assets, net $ - $ - As of June 30, 2016, the Company has an accumulated deficit of $1,072,229 that can be carried forward to offset future net profit for income tax purposes. All tax penalties and interest are expensed as incurred. For the years ended June 30, 2016 and 2015, there were no tax penalties or interest. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jun. 30, 2016 | |
Commitment and Contingencies [Text Block] | Note 7 – Commitment and Contingencies The Company leases an office space in Canada. The lease term is month to month and the monthly rent is Cdn$800. The lease agreement in Beijing office was terminated effective from October 1, 2013. On May 30, 2014, the Company assigned the lease agreement dated November 1, 2011 in Seattle to Meixi Travel LLC effective on August 1, 2014. For each of the years ended June 30, 2016 and 2015, the Company recorded a rent expense of $7,236 (Cdn$9,600) and $10,044, respectively. |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2016 | |
Common Stock [Text Block] | Note 8 – Common Stock On January 23, 2012, the Company entered into a subscription agreement with the significant shareholder Hong Ba, for the sale of 22,000,000 common shares for $630,000 from cash received and expense paid on behalf by Hong Ba. Subsequent to the sale, Hong Ba owns 22,000,000 common shares which represent 45.9% of the issued and outstanding shares of the Company. The Share Purchase Agreement with Mr. Wu Hao was not completed in January 2013, and both the Company and Mr. Wu Hao agreed to terminate the agreement entered on December 15, 2012. On October 26, 2014, the Company issued 15,538,300 common shares of the Company to settle the debts payable of $155,383 to related parties at $0.01 per share. The Company is authorized to issue 500,000,000 shares of common stock with par value of $0.0001. As of June 30, 2016 and June 30, 2015, 63,438,300 and 63,438,300 shares of common stock were issued and outstanding, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Event [Text Block] | Note 9 – Subsequent Events On August 5, 2016, the Company entered into Debt Conversion Agreements (the “Agreements”) with each of Lin Li and Youzhe Li, who were each creditors to the Company with total outstanding balances of $25,920 (the “Lin Li Loan”) and $78,861 (the “Youzhe Li Loan” and, together with the Lin Li Loan, the “Loans”), respectively. Pursuant to the Agreements the Company agreed to issue an aggregate total of 19,051,091 shares of its common stock, $0.0001 par value per share (the “Shares”), at the conversion rate of $0.0055 per share as full payment for the Loans. Upon issuance and delivery of the Shares, the Loans shall be fully paid and the Company shall no longer have any obligations to the individuals under the Loans. Lin Li is the sister of Mr. Feng Li, who is the husband of Hong Ba, the Company’s director, CEO and CFO. As the filing date of these financial statements, there are 82,489,391 shares issued outstanding. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Basis of presentation [Policy Text Block] | a. Basis of presentation |
Foreign currency translation [Policy Text Block] | b. Foreign currency translation. |
Principles of consolidation [Policy Text Block] | c. Principles of consolidation. |
Use of Estimates [Policy Text Block] | d. Use of Estimates. |
Loss per share [Policy Text Block] | e. Loss per share. |
Revenue recognition [Policy Text Block] | f. Revenue recognition. |
Cash and cash equivalents [Policy Text Block] | g. Cash and cash equivalents. |
Equipment [Policy Text Block] | h. Equipment. |
Income taxes [Policy Text Block] | i. Income taxes. |
Recently issued accounting pronouncements [Policy Text Block] | j. Recently issued accounting pronouncements. Recently Issued Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The amendments in ASU 2015-11 require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of ASU 2015-11 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The adoption of ASU 2015-16 is not expected to have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The amendments in ASU 2016-01, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. In addition, the new guidance permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-03, “Intangibles-Goodwill and Other (Topic 350); Business Combinations (Topic 805); Consolidation (Topic 810); Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance”. The amendments in this ASU make the guidance in ASUs 2014-02, 2014-03, 2014-07, and 2014-18 effective immediately by removing their effective dates. The amendments also include transition provisions that provide that private companies are able to forgo a preferability assessment the first time they elect the accounting alternatives within the scope of this ASU. Any subsequent change to an accounting policy election requires justification that the change is preferable under Topic 250, Accounting Changes and Error Corrections. The amendments in this ASU also extend the transition guidance in ASUs 2014-02, 2014-03, 2014-07, and 2014-18 indefinitely. While this ASU extends transition guidance for Updates 2014-07 and 2014-18, there is no intention to change how transition is applied for those two ASUs. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Components of Loss Before Income Taxes [Table Text Block] | For the Year Ended For the Year Ended June 30, 2016 June 30, 2015 United States of America $ (36,187 ) $ (34,880 ) Canada (9,332 ) (39,433 ) People's Republic of China (3,187 ) (6,828 ) Loss before income taxes $ (48,706 ) $ (81,141 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 USA net operating losses $ 12,303 $ 11,859 Canada net operating losses 1,260 5,323 PRC net operating losses 866 1,855 Deferred tax assets, net 14,429 19,037 Less: valuation allowance (14,429 ) (19,037 ) Deferred tax assets, net $ - $ - |
