Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 26, 2017 | Dec. 30, 2016 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Trading Symbol | cadc | ||
Entity Registrant Name | China Advanced Construction Materials Group, Inc | ||
Entity Central Index Key | 1,392,363 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 2,387,658 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 3,400,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 224,679 | $ 1,006,970 |
Restricted cash | 4,208,765 | 4,097,621 |
Accounts receivable, net | 47,543,077 | 40,288,552 |
Inventories | 626,738 | 1,023,471 |
Other receivables, net | 240,123 | 7,093,030 |
Prepayments and advances | 16,894,781 | 36,073,153 |
Prepayments - related party | 6,996,400 | 1,136,546 |
Total current assets | 76,734,563 | 90,719,343 |
PROPERTY PLANT AND EQUIPMENT, net | 3,644,203 | 4,709,794 |
Total assets | 80,378,766 | 95,429,137 |
CURRENT LIABILITIES: | ||
Short term loans, banks and bank guarantees | 17,700,720 | 16,555,440 |
Notes payable | 14,013,070 | 18,060,480 |
Accounts payable | 29,081,789 | 31,234,091 |
Customer deposits | 614,558 | 4,272,144 |
Other payables | 4,098,772 | 600,205 |
Other payables - shareholders | 2,261,766 | 1,491,125 |
Accrued liabilities | 1,352,750 | 1,992,214 |
Taxes payable | 103,419 | 95,708 |
Total current liabilities | 69,226,844 | 74,301,407 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock $0.001 par value, 1,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 74,000,000 shares authorized, 2,387,658 and 2,180,799 shares issued and outstanding as of June 30, 2017 and 2016, respectively | 2,388 | 2,181 |
Additional paid-in-capital | 38,662,377 | 38,373,584 |
Accumulated deficit | (40,975,658) | (31,204,831) |
Statutory reserves | 6,248,092 | 6,248,357 |
Accumulated other comprehensive income | 7,214,723 | 7,708,439 |
Total shareholders' equity | 11,151,922 | 21,127,730 |
Total liabilities and shareholders' equity | $ 80,378,766 | $ 95,429,137 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 74,000,000 | 74,000,000 |
Common Stock, Shares, Issued | 2,387,658 | 2,180,799 |
Common Stock, Shares, Outstanding | 2,387,658 | 2,180,799 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUE | $ 45,048,413 | $ 53,678,660 |
COST OF REVENUE | 43,953,477 | 51,941,202 |
GROSS PROFIT | 1,094,936 | 1,737,458 |
PROVISION FOR DOUBTFUL ACCOUNTS | (3,352,063) | (3,854,014) |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (5,669,702) | (6,814,977) |
RESEARCH AND DEVELOPMENT EXPENSES | (846,438) | (707,492) |
LOSS ON SALE OF ASSET GROUP | 0 | (386,906) |
IMPAIRMENT LOSS OF LONG-LIVED ASSETS | 0 | (2,624,487) |
LOSS FROM OPERATIONS | (8,773,267) | (12,650,418) |
OTHER (EXPENSE) INCOME, NET | ||
Other income, net | 407,452 | 20,920 |
Interest income | 30,464 | 268,088 |
Interest expense | (830,978) | (838,323) |
Finance expense | (604,498) | (861,306) |
TOTAL OTHER EXPENSE, NET | (997,560) | (1,410,621) |
LOSS BEFORE PROVISION FOR INCOME TAXES | (9,770,827) | (14,061,039) |
PROVISION FOR INCOME TAXES | 0 | (1,744,975) |
NET LOSS | (9,770,827) | (15,806,014) |
COMPREHENSIVE LOSS | ||
Net loss | (9,770,827) | (15,806,014) |
Other comprehensive loss - foreign currency translation loss | (493,716) | (2,766,786) |
COMPREHENSIVE LOSS | $ (10,264,543) | $ (18,572,800) |
Weighted average number of shares: | ||
Basic | 2,266,826 | 2,180,799 |
Diluted | 2,266,826 | 2,180,799 |
Loss per share: | ||
Basic | $ (4.31) | $ (7.25) |
Diluted | $ (4.31) | $ (7.25) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-In capital [Member] | Retained earnings Unrestricted [Member] | Retained earnings Statutory reserves [Member] | Accumulated other comprehensive income [Member] | Total |
Beginning Balance at Jun. 30, 2015 | $ 2,181 | $ 38,373,584 | $ (15,398,817) | $ 6,248,357 | $ 10,475,225 | $ 39,700,530 |
Beginning Balance (Shares) at Jun. 30, 2015 | 2,180,799 | |||||
Net loss | (15,806,014) | (15,806,014) | ||||
Foreign currency translation loss | (2,766,786) | (2,766,786) | ||||
Ending Balance at Jun. 30, 2016 | $ 2,181 | 38,373,584 | (31,204,831) | 6,248,357 | 7,708,439 | 21,127,730 |
Ending Balance (Shares) at Jun. 30, 2016 | 2,180,799 | |||||
Common stock issued for compensation (Shares) | 100,000 | |||||
Common stock issued for services without performance commitment | $ 107 | (107) | ||||
Common stock issued for services without performance commitment (Shares) | 106,859 | |||||
Common stock issued for compensation | $ 100 | 288,900 | 289,000 | |||
Net loss | (9,770,827) | (9,770,827) | ||||
Dissolution of subsidiaries | (265) | (265) | ||||
Foreign currency translation loss | (493,716) | (493,716) | ||||
Ending Balance at Jun. 30, 2017 | $ 2,388 | $ 38,662,377 | $ (40,975,658) | $ 6,248,092 | $ 7,214,723 | $ 11,151,922 |
Ending Balance (Shares) at Jun. 30, 2017 | 2,387,658 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (9,770,827) | $ (15,806,014) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,178,427 | 1,953,087 |
Stock-based compensation expense | 289,000 | 498,604 |
Deferred tax provision | 0 | 1,744,952 |
Provision for doubtful accounts | 3,352,063 | 3,854,014 |
Loss on sale of Asset Group | 0 | 386,906 |
Impairment loss of long-lived assets | 0 | 2,624,487 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (13,544,355) | (31,302,306) |
Inventories | 374,676 | (60,840) |
Other receivables, net | 7,534,134 | 660,051 |
Prepayments and advances | 18,161,510 | 2,707,987 |
Prepayments - related party | (5,856,413) | 2,626,699 |
Accounts payable | 11,783 | 33,108,245 |
Customer deposits | (3,556,647) | 3,194,095 |
Other payables | 3,493,637 | (1,150,691) |
Other payables - shareholders | 623,924 | 600,000 |
Accrued liabilities | (599,831) | 139,943 |
Taxes payable | 9,575 | 86,679 |
Net cash provided by operating activities | 1,700,656 | 5,865,898 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Redemptions of short-term investments | 0 | 5,131,523 |
Purchases of property, plant and equipment | (210,962) | (208,113) |
Net cash (used in) provided by investing activities | (210,962) | 4,923,410 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short term loans, banks and bank guarantees | 20,706,132 | 17,106,980 |
Repayments of short term loans, banks and bank guarantees | (19,237,612) | (25,038,398) |
Proceeds from notes payable | 30,398,364 | 50,854,386 |
Repayments of notes payable | (34,069,664) | (61,196,333) |
Payable to shareholders, net | 146,611 | 207,447 |
Principal payments on capital lease obligations | 0 | (516,534) |
Change in restricted cash, net | (191,912) | 6,275,311 |
Net cash used in financing activities | (2,248,081) | (12,307,141) |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH AND CASH EQUIVALENTS | (23,904) | (167,112) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (782,291) | (1,684,945) |
CASH AND CASH EQUIVALENTS, beginning of year | 1,006,970 | 2,691,915 |
CASH AND CASH EQUIVALENTS, end of year | 224,679 | 1,006,970 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest expense | 825,772 | 793,162 |
Cash paid for income tax | 0 | 0 |
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES: | ||
Amounts from disposal of equipment yet to collect | 0 | 1,741,802 |
Disposal of equipment offset with other payables | 0 | 822,746 |
Prepayment reclassified to other receivables | 0 | 5,350,597 |
Capital lease obligations offset with accounts receivable | 0 | 233,277 |
Capital lease obligations offset with prepayments | 0 | 198,577 |
Capital lease obligations offset with advances on equipement purchases | 0 | 466,554 |
OTHER NON-CASH TRANSACTIONS: | ||
Accounts receivable offset with accounts payable upon execution of tri-party agreements | $ 1,535,126 | $ 2,097,952 |
Organization and description of
Organization and description of business | 12 Months Ended |
Jun. 30, 2017 | |
Organization and description of business [Text Block] | Note 1 – Organization and description of business China Advanced Construction Materials Group, Inc. (“CADC Delaware”) was incorporated in the State of Delaware on February 15, 2007. CADC Delaware, through its 100% owned subsidiaries and its variable interest entities (“VIEs”), is engaged in producing general ready-mix concrete, customized mechanical refining concrete, and other concrete-related products that are mainly sold in the People’s Republic of China (the “PRC”). CADC Delaware has a wholly-owned subsidiary in the British Virgin Islands, Xin Ao Construction Materials, Inc. (“BVI-ACM”), which is a holding company with no operations. BVI-ACM has a wholly-owned foreign subsidiary, Beijing Ao Hang Construction Material Technology Co., Ltd. (“China-ACMH”), and China-ACMH has contractual agreements with Beijing XinAo Concrete Group (“Xin Ao”) and therefore Xin Ao is considered to be a VIE of China- ACM. Xin Ao is engaged in the business of consulting, concrete mixing and equipment rental services. Xin Ao had five wholly owned subsidiaries in the PRC: (1) Beijing Heng Yuan Zheng Ke Technical Consulting Co., Ltd, (2) Beijing Hong Sheng An Construction Materials Co., Ltd, (3) Beijing Heng Tai Hong Sheng Construction Materials Co., Ltd, (4) Da Tong Ao Hang Wei Ye Machinery, Equipment Rental Co., Ltd, and (5) Luan Xian Heng Xin Technology Co., Ltd. Since their establishment, none of these five entities had any operations and the Company did not plan to pursue operations for these entities. As of June 30, 2017, all five subsidiaries were dissolved. On August 1, 2013, CADC Delaware consummated a reincorporation merger with its newly formed wholly-owned subsidiary, China Advanced Construction Materials Group, Inc. (“China ACM”), a Nevada corporation, with CADC Delaware merging into China ACM and China ACM being the surviving company, for the purpose of changing CADC Delaware’s state of incorporation from Delaware to Nevada. China ACM, BVI-ACM, China-ACMH and Xin Ao are collectively referred to as the “Company.” |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 30, 2017 | |
