Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Sino-Global Shipping America, Ltd. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 14,961,999 | |
Amendment Flag | false | |
Entity Central Index Key | 0001422892 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Transition Report | false | |
Entity File Number | 001-34024 | |
Entity Incorporation, State or Country Code | VA | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | |
Current assets | |||
Cash | $ 47,784,277 | $ 131,182 | |
Cryptocurrencies | 153,205 | ||
Accounts receivable, net | 137,835 | 1,155,948 | |
Other receivables, net | 580,268 | 51,034 | |
Advances to suppliers - third parties | 612,860 | 48,875 | |
Prepaid expenses and other current assets | 226,836 | 90,382 | |
Due from related party, net | 435,898 | ||
Total Current Assets | 49,495,281 | 1,913,319 | |
Property and equipment, net | 1,268,938 | 523,290 | |
Right-of-use assets | 381,743 | 300,114 | |
Intangible assets, net | 26,389 | ||
Other long-term assets - deposits | 3,242,613 | 2,974,990 | |
Total Assets | 54,388,575 | 5,738,102 | |
Current Liabilities | |||
Deferred revenue | 470,797 | 67,083 | |
Accounts payable | 673,054 | 487,692 | |
Lease liabilities - current | 193,799 | 204,391 | |
Taxes payable | 3,515,438 | 3,280,348 | |
Accrued expenses and other current liabilities | 719,297 | 1,643,319 | |
Loan payable - current | 8,660 | 126,032 | |
Total current liabilities | 5,581,045 | 5,808,865 | |
Lease liabilities - noncurrent | 212,366 | 132,699 | |
Loan payable - noncurrent | 147,240 | 154,438 | |
Total liabilities | 5,940,651 | 6,096,002 | |
Commitments and Contingencies | |||
Equity (Deficiency) | |||
Preferred stock, 2,000,000 shares authorized, no par value, no shares issued and outstanding as of March 31, 2021 and June 30, 2020, respectively | |||
Common stock, 50,000,000 shares authorized, no par value; 14,961,999 and 3,718,788 shares issued and outstanding as of March 31, 202 and June 30, 2020, respectively* | [1] | 82,555,700 | 28,414,992 |
Additional paid-in capital | 2,334,962 | 2,334,962 | |
Subscription receivable | (59,869) | ||
Accumulated deficit | (28,739,565) | (23,421,594) | |
Accumulated other comprehensive loss | (733,247) | (1,084,030) | |
Total Sino-Global Shipping America Ltd. Stockholders' Equity | 55,417,850 | 6,184,461 | |
Non-controlling Interest | (6,969,926) | (6,542,361) | |
Total Equity (Deficiency) | 48,447,924 | (357,900) | |
Total Liabilities and Equity (Deficiency) | $ 54,388,575 | $ 5,738,102 | |
[1] | Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, par value (in Dollars per share) | ||
Preferred stock, shares outstanding | ||
Preferred stock, shares issued | ||
Common stock, par value (in Dollars per share) | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 14,961,999 | 3,718,788 |
Common stock, shares outstanding | 14,961,999 | 3,718,788 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Statement [Abstract] | |||||
Net revenues | $ 953,194 | $ 1,353,979 | $ 3,974,433 | $ 5,161,329 | |
Cost of revenues | (1,098,922) | (889,107) | (3,882,612) | (2,328,156) | |
Gross profit | (145,728) | 464,872 | 91,821 | 2,833,173 | |
Selling expenses | (78,117) | (79,099) | (220,509) | (335,253) | |
General and administrative expenses | (1,523,745) | (952,661) | (3,541,414) | (2,746,180) | |
Impairment loss of fixed assets and intangible asset | (327,632) | ||||
Provision for doubtful accounts, net of recovery | (1,251,812) | (3,121,416) | (1,254,274) | (4,289,170) | |
Stock-based compensation | (346,439) | (1,252,756) | |||
Total operating expenses | (2,853,674) | (4,499,615) | (5,016,197) | (8,950,991) | |
Operating loss | (2,999,402) | (4,034,743) | (4,924,376) | (6,117,818) | |
Other income (expenses), net | (519,547) | 21,260 | (433,139) | 7,103 | |
Net loss before provision for income taxes | (3,518,949) | (4,013,483) | (5,357,515) | (6,110,715) | |
Income tax expense | (189,510) | (3,450) | (204,257) | ||
Net loss | (3,518,949) | (4,202,993) | (5,360,965) | (6,314,972) | |
Net loss attributable to non-controlling interest | (37,688) | (384,899) | (42,994) | (462,192) | |
Net loss attributable to Sino-Global Shipping America, Ltd. | (3,481,261) | (3,818,094) | (5,317,971) | (5,852,780) | |
Comprehensive loss | |||||
Net loss | (3,518,949) | (4,202,993) | (5,360,965) | (6,314,972) | |
Other comprehensive loss - foreign currency | (57,253) | (112,671) | (33,788) | (360,132) | |
Comprehensive loss | (3,576,202) | (4,315,664) | (5,394,753) | (6,675,104) | |
Less: Comprehensive loss attributable to non-controlling interest | (18,608) | (322,135) | (427,565) | (350,693) | |
Comprehensive loss attributable to Sino-Global Shipping America, Ltd. | $ (3,557,594) | $ (3,993,529) | $ (4,967,188) | $ (6,324,411) | |
Loss per share | |||||
Basic and diluted (in Dollars per share) | [1] | $ (0.32) | $ (1.08) | $ (0.82) | $ (1.73) |
Weighted average number of common shares used in computation | |||||
Basic and diluted (in Shares) | [1] | 10,973,823 | 3,547,631 | 6,511,318 | 3,375,035 |
[1] | Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Deficiency) (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional paid-in capital | Treasury Stock | Subscription receivable | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest | Total | |||
Balance at Jun. 30, 2019 | $ 26,523,830 | $ 2,066,906 | $ (417,538) | $ (6,968,700) | $ (671,106) | $ (5,173,622) | $ 15,359,770 | |||||
Balance (in Shares) at Jun. 30, 2019 | 3,210,907 | [1] | (35,099) | [1] | ||||||||
Stock based compensation to employee | $ 63,000 | 63,000 | ||||||||||
Stock based compensation to employee (in Shares) | 18,000 | [1] | [1] | |||||||||
Stock based compensation to consultants | $ 200,300 | 200,300 | ||||||||||
Stock based compensation to consultants (in Shares) | 48,000 | [1] | [1] | |||||||||
Amortization of shares issued to consultants | 180,209 | 180,209 | ||||||||||
Foreign currency translation | (646,211) | 142,544 | (503,667) | |||||||||
Net loss | (1,627,353) | (121,271) | (1,748,624) | |||||||||
Balance at Sep. 30, 2019 | $ 26,787,130 | 2,247,115 | $ (417,538) | (8,596,053) | (1,317,317) | (5,152,349) | 13,550,988 | |||||
Balance (in Shares) at Sep. 30, 2019 | [1] | 3,276,907 | (35,099) | |||||||||
Balance at Jun. 30, 2019 | $ 26,523,830 | 2,066,906 | $ (417,538) | (6,968,700) | (671,106) | (5,173,622) | 15,359,770 | |||||
Balance (in Shares) at Jun. 30, 2019 | 3,210,907 | [1] | (35,099) | [1] | ||||||||
Net loss | (6,314,972) | |||||||||||
Balance at Mar. 31, 2020 | $ 28,090,992 | 2,334,962 | (114,054) | (12,821,480) | (1,142,737) | (5,524,315) | 10,823,368 | |||||
Balance (in Shares) at Mar. 31, 2020 | [1] | 3,627,808 | ||||||||||
Balance at Sep. 30, 2019 | $ 26,787,130 | 2,247,115 | $ (417,538) | (8,596,053) | (1,317,317) | (5,152,349) | 13,550,988 | |||||
Balance (in Shares) at Sep. 30, 2019 | [1] | 3,276,907 | (35,099) | |||||||||
Stock based compensation to employee | $ 156,400 | 156,400 | ||||||||||
Stock based compensation to employee (in Shares) | [1] | 46,000 | ||||||||||
Stock based compensation to consultants | $ 282,500 | 282,500 | ||||||||||
Stock based compensation to consultants (in Shares) | [1] | 70,000 | ||||||||||
Amortization of shares issued to consultants | 52,708 | 52,708 | ||||||||||
Issuance of common stock to private investor | $ 500,500 | 500,500 | ||||||||||
Issuance of common stock to private investor (in Shares) | [1] | 100,100 | ||||||||||
Cancellation of treasury stock | $ (417,538) | $ 417,538 | ||||||||||
Cancellation of treasury stock (in Shares) | [1] | (35,099) | 35,099 | |||||||||
Foreign currency translation | 350,015 | (93,809) | 256,206 | |||||||||
Net loss | (407,333) | 43,978 | (363,355) | |||||||||
Balance at Dec. 31, 2019 | $ 27,308,992 | 2,299,823 | (9,003,386) | (967,302) | (5,202,180) | 14,435,947 | ||||||
Balance (in Shares) at Dec. 31, 2019 | [1] | 3,457,908 | ||||||||||
Stock based compensation to consultants | $ 282,500 | 282,500 | ||||||||||
Stock based compensation to consultants (in Shares) | [1] | 70,000 | ||||||||||
Amortization of shares issued to consultants | 35,139 | 35,139 | ||||||||||
Issuance of common stock to private investor | $ 499,500 | (114,054) | 385,446 | |||||||||
Issuance of common stock to private investor (in Shares) | [1] | 99,900 | ||||||||||
Foreign currency translation | (175,435) | 62,764 | (112,671) | |||||||||
Net loss | (3,818,094) | (384,899) | (4,202,993) | |||||||||
Balance at Mar. 31, 2020 | $ 28,090,992 | 2,334,962 | (114,054) | (12,821,480) | (1,142,737) | (5,524,315) | 10,823,368 | |||||
Balance (in Shares) at Mar. 31, 2020 | [1] | 3,627,808 | ||||||||||
Balance at Jun. 30, 2020 | $ 28,414,992 | 2,334,962 | (59,869) | (23,421,594) | (1,084,030) | (6,542,361) | (357,900) | |||||
Balance (in Shares) at Jun. 30, 2020 | 3,718,788 | [1] | ||||||||||
Issuance of common stock to private investor | $ 1,051,200 | 59,869 | 1,111,069 | |||||||||
Issuance of common stock to private investor (in Shares) | 720,000 | [1] | ||||||||||
Foreign currency translation | 191,251 | (198,824) | (7,573) | |||||||||
Net loss | (733,791) | (14,665) | (748,456) | |||||||||
Balance at Sep. 30, 2020 | $ 29,466,192 | 2,334,962 | (24,155,385) | (892,779) | (6,755,850) | (2,860) | ||||||
Balance (in Shares) at Sep. 30, 2020 | [1] | 4,438,788 | ||||||||||
Balance at Jun. 30, 2020 | $ 28,414,992 | 2,334,962 | (59,869) | (23,421,594) | (1,084,030) | (6,542,361) | (357,900) | |||||
Balance (in Shares) at Jun. 30, 2020 | 3,718,788 | [1] | ||||||||||
Net loss | (5,360,965) | |||||||||||
Balance at Mar. 31, 2021 | $ 82,555,700 | 2,334,962 | (28,739,565) | (733,247) | (6,969,926) | 48,447,924 | ||||||
Balance (in Shares) at Mar. 31, 2021 | 14,961,999 | [1] | [1] | |||||||||
Balance at Sep. 30, 2020 | $ 29,466,192 | 2,334,962 | (24,155,385) | (892,779) | (6,755,850) | (2,860) | ||||||
Balance (in Shares) at Sep. 30, 2020 | [1] | 4,438,788 | ||||||||||
Issuance of preferred stock to private investor | $ 1,427,600 | 1,427,600 | ||||||||||
Issuance of preferred stock to private investor (in Shares) | 860,000 | |||||||||||
Issuance of common stock to private investor | $ 4,322,330 | 4,322,330 | ||||||||||
Issuance of common stock to private investor (in Shares) | [1] | 1,560,000 | ||||||||||
Foreign currency translation | 235,865 | (204,827) | 31,038 | |||||||||
Net loss | (1,102,919) | 9,359 | (1,093,560) | |||||||||
Balance at Dec. 31, 2020 | $ 1,427,600 | $ 33,788,522 | 2,334,962 | (25,258,304) | (656,914) | (6,951,318) | 4,684,548 | |||||
Balance (in Shares) at Dec. 31, 2020 | 860,000 | 5,998,788 | [1] | [1] | ||||||||
Issuance of common stock to private investor | $ 42,535,678 | 42,535,678 | ||||||||||
Issuance of common stock to private investor (in Shares) | [1] | 6,740,456 | ||||||||||
Conversion of preferred stock into common stock | $ (1,427,600) | $ 1,427,600 | ||||||||||
Conversion of preferred stock into common stock (in Shares) | (860,000) | 860,000 | [1] | |||||||||
Exercise of stock warrants | $ 4,803,900 | 4,803,900 | ||||||||||
Exercise of stock warrants (in Shares) | [1] | 1,362,755 | ||||||||||
Foreign currency translation | (76,333) | 19,080 | (57,253) | |||||||||
Net loss | (3,481,261) | (37,688) | (3,518,949) | |||||||||
Balance at Mar. 31, 2021 | $ 82,555,700 | $ 2,334,962 | $ (28,739,565) | $ (733,247) | $ (6,969,926) | $ 48,447,924 | ||||||
Balance (in Shares) at Mar. 31, 2021 | 14,961,999 | [1] | [1] | |||||||||
[1] | Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net loss | $ (5,360,965) | $ (6,314,972) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 1,252,756 | |
Depreciation and amortization | 258,176 | 320,272 |
Non-cash lease expense | 121,198 | 113,985 |
Provision for doubtful accounts, net of recovery | 1,254,274 | 4,289,170 |
Impairment loss of fixed assets and intangible asset | 327,632 | |
Gain from loan forgiveness | (124,570) | |
Changes in assets and liabilities | ||
Cryptocurrencies | (153,205) | |
Notes receivable | 386,233 | |
Accounts receivable | (95,961) | 1,051,299 |
Other receivables | (938,250) | (5,882,569) |
Advances to suppliers - third parties | (555,146) | 11,820 |
Prepaid expenses and other current assets | (132,457) | 165,939 |
Other long-term assets - deposits | (194,871) | 89,274 |
Due from related parties | 100,000 | 413,408 |
Deferred revenue | 402,647 | |
Advances from customers | (1,496) | |
Accounts payable | 172,386 | 72,772 |
Taxes payable | 156,822 | 116,520 |
Lease liabilities | (133,802) | (118,256) |
Accrued expenses and other current liabilities | (931,353) | 65,094 |
Net cash used in operating activities | (6,155,077) | (3,641,119) |
Investing Activities | ||
Acquisition of property and equipment | (922,438) | (6,979) |
Net cash used in investing activities | (922,438) | (6,979) |
Financing Activities | ||
Proceeds from issuance of preferred stock | 1,427,600 | |
Proceeds from issuance of common stock | 52,772,977 | 885,946 |
Net cash provided by financing activities | 54,200,577 | 885,946 |
Effect of exchange rate fluctuations on cash | 530,033 | (237,386) |
Net increase (decrease) in cash | 47,653,095 | (2,999,538) |
Cash at the beginning of period | 131,182 | 3,142,650 |
Cash at the end of period | 47,784,277 | 143,112 |
Supplemental information | ||
Income taxes paid | 38,557 | |
Non-cash transactions of investing and financing activities | ||
Transfer of prepayment to intangible asset | 218,678 | |
Initial recognition of right-of-use assets and lease liabilities | $ 452,119 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [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 global shipping and freight logistics integrated solution provider. The Company provides tailored solutions and value-added services to its customers to drive efficiency 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 People’s Republic of China (the “PRC” or “China”) (including Hong Kong) and the U.S. where a majority of the Company’s clients are located. The Company operates in three operating segments including (1) shipping agency and management services, which are operated by its subsidiaries in the U.S.; (2) freight logistics services, which are operated by its subsidiaries in the PRC; (3) container trucking services, which are operated by its subsidiaries in the U.S. The outbreak of the novel coronavirus (COVID-19) starting from late January 2020 in the PRC has spread rapidly to many parts of the world. In March 2020, the World Health Organization declared the COVID-19 as a pandemic and has resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities in China and the U.S. for the past few months. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and its workforce are concentrated in China and the U.S., the Company’s business, results of operations, and financial condition have been adversely affected for the nine months ended March 31, 2021. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19. After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the Company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock. On December 14, 2020, the Company incorporated a new entity named “Blumargo IT Solution Ltd.” with 80% ownership in partnership with Tianjin Anboweiye Technology Co. to build up hi-tech and information-based logistic services to meet the higher and complicate demand of customers. On March 19, 2021, the Company established a wholly owned entity of named “Cullinan Global Logistics Inc” which was set up to support its freight logistics services in the U.S. Starting from March 2021, the Company entered the cryptocurrency sector. The Company plans to leverage information technology and other innovative technologies in its business platform. These types of technology may be helpful in expanding its traditional logistics service expertise. Starting from March 2, 2021, the Company accepts Bitcoin as a form of payment for its global shipping, freight, and logistics services. Payments made in Bitcoin will be made at the rate applicable at the payment date. On March 2, 2021, the Company entered into a purchase agreement (the "Agreement") with Hebei Yanghuai Technology Co., Ltd. ("Yanghuai") for the purchase of 2,783 digital currency mining servers. The total gross purchase price was $4.6 million. The total computing power will reach 50,440 t/s. After the transaction is completed, Yanghuai will manage and operate the servers at Yanghuai's site with no further charge from March 10, 2021 through March 9, 2022, after which time Sino-Global may engage Yanghuai to continue providing service for a fee. The first cash payment of approximately $0.9 million was paid within 15 days after the date of signing the Agreement. The second cash payment of approximately $0.9 million will be paid within 15 days after the date of acceptance of the servers and a special VAT invoice provided by Yanghuai. The remaining payment of approximately $2.8 million will be paid in 5 quarters within 10 days following the filing of Form 10-K or Form 10-Q for each of the Company’s financial quarters ending March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022, subject to reductions if Yanghuai fails to meet the monthly committed net profit. On March 24, 2021, the Company agreed to acquire a 60% ownership of Super Node LLC, which is a blockchain infrastructure developer and service provider, in cash or stock transaction for $5.0 million subject to valuation. The transaction is subject to the satisfaction of warranties and representations under the purchase agreement. This deal is expected to close around July 2021. Acquiring equity interest in Super Node LLC can further strengthens the Company’s capabilities and accelerates the buildout of its business as it pursues major opportunities in the rapidly growing cryptocurrency market and digital economy. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
