Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Nov. 07, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Sino-Global Shipping America, Ltd. | |
Entity Central Index Key | 1,422,892 | |
Trading Symbol | SINO | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 13,575,535 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Current assets | ||
Cash | $ 987,031 | $ 7,098,259 |
Accounts receivable, less allowance for doubtful accounts of $2,635,206 and $1,682,228 as of September 30, 2018 and June 30, 2018, respectively | 11,200,914 | 8,428,853 |
Other receivables, less allowance for doubtful accounts of $145,231 and $145,176 as of September 30, 2018 and June 30, 2018, respectively | 47,274 | 69,239 |
Advances to suppliers-third parties | 1,492,091 | 704,878 |
Advances to suppliers-related party | 3,414,619 | |
Prepaid expenses | 453,858 | 588,439 |
Due from a related party | 1,361,330 | 2,087,994 |
Total Current Assets | 15,542,498 | 22,392,281 |
Property and equipment, net | 908,298 | 956,429 |
Intangible assets, net | 137,222 | 153,056 |
Prepaid expenses and other assets | 1,862,359 | 1,878,258 |
Other long-term assets - deposits | 3,053,182 | 143,303 |
Deferred tax assets, net | 829,000 | 634,500 |
Total Assets | 22,332,559 | 26,157,827 |
Current Liabilities | ||
Advances from customers | 170,239 | 415,385 |
Accounts payable | 470,720 | 3,225,661 |
Taxes payable | 2,658,947 | 2,700,619 |
Accrued expenses and other current liabilities | 429,864 | 280,888 |
Total current liabilities | 3,729,770 | 6,622,553 |
Total liabilities | 3,729,770 | 6,622,553 |
Commitments and Contingencies | ||
Equity | ||
Preferred stock, 2,000,000 shares authorized, no par value, none issued. | ||
Common stock, 50,000,000 shares authorized, no par value; 13,751,032 and 13,271,032 shares issued as of September 30, 2018 and June 30, 2018, respectively; 13,575,535 and 13,095,535 outstanding as of September 30, 2018 and June 30, 2018, respectively | 24,253,830 | 23,717,330 |
Additional paid-in capital | 2,036,281 | 1,755,573 |
Treasury stock, at cost,175,497 shares as of September 30, 2018 and June 30, 2018 | (417,538) | (417,538) |
Accumulated deficit | (1,751,618) | (434,856) |
Accumulated other comprehensive loss | (812,063) | (272,407) |
Total Sino-Global Shipping America Ltd. Stockholders' Equity | 23,308,892 | 24,348,102 |
Non-controlling Interest | (4,706,103) | (4,812,828) |
Total Equity | 18,602,789 | 19,535,274 |
Total Liabilities and Equity | $ 22,332,559 | $ 26,157,827 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,635,206 | $ 1,682,228 |
Other receivables, allowance for doubtful accounts | $ 145,231 | $ 145,176 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, par value | ||
Preferred stock, shares issued | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | ||
Common stock, shares issued | 13,751,032 | 13,271,032 |
Common stock, shares outstanding | 13,575,535 | 13,095,535 |
Treasury stock, shares | 175,497 | 175,497 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||
Net revenues - third parties | $ 6,177,533 | $ 4,814,851 |
Net revenues - related party | 322,000 | 565,160 |
Total revenues | 6,499,533 | 5,380,011 |
Cost of revenues | (5,083,832) | (3,665,918) |
Gross profit | 1,415,701 | 1,714,093 |
General and administrative expenses | (2,662,041) | (763,357) |
Selling expenses | (108,369) | (22,466) |
Total operating expenses | (2,770,410) | (785,823) |
Operating income (loss) | (1,354,709) | 928,270 |
Financial income, net | 712 | 84,796 |
Net income (loss) before provision for income taxes | (1,353,997) | 1,013,066 |
Income tax benefit (expense) | 66,466 | (296,429) |
Net income (loss) | (1,287,531) | 716,637 |
Net income attributable to non-controlling interest | 29,231 | 99,448 |
Net income (loss) attributable to Sino-Global Shipping America, Ltd. | (1,316,762) | 617,189 |
Comprehensive income (loss) | ||
Net income (loss) | (1,287,531) | 716,637 |
Other comprehensive income (loss) - foreign currency | (462,162) | 47,717 |
Comprehensive income (loss) | (1,749,693) | 764,354 |
Less: Comprehensive income attributable to non-controlling interest | 106,725 | 40,747 |
Comprehensive income (loss) attributable to Sino-Global Shipping America Ltd. | $ (1,856,418) | $ 723,607 |
Earnings (loss) per share | ||
Basic | $ (0.1) | $ 0.07 |
Diluted | $ (0.1) | $ 0.07 |
Weighted average number of common shares used in computation | ||
Basic | 13,145,535 | 10,105,535 |
Diluted | 13,145,535 | 10,157,625 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activitities | ||
Net income (loss) | $ (1,287,531) | $ 716,637 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation - employess | 473,000 | |
Stock-based compensation - consultants | 63,500 | 52,709 |
Amortization of stock - based compensation to management and employees | 91,000 | 9,665 |
Amortization of stock - based compensation to consultants | 189,708 | |
Depreciation and amortization | 25,715 | 13,203 |
Provision for (recovery of) doubtful accounts | 871,081 | (24,536) |
Deferred tax provision (benefit) | (194,500) | 99,900 |
Changes in assets and liabilities | ||
Accounts receivable | (3,709,059) | (1,711,154) |
Other receivables | 67,499 | (60,396) |
Advances to suppliers-third parties | (789,150) | 20,481 |
Advances to suppliers-related party | 3,322,210 | |
Prepaid expenses | (290,651) | (50,390) |
Other long-term assets - deposits | (2,510,665) | |
Due from related parties | 807,405 | (570,000) |
Advances from customers | (250,650) | 17,410 |
Accounts payable | (2,804,782) | 661,628 |
Taxes payable | (35,535) | 146,104 |
Due to related parties | (73,462) | |
Accrued expenses and other current liabilities | 122,962 | (68,288) |
Net cash used in operating activities | (5,838,443) | (820,489) |
Investing Activities | ||
Acquisition of property and equipment | (830) | (5,077) |
Net cash used in investing activities | (830) | (5,077) |
Effect of exchange rate fluctuations on cash | (271,955) | 19,210 |
Net decrease in cash | (6,111,228) | (806,356) |
Cash at beginning of period | 7,098,259 | 8,733,742 |
Cash at end of period | 987,031 | 7,927,386 |
Supplemental information | ||
Income taxes paid | $ 9,108 | $ 60,162 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Note 1. ORGANIZATION AND NATURE OF BUSINESS Founded in the United States (the “U.S.”) in 2001, Sino-Global Shipping America, Ltd., a Virginia corporation (“Sino-Global” or the “Company”), is a non-asset based global shipping and freight logistics integrated solution provider. The Company provides tailored solutions and value-added services to its customers to drive effectiveness and control in related steps throughout the entire shipping and freight logistics chain. The Company conducts its business primarily through its wholly-owned subsidiaries in the U.S., the People’s Republic of China (the “PRC”) (including Hong Kong), Australia and Canada. The majority of the Company’s business is generated from clients located in the PRC and the U.S. The Company operates in three segments including (1) inland transportation management services which are operated by its subsidiaries in the PRC, Hong Kong and the U.S.; (2) freight logistics services which are operated by its subsidiaries in the PRC and the U.S.; and (3) container trucking services which are operated by its subsidiaries in the PRC and the U.S. In order to increase the Company’s operations in the U.S. and to enhance the Company’s competitiveness with information technology, in August 2016, the Company’s Board of Directors (the “Board”) authorized management to move forward with the development of a mobile application that would provide a full-service logistics platform for shipping operations between the U.S. and the PRC for, among other things, short-haul trucking in the U.S. Upon the implementation of the application, the Company signed two significant agreements with COSCO Beijing International Freight Co., Ltd. (“COSFRE Beijing”) and Sino-Trans Guangxi in December 2016. Pursuant to the agreement with COSFRE Beijing, the Company receives a percentage of the transportation fees for the arrangement of inland transportation services for COSFRE Beijing’s container shipments into U.S. ports. The Company has increased its business in the U.S. since the launch of the short haul container truck services web-based platform. For the strategic cooperation framework agreement with Sino-Trans Guangxi, which is a subsidiary of Sino-Trans Limited, the Company established an integrated logistics plan to provide an end-to-end supply chain solution for customers shipping soybeans and sulfur products from the U.S. to southern PRC via container. On January 9, 2017, the Company entered into a strategic cooperation agreement with China Ocean Shipping Agency Qingdao Co. Ltd. (“COSCO Qingdao”). COSCO Qingdao now utilizes the Company’s full-service logistics platform to arrange the transport of its container shipments into U.S. ports. Sino-Global receives a percentage of the transportation fees in exchange for the arrangement of inland transportation services for COSCO Qingdao’s container shipments into U.S. ports. The Board subsequently authorized the Company to upgrade its enterprise resource planning system (ERP) in order to manage its operations in real time throughout its multiple locations and to integrate with web applications. On September 11, 2017, the Company set up a new wholly-owned subsidiary, Ningbo Saimeinuo Supply Chain Management Ltd. (“Sino Ningbo”), via its wholly-owned entity, Sino-Global Shipping New York Inc. This subsidiary primarily engages in transportation management and freight logistics services. Sino Ningbo’s operating results were included in the consolidated financial statements starting the fourth quarter of fiscal year 2018. On September 3, 2018, the Company entered into a co-operation agreement with Ningbo Far-East Universal Shipping Agency Co., Ltd to set up a joint venture in Hong Kong named Bright Far East International Shipping Agency Co., Ltd., to engage in worldwide shipping agency and management operations. The Company has 51% ownership stake in the joint venture. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The unaudited condensed consolidated financial statements include the accounts of all directly, indirectly owned subsidiaries and variable interest entity. All intercompany transactions and balances have been eliminated in consolidation. (b) Basis of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiaries, and its affiliates. All significant intercompany transactions and balances are eliminated in consolidation. Sino-Global Shipping Agency Ltd., a PRC corporation (“Sino-China”), is considered a variable interest entity (“VIE”), with the Company as the primary beneficiary. The Company, through Trans Pacific Beijing, entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. The Company does not receive any payments from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. If Sino-China incurs a net loss during its fiscal year, the Company is not required to absorb such net loss. As a VIE, Sino-China’s revenues are included in the Company’s total revenues, and any loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China. The Company has consolidated Sino-China’s operating results because the entities are under common control in accordance with ASC 805-10, “Business Combinations”. The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China. The carrying amount and classification of Sino-China's assets and liabilities included in the Company’s unaudited condensed consolidated balance sheets were as follows: September 30, June 30, 2018 2018 Total current assets $ 16,292 $ 3,434,850 Total assets 125,897 3,992,131 Total current liabilities 30,609 21,979 Total liabilities 30,609 21,979 (c) Fair Value of Financial Instruments The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Unobservable inputs that reflect management’s assumptions based on the best available information. The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments. (d) Use of Estimates and Assumptions The preparation of the Company’s unaudited condensed consolidated 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, deferred income taxes, income tax expense, the useful lives of property and equipment and intangible assets. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. (e) Translation of Foreign Currency The accounts of the Company and its subsidiaries, including Sino-China and each of its branches are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s functional currency is the U.S. dollar (“USD”) while its subsidiaries in the PRC, including Sino-China, report their financial positions and results of operations in Renminbi (“RMB”). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements of Sino-China, Sino-Global Shipping Australia, Sino-Global Shipping Hong Kong, Sino-Global Shipping Canada, Trans Pacific Beijing and Trans Pacific Shanghai in accordance with ASC 830-10, “Foreign Currency Matters”. Assets and liabilities are translated at current exchange rates quoted by the People’s Bank of China at the balance sheet dates and revenues and expenses are translated at average exchange rates in effect during the year. The resulting translation adjustments are recorded as other comprehensive income (loss) and accumulated other comprehensive loss as a separate component of equity of the Company, and also included in non-controlling interests. The exchange rates as of September 30, 2018 and June 30, 2018 and for the three months ended September 30, 2018 and 2017 are as follows: September 30, 2018 June 30, 2018 Three months ended Foreign currency Balance Sheet Balance 2018 Profits/Loss 2017 Profits/Loss RMB:1USD 6.8678 6.6186 6.8027 6.6704 AUD:1USD 1.3842 1.3505 1.3678 1.2669 HKD:1USD 7.8281 7.8442 7.8452 7.8147 CAD:1USD 1.2901 1.3141 1.3069 1.2537 (f) Cash Cash consists of cash on hand and deposits placed with banks which are unrestricted as to withdrawal and use or have a term deposit of three months or less. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of September 30, 2018 and June 30, 2018, cash balances of $239,535 and $6,205,960, respectively, were maintained at financial institutions in the PRC, which were not insured by any of the Chinese authorities. As of September 30, 2018 and June 30, 2018, cash balance of $167,283 and $848,657, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately USD $64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of September 30, 2018 and June 30, 2018, cash balance of $552,133 and $9,601, respectively, were maintained at financial institutions in Hong Kong and approximately $64,000 were insured by the Hong Kong Deposit Protection Board. (g) Receivables and Allowance for Doubtful Accounts Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers’ historical payment history, their current credit-worthiness and current economic trends. Receivables are considered past due after 180 days. Accounts Receivable are written off against the allowances only after exhaustive collection efforts. Other receivables represent mainly prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. (h) Property and Equipment, net Net property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 years Motor vehicles 5-10 years Furniture and office equipment 3-5 years Leasehold improvements Shorter of lease term or useful lives The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. Management has determined that there were no impairments at the balance sheet dates. (i) Intangible Assets, net Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives: Logistics platform 3 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. There was no such impairment as of September 30, 2018. (j) Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (FASB ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2018. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company’s revenues are recognized at a point in time after all performance obligations are satisfied. ● Revenues from inland transportation management services are recognized when commodities are being released from the customers’ warehouse. ● Revenues from ship management services are recognized when the related contractual services are rendered. ● Revenues from freight logistic services are recognized when the related contractual services are rendered. ● Revenues from container trucking services are recognized when the related contractual services are rendered. (k) Taxation Because the Company and its subsidiaries and Sino-China are incorporated in different jurisdictions, they file separate income tax returns. The Company uses the liability method of accounting for income taxes in accordance with US Generally Accepted Accounting Principles (“US GAAP”). Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of September 30, 2018 and June 30 2018, respectively. Income tax returns for the years prior to 2015 are no longer subject to examination by US tax authorities. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused the Company to re-measure all U.S. deferred income tax assets and liabilities for temporary differences and net operating loss (“NOL”) carryforwards and recorded a one-time transition tax expense. PRC Enterprise Income Tax PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles (“PRC GAAP”) at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC. PRC Business Tax and Surcharges Revenues from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to the PRC business tax of 5%. Business tax and surcharges are paid on gross revenues generated from shipping agency services minus the costs of services which are paid on behalf of the customers. In addition, under the PRC regulations, the Company’s PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the calculated business tax payments. The Company’s PRC subsidiaries and affiliates report revenues net of PRC’s business tax and surcharges for all the periods presented in the consolidated statements of operations. (l) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common shares of the Company by the weighted average number of common shares of the Company outstanding during the applicable period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares of the Company were exercised or converted into common shares of the Company. Common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. For the three months ended September 30, 2018 there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss. For the three months ended September 30, 2017, the effect of potential shares of common stock of the Company was dilutive since the exercise prices for options and warrants were lower than the average market price for the related periods. As a result, a total of 52,090 of unexercised options and warrants were dilutive for the three months ended September 30, 2017 and were included in the computation of diluted EPS. (m) Comprehensive Income (loss) The Company reports comprehensive income (loss) in accordance with the FASB issued authoritative guidance which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Comprehensive income (loss), as defined, includes all changes in equity during a period from non-owner sources. (n) Stock-based Compensation Valuations are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. (o) Risks and Uncertainties The Company’s business, financial position and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Moreover, the Company’s ability to grow its business and maintain its profitability could be negatively affected by the nature and extent of services provided to its major customers, Tianjin Zhiyuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) and Tengda Northwest Ferroalloy Co., Ltd. (“Tengda Northwest”). (p) Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”) which revises accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the balance sheet. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify how to apply certain aspects of the new leases standard. The amendments address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other issues. In addition, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, 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. The Company does not believe the adoption of this ASU would have a material effect on the Company’s unaudited condensed consolidated financial statements. On July 1, 2018, the Company has adopted this ASU. In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock compensation (Topic 718): Scope of modification accounting” (“ASU 2017-09”). The purpose of the amendment is to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. For all entities that offer share based payment awards, ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. On July 1, 2018, the Company has adopted this ASU. The Company does not believe the adoption of this ASU would have a material effect on the Company’s unaudited condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The guidance largely aligns the accounting for share-based payment awards issued to employees and nonemployees, whereby the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The ASU is required to be applied on a prospective basis to all new awards granted after the date of adoption. The Company is still evaluating the effect that this guidance but does not expect the standard to have a material impact on its unaudited condensed 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 unaudited condensed consolidated financial statements. (q) Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation mainly reclassifying advance to suppliers to prepaid expenses – long term (see Note 4 and 5). These reclassifications have no effect on the reported revenues, net income or total assets. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 3. ACCOUNTS RECEIVABLE, NET The Company’s net accounts receivable is as follows: September 30, June 30, 2018 2018 Trade accounts receivable $ 13,836,120 $ 10,111,081 Less: allowances for doubtful accounts (2,635,206 ) (1,682,228 ) Accounts receivables, net $ 11,200,914 $ 8,428,853 Movement of allowance for doubtful accounts is as follows: September 30, June 30, Beginning balance $ 1,682,228 $ 185,821 Provision for doubtful accounts 955,897 1,519,122 Less: write-off/recovery - (24,101 ) Exchange rate effect (2,919 ) 1,386 Ending balance $ 2,635,206 $ 1,682,228 For the three months ended September 30, 2018, provision for doubtful accounts was $951,832. For the same period in 2017, recovery of doubtful accounts was $24,536, due to collection of accounts receivable which the Company made a provision during previous period. |
Advances to Suppliers
Advances to Suppliers | 3 Months Ended |
Sep. 30, 2018 | |
Advances to Suppliers [Abstract] | |
ADVANCES TO SUPPLIERS | Note 4. ADVANCES TO SUPPLIERS The Company’s advances to suppliers – third parties are as follows: September 30, June 30, 2018 2018 Freight fees (1) $ 1,492,091 $ 564,365 Other - 140,513 Total advances to suppliers-third parties $ 1,492,091 $ 704,878 (1) The prepaid freight fee is the Company’s advances made for various shipping costs for shipments from October to December of 2018. The Company’s advances to suppliers – related party are as follows: September 30, June 30, 2018 2018 Freight fees $ - $ 3,414,619 Total advances to suppliers-related party $ - $ 3,414,619 On February 18, 2017, the Company entered into a cooperative transportation agreement with a related party, Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd. (the “Buyer” or “Zhiyuan Hong Kong”). Zhiyuan Hong Kong, which is jointly owned by the Company’s largest shareholder along with China Minmetals Corporation and China Metallurgical Group Corporation, acts as the general designer, general equipment provider and general service contractor in the upgrade and renovation project of Perwaja Steel, located in Malaysia (the “Project”). The Company agreed to provide high-quality services, including the design of a detailed transportation plan as well as execution and necessary supervision of the plan at Zhiyuan Hong Kong’s demand, for which the Company will receive a 1% to 1.25% of the transportation fee incurred in the Project as a commission for its services rendered. On July 7, 2017, the Company signed a supplemental agreement with the Buyer, in which the Company agreed to cooperate with Zhiyuan Hong Kong exclusively on the entire Project’s transportation needs with respect to transporting construction materials from manufacturers to the port of Malaysia and to the factory site. Pursuant to the supplemental agreement, the Company agreed to make prepayments to Zhiyuan Hong Kong for its share of packaging and transporting costs related to the Project; in return, the Company received 15% of the cost incurred in the Project from Zhiyuan Hong Kong as a service fee. The Company has completed its services pursuant to the supplemental agreement and received a $575,115 service fee in June 2018. The entire advance was reimbursed to the Company in September 2018. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 3 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | Note 5. PREPAID EXPENSES and other assets The Company’s prepaid expenses and other assets are as follows: September 30, June 30, 2018 2018 Advance to employees $ 280,652 $ 355,294 Prepaid income taxes - 800 Other (including prepaid insurance, rent, listing fees) 173,206 232,345 Deposit for leasehold improvement on IT infrastructure facility (1) 422,252 438,151 Deposit for ERP (2) 437,357 437,357 Deposit for IT infrastructure (3) 1,002,750 1,002,750 Total 2,316,217 2,466,697 Less: current portion (453,858 ) (588,439 ) Total noncurrent portion $ 1,862,359 $ 1,878,258 (1) The Company paid a $422,252 deposit for leasehold improvements on its IT infrastructure facility including upgrading the server room of its Shanghai office. The total project cost is approximately $580,000 and is expected to be completed in October 2019. (2) On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye Technology Ltd Co. (“Tianjin Anboweiye”), to develop a more complete ERP system based on the Company’s current operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company paid a $437,357 deposit to Tianjin Anboweiye. The total contract price for phase one amounted to RMB 4,000,000, approximately USD 580,000. The project is currently in the planning and design stage. The Company expects the planning stage will be completed in March 2019 and will then start the development stage. The remaining balance will be settled upon completion of services in fiscal year 2021. (3) On June 22, 2018, the Company entered into contract to improve its IT infrastructure. The total contract consideration for the services is $1.2 million and the Company paid a deposit of $1.0 million. The consideration is allocated as follows: $420,000 for hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up, and $240,000 for continuing integration with the ERP system and data management for two years. The system is currently in the installation stage but is not yet completed. |
