| 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 its
subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Prior to December 31, 2021, Sino-China was considered
a VIE, with the Company as the primary beneficiary. The Company, through Trans Pacific Beijing, entered into certain agreements with Sino-China,
pursuant to which the Company received 90% of Sino-China’s net income.
As a VIE, Sino-China’s revenues were included
in the Company’s total revenues, and any income/loss from operations was consolidated with that of the Company. Because of contractual
arrangements between the Company and Sino-China, the Company had a pecuniary interest in Sino-China that required 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 was governed by a series of contractual arrangements pursuant
to which the Company had substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the
primary beneficiary of Sino-China. On December 31, 2021, the Company entered into a series of agreements to terminate its VIE structure
and deconsolidated its formerly controlled entity Sino-China. Loss from disposal of Sino-China amounted to
approximately $6.1 million. Since Sino-China did not have any active operation prior to disposal, the disposal did not represent a
strategic change in the Company’s business, as such the disposal was not presented as discontinued operations. The carrying amount and classification of Sino-China’s
assets and liabilities included in the Company’s consolidated balance sheets were as follows:
March 31, June 30,
2022 2021
Current assets:
Cash $ $ 113,779
Total current assets - 113,779
Deposits - 56
Total assets $ - $ 113,835
Current liabilities:
Other payables and accrued liabilities $ - $ 32,939
Total liabilities $ - $ 32,939 (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 Trans Pacific
Beijing 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 (HK), Ltd. 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, 2022 and June
30, 2021 and for the three and nine months ended March 31, 2022 and 2021 are as follows:
March 31, June 30, 2021 Three months ended March 31, Nine months ended March 31,
Foreign currency Balance Balance 2022 Profits/Loss 2021 Profits/Loss 2022 Profits/Loss 2021 Profits/Loss
1USD: RMB 6.3411 6.4586 6.3483 6.4834 6.4048 6.6769
1USD: AUD 1.3338 1.3342 1.3822 1.2943 1.3720 1.3541
1USD: HKD 7.8325 7.7661 7.8044 7.7573 7.7906 7.7533
1USD: CAD 1.2483 1.2404 1.2671 1.2667 1.2623 1.3010 (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, 2022 and June 30, 2021, cash balances of $683,191 and $629,731, respectively, were maintained at financial
institutions in the PRC. $491,575 and $201,990 of these balances are not covered by insurance as the deposit insurance system in China
only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). As of March 31, 2022 and June 30, 2021,
cash balances of $59,626,433 and $44,203,436, respectively, were maintained at U.S. financial institutions. $58,017,993 and $43,507,335
of these balances are not covered by insurance, as each U.S. account was insured by the Federal Deposit Insurance Corporation or other
programs subject to $250,000 limitations. 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, 2022 and June 30, 2021, cash
balances of $36,574 and $3,457, respectively, were maintained at financial institutions in Hong Kong and were insured by the Hong Kong
Deposit Protection Board. As of March 31, 2022 and June 30, 2021, cash balances of $208 and $693, respectively, were maintained at Australia
financial institutions, and were insured as the Australian government guarantees deposits up to AUD 250,000 (approximately $172,000).