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”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All intercompany transactions and balances have been 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 Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. Sino-China was designed to operate in China for the benefit of the Company. The Company does not receive any payment 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 income/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 in accordance with Accounting Standards Codification (“ASC”) 810-10, “Consolidation”. 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: March 31, June 30, 2021 2020 Current assets: Cash $ 30,119 $ 5,022 Total current assets 30,119 5,022 Deposits 1,734 1,608 Property and equipment, net 33,459 41,171 Total assets $ 65,312 $ 47,801 Current liabilities: Other payables and accrued liabilities $ 39,214 $ 39,919 Total liabilities $ 39,214 $ 39,919 (b) 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. (c) 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 unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. (d) Translation of Foreign Currency The accounts of the Company and its subsidiaries 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, Trans Pacific Shipping Ltd. and Trans Pacific Logistic Shanghai Ltd. report their financial positions and results of operations in Renminbi (“RMB”), its subsidiary Sino-Global Shipping Australia Pty Ltd., reports its financial positions and results of operations in Australian dollar (“AUD”), its subsidiary Sino-Global Shipping Hong Kong reports its financial positions and results of operations in Hong Kong dollar (“HKD”) and its subsidiary Sino-Global Shipping Canada, Inc. reports its financial positions and results of operations in Canadian Dollar (“CAD”). 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 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 sheets’ 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 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 March 31, 2021 and June 30, 2020 and for the three and nine months ended March 31, 2021 and 2020 are as follows: March 31, June 30, 2020 Three months ended March 31, Nine months ended March 31, Foreign currency Balance Sheet Balance 2021 Profits/Loss 2020 Profits/Loss 2021 Profits/Loss 2020 Profits/Loss RMB:1USD 6.5528 7.0651 6.4834 6.9798 6.6769 7.0130 AUD:1USD 1.3135 1.4514 1.2943 1.5209 1.3541 1.4810 HKD:1USD 7.7750 7.7505 7.7573 7.7716 7.7533 7.8091 CAD:1USD 1.2571 1.3617 1.2667 1.3417 1.3010 1.3272 (e) Cash Cash consists of cash on hand and cash in bank which are unrestricted as to withdrawal or use. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of March 31, 2021 and June 30, 2020, cash balances of $47,768,630 and $126,720, respectively, were maintained at financial institutions. In China, the deposit insurance system only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). For the balance maintained at U.S. financial institutions, the Federal Deposit Insurance Corporation as it only insured deposits up to $250,000. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of March 31, 2021 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $47,112,996 and $8,780, respectively. (f) Cryptocurrencies Cryptocurrencies, mainly bitcoin, are included in current assets in the accompanying unaudited condensed consolidated balance sheets. Cryptocurrencies purchased are recorded at cost and cryptocurrencies awarded to the Company through its mining activities are accounted for as other revenue of the Company for the three and nine months ended March 31, 2021. Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. Cryptocurrencies awarded to the Company through its mining activities are recorded as other income and as operating activities in the Company’s consolidated financial statements. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. (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 generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts. As the Company has focused its development in the shipping management segment, its customer base will be more from smaller privately owned companies that will pay more timely than state owned companies. The Company also considers the economic implications of COVID-19 on its estimates of the allowance and made additional $999,960 and $3,121,416 of allowance for doubtful accounts of accounts receivable for the three months ended March 31, 2021 and 2020, $1,033,414 and $4,428,108 of allowance for doubtful accounts of accounts receivable for the nine months ended March 31, 2021 and 2020. The Company recovered nil and $3,255,938 of accounts receivable for the three months ended March 31, 2021 and 2020, respectively. The Company recovered $2,492 and $3,255,938 of accounts receivable for the nine months ended March 31, 2021 and 2020, respectively. For the three and nine months ended March 31, 2020, the Company wrote off nil and $99,366. There was no write off for the three and nine months ended March 31, 2021. Other receivables represent mainly customer advances, 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. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. The Company made nil and $11,670 allowance for doubtful accounts of other receivables for the three and nine months ended March 31, 2021. There was no allowance of other receivables for the three and nine months ended March 31, 2020. For the three and nine months ended March 31, 2021, nil and $11,670 was written off against other receivables. For the three and nine months ended March 31, 2020, nil and $1,763 was written off against other receivables, respectively. The Company recovered $94,046 and $ 124,216 of other receivables for the three and nine months ended March 31, 2021. There was no recovery against other receivables for the three and nine months ended March 31, 2020. (h) Property and Equipment, 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 3-10 years Computer and office equipment 1-5 years Furniture and fixtures 3-5 years System software 5 years Leasehold improvements Shorter of lease term or useful lives Mining equipment 3 years 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. There was no impairment for the three months ended March 31, 2021 and 2020. For the nine months ended March 31, 2021 and 2020, an impairment of nil and $127,177 were recorded, respectively. (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 impairment for the three months ended March 31, 2021 and 2020. For the nine months ended March 31, 2021 and 2020, an impairment of nil and $200,455 were recorded, respectively. (j) Revenue Recognition The Company recognizes revenue which represents 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. The Company identifies contractual performance obligations and determines 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 Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires the Company to (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 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. Contract balances The Company records receivables related to revenue when the Company has an unconditional right to invoice and receive payment. Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized. The Company’s disaggregated revenue streams are described as follows: For the Three Months Ended For the Nine Months Ended March 31, March 31, March 31, March 31, 2021 2020 2021 2020 Shipping and management agency services $ - $ 500,000 $ 206,845 $ 1,500,000 Freight logistics services 953,194 853,979 3,767,588 3,599,620 Container trucking services - - - 61,709 Total $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 ● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as deferred revenue. ● Revenues from freight logistics services are recognized when the related contractual services are rendered. For certain freight logistics contracts that the Company entered into with customers starting in the first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to this contracts are presented net of related costs. For the three months ended March 31, 2020, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $2.0 million and $2.0 million, respectively. For the nine months ended March 31, 2020, gross revenue and gross cost of revenue related to these contracts amounted to approximately $24.0 million and $22.5 million, respectively. There was no such transaction for the three and nine months ended March 31, 2021. ● Revenues from container trucking services are recognized when the related contractual services are rendered. Disaggregated information of revenues by geographic locations are as follows: For the Three Months Ended For the Nine Months Ended March 31, March 31, March 31, March 31, 2021 2020 2021 2020 PRC $ 953,194 853,979 3,767,588 3,599,620 U.S. - 500,000 206,845 1,561,709 Total revenues $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 (k) Taxation Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with U.S. 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 March 31, 2021 and June 30, 2020. Income tax returns for the years prior to 2017 are no longer subject to examination by U.S. tax authorities. 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 Value Added Taxes and Surcharges The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. Entities that are VAT general taxpayers are allowed to offset qualified VAT paid to suppliers against their VAT liability. Net VAT liability is recorded in taxes payable on the unaudited condensed consolidated balance sheets. 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 net VAT payments. (l) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common stock of the Company by the weighted average number of shares of common stock of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock of the Company were exercised or converted into common stock of the Company. Common stock equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. For the three and nine months ended March 31, 2021 and 2020, there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss. (m) Comprehensive Income (Loss) The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the “FASB”) which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. (n) Stock-based Compensation The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee’s requisite service period. The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received. Valuations of stock based compensation 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, health 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, health and legal environments 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. In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and the workforce are concentrated in China and United States, the Company’s business, results of operations, and financial condition have been adversely affected for the three and nine months ended March 31, 2021. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19. (p) Recent Accounting Pronouncements Pronouncements adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted this ASU on July 1, 2020 and the adoption has no significant impact to the Company’s unaudited condensed consolidated financial statements as a whole. Pronouncements not yet adopted In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after July 1, 2023, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on July 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The amendments in this Update to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 is effective for the Company for annual and interim reporting periods beginning July 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after July 1, 2021, including interim periods within those fiscal years. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. 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. |
Cryptocurrencies
Cryptocurrencies | 9 Months Ended |
Mar. 31, 2021 | |
Cryptocurrencies [Abstract] | |
CRYPTOCURRENCIES | Note 3. CRYPTOCURRENCIES The following table presents additional information about cryptocurrencies: Amounts Balance at June 30, 2020 $ - Receipt of cryptocurrencies from mining services 153,205 Balance at March 31, 2021 $ 153,205 |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Mar. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 4. ACCOUNTS RECEIVABLE, NET The Company’s net accounts receivable are as follows: March 31, June 30, 2021 2020 Trade accounts receivable $ 3,589,048 $ 3,453,439 Less: allowances for doubtful accounts (3,451,213 ) (2,297,491 ) Accounts receivable, net $ 137,835 $ 1,155,948 Movement of allowance for doubtful accounts are as follows: March 31, June 30, Beginning balance $ 2,297,491 $ 5,670,274 Provision for doubtful accounts, net of recovery 1,033,414 4,896,640 Less: write-off (126,708 ) (8,220,754 ) Exchange rate effect 247,016 (48,669 ) Ending balance $ 3,451,213 $ 2,297,491 For the three months ended March 31, 2021 and 2020, the provision for doubtful accounts was $875,744 and $3,121,416, respectively. For the nine months ended March 31, 2021 and 2020, the provision for doubtful accounts was $906,706 and $4,428,108, respectively. The Company recovered nil and $99,366 of accounts receivable for the three months ended March 31, 2021 and 2020, respectively. The Company recovered $2,492 and $99,366 of accounts receivable for the nine months ended March 31, 2021 and 2020, respectively. The Company wrote off $3,255,938 of accounts receivable for the three and nine months ended March 31, 2020. |