Summary of significant accounting policies [Text Block] | Note 2 – Summary of significant accounting policies Liquidity In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. The Company engages in the production of advanced construction materials for large scale infrastructure, commercial and residential developments. The Company’s business is capital intensive and the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties and bank acceptance notes have been utilized to finance the working capital requirements and the capital expenditures of the Company. Due to recurring losses, the Company’s working capital was approximately $7.5 million as of June 30, 2017, as compared to $16.4 million as of June 30, 2016. As of June 30, 2017, the Company had cash on-hand of approximately $0.2 million and restricted cash balances of approximately $4.2 million, with remaining current assets mainly composed of accounts receivables and prepayments and advances. Although the Company believes that it can realize its current assets in the normal course of business, the Company’s ability to repay its current obligations will depend on the future realization of its current assets. Management has considered its historical experience, the economic environment, trends in the construction industry, the expected collectability of its accounts receivable and other receivables and the realization of the prepayments on inventory, and provided for an allowance for doubtful accounts as of June 30, 2017. The Company expects to realize the balance of its current assets net of the allowance for doubtful accounts within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company may have to consider supplementing its available sources of funds through the following: • Financial support and credit guarantee commitments from the Company’s majority shareholders (See Note 7 - Related party transactions). • Other available sources of financing from PRC banks and other financial institutions, given the Company’s credit history. Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s working capital requirements and debt obligations as they become due. However, there is no assurance that management will be successful in their plans. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as changes in the demand for the Company’s products, economic conditions, competitive pricing in the concrete-mix industry, the Company’s operating results continuing to deteriorate, or the inability of the Company’s bank and shareholders to provide continued financial support. Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements include the accounts of all the directly and indirectly owned subsidiaries and VIEs listed below. All material intercompany transactions and balances have been eliminated in consolidation. Principles of consolidation The consolidated financial statements reflect the activities of the following subsidiaries and VIEs. All material intercompany transactions have been eliminated. Ownership Subsidiaries and VIEs Place incorporated percentage BVI-ACM British Virgin Island 100% China-ACMH Beijing, China 100% Xin Ao Beijing, China VIE Heng Yuan Zheng Ke 3 Beijing, China VIE Hong Sheng An 2 Beijing, China VIE Heng Tai 4 Beijing, China VIE Da Tong 1 Datong, China VIE Heng Xin 2 Luanxian, China VIE 1 2 3 4 VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIEs. The primary beneficiary is required to consolidate the VIEs for financial reporting purposes. Management makes ongoing assessments of whether China ACM is the primary beneficiary of Xin Ao. Based upon a series of contractual arrangements, the Company determined that Xin Ao is a VIE subject to consolidation and that China ACM is the primary beneficiary. Accordingly, the accounts of Xin Ao are consolidated with those of China ACM. The carrying amount of the VIE’s assets and liabilities are as follows: June 30, June 30, 2017 2016 Current assets $ 76,607,089 $ 90,518,451 Property, plants and equipment 3,644,203 4,709,794 Total assets 80,251,292 95,228,245 Liabilities (66,612,148 ) (72,579,677 ) Intercompany payables* (7,088,094 ) (7,355,650 ) Total liabilities (73,700,242 ) (79,935,327 ) Net assets $ 6,551,050 $ 15,292,918 * Payables to China-ACMH and BVI-ACM have been eliminated upon consolidation. Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s consolidated financial statements include allowance for doubtful accounts, deferred income taxes, prepayments and advances, stock-based compensation, and fair value and useful lives of property, plant and equipment. Actual results could be materially different from those estimates. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of China ACM and BVI-ACM is the U.S. dollar. China-ACMH and Xin Ao use their local currency Chinese Renminbi (“RMB”) as their functional currency. In accordance with the US GAAP guidance on Foreign Currency Translation, the Company’s results of operations and cash flows are translated at the average exchange rates during the period, assets and liabilities are translated at the exchange rates at the balance sheet dates, and equity is translated at historical exchange rates. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Asset and liability accounts at June 30, 2017 and 2016, were translated at RMB6.78 and RMB6.64 to $1.00, respectively. The average translation rates applied to the consolidated statements of operations and comprehensive loss and cash flows for the years ended June 30, 2017 and 2016 were RMB6.81 and RMB6.43 to $1.00, respectively. Translation gains (losses) that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations. There were no foreign currency transaction gains or losses for each of the years ended June 30, 2017 and 2016. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive income. Revenue recognition Revenue is realized or realizable and earned when four criteria are met: • Persuasive evidence of an arrangement exists (the Company considers its sales contracts to be pervasive evidence of an arrangement); • Delivery has occurred; • The seller’s price to the buyer is fixed or determinable; and • Collectability of payment is reasonably assured. The Company sells its concrete products primarily to major local construction companies. Sales agreements are signed with each customer. The agreements list all terms and conditions with the exception of delivery date and quantity, which are evidenced separately in purchase orders. The purchase price of products is fixed in the agreement and customers are not permitted to renegotiate after the contracts have been signed. The agreements include a cancellation clause if the Company or customers breach the contract terms specified in the agreement. The Company recognizes revenue when title and ownership of the goods are transferred upon shipment to the customer by the Company and collectability of payment is reasonably assured. The Company includes the shipping and handling fee in both revenue and cost of revenue. Financial instruments US GAAP, regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3 inputs to the valuation methodology are unobservable. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Cash and cash equivalents The Company considers all highly liquid investments with the original maturity of three months or less at the date of purchase to be cash equivalents. The Company currently maintains substantially all of its day-to-day operating cash balances with major financial institutions within the PRC and the United States. As of June 30, 2017 and 2016, the Company had deposits in excess of federally insured limits totaling approximately $0.2 million and $0.9 million, respectively, in the PRC. Restricted cash As of June 30, 2017 and 2016, restricted cash consisted of collateral representing cash deposits for bank guarantees and notes payable. Accounts receivable The Company extends unsecured credit to its customers in the normal course of business. Accounts are considered past due after 30 days. In establishing the required allowance for doubtful accounts, management considers historical experience, the economic environment, trends in the construction industry and the expected collectability of the overdue receivables. Management reviews its accounts receivable each reporting period to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is recorded when collection of the full amount is no longer probable. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovering is considered remote. The Company provides a provision of 15% of the allowance for doubtful accounts for accounts receivable balance that are past due more than 180 days but less than one year, 40% of the allowance for doubtful accounts for accounts receivable past due from one to two years, 75% of the allowance for doubtful accounts for accounts receivable past due beyond two years, 100% of the allowance for doubtful accounts for accounts receivable past due beyond three years, plus additional amounts as necessary when the Company’s collection department determines the collection of the full amount is remote and the Company’s management approves 100% of the allowance for doubtful accounts. The Company’s management has continued to evaluate the reasonableness of the valuation allowance policy and will update it if necessary. Inventories Inventories consist of raw materials and are stated at the lower of cost or market, as determined using the weighted average cost method. Management compares the cost of inventories with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost. As of June 30, 2017 and 2016, the Company determined that no reserves for obsolescence were necessary. Other receivables Other receivables primarily include prepayments to be refunded by our suppliers if the supplies do not meet the Company’s specification needs, advances to employees, amounts due from unrelated entities, VAT tax refunds and other deposits. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectible are written off against allowances after exhaustive efforts at collection are made. The Company provides a provision of 5% of the allowance for doubtful accounts for other receivables balance that are aged within one year, 50% of the allowance for doubtful accounts for other receivables aged from one to two years, and 100% of the allowance for doubtful accounts for other receivables aged beyond two years. Prepayments and advances Prepayments are funds deposited or advanced to outside vendors for future inventory purchases. As is standard practice in the PRC, many of the Company’s vendors require a certain amount to be deposited with them as a guarantee that the Company will complete its purchases on a timely basis. This amount is refundable and bears no interest. The Company has legally binding contracts with its vendors, which require any outstanding prepayments to be returned to the Company when such contracts end. The Company wrote off $0.2 million and $0 on unrealizable prepayments for the years ended June 30, 2017 and 2016, respectively. Property, plant and equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred while additions, renewals and improvements are capitalized. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method with a 5% residual value. Leasehold improvements are amortized over the lesser of estimated useful lives or lease terms, as appropriate. The estimated useful lives of assets are as follows: Useful life Transportation equipment 7 - 10 years Plants and machinery 10 years Office equipment 5 years Buildings and improvements 3 - 20 years Accounting for long-lived assets The Company classifies its long-lived assets into: (i) machinery and equipment; (ii) transportation equipment; (iii) office and equipment; and (iv) buildings and improvements. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technological or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. If the value of an asset is determined to be impaired, the impairment to be recognized is measured in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value, less disposition costs. Due to recurring losses, the deterioration of the concrete-mix industry in Beijing, PRC, and competitive pricing pressures, the Company has performed an impairment analysis and determined its long-lived assets were impaired during the year ended June 30, 2016. As a result, the Company recorded an impairment charge of $2.6 million for the year ended June 30, 2016. These charges were related to the impairment of the Company’s transportation equipment, plants and machinery. The loss was determined using Level 3 inputs. There were no impairment charges for the year ended June 30, 2017. Competitive pricing pressures and changes in interest rates could materially and adversely affect the Company’s estimates of future net cash flows to be generated by the long-lived assets, and thus could result in future impairment losses. Stock-based compensation The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee's requisite service period. The Company’s expected volatility assumption is based on the historical volatility of Company’s stock. The expected life assumption is primarily based on historical exercise patterns and employee post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based on the Company’s current and expected dividend policy. Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. ASC 740-10, “Accounting for Uncertainty in Income Taxes,” defines uncertainty in income taxes and the evaluation of a tax position as a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. United States federal, state and local income tax returns prior to 2014 are not subject to examination by any applicable tax authorities. Value Added Tax Enterprises or individuals who sell commodities, engage in repair and maintenance, or import and export goods in the PRC are subject to a value added tax. The standard VAT rate for the Company’s industry is 3% of gross sales, and revenues are presented net of VAT. Research and development Research and development costs are expensed as incurred. The cost of materials and equipment that are acquired or constructed for research and development activities, and have alternative future uses, either in research and development, marketing, or sales, are classified as property and equipment, and depreciated over their estimated useful lives. Earnings (loss) per share The Company reports earnings (losses) per share in accordance with the US GAAP, which requires presentation of basic and diluted earnings (losses) per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings (losses) per share excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts, such as warrants, options, restricted stock based grants and convertible preferred stock, to issue common stock were exercised and converted into common stock. Common stock equivalents having an anti-dilutive effect on earnings per share are excluded from the calculation of diluted earnings per share. Stock dividends or stock splits are to be accounted for retroactively if the stock dividends or stock splits occur during the period, or retroactively if the stock dividends or stock splits occur after the end of the period but before the release of the financial statements, by considering it outstanding of the entirety of each period presented. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Comprehensive income (loss) Comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments. Recent Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (ASU) No., 2016-09, Compensation-Stock Options (Topic 718): Improvements to Employee Share-Based Payment Accounting. The areas for simplification in this amendment include the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. Management plans to adopt this ASU during the quarter ending September 2017. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Management plans to adopt this ASU during the quarter ending September 2018. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interests held through related parties that are under common control. The amendments in this ASU require that the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The amendments 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 in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. Management plans to adopt this ASU during the quarter ending September 2017. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management plans to adopt this ASU during the quarter ending September 2018. Management believes that the adoption of this ASU on the Company’s statement of cash flows will increase cash and cash equivalents by the amount of the restricted cash on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this ASU is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments 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 in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Management plans to adopt this ASU early after during the quarter ending September 2017. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. Management plans to adopt this ASU during the quarter ending September 2018. The adoption of this ASU would not have a material effect on the Company’s consolidated financial statements. In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the quarter ending September 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated financial statements. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Jun. 30, 2017 | |
Accounts receivable, net [Text Block] | Note 3 – Accounts receivable, net Accounts receivable, net consisted of the following: June 30, 2017 June 30, 2016 Accounts receivable $ 63,370,426 $ 51,812,683 Less: Allowance for doubtful accounts (15,827,349 ) (11,524,131 ) Total accounts receivable, net $ 47,543,077 $ 40,288,552 Movement of allowance for doubtful accounts is as follows: Year ended Year ended June 30, 2017 June 30, 2016 Beginning balance $ 11,524,131 $ 28,209,249 Provision for doubtful accounts 3,987,890 2,591,465 Less: write-off - (17,482,713 ) Exchange rate effect 315,328 (1,793,870 ) Ending balance $ 15,827,349 $ 11,524,131 During the years ended June 30, 2017 and 2016, the Company offset approximately $1.5 and $2.1 million of accounts receivable and accounts payable pursuant to certain three-party settlement agreements, respectively. |
Other receivables, net
Other receivables, net | 12 Months Ended |
Jun. 30, 2017 | |
Other receivables, net [Text Block] | Note 4 – Other receivables, net Other receivables Other receivables consisted of the following: June 30, 2017 June 30, 2016 Other receivables $ 1,653,351 $ 7,742,057 Other receivable from sale of Asset Group 18,867 1,685,645 Less: Allowance for doubtful accounts (1,432,095 ) (2,334,672 ) Total other receivables, net $ 240,123 $ 7,093,030 Movement of allowance for doubtful accounts is as follows: Year ended Year ended June 30, 2017 June 30, 2016 Beginning balance $ 2,334,672 $ 2,403,362 Provision for (recovery of) doubtful accounts (852,275 ) 129,212 Less: write-off - - Exchange rate effect (50,302 ) (197,902 ) Ending balance $ 1,432,095 $ 2,334,672 Other receivables from the sale of the Asset Group On February 29, 2016, the Company terminated an operating lease for its concrete plant in the eastern suburban area of Beijing because the plant was not operating at ideal capacity and the Company did not anticipate it would in the foreseeable future. The Company entered into an agreement with the lessor to terminate its operating lease, which was originally effective from August 18, 2013 to August 17, 2021, and for the sale of certain of the Company’s assets and liabilities (the “Asset Group”) at the leased location. Under the agreement, the carrying value of the Asset Group was determined to be RMB13.7 million (approximately $2.1 million), and was settled for RMB11.2 million (approximately $1.7 million). The Company recognized approximately $0.4 million loss from the sale of the Asset Group for the year ended June 30, 2016. As of June 30, 2017, the Company had received approximately $1.7 million, with an $18,867 balance outstanding to be paid by the lessor. In accordance with ASC 205, the Company did not report the sale of the Asset Group as discontinued operations as the sale of the Asset Group did not represent a strategic shift that had a major effect on the Company’s operations and financial results. |
Property, plants and equipment,
Property, plants and equipment, net | 12 Months Ended |
Jun. 30, 2017 | |
Property, plants and equipment, net [Text Block] | Note 5 – Property, plants and equipment, net Property, plants and equipment consist of the following: June 30, 2017 June 30, 2016 Machinery and equipment $ 896,326 $ 754,997 Transportation equipment 4,249,609 4,299,862 Office equipment 1,168,846 1,172,059 Buildings and improvements 308,636 314,909 Total 6,623,417 6,541,827 Less: Accumulated depreciation and amortization (2,979,214 ) (1,832,033 ) Plants and equipment, net $ 3,644,203 4,709,794 Depreciation and amortization expense for the years ended June 30, 2017 and 2016 amounted to approximately $1.2 million and $2.0 million, respectively. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Jun. 30, 2017 | |
Credit Facilities [Text Block] | Note 6 – Credit Facilities Short term loans - banks: Outstanding balances on short-term bank loans consisted of the following: June 30, 2017 June 30, 2016 Loans from China Construction Bank, each with an interest rate of 4.35% per annum, due September 2017 17,700,720 12,404,320 Loan from Bank of Beijing, with an interest rate of 5.66% per annum, due March 2017, guaranteed by Beijing - 4,515,120 $ 17,700,720 $ 16,555,440 Beijing Jinshengding Mineral Products Co., LTD is a supplier to the Company. Mr. Xianfu Han is the Company’s Chief Executive Officer. Chunying Wang is the spouse of Mr. Xianfu Han. Mr. Weili He is the Company’s Interim Chief Financial Officer. Ms. Junkun Chen is the spouse of Mr. Weili He. Also see Note 7 – Related party transactions. Interest expense was approximately $0.8 million for each of the years ended June 30, 2017 and 2016. In September, 2017, the Company obtained two short term bank loans totaling $5,206,962. Notes payable: The Company has an approximately $31 million (RMB210,000,000) credit facility from China Construction Bank (the “CCB Credit Facility”), which was extended in August 2017 through August 2018. Bank notes are issued under the CCB Credit Facility for inventory purchases. The notes payable are guaranteed by Beijing Jinshengding Mineral Products Co., LTD., Xianfu Han and his spouse, Chunying Wang, and Weili He and his spouse, Junkun Chen, and amounted to approximately $14.0 million and $13.2 million as of June 30, 2017 and 2016, respectively, and were non- interest bearing with expiration dates between July 2017 and December 2017. The notes are generally charged with a transaction fee of 0.1% of the notes amount. The restricted cash for the notes was approximately $4.2 million and $4.1 million as of June 30, 2017 and 2016, respectively. The Company’s availability under the CCB Credit Facility was $17 million as of June 30, 2017. In September 2017, the Company repaid $8,112,830 of notes payable. As of June 30, 2016, the Company had notes payable to the Bank of Beijing of approximately $4.9 million, which was repaid during the year ended June 30, 2017. |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2017 | |