As of March 31, 2022 and June 30, 2021, amount of deposits the Company had covered by insurance amounted to $1,836,837 and $1,125,838,
respectively. (f) Cryptocurrencies Cryptocurrencies, mainly bitcoin, are included
in current assets in the accompanying consolidated balance sheets. Cryptocurrencies purchased are recorded at cost. Fair value of the
cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. 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. Other receivables represent mainly customer advances,
prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, project advances 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. (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. For the three and nine months ended March 31, 2022 and 2021, no impairment were recorded, respectively. (i) Investments in unconsolidated entity Entities in which the Company has the ability
to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence
is generally considered to exist when the Company has voting shares representing 20% to 50%, and other factors, such as representation
on the board of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method
of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses
of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method
investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or
higher to represent significant influence. The Company accounts for the investments in entities over which it has neither control nor
significant influence, and no readily determinable fair value is available, using the investment cost minus any impairment, if necessary. Investments are evaluated for impairment when
facts or circumstances indicate that the fair value of the long-term investment is less than its carrying value. An impairment loss is
recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether
a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration
of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investment;
and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. On January 10,
2020, the Company entered into a cooperation agreement with Mr. Shanming Liang, a shareholder of the Company, to set up a joint venture
in New York named LSM Trading Ltd., in which the Company holds a 40% equity interest. The joint venture hasn’t commenced any operations
due to the impact of COVID-19. Shanming Liang subsequently transferred his interest
to Guangxi Golden Bridge Industry Group Co., Ltd on October 11, 2021. For
the three and nine months ended March 31, 2022, the Company recorded $210,010 investment in unconsolidated entity and no events have occurred
that indicated other-than-temporary impairment existed for the three and nine months ended March 31, 2022. (j) Convertible notes The Company evaluates its convertible notes to
determine if those contracts or embedded components of those contracts qualify as derivatives. The result of this accounting treatment
is that the fair value of the embedded derivative is recorded at fair value each reporting period and recorded as a liability. In the
event that the fair value is recorded as a liability, the change in fair value is recorded in the statements of operations as other income
or expense. (k) 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. On January 10, 2022, the Company’s
joint venture, Thor Miner, entered into a purchase and sale agreement with SOS Information Technology New York Inc. (“SOSNY”).
Pursuant to the purchase and sale agreement, Thor Miner agreed to sell and SOSNY agreed to purchase certain cryptocurrency mining hardware
and other equipment. Thor Miner and SOSNY agreed that SOSNY shall make payment equal to 50% of the total purchase price within 5 days
after the execution of the purchase and sale agreement, and the remaining 50% for each order shall be paid at least seven (7) calendar
days before the shipment. On January 14, 2022, Thor Miner received an advance payment of $40,000,000 for the first order. In connection
with the order, the Company issued 800,000 restricted shares to a consultant as costs for obtaining the contract. The shares were valued
at approximately $3.6 million and was recorded as stock compensation expenses for the three and nine months ended March 31, 2022. 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
2022 2021 2022 2021
Shipping agency and management services $ - $ - $ - $ 206,845
Freight logistics services 971,747 953,194 2,829,682 3,767,588
Total $ 971,747 $ 953,194 $ 2,829,682 $ 3,974,433
● Revenues from shipping
agency and management 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. 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,
2022 2021 2022 2021
PRC $ 648,964 $ 953,194 $ 2,242,296 $ 3,767,588
U.S. 322,783 - 587,386 206,845
Total revenues $ 971,747 $ 953,194 $ 2,829,682 $ 3,974,433 (l) 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, 2022 and 2021. Income tax returns for the years prior to 2018
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 Beijing were incorporated in the PRC and are subject to 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, including Trans Pacific, and the VIE, and Sino-China, 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 consolidated balance sheets. In addition, under the PRC regulations, the Company’s
PRC subsidiaries and VIE are required to pay city construction tax (7%) and education surcharges (3%) based on the net VAT payments. (m) 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,
2022 and 2021, there was no dilutive effect of potential shares of common stock of the Company because the Company generated net loss. (n) 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. (o) 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. (p) 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, 2022. 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. (q) Recent Accounting Pronouncements 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 the 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 adoption
of this new standard did not have a material impact on the 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. The Company adopted this new standard on July 1, 2021 on its accounting for the convertible
notes issued in December 2021. In October 2020, the FASB issued ASU 2020-08,
“Codification Improvements to Subtopic 310-20, Receivables—Non-refundable 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 adoption of this new standard did not have a material impact on the Company’s unaudited
condensed consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-10,
“Codification Improvements”. The amendments in this Update represent changes to clarify the Codification or correct unintended
application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative
cost to most entities. The amendments in this Update affect a wide variety of Topics in the Codification and apply to all reporting entities
within the scope of the affected accounting guidance. ASU 2020-10 is effective for annual periods beginning after July 1, 2021 for public
business entities. Early application is perm |