Other Long-Term Assets - Deposi
Other Long-Term Assets - Deposits | 3 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Other Long-Term Assets - Deposits | Note 6. OTHER LONG-TERM ASSETS - DEPOSITS The Company’s other long-term assets – deposits are as follows: September 30, June 30, 2018 2018 Rental and utilities deposits $ 59,820 $ 59,777 Freight logistic deposits (1) 2,993,362 83,526 Total other long-term assets - deposits $ 3,053,182 $ 143,303 (1) Certain customers require the Company to pay deposits for the security of the shipments and merchandise. These deposits are refundable at the end of the contract terms. Approximately $2.91 million (RMB 20 million) was paid to BaoSteel Resources Co., Ltd. (“BaoSteel”) according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise as well as any non-performance on the part of the Company and its vendors. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 7. PROPERTY AND EQUIPMENT, NET The Company’s net property and equipment as follows: September 30, June 30, 2018 2018 Land and buildings $ 195,991 $ 203,371 Motor vehicles 575,518 598,094 Computer equipment 162,907 165,561 Office equipment 74,112 76,065 Furniture and fixtures 162,270 165,047 System software 116,305 120,485 Leasehold improvements (1) 798,307 828,365 Total 2,085,410 2,156,988 Less: Accumulated depreciation and amortization (1,177,112 ) (1,200,559 ) Property and equipment, net $ 908,298 $ 956,429 (1) The Company completed its leasehold improvement for its new Ningbo office in June, 2018. The Company subsequently entered into a renegotiation of the lease term with the lessor and the leasehold improvement is subject to inspection and approval by the lessor. The office is not currently in use and thus no amortization expenses for the leasehold improvement was recorded for the period ended September 30, 2018. Depreciation and amortization expense for the three months ended September 30, 2018 and 2017 were $9,882 and $13,203, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Sep. 30, 2018 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | Note 8. INTANGIBLE ASSETS, NET Net intangible assets consisted of the following at: September 30, June 30, 2018 2018 Full service logistics platforms $ 190,000 $ 190,000 Less: Accumulated amortization (52,778 ) (36,944 ) Intangible asset, net $ 137,222 $ 153,056 As part of the above-mentioned intelligent logistics platform (see Note 4), four information applications were completed by Tianjin Anboweiye in November 2017 and placed into service, including route planning and route execution for customers in China. The platforms are being amortized over three years. Amortization expense amounted to $15,833 and $0 for the three months ended September 30, 2018 and 2017, respectively. |
Equity
Equity | 3 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
EQUITY | Note 9. EQUITY Stock issuance: On March 12, 2018, the Company entered into a Securities Purchase Agreement with investors pursuant to which the Company sold to the investors in a registered direct offering, an aggregate of 2,000,000 shares of the common stock of the Company, no par value per share, at a price of $1.50 per share for aggregate gross proceeds of $3 million. The placement agent received a cash commission fee equal to 7.5% of the gross proceeds. The offering closed on March 14, 2018. The offering of the 2 million shares was made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-222098), which was originally filed with the SEC on December 15, 2017, and was declared effective by the SEC on February 16, 2018. The Company agreed in the purchase agreement that it would not issue any common stock for 60 calendar days following the closing of the offering and each of the Company’s executive officers and directors agreed to a lock-up period of 60 days from the date of the purchase agreement. Concurrently with the registered direct offering closed on March 14, 2018, the Company sold the investors Series “A” warrants to purchase up to an aggregate of 2,000,000 shares of common stock at an exercise price of $1.75 per share and Series “B” warrants to purchase up to an aggregate of 2,000,000 shares of common stock at an exercise price of $1.75 per share. The sale of the Series “A” warrants and Series “B” warrants is a private placement in reliance upon an exemption afforded under Regulation D of the Securities Act. The Series “A” warrants are exercisable as of September 14, 2018, and expire five and a half (5.5) years from the date of issuance. The Series B warrants are exercisable as of September 14, 2018, and expire thirteen (13) months from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the Warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants after deducting offering expenses and placement agent fees were $2,585,091. On April 26, 2018, the Company filed a registration statement on Form S-1 (“S-1”) to register the resale of an aggregate of 4,000,000 shares of common stock underlying the Series A and B Warrants mentioned above. The S-1 was declared effective by the SEC on May 8, 2018. The warrants are classified as equity since they qualify for exception from derivative accounting as they are considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants of $1,074,140 is valued based on the Black-Scholes-Merton model and is recorded as additional paid-in capital from common stock based on the relative fair value of proceeds received using the following assumptions: Series A Series B Annual dividend yield - - Expected life (years) 5.5 1.08 Risk-free interest rate 2.72 % 2.16 % Expected volatility 110.31 % 73.88 % Following is a summary of the status of warrants outstanding and exercisable as of September 30, 2018: Shares Weighted Average Warrants outstanding, as of June 30, 2018 4,000,000 $ 1.75 Issued - - Exercised - - Expired - - Warrants outstanding, as of September 30, 2018 4,000,000 $ 1.75 Warrants exercisable, as of September 30, 2018 4,000,000 $ 1.75 Warrants Outstanding Warrants Exercisable Weighted Average Price Average Remaining Contractual 2018 Series A 2,000,000 2,000,000 $ 1.75 4.96 years 2018 Series B 2,000,000 2,000,000 $ 1.75 0.54 years Stock based compensation: In March 2017, the Company entered into a consulting and advisory services agreement with consulting entity, who provides management consulting services that include marketing program design and implementation and cooperative partner selection and management. The service period began March 2017 and will end February 2020. The Company issued 250,000 shares of common stock as the remuneration for the services, which were issued as restricted shares at $2.53 per share on March 22, 2017 to the consultant. These shares were valued at $632,500 and consulting expense were $52,708 and $52,709 for three months ended September 30, 2018 and 2017, respectively. On October 23, 2017, the Company issued to its employees 130,000 shares of its restricted common stock valued at $2.80 per share. One quarter of the total number of common shares became vested on each of November 16, 2017, February 16, 2018, May 16, 2018 and August 16, 2018. These shares were valued at $364,000. $91,000 was recorded as compensation expense for the three months ended September 30, 2018. On October 27, 2017, the Company issued 200,000 shares of restricted common stock on the grant date with a fair value of $548,000 to a consulting company pursuant to a consulting agreement. The scope of services primarily covered advising on business development, strategic planning and compliance during the one-year service period from October 17, 2017 to October 16, 2018. $137,000 was recorded as compensation expense for the three months ended September 30, 2018. On June 7, 2018, the Company issued 400,000 shares of common stock with a fair value of $508,000 to a consulting entity pursuant to a service agreement. The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June 2020. The Company recorded legal expense of $63,500 for the three months ended September 30, 2018. On September 21, 2018, the Company issued 430,000 shares of common stock valued at $1.10 per share on the grant date with a fair value of $473,000 under the 2014 Stock Incentive Plan to three employees, vesting immediately. The Company recorded compensation expense of $473,000 for the three months ended September 30, 2018. $817,208 and $62,374 were charged to general and administrative expenses during the three months ended September 30, 2018 and 2017, respectively. Stock Options: The issuance of the Company’s options is exempted from registration under the Securities Act of 1933, as amended (the “Securities Act”). The Common Stock underlying the Company’s options granted may be sold in compliance with Rule 144 of the Securities Act. Each option may be exercised to purchase one share of the common stock of the Company, no par value per share (the “Common Stock”). Payment for the options may be made in cash or by exchanging shares of Common Stock at their fair market value. The fair market value will be equal to the average of the highest and lowest registered sales prices of Company Stock on the date of exercise. The term of the 10,000 options granted in 2013 is 10 years and the exercise price is $2.01. The total fair value of the options was $19,400. All options were vested as of June 30, 2018. Pursuant to the Company’s 2014 Stock Incentive Plan, effective on July 26, 2016, the Company granted options to purchase 150,000 shares of Common Stock to two employees with a one-year vesting period, one half of which vested on October 26, 2016, and the other half on July 26, 2017. The exercise price of the 150,000 options is $1.10, which was equal to the share price of the Company’s Common Stock on July 26, 2016. The grant date fair value of such options was $0.77 per share. The fair value was calculated using the Black-Scholes options pricing model with the following assumptions: volatility of 99.68%, risk free interest rate of 1.15%, and expected life of 5 years. The total fair value of the options was $115,979. 75,000 of these options were exercised in February 2017. In accordance with the vesting periods, $0 and 9,665 were recorded as general and administrative expenses related to these options for the three months ended September 30, 2018 and 2017, respectively. A summary of the options is presented in the table below: Shares Weighted Average Options outstanding, as of June 30, 2018 85,000 $ 1.21 Granted - - Exercised - - Cancelled, forfeited or expired - - Options outstanding, as of September 30, 2018 85,000 $ 1.21 Options exercisable, as of September 30, 2018 85,000 $ 1.21 Following is a summary of the status of options outstanding and exercisable at September 30, 2018: Outstanding Options Exercisable Options Exercise Price Number Average Remaining Contractual Average Exercise Price Number Average Remaining Contractual Life $ 2.01 10,000 4.34 years $ 2.01 10,000 4.34 years $ 1.10 75,000 2.82 years $ 1.10 75,000 2.82 years 85,000 85,000 |
Non-Controlling Interest
Non-Controlling Interest | 3 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | Note 10. NON-CONTROLLING INTEREST The Company’s non-controlling interest consists of the following: September 30, June 30, 2018 2018 Sino-China: Original paid-in capital $ 356,400 $ 356,400 Additional paid-in capital 1,044 1,044 Accumulated other comprehensive income 266,213 142,900 Accumulated deficit (5,559,616 ) (5,521,638 ) (4,935,959 ) (5,021,294 ) Trans Pacific Logistics Shanghai Ltd. 229,856 208,466 Total $ (4,706,103 ) $ (4,812,828 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 11. COMMITMENTS AND CONTINGENCIES Lease Obligations The Company leases certain office premises and apartments for employees under various operating lease agreements with terms through April 16, 2020. Rental expenses for the three months ended September 30, 2018 and 2017 were $56,358 and $64,862, respectively. Contractual Obligations: The Company entered into a contract to upgrade its ERP system. The total contract costs amounting to RMB4,000,000, approximately $580,000, which the Company made a deposit of $437,357 during the year ended June 30, 2018. The remaining balance will be settled upon the completion of services during fiscal year 2021. On June 22, 2018, the Company entered into a contract to improve its IT infrastructure. The total contract price for the services is $1.2 million and the Company paid a deposit of $1.0 million during the year ended June 30, 2018. The remaining $0.2 million will be paid upon completion of services during fiscal year 2020. Leases Contractual Total Twelve months ending September 30, 2019 $ 200,646 $ $ 200,646 2020 28,954 200,000 228,954 2021 142,643 142,643 $ 229,600 $ 342,643 $ 572,243 Contingencies The Labor Contract Law of the PRC requires employers to insure the liability of the severance payments for terminated employees that have worked for the employers for at least two years prior to January 1, 2008. The employers will be liable for one month for severance pay for each year of the service provided by the employees. As of September 30, 2018 and June 30, 2018, the Company has estimated its severance payments of approximately $58,746 and $58,543, respectively, which have not been reflected in its unaudited condensed consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future. Sino-China has employment agreements with each of Mr. Lei Cao, Ms. Tuo Pan and Mr. Zhikang Huang. These employment agreements provide for five-year terms that extend automatically in the absence of termination provided at least 60 days prior to the anniversary date of the agreement. If we fail to provide this notice or if we wish to terminate an employment agreement in the absence of cause, then we are obligated to provide at least 30 days’ prior notice. In such case during the initial term of the agreement, we would need to pay such executive (i) the remaining salary through the date of May 4, 2023, (ii) two times of the then applicable annual salary if there has been no Change in Control, as defined in the employment agreements or three-and-half times of the then applicable annual salary if there is a Change in Control. From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. The Company was named as a defendant in a breach of service contract lawsuit in the amount of $225,000 filed with the California Superior Court on January 19, 2018. The Company filed a motion with the court to force the plaintiff to arbitration rather than to litigate the dispute in court based on the arbitration provision in the contract. The court approved to stay the case pending the resolution of the arbitration and has scheduled a status conference for March 19, 2019. Management believes it is premature to assess the outcome of the pending arbitration but believes it will not likely have a material effect on the Company’s consolidated operations or financial position. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 12. INCOME TAXES On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. Since the Company has a June 30 fiscal year-end, a blended U.S. statutory federal rate of approximately 28% for the fiscal year ending June 30, 2018 is applied to the provision for income tax and a 21% rate for subsequent fiscal years. As of September 30, 2018, the Company re-measured deferred tax assets based on the current effective rate of 21% at which these deferred tax amounts are expected to reverse in the future. The Company’s income tax benefit (expense) for the three months ended September 30, 2018 and 2017 are as follows: For the Three Months Ended September 30 2018 2017 Current U.S. $ (30,597 ) $ (60,162 ) Hong Kong - (4,309 ) PRC (97,437 ) (132,058 ) (128,034 ) (196,529 ) Deferred U.S. 194,500 (99,900 ) Total income tax benefit (expense) $ 66,466 $ (296,429 ) The Company’s deferred tax assets are comprised of the following: September 30, June 30, Allowance for doubtful accounts $ 793,000 $ 540,000 Net operating loss 416,000 355,000 Total deferred tax assets 1,209,000 895,000 Valuation allowance (380,000 ) (260,500 ) Deferred tax assets, net - long-term $ 829,000 $ 634,500 The Company’s operations in the U.S. have incurred a cumulative pre-2017 net operating loss (“NOL”) of approximately $1,531,000 as of June 30, 2018 which may reduce future federal taxable income. The NOL will expire in 2036. During the three months ended September 30, 2018, a total of approximately $230,000 of NOL was generated and the tax benefit derived from such NOL was approximately $48,000. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. The Company considers many factors when assessing the likelihood of future realization of the deferred tax assets, including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes, and other relevant factors. Management has provided an allowance against the deferred tax assets balance as of September 30, 2018. The net increase in valuation for September 30, 2018 amounted to $119,500, on the basis of management’s reassessment of the amount of its deferred tax assets that are more likely than not to be realized. Management considers new evidence, both positive and negative, that could affect its future realization of deferred tax assets. Due to the Company’s forecasted pretax income and continuing utilization of its NOL, management determined that there is sufficient positive evidence to conclude that it is more likely than not that all of its deferred taxes are realizable. The Company’s taxes payable consists of the following: September 30, June 30, 2018 2018 VAT tax payable $ 505,444 $ 531,337 Corporate income tax payable 2,090,155 2,104,232 Others 63,348 65,050 Total $ 2,658,947 $ 2,700,619 |
Concentrations
Concentrations | 3 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | Note 13. CONCENTRATIONS Major Customer For the three months ended September 30, 2018, three customers accounted for 27.8%, 22.2% and 18.5% of the Company’s revenues, respectively. At September 30, 2018, these three customers accounted for approximately 30.1% of the Company’s accounts receivable. For the three months ended September 30, 2017, three customers accounted for 47%, 16% and 11% of the Company’s revenues, respectively. As of September 30, 2017, one of these three customers accounted for 100% of the Company’s accounts due from related parties and the remaining two customers accounted for approximately 64% of the Company’s accounts receivable. Major Suppliers For the three months ended September 30, 2018, four suppliers accounted for 32.1%, 20.3%, 18.2% and 12.6% of the total costs of revenue, respectively. For the three months ended September 30, 2017, one supplier accounted for 61% of the total costs of revenue. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | Note 14. SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company's business segments. The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined that it has three operating segments: (1) inland transportation management services; (2) freight logistics services; and (3) container trucking services. The following tables present summary information by segment for the three months ended September 30, 2018 and 2017, respectively: For the Three Months ended September 30, 2018 Inland Freight Container Total Revenues - Related party $ 322,000 $ - $ - $ 322,000 - Third parties $ 598,000 $ 5,487,553 $ 91,980 $ 6,177,533 Total Revenues $ 920,000 $ 5,487,553 $ 91,980 $ 6,499,533 Cost of revenues $ 59,874 $ 4,965,992 $ 57,966 $ 5,083,832 Gross profit $ 860,126 $ 521,561 $ 34,014 $ 1,415,701 Depreciation and amortization $ 20,488 $ 476 $ 4,751 $ 25,715 Total capital expenditures $ - $ - $ 830 $ 830 For the Three Months ended September 30, 2017 Inland Freight Container Total Revenues - Related party $ 565,160 $ - $ - $ 565,160 - Third parties $ 853,306 $ 3,508,704 $ 452,841 $ 4,814,851 Total Revenues $ 1,418,466 $ 3,508,704 $ 452,841 $ 5,380,011 Cost of revenues $ 182,150 $ 3,140,592 $ 343,176 $ 3,665,918 Total Gross profit $ 1,236,316 $ 368,112 $ 109,665 $ 1,714,093 Depreciation and amortization $ 7,661 $ 475 $ 5,067 $ 13,203 Total capital expenditures $ - $ 5,077 $ - $ 5,077 Total assets as of: September 30, June 30, 2018 2018 Inland Transportation Management Services $ 14,305,487 $ 18,338,099 Freight Logistic Services 90,709 161,667 Container Trucking Services 7,747,419 7,228,209 Bulk Cargo Container Services 188,944 429,852 Total Assets $ 22,332,559 $ 26,157,827 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 15. RELATED PARTY TRANSACTIONS As of September 30, 2018 and June 30, 2018, the outstanding amounts due from a related party consist of the following: September 30, June 30, 2018 2018 Tianjin Zhiyuan Investment Group Co., Ltd. $ 1,512,589 $ 2,319,993 Less: allowance for doubtful accounts (151,259 ) (231,999 ) Total $ 1,361,330 $ 2,087,994 In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) and TEWOO Chemical & Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, “Zhiyuan”). Zhiyuan Investment Group is owned by Mr. Zhang, the largest shareholder of the Company. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment Group whereby it would provide certain advisory services and help control potential commodities loss during the transportation process. As a result of the inland transportation management services provided to Zhiyuan, the Company generated revenue of $322,000 (5.0% of the Company’s total revenue for the three months ended September 30, 2018). The amount due from Zhiyuan Investment Group as of September 30, 2018 was $1,512,589. The Company expects that the full amount will be collected by March 2019. As of September 30, 2018, the Company provided a 10% allowance for doubtful accounts of the amount due from Zhiyuan. The Company entered into a supplemental service agreement with Zhiyuan to extend the service period to September 1, 2019. As of September 30, 2018 and June 30, 2018, the outstanding amounts advances to suppliers-related party consist of the following: September 30, June 30, 2018 2018 Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd. - 3,414,619 Total $ - $ 3,414,619 On February 18, 2017, the Company entered into a cooperative transportation agreement with a related party, Zhiyuan Hong Kong (the “Buyer”) which is owned by the Company’s largest shareholder, jointly with China Minmetals Corporation and China Metallurgical Group Corporation, and which acted as the general designer, general equipment provider and general service contractor in the upgrade and renovation project of a facility owned by Perwaja Steel, located in Malaysia (the “Project”). The Company agreed to provide high-quality services, including the design of a detailed transportation plan as well as execution and necessary supervision of the plan at Zhiyuan Hong Kong’s demand, in consideration for which the Company received a 1% to 1.25% transportation fee incurred in the Project as a commission for its services rendered. On July 7, 2017, the Company signed a supplemental agreement with the Buyer, in which the Company agreed to cooperate with the Buyer exclusively on the entire Project’s transportation needs with respect to transporting construction materials from manufacturers to the port of Malaysia and to the factory site. Pursuant to the supplemental agreement, the Company agreed to make prepayments to the Buyer for its share of packaging and transporting costs related to the Project; in return, the Company received 15% of the cost incurred in the Project from the Buyer as a service fee. The Company has completed its services pursuant to the supplemental agreement and received a $575,115 service fee in June 2018. The entire advance was reimbursed in September 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 16. SUBSEQUENT EVENTS On November 1, 2018, the Company signed a five-year strategic cooperation agreement with a Hong Kong listed Company, Sinco Pharmaceuticals Holdings Ltd (“Sinco”) pursuant to which both Companies will contribute their resources and expertise to develop cold chain logistics in China. On November 7, 2018, the Board approved a Share Purchase Agreement with the Chairman of Sinco, an accredited investor, pursuant to which the Company agreed to sell shares of its common stock for the aggregate gross proceeds of $1 million to the Company. The Share Purchase Agreement was entered into on November 8, 2018. The per share price and number of shares to be issued is equal to 120% of the average closing price of the common stock on NASDAQ Stock Market over the five consecutive trading-day period immediately prior to the closing of the transaction. On November 7, 2018, the Board approved the issuance of 50,000 shares of restricted common stock to a consultant pursuant to an existing consulting agreement. The scope of services primarily covers advising on business development, strategic planning and corporate finance. The grant date fair value of approximately $65,000 will be amortized during the remaining service period from November 3, 2018 to May 2, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The unaudited condensed consolidated financial statements include the accounts of all directly, indirectly owned subsidiaries and variable interest entity. All intercompany transactions and balances have been eliminated in consolidation. |
Basis of Consolidation | (b) Basis of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiaries, and its affiliates. All significant intercompany transactions and balances are eliminated in consolidation. Sino-Global Shipping Agency Ltd., a PRC corporation (“Sino-China”), is considered a variable interest entity (“VIE”), with the Company as the primary beneficiary. The Company, through Trans Pacific Beijing, entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. The Company does not receive any payments from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. If Sino-China incurs a net loss during its fiscal year, the Company is not required to absorb such net loss. As a VIE, Sino-China’s revenues are included in the Company’s total revenues, and any loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China. The Company has consolidated Sino-China’s operating results because the entities are under common control in accordance with ASC 805-10, “Business Combinations”. The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China. The carrying amount and classification of Sino-China's assets and liabilities included in the Company’s unaudited condensed consolidated balance sheets were as follows: September 30, June 30, 2018 2018 Total current assets $ 16,292 $ 3,434,850 Total assets 125,897 3,992,131 Total current liabilities 30,609 21,979 Total liabilities 30,609 21,979 |