Related party transactions [Text Block] | Note 7 – Related party transactions Prepayments - related party Mr. Xianfu Han, and Mr. Weili He, the Company’s shareholders and officers, are holding positions as president and director of Ningbo Lianlv Investment Ltd., respectively. This company owns 99% shares of Beijing Lianlv Technical Group Ltd. (“Beijing Lianly”), the Company’s supplier. As of June 30, 2017 and 2016, the Company prepaid $6,996,400 and $1,136,546 to Beijing Lianlv for inventory purchases, respectively. Other payables – shareholders Two shareholders have advanced funds to BVI-ACM for working capital purposes. The advances are non-interest bearing, unsecured, and are payable in cash on demand. These two shareholders are also officers of the Company. They and their spouses have also guaranteed certain short-term loans payable and notes payable of the Company (see Note 6). The other payables-shareholders balance also includes the Company’s salary payables to the two shareholders. Other payables - shareholders consisted of the following: June 30, 2017 June 30, 2016 Xianfu Han $ 1,070,535 $ 715,086 Weili He 1,191,231 776,039 $ 2,261,766 $ 1,491,125 As of June 30, 2017, the balance of other payables-shareholders includes $1,800,000 salary payable-shareholders and $461,766 loans payable-shareholders. As of June 30, 2016, the balance of other payables-shareholders incudes $1,200,000 salary payable-shareholders and $291,125 loans payable-shareholders. |
Income taxes
Income taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income taxes [Text Block] | Note 8 – Income taxes (a) Corporate income tax China ACM is organized in the United States. China ACM had no taxable income for United States income tax purposes for the years ended June 30, 2017 and 2016, respectively. China ACM’s net operating loss for the year ended June 30, 2017, amounted to approximately $0.3 million. As of June 30, 2017, China ACM’s net operating loss carry forward for United States income taxes was approximately $0.7 million. The net operating loss carry forward are available to reduce future years’ taxable income through year 2037. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s operating history and continued losses in the United States. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset to reduce the asset to zero. Management reviews this valuation allowance periodically and makes changes accordingly. BVI-ACM is incorporated in the British Virgin Islands (“BVI”), where its income tax rate is 0% under current BVI law. China-ACMH and VIE-Chinese operations China-ACMH and Xin Ao are governed by the income tax laws of the PRC. Income tax provisions with respect to operations in the PRC are calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Chinese Enterprise Income Tax (“EIT”) law, the statutory corporate income tax rate applicable to most companies is 25%. In 2009, Xin Ao applied and received an Enterprise High-Tech Certificate. The High-Tech Certificate was required to be renewed every 3 years. The certificate was awarded based on Xin Ao’s involvement in producing high-tech products, its research and development, as well as its technical services. As granted by the State Administration of Taxation of the PRC, Xin Ao is entitled to a reduction in its income tax rate from 25% to 15% until 2018. The EIT Law imposes a 10% withholding income tax, subject to reduction based on tax treaties where applicable, for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. Such dividends were exempted from PRC tax under the previous income tax law and regulations. The Company intends to permanently reinvest undistributed earnings of its Chinese operations located in the PRC. As a result, there is no deferred tax expense related to withholding tax on the future repatriation of these earnings. Loss before provision for income taxes consisted of: Years ended June 30, 2017 2016 USA and BVI $ (1,352,589 ) $ (1,556,270 ) PRC (8,418,238 ) (12,504,769 ) $ (9,770,827 ) $ (14,061,039 ) Significant components of deferred tax assets were as follows: June 30, 2017 June 30, 2016 Deferred tax assets Allowance for doubtful accounts $ 5,618,514 $ 5,169,993 Impairment loss of long-lived assets 393,673 393,673 Net operating loss carryforward in China 159,080 975,894 Net operating loss carryforward in the U.S. 238,650 217,020 Valuation allowance (6,409,917 ) (6,756,580 ) Total deferred tax assets $ - $ - As of June 30, 2017 and 2016, the Company believes it is more likely than not that its PRC operations will be unable to fully utilize its deferred tax assets related to its allowance for doubtful accounts, impairment loss of long-lived assets and the net operating loss carryforward in the PRC. If the Company continues to incur losses in its PRC operations, it is more likely than not that it will not have sufficient income to utilize its deferred tax assets. As of June 30, 2017, the Company has a net operating loss carry forward in the PRC that expires in 2021. As a result, the Company provided a 100% allowance on all deferred tax assets of approximately $6.2 million and $6.5 million related to its operations in the PRC as of June 30, 2017 and 2016, respectively. The Company has incurred losses from its United States operations during all periods presented. Accordingly, management provided approximately $0.2 million and $0.2 million of valuation allowance against the deferred tax assets related to the Company’s United States operations as of June 30, 2017 and 2016, respectively, because the deferred tax benefits of the net operating loss carry forward in the United States might not be utilized. The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the years ended June 30, 2017 and 2016. June 30, June 30, 2017 2016 U.S. statutory rates 34% 34% Foreign income not recognized in the U.S. (34% ) (34% ) PRC statutory rates 25% 25% Preferential tax treatment (10% ) (10% ) Change in valuation allowance (4% ) (27% ) Other* (11% ) - Effective income tax rates (0% ) (12% ) *This represents the expenses incurred by the Company that are not subject to PRC income taxes during the years. As of June 30, 2017 and 2016, the Company had $103,419 and $95,708 of other business tax payables, respectively. (b) Uncertain tax positions There were no uncertain tax positions as of June 30, 2017 and 2016. Management does not anticipate any potential future adjustments which would result in a material change to its tax positions. For the years ended June 30, 2017 and 2016, the Company did not incur any tax related interest or penalties. |
Shareholders equity
Shareholders equity | 12 Months Ended |
Jun. 30, 2017 | |
Shareholders equity [Text Block] | Note 9 – Shareholders’ equity Restricted Stock Grants Restricted stock grants are measured based on the market price on the grant date. The Company has granted restricted shares of common stock to the members of the board of directors (the “Board”), senior management and consultants. Effective August 20, 2016, the Board granted an aggregate of 106,859 shares of restricted common stock, which were issued with a fair value of $308,823 to a consultant under the 2009 Plan. These shares shall vest in two tranches upon achieving certain performance-based milestones. As of June 30, 2017, these shares have not vested and the performance-based milestones have not been determined by the Board. Effective August 20, 2016, the Board granted an aggregate of 100,000 shares of restricted common stock, which were issued with a fair value of $289,000 to two employees under the 2009 Plan. These shares vested immediately upon grant. For the years ended June 30, 2017 and 2016, the Company recognized approximately $0.3 million and $0.5 million, respectively, of compensation expense related to restricted stock grants. Following is a summary of the restricted stock grants: Weighted Average Aggregate Grant Date Intrinsic Restricted stock grants Shares Fair Value Per Share Value Unvested as of June 30, 2016 - $ - $ - Granted 206,859 $ 2.89 $ 597,823 Vested (100,000 ) $ 2.89 $ 289,000 Unvested as of June 30, 2017 106,859 $ 2.89 $ 308,823 |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Jun. 30, 2017 | |
Earnings (loss) per share [Text Block] | Note 10 – Earnings (loss) per share The following is a reconciliation of the basic and diluted earnings per share computation for the periods ended: Years ended June 30, 2017 2016 Net loss for loss per share $ (9,770,827 ) $ (15,806,014 ) Weight average shares used in basic computation 2,266,826 2,180,799 Diluted effect of unvested restricted stock - - Weight average shares used in diluted computation 2,266,826 2,180,799 Loss per share: Basic $ (4.31 ) $ (7.25 ) Diluted $ (4.31 ) $ (7.25 ) For the years ended June 30, 2017 and 2016, all outstanding unvested restricted stock was included in the calculation of diluted earnings per share and diluted loss per share is the same as basic loss per share since the addition of any contingently issuable shares would be anti-dilutive. |
Reserves and dividends
Reserves and dividends | 12 Months Ended |
Jun. 30, 2017 | |
Reserves and dividends [Text Block] | Note 11 – Reserves and dividends The laws and regulations of the PRC require that before a foreign invested enterprise can legally distribute profits, it must first satisfy all its tax liabilities, provide for losses in previous years, and make allocations, in proportions determined at the discretion of the board of directors, after setting aside statutory reserves. Statutory reserves include the surplus reserve fund and the common welfare fund. The Company is required to transfer 10% of its net income, as determined in accordance with the PRC accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the Company’s registered capital. As of June 30, 2016, the remaining reserve to fulfill the 50% registered capital requirement amounted to $1.9 million. As of June 30, 2017, the remaining capital reserve amount was reduced to approximately $0.8 million after the dissolution of Heng Yuan Zheng Ke, Hong Sheng An, Heng Tai, Da Tong, and Heng Xin. Transfers to statutory reserves must be made before the distribution of any dividends to the Company’s shareholders. The surplus reserve fund is non-distributable other than during liquidation. The surplus reserve fund can however be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. The PRC government restricts distributions of registered capital and the additional investment amounts required by foreign invested enterprises. Approval by the PRC government must be obtained before distributions of these amounts can be returned to the shareholders. |
Employee post-retirement benefi
Employee post-retirement benefits | 12 Months Ended |
Jun. 30, 2017 | |