Organization and Nature of Op18
Organization and Nature of Operations (Narrative) (Details) - 12 months ended Jun. 30, 2016 | USD ($)d$ / sharesshares | CNY (¥)dshares |
Organization And Nature Of Operations 1 | shares | 500,000,000 | 500,000,000 |
Organization And Nature Of Operations 2 | 51.00% | 51.00% |
Organization And Nature Of Operations 3 | ¥ 2,550,000 | |
Organization And Nature Of Operations 4 | 1,800,000 | |
Organization And Nature Of Operations 5 | $ | $ 289,000 | |
Organization And Nature Of Operations 6 | ¥ 750,000 | |
Organization And Nature Of Operations 7 | d | 20 | 20 |
Organization And Nature Of Operations 8 | ¥ 200,000 | |
Organization And Nature Of Operations 9 | ¥ 1,600,000 | |
Organization And Nature Of Operations 10 | d | 20 | 20 |
Organization And Nature Of Operations 11 | shares | 26,000,000 | 26,000,000 |
Organization And Nature Of Operations 12 | shares | 15,538,300 | 15,538,300 |
Organization And Nature Of Operations 13 | $ | $ 155,383 | |
Organization And Nature Of Operations 14 | $ / shares | $ 0.01 | |
Organization And Nature Of Operations 15 | shares | 19,051,091 | 19,051,091 |
Organization And Nature Of Operations 16 | $ | $ 25,920 | |
Organization And Nature Of Operations 17 | $ | $ 78,861 | |
Organization And Nature Of Operations 18 | $ / shares | $ 0.0055 |
Going Concern (Narrative) (Deta
Going Concern (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Going Concern 1 | $ 1,072,229 |
Going Concern 2 | 48,706 |
Going Concern 3 | 1,023,523 |
Going Concern 4 | $ 81,141 |
Accounts Payable and Accrued 20
Accounts Payable and Accrued Liabilities (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Accounts Payable And Accrued Liabilities 1 | $ 13,245 |
Accounts Payable And Accrued Liabilities 2 | 1,257 |
Accounts Payable And Accrued Liabilities 3 | 572 |
Accounts Payable And Accrued Liabilities 4 | 1,400 |
Accounts Payable And Accrued Liabilities 5 | 328 |
Accounts Payable And Accrued Liabilities 6 | 9,500 |
Accounts Payable And Accrued Liabilities 7 | $ 216 |
Related Parties (Narrative) (De
Related Parties (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Related Parties 1 | $ 7,686 |
Related Parties 2 | 5,764 |
Related Parties 3 | 1,921 |
Related Parties 4 | 7,236 |
Related Parties 5 | $ 25,920 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes 1 | 38.00% |
Income Taxes 2 | 28.00% |
Income Taxes 3 | 18.00% |
Income Taxes 4 | 16.50% |
Income Taxes 5 | 15.00% |
Income Taxes 6 | 2.50% |
Income Taxes 7 | 10.00% |
Income Taxes 8 | 5.00% |
Income Taxes 9 | 33.00% |
Income Taxes 10 | 25.00% |
Income Taxes 11 | $ 1,072,229 |
Commitment and Contingencies (N
Commitment and Contingencies (Narrative) (Details) - 12 months ended Jun. 30, 2016 | USD ($) | CAD |
Commitment And Contingencies 1 | CAD | CAD 800 | |
Commitment And Contingencies 2 | $ | $ 7,236 | |
Commitment And Contingencies 3 | CAD | CAD 9,600 | |
Commitment And Contingencies 4 | $ | $ 10,044 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Common Stock 1 | 22,000,000 |
Common Stock 2 | $ | $ 630,000 |
Common Stock 3 | 22,000,000 |
Common Stock 4 | 45.90% |
Common Stock 5 | 15,538,300 |
Common Stock 6 | $ | $ 155,383 |
Common Stock 7 | $ / shares | $ 0.01 |
Common Stock 8 | 500,000,000 |
Common Stock 9 | $ | $ 0.0001 |
Common Stock 10 | 63,438,300 |
Common Stock 11 | 63,438,300 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Subsequent Event 1 | $ 25,920 |
Subsequent Event 2 | $ 78,861 |
Subsequent Event 3 | shares | 19,051,091 |
Subsequent Event 4 | $ 0.0001 |
Subsequent Event 5 | $ / shares | $ 0.0055 |
Subsequent Event 6 | shares | 82,489,391 |
Schedule of Components of Loss
Schedule of Components of Loss Before Income Taxes (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 1 | $ (36,187) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 2 | (34,880) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 3 | (9,332) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 4 | (39,433) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 5 | (3,187) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 6 | (6,828) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 7 | (48,706) |
Income Taxes Schedule Of Components Of Loss Before Income Taxes 8 | $ (81,141) |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 1 | $ 12,303 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 2 | 11,859 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 3 | 1,260 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 4 | 5,323 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 5 | 866 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 6 | 1,855 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 7 | 14,429 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 8 | 19,037 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 9 | (14,429) |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 10 | (19,037) |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 11 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 12 | $ 0 |