Fair Value of Financial Instruments | (c) Fair Value of Financial Instruments The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Unobservable inputs that reflect management’s assumptions based on the best available information. The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments. |
Use of Estimates and Assumptions | (d) Use of Estimates and Assumptions The preparation of the Company’s unaudited condensed consolidated 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, deferred income taxes, income tax expense, the useful lives of property and equipment and intangible assets. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. |
Translation of Foreign Currency | (e) Translation of Foreign Currency The accounts of the Company and its subsidiaries, including Sino-China and each of its branches are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s functional currency is the U.S. dollar (“USD”) while its subsidiaries in the PRC, including Sino-China, report their financial positions and results of operations in Renminbi (“RMB”). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements of Sino-China, Sino-Global Shipping Australia, Sino-Global Shipping Hong Kong, Sino-Global Shipping Canada, Trans Pacific Beijing and Trans Pacific Shanghai in accordance with ASC 830-10, “Foreign Currency Matters”. Assets and liabilities are translated at current exchange rates quoted by the People’s Bank of China at the balance sheet dates and revenues and expenses are translated at average exchange rates in effect during the year. The resulting translation adjustments are recorded as other comprehensive income (loss) and accumulated other comprehensive loss as a separate component of equity of the Company, and also included in non-controlling interests. The exchange rates as of September 30, 2018 and June 30, 2018 and for the three months ended September 30, 2018 and 2017 are as follows: September 30, 2018 June 30, 2018 Three months ended Foreign currency Balance Sheet Balance 2018 Profits/Loss 2017 Profits/Loss RMB:1USD 6.8678 6.6186 6.8027 6.6704 AUD:1USD 1.3842 1.3505 1.3678 1.2669 HKD:1USD 7.8281 7.8442 7.8452 7.8147 CAD:1USD 1.2901 1.3141 1.3069 1.2537 |
Cash | (f) Cash Cash consists of cash on hand and deposits placed with banks which are unrestricted as to withdrawal and use or have a term deposit of three months or less. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of September 30, 2018 and June 30, 2018, cash balances of $239,535 and $6,205,960, respectively, were maintained at financial institutions in the PRC, which were not insured by any of the Chinese authorities. As of September 30, 2018 and June 30, 2018, cash balance of $167,283 and $848,657, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately USD $64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of September 30, 2018 and June 30, 2018, cash balance of $552,133 and $9,601, respectively, were maintained at financial institutions in Hong Kong and approximately $64,000 were insured by the Hong Kong Deposit Protection Board. |
Receivables and Allowance for Doubtful Accounts | (g) Receivables and Allowance for Doubtful Accounts Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers’ historical payment history, their current credit-worthiness and current economic trends. Receivables are considered past due after 180 days. Accounts Receivable are written off against the allowances only after exhaustive collection efforts. Other receivables represent mainly prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. |
Property and Equipment, net | (h) Property and Equipment, net Net property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 years Motor vehicles 5-10 years Furniture and office equipment 3-5 years Leasehold improvements Shorter of lease term or useful lives The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. Management has determined that there were no impairments at the balance sheet dates. |
Intangible Assets, net | (i) Intangible Assets, net Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives: Logistics platform 3 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. There was no such impairment as of September 30, 2018. |
Revenue Recognition | (j) Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (FASB ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2018. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company’s revenues are recognized at a point in time after all performance obligations are satisfied. ● Revenues from inland transportation management services are recognized when commodities are being released from the customers’ warehouse. ● Revenues from ship management services are recognized when the related contractual services are rendered. ● Revenues from freight logistic services are recognized when the related contractual services are rendered. ● Revenues from container trucking services are recognized when the related contractual services are rendered. |
Taxation | (k) Taxation Because the Company and its subsidiaries and Sino-China are incorporated in different jurisdictions, they file separate income tax returns. The Company uses the liability method of accounting for income taxes in accordance with US Generally Accepted Accounting Principles (“US GAAP”). Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of September 30, 2018 and June 30 2018, respectively. Income tax returns for the years prior to 2015 are no longer subject to examination by US tax authorities. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused the Company to re-measure all U.S. deferred income tax assets and liabilities for temporary differences and net operating loss (“NOL”) carryforwards and recorded a one-time transition tax expense. PRC Enterprise Income Tax PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles (“PRC GAAP”) at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC. PRC Business Tax and Surcharges Revenues from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to the PRC business tax of 5%. Business tax and surcharges are paid on gross revenues generated from shipping agency services minus the costs of services which are paid on behalf of the customers. In addition, under the PRC regulations, the Company’s PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the calculated business tax payments. The Company’s PRC subsidiaries and affiliates report revenues net of PRC’s business tax and surcharges for all the periods presented in the consolidated statements of operations. |
Earnings (loss) per Share | (l) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common shares of the Company by the weighted average number of common shares of the Company outstanding during the applicable period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares of the Company were exercised or converted into common shares of the Company. Common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. For the three months ended September 30, 2018 there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss. For the three months ended September 30, 2017, the effect of potential shares of common stock of the Company was dilutive since the exercise prices for options and warrants were lower than the average market price for the related periods. As a result, a total of 52,090 of unexercised options and warrants were dilutive for the three months ended September 30, 2017 and were included in the computation of diluted EPS. |
Comprehensive Income (loss) | (m) Comprehensive Income (loss) The Company reports comprehensive income (loss) in accordance with the FASB issued authoritative guidance which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Comprehensive income (loss), as defined, includes all changes in equity during a period from non-owner sources. |
Stock-based Compensation | (n) Stock-based Compensation Valuations are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. |
Risks and Uncertainties | (o) Risks and Uncertainties The Company’s business, financial position and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Moreover, the Company’s ability to grow its business and maintain its profitability could be negatively affected by the nature and extent of services provided to its major customers, Tianjin Zhiyuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) and Tengda Northwest Ferroalloy Co., Ltd. (“Tengda Northwest”). |
Recent Accounting Pronouncements | (p) Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”) which revises accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the balance sheet. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify how to apply certain aspects of the new leases standard. The amendments address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other issues. In addition, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, 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. The Company does not believe the adoption of this ASU would have a material effect on the Company’s unaudited condensed consolidated financial statements. On July 1, 2018, the Company has adopted this ASU. In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock compensation (Topic 718): Scope of modification accounting” (“ASU 2017-09”). The purpose of the amendment is to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. For all entities that offer share based payment awards, ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. On July 1, 2018, the Company has adopted this ASU. The Company does not believe the adoption of this ASU would have a material effect on the Company’s unaudited condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The guidance largely aligns the accounting for share-based payment awards issued to employees and nonemployees, whereby the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The ASU is required to be applied on a prospective basis to all new awards granted after the date of adoption. The Company is still evaluating the effect that this guidance but does not expect the standard to have a material impact on its unaudited condensed 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 unaudited condensed consolidated financial statements. |
Reclassification | (q) Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation mainly reclassifying advance to suppliers to prepaid expenses – long term (see Note 4 and 5). These reclassifications have no effect on the reported revenues, net income or total assets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Sino-China's assets and liabilities | September 30, June 30, 2018 2018 Total current assets $ 16,292 $ 3,434,850 Total assets 125,897 3,992,131 Total current liabilities 30,609 21,979 Total liabilities 30,609 21,979 |
Schedule of translation of foreign currency exchange rates | September 30, 2018 June 30, 2018 Three months ended Foreign currency Balance Sheet Balance 2018 Profits/Loss 2017 Profits/Loss RMB:1USD 6.8678 6.6186 6.8027 6.6704 AUD:1USD 1.3842 1.3505 1.3678 1.2669 HKD:1USD 7.8281 7.8442 7.8452 7.8147 CAD:1USD 1.2901 1.3141 1.3069 1.2537 |
Schedule of estimated useful lives | Buildings 20 years Motor vehicles 5-10 years Furniture and office equipment 3-5 years Leasehold improvements Shorter of lease term or useful lives |
Schedule of intangible assets estimated useful lives | Logistics platform 3 years |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of net accounts receivable | September 30, June 30, 2018 2018 Trade accounts receivable $ 13,836,120 $ 10,111,081 Less: allowances for doubtful accounts (2,635,206 ) (1,682,228 ) Accounts receivables, net $ 11,200,914 $ 8,428,853 |
Schedule of movement of allowance for doubtful accounts | September 30, June 30, Beginning balance $ 1,682,228 $ 185,821 Provision for doubtful accounts 955,897 1,519,122 Less: write-off/recovery - (24,101 ) Exchange rate effect (2,919 ) 1,386 Ending balance $ 2,635,206 $ 1,682,228 |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Advances to Suppliers [Abstract] | |
Schedule of advances to suppliers - third parties | September 30, June 30, 2018 2018 Freight fees (1) $ 1,492,091 $ 564,365 Other - 140,513 Total advances to suppliers-third parties $ 1,492,091 $ 704,878 (1) The prepaid freight fee is the Company’s advances made for various shipping costs for shipments from October to December of 2018. |
Schedule of advances to suppliers - related party | September 30, June 30, 2018 2018 Freight fees $ - $ 3,414,619 Total advances to suppliers-related party $ - $ 3,414,619 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | September 30, June 30, 2018 2018 Advance to employees $ 280,652 $ 355,294 Prepaid income taxes - 800 Other (including prepaid insurance, rent, listing fees) 173,206 232,345 Deposit for leasehold improvement on IT infrastructure facility (1) 422,252 438,151 Deposit for ERP (2) 437,357 437,357 Deposit for IT infrastructure (3) 1,002,750 1,002,750 Total 2,316,217 2,466,697 Less: current portion (453,858 ) (588,439 ) Total noncurrent portion $ 1,862,359 $ 1,878,258 (1) The Company paid a $422,252 deposit for leasehold improvements on its IT infrastructure facility including upgrading the server room of its Shanghai office. The total project cost is approximately $580,000 and is expected to be completed in October 2019. (2) On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye Technology Ltd Co. (“Tianjin Anboweiye”), to develop a more complete ERP system based on the Company’s current operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company paid a $437,357 deposit to Tianjin Anboweiye. The total contract price for phase one amounted to RMB 4,000,000, approximately USD 580,000. The project is currently in the planning and design stage. The Company expects the planning stage will be completed in March 2019 and will then start the development stage. The remaining balance will be settled upon completion of services in fiscal year 2021. (3) On June 22, 2018, the Company entered into contract to improve its IT infrastructure. The total contract consideration for the services is $1.2 million and the Company paid a deposit of $1.0 million. The consideration is allocated as follows: $420,000 for hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up, and $240,000 for continuing integration with the ERP system and data management for two years. The system is currently in the installation stage but is not yet completed. |
Other Long-Term Assets - Depo_2
Other Long-Term Assets - Deposits (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Other Long-term Assets - Deposits | |
OTHER LONG-TERM ASSETS - DEPOSITS | September 30, June 30, 2018 2018 Rental and utilities deposits $ 59,820 $ 59,777 Freight logistic deposits (1) 2,993,362 83,526 Total other long-term assets - deposits $ 3,053,182 $ 143,303 (1) Certain customers require the Company to pay deposits for the security of the shipments and merchandise. These deposits are refundable at the end of the contract terms. Approximately $2.91 million (RMB 20 million) was paid to BaoSteel Resources Co., Ltd. (“BaoSteel”) according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise as well as any non-performance on the part of the Company and its vendors. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of net property and equipment | September 30, June 30, 2018 2018 Land and buildings $ 195,991 $ 203,371 Motor vehicles 575,518 598,094 Computer equipment 162,907 165,561 Office equipment 74,112 76,065 Furniture and fixtures 162,270 165,047 System software 116,305 120,485 Leasehold improvements (1) 798,307 828,365 Total 2,085,410 2,156,988 Less: Accumulated depreciation and amortization (1,177,112 ) (1,200,559 ) Property and equipment, net $ 908,298 $ 956,429 (1) The Company completed its leasehold improvement for its new Ningbo office in June, 2018. The Company subsequently entered into a renegotiation of the lease term with the lessor and the leasehold improvement is subject to inspection and approval by the lessor. The office is not currently in use and thus no amortization expenses for the leasehold improvement was recorded for the period ended September 30, 2018. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Intangible Assets, Net [Abstract] | |
Schedule of intangible assets | September 30, June 30, 2018 2018 Full service logistics platforms $ 190,000 $ 190,000 Less: Accumulated amortization (52,778 ) (36,944 ) Intangible asset, net $ 137,222 $ 153,056 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of additional paid-in capital from common stock based on relative fair value | Series A Series B Annual dividend yield - - Expected life (years) 5.5 1.08 Risk-free interest rate 2.72 % 2.16 % Expected volatility 110.31 % 73.88 % |
Summary status of warrants outstanding and exercisable | Shares Weighted Average Warrants outstanding, as of June 30, 2018 4,000,000 $ 1.75 Issued - - Exercised - - Expired - - Warrants outstanding, as of September 30, 2018 4,000,000 $ 1.75 Warrants exercisable, as of September 30, 2018 4,000,000 $ 1.75 |
Summary of warants outstanding | Warrants Outstanding Warrants Exercisable Weighted Average Price Average Remaining Contractual 2018 Series A 2,000,000 2,000,000 $ 1.75 4.96 years 2018 Series B 2,000,000 2,000,000 $ 1.75 0.54 years |
Summary of options | Shares Weighted Average Options outstanding, as of June 30, 2018 85,000 $ 1.21 Granted - - Exercised - - Cancelled, forfeited or expired - - Options outstanding, as of September 30, 2018 85,000 $ 1.21 Options exercisable, as of September 30, 2018 85,000 $ 1.21 |
Summary of status of options outstanding and exercisable | Outstanding Options Exercisable Options Exercise Price Number Average Remaining Contractual Average Exercise Price Number Average Remaining Contractual Life $ 2.01 10,000 4.34 years $ 2.01 10,000 4.34 years $ 1.10 75,000 2.82 years $ 1.10 75,000 2.82 years 85,000 85,000 |
Non-Controlling Interest (Table
Non-Controlling Interest (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of non-controlling interest | September 30, June 30, 2018 2018 Sino-China: Original paid-in capital $ 356,400 $ 356,400 Additional paid-in capital 1,044 1,044 Accumulated other comprehensive income 266,213 142,900 Accumulated deficit (5,559,616 ) (5,521,638 ) (4,935,959 ) (5,021,294 ) Trans Pacific Logistics Shanghai Ltd. 229,856 208,466 Total $ (4,706,103 ) $ (4,812,828 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual obligations | Leases Contractual Total Twelve months ending September 30, 2019 $ 200,646 $ $ 200,646 2020 28,954 200,000 228,954 2021 142,643 142,643 $ 229,600 $ 342,643 $ 572,243 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax benefit (expense) | For the Three Months Ended September 30 2018 2017 Current U.S. $ (30,597 ) $ (60,162 ) Hong Kong - (4,309 ) PRC (97,437 ) (132,058 ) (128,034 ) (196,529 ) Deferred U.S. 194,500 (99,900 ) Total income tax benefit (expense) $ 66,466 $ (296,429 ) |
Schedule of deferred tax assets | September 30, June 30, Allowance for doubtful accounts $ 793,000 $ 540,000 Net operating loss 416,000 355,000 Total deferred tax assets 1,209,000 895,000 Valuation allowance (380,000 ) (260,500 ) Deferred tax assets, net - long-term $ 829,000 $ 634,500 |
Schedule of income taxes payable | September 30, June 30, 2018 2018 VAT tax payable $ 505,444 $ 531,337 Corporate income tax payable 2,090,155 2,104,232 Others 63,348 65,050 Total $ 2,658,947 $ 2,700,619 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of information by segment | For the Three Months ended September 30, 2018 Inland Freight Container Total Revenues - Related party $ 322,000 $ - $ - $ 322,000 - Third parties $ 598,000 $ 5,487,553 $ 91,980 $ 6,177,533 Total Revenues $ 920,000 $ 5,487,553 $ 91,980 $ 6,499,533 Cost of revenues $ 59,874 $ 4,965,992 $ 57,966 $ 5,083,832 Gross profit $ 860,126 $ 521,561 $ 34,014 $ 1,415,701 Depreciation and amortization $ 20,488 $ 476 $ 4,751 $ 25,715 Total capital expenditures $ - $ - $ 830 $ 830 For the Three Months ended September 30, 2017 Inland Freight Container Total Revenues - Related party $ 565,160 $ - $ - $ 565,160 - Third parties $ 853,306 $ 3,508,704 $ 452,841 $ 4,814,851 Total Revenues $ 1,418,466 $ 3,508,704 $ 452,841 $ 5,380,011 Cost of revenues $ 182,150 $ 3,140,592 $ 343,176 $ 3,665,918 Total Gross profit $ 1,236,316 $ 368,112 $ 109,665 $ 1,714,093 Depreciation and amortization $ 7,661 $ 475 $ 5,067 $ 13,203 Total capital expenditures $ - $ 5,077 $ - $ 5,077 |
Schedule of segment reporting total assets | September 30, June 30, 2018 2018 Inland Transportation Management Services $ 14,305,487 $ 18,338,099 Freight Logistic Services 90,709 161,667 Container Trucking Services 7,747,419 7,228,209 Bulk Cargo Container Services 188,944 429,852 Total Assets $ 22,332,559 $ 26,157,827 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of outstanding amounts due from related parties | September 30, June 30, 2018 2018 Tianjin Zhiyuan Investment Group Co., Ltd. $ 1,512,589 $ 2,319,993 Less: allowance for doubtful accounts (151,259 ) (231,999 ) Total $ 1,361,330 $ 2,087,994 |
Schedule of outstanding amounts advance to suppliers-related party | September 30, June 30, 2018 2018 Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd. - 3,414,619 Total $ - $ 3,414,619 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) | Sep. 03, 2018 |
Organization and Nature of Business (Textual) | |
Ownership and joint venture equity, percentage | 51.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Schedule of Sino-China's assets and liabilities | ||
Total current assets | $ 15,542,498 | $ 22,392,281 |
Total assets | 22,332,559 | 26,157,827 |
Total current liabilities | 3,729,770 | 6,622,553 |
Total liabilities | 3,729,770 | 6,622,553 |
Sino - China [Member] | ||
Schedule of Sino-China's assets and liabilities | ||
Total current assets | 16,292 | 3,434,850 |
Total assets | 125,897 | 3,992,131 |
Total current liabilities | 30,609 | 21,979 |
Total liabilities | $ 30,609 | $ 21,979 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Rmb [Member] | Foreign Currency Gain (Loss) [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 6.8027 | 6.6704 | |
Aud [Member] | Foreign Currency Gain (Loss) [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 1.3678 | 1.2669 | |
Hkd [Member] | Foreign Currency Gain (Loss) [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 7.8452 | 7.8147 | |
Cad [Member] | Foreign Currency Gain (Loss) [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 1.3069 | 1.2537 | |
Balance Sheet [Member] | Rmb [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 6.8678 | 6.6186 | |
Balance Sheet [Member] | Aud [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 1.3842 | 1.3505 | |
Balance Sheet [Member] | Hkd [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 7.8281 | 7.8442 | |
Balance Sheet [Member] | Cad [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 1.2901 | 1.3141 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) | 3 Months Ended |
Sep. 30, 2018 | |
Buildings [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 20 years |
Leasehold improvements [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment | Shorter of lease term or useful lives |
Maximum [Member] | Furniture and office equipment | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 5 years |
Maximum [Member] | Motor vehicles [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 10 years |
Minimum [Member] | Furniture and office equipment | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 3 years |
Minimum [Member] | Motor vehicles [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) | 3 Months Ended |
Sep. 30, 2018 | |
Logistics platform | |
Summary of Significant Accounting Policies [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 22, 2017 | Sep. 30, 2018 | Jun. 30, 2018 | |
Summary of Significant Accounting Policies (Textual) | |||
Cash balance at U.S. financial institutions, not insured by the FDIC | $ 239,535 | $ 6,205,960 | |
Cash balance at U.S. financial institutions, FDIC insured amount | $ 167,283 | $ 848,657 | |
Percentage of business tax | 5.00% | ||
Percentage of construction taxes | 7.00% | ||
Percentage of education surcharges | 3.00% | ||
Unexercised options included in the computation of diluted earnings per share | 52,090 | ||
Percentage of income tax | 25.00% | ||
Corporate tax rates effective during the period, description | The U.S. corporate tax rate decreased from 35% to 21%. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. | ||
Compensation paid | The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately USD $64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of September 30, 2018 and June 30, 2018, cash balance of $552,133 and $9,601, respectively, were maintained at financial institutions in Hong Kong and approximately $64,000 were insured by the Hong Kong Deposit Protection Board.</p>" id="sjs-C12"><p style="margin: 0pt">The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately USD $64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of September 30, 2018 and June 30, 2018, cash balance of $552,133 and $9,601, respectively, were maintained at financial institutions in Hong Kong and approximately $64,000 were insured by the Hong Kong Deposit Protection Board.</p> | ||
Sino - China [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Percentage of net income | 90.00% |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 13,836,120 | $ 10,111,081 |
Less: allowances for doubtful accounts | (2,635,206) | (1,682,228) |
Accounts receivables, net | $ 11,200,914 | $ 8,428,853 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Receivables [Abstract] | ||
Beginning balance | $ 1,682,228 | $ 185,821 |
Provision for doubtful accounts | 955,897 | 1,519,122 |
Less: write-off/recovery | (24,101) | |
Exchange rate effect | (2,919) | 1,386 |
Ending balance | $ 2,635,206 | $ 1,682,228 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Accounts Receivable, Net (Textual) | |||
Provision for doubtful accounts | $ 955,897 | $ 1,519,122 | |
Recovery of doubtful accounts | $ 871,081 | $ (24,536) |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | |
Schedule of advances to suppliers | |||
Freight fees | [1] | $ 1,492,091 | $ 564,365 |
Others | 140,513 | ||
Total advances to suppliers-third parties | $ 1,492,091 | $ 704,878 | |
[1] | The prepaid freight fee is the Company's advances made for various shipping costs for shipments from October to December of 2018. |
Advances to Suppliers (Details
Advances to Suppliers (Details 1) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Schedule of advances to suppliers - related party | ||
Freight fees | $ 3,414,619 | |
Total advances to suppliers-related party | $ 3,414,619 |
Advances to Suppliers (Detail_2
Advances to Suppliers (Details Textual) - USD ($) | Jun. 22, 2018 | Sep. 30, 2018 | Jun. 30, 2018 |
Advances to Suppliers (Textual) | |||
Paid of deposits | $ 1,000,000 | ||
Deposit to Tianjin Anboweiye | $ 437,357 | ||
Date of settlement description | The remaining balance will be settled upon completion of services in fiscal year 2021. | ||
Total contract for services | $ 1,200,000 | ||
IT infrastructure contract, description | The consideration is allocated as follows: $420,000 for hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up, and $240,000 for continuing integration with the ERP system and data management for two years. | ||
Supplemental agreement and service fee | $ 575,115 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Advance to employees | $ 280,652 | $ 355,294 | |
Prepaid income taxes | 800 | ||
Other (including prepaid insurance, rent, listing fees) | 173,206 | 232,345 | |
Deposit for leasehold improvement on IT infrastructure facility | [1] | 422,252 | 438,151 |
Deposit for ERP | [2] | 437,357 | 437,357 |
Deposit for IT infrastructure | [3] | 1,002,750 | 1,002,750 |
Total | 2,316,217 | 2,466,697 | |
Less: current portion | (453,858) | (588,439) | |
Total noncurrent portion | $ 1,862,359 | $ 1,878,258 | |
[1] | The Company paid a $422,252 deposit for leasehold improvements on its IT infrastructure facility including upgrading the server room of its Shanghai office. The total project cost is approximately $580,000 and is expected to be completed in October 2019. | ||
[2] | On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye Technology Ltd Co. ("Tianjin Anboweiye"), to develop a more complete ERP system based on the Company's current operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company paid a $437,357 deposit to Tianjin Anboweiye. The total contract price for phase one amounted to RMB 4,000,000, approximately USD 580,000. The project is currently in the planning and design stage. The Company expects the planning stage will be completed in March 2019 and will then start the development stage. The remaining balance will be settled upon completion of services in fiscal year 2021. | ||
[3] | On June 22, 2018, the Company entered into contract to improve its IT infrastructure. The total contract consideration for the services is $1.2 million and the Company paid a deposit of $1.0 million. The consideration is allocated as follows: $420,000 for hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up, and $240,000 for continuing integration with the ERP system and data management for two years. The system is currently in the installation stage but is not yet completed. |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets (Details Textual) - USD ($) | Jun. 22, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | |
Prepaid Expenses and Other Assets (Textual) | ||||
Deposit for leasehold improvement on IT infrastructure facility | [1] | $ 422,252 | $ 438,151 | |
Total cost of the project cost | 580,000 | |||
Paid of deposits | $ 1,000,000 | |||
Deposit to Tianjin Anboweiye | $ 437,357 | |||
Date of settlement description | The remaining balance will be settled upon completion of services in fiscal year 2021. | |||
Total contract for services | $ 1,200,000 | |||
IT infrastructure contract, description | The consideration is allocated as follows: $420,000 for hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up, and $240,000 for continuing integration with the ERP system and data management for two years. | |||
Supplemental agreement and service fee | $ 575,115 | |||
Rmb [Member] | ||||
Prepaid Expenses and Other Assets (Textual) | ||||
Deposit to Tianjin Anboweiye | $ 4,000,000 | |||
[1] | The Company paid a $422,252 deposit for leasehold improvements on its IT infrastructure facility including upgrading the server room of its Shanghai office. The total project cost is approximately $580,000 and is expected to be completed in October 2019. |
Other Long-Term Assets - Depo_3
Other Long-Term Assets - Deposits (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | |
Other Longterm Assets Deposits Details Abstract | |||
Rental and utilities deposits | $ 59,820 | $ 59,777 | |
Freight logistic deposits | [1] | 2,993,362 | 83,526 |
Total other long-term assets - deposits | $ 3,053,182 | $ 143,303 | |
[1] | Certain customers require the Company to pay deposits for the security of the shipments and merchandise. These deposits are refundable at the end of the contract terms. Approximately $2.91 million (RMB 20 million) was paid to BaoSteel Resources Co., Ltd. (''BaoSteel'') according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise as well as any non-performance on the part of the Company and its vendors. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | |
Total | $ 2,085,410 | $ 2,156,988 | |
Less: Accumulated depreciation and amortization | (1,177,112) | (1,200,559) | |
Property and equipment, net | 908,298 | 956,429 | |
Leasehold improvements [Member] | |||
Total | [1] | 798,307 | 828,365 |
Furniture and fixtures [Member] | |||
Total | 162,270 | 165,047 | |
Office equipment [Member] | |||
Total | 74,112 | 76,065 | |
Computer equipment [Member] | |||
Total | 162,907 | 165,561 | |
Motor vehicles [Member] | |||
Total | 575,518 | 598,094 | |
Land and buildings [Member] | |||
Total | 195,991 | 203,371 | |
Computer equipment [Member] | |||
Total | $ 116,305 | $ 120,485 | |
[1] | The Company completed its leasehold improvement for its new Ningbo office in June, 2018. The Company subsequently entered into a renegotiation of the lease term with the lessor and the leasehold improvement is subject to inspection and approval by the lessor. The office is not currently in use and thus no amortization expenses for the leasehold improvement was recorded for the period ended September 30, 2018. |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Property and Equipment, Net (Textual) | ||
Depreciation and amortization expense | $ 9,882 | $ 13,203 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Intangible Assets, Net [Abstract] | ||
Full service logistics platforms | $ 190,000 | $ 190,000 |
Less: Accumulated amortization | (52,778) | (36,944) |
Intangible asset, net | $ 137,222 | $ 153,056 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Intangible Assets, Net (Textual) | ||
Amortization expense of intangible assets | $ 15,833 | $ 0 |
Equity (Details)
Equity (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Series A [Member] | |
Auction Market Preferred Securities, Stock Series [Line Items] | |
Annual dividend yield | |
Expected life (years) | 5 years 6 months |
Risk-free interest rate | 2.72% |
Expected volatility | 110.31% |
Series B [Member] | |
Auction Market Preferred Securities, Stock Series [Line Items] | |
Annual dividend yield | |
Expected life (years) | 1 year 29 days |
Risk-free interest rate | 2.16% |
Expected volatility | 73.88% |
Equity (Details 1)
Equity (Details 1) - Warrant [Member] | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares | |
Warrants outstanding, beginning balance | shares | 4,000,000 |
Issued | shares | |
Exercised | shares | |
Expired | shares | |
Warrants outstanding, ending balance | shares | 4,000,000 |
Warrants exercisable | shares | 4,000,000 |
Weighted Average Exercise Price | |
Warrants outstanding,weighted average exercise price, beginning balance | $ / shares | $ 1.75 |
Issued | $ / shares | |
Exercised | $ / shares | |
Expired | $ / shares | |
Warrants outstanding, weighted average exercise price, ending balance | $ / shares | 1.75 |
Warrants exercisable, weighted average exercise price | $ / shares | $ 1.75 |
Equity (Details 2)
Equity (Details 2) | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Warrant [Member] | |
Warrants Exercisable | shares | 4,000,000 |
Weighted Average Exercise Price | $ / shares | $ 1.75 |
Series A [Member] | |
Warrants Exercisable | shares | 2,000,000 |
Weighted Average Exercise Price | $ / shares | $ 1.75 |
Average Remaining Contractual Life | 4 years 11 months 15 days |
Series B [Member] | |
Warrants Exercisable | shares | 2,000,000 |
Weighted Average Exercise Price | $ / shares | $ 1.75 |
Average Remaining Contractual Life | 6 months 14 days |
Equity (Details 3)
Equity (Details 3) - Equity Option [Member] | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Granted | |
Shares, Exercised | |
Shares, Cancelled, forfeited or expired | |
Shares, Options outstanding, Ending | 85,000 |
Shares, Options exercisable | 85,000 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Cancelled, forfeited or expired | $ / shares | |
Weighted Average Exercise Price, Options outstanding, Ending | $ / shares | $ 1.21 |
Equity (Details 4)
Equity (Details 4) - Equity Option [Member] | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Outstanding Options, Exercise Price | $ / shares | $ 1.21 |
Outstanding Options, Number | 85,000 |
Exercisable Options, Number | 85,000 |
Exercise Price Range One [Member] | |
Outstanding Options, Exercise Price | $ / shares | $ 2.01 |
Outstanding Options, Number | 10,000 |
Outstanding Options, Average Remaining Contractual Life | 4 years 7 months 2 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 2.01 |
Exercisable Options, Number | 10,000 |
Exercisable Options, Average Remaining Contractual Life | 4 years 7 months 2 days |
Exercise Price Range Two [Member] | |
Outstanding Options, Exercise Price | $ / shares | $ 1.10 |
Outstanding Options, Number | 75,000 |
Outstanding Options, Average Remaining Contractual Life | 3 years 26 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 1.10 |
Exercisable Options, Number | 75,000 |
Exercisable Options, Average Remaining Contractual Life | 3 years 26 days |
Equity (Details Textual)
Equity (Details Textual) | Jun. 07, 2018USD ($)shares | Mar. 14, 2018USD ($)$ / sharesshares | Mar. 12, 2018USD ($)$ / sharesshares | Oct. 23, 2017$ / sharesshares | May 05, 2015 | Sep. 21, 2018USD ($)$ / sharesshares | Apr. 26, 2018shares | Oct. 27, 2017USD ($)shares | Mar. 22, 2017USD ($)$ / sharesshares | Feb. 28, 2017shares | Jul. 26, 2016USD ($)Employees$ / sharesshares | May 23, 2016shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2013USD ($) |
Equity (Textual) | |||||||||||||||
Consulting expenses | $ 189,708 | ||||||||||||||
General and administrative expenses | 817,208 | 62,374 | |||||||||||||
Placement agent fees | $ 2,585,091 | ||||||||||||||
Fair value of warrants | 1,074,140 | ||||||||||||||
Warrant exercisable, description | The Series “A” warrants shall be initially exercisable beginning on September 14, 2018, and expire five and a half (5.5) years from the date of issuance. The Series B warrants shall be initially exercisable beginning on September 14, 2018, and expire thirteen (13) months from the date of issuance. | ||||||||||||||
Stock option expense | 473,000 | ||||||||||||||
Two thousand fourteen Stock incentive plan One [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Options granted | shares | 150,000 | ||||||||||||||
Number of employees | Employees | 2 | ||||||||||||||
Options vesting period | 1 year | ||||||||||||||
Exercise price of options | $ / shares | $ 1.1 | ||||||||||||||
Grant date fair value of options | $ / shares | $ 0.77 | ||||||||||||||
Volatility rate | 99.68% | ||||||||||||||
Risk free interest rate | 1.15% | ||||||||||||||
Expected life | 5 years | ||||||||||||||
Options exercised | shares | 75,000 | ||||||||||||||
Fair value of options | $ 11,597,900 | ||||||||||||||
Two thousand fourteen Stock incentive plan One [Member] | General and Administrative Expense [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Options granted | shares | 10,000 | ||||||||||||||
Options vesting period | 10 years | ||||||||||||||
Exercise price of options | $ / shares | $ 2.01 | ||||||||||||||
Two Zero One Three Grants [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Volatility rate | 452.04% | ||||||||||||||
Risk free interest rate | 0.88% | ||||||||||||||
Expected life | 5 years | ||||||||||||||
Amortized stock option expense | 388,000 | $ 0 | |||||||||||||
Stock option expense | $ 9,665 | ||||||||||||||
Fair value of options | $ 1,940,000 | ||||||||||||||
Warrant [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Issuance of common stock, shares | shares | 4,000,000 | ||||||||||||||
Service agreement [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Fair value of common stock | $ 508,000 | ||||||||||||||
Issuance of common stock, shares | shares | 400,000 | ||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Sale of stock, Shares | shares | 2,000,000 | ||||||||||||||
Exercise price per share | $ / shares | $ 1.50 | ||||||||||||||
Amount of sale of stock | $ 3,000,000 | ||||||||||||||
Sale of stock, Description | <font style="font: 10pt Times New Roman, Times, Serif">The placement agent received a cash commission fee equal to 7.5% of the gross proceeds. The offering closed on March 14, 2018. The offering of the 2 million shares was made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-222098), which was originally filed with the SEC on December 15, 2017, and was declared effective by the SEC on February 16, 2018. The Company agreed in the purchase agreement that it would not issue any common stock for 60 calendar days following the closing of the offering and each of the Company’s executive officers and directors agreed to a lock-up period of 60 days from the date of the purchase agreement.</font></p>" id="sjs-D46"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The placement agent received a cash commission fee equal to 7.5% of the gross proceeds. The offering closed on March 14, 2018. The offering of the 2 million shares was made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-222098), which was originally filed with the SEC on December 15, 2017, and was declared effective by the SEC on February 16, 2018. The Company agreed in the purchase agreement that it would not issue any common stock for 60 calendar days following the closing of the offering and each of the Company’s executive officers and directors agreed to a lock-up period of 60 days from the date of the purchase agreement.</font></p> | ||||||||||||||
Series A warrants [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Common stock price per share | $ / shares | $ 1.75 | ||||||||||||||
Sale of stock, Shares | shares | 2,000,000 | ||||||||||||||
Series B warrants [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Common stock price per share | $ / shares | $ 1.75 | ||||||||||||||
Sale of stock, Shares | shares | 2,000,000 | ||||||||||||||
Consultants [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Common stock issued for services, shares | shares | 430,000 | 250,000 | 250,000 | ||||||||||||
Common stock price per share | $ / shares | $ 1.10 | ||||||||||||||
Restricted common stock value issued | $ 632,500 | ||||||||||||||
Fair value of common stock | $ 473,000 | ||||||||||||||
Restricted share price | $ / shares | $ 2.53 | ||||||||||||||
Service agreement period | 18 months | ||||||||||||||
Employees [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Shares vested | 364,000 | ||||||||||||||
Shares of restricted common stock issued | shares | 130,000 | ||||||||||||||
Restricted common stock vesting, description | One quarter of the total number of common shares shall become vested on each of November 16, 2017, February 16, 2018, May 16, 2018 and August 16, 2018. | ||||||||||||||
Compensation expenses | 91,000 | ||||||||||||||
Restricted share price | $ / shares | $ 2.80 | ||||||||||||||
Legal Expenses | 63,500 | ||||||||||||||
Options vesting, description | One quarter of the total number of common shares shall become vested on each of November 16, 2017, February 16, 2018, May 16, 2018 and August 16, 2018. | ||||||||||||||
Consultants Four [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Consulting expenses | 137,000 | ||||||||||||||
Shares of restricted common stock issued | shares | 200,000 | ||||||||||||||
Restricted common stock value issued | $ 548,000 | ||||||||||||||
Consultants Three [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Consulting expenses | 52,708 | $ 52,709 | |||||||||||||
Consultants Five [Member] | |||||||||||||||
Equity (Textual) | |||||||||||||||
Consulting expenses | $ 473,000 |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Noncontrolling Interest [Line Items] | ||
Original paid-in capital | $ 24,253,830 | $ 23,717,330 |
Additional paid-in capital | 2,036,281 | 1,755,573 |
Accumulated other comprehensive income | (812,063) | (272,407) |
Accumulated deficit | (1,751,618) | (434,856) |
Total | (4,706,103) | (4,812,828) |
Sino-Global Shipping Agency Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Original paid-in capital | 356,400 | 356,400 |
Additional paid-in capital | 1,044 | 1,044 |
Accumulated other comprehensive income | 266,213 | 142,900 |
Accumulated deficit | (5,559,616) | (5,521,638) |
Total | (4,935,959) | (5,021,294) |
Trans Pacific Logistics Shanghai Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Total | $ 229,856 | $ 208,466 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Sep. 30, 2018USD ($) |
Twelve months ending June 30, | |
2,019 | $ 200,646 |
2,020 | 228,954 |
2,021 | 142,643 |
Future minimum lease payments, amount | 572,243 |
Leases [Member] | |
Twelve months ending June 30, | |
2,019 | 200,646 |
2,020 | 28,954 |
2,021 | |
Future minimum lease payments, amount | 229,600 |
Contractual [Member] | |
Twelve months ending June 30, | |
2,019 | |
2,020 | 200,000 |
2,021 | 142,643 |
Future minimum lease payments, amount | $ 342,643 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) | Jun. 22, 2018 | Jan. 19, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Commitments and Contingency (Textual) | ||||
Operating lease agreements term | Apr. 16, 2020 | |||
Rental expenses | $ 56,358 | $ 64,862 | ||
Severance payments | 58,746 | $ 58,543 | ||
Contract costs amount | $ 1,200,000 | 580,000 | ||
Deposit paid | $ 1,000,000 | 437,357 | ||
Remaining paid | $ 200,000 | |||
Maturity date | Jun. 30, 2020 | Jun. 30, 2021 | ||
Lawsuit amount | $ 225,000 | |||
RMB [Member] | ||||
Commitments and Contingency (Textual) | ||||
Contract costs amount | $ 4,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Current | ||
Current income tax benefit (expense) | $ (128,034) | $ (196,529) |
Deferred | ||
Deferred income tax benefit (expense) | 194,500 | (99,900) |
Income tax benefit (expense) | 66,466 | (296,429) |
USA [Member] | ||
Current | ||
Current income tax benefit (expense) | (30,597) | (60,162) |
Deferred | ||
Deferred income tax benefit (expense) | 194,500 | 749,400 |
PRC [Member] | ||
Current | ||
Current income tax benefit (expense) | (97,437) | (132,058) |
Hong Kong [Member] | ||
Current | ||
Current income tax benefit (expense) | (4,309) | |
Deferred | ||
Deferred income tax benefit (expense) | $ (99,900) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Deferred tax assets | ||
Allowance for doubtful accounts | $ 793,000 | $ 540,000 |
Net operating loss | 416,000 | 355,000 |
Total deferred tax assets | 1,209,000 | 895,000 |
Valuation allowance | (380,000) | (260,500) |
Deferred tax assets, net - long-term | $ 829,000 | $ 634,500 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
VAT tax payable | $ 505,444 | $ 531,337 |
Corporate income tax payable | 2,090,155 | 2,104,232 |
Others | 63,348 | 65,050 |
Total | $ 2,658,947 | $ 2,700,619 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 22, 2017 | Sep. 30, 2018 | Jun. 30, 2018 | |
Income Taxes (Textual) | |||
Federal net operating losses utilization, amount | $ 230,000 | ||
Increase in valuation allowance | 119,500 | ||
Net operating loss | 48,000 | $ 1,531,000 | |
Net operating loss tax benefit | $ 48,000 | ||
Operating loss carry-forward expiry date | Sep. 30, 2036 | ||
Deferred tax assets blended tax rate | 21.00% | ||
Income tax subsequent adjustments, percentage | 21.00% | ||
Maximum [Member] | U.S. corporate tax [Member] | |||
Income Taxes (Textual) | |||
U.S. statutory federal rate | 35.00% | ||
Minimum [Member] | U.S. corporate tax [Member] | |||
Income Taxes (Textual) | |||
U.S. statutory federal rate | 21.00% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018SuppliersCustomers | Jun. 30, 2017SuppliersCustomers | |
Concentrations (Textual) | ||||
Number of customer | Customers | 3 | 3 | ||
Number of suppliers | Suppliers | 4 | 1 | ||
Costs of revenue [Member] | Major Supplier One [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 32.10% | 61.00% | ||
Costs of revenue [Member] | Major Supplier Two [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 20.30% | |||
Costs of revenue [Member] | Major Supplier Three [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 18.20% | |||
Costs of revenue [Member] | Major Supplier Four [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 12.60% | |||
Major Customer One [Member] | Revenues [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 27.80% | 47.00% | ||
Major Customer One [Member] | Accounts due from related parties [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 100.00% | |||
Major Customer Two [Member] | Revenues [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 22.20% | 16.00% | ||
Major Customer Two [Member] | Accounts receivable [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 30.10% | 64.00% | ||
Major Customer Three [Member] | Revenues [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 18.50% | 11.00% | ||
Major Customer Three [Member] | Accounts receivable [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 30.10% | 64.00% | ||
Major Customer Four [Member] | Accounts receivable [Member] | ||||
Concentrations (Textual) | ||||
Concentrations risks, percentage | 30.10% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||
- Related party | $ 322,000 | $ 565,160 |
- Third parties | 6,177,533 | 4,814,851 |
Total Revenues | 6,499,533 | 5,380,011 |
Cost of revenues | 5,083,832 | 3,665,918 |
Gross profit | 1,415,701 | 1,714,093 |
Depreciation and amortization | 25,715 | 13,203 |
Total capital expenditures | 830 | 5,077 |
Inland Transportation Management Services [Member] | ||
Revenues | ||
- Related party | 322,000 | 565,160 |
- Third parties | 598,000 | 853,306 |
Total Revenues | 920,000 | 1,418,466 |
Cost of revenues | 59,874 | 182,150 |
Gross profit | 860,126 | 1,236,316 |
Depreciation and amortization | 20,488 | 7,661 |
Total capital expenditures | ||
Freight Logistic Services [Member] | ||
Revenues | ||
- Related party | ||
- Third parties | 5,487,553 | 3,508,704 |
Total Revenues | 5,487,553 | 3,508,704 |
Cost of revenues | 4,965,992 | 3,140,592 |
Gross profit | 521,561 | 368,112 |
Depreciation and amortization | 476 | 475 |
Total capital expenditures | 5,077 | |
Container Trucking Services [Member] | ||
Revenues | ||
- Related party | ||
- Third parties | 91,980 | 452,841 |
Total Revenues | 91,980 | 452,841 |
Cost of revenues | 57,966 | 343,176 |
Gross profit | 34,014 | 109,665 |
Depreciation and amortization | 4,751 | 5,067 |
Total capital expenditures | $ 830 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 22,332,559 | $ 26,157,827 |
Inland Transportation Management Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 14,305,487 | 18,338,099 |
Freight Logistic Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 90,709 | 161,667 |
Container Trucking Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,747,419 | 7,228,209 |
Bulk Cargo Container Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 188,944 | $ 429,852 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 3 Months Ended |
Sep. 30, 2018Segments | |
Segment Reporting (Textual) | |
Number of operating segments | 3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Less: allowance for doubtful accounts | $ (151,259) | $ (231,999) |
Total | 1,361,330 | 2,087,994 |
Tianjin Zhiyuan Investment Group Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Total | $ 2,319,993 | $ 1,512,589 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Related Party Transaction [Line Items] | ||
Total | $ 3,414,619 | |
Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Total | $ 3,414,619 |
Related Party Transactions (D_3
Related Party Transactions (Details Textual) - USD ($) | Jul. 07, 2017 | Feb. 18, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Related Party Transactions (Textual) | ||||||
Revenue from related parties | $ 322,000 | $ 565,160 | ||||
Zhiyuan Hong Kong [Member] | ||||||
Related Party Transactions (Textual) | ||||||
Commission for transport services, description | Pursuant to the supplemental agreement, the Company agreed to make prepayments to the Buyer for its share of packaging and transporting costs related to the Project; in return, the Company received 15% of the cost incurred in the Project from the Buyer as a service fee. | The Company agreed to provide high-quality services, including the design of a detailed transportation plan as well as execution and necessary supervision of the plan at Zhiyuan Hong Kongs demand, in consideration for which the Company received a 1% to 1.25% transportation fee incurred in the Project as a commission for its services rendered. | ||||
Service fee | $ 575,115 | |||||
Zhiyuan Investment Group [Member] | ||||||
Related Party Transactions (Textual) | ||||||
Due to related prates amount | $ 1,512,589 | |||||
Zhiyuan Investment Group [Member] | Allowance For Doubtful Account [Member] | ||||||
Related Party Transactions (Textual) | ||||||
Concentrations risks, percentage | 10.00% | |||||
ACH Logistic [Member] | ||||||
Related Party Transactions (Textual) | ||||||
Due to related prates amount | $ 131,262 | |||||
Sales Revenue, Services, Net [Member] | Zhiyuan Investment Group [Member] | ||||||
Related Party Transactions (Textual) | ||||||
Concentrations risks, percentage | 5.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Nov. 07, 2018USD ($)shares |
Subsequent Event (Textual) | |
Shares of restricted common stock | shares | 50,000 |
Restricted common stock grant fair value | $ 65,000 |
Share purchase agreement, description | The per share price and number of shares to be issued is equal to 120% of the average closing price of the common stock on NASDAQ Stock Market over the five consecutive trading-day period immediately prior to the closing of the transaction. |
Subsequent event, description | The remaining service period from November 3, 2018 to May 2, 2019. |
Share Purchase Agreement [Member] | Sinco [Member] | |
Subsequent Event (Textual) | |
Aggregate gross proceeds | $ 1,000,000 |