Employee post-retirement benefits [Text Block] | Note 12 – Employee post-retirement benefits The Company offers a defined contribution plan to eligible employees which consists of two parts: (i) the first part, paid by the Company, is 20% of the employee’s compensation from the prior year and (ii) the second part, paid by the employee, is 8% of the employee’s compensation. The Company’s contributions of employment benefits were approximately $0.7 million for each of the years ended June 30, 2017 and 2016. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and contingencies [Text Block] | Note 13 – Commitments and contingencies Lease Commitments The Company has a lease agreement for a concrete service plant with an unrelated party which will expire on September 30, 2022, with annual payments of approximately $414,000. The Company has a lease agreement for roadway access to the west side entry of the concrete service plant with an unrelated party, which will expire on June 30, 2019, with annual payment of approximately $15,000. The Company has a lease agreement for office space from Mr. Weili He, the Company’s Interim Chief Financial Officer, through October 31, 2018, with annual payments of approximately $24,000. Operating lease expenses are allocated between the cost of revenue and selling, general, and administrative expenses. Total operating lease expenses for the years ended June 30, 2017 and 2016 were approximately $0.2 million and $0.6 million, respectively. Future annual lease payments under non-cancelable operating leases with a term of one year or more consist of the following: Twelve months ending June 30, Amount 2018 $ 399,000 2019 437,000 2020 414,000 2021 414,000 2022 414,000 thereafter 104,000 Total $ 2,182,000 Legal Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. |
Concentrations of risk
Concentrations of risk | 12 Months Ended |
Jun. 30, 2017 | |
Concentrations of risk [Text Block] | Note 14 - Concentrations of risk Credit risk The Company is exposed to credit risk from its cash in bank and fixed deposits, and accounts and notes receivable, other receivables and advances on equipment purchases. As of June 30, 2017 and 2016, $4,433,444 and $5,104,591 were deposited with a bank located in the PRC, respectively. These balances are not covered by insurance. While management believes that the credit risk on cash in bank and fixed deposits is limited because the counterparties are recognized financial institutions. Accounts and notes receivable, other receivables and advances on inventory purchases are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. Customer concentration risk For the year ended June 30, 2017, the Company had one customer accounted for approximately 12.0% of total revenue. For the year ended June 30, 2016, no customer accounted for more than 10% of total revenue. As of June 30, 2017 and 2016, no customer accounted for more than 10% of the total balance of accounts receivable. For the year ended June 30, 2017, the Company had one vendor representing approximately 19% of total purchases. For the year ended June 30, 2016, no vendor accounted for more than 10% of total purchases. As of June 30, 2017, no vendor accounted for more than 10% of the total balance of accounts payable. As of June 30, 2016, one vendor accounted for approximately 11% of total balance of accounts payable. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Liquidity [Policy Text Block] | Liquidity In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. The Company engages in the production of advanced construction materials for large scale infrastructure, commercial and residential developments. The Company’s business is capital intensive and the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties and bank acceptance notes have been utilized to finance the working capital requirements and the capital expenditures of the Company. Due to recurring losses, the Company’s working capital was approximately $7.5 million as of June 30, 2017, as compared to $16.4 million as of June 30, 2016. As of June 30, 2017, the Company had cash on-hand of approximately $0.2 million and restricted cash balances of approximately $4.2 million, with remaining current assets mainly composed of accounts receivables and prepayments and advances. Although the Company believes that it can realize its current assets in the normal course of business, the Company’s ability to repay its current obligations will depend on the future realization of its current assets. Management has considered its historical experience, the economic environment, trends in the construction industry, the expected collectability of its accounts receivable and other receivables and the realization of the prepayments on inventory, and provided for an allowance for doubtful accounts as of June 30, 2017. The Company expects to realize the balance of its current assets net of the allowance for doubtful accounts within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company may have to consider supplementing its available sources of funds through the following: • Financial support and credit guarantee commitments from the Company’s majority shareholders (See Note 7 - Related party transactions). • Other available sources of financing from PRC banks and other financial institutions, given the Company’s credit history. Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s working capital requirements and debt obligations as they become due. However, there is no assurance that management will be successful in their plans. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as changes in the demand for the Company’s products, economic conditions, competitive pricing in the concrete-mix industry, the Company’s operating results continuing to deteriorate, or the inability of the Company’s bank and shareholders to provide continued financial support. |
Basis of presentation [Policy Text Block] | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements include the accounts of all the directly and indirectly owned subsidiaries and VIEs listed below. All material intercompany transactions and balances have been eliminated in consolidation. |
Principles of consolidation [Policy Text Block] | Principles of consolidation The consolidated financial statements reflect the activities of the following subsidiaries and VIEs. All material intercompany transactions have been eliminated. Ownership Subsidiaries and VIEs Place incorporated percentage BVI-ACM British Virgin Island 100% China-ACMH Beijing, China 100% Xin Ao Beijing, China VIE Heng Yuan Zheng Ke 3 Beijing, China VIE Hong Sheng An 2 Beijing, China VIE Heng Tai 4 Beijing, China VIE Da Tong 1 Datong, China VIE Heng Xin 2 Luanxian, China VIE 1 2 3 4 VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIEs. The primary beneficiary is required to consolidate the VIEs for financial reporting purposes. Management makes ongoing assessments of whether China ACM is the primary beneficiary of Xin Ao. Based upon a series of contractual arrangements, the Company determined that Xin Ao is a VIE subject to consolidation and that China ACM is the primary beneficiary. Accordingly, the accounts of Xin Ao are consolidated with those of China ACM. The carrying amount of the VIE’s assets and liabilities are as follows: June 30, June 30, 2017 2016 Current assets $ 76,607,089 $ 90,518,451 Property, plants and equipment 3,644,203 4,709,794 Total assets 80,251,292 95,228,245 Liabilities (66,612,148 ) (72,579,677 ) Intercompany payables* (7,088,094 ) (7,355,650 ) Total liabilities (73,700,242 ) (79,935,327 ) Net assets $ 6,551,050 $ 15,292,918 * Payables to China-ACMH and BVI-ACM have been eliminated upon consolidation. |
Use of estimates and assumptions [Policy Text Block] | Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s consolidated financial statements include allowance for doubtful accounts, deferred income taxes, prepayments and advances, stock-based compensation, and fair value and useful lives of property, plant and equipment. Actual results could be materially different from those estimates. |
Foreign currency translation [Policy Text Block] | Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of China ACM and BVI-ACM is the U.S. dollar. China-ACMH and Xin Ao use their local currency Chinese Renminbi (“RMB”) as their functional currency. In accordance with the US GAAP guidance on Foreign Currency Translation, the Company’s results of operations and cash flows are translated at the average exchange rates during the period, assets and liabilities are translated at the exchange rates at the balance sheet dates, and equity is translated at historical exchange rates. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Asset and liability accounts at June 30, 2017 and 2016, were translated at RMB6.78 and RMB6.64 to $1.00, respectively. The average translation rates applied to the consolidated statements of operations and comprehensive loss and cash flows for the years ended June 30, 2017 and 2016 were RMB6.81 and RMB6.43 to $1.00, respectively. Translation gains (losses) that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations. There were no foreign currency transaction gains or losses for each of the years ended June 30, 2017 and 2016. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive income. |
Revenue recognition [Policy Text Block] | Revenue recognition Revenue is realized or realizable and earned when four criteria are met: • Persuasive evidence of an arrangement exists (the Company considers its sales contracts to be pervasive evidence of an arrangement); • Delivery has occurred; • The seller’s price to the buyer is fixed or determinable; and • Collectability of payment is reasonably assured. The Company sells its concrete products primarily to major local construction companies. Sales agreements are signed with each customer. The agreements list all terms and conditions with the exception of delivery date and quantity, which are evidenced separately in purchase orders. The purchase price of products is fixed in the agreement and customers are not permitted to renegotiate after the contracts have been signed. The agreements include a cancellation clause if the Company or customers breach the contract terms specified in the agreement. The Company recognizes revenue when title and ownership of the goods are transferred upon shipment to the customer by the Company and collectability of payment is reasonably assured. The Company includes the shipping and handling fee in both revenue and cost of revenue. |
Financial instruments [Policy Text Block] | Financial instruments US GAAP, regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3 inputs to the valuation methodology are unobservable. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Cash and cash equivalents [Policy Text Block] | Cash and cash equivalents The Company considers all highly liquid investments with the original maturity of three months or less at the date of purchase to be cash equivalents. The Company currently maintains substantially all of its day-to-day operating cash balances with major financial institutions within the PRC and the United States. As of June 30, 2017 and 2016, the Company had deposits in excess of federally insured limits totaling approximately $0.2 million and $0.9 million, respectively, in the PRC. |
