Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2021 | Feb. 22, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | Verde Resources, Inc. | |
Entity Central Index Key | 0001506929 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Dec. 31, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 810,742,109 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55276 | |
Entity Incorporation State Country Code | NV | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 32-0457838 | |
Entity Address Address Line 1 | Block B-5, 20/F | |
Entity Address Address Line 2 | Great Smart Tower, 230 Wanchai Road | |
Entity Address City Or Town | Wanchai | |
Local Phone Number | 21521223 | |
City Area Code | 852 | |
Entity Address Country | HK |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 1,176,729 | $ 2,117,622 |
Other receivables | 0 | 26,338 |
Advanced to related party | 125,408 | 6,691 |
Other deposit & prepayment | 117,200 | 6,137 |
Total Current Assets | 1,419,337 | 2,156,788 |
Long Term Assets | ||
Property, plant and equipment | 89,967 | 555 |
Right of use assets | 44,292 | 60,131 |
Deposit paid for acquisition of subsidiaries | 25,971,555 | 25,971,680 |
Deposit paid for acquisition of property, plant and equipment | 6,040,000 | 4,870,000 |
Total Long Term Assets | 32,145,814 | 30,902,366 |
TOTAL ASSETS | 33,565,151 | 33,059,154 |
Current Liabilities | ||
Accounts payable | 1,921 | 2,655 |
Advanced from related parties | 590,353 | 585,783 |
Hire purchase creditor | 10,440 | 0 |
Accrual and other payables | 193,170 | 164,849 |
Total Current Liabilities | 795,884 | 753,287 |
Long term Liabilities | ||
Hire purchase creditors | 49,593 | 0 |
Promissory notes | 17,490,876 | 16,535,942 |
Total Long Term Liabilities | 17,540,469 | 16,535,942 |
TOTAL LIABILITIES | 18,336,353 | 17,289,229 |
STOCKHOLDERS' DEFICIT | ||
Preferred stock, par value $0.001, 50,000,000shares authorized, none issued and outstanding | 0 | 0 |
Common stock, par value $0.001, 10,000,000,000 shares authorized, 810,742,109and779,742,109shares issued and outstanding as of December 31, 2021 & June 30, 2021 respectively | 810,742 | 779,742 |
Additional paid-in capital | 21,789,289 | 20,699,067 |
Accumulated deficit | (7,562,240) | (5,913,255) |
Accumulated other comprehensive income (loss) | 649,241 | 646,205 |
Non-controlled interest | (458,234) | (441,834) |
Total Stockholders' Deficit | 15,228,798 | 15,769,925 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 33,565,151 | $ 33,059,154 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 810,742,109 | 779,742,109 |
Common stock, shares outstanding | 810,742,109 | 779,742,109 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
OPERATING EXPENSES: | ||||
Selling, general & administrative expenses | (359,105) | (34,512) | (723,101) | (98,792) |
LOSS FROM OPERATIONS | (359,105) | (34,512) | (723,101) | (98,792) |
INTEREST EXPENSES | (484,168) | 0 | (954,934) | 0 |
OTHER INCOME(EXPENSES) | 25 | 0 | 12,115 | 0 |
NET LOSS BEFORE INCOME TAX | (843,248) | (34,512) | (1,665,920) | (98,792) |
Provision of Income Tax | 0 | 0 | 0 | 0 |
NET LOSS | (843,248) | (34,512) | (1,665,920) | (98,792) |
Non-controlled interest | 12,556 | 3,688 | 16,935 | 6,986 |
Net loss contributed to the group | (830,692) | (30,824) | (1,648,985) | (91,806) |
Other comprehensive income(loss) | ||||
Foreign currency translation income(loss) | (5,423) | (87,360) | 3,571 | (166,760) |
Comprehensive income(loss) | (836,115) | (118,184) | (1,645,414) | (258,566) |
Less: Other comprehensive (gain) loss attributable to non-controlling interest | 814 | 13,104 | (535) | 25,014 |
Other comprehensive income (loss) attributable to Verde Resources, Inc. | $ (4,609) | $ (74,256) | $ 3,036 | $ (141,746) |
Basic and Diluted Profit (Loss) per Common Share | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Common Shares Outstanding | 810,742,109 | 116,038,909 | 810,742,109 | 116,038,909 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net profit (loss) | $ (1,665,920) | $ (98,792) |
Adjustments to reconcile loss to net cash used in operation | ||
Amortization | 15,585 | 6,165 |
Depreciation | 5,220 | 86 |
Interest expenses | 954,934 | 0 |
Stock-based compensation | 191,222 | 0 |
(Increase) decrease in: | ||
Other receivables | 26,169 | 0 |
Other deposits and prepayment | (111,102) | 0 |
Increase (decrease) in: | ||
Accounts payable | (723) | (956) |
Accrued liabilities and other payables | 28,433 | (7,783) |
Advanced from sub-contractor & related parties | 12,623 | 47,251 |
Net cash used in operating activities | (543,559) | (54,029) |
Cash flows from investing activities: | ||
Advanced to related party | (118,848) | 0 |