Other Receivables, Net
Other Receivables, Net | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
OTHER RECEIVABLES, NET | Note 5. OTHER RECEIVABLES, NET The Company’s other receivables are as follows: March 31, June 30, 2021 2020 Advances to customers* $ 11,240,510 $ 10,004,893 Employee business advances 592 51,334 Total 11,241,102 10,056,227 Less: allowances for doubtful accounts (10,660,834 ) (10,005,193 ) Other receivables, net $ 580,268 $ 51,034 * As of March 31, 2021 and June 30, 2020, the Company entered into certain contracts with customers (state-owned entities) where the Company’s services included freight costs and cost of commodities to be shipped to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. As aforementioned customers were negatively impacted by the pandemic and required additional time to execute existing contracts, they required additional time to pay. Due to significant uncertainty on whether the delayed contracts will be executed timely. As such, the Company had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. For the three and nine months ended March 31, 2021, the recovery of such allowances amounted to $94,046 and $124,216, respectively. On December 1, 2020, the Company entered into a freight logistics services and import contract with a third party for equipment import. Per contract term, the Company will act as their freight carriers and in charge the import matter of such equipment. The Company agreed to pay a deposit of $580,000 which is based on 20% of the total carrying value of equipment on behalf of customer to secure the equipment. The advance will be repaid to the Company when the contract is fulfilled in around June 2021. Movement of allowance for doubtful accounts are as follows: March 31, June 30, Beginning balance $ 10,005,193 $ - Provision for doubtful accounts, net of recovery (112,546 ) 10,055,203 Less: write-off (11,670 ) (1,763 ) Exchange rate effect 779,856 (48,247 ) Ending balance $ 10,660,834 $ 10,005,193 For the three months ended March 31, 2021, the provision for doubtful accounts of other receivables was nil with recovery of $94,046. For the nine months ended March 31, 2021, the provision for doubtful accounts of other receivables was $11,670 with recovery of $124,216. There was no additional allowance or recovery of other receivables for the three and nine months ended March 31, 2020. The Company wrote off nil of other receivables for the three months ended March 31, 2021 and 2020, respectively. The Company wrote off $11,670 and $1,763 of other receivables for the nine months ended March 31, 2021 and 2020, respectively. |
Advances to Suppliers
Advances to Suppliers | 9 Months Ended |
Mar. 31, 2021 | |
Advances To Suppliers [Abstract] | |
ADVANCES TO SUPPLIERS | Note 6. ADVANCES TO SUPPLIERS The Company’s advances to suppliers – third parties are as follows: March 31, June 30, 2021 2020 Freight fees (1) $ 612,860 $ 48,875 (1) The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from April to June 2021. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Note 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS The Company’s prepaid expenses and other assets are as follows: March 31, June 30, 2021 2020 Prepaid income taxes $ 210,913 $ 48,924 Other (including prepaid professional fees, rent, listing fees) 15,923 41,458 Total $ 226,836 $ 90,382 |
Other Long-Term Assets - Deposi
Other Long-Term Assets - Deposits | 9 Months Ended |
Mar. 31, 2021 | |
Other Longterm Assets Deposits [Abstract] | |
OTHER LONG-TERM ASSETS - DEPOSITS | Note 8. OTHER LONG-TERM ASSETS - DEPOSITS The Company’s other long-term assets – deposits are as follows: March 31, June 30, 2021 2020 Rental and utilities deposits $ 106,319 $ 64,663 Freight logistics deposits (1) 3,136,294 2,910,327 Total other long-term assets - deposits $ 3,242,613 $ 2,974,990 (1) Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. 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. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 9. PROPERTY AND EQUIPMENT, NET The Company’s net property and equipment as follows: March 31, June 30, 2021 2020 Buildings $ 205,413 $ 190,518 Motor vehicles* 559,300 516,999 Computer equipment* 113,456 97,172 Office equipment* 46,994 43,587 Furniture and fixtures* 84,283 71,697 System software* 116,347 107,911 Leasehold improvements 848,253 786,745 Mining equipment 922,438 - Total 2,896,484 1,814,629 Less: Accumulated depreciation and amortization (1,627,546 ) (1,291,339 ) Property and equipment, net $ 1,268,938 $ 523,290 Depreciation and amortization expenses for the three months ended March 31, 2021 and 2020 were $14,690 and $67,320, respectively. Depreciation and amortization expenses for the nine months ended March 31, 2021 and 2020 were $231,787 and $254,549, respectively. * For the three and nine months ended March 31, 2020, an impairment of $127,177 was recorded due to continued decrease in revenues from the inland transportation management segment, no impairment was recorded for same period 2020. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | Note 10. INTANGIBLE ASSETS, NET Net intangible assets consisted of the following: March 31, June 30, 2021 2020 Full service logistics platforms $ 190,000 $ 190,000 Less: Accumulated amortization (190,000 ) (163,611 ) Intangible assets, net $ - $ 26,389 The full service logistics platform was placed in services in December 2017. The platforms are being amortized over three years. Amortization expenses amounted to nil and $15,833 for the three months ended March 31, 2021 and 2020, respectively. Amortization expenses amounted to $26,389 and $65,723 for the nine months ended March 31, 2021 and 2020, respectively. In addition, first phase of the ERP system was placed in use in July 2019 and is being amortized over three years. However, due to the continued decrease in revenues from the inland transportation management segment, the Company recorded an impairment of $200,455 for the three and nine months ended March 31, 2020. No impairment was recorded for same period of 2020. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | Note 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES March 31, June 30, 2021 2020 Salary and reimbursement payable $ 608,381 $ 795,855 Professional fees payable 106,100 629,524 Credit card payable 4,816 217,940 Total $ 719,297 $ 1,643,319 |
Loans Payable
Loans Payable | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | Note 12. LOANS PAYABLE On May 11, 2020, the Company received loan proceeds in the amount of approximately $124,570 under the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended 24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The loan forgiveness amount will be reduced for any Economic Injury Disaster Loan (“EIDL”) advance that the Company receives. The amount of loan forgiveness will be further reduced if the borrower terminates employees or reduces salaries during the eight-week period. On February 24, 2021, the full amount of PPP loan was forgiven and no principle or interest need to be repaid, so the Company record such as a gain for the three and nine months ended March 31, 2021. As of March 31, 2021, none of PPP loan payable remains outstanding. On May 26, 2020, the Company received an advance in the amount of $155,900 from under the SBA EIDL program administered by the SBA pursuant to the CARES Act. Such advance amount will reduce the Company’s PPP loan forgiveness amount described above. In accordance with the requirements of the CARES Act, the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter. The SBA loans are scheduled to mature on May 22, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable of $731, including principal and interest, commenced on May 22, 2021. The balance of principal and interest will be payable 30 years from the date of May 22, 2020. $5,900 of the loan will be forgiven. As of March 31, 2021, $155,900 of loan payable remains outstanding. Interest expense for the three and nine months ended March 31, 2021 for this loan was $1,387 and $4,207, respectively. Loan repayment schedule for the EIDL loans is as follows: Twelve Months Ending March 31, Loan Amount 2022 $ 8,660 2023 3,092 2024 3,210 2025 3,332 2026 3,460 Thereafter 134,146 Total loan payments $ 155,900 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
LEASES | Note 13. LEASES The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. All of the Company’s leases are classified as operating leases. The Company has several vehicle lease agreements and office lease agreements with lease terms ranging from two to three years. Upon adoption of ASU 2016-02, the Company recognized lease liabilities of approximately $0.2 million, with corresponding ROU assets of approximately the same amount based on the present value of the future minimum rental payments of leases, using a weighted average discount rate of approximately 10.15%. As of March 31, 2021, ROU assets and lease liabilities amounted to $381,743 and $406,165 (including $193,799 from lease liabilities current portion and $212,366 from lease liabilities noncurrent portion), respectively. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration and the weighted average remaining lease terms are 3.17 years. For the three months ended March 31, 2021 and 2020, rent expense amounted to approximately $67,000 and $65,000, respectively. For the nine months ended March 31, 2021 and 2020, rent expense amounted to approximately $224,000 and $223,000, respectively. The three-year maturity of the Company’s lease obligations is presented below: Twelve Months Ending March 31, Operating 2022 $ 231,834 2023 86,259 2024 50,979 2025 52,508 2026 54,083 Thereafter 4,631 Total lease payments 480,294 Less: Interest (74,129 ) Present value of lease liabilities $ 406,165 |
Equity
Equity | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | Note 14. EQUITY Stock issuance: On September 17, 2020, the Company entered into certain securities purchase agreement with certain “non-U.S. Persons” as defined in Regulation S of the Securities Act of 1933, as amended, pursuant to which the Company sold an aggregate of 720,000 shares of the Company’s common stock, no par value, and warrants to purchase 720,000 Shares at a per share purchase price of $1.46. The net proceeds to the Company from such offering were approximately $1.05 million. The warrants will be exercisable on March 16, 2021 at an exercise price of $1.825 for cash. The warrants may also be exercised cashlessly if at any time after March 16, 2021, there is no effective registration statement registering, or no current prospectus available for, the resale of the warrant shares. The warrants will expire on March 16, 2026. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise the warrants if the Company’s common stock trades at or above $4.38 for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date. On November 2 and November 3, 2020, the Company issued an aggregate of 860,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”), each convertible into one share of common stock, no par value, of Company, upon the terms and subject to the limitations and considerations set forth in the Certificate of Designation of the Series A Preferred Stock, and warrants to purchase up to 1,032,000 shares of common stock. The purchase price for each share of Series A Preferred Stock and accompanying warrants is $1.66. The net proceeds to the Company from this offering was approximately $1.43 million, not including any proceeds that may be received upon cash exercise of the warrants. The warrants will be exercisable six (6) months following the date of issuance at an exercise price of $1.99 for cash. The warrants may also be exercised cashlessly if at any time after the six-month anniversary of the issuance date, there is no effective registration statement registering, or no current prospectus available for, the resale of the warrant Shares. The warrants will expire five and a half (5.5) years from the date of issuance. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise of the warrants if the closing price of the common stock equals or exceeds $5.97 for twenty (20) consecutive trading days, provided, among other things, that the shares issuable upon exercise of the warrants are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date. In February 2021, the shareholders approved the preferred shareholders’ right to convert 860,000 shares of Series A Preferred Stock into 860,000 shares of common stock On December 8, 2020, the Company entered into a securities purchase agreement with the investors thereto pursuant to which the Company sold to the investors, and the investors purchased from the Company, in a registered direct offering, an aggregate of 1,560,000 shares of the common stock of the Company, no par value per share, at a purchase price of $3.10 per share, for aggregate gross proceeds to the Company of $4,836,000. The Company also sold to the investors warrants to purchase up to an aggregate of 1,170,000 shares of common stock at an exercise price of $3.10 per share. The warrants are initially exercisable beginning on December 11, 2020 and will expire three and a half (3.5) years 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. On January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. investors thereto pursuant to which the Company sold to the investors, and the investors purchased from the Company, an aggregate of 1,086,956 shares of common stock, no par value, and warrants to purchase 5,434,780 shares. The net proceeds to the Company from such Offering were approximately $4.0 million. The purchase price for each share of common stock and five warrants is $3.68, and the exercise price per warrant is $5.00. The Warrants will be exercisable at any time during the period beginning on or after July 27, 2021 and ending on or prior on January 27, 2026 but not thereafter; provided, however, that the total number of the Company’s issued and outstanding shares of Common Stock, multiplied by the NASDAQ official closing bid price of the Common Stock shall equal or exceed $0.3 billion for a three consecutive month period prior to an exercise. On February 6, 2021, the Company entered into a securities purchase agreement with the investors pursuant to which the Company sold to the investors, and the investors purchased from the Company, in a registered direct offering, an aggregate of 1,998,500 shares of the common stock of the Company, no par value per share, at a purchase price of $6.805 per share. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $12.4 million. The Company also sold to the investors warrants to purchase up to an aggregate of 1,998,500 shares of common stock at an exercise price of $6.805 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years 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. On February 9, 2021, the Company entered into a securities purchase agreement with the investors pursuant to which the Company sold to the investors, and the investors purchased from the Company, in a registered direct offering, an aggregate of 3,655,000 shares of the common stock of the Company, no par value per share, at a purchase price of $7.80 per share. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $26.1 million. The Company also sold to the investors warrants to purchase up to an aggregate of 3,655,000 shares of common stock at an exercise price of $7.80 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years 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. For the three and nine months ended March 31, 2021, the shareholders exercised warrants to purchase 1,431,666 shares of common stock, 1,362,755 shares are issued of which 147,755 shares are exercised cashlessly, for aggregate net proceeds to the Company of approximately $4.8 million. The Company’s outstanding 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 were recorded as additional paid-in capital from common stock Following is a summary of the status of warrants outstanding and exercisable as of March 31, 2021: Warrants Weighted Warrants outstanding, as of June 30, 2020 400,000 $ 8.75 Issued 14,010,280 5.44 Exercised (1,431,666 ) 3.81 Expired - - Warrants outstanding, as of March 31, 2021 12,978,614 $ 5.38 Warrants exercisable, as of March 31, 2021 12,978,614 $ 5.38 Warrants Outstanding Warrants Weighted Average 2018 Series A, 400,000 363,334 $ 8.75 2.45 years 2020 warrants, 2,922,000 1,807,000 $ 2.085 4.42 years 2021 warrants, 11,088,280 10,808,280 $ 6.234 5.18 years On December 9, 2019, the Company authorized the cancellation of the 35,099 of the Company’s treasury shares. The shares were cancelled as of June 30, 2020. The cancellation has no effect on the Company’s total shareholders’ equity and earnings per share. After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock. Stock based compensation: In March 2017, the Company entered into a consulting and advisory services agreement with a consulting entity, which provides management consulting services that include marketing program design and implementation and cooperative partner selection and management. The service period began in March 2017 and will end in February 2020. The Company issued 50,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $12.65 per share on March 22, 2017 to the consultant. These shares were valued at $632,500 and the consulting expense was $35,139 and $140,556 for the three and nine months ended March 31, 2020, respectively. On June 7, 2018, the Company issued 80,000 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 consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal installments. The Company recorded compensation expense of $63,500 and $190,500 for the three and nine months ended March 31, 2020, respectively. On April 8, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from April 8, 2019 to October 7, 2019. The Company issued 60,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $4.25 per share on April 16, 2019 to the consulting entity. These shares were valued at $255,000. The Company recorded compensation expense of $0 and $127,500 for the three and nine months ended March 31, 2020, respectively. On July 1, 2019, the Company issued 120,000 restricted shares of common stock with a fair value of $432,000 to a China-based company that specializes in the port agency business and/or its designees pursuant to a consulting service agreement. The scope of services primarily covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded compensation expense of $108,000 and $324,000 for the three and nine months ended March 31, 2020, respectively. Included in a Board resolution dated January 30, 2016, the Company’s CEO is authorized to grant to the employees up to one million shares under the Company’s 2014 Stock Incentive Plan (the “Plan”). On July 22, 2019, the Company granted 18,000 shares of restricted common stock valued at $3.50 per share on the grant date with an aggregated fair value of $63,000 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $0 and $63,000 for the three and nine months ended March 31, 2020, respectively. On October 3, 2019, the Company issued 230,000 shares of common stock valued at $0.68 per share on the grant date with an aggregated fair value of $156,400 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $0 and $156,400 for the three and nine months ended March 31, 2020, respectively. On October 14, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from October 14, 2019 to April 13, 2020. The Company issued 300,000 shares of common stock valued at $222,000 as remuneration for the services. The shares bear a standard restrictive legend under the Securities Act of 1933, as amended. The Company recorded compensation expense of $111,000 and $222,000 for the three and nine months ended March 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, nil and $346,439 were recorded as stock-based compensation expense, respectively. During the nine months ended March 31, 2021 and 2020, nil and $1,252,756 were recorded as stock-based compensation expense, respectively. Stock Options: A summary of the outstanding options is presented in the table below: Options Weighted Options outstanding, as of June 30, 2020 17,000 $ 6.05 Granted - - Exercised - - Cancelled, forfeited or expired - - Options outstanding, as of March 31, 2021 17,000 $ 6.05 Options exercisable, as of March 31, 2021 17,000 $ 6.05 Following is a summary of the status of options outstanding and exercisable at March 31, 2021: Outstanding Options Exercisable Options Exercise Price Number Average Average Number Average $ 10.05 2,000 1.84 years $ 10.05 2,000 1.84 years $ 5.50 15,000 0.32 years $ 5.50 15,000 0.32 years 17,000 17,000 |
Non-controlling interest
Non-controlling interest | 9 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | Note 15. NON-CONTROLLING INTEREST The Company’s non-controlling interest consists of the following: March 31, June 30, 2021 2020 Sino-China: Original paid-in capital $ 356,400 $ 356,400 Additional paid-in capital 1,044 1,044 Accumulated other comprehensive income 76,291 376,398 Accumulated deficit (6,224,293 ) (6,199,188 ) (5,790,558 ) (5,465,346 ) Trans Pacific Logistics Shanghai Ltd. (1,175,332 ) (1,077,015 ) Blumargo IT Solution Ltd. (4,036 ) - Total $ (6,969,926 ) $ (6,542,361 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 16. COMMITMENTS AND CONTINGENCIES 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 March 31, 2021 and June 30, 2020, the Company has estimated its severance payments of approximately $106,000 and $84,000, 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-Global 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 notice provided at least 60 days prior to the anniversary date of the agreement. If the Company fails to provide this notice or if the Company wishes to terminate an employment agreement in the absence of cause, then the Company is obligated to provide at least 30 days’ prior notice. In such case during the initial term of the agreement, the Company would need to pay such executive (i) the remaining salary through the date of December 31, 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 17. INCOME TAXES On March 27, 2020, the CARES Act was enacted and signed into law and includes, among other things, refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods and alternative minimum tax credit refunds. The Company does not at present expect the provisions of the CARES Act to have a material impact on its tax provision given the amount of net operating losses currently available. The Company’s income tax expenses for the three and nine months ended March 31, 2021 and 2020 are as follows: For the three months For the nine months 2021 2020 2021 2020 Current U.S. $ - $ - $ (3,450 ) $ - PRC - (189,510 ) - (204,257 ) Total income tax expenses - (189,510 ) (3,450 ) (204,257 ) The Company’s deferred tax assets are comprised of the following: March 31, June 30, Allowance for doubtful accounts U.S. $ 1,702,000 $ 1,329,000 PRC 3,082,000 2,888,000 Net operating loss U.S. 2,498,000 1,756,000 PRC 1,496,000 1,490,000 Total deferred tax assets 8,778,000 7,463,000 Valuation allowance (8,778,000 ) (7,463,000 ) Deferred tax assets, net - long-term $ - $ - The Company’s operations in the U.S. incurred a cumulative U.S. federal net operating loss (“NOL”) of approximately $6,456,000 as of June 30, 2020 which may reduce future federal taxable income. During the three and nine months ended March 31, 2021, approximately $1,022,000 and $2,718,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $215,000 and $571,000, respectively. As of March 31, 2021, the Company’s cumulative NOL amounted to approximately $9,174,000 which may reduce future federal taxable income, of which approximately $1,400,000 will expire in 2037 and the remaining balance carried forward indefinitely. The Company’s operations in China incurred a cumulative NOL of approximately $5,961,000 as of June 30, 2020 which may reduce future taxable income. During the three and nine months ended March 31, 2021, approximately $18,000 and $25,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $4,000 and $6,000, respectively. As of March 31, 2021, the Company’s cumulative NOL amounted to approximately $5,986,000 which may reduce future taxable income, of which approximately $700,000 start expiring from 2023 and the remaining balance of NOL will be expired by 2026. 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. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of 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. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future earnings as a result of the deterioration of trade negotiation between US and China and the outbreak of COVID-19 in 2021. The Company provided a 100% allowance for its DTA as of March 31, 2021. The net increase in valuation for the three and nine months ended March 31, 2021 amounted to approximately $616,000 and $1,315,000, respectively based on management’s reassessment of the amount of the Company’s deferred tax assets that are more likely than not to be realized. The Company’s taxes payable consists of the following: March 31, June 30, 2021 2020 VAT tax payable $ 1,103,624 $ 1,037,620 Corporate income tax payable 2,344,500 2,180,727 Others 67,314 62,001 Total $ 3,515,438 $ 3,280,348 |
Concentrations
Concentrations | 9 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | Note 18. CONCENTRATIONS Major Customers For the three months ended March 31, 2021, two customers accounted for approximately 69.6% and 25.8% of the Company’s revenues. As of March 31, 2021, one customer accounted for approximately 96.2% of the Company’s accounts receivable, net. For the three months ended March 31, 2020, two customers accounted for approximately 62.2% and 36.9% of the Company’s revenues, respectively. As of March 31, 2020, one customer accounted for approximately 85.9% of the Company’s gross accounts receivable. For nine months ended March 31, 2021, one customer accounted for approximately 87.3% of the Company’s revenues. As of March 31, 2021, one customer accounted for approximately 96.2% of the Company’s accounts receivable, net. For nine months ended March 31, 2020, three customers accounted for approximately 40.0%, 29.1% and 28.3% of the Company’s revenues, respectively. As of March 31, 2020, one customer accounted for approximately 85.9% of the Company’s gross accounts receivable. Major Suppliers For the three months ended March 31, 2021, two suppliers accounted for approximately 57.4% and 24.7% of the total costs of revenue, respectively. For the three months ended March 31, 2020, two suppliers accounted for approximately 48.3% and 28.0% of the total cost of revenues, respectively. For the nine months ended March 31, 2021, two suppliers accounted for approximately 49.4% and 33.8% of the total cost of revenues. For the nine months ended March 31, 2020, four suppliers accounted for approximately 27.2%, 24.7%, 18.2% and 10.0% of the total cost of revenues, respectively |
Segment Reporting
Segment Reporting | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | Note 19. 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 unaudited condensed consolidated 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) shipping agency and management services; (2) freight logistics services and (3) container trucking services. The following tables present summary information by segment for the three and nine months ended March 31, 2021 and 2020, respectively: For the Three Months Ended March 31, 2021 Shipping Freight Container Others Total Net revenues $ - $ 953,194 $ - $ - $ 953,194 Cost of revenues $ - $ 1,098,922 $ - $ - $ 1,098,922 Gross profit $ - $ (145,728 ) $ - $ - $ (145,728 ) Depreciation and amortization $ 88,407 $ 4,641 $ - $ - $ 93,048 Total capital expenditures $ - $ - $ - $ 922,438 $ 922,438 Gross margin% - % (15.3 )% - % - % (15.3 )% For the Three Months Ended March 31, 2020 Shipping Freight Container Others Total Net revenues $ 500,000 $ 853,979 * $ - $ - $ 1,353,979 Cost of revenues $ 67,841 $ 821,266 * $ - $ - $ 889,107 Gross profit $ 432,159 $ 32,713 $ - $ - $ 464,872 Depreciation and amortization $ 79,732 $ 3,421 $ - $ - $ 83,153 Total capital expenditures $ - $ - $ - $ - $ - Gross margin% 86.4 % 3.8 % - % - % 34.3 % * For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended March 31, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $2.0 million and $2.0 million, respectively. There was no such transaction for the three months ended March 31, 2021. For the Nine Months Ended March 31, 2021 Shipping Freight Container Others Total Net revenues $ 206,845 $ 3,767,588 $ - $ - $ 3,974,433 Cost of revenues $ 176,968 $ 3,705,644 $ - $ - $ 3,882,612 Gross profit $ 29,877 $ 61,944 $ - $ - $ 91,821 Depreciation and amortization $ 246,485 $ 11,691 $ - $ - $ 258,176 Total capital expenditures $ - $ - $ - $ 922,438 $ 922,438 Gross margin% 14.4 % 1.6 % - % - % 2.3 % For the Nine Months Ended March 31, 2020 Shipping Freight Container Others Total Net revenues $ 1,500,000 $ 3,599,620 * $ 61,709 $ - $ 5,161,329 Cost of revenues $ 230,248 $ 2,042,595 * $ 55,313 $ - $ 2,328,156 Gross profit $ 1,269,752 $ 1,557,025 $ 6,396 $ - $ 2,833,173 Depreciation and amortization $ 261,648 $ 7,704 $ 50,920 $ - $ 320,272 Total capital expenditures $ 6,979 $ - $ - $ - $ 6,979 Gross margin% 84.7 % 43.3 % 10.4 % - % 54.9 % * For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the nine months ended March 31, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $24.0 million and $22.5 million, respectively. There was no such transaction for the nine months ended March 31, 2021. Total assets as of: March 31, June 30, 2021 2020 Shipping Agency and Management Services $ 49,610,687 $ 2,531,074 Freight Logistic Services 3,833,588 3,176,165 Container Trucking Services 21,862 30,863 Others 922,438 - Total Assets $ 54,388,575 $ 5,738,102 The Company’s operations are primarily based in the PRC and U.S, where the Company derives all of their revenues. Management also review unaudited condensed consolidated financial results by business locations. Disaggregated information of revenues by geographic locations are as follows: For the Three Months For the Nine Months March 31, March 31, March 31, March 31, 2021 2020 2021 2020 PRC $ 953,194 853,979 3,767,588 3,599,620 U.S. - 500,000 206,845 1,561,709 Total revenues $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 20. RELATED PARTY TRANSACTIONS As of March 31, 2021 and 2020, the outstanding amounts due from related parties consist of the following: March 31, June 30, 2021 2020 Tianjin Zhiyuan Investment Group Co., Ltd. $ 384,331 $ 484,331 Less: allowance for doubtful accounts (384,331 ) (48,433 ) Total $ - $ 435,898 In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (“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. Zhong Zhang. 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. Starting in late 2020, Mr, Zhang started selling off his shares of the Company and does not own shares of the Company as of March 31, 2021 and no longer a related party. Management’s reassessed the collectability and decided to make additional $345,898 allowance for doubtful accounts as of March 31, 2021. There was no recovery for the three months ended March 31, 2021 and 2020. For the nine months ended March 31, 2021 and 2020, the Company recovered $10,000 and $41,341, respectively, of allowance for doubtful accounts of the amount due from Zhiyuan. As of March 31, 2021, the Company had payable to the CEO of $11,197 and to the acting CFO of $2,132 which was included in other payable. As of June 30, 2020, the Company had payable to the CEO of $6,279 and to the Acting CFO of $26,570 which were included in other payable. These payments were made on behalf of the Company for the daily business operational activities. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 21. SUBSEQUENT EVENTS On April 13, 2021, the Company formed a joint venture in which the Company owned 99% equity interest of Hainan Saimeinuo Trading Co., Ltd., in the free tax zone in Hainan Province, China, with a register capital of approximately $1.5 million. This subsidiary primarily engages in freight logistics services. On April 21, 2021, the Company entered into a cooperation agreement with Mr. Bangpin Yu to set up a joint venture in U.S. named “Brilliant Warehouse Service Inc” to support its freight logistics services in the U.S. The Company has a 51% equity interest in the joint venture. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