Restricted cash [Policy Text Block] | Restricted cash As of June 30, 2017 and 2016, restricted cash consisted of collateral representing cash deposits for bank guarantees and notes payable. |
Accounts receivable [Policy Text Block] | Accounts receivable The Company extends unsecured credit to its customers in the normal course of business. Accounts are considered past due after 30 days. In establishing the required allowance for doubtful accounts, management considers historical experience, the economic environment, trends in the construction industry and the expected collectability of the overdue receivables. Management reviews its accounts receivable each reporting period to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is recorded when collection of the full amount is no longer probable. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovering is considered remote. The Company provides a provision of 15% of the allowance for doubtful accounts for accounts receivable balance that are past due more than 180 days but less than one year, 40% of the allowance for doubtful accounts for accounts receivable past due from one to two years, 75% of the allowance for doubtful accounts for accounts receivable past due beyond two years, 100% of the allowance for doubtful accounts for accounts receivable past due beyond three years, plus additional amounts as necessary when the Company’s collection department determines the collection of the full amount is remote and the Company’s management approves 100% of the allowance for doubtful accounts. The Company’s management has continued to evaluate the reasonableness of the valuation allowance policy and will update it if necessary. |
Inventories [Policy Text Block] | Inventories Inventories consist of raw materials and are stated at the lower of cost or market, as determined using the weighted average cost method. Management compares the cost of inventories with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost. As of June 30, 2017 and 2016, the Company determined that no reserves for obsolescence were necessary. |
Other receivables [Policy Text Block] | Other receivables Other receivables primarily include prepayments to be refunded by our suppliers if the supplies do not meet the Company’s specification needs, advances to employees, amounts due from unrelated entities, VAT tax refunds and other deposits. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectible are written off against allowances after exhaustive efforts at collection are made. The Company provides a provision of 5% of the allowance for doubtful accounts for other receivables balance that are aged within one year, 50% of the allowance for doubtful accounts for other receivables aged from one to two years, and 100% of the allowance for doubtful accounts for other receivables aged beyond two years. |
Prepayments and advances [Policy Text Block] | Prepayments and advances Prepayments are funds deposited or advanced to outside vendors for future inventory purchases. As is standard practice in the PRC, many of the Company’s vendors require a certain amount to be deposited with them as a guarantee that the Company will complete its purchases on a timely basis. This amount is refundable and bears no interest. The Company has legally binding contracts with its vendors, which require any outstanding prepayments to be returned to the Company when such contracts end. The Company wrote off $0.2 million and $0 on unrealizable prepayments for the years ended June 30, 2017 and 2016, respectively. |
Property, plant and equipment [Policy Text Block] | Property, plant and equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred while additions, renewals and improvements are capitalized. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method with a 5% residual value. Leasehold improvements are amortized over the lesser of estimated useful lives or lease terms, as appropriate. The estimated useful lives of assets are as follows: Useful life Transportation equipment 7 - 10 years Plants and machinery 10 years Office equipment 5 years Buildings and improvements 3 - 20 years |
Accounting for long-lived assets [Policy Text Block] | Accounting for long-lived assets The Company classifies its long-lived assets into: (i) machinery and equipment; (ii) transportation equipment; (iii) office and equipment; and (iv) buildings and improvements. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technological or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. If the value of an asset is determined to be impaired, the impairment to be recognized is measured in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value, less disposition costs. Due to recurring losses, the deterioration of the concrete-mix industry in Beijing, PRC, and competitive pricing pressures, the Company has performed an impairment analysis and determined its long-lived assets were impaired during the year ended June 30, 2016. As a result, the Company recorded an impairment charge of $2.6 million for the year ended June 30, 2016. These charges were related to the impairment of the Company’s transportation equipment, plants and machinery. The loss was determined using Level 3 inputs. There were no impairment charges for the year ended June 30, 2017. Competitive pricing pressures and changes in interest rates could materially and adversely affect the Company’s estimates of future net cash flows to be generated by the long-lived assets, and thus could result in future impairment losses. |
Stock-based compensation [Policy Text Block] | Stock-based compensation The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee's requisite service period. The Company’s expected volatility assumption is based on the historical volatility of Company’s stock. The expected life assumption is primarily based on historical exercise patterns and employee post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based on the Company’s current and expected dividend policy. |
Income taxes [Policy Text Block] | Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. ASC 740-10, “Accounting for Uncertainty in Income Taxes,” defines uncertainty in income taxes and the evaluation of a tax position as a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. United States federal, state and local income tax returns prior to 2014 are not subject to examination by any applicable tax authorities. |
Value Added Tax [Policy Text Block] | Value Added Tax Enterprises or individuals who sell commodities, engage in repair and maintenance, or import and export goods in the PRC are subject to a value added tax. The standard VAT rate for the Company’s industry is 3% of gross sales, and revenues are presented net of VAT. |
Research and development [Policy Text Block] | Research and development Research and development costs are expensed as incurred. The cost of materials and equipment that are acquired or constructed for research and development activities, and have alternative future uses, either in research and development, marketing, or sales, are classified as property and equipment, and depreciated over their estimated useful lives. |
Earnings (loss) per share [Policy Text Block] | Earnings (loss) per share The Company reports earnings (losses) per share in accordance with the US GAAP, which requires presentation of basic and diluted earnings (losses) per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings (losses) per share excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts, such as warrants, options, restricted stock based grants and convertible preferred stock, to issue common stock were exercised and converted into common stock. Common stock equivalents having an anti-dilutive effect on earnings per share are excluded from the calculation of diluted earnings per share. Stock dividends or stock splits are to be accounted for retroactively if the stock dividends or stock splits occur during the period, or retroactively if the stock dividends or stock splits occur after the end of the period but before the release of the financial statements, by considering it outstanding of the entirety of each period presented. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. |
Comprehensive income (loss) [Policy Text Block] | Comprehensive income (loss) Comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (ASU) No., 2016-09, Compensation-Stock Options (Topic 718): Improvements to Employee Share-Based Payment Accounting. The areas for simplification in this amendment include the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. Management plans to adopt this ASU during the quarter ending September 2017. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Management plans to adopt this ASU during the quarter ending September 2018. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interests held through related parties that are under common control. The amendments in this ASU require that the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The amendments 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 in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. Management plans to adopt this ASU during the quarter ending September 2017. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management plans to adopt this ASU during the quarter ending September 2018. Management believes that the adoption of this ASU on the Company’s statement of cash flows will increase cash and cash equivalents by the amount of the restricted cash on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this ASU is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments 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 in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Management plans to adopt this ASU early after during the quarter ending September 2017. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. Management plans to adopt this ASU during the quarter ending September 2018. The adoption of this ASU would not have a material effect on the Company’s consolidated financial statements. In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the quarter ending September 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. |
Reclassifications [Policy Text Block] | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated financial statements. |
Summary of significant accoun22
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Ownership of Subsidiaries and VIE's [Table Text Block] | Ownership Subsidiaries and VIEs Place incorporated percentage BVI-ACM British Virgin Island 100% China-ACMH Beijing, China 100% Xin Ao Beijing, China VIE Heng Yuan Zheng Ke 3 Beijing, China VIE Hong Sheng An 2 Beijing, China VIE Heng Tai 4 Beijing, China VIE Da Tong 1 Datong, China VIE Heng Xin 2 Luanxian, China VIE |
Schedule of carrying amount of the VIE's assets and liabilities [Table Text Block] | June 30, June 30, 2017 2016 Current assets $ 76,607,089 $ 90,518,451 Property, plants and equipment 3,644,203 4,709,794 Total assets 80,251,292 95,228,245 Liabilities (66,612,148 ) (72,579,677 ) Intercompany payables* (7,088,094 ) (7,355,650 ) Total liabilities (73,700,242 ) (79,935,327 ) Net assets $ 6,551,050 $ 15,292,918 |
Schedule of Estimated Useful Lives of Assets [Table Text Block] | Useful life Transportation equipment 7 - 10 years Plants and machinery 10 years Office equipment 5 years Buildings and improvements 3 - 20 years |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2017 June 30, 2016 Accounts receivable $ 63,370,426 $ 51,812,683 Less: Allowance for doubtful accounts (15,827,349 ) (11,524,131 ) Total accounts receivable, net $ 47,543,077 $ 40,288,552 |
Schedule of Allowance for Doubtful Accounts [Table Text Block] | Year ended Year ended June 30, 2017 June 30, 2016 Beginning balance $ 11,524,131 $ 28,209,249 Provision for doubtful accounts 3,987,890 2,591,465 Less: write-off - (17,482,713 ) Exchange rate effect 315,328 (1,793,870 ) Ending balance $ 15,827,349 $ 11,524,131 |
Other receivables, net (Tables)
Other receivables, net (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Other Receivables and Allowance for Doubtful Accounts [Table Text Block] | June 30, 2017 June 30, 2016 Other receivables $ 1,653,351 $ 7,742,057 Other receivable from sale of Asset Group 18,867 1,685,645 Less: Allowance for doubtful accounts (1,432,095 ) (2,334,672 ) Total other receivables, net $ 240,123 $ 7,093,030 |
Schedule of Movement of Allowance for Doubtful Accounts [Table Text Block] | Year ended Year ended June 30, 2017 June 30, 2016 Beginning balance $ 2,334,672 $ 2,403,362 Provision for (recovery of) doubtful accounts (852,275 ) 129,212 Less: write-off - - Exchange rate effect (50,302 ) (197,902 ) Ending balance $ 1,432,095 $ 2,334,672 |
Property, plants and equipmen25
Property, plants and equipment, net (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Property, Plant and Equipment [Table Text Block] | June 30, 2017 June 30, 2016 Machinery and equipment $ 896,326 $ 754,997 Transportation equipment 4,249,609 4,299,862 Office equipment 1,168,846 1,172,059 Buildings and improvements 308,636 314,909 Total 6,623,417 6,541,827 Less: Accumulated depreciation and amortization (2,979,214 ) (1,832,033 ) Plants and equipment, net $ 3,644,203 4,709,794 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Short-term Debt [Table Text Block] | June 30, 2017 June 30, 2016 Loans from China Construction Bank, each with an interest rate of 4.35% per annum, due September 2017 17,700,720 12,404,320 Loan from Bank of Beijing, with an interest rate of 5.66% per annum, due March 2017, guaranteed by Beijing - 4,515,120 $ 17,700,720 $ 16,555,440 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Related Party Transactions [Table Text Block] | June 30, 2017 June 30, 2016 Xianfu Han $ 1,070,535 $ 715,086 Weili He 1,191,231 776,039 $ 2,261,766 $ 1,491,125 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Years ended June 30, 2017 2016 USA and BVI $ (1,352,589 ) $ (1,556,270 ) PRC (8,418,238 ) (12,504,769 ) $ (9,770,827 ) $ (14,061,039 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, 2017 June 30, 2016 Deferred tax assets Allowance for doubtful accounts $ 5,618,514 $ 5,169,993 Impairment loss of long-lived assets 393,673 393,673 Net operating loss carryforward in China 159,080 975,894 Net operating loss carryforward in the U.S. 238,650 217,020 Valuation allowance (6,409,917 ) (6,756,580 ) Total deferred tax assets $ - $ - |
Schedule of reconciles the U.S. statutory rates to the Companys effective tax rate [Table Text Block] | June 30, June 30, 2017 2016 U.S. statutory rates 34% 34% Foreign income not recognized in the U.S. (34% ) (34% ) PRC statutory rates 25% 25% Preferential tax treatment (10% ) (10% ) Change in valuation allowance (4% ) (27% ) Other* (11% ) - Effective income tax rates (0% ) (12% ) |
Shareholders equity (Tables)
Shareholders equity (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of the summary of Restricted stock grants [Table Text Block] | Weighted Average Aggregate Grant Date Intrinsic Restricted stock grants Shares Fair Value Per Share Value Unvested as of June 30, 2016 - $ - $ - Granted 206,859 $ 2.89 $ 597,823 Vested (100,000 ) $ 2.89 $ 289,000 Unvested as of June 30, 2017 106,859 $ 2.89 $ 308,823 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years ended June 30, 2017 2016 Net loss for loss per share $ (9,770,827 ) $ (15,806,014 ) Weight average shares used in basic computation 2,266,826 2,180,799 Diluted effect of unvested restricted stock - - Weight average shares used in diluted computation 2,266,826 2,180,799 Loss per share: Basic $ (4.31 ) $ (7.25 ) Diluted $ (4.31 ) $ (7.25 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Future annual lease payments [Table Text Block] | Twelve months ending June 30, Amount 2018 $ 399,000 2019 437,000 2020 414,000 2021 414,000 2022 414,000 thereafter 104,000 Total $ 2,182,000 |
Organization and description 32
Organization and description of business (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Organization And Description Of Business 1 | 100.00% |
Summary of significant accoun33
Summary of significant accounting policies (Narrative) (Details) - 12 months ended Jun. 30, 2017 | USD ($)d | CNY (¥)d |
Summary Of Significant Accounting Policies 1 | $ 7,500,000 | |
Summary Of Significant Accounting Policies 2 | 16,400,000 | |
Summary Of Significant Accounting Policies 3 | 200,000 | |
Summary Of Significant Accounting Policies 4 | 4,200,000 | |
Summary Of Significant Accounting Policies 5 | ¥ | ¥ 6.78 | |
Summary Of Significant Accounting Policies 6 | ¥ | 6.64 | |
Summary Of Significant Accounting Policies 7 | 1 | |
Summary Of Significant Accounting Policies 8 | ¥ | 6.81 | |
Summary Of Significant Accounting Policies 9 | ¥ | ¥ 6.43 | |
Summary Of Significant Accounting Policies 10 | 1 | |
Summary Of Significant Accounting Policies 11 | 200,000 | |
Summary Of Significant Accounting Policies 12 | $ 900,000 | |
Summary Of Significant Accounting Policies 13 | d | 30 | 30 |
Summary Of Significant Accounting Policies 14 | 15.00% | 15.00% |
Summary Of Significant Accounting Policies 15 | d | 180 | 180 |
Summary Of Significant Accounting Policies 16 | 40.00% | 40.00% |
Summary Of Significant Accounting Policies 17 | 75.00% | 75.00% |
Summary Of Significant Accounting Policies 18 | 100.00% | 100.00% |
Summary Of Significant Accounting Policies 19 | 100.00% | 100.00% |
Summary Of Significant Accounting Policies 20 | 5.00% | 5.00% |
Summary Of Significant Accounting Policies 21 | 50.00% | 50.00% |
Summary Of Significant Accounting Policies 22 | 100.00% | 100.00% |
Summary Of Significant Accounting Policies 23 | $ 200,000 | |
Summary Of Significant Accounting Policies 24 | $ 0 | |
Summary Of Significant Accounting Policies 25 | 5.00% | 5.00% |
Summary Of Significant Accounting Policies 26 | $ 2,600,000 | |
Summary Of Significant Accounting Policies 27 | 50.00% | 50.00% |
Summary Of Significant Accounting Policies 28 | 3.00% | 3.00% |
Accounts receivable, net (Narra
Accounts receivable, net (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Accounts Receivable, Net 1 | $ 1.5 |
Accounts Receivable, Net 2 | $ 2,100,000 |
Other receivables, net (Narrati
Other receivables, net (Narrative) (Details) - 12 months ended Jun. 30, 2017 ¥ in Millions | USD ($) | CNY (¥) |
Other Receivables, Net 1 | ¥ | ¥ 13.7 | |
Other Receivables, Net 2 | $ 2,100,000 | |
Other Receivables, Net 3 | ¥ | ¥ 11.2 | |
Other Receivables, Net 4 | 1,700,000 | |
Other Receivables, Net 5 | 400,000 | |
Other Receivables, Net 6 | 1,700,000 | |
Other Receivables, Net 7 | $ 18,867 |
Property, plants and equipmen36
Property, plants and equipment, net (Narrative) (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Property, Plants And Equipment, Net 1 | $ 1.2 |
Property, Plants And Equipment, Net 2 | $ 2 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | |
Credit Facilities 1 | $ 800,000 | |
Credit Facilities 2 | 5,206,962 | |
Credit Facilities 3 | 31,000,000 | |
Credit Facilities 4 | ¥ | ¥ 210,000,000 | |
Credit Facilities 5 | 14,000,000 | |
Credit Facilities 6 | $ 13,200,000 | |
Credit Facilities 7 | 0.10% | 0.10% |
Credit Facilities 8 | $ 4,200,000 | |
Credit Facilities 9 | 4,100,000 | |
Credit Facilities 10 | 17,000,000 | |
Credit Facilities 11 | 8,112,830 | |
Credit Facilities 12 | $ 4,900,000 |
Related party transactions (Nar
Related party transactions (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Related Party Transactions 1 | 99.00% |
Related Party Transactions 2 | $ 6,996,400 |
Related Party Transactions 3 | 1,136,546 |
Related Party Transactions 4 | 1,800,000 |
Related Party Transactions 5 | 461,766 |
Related Party Transactions 6 | 1,200,000 |
Related Party Transactions 7 | $ 291,125 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($)yr | |
Income Taxes 1 | $ 300,000 |
Income Taxes 2 | $ 700,000 |
Income Taxes 3 | 100.00% |
Income Taxes 4 | 0.00% |
Income Taxes 5 | 25.00% |
Income Taxes 6 | yr | 3 |
Income Taxes 7 | 25.00% |
Income Taxes 8 | 15.00% |
Income Taxes 9 | 10.00% |
Income Taxes 10 | 100.00% |
Income Taxes 11 | $ 6,200,000 |
Income Taxes 12 | 6,500,000 |
Income Taxes 13 | 200,000 |
Income Taxes 14 | 200,000 |
Income Taxes 15 | 103,419 |
Income Taxes 16 | $ 95,708 |
Shareholders equity (Narrative)
Shareholders equity (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($)shares | |
Shareholders Equity 1 | shares | 106,859 |
Shareholders Equity 2 | $ 308,823 |
Shareholders Equity 3 | shares | 100,000 |
Shareholders Equity 4 | $ 289,000 |
Shareholders Equity 5 | 300,000 |
Shareholders Equity 6 | $ 500,000 |
Reserves and dividends (Narrati
Reserves and dividends (Narrative) (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Reserves And Dividends 1 | 10.00% |
Reserves And Dividends 2 | 50.00% |
Reserves And Dividends 3 | 50.00% |
Reserves And Dividends 4 | $ 1.9 |
Reserves And Dividends 5 | $ 0.8 |
Reserves And Dividends 6 | 25.00% |
Employee post-retirement bene42
Employee post-retirement benefits (Narrative) (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Employee Post-retirement Benefits 1 | 20.00% |
Employee Post-retirement Benefits 2 | 8.00% |
Employee Post-retirement Benefits 3 | $ 0.7 |
Commitments and contingencies43
Commitments and contingencies (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Commitments And Contingencies 1 | $ 414,000 |
Commitments And Contingencies 2 | 15,000 |
Commitments And Contingencies 3 | 24,000 |
Commitments And Contingencies 4 | 200,000 |
Commitments And Contingencies 5 | $ 600,000 |
Concentrations of risk (Narrati
Concentrations of risk (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Concentrations Of Risk 1 | $ 4,433,444 |
Concentrations Of Risk 2 | $ 5,104,591 |
Concentrations Of Risk 3 | 12.00% |
Concentrations Of Risk 4 | 10.00% |
Concentrations Of Risk 5 | 10.00% |
Concentrations Of Risk 6 | 19.00% |
Concentrations Of Risk 7 | 10.00% |
Concentrations Of Risk 8 | 10.00% |
Concentrations Of Risk 9 | 11.00% |
Schedule of Ownership of Subsid
Schedule of Ownership of Subsidiaries and VIE's (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 1 | 100.00% |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 2 | 100.00% |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 3 | $ 3 |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 4 | 2 |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 5 | 4 |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 6 | 1 |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 7 | $ 2 |
Schedule of carrying amount of
Schedule of carrying amount of the VIE's assets and liabilities (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 1 | $ 76,607,089 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 2 | 90,518,451 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 3 | 3,644,203 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 4 | 4,709,794 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 5 | 80,251,292 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 6 | 95,228,245 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 7 | (66,612,148) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 8 | (72,579,677) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 9 | (7,088,094) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 10 | (7,355,650) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 11 | (73,700,242) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 12 | (79,935,327) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 13 | 6,551,050 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 14 | $ 15,292,918 |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Jun. 30, 2017USD ($)yr | |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Assets 1 | $ | $ 7 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Assets 2 | 10 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Assets 3 | 10 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Assets 4 | 5 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Assets 5 | $ | $ 3 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Assets 6 | 20 |
Schedule of Accounts, Notes, Lo
Schedule of Accounts, Notes, Loans and Financing Receivable (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 1 | $ 63,370,426 |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 2 | 51,812,683 |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 3 | (15,827,349) |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 4 | (11,524,131) |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 5 | 47,543,077 |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 6 | $ 40,288,552 |
Schedule of Allowance for Doubt
Schedule of Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 1 | $ 11,524,131 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 2 | 28,209,249 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 3 | 3,987,890 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 4 | 2,591,465 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 5 | 0 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 6 | (17,482,713) |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 7 | 315,328 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 8 | (1,793,870) |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 9 | 15,827,349 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 10 | $ 11,524,131 |
Schedule of Other Receivables a
Schedule of Other Receivables and Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 1 | $ 1,653,351 |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 2 | 7,742,057 |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 3 | 18,867 |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 4 | 1,685,645 |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 5 | (1,432,095) |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 6 | (2,334,672) |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 7 | 240,123 |
Other Receivables, Net Schedule Of Other Receivables And Allowance For Doubtful Accounts 8 | $ 7,093,030 |
Schedule of Movement of Allowan
Schedule of Movement of Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 1 | $ 2,334,672 |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 2 | 2,403,362 |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 3 | (852,275) |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 4 | 129,212 |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 5 | 0 |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 6 | 0 |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 7 | (50,302) |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 8 | (197,902) |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 9 | 1,432,095 |
Other Receivables, Net Schedule Of Movement Of Allowance For Doubtful Accounts 10 | $ 2,334,672 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 1 | $ 896,326 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 2 | 754,997 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 3 | 4,249,609 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 4 | 4,299,862 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 5 | 1,168,846 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 6 | 1,172,059 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 7 | 308,636 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 8 | 314,909 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 9 | 6,623,417 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 10 | 6,541,827 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 11 | (2,979,214) |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 12 | (1,832,033) |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 13 | 3,644,203 |
Property, Plants And Equipment, Net Schedule Of Property, Plant And Equipment 14 | $ 4,709,794 |
Schedule of Short-term Debt (De
Schedule of Short-term Debt (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Credit Facilities Schedule Of Short-term Debt 1 | 4.35% |
Credit Facilities Schedule Of Short-term Debt 2 | $ 17,700,720 |
Credit Facilities Schedule Of Short-term Debt 3 | $ 12,404,320 |
Credit Facilities Schedule Of Short-term Debt 4 | 5.66% |
Credit Facilities Schedule Of Short-term Debt 5 | $ 0 |
Credit Facilities Schedule Of Short-term Debt 6 | 4,515,120 |
Credit Facilities Schedule Of Short-term Debt 7 | 17,700,720 |
Credit Facilities Schedule Of Short-term Debt 8 | $ 16,555,440 |
Schedule of Related Party Trans
Schedule of Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Related Party Transactions Schedule Of Related Party Transactions 1 | $ 1,070,535 |
Related Party Transactions Schedule Of Related Party Transactions 2 | 715,086 |
Related Party Transactions Schedule Of Related Party Transactions 3 | 1,191,231 |
Related Party Transactions Schedule Of Related Party Transactions 4 | 776,039 |
Related Party Transactions Schedule Of Related Party Transactions 5 | 2,261,766 |
Related Party Transactions Schedule Of Related Party Transactions 6 | $ 1,491,125 |
Schedule of Income before Incom
Schedule of Income before Income Tax, Domestic and Foreign (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 1 | $ (1,352,589) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 2 | (1,556,270) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 3 | (8,418,238) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 4 | (12,504,769) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 5 | (9,770,827) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 6 | $ (14,061,039) |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 1 | $ 5,618,514 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 2 | 5,169,993 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 3 | 393,673 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 4 | 393,673 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 5 | 159,080 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 6 | 975,894 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 7 | 238,650 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 8 | 217,020 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 9 | (6,409,917) |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 10 | (6,756,580) |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 11 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 12 | $ 0 |
Schedule of reconciles the U.S.
Schedule of reconciles the U.S. statutory rates to the Companys effective tax rate (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 1 | 34.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 2 | 34.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 3 | (34.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 4 | (34.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 5 | 25.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 6 | 25.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 7 | (10.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 8 | (10.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 9 | (4.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 10 | (27.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 11 | (11.00%) |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 12 | $ 0 |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 13 | 0.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 14 | (12.00%) |
Schedule of the summary of Rest
Schedule of the summary of Restricted stock grants (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 1 | $ 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 2 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 3 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 4 | $ 206,859 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 5 | 2.89 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 6 | $ 597,823 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 7 | $ (100,000) |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 8 | 2.89 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 9 | $ 289,000 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 10 | $ 106,859 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 11 | 2.89 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 12 | $ 308,823 |
Schedule of Earnings Per Share,
Schedule of Earnings Per Share, Basic and Diluted (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 1 | $ (9,770,827) |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 2 | (15,806,014) |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 3 | 2,266,826 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 4 | 2,180,799 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 5 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 6 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 7 | 2,266,826 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 8 | $ 2,180,799 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 9 | (4.31) |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 10 | (7.25) |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 11 | (4.31) |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 12 | (7.25) |
Schedule of Future annual lease
Schedule of Future annual lease payments (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 1 | $ 399,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 2 | 437,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 3 | 414,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 4 | 414,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 5 | 414,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 6 | 104,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 7 | $ 2,182,000 |