Payments of deposit paid for property, plant and equipment | (240,000) | 0 |
Purchase of property, plant and equipment | (31,988) | 0 |
Net cash used in investing activities | (390,836) | 0 |
Cash flows from financing activities: | ||
Repayments to hire purchase creditor | (2,610) | 0 |
Net cash used in financing activities | (2,610) | 0 |
Net increase (decrease) in cash and cash equivalent | (937,005) | (54,029) |
Effect of exchange rate changes on cash | (3,888) | 63,244 |
Net increase (decrease) in cash and cash equivalents | (940,893) | 9,215 |
Cash and cash equivalents at beginning of year | 2,117,622 | 24,027 |
Cash and cash equivalents at end of year/ period | 1,176,729 | 33,242 |
Supplementary cash flow information | ||
Income taxes paid | 0 | 0 |
Interest paid | 0 | 0 |
Supplementary non-cash information | ||
Deposit paid for acquisition of property, plant and equipment (note 7) | 930,000 | 0 |
Purchase of property, plant and equipment under finance lease | (62,643) | |
Increase in finance lease liabilities | $ 60,033 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss | Noncontrolling Interest |
Balance, shares at Jun. 30, 2020 | 116,038,909 | |||||
Balance, amount at Jun. 30, 2020 | $ (2,293,018) | $ 116,039 | $ 2,427,243 | $ (5,138,406) | $ 713,845 | $ (411,739) |
Net loss for the period | (98,792) | 0 | 0 | (91,806) | 0 | (6,986) |
Foreign currency translation gain | (166,760) | $ 0 | 0 | 0 | (141,746) | (25,014) |
Shares issued for share-based compensation | 0 | |||||
Balance, shares at Dec. 31, 2020 | 116,038,909 | |||||
Balance, amount at Dec. 31, 2020 | (2,558,570) | $ 116,039 | 2,427,243 | (5,230,212) | 572,099 | (443,739) |
Balance, shares at Jun. 30, 2020 | 116,038,909 | |||||
Balance, amount at Jun. 30, 2020 | (2,293,018) | $ 116,039 | 2,427,243 | (5,138,406) | 713,845 | (411,739) |
Shares issued for share-based compensation | 140,715 | |||||
Balance, shares at Jun. 30, 2021 | 779,742,109 | |||||
Balance, amount at Jun. 30, 2021 | 15,769,925 | $ 779,742 | 20,699,067 | (5,913,255) | 646,205 | (441,834) |
Balance, shares at Sep. 30, 2020 | 116,038,909 | |||||
Balance, amount at Sep. 30, 2020 | (2,436,698) | $ 116,039 | 2,427,243 | (5,199,388) | 646,355 | (426,947) |
Net loss for the period | (34,512) | (30,824) | (3,688) | |||
Foreign currency translation gain | (87,360) | (74,256) | (13,104) | |||
Shares issued for share-based compensation | 0 | |||||
Balance, shares at Dec. 31, 2020 | 116,038,909 | |||||
Balance, amount at Dec. 31, 2020 | (2,558,570) | $ 116,039 | 2,427,243 | (5,230,212) | 572,099 | (443,739) |
Balance, shares at Jun. 30, 2021 | 779,742,109 | |||||
Balance, amount at Jun. 30, 2021 | 15,769,925 | $ 779,742 | 20,699,067 | (5,913,255) | 646,205 | (441,834) |
Net loss for the period | (1,665,920) | 0 | 0 | (1,648,985) | 0 | (16,935) |
Foreign currency translation gain | 3,571 | $ 0 | 0 | 0 | 3,036 | 535 |
Shares issued for acquisition, shares | 31,000,000 | |||||
Shares issued for acquisition, amount | 930,000 | $ 31,000 | 899,000 | 0 | 0 | 0 |
Stock-based compensation | 191,222 | $ 0 | 191,222 | 0 | 0 | 0 |
Shares issued for share-based compensation | 191,222 | |||||
Balance, shares at Dec. 31, 2021 | 810,742,109 | |||||
Balance, amount at Dec. 31, 2021 | 15,228,798 | $ 810,742 | 21,789,289 | (7,562,240) | 649,241 | (458,234) |
Balance, shares at Sep. 30, 2021 | 810,742,109 | |||||
Balance, amount at Sep. 30, 2021 | 15,982,375 | $ 810,742 | 21,694,195 | (6,731,548) | 653,850 | (444,864) |
Net loss for the period | (843,248) | (830,692) | (12,556) | |||
Foreign currency translation gain | (5,423) | (4,609) | (814) | |||
Shares issued for share-based compensation | 95,094 | 95,094 | ||||
Balance, shares at Dec. 31, 2021 | 810,742,109 | |||||
Balance, amount at Dec. 31, 2021 | $ 15,228,798 | $ 810,742 | $ 21,789,289 | $ (7,562,240) | $ 649,241 | $ (458,234) |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Verde Resources, Inc. (the “Company” or “VRDR”) was incorporated on April 22, 2010, in the State of Nevada, U.S.A. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company’s fiscal year end is June 30. Gold Billion Global Limited (“Gold Billion” or “GBL”) was incorporated in British Virgin Islands on February 7, 2013. GBL was setup by the Board of Directors of Federal Mining Resources Limited (“FMR”). The major operation of GBL is to manage and monitor the mineral exploration and mining projects of FMR. On July 1, 2013, FMR has assigned its rights and obligation on Champmark Sdn Bhd (“CSB”) to GBL. Four of the five members of CSB Board of Directors were appointed by FMR, with two of the GBL Board of Directors currently sitting on the CSB Board. According to ASC 810-05-08 A, CSB is a deemed subsidiary of GBL where it has controlled the CSB Board of Directors, has assigned rights to receive future benefits and residual value, and obligation to absorb loss and finance for CSB by GBL. GBL has the power to direct the activities of CSB that most significantly impact CSB’s economic performance and the obligation to absorb losses of CSB that could potentially be significant to the CSB or the right to receive benefits from CSB that could potentially be significant to CSB. GBL is the primary beneficiary of CSB because it has been assigned with all relevant rights and obligation and can direct the activities of CSB through the common directors and the 85% shareholder, FMR. Under 810-23-42, 43, it is determined that CSB is de-facto agent of GBL and GBL is the de-facto principal of CSB. GBL started to consolidate CSB from July 1, 2013 and the Company consolidated GBL and CSB from October 25, 2013 onwards. On February 17, 2014, the Company entered into a Supplementary Agreement to the Assignment Agreement and completed an acquisition of GBL pursuant to the Supplementary Agreement. The acquisition was a reverse acquisition in accordance with ASC 805-40 “Reverse Acquisitions”. The legal parent was VRDR which was the accounting acquiree while GBL was the accounting acquirer. There was a 15% non-controlling interest of Champmark SDN BHD (“CSB”) after the acquisition. This transaction was accounted for as a recapitalization effected by a share exchange, wherein GBL with its 85% deemed subsidiary CSB was considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of the acquired entity have been brought forward at their book value and no goodwill has been recognized. As a result of the acquisition, the Company holds 100% equity interest in GBL and 85% variable interest in CSB. Our consolidated subsidiaries include GBL being our wholly-owned subsidiary and 85% of CSB being a variable interest entity (VIE) and deemed subsidiary of GBL. On March 17, 2014, the Company through GBL and its deemed subsidiary CSB entered into a Sub-Contract Agreement with Borneo Oil & Gas Corporation Sdn Bhd (“BOG”) for the engagement of its sub-contractor services to carry out exploration and exploitation works on alluvial and lode gold resources at Site IV-1 of the Merapoh Mine. The Sub-Contract Agreement is for a period of 5 years with a renewal for another 5 years subject to review by both parties. BOG is a wholly-owned subsidiary of Borneo Oil Berhad (BOB) which is listed on the main market of Kuala Lumpur Stock Exchange. BOG being a local company in Malaysia provides the Company with the advantage of local knowledge and well-established connection in dealing with the relevant local authorities in our mining operations. On April 1, 2014, GBL purchased 85% equity interest of CSB, and CSB became indirect subsidiary of the Company. Effective February 2, 2018, the Company’s Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. Effective February 20, 2021, Mr. Chen Ching was appointed Director of the Company and the entire Board of Directors now consists of Mr. Balakrishnan B S Muthu and Mr. Chen Ching. The SC 14F1 and Form 8-K announcing the change in officers and directors were filed with SEC on February 10, 2021 and February 22, 2021 respectively. Effective March 31, 2021, Mr. Carl M. Craven was appointed Director of the Company and the entire Board of Directors now consists of Mr. Balakrishnan B S Muthu, Mr. Chen Ching and Mr. Carl M. Craven. The Form 8-K announcing the change in officers and directors were filed with SEC on April 1, 2021. On May 10, 2021, the Company announced the Sale and Purchase Agreement to acquire the assets of biofraction plant and the right to use intellectual propertylicense in Sabah, Malaysia from Borneo Energy SdnBhd, in consideration of issuance of 166,666,667 share of the Company’s stock at $0.03 per share, valued at $5,000,000. 135,666,667 shares and 31,000,000 shares were issued on May 10, 2021 and July 1, 2021, respectively. The completion of the S&P Agreement is subject to all such acts necessary, including but not limited to due diligence exercise to ascertain the valuation of the assets of the biofraction plant and the right to use the licensed intellectual property in Sabah, Malaysia. The consideration shall be refundable if the transaction fails to complete. The Company also announced the Share Sale Agreement on May 12, 2021 for the acquisition of the entire issued and paid-up share capital of Bio Resources Limited from Taipan International Limited, an unrelated third party, The Wision Project Limited (formerly known as “Borneo Resources Limited”), an unrelated third party, and other individuals unrelated third parties, in consideration of issuance of 321,500,000 shares of the Company’s restricted common stock at $0.03per share, valued at $9,645,000, and the issuance of promissory notes with two-year term period with a principal amount of $20,355,000. 