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”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All intercompany transactions and balances have been 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 Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. Sino-China was designed to operate in China for the benefit of the Company. The Company does not receive any payment 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 income/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 in accordance with Accounting Standards Codification (“ASC”) 810-10, “Consolidation”. 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: March 31, June 30, 2021 2020 Current assets: Cash $ 30,119 $ 5,022 Total current assets 30,119 5,022 Deposits 1,734 1,608 Property and equipment, net 33,459 41,171 Total assets $ 65,312 $ 47,801 Current liabilities: Other payables and accrued liabilities $ 39,214 $ 39,919 Total liabilities $ 39,214 $ 39,919 |
Fair Value of Financial Instruments | (b) 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 | (c) 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 unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. 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 | (d) Translation of Foreign Currency The accounts of the Company and its subsidiaries 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, Trans Pacific Shipping Ltd. and Trans Pacific Logistic Shanghai Ltd. report their financial positions and results of operations in Renminbi (“RMB”), its subsidiary Sino-Global Shipping Australia Pty Ltd., reports its financial positions and results of operations in Australian dollar (“AUD”), its subsidiary Sino-Global Shipping Hong Kong reports its financial positions and results of operations in Hong Kong dollar (“HKD”) and its subsidiary Sino-Global Shipping Canada, Inc. reports its financial positions and results of operations in Canadian Dollar (“CAD”). 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 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 sheets’ 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 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 March 31, 2021 and June 30, 2020 and for the three and nine months ended March 31, 2021 and 2020 are as follows: March 31, June 30, 2020 Three months ended March 31, Nine months ended March 31, Foreign currency Balance Sheet Balance 2021 Profits/Loss 2020 Profits/Loss 2021 Profits/Loss 2020 Profits/Loss RMB:1USD 6.5528 7.0651 6.4834 6.9798 6.6769 7.0130 AUD:1USD 1.3135 1.4514 1.2943 1.5209 1.3541 1.4810 HKD:1USD 7.7750 7.7505 7.7573 7.7716 7.7533 7.8091 CAD:1USD 1.2571 1.3617 1.2667 1.3417 1.3010 1.3272 |
Cash | (e) Cash Cash consists of cash on hand and cash in bank which are unrestricted as to withdrawal or use. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of March 31, 2021 and June 30, 2020, cash balances of $47,768,630 and $126,720, respectively, were maintained at financial institutions. In China, the deposit insurance system only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). For the balance maintained at U.S. financial institutions, the Federal Deposit Insurance Corporation as it only insured deposits up to $250,000. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of March 31, 2021 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $47,112,996 and $8,780, respectively. |
Cryptocurrencies | (f) Cryptocurrencies Cryptocurrencies, mainly bitcoin, are included in current assets in the accompanying unaudited condensed consolidated balance sheets. Cryptocurrencies purchased are recorded at cost and cryptocurrencies awarded to the Company through its mining activities are accounted for as other revenue of the Company for the three and nine months ended March 31, 2021. Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. Cryptocurrencies awarded to the Company through its mining activities are recorded as other income and as operating activities in the Company’s consolidated financial statements. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. |
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 generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts. As the Company has focused its development in the shipping management segment, its customer base will be more from smaller privately owned companies that will pay more timely than state owned companies. The Company also considers the economic implications of COVID-19 on its estimates of the allowance and made additional $999,960 and $3,121,416 of allowance for doubtful accounts of accounts receivable for the three months ended March 31, 2021 and 2020, $1,033,414 and $4,428,108 of allowance for doubtful accounts of accounts receivable for the nine months ended March 31, 2021 and 2020. The Company recovered nil and $3,255,938 of accounts receivable for the three months ended March 31, 2021 and 2020, respectively. The Company recovered $2,492 and $3,255,938 of accounts receivable for the nine months ended March 31, 2021 and 2020, respectively. For the three and nine months ended March 31, 2020, the Company wrote off nil and $99,366. There was no write off for the three and nine months ended March 31, 2021. Other receivables represent mainly customer advances, 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. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. The Company made nil and $11,670 allowance for doubtful accounts of other receivables for the three and nine months ended March 31, 2021. There was no allowance of other receivables for the three and nine months ended March 31, 2020. For the three and nine months ended March 31, 2021, nil and $11,670 was written off against other receivables. For the three and nine months ended March 31, 2020, nil and $1,763 was written off against other receivables, respectively. The Company recovered $94,046 and $ 124,216 of other receivables for the three and nine months ended March 31, 2021. There was no recovery against other receivables for the three and nine months ended March 31, 2020. |
Property and Equipment, net | (h) Property and Equipment, 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 3-10 years Computer and office equipment 1-5 years Furniture and fixtures 3-5 years System software 5 years Leasehold improvements Shorter of lease term or useful lives Mining equipment 3 years 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. There was no impairment for the three months ended March 31, 2021 and 2020. For the nine months ended March 31, 2021 and 2020, an impairment of nil and $127,177 were recorded, respectively. |
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 impairment for the three months ended March 31, 2021 and 2020. For the nine months ended March 31, 2021 and 2020, an impairment of nil and $200,455 were recorded, respectively. |
Revenue Recognition | (j) Revenue Recognition The Company recognizes revenue which represents 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. The Company identifies contractual performance obligations and determines 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 Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires the Company to (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 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. Contract balances The Company records receivables related to revenue when the Company has an unconditional right to invoice and receive payment. Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized. The Company’s disaggregated revenue streams are described as follows: For the Three Months Ended For the Nine Months Ended March 31, March 31, March 31, March 31, 2021 2020 2021 2020 Shipping and management agency services $ - $ 500,000 $ 206,845 $ 1,500,000 Freight logistics services 953,194 853,979 3,767,588 3,599,620 Container trucking services - - - 61,709 Total $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 ● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as deferred revenue. ● Revenues from freight logistics services are recognized when the related contractual services are rendered. For certain freight logistics contracts that the Company entered into with customers starting in the first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to this contracts are presented net of related costs. For the three months ended March 31, 2020, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $2.0 million and $2.0 million, respectively. For the nine months ended March 31, 2020, gross revenue and gross cost of revenue related to these contracts amounted to approximately $24.0 million and $22.5 million, respectively. There was no such transaction for the three and nine months ended March 31, 2021. ● Revenues from container trucking services are recognized when the related contractual services are rendered. Disaggregated information of revenues by geographic locations are as follows: For the Three Months Ended For the Nine Months Ended March 31, March 31, March 31, March 31, 2021 2020 2021 2020 PRC $ 953,194 853,979 3,767,588 3,599,620 U.S. - 500,000 206,845 1,561,709 Total revenues $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 |
Taxation | (k) Taxation Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with U.S. 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 March 31, 2021 and June 30, 2020. Income tax returns for the years prior to 2017 are no longer subject to examination by U.S. tax authorities. 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 Value Added Taxes and Surcharges The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. Entities that are VAT general taxpayers are allowed to offset qualified VAT paid to suppliers against their VAT liability. Net VAT liability is recorded in taxes payable on the unaudited condensed consolidated balance sheets. 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 net VAT payments. |
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 stock of the Company by the weighted average number of shares of common stock of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock of the Company were exercised or converted into common stock of the Company. Common stock equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. For the three and nine months ended March 31, 2021 and 2020, there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss. |
Comprehensive Income (loss) | (m) Comprehensive Income (Loss) The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the “FASB”) which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Stock-based Compensation | (n) Stock-based Compensation The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee’s requisite service period. The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received. Valuations of stock based compensation 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, health 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, health and legal environments 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. In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and the workforce are concentrated in China and United States, the Company’s business, results of operations, and financial condition have been adversely affected for the three and nine months ended March 31, 2021. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19. |
Recent Accounting Pronouncements | (p) Recent Accounting Pronouncements Pronouncements adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted this ASU on July 1, 2020 and the adoption has no significant impact to the Company’s unaudited condensed consolidated financial statements as a whole. Pronouncements not yet adopted In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after July 1, 2023, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on July 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The amendments in this Update to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 is effective for the Company for annual and interim reporting periods beginning July 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after July 1, 2021, including interim periods within those fiscal years. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Sino-China's assets and liabilities | March 31, June 30, 2021 2020 Current assets: Cash $ 30,119 $ 5,022 Total current assets 30,119 5,022 Deposits 1,734 1,608 Property and equipment, net 33,459 41,171 Total assets $ 65,312 $ 47,801 Current liabilities: Other payables and accrued liabilities $ 39,214 $ 39,919 Total liabilities $ 39,214 $ 39,919 |
Schedule of translation of foreign currency exchange rates | March 31, June 30, 2020 Three months ended March 31, Nine months ended March 31, Foreign currency Balance Sheet Balance 2021 Profits/Loss 2020 Profits/Loss 2021 Profits/Loss 2020 Profits/Loss RMB:1USD 6.5528 7.0651 6.4834 6.9798 6.6769 7.0130 AUD:1USD 1.3135 1.4514 1.2943 1.5209 1.3541 1.4810 HKD:1USD 7.7750 7.7505 7.7573 7.7716 7.7533 7.8091 CAD:1USD 1.2571 1.3617 1.2667 1.3417 1.3010 1.3272 |
Schedule of estimated useful lives | Buildings 20 years Motor vehicles 3-10 years Computer and office equipment 1-5 years Furniture and fixtures 3-5 years System software 5 years Leasehold improvements Shorter of lease term or useful lives Mining equipment 3 years |
Schedule of intangible assets estimated useful lives | Logistics platform 3 years |
Schedule of revenues by segments | For the Three Months Ended For the Nine Months Ended March 31, March 31, March 31, March 31, 2021 2020 2021 2020 Shipping and management agency services $ - $ 500,000 $ 206,845 $ 1,500,000 Freight logistics services 953,194 853,979 3,767,588 3,599,620 Container trucking services - - - 61,709 Total $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 |
Schedule of disaggregated information of revenues by geographic locations | For the Three Months Ended For the Nine Months Ended March 31, March 31, March 31, March 31, 2021 2020 2021 2020 PRC $ 953,194 853,979 3,767,588 3,599,620 U.S. - 500,000 206,845 1,561,709 Total revenues $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 |
Cryptocurrencies (Tables)
Cryptocurrencies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Cryptocurrencies [Abstract] | |
Schedule of Additional Information about Cryptocurrencies | Amounts Balance at June 30, 2020 $ - Receipt of cryptocurrencies from mining services 153,205 Balance at March 31, 2021 $ 153,205 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of net accounts receivable | March 31, June 30, 2021 2020 Trade accounts receivable $ 3,589,048 $ 3,453,439 Less: allowances for doubtful accounts (3,451,213 ) (2,297,491 ) Accounts receivable, net $ 137,835 $ 1,155,948 |
Schedule of allowance for doubtful accounts | March 31, June 30, Beginning balance $ 2,297,491 $ 5,670,274 Provision for doubtful accounts, net of recovery 1,033,414 4,896,640 Less: write-off (126,708 ) (8,220,754 ) Exchange rate effect 247,016 (48,669 ) Ending balance $ 3,451,213 $ 2,297,491 |
Other Receivables, Net (Tables)
Other Receivables, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of other receivables | March 31, June 30, 2021 2020 Advances to customers* $ 11,240,510 $ 10,004,893 Employee business advances 592 51,334 Total 11,241,102 10,056,227 Less: allowances for doubtful accounts (10,660,834 ) (10,005,193 ) Other receivables, net $ 580,268 $ 51,034 |
Schedule of movement of allowance for doubtful accounts | March 31, June 30, Beginning balance $ 10,005,193 $ - Provision for doubtful accounts, net of recovery (112,546 ) 10,055,203 Less: write-off (11,670 ) (1,763 ) Exchange rate effect 779,856 (48,247 ) Ending balance $ 10,660,834 $ 10,005,193 |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Advances To Suppliers [Abstract] | |
Schedule of advances to suppliers – third parties | March 31, June 30, 2021 2020 Freight fees (1) $ 612,860 $ 48,875 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other assets | March 31, June 30, 2021 2020 Prepaid income taxes $ 210,913 $ 48,924 Other (including prepaid professional fees, rent, listing fees) 15,923 41,458 Total $ 226,836 $ 90,382 |
Other Long-Term Assets - Depo_2
Other Long-Term Assets - Deposits (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Other Longterm Assets Deposits [Abstract] | |
Schedule of other long term assets deposits | March 31, June 30, 2021 2020 Rental and utilities deposits $ 106,319 $ 64,663 Freight logistics deposits (1) 3,136,294 2,910,327 Total other long-term assets - deposits $ 3,242,613 $ 2,974,990 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of net property and equipment | March 31, June 30, 2021 2020 Buildings $ 205,413 $ 190,518 Motor vehicles* 559,300 516,999 Computer equipment* 113,456 97,172 Office equipment* 46,994 43,587 Furniture and fixtures* 84,283 71,697 System software* 116,347 107,911 Leasehold improvements 848,253 786,745 Mining equipment 922,438 - Total 2,896,484 1,814,629 Less: Accumulated depreciation and amortization (1,627,546 ) (1,291,339 ) Property and equipment, net $ 1,268,938 $ 523,290 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | March 31, June 30, 2021 2020 Full service logistics platforms $ 190,000 $ 190,000 Less: Accumulated amortization (190,000 ) (163,611 ) Intangible assets, net $ - $ 26,389 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | March 31, June 30, 2021 2020 Salary and reimbursement payable $ 608,381 $ 795,855 Professional fees payable 106,100 629,524 Credit card payable 4,816 217,940 Total $ 719,297 $ 1,643,319 |
Loans Payable (Tables)
Loans Payable (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of loan repayment | Twelve Months Ending March 31, Loan Amount 2022 $ 8,660 2023 3,092 2024 3,210 2025 3,332 2026 3,460 Thereafter 134,146 Total loan payments $ 155,900 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of lease obligations | Twelve Months Ending March 31, Operating 2022 $ 231,834 2023 86,259 2024 50,979 2025 52,508 2026 54,083 Thereafter 4,631 Total lease payments 480,294 Less: Interest (74,129 ) Present value of lease liabilities $ 406,165 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of status of warrants outstanding and exercisable | Warrants Weighted Warrants outstanding, as of June 30, 2020 400,000 $ 8.75 Issued 14,010,280 5.44 Exercised (1,431,666 ) 3.81 Expired - - Warrants outstanding, as of March 31, 2021 12,978,614 $ 5.38 Warrants exercisable, as of March 31, 2021 12,978,614 $ 5.38 |
Schedule of warrant outstanding | Warrants Outstanding Warrants Weighted Average 2018 Series A, 400,000 363,334 $ 8.75 2.45 years 2020 warrants, 2,922,000 1,807,000 $ 2.085 4.42 years 2021 warrants, 11,088,280 10,808,280 $ 6.234 5.18 years |
Schedule of options | Options Weighted Options outstanding, as of June 30, 2020 17,000 $ 6.05 Granted - - Exercised - - Cancelled, forfeited or expired - - Options outstanding, as of March 31, 2021 17,000 $ 6.05 Options exercisable, as of March 31, 2021 17,000 $ 6.05 |
Schedule of status of options outstanding and exercisable | Outstanding Options Exercisable Options Exercise Price Number Average Average Number Average $ 10.05 2,000 1.84 years $ 10.05 2,000 1.84 years $ 5.50 15,000 0.32 years $ 5.50 15,000 0.32 years 17,000 17,000 |
Non-controlling interest (Table
Non-controlling interest (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of non-controlling interest | March 31, June 30, 2021 2020 Sino-China: Original paid-in capital $ 356,400 $ 356,400 Additional paid-in capital 1,044 1,044 Accumulated other comprehensive income 76,291 376,398 Accumulated deficit (6,224,293 ) (6,199,188 ) (5,790,558 ) (5,465,346 ) Trans Pacific Logistics Shanghai Ltd. (1,175,332 ) (1,077,015 ) Blumargo IT Solution Ltd. (4,036 ) - Total $ (6,969,926 ) $ (6,542,361 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expenses | For the three months For the nine months 2021 2020 2021 2020 Current U.S. $ - $ - $ (3,450 ) $ - PRC - (189,510 ) - (204,257 ) Total income tax expenses - (189,510 ) (3,450 ) (204,257 ) |
Schedule of deferred tax assets | March 31, June 30, Allowance for doubtful accounts U.S. $ 1,702,000 $ 1,329,000 PRC 3,082,000 2,888,000 Net operating loss U.S. 2,498,000 1,756,000 PRC 1,496,000 1,490,000 Total deferred tax assets 8,778,000 7,463,000 Valuation allowance (8,778,000 ) (7,463,000 ) Deferred tax assets, net - long-term $ - $ - |
Schedule of income tax payable | March 31, June 30, 2021 2020 VAT tax payable $ 1,103,624 $ 1,037,620 Corporate income tax payable 2,344,500 2,180,727 Others 67,314 62,001 Total $ 3,515,438 $ 3,280,348 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of information by segment | For the Three Months Ended March 31, 2021 Shipping Freight Container Others Total Net revenues $ - $ 953,194 $ - $ - $ 953,194 Cost of revenues $ - $ 1,098,922 $ - $ - $ 1,098,922 Gross profit $ - $ (145,728 ) $ - $ - $ (145,728 ) Depreciation and amortization $ 88,407 $ 4,641 $ - $ - $ 93,048 Total capital expenditures $ - $ - $ - $ 922,438 $ 922,438 Gross margin% - % (15.3 )% - % - % (15.3 )% For the Three Months Ended March 31, 2020 Shipping Freight Container Others Total Net revenues $ 500,000 $ 853,979 * $ - $ - $ 1,353,979 Cost of revenues $ 67,841 $ 821,266 * $ - $ - $ 889,107 Gross profit $ 432,159 $ 32,713 $ - $ - $ 464,872 Depreciation and amortization $ 79,732 $ 3,421 $ - $ - $ 83,153 Total capital expenditures $ - $ - $ - $ - $ - Gross margin% 86.4 % 3.8 % - % - % 34.3 % For the Nine Months Ended March 31, 2021 Shipping Freight Container Others Total Net revenues $ 206,845 $ 3,767,588 $ - $ - $ 3,974,433 Cost of revenues $ 176,968 $ 3,705,644 $ - $ - $ 3,882,612 Gross profit $ 29,877 $ 61,944 $ - $ - $ 91,821 Depreciation and amortization $ 246,485 $ 11,691 $ - $ - $ 258,176 Total capital expenditures $ - $ - $ - $ 922,438 $ 922,438 Gross margin% 14.4 % 1.6 % - % - % 2.3 % For the Nine Months Ended March 31, 2020 Shipping Freight Container Others Total Net revenues $ 1,500,000 $ 3,599,620 * $ 61,709 $ - $ 5,161,329 Cost of revenues $ 230,248 $ 2,042,595 * $ 55,313 $ - $ 2,328,156 Gross profit $ 1,269,752 $ 1,557,025 $ 6,396 $ - $ 2,833,173 Depreciation and amortization $ 261,648 $ 7,704 $ 50,920 $ - $ 320,272 Total capital expenditures $ 6,979 $ - $ - $ - $ 6,979 Gross margin% 84.7 % 43.3 % 10.4 % - % 54.9 % For the Three Months For the Nine Months March 31, March 31, March 31, March 31, 2021 2020 2021 2020 PRC $ 953,194 853,979 3,767,588 3,599,620 U.S. - 500,000 206,845 1,561,709 Total revenues $ 953,194 $ 1,353,979 $ 3,974,433 $ 5,161,329 |
Schedule of segment reporting total assets | March 31, June 30, 2021 2020 Shipping Agency and Management Services $ 49,610,687 $ 2,531,074 Freight Logistic Services 3,833,588 3,176,165 Container Trucking Services 21,862 30,863 Others 922,438 - Total Assets $ 54,388,575 $ 5,738,102 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of outstanding amounts due from related party | March 31, June 30, 2021 2020 Tianjin Zhiyuan Investment Group Co., Ltd. $ 384,331 $ 484,331 Less: allowance for doubtful accounts (384,331 ) (48,433 ) Total $ - $ 435,898 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) - USD ($) $ in Millions | Mar. 02, 2021 | Dec. 31, 2020 | Mar. 24, 2021 | Dec. 14, 2020 |
Organization and Nature of Business (Details) [Line Items] | ||||
Reverse stock split, description | After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the Company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. | |||
Ownership and joint venture equity, percentage | 60.00% | |||
Purchase agreement, description | The first cash payment of approximately $0.9 million was paid within 15 days after the date of signing the Agreement. The second cash payment of approximately $0.9 million will be paid within 15 days after the date of acceptance of the servers and a special VAT invoice provided by Yanghuai. The remaining payment of approximately $2.8 million will be paid in 5 quarters within 10 days following the filing of Form 10-K or Form 10-Q for each of the Company’s financial quarters ending March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022, subject to reductions if Yanghuai fails to meet the monthly committed net profit. | |||
Cash Or Stock Transaction Subject To Valuation | $ 5 | |||
Yanghuai [Member] | ||||
Organization and Nature of Business (Details) [Line Items] | ||||
Purchase agreement, description | the Company entered into a purchase agreement (the "Agreement") with Hebei Yanghuai Technology Co., Ltd. ("Yanghuai") for the purchase of 2,783 digital currency mining servers. The total gross purchase price was $4.6 million. The total computing power will reach 50,440 t/s. | |||
Blumargo IT Solution Ltd [Member] | ||||
Organization and Nature of Business (Details) [Line Items] | ||||
Ownership and joint venture equity, percentage | 80.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jun. 30, 2020USD ($) |
Accounting Policies [Abstract] | |||||||||
Net income, percentage | 90.00% | ||||||||
Cash balance at U.S. financial institutions, not insured by the FDIC | $ 47,768,630 | $ 47,768,630 | $ 47,768,630 | $ 126,720 | |||||
Insured each depositor at one bank | $ 70,000 | ¥ 500,000 | |||||||
Federal deposit insurance corporation expenses | $ 250,000 | ||||||||
Compensation expenses, description | Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of March 31, 2021 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $47,112,996 and $8,780, respectively. | ||||||||
Description of receivables and allowance for doubtful accounts | Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts. | ||||||||
Allowance for doutfull accounts | 999,960 | $ 3,121,416 | $ 1,033,414 | $ 4,428,108 | |||||
Accounts receivable | $ 3,255,938 | 2,492 | 3,255,938 | ||||||
No write off | 99,366 | ||||||||
Allowance for doubtful accounts of other receivables | 11,670 | ||||||||
Written off against other receivables | 1,763 | 11,670 | |||||||
Recoverey of other receivables | $ 94,046 | 124,216 | |||||||
Impairment | 127,177 | 127,177 | |||||||
Impairment of intangible assets | $ 200,455 | $ 200,455 | |||||||
Gross revenue description | For the three months ended March 31, 2020, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $2.0 million and $2.0 million, respectively. For the nine months ended March 31, 2020, gross revenue and gross cost of revenue related to these contracts amounted to approximately $24.0 million and $22.5 million, respectively. There was no such transaction for the three and nine months ended March 31, 2021. | ||||||||
Percentage Of Income Tax | 25.00% | ||||||||
VAT rate, description | The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. | ||||||||
Percentage of construction taxes | 7.00% | ||||||||
Percentage of education surcharges | 3.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Sino-China's assets and liabilities - Sino - China [Member] - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash | $ 30,119 | $ 5,022 |
Total current assets | 30,119 | 5,022 |
Deposits | 1,734 | 1,608 |
Property and equipment, net | 33,459 | 41,171 |
Total assets | 65,312 | 47,801 |
Current liabilities: | ||
Other payables and accrued liabilities | 39,214 | 39,919 |
Total liabilities | $ 39,214 | $ 39,919 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of translation of foreign currency exchange rates | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
RMD;1USD [Member] | Balance Sheet [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, balance sheet | 6.5528 | 6.5528 | 7.0651 | ||
RMD;1USD [Member] | Profits/Loss [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, Profits/Loss | 6.4834 | 6.9798 | 6.6769 | 7.0130 | |
AUD;1USD [Member] | Balance Sheet [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, balance sheet | 1.3135 | 1.3135 | 1.4514 | ||
AUD;1USD [Member] | Profits/Loss [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, Profits/Loss | 1.2943 | 1.5209 | 1.3541 | 1.4810 | |
HKD;1USD [Member] | Balance Sheet [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, balance sheet | 7.7750 | 7.7750 | 7.7505 | ||
HKD;1USD [Member] | Profits/Loss [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, Profits/Loss | 7.7573 | 7.7716 | 7.7533 | 7.8091 | |
CAD;1USD [Member] | Balance Sheet [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, balance sheet | 1.2571 | 1.2571 | 1.3617 | ||
CAD;1USD [Member] | Profits/Loss [Member] | |||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||||
Foreign currency, exchange rates, Profits/Loss | 1.2667 | 1.3417 | 1.3010 | 1.3272 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 9 Months Ended |
Mar. 31, 2021 | |
Buildings [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 20 years |
Motor vehicles [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 3 years |
Motor vehicles [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 10 years |
Computer and office equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 1 year |
Computer and office equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 5 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 5 years |
System software [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 5 years |
Leasehold improvements [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, term | Shorter of lease term or useful lives |
Mining equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment, net | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets estimated useful lives | 9 Months Ended |
Mar. 31, 2021 | |
Logistics Platform [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of revenues by segments - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of revenues by segments [Abstract] | ||||
Shipping and management agency services | $ 500,000 | $ 206,845 | $ 1,500,000 | |
Freight logistics services | 953,194 | 853,979 | 3,767,588 | 3,599,620 |
Container trucking services | 61,709 | |||
Total | $ 953,194 | $ 1,353,979 | $ 3,974,433 | $ 5,161,329 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations [Line Items] | ||||
Total revenues | $ 953,194 | $ 1,353,979 | $ 3,974,433 | $ 5,161,329 |
PRC [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations [Line Items] | ||||
Total revenues | 953,194 | 853,979 | 3,767,588 | 3,599,620 |
U.S. [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations [Line Items] | ||||
Total revenues | $ 500,000 | $ 206,845 | $ 1,561,709 |
Cryptocurrencies (Details) - Sc
Cryptocurrencies (Details) - Schedule of additional Information about cryptocurrencies | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Schedule of additional Information about cryptocurrencies [Abstract] | |
Beginning Balance | |
Receipt of cryptocurrencies from mining services | 153,205 |
Ending Balance | $ 153,205 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | ||||
Provision for doubtful accounts | $ 875,744 | $ 3,121,416 | $ 906,706 | $ 4,428,108 |
Repayments of accounts receivable securitization | 99,366 | $ 2,492 | 99,366 | |
Accounts receivable | $ 3,255,938 | $ 3,255,938 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of net accounts receivable - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of net accounts receivable [Abstract] | ||
Trade accounts receivable | $ 3,589,048 | $ 3,453,439 |
Less: allowances for doubtful accounts | (3,451,213) | (2,297,491) |
Accounts receivable, net | $ 137,835 | $ 1,155,948 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of allowance for doubtful accounts - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Schedule of allowance for doubtful accounts [Abstract] | ||
Beginning balance | $ 2,297,491 | $ 5,670,274 |
Provision for doubtful accounts, net of recovery | 1,033,414 | 4,896,640 |
Less: write-off | (126,708) | (8,220,754) |
Exchange rate effect | 247,016 | (48,669) |
Ending balance | $ 3,451,213 | $ 2,297,491 |
Other Receivables, Net (Details
Other Receivables, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 01, 2020 | |
Receivables [Abstract] | ||||
Allowance for doubtful debt | $ 11,000,000 | |||
Recovery of allowances | $ 94,046 | $ 124,216 | ||
Contract to advance | $ 580,000 | |||
Percentage of equipment caring value | 20.00% | |||
Provision for doubtful accounts | $ 11,670 | |||
Recovery of other receivables | $ 94,046 | 124,216 | ||
Wrote off other receivables | $ 11,670 | $ 1,763 |
Other Receivables, Net (Detai_2
Other Receivables, Net (Details) - Schedule of other receivables - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Sep. 30, 2019 | |
Schedule of other receivables [Abstract] | ||||
Advances to customers | [1] | $ 11,240,510 | $ 10,004,893 | |
Employee business advances | 592 | 51,334 | ||
Total | 11,241,102 | 10,056,227 | ||
Less: allowances for doubtful accounts | (10,660,834) | (10,005,193) | ||
Other receivables, net | $ 580,268 | $ 51,034 | ||
[1] | As of March 31, 2021 and June 30, 2020, the Company entered into certain contracts with customers (state-owned entities) where the Company’s services included freight costs and cost of commodities to be shipped to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. As aforementioned customers were negatively impacted by the pandemic and required additional time to execute existing contracts, they required additional time to pay. Due to significant uncertainty on whether the delayed contracts will be executed timely. As such, the Company had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. For the three and nine months ended March 31, 2021, the recovery of such allowances amounted to $94,046 and $124,216, respectively. On December 1, 2020, the Company entered into a freight logistics services and import contract with a third party for equipment import. Per contract term, the Company will act as their freight carriers and in charge the import matter of such equipment. The Company agreed to pay a deposit of $580,000 which is based on 20% of the total carrying value of equipment on behalf of customer to secure the equipment. The advance will be repaid to the Company when the contract is fulfilled in around June 2021. |
Other Receivables, Net (Detai_3
Other Receivables, Net (Details) - Schedule of movement of allowance for doubtful accounts - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Schedule of movement of allowance for doubtful accounts [Abstract] | ||
Beginning balance | $ 10,005,193 | |
Provision for doubtful accounts, net of recovery | (112,546) | 10,055,203 |
Less: write-off | (11,670) | (1,763) |
Exchange rate effect | 779,856 | (48,247) |
Ending balance | $ 10,660,834 | $ 10,005,193 |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - Schedule of advances to suppliers – third parties - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | ||
Schedule of advances to suppliers – third parties [Abstract] | |||
Freight fees | [1] | $ 612,860 | $ 48,875 |
[1] | The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from April to June 2021. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other assets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of prepaid expenses and other assets [Abstract] | ||
Prepaid income taxes | $ 210,913 | $ 48,924 |
Other (including prepaid professional fees, rent, listing fees) | 15,923 | 41,458 |
Total | $ 226,836 | $ 90,382 |
Other Long-Term Assets - Depo_3
Other Long-Term Assets - Deposits (Details) - 9 months ended Mar. 31, 2021 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Other Longterm Assets Deposits [Abstract] | ||
Deposits are refundable amount | $ 3.1 | ¥ 20 |
Other Long-Term Assets - Depo_4
Other Long-Term Assets - Deposits (Details) - Schedule of other long term assets deposits - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | |
Schedule of other long term assets deposits [Abstract] | |||
Rental and utilities deposits | $ 106,319 | $ 64,663 | |
Freight logistics deposits | [1] | 3,136,294 | 2,910,327 |
Total other long-term assets - deposits | $ 3,242,613 | $ 2,974,990 | |
[1] | Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise, as well as any non-performance on the part of the Company and its vendors. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 14,690 | $ 67,320 | $ 231,787 | $ 254,549 |
Impairment | $ 127,177 | $ 127,177 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of net property and equipment - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 2,896,484 | $ 1,814,629 | |
Less: Accumulated depreciation and amortization | (1,627,546) | (1,291,339) | |
Property and equipment, net | 1,268,938 | 523,290 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 205,413 | 190,518 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | [1] | 559,300 | 516,999 |
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | [1] | 113,456 | 97,172 |
Office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | [1] | 46,994 | 43,587 |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | [1] | 84,283 | 71,697 |
System software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | [1] | 116,347 | 107,911 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 848,253 | $ 786,745 | |
Mining equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 922,438 | ||
[1] | For the three and nine months ended March 31, 2020, an impairment of $127,177 was recorded due to continued decrease in revenues from the inland transportation management segment, no impairment was recorded for same period 2020. |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 15,833 | $ 26,389 | $ 65,723 | |
Impairment of Intangible Assets, Finite-lived | $ 200,455 | $ 200,455 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets net - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of intangible assets net [Abstract] | ||
Full service logistics platforms | $ 190,000 | $ 190,000 |
Less: Accumulated amortization | (190,000) | (163,611) |
Intangible assets, net | $ 26,389 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Salary and reimbursement payable | $ 608,381 | $ 795,855 |
Professional fees payable | 106,100 | 629,524 |
Credit card payable | 4,816 | 217,940 |
Total | $ 719,297 | $ 1,643,319 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | May 11, 2020 | May 26, 2020 |
Debt Disclosure [Abstract] | ||
Loan proceeds | $ 124,570 | |
Loan payable, description | The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended 24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. | |
Advance amount | $ 155,900 | |
Description of loans payable | the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter. The SBA loans are scheduled to mature on May 22, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable of $731, including principal and interest, commenced on May 22, 2021. The balance of principal and interest will be payable 30 years from the date of May 22, 2020. $5,900 of the loan will be forgiven. As of March 31, 2021, $155,900 of loan payable remains outstanding. Interest expense for the three and nine months ended March 31, 2021 for this loan was $1,387 and $4,207, respectively. |
Loans Payable (Details) - Sched
Loans Payable (Details) - Schedule of loan repayment | Mar. 31, 2021USD ($) |
Schedule of loan repayment [Abstract] | |
2021 | $ 8,660 |
2022 | 3,092 |
2023 | 3,210 |
2024 | 3,332 |
2025 | 3,460 |
Thereafter | 134,146 |
Total loan payments | $ 155,900 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Leases (Details) [Line Items] | |||||
Lease liability | $ 200,000 | $ 200,000 | |||
Weighted average discount rate | 10.15% | 10.15% | |||
Right-of-use assets | $ 381,743 | $ 381,743 | $ 300,114 | ||
Lease labilities | 406,165 | 406,165 | |||
Lease liabilities current portion | 193,799 | 193,799 | |||
Lease liabilities noncurrent | 212,366 | $ 212,366 | $ 132,699 | ||
Expiration term | 3 years 62 days | ||||
Rent expense | $ 67,000 | $ 65,000 | $ 224,000 | $ 223,000 | |
Minimum [Member] | |||||
Leases (Details) [Line Items] | |||||
Lease term | 2 years | 2 years | |||
Maximum [Member] | |||||
Leases (Details) [Line Items] | |||||
Lease term | 3 years | 3 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease obligations | Mar. 31, 2021USD ($) |
Schedule of lease obligations [Abstract] | |
2022 | $ 231,834 |
2023 | 86,259 |
2024 | 50,979 |
2025 | 52,508 |
2026 | 54,083 |
Thereafter | 4,631 |
Total lease payments | 480,294 |
Less: Interest | (74,129) |
Present value of lease liabilities | $ 406,165 |
Equity (Details)
Equity (Details) - USD ($) | Feb. 09, 2021 | Feb. 06, 2021 | Jan. 27, 2021 | Dec. 08, 2020 | Nov. 03, 2020 | Dec. 09, 2019 | Oct. 14, 2019 | Oct. 03, 2019 | Apr. 08, 2019 | Jun. 07, 2018 | Feb. 28, 2021 | Sep. 17, 2020 | Jul. 07, 2020 | Jul. 22, 2019 | Jul. 02, 2019 | Mar. 31, 2017 | Jan. 30, 2016 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 27, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Nov. 02, 2020 | Jun. 30, 2020 | |
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Aggregate shares of common stock (in Shares) | 1,560,000 | |||||||||||||||||||||||||||
Offering cost | $ 1,430,000 | |||||||||||||||||||||||||||
Warrants exercise price (in Dollars per share) | $ 1.99 | |||||||||||||||||||||||||||
Warrants expire term | minus 5 years 6 months | |||||||||||||||||||||||||||
Common stock price per share (in Dollars per share) | $ 5.97 | |||||||||||||||||||||||||||
Common stock issued (in Shares) | 60,000 | 14,961,999 | 14,961,999 | 3,718,788 | ||||||||||||||||||||||||
Purchase price (in Shares) | 3.10 | |||||||||||||||||||||||||||
Aggregate net proceeds | $ 26,100,000 | $ 12,400,000 | $ 4,836,000 | $ 52,772,977 | $ 885,946 | |||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 3.10 | |||||||||||||||||||||||||||
Term expire | minus 3 years 6 months | |||||||||||||||||||||||||||
Aggregate share of common stock (in Shares) | 3,655,000 | 1,998,500 | 1,086,956 | |||||||||||||||||||||||||
Purchase price for each share of common stock warrants (in Dollars per share) | $ 3.68 | |||||||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 5 | |||||||||||||||||||||||||||
Warrant exercise term | The Warrants will be exercisable at any time during the period beginning on or after July 27, 2021 and ending on or prior on January 27, 2026 but not thereafter; provided, however, that the total number of the Company’s issued and outstanding shares of Common Stock, multiplied by the NASDAQ official closing bid price of the Common Stock shall equal or exceed $0.3 billion for a three consecutive month period prior to an exercise. | |||||||||||||||||||||||||||
Common stock shall equal or exceed value | $ 300,000,000 | $ 300,000,000 | ||||||||||||||||||||||||||
Purchase price per shares (in Dollars per share) | $ 7.80 | $ 6.805 | ||||||||||||||||||||||||||
Common stock exercise price (in Dollars per share) | $ 7.80 | $ 6.805 | ||||||||||||||||||||||||||
Cancellation of treasury shares (in Shares) | 35,099 | |||||||||||||||||||||||||||
Common stock, Description | the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock. | |||||||||||||||||||||||||||
Consulting fees | $ 35,139 | 140,556 | ||||||||||||||||||||||||||
Consulting services agreement , description | The scope of services primarily covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded compensation expense of $108,000 and $324,000 for the three and nine months ended March 31, 2020, respectively. | |||||||||||||||||||||||||||
Compensation expense | $ 111,000 | 222,000 | ||||||||||||||||||||||||||
Authorized grants, description | Included in a Board resolution dated January 30, 2016, the Company’s CEO is authorized to grant to the employees up to one million shares under the Company’s 2014 Stock Incentive Plan (the “Plan”). | |||||||||||||||||||||||||||
Issuance of common stock | $ 1,427,600 | |||||||||||||||||||||||||||
Stock-based compensation | $ 346,439 | $ 1,252,756 | ||||||||||||||||||||||||||
Restricted Stock [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Restricted common shares (in Shares) | 18,000 | 120,000 | ||||||||||||||||||||||||||
Restricted common shares fair value | $ 63,000 | $ 432,000 | ||||||||||||||||||||||||||
Restricted per share value (in Dollars per share) | $ 3.50 | |||||||||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Aggregate shares of common stock (in Shares) | 1,998,500 | |||||||||||||||||||||||||||
Purchase of warrants (in Shares) | 0.68 | 720,000 | ||||||||||||||||||||||||||
Purchase price per share (in Dollars per share) | $ 156,400 | $ 1.46 | ||||||||||||||||||||||||||
Net proceeds | $ 1,050,000 | |||||||||||||||||||||||||||
Warrants price per share (in Dollars per share) | $ 1.825 | |||||||||||||||||||||||||||
Description of warrant rights | The warrants will expire on March 16, 2026. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise the warrants if the Company’s common stock trades at or above $4.38 for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date. | |||||||||||||||||||||||||||
Warrants to purchase of common stock (in Shares) | 4,000,000 | 4,000,000 | ||||||||||||||||||||||||||
Aggregate net proceeds | $ 4,800,000 | |||||||||||||||||||||||||||
Aggregate share of common stock (in Shares) | 3,655,000 | 5,434,780 | ||||||||||||||||||||||||||
Exercised warrants to purchase shares | 1,431,666 | |||||||||||||||||||||||||||
Common stock shares issued (in Shares) | 1,362,755 | |||||||||||||||||||||||||||
Shares exercised (in Shares) | 147,755 | |||||||||||||||||||||||||||
Compensation expense | $ 0 | 156,400 | ||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Preferred stock conversion (in Shares) | 860,000 | |||||||||||||||||||||||||||
Common stock shares issued (in Shares) | [1] | 6,740,456 | 1,560,000 | 720,000 | 99,900 | 100,100 | ||||||||||||||||||||||
Issuance of common stock | ||||||||||||||||||||||||||||
Consultants [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Common stock issued for services, shares (in Shares) | 50,000 | |||||||||||||||||||||||||||
Restricted share price (in Dollars per share) | $ 12.65 | |||||||||||||||||||||||||||
Restricted common stock value issued | $ 632,500 | |||||||||||||||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ 0 | 63,000 | ||||||||||||||||||||||||||
Securities Purchase Agreements [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Aggregate shares of common stock (in Shares) | 1,170,000 | 230,000 | 720,000 | |||||||||||||||||||||||||
Service Agreements [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Restricted share price (in Dollars per share) | $ 222,000 | |||||||||||||||||||||||||||
Issuance of common stock shares (in Shares) | 80,000 | |||||||||||||||||||||||||||
Fair value of common stock | $ 508,000 | |||||||||||||||||||||||||||
Consulting services agreement , description | The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June 2020. The consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal installments. | |||||||||||||||||||||||||||
Compensation expense | $ 63,500 | $ 190,500 | ||||||||||||||||||||||||||
Issuance of common stock | $ 300,000 | |||||||||||||||||||||||||||
Consulting services agreement [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Consulting services agreement , description | the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from April 8, 2019 to October 7, 2019. The Company issued 60,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $4.25 per share on April 16, 2019 to the consulting entity. These shares were valued at $255,000. The Company recorded compensation expense of $0 and $127,500 for the three and nine months ended March 31, 2020, respectively. | |||||||||||||||||||||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Aggregate issued shares (in Shares) | 860,000 | |||||||||||||||||||||||||||
Warrants to purchase of common stock (in Shares) | 1,032,000 | |||||||||||||||||||||||||||
Preferred stock conversion (in Shares) | 860,000 | |||||||||||||||||||||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Warrants price per share (in Dollars per share) | $ 1.66 | |||||||||||||||||||||||||||
[1] | Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020. |
Equity (Details) - Schedule of
Equity (Details) - Schedule of status of warrants outstanding and exercisable - Warrant [Member] | 9 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Equity (Details) - Schedule of status of warrants outstanding and exercisable [Line Items] | |
Warrants outstanding, Warrants beginning | shares | 400,000 |
Warrants outstanding, Weighted Average Exercise Price, beginning | $ / shares | $ 8.75 |
Warrants outstanding, Warrants ending | shares | 12,978,614 |
Warrants outstanding, Weighted Average Exercise Price, ending | $ / shares | $ 5.38 |
Warrants exercisable, Warrants | shares | 12,978,614 |
Warrants exercisable, Weighted Average Exercise Price | $ / shares | $ 5.38 |
Warrants, Issued | shares | 14,010,280 |
Weighted Average Exercise Price, Issued | $ / shares | $ 5.44 |
Warrants, Exercised | shares | (1,431,666) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 3.81 |
Warrants, Expired | shares | |
Weighted Average Exercise Price, Expired | $ / shares |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of warrants outstanding | 9 Months Ended |
Mar. 31, 2021$ / sharesshares | |
2020 warrants [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 1,807,000 |
Weighted Average Exercise Price | $ / shares | $ 2.085 |
Average Remaining Contractual Life | 4 years 153 days |
2021 warrants [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 10,808,280 |
Weighted Average Exercise Price | $ / shares | $ 6.234 |
Average Remaining Contractual Life | 5 years 65 days |
2018 Series A [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 363,334 |
Weighted Average Exercise Price | $ / shares | $ 8.75 |
Average Remaining Contractual Life | 2 years 164 days |
Equity (Details) - Schedule o_3
Equity (Details) - Schedule of options - Stock Options [Member] | 9 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Equity (Details) - Schedule of options [Line Items] | |
Options outstanding, Beginning | shares | 17,000 |
Weighted Average Exercise Price, Options outstanding, Beginning | $ / shares | $ 6.05 |
Options outstanding, ending | shares | 17,000 |
Weighted Average Exercise Price, Options outstanding, ending | $ / shares | $ 6.05 |
Options, exercisable | shares | 17,000 |
Weighted Average Exercise Price, Options, exercisable | $ / shares | $ 6.05 |
Options, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Options, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Options, Cancelled, forfeited or expired | shares | |
Weighted Average Exercise Price, Cancelled, forfeited or expired | $ / shares |
Equity (Details) - Schedule o_4
Equity (Details) - Schedule of status of options outstanding and exercisable - Stock Option [Member] | 9 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding Options, Number | 17,000 |
Exercisable Options, Number | 17,000 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding Options, Exercise Price (in Dollars per share) | $ / shares | $ 10.05 |
Outstanding Options, Number | 2,000 |
Outstanding Options, Average Remaining Contractual Life | 1 year 306 days |
Exercisable Options, Average Exercise Price (in Dollars per share) | $ / shares | $ 10.05 |
Exercisable Options, Number | 2,000 |
Exercisable Options, Average Remaining Contractual Life | 1 year 306 days |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding Options, Exercise Price (in Dollars per share) | $ / shares | $ 5.50 |
Outstanding Options, Number | 15,000 |
Outstanding Options, Average Remaining Contractual Life | 116 days |
Exercisable Options, Average Exercise Price (in Dollars per share) | $ / shares | $ 5.50 |
Exercisable Options, Number | 15,000 |
Exercisable Options, Average Remaining Contractual Life | 116 days |
Non-controlling interest (Detai
Non-controlling interest (Details) - Schedule of non-controlling interest - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Sino - China [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Total | $ (6,969,926) | $ (6,542,361) |
Sino - China [Member] | Noncontrolling Interest [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Original paid-in capital | 356,400 | 356,400 |
Additional paid-in capital | 1,044 | 1,044 |
Accumulated other comprehensive income | 76,291 | 376,398 |
Accumulated deficit | (6,224,293) | (6,199,188) |
Total | (5,790,558) | (5,465,346) |
Trans Pacific Logistics Shanghai Ltd. [Member] | Noncontrolling Interest [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Total | (1,175,332) | (1,077,015) |
Blumargo IT Solution Ltd [Member] | Noncontrolling Interest [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Total | $ (4,036) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Severance payments | $ 106,000 | $ 84,000 |
Employment agreements, description | In such case during the initial term of the agreement, the Company would need to pay such executive (i) the remaining salary through the date of December 31, 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. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Income Taxes (Details) [Line Items] | |||
Operating loss carryforwards | $ 6,456,000 | ||
Additional net operating loss | $ 1,022,000 | $ 2,718,000 | |
Tax benefit derived from such NOL | 215,000 | 571,000 | |
Future taxable income | 700,000 | 700,000 | |
Federal taxable income net operating loss | $ 1,400,000 | 1,400,000 | |
Taxable income | $ 5,986,000 | ||
Allowance of DTA | 100.00% | 100.00% | |
The net increase in valuation deferred tax assets | $ 616,000 | $ 1,315,000 | |
UNITED STATES [Member] | |||
Income Taxes (Details) [Line Items] | |||
Future taxable income | 9,174,000 | 9,174,000 | |
PRC [Member] | |||
Income Taxes (Details) [Line Items] | |||
Operating loss carryforwards | $ 5,961,000 | ||
Additional net operating loss | 18,000 | 25,000 | |
Tax benefit derived from such NOL | $ 4,000 | $ 6,000 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income tax expenses - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current | ||||
Total income tax expenses | $ (189,510) | $ (3,450) | $ (204,257) | |
U.S. [Member] | ||||
Current | ||||
Current income tax expenses | (3,450) | |||
PRC [Member] | ||||
Current | ||||
Current income tax expenses | $ (189,510) | $ (204,257) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Net operating loss | ||
Total deferred tax assets | $ 8,778,000 | $ 7,463,000 |
Valuation allowance | (8,778,000) | (7,463,000) |
Deferred tax assets, net - long-term | ||
U.S. [Member] | ||
Allowance for doubtful accounts | ||
Allowance for doubtful accounts | 1,702,000 | 1,329,000 |
Net operating loss | ||
Net operating loss | 2,498,000 | 1,756,000 |
PRC [Member] | ||
Allowance for doubtful accounts | ||
Allowance for doubtful accounts | 3,082,000 | 2,888,000 |
Net operating loss | ||
Net operating loss | $ 1,496,000 | $ 1,490,000 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of income tax payable - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of income tax payable [Abstract] | ||
VAT tax payable | $ 1,103,624 | $ 1,037,620 |
Corporate income tax payable | 2,344,500 | 2,180,727 |
Others | 67,314 | 62,001 |
Total | $ 3,515,438 | $ 3,280,348 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Number of customer | 2 | 2 | 1 | 3 |
Number of Suppliers | 2 | 2 | 2 | 4 |
Major Customer One [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 62.20% | 87.30% | 40.00% | |
Major Customer One [Member] | Accounts Receivable [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Number of customer | 1 | 1 | 1 | 1 |
Concentrations risks, percentage | 96.20% | 85.90% | 96.20% | 85.90% |
Major Customer Two [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 36.90% | 29.10% | ||
Major Customer Three [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 28.30% | |||
Major Supplier One [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 49.40% | 27.20% | ||
Major Supplier Two [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 24.70% | |||
Major Customer One [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 69.60% | |||
Major Customer Two [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 25.80% | |||
Major Supplier One [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 57.40% | 48.30% | ||
Major Supplier Two [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 24.70% | 28.00% | 33.80% | |
Major Supplier Three [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 18.20% | |||
Major Supplier Four [Member] | Revenue Benchmark [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentrations risks, percentage | 10.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Segment Reporting [Abstract] | ||
Gross revenue | $ 2 | $ 24 |
Gross cost of revenue | $ 2 | $ 22.5 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of information by segment - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 953,194 | $ 1,353,979 | $ 3,974,433 | $ 5,161,329 | ||
Cost of revenues | 1,098,922 | 889,107 | 3,882,612 | 2,328,156 | ||
Gross profit | (145,728) | 464,872 | 91,821 | 2,833,173 | ||
Depreciation and amortization | 93,048 | 83,153 | 258,176 | 320,272 | ||
Total capital expenditures | $ 922,438 | $ 922,438 | $ 6,979 | |||
Gross margin% | (15.30%) | 34.30% | 2.30% | 54.90% | ||
Total revenues | $ 953,194 | $ 1,353,979 | $ 3,974,433 | $ 5,161,329 | ||
PRC [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 953,194 | 853,979 | 3,767,588 | 3,599,620 | ||
UNITED STATES [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 500,000 | 206,845 | 1,561,709 | |||
Shipping Agency and Management Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 500,000 | 206,845 | 1,500,000 | |||
Cost of revenues | 67,841 | 176,968 | 230,248 | |||
Gross profit | 432,159 | 29,877 | 1,269,752 | |||
Depreciation and amortization | 88,407 | 79,732 | 246,485 | 261,648 | ||
Total capital expenditures | $ 6,979 | |||||
Gross margin% | 86.40% | 14.40% | 84.70% | |||
Freight Logistics Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 953,194 | $ 853,979 | [1] | $ 3,767,588 | $ 3,599,620 | [2] |
Cost of revenues | 1,098,922 | 821,266 | [1] | 3,705,644 | 2,042,595 | [2] |
Gross profit | (145,728) | 32,713 | 61,944 | 1,557,025 | ||
Depreciation and amortization | 4,641 | 3,421 | 11,691 | 7,704 | ||
Total capital expenditures | ||||||
Gross margin% | (15.30%) | 3.80% | 1.60% | 43.30% | ||
Freight Logistics Services [Member] | UNITED STATES [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | ||||||
Container Trucking Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 61,709 | |||||
Cost of revenues | 55,313 | |||||
Gross profit | 6,396 | |||||
Depreciation and amortization | 50,920 | |||||
Total capital expenditures | ||||||
Gross margin% | 10.40% | |||||
Others [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | ||||||
Cost of revenues | ||||||
Gross profit | ||||||
Depreciation and amortization | ||||||
Total capital expenditures | $ 922,438 | $ 922,438 | ||||
Gross margin% | ||||||
[1] | For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended March 31, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $2.0 million and $2.0 million, respectively. There was no such transaction for the three months ended March 31, 2021. | |||||
[2] | For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the nine months ended March 31, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $24.0 million and $22.5 million, respectively. There was no such transaction for the nine months ended March 31, 2021. |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of segment reporting total assets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 54,388,575 | $ 5,738,102 |
Shipping Agency and Management Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 49,610,687 | 2,531,074 |
Freight Logistic Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 3,833,588 | 3,176,165 |
Container Trucking Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 21,862 | $ 30,863 |
Others [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 922,438 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Related Party Transactions (Details) [Line Items] | |||
Allowance for doubtful accounts | $ 10,000 | $ 41,341 | |
CEO [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Other payable of related party | 11,197 | $ 6,279 | |
CFO [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Other payable of related party | 2,132 | $ 26,570 | |
Zhiyuan Investment Group [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Allowance for doubtful accounts | $ 345,898 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of outstanding amounts due from related party - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Related Party Transactions (Details) - Schedule of outstanding amounts due from related party [Line Items] | ||
Total | $ 435,898 | |
Less: allowance for doubtful accounts | (384,331) | (48,433) |
Tianjin Zhiyuan Investment Group Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of outstanding amounts due from related party [Line Items] | ||
Total | $ 384,331 | $ 484,331 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - shares shares in Millions | Apr. 13, 2021 | Apr. 21, 2021 |
Subsequent Events (Details) [Line Items] | ||
Equity interest owned, percentage | 99.00% | 51.00% |
Purchase shares (in Shares) | 1.5 |