321,500,000 shares were issued on May 12, 2021 and the promissory notes were issued on May 12, 2021. The face value (principal) amount of $20,355,000 is repayable by May 12, 2023, and bearing zero coupon interest. The promissory note is priced at $16,290,550 considering the current market interest rate. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to auditing and due diligence exercise to ascertain the valuation of Bio Resources Limited. The consideration shall be refundable if the transaction fails to complete. On June 9, 2021, the Company entered into a Settlement of Debt Agreement (the “Debt Settlement Agreement”) with the Company’s creditors Beijing Changxin Wanlin Technology Co., Ltd, Federal Mining Resources Ltd, Federal Capital Investment Limited and Yorkshire Capital Limited (collectively the “Creditors”) to convert a total of USD1,945,096 of the Company’s accounts payable to the Creditors into equity by increasing the share capital by means of a subscription for 64,836,533 new restricted shares of the Company’s common stock at a subscription price of $0.03 per share. As set out in the Debt Settlement Agreements, the new restricted shares for settlement of the account payable to Beijing Changxin Wanlin Technology Co., Ltd, Federal Mining Resources Ltd and Federal Capital Investment Limited issued to their nominee Internet.com Ltd on June 9, 2021. On June 11, 2021, GBL entered into a Sale and Purchase of Assets Agreement (the “SPA Agreement”) to purchase a factory site from a Malaysia company Segama Ventures SdnBhd (“Segaman Ventures”), an unrelated third party, in order to expand the Company’s biofraction plant in Malaysia. Under the terms of the SPA Agreement, the acquisition is satisfied by cash payment of $1,600,000 in two instalments of $800,000 each, one payment upon signing the SPA Agreement, and the second payment within three (3) months from the date of the SPA Agreement. A deposit of $800,000 was paid to Segaman Ventures on June 10, 2021. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to due diligence exercise to ascertain the valuation of factory site. The consideration shall be refundable if the transaction fails to complete. On June 17, 2021, the Company through its prospective indirect subsidiary Bio Resources Limited (“BRL”), a company incorporated under the laws of the Labuan, entered into a Shares Sale Agreement with HermalisBintiMohmad Tahir (“Hermalis”), a company incorporated under the laws of the Malaysia, to acquire the entire issued and paid-up share capital of Global Renewables. Under the terms of the Shares Sale Agreement, the consideration for the acquisition shall be satisfied in full by the payment of Malaysia Ringgit MYR 25,000 upon the execution of the Shares Sale Agreement. The acquisition of Global Renewables was subject to the successful completion of the acquisition of the entire issued and paid-up share capital of BRL. Therefore, the acquisition of Global Renewables will dependent upon the successful acquisition of BRL. On June 18, 2021, GBL entered into a Shares Sale Agreement with Lamax Gold Limited (“LGL”), a company incorporated under the laws of the British Virgin Islands, in relation to acquisition of the remaining 15% of the issued and paid-up share capital of CSB. Prior to this acquisition, GBL owned 85% equity in CSB. Upon completion of the acquisition, GBL would own the entire issued and paid-up share capital of CSB. Under the terms of the Shares Sale Agreement, the consideration for the acquisition shall be satisfied in full by the payment of Malaysia Ringgit MYR 150,000 ($36,130) upon the execution of the Shares Sale Agreement. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to auditing and due diligence exercise to ascertain the valuation of 15% of the issued and paid-up share capital of CSB. A deposit of MYR 150,000 ($36,130) was paid to LGL on June 21, 2021. The consideration shall be refundable if the transaction fails to complete. Verde Renewables, Inc. (“VRI”) was incorporated on August 10, 2021, in the State of Missouri, U.S.A. The major operation of VRI will include management of a processing and packaging facility to process organic bio-waste into sources of renewable commodities using its biofraction technology, and distribution of biochar, wood vinegar and bio-gas. VRI is wholly owned by the Company. Verde Estates LLC (“VEL”) was incorporated on August 10, 2021, in the State of Missouri, U.S.A. VEL is formed for the purpose of holding property in Missouri. VEL is wholly owned by VRI. Verde Life Inc. (“VLI”) was incorporated on November 15, 2021, in the State of Oregon, U.S.A. The major operation of VLI will include conducting business in the distribution of THC-free cannabinoid (CBD) products. VLI is wholly owned by the Company. On January 17, 2022, the Company formed a wholly owned subsidiary, Verde Resources (Malaysia) Sdn Bhd, a company incorporated under the laws of the Malaysia, for the purpose of conducting consultation services and distribution of renewable agricultural commodities. On January 20, 2022, the Company has reached a mutual agreement to enter into a Supplement to Promissory Note with each of the 17 lenders (“Lenders”) of the promissory notes that were issued on May 12, 2021, to convert the total principal loan amount of $20,355,000 into shares of the Company’s restricted common stock priced at $0.0611 per share, which represents the last ninety (90) days’ volume weighted average price (VWAP) as of the market closing of January 19, 2022. The Company and the Lenders further agreed that the actual date for the allotment and issue of new shares of the Company’s restricted common stock shall be confirmed in a subsequent written agreement. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Condensed Consolidated Financial Statements Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The results of operations for the periods ended December 31, 2021 are not necessarily indicative of the operating results for the full years. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). These condensed consolidated financial statements are expressed in United States dollars ($). Financial statements prepared in accordance with GAAP contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. These condensed consolidated audited financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading. Basis of Consolidation The condensed consolidated financial statements include the financial statements of Verde Resources, Inc., its wholly owned subsidiary Gold Billion Global Limited (“GBL”) and the 85% of the deemed subsidiary variable interest of Champmark SDN BHD (“CSB”). All inter-company balances and transactions between the Company and its subsidiary and variable interest entity (VIE) have been eliminated upon consolidation. The Company has adopted ASC Topic 810-10-5-8, “Variable Interest Entities”, which requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. Variable Interest Entity On July 1, 2013, the Company’s subsidiary, GBL entered into a series of agreements (“VIE agreements”) with FMR and details of the VIE agreements are as follows : 1. Management Agreement, FMR entrusted the management rights of its subsidiary CSB to GBL that include: i) management and administrative rights over the day-to-day business affairs of CSB and the mining operation at Site IV-1 of the Merapoh Gold Mine; ii) final right for the appointment of members to the Board of Directors and the management team of CSB; iii) act as principal of CSB; iv) obligation to provide financial support to CSB; v) option to purchase an equity interest in CSB; vi) entitlement to future benefits and residual value of CSB; vii) right to impose no dividend policy; viii) human resources management. 2. Debt Assignment, FMR assigned to GBL the sum of money in the amount of US Dollars One Hundred Nine Thousand Eight Hundred One And Cents Seventy-Two Only (US$ 109,801.72), now due to GBL from CSB under the financing obligation from the FMR to CSB. With the above agreements, GBL demonstrates its ability to control CSB as the primary beneficiary and the operating results of the VIE was included in the condensed consolidated financial statements. On April 1, 2014, the Board of Director of GBL notified FMR upon the decision to exercise the right of option to purchase 85% equity interest of CSB under Management Agreement Section 3.2.4 dated July 1, 2013 between GBL and FMR. This acquisition was completed on April 1, 2014 with consideration of US$1. GBL then became 85% shareholder of CSB and is required to consolidate CSB as a subsidiary. On June 18, 2021, GBL entered into a Shares Sale Agreement to acquire the remaining 15% of the issued and paid-up share capital of CSB. GBL would own the entire issued and paid-up share capital of CSB upon completion of the acquisition. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its unaudited condensed consolidated financial statements. Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $1,176,729 and $2,117,622 in cash and cash equivalents at December 31, 2021 and June 30, 2021, respectively. Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. Risks and Uncertainties The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure. Property, plant and equipment Property, plant and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets with a 5% estimated residual values, as follows: Useful Lives Long Term Assets 3-6 years Machinery 5 years Furniture, fixture and electronic equipment 3 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Accounts Receivable Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At December 31, 2021 and June 30, 2021, the Company has no allowance for doubtful accounts, as per management’s judgment based on their best knowledge. As of December 31, 2021 and June 30, 2021, the longest credit term for certain customers are 60 days. Provision for Doubtful Accounts The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables and reviews accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, the Company makes judgments about the creditworthiness of customers based on past collection experience and ongoing credit risk evaluations. As of December 31, 2021 and June 30, 2021 there was no allowance for doubtful accounts. Fair Value ASC Topic 820 ”Fair Value Measurement and Disclosures” These tiers include: ● Level 1—defined as observable inputs such as quoted prices in active markets; ● Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments consist of cash and cash equivalents, trade receivables, other receivables, payables, and short term and long term debt. The carrying values of cash and cash equivalents, trade receivables, other receivables, and payables approximate their fair value due to their short maturities. The carrying value of long term debt approximates the fair value of debt of similar terms and remaining maturities available to the company. The Company’s non-financial assets are measured on a recurring basis. These non-financial assets are measured for impairment annually on the Company’s measurement date at the reporting unit level using Level 3 inputs. For most assets, ASC 820 requires that the impact of changes resulting from its application be applied prospectively in the year in which the statement is initially applied. The Company’s non-financial assets measured on a non-recurring basis include the Company’s property, plant and equipment and finite-use intangible assets which are measured for recoverability when indicators for impairment are present. ASC 820 requires companies to disclose assets and liabilities measured on a non-recurring basis in the period in which the re-measurement at fair value is performed. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2021 and June 30, 2021. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current in the consolidated balance sheets at December 31, 2021 and June 30, 2021. Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, we as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to us, while the leased asset is depreciated in accordance with our depreciation policy if the title is to eventually transfer to us. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC 842. Foreign Currency Translation The Company’s reporting currency is the United States dollar (“$”) and the accompanying consolidated financial statements have been expressed in United States dollars. The Company’s functional currency is the Malaysian Ringgit (“MYR”) which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In accordance with ASC Topic 830 ”Translation of Financial Statements” Translation of amounts from RM into U.S. dollars has been made at the following exchange rates: Balance sheet items, except for equity accounts June 30, 2021 RM 4.1511 to 1 September 30, 2021 RM 4.1876 to 1 December 31, 2021 RM 4.1667 to 1 Statement of operations and cash flow items For the six months ended December 31, 2020 RM 4.1339 to 1 For the six months ended December 31, 2021 RM 4.1789 to 1 Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718-10 “Compensation-Stock Compensation” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units, and stock appreciation rights are based on estimated fair values. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. The Company accounts for non-employee stock-based awards at fair value in accordance with the measurement and recognition criteria of ASC 505-50 “Equity-Based Payments to Non-Employees. Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes. Related Party Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. Non-controlling Interest The Company’s non-controlling interest represents the minority shareholder’s ownership interest related to the Company’s subsidiary, CSB. The Company reports its non-controlling interest in subsidiaries as a separate component of equity in the Consolidated Balance Sheets and reports both net loss attributable to the non-controlling interest and net loss attributable to the Company’s common shareholders on the face of the Consolidated Statements of Operations. The Company’s equity interest in CSB is 85.0% and the non-controlling stockholder’s interest is 15%. This is reflected in the Consolidated Statements of Equity. Mineral Acquisition and Exploration Costs The Company has been primarily engaged in the acquisition, exploration, and development of mining properties. The Company was no longer considered an exploration stage company after the reverse take-over with its subsidiary GBL. Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves. Environmental Expenditures The operations of the Company have been, and may in the future be affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. Revenue Recognition The Company recognizes revenues when its customers obtain control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identifies contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenues when (or as) it satisfies the performance obligation. Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Gold mining The Company derives revenues primarily from the sales of gold mineral or other minerals to registered gold trading companies or other customers in Malaysia. The Company generally recognizes its revenues in accordance with the following core principles: at the time of gold or minerals sales, the contract with customers and the performance obligations are identified. The transaction and selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia or at an agreed price. Sales invoice will be prepared to reflect the proper transaction price based on the performance obligation allocation. After delivery is completed and the performance obligation is satisfied, sales invoice will be presented to the customers and so revenue is then recognized accordingly. Product sales Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. Income Taxes The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, ”Accounting for Income Taxes” ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. As of December 31, 2021 and June 30, 2021, the Company did not have any significant unrecognized uncertain tax positions. Recent Accounting Pronouncements Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions and enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. ASU 2019-12 was effective July 1, 2021. The adoption of ASU 2019-12 did not have any impact on the Company’s consolidated financial statement presentation or 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 (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. Upon adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. For contracts in an entity’s own equity, the type of contracts primarily affected by ASU 2020-06 are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and only if adopted as of the beginning of such fiscal year. The Company adopted ASU 2020-06 effective July 1, 2021. The adoption of ASU 2020-06 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. Recently Issued But Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its consolidated financial statement presentations and disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 of the two-step goodwill impairment test, under which a goodwill impairment loss was measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss is measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). Adoption of the ASUs is on a modified retrospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its consolidated financial statement presentation or disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation —Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statement presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
CASH AND CASH EQUIVALENT
CASH AND CASH EQUIVALENT | 6 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENT | |
CASH AND CASH EQUIVALENT | NOTE 3 - CASH AND CASH EQUIVALENT The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. At December 31, 2021 and June 30, 2021 cash and cash equivalents consisted of bank deposits in Malaysia bank and petty cash on hands. |
OTHER RECEIVABLE AND ADVANCED T
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES | 6 Months Ended |
Dec. 31, 2021 | |
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES | |
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES | NOTE 4 –OTHER RECEIVABLE, AND ADVANCED TO RELATED PARTIES – Other receivables Other receivables at December 31, 2021 and June 30, 2021 consist of the following items: December 31 June 30 2021 2021 Other receivable (#1) $ - $ 26,338 Less: allowance for doubtful debts - - $ - $ 26,338 (#1) Other receivables were amounts due from Jusra Mining Merapoh Sdn Bhd, whose major shareholder Lamax Gold Limited holds 15% of Champmark Sdn Bhd, for the sale of wash sand recognized as other income by the Company. Advanced to related party Advanced from related party at December 31, 2021 and June 30, 2021 consist of the following items: December 31, 2021 June 30, 2021 Advanced to Global Renewable Sdn Bhd (#1) (note 1) $ 125,408 $ 6,691 $ 125,408 $ 6,691 ______________ (#1) Balakrishnan B.S. Muthu is the common director of Global Renewable Sdn Bhd and the Company. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. |
OPERATING LEASE
OPERATING LEASE | 6 Months Ended |
Dec. 31, 2021 | |
OPERATING LEASE | |
OPERATING LEASE | NOTE 5 - OPERATING LEASE As of December 31, 2021, the Company leases minings space under a non-cancelable operating lease, with terms of two years. Lease expense for lease payment is recognized on a straight-line basis over the lease term. On June 14 2021, a lump sum payment of RM260,500 ($62,260) was made upfront to rent the mining space with lease period for 2 years up to June 13, 2023, and no ongoing payments will be made under the terms of these mining leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related assets and liabilities recorded on the balance sheets. Ended December 31 Balance as at the beginning of period $ 60,131 Addition - Amortization charge for the year (15,585 ) Foreign exchange adjustment (254 ) Balance as of December 31, 2021 $ 44,292 Amortization charge of rights of use lease assets was $15,585 and $nil for the six ended December 31, 2021 and 2020, respectively. Amortization charge of rights of use lease assets was $7,809 and $nil for the three month ended December 31, 2021 and 2020, respectively. Lease term and discount rate December 31, 2021 Weighted-average remaining lease term - years 1.46 |
OTHER DEPOSIT PREPAYMENT
OTHER DEPOSIT PREPAYMENT | 6 Months Ended |
Dec. 31, 2021 | |
OTHER DEPOSIT PREPAYMENT | |
OTHER DEPOSIT PREPAYMENT | NOTE 6 – OTHER DEPOSIT & PREPAYMENT Other deposit & prepayment as of December 31, 2021 and June 30, 2021 consisted of the following: December 31, June 30, 2021 2021 Prepayments to suppliers $ 117,200 $ - Prepaid operating expenses - 6,137 $ 117,200 $ 6,137 |
DEPOSIT PAID FOR ACQUISITION OF
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY PLANT AND EQUIPMENT | 6 Months Ended |
Dec. 31, 2021 | |
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY PLANT AND EQUIPMENT | |
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY PLANT AND EQUIPMENT | NOTE 7 – DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY, PLANT AND EQUIPMENT At December 31, 2021 and June 30, 2021 deposit and prepayment consists of the following: December 31, June 30, 2021 2021 Deposits paid for acquisition of subsidiaries - Bio Resources Limited (#1) $ 25,935,550 $ 25,935,550 - Champmark Sdn Bhd (#2) 36,005 $ 36,130 $ 25,971,555 $ 25,971,680 Deposits paid for acquisition of property, plant and equipment - Intellectual property license (#3) 5,000,000 4,070,000 - Factory site (#4) 800,000 800,000 - Security deposit of property (#5) 240,000 - $ 6,040,000 $ 4,870,000 ___________ (#1) The Company announced the Share Sale Agreement on May 12, 2021 for the acquisition of the entire issued and paid-up share capital of Bio Resources Limited from Taipan International Limited, an unrelated third party, The Wision Project Limited (formerly known as “Borneo Resources Limited”), an related third party, and other individuals unrelated third parties, in consideration of issuance of 321,500,000 shares of the Company’s restricted common stock at $0.03 per share, valued at $9,645,000, and the issuance of promissory notes with two-year term period with a principal amount of $20,355,000. 321,500,000 shares were issued on May 12, 2021 and the promissory notes were issued on May 12, 2021. The face value (principal) amount of $20,355,000 is repayable by May 12, 2023, and bearing zero coupon interest. The promissory note is priced at $16,290,550 considering the current market interest rate. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to auditing and due diligence exercise to ascertain the valuation of Bio Resources Limited. The consideration shall be refundable if the transaction fails to complete. (#2) On June 18, 2021, GBL entered into a Shares Sale Agreement with Lamax Gold Limited (“LGL”), a company incorporated under the laws of the British Virgin Islands, in relation to acquisition of the remaining 15% of the issued and paid-up share capital of CSB. Prior to this acquisition, GBL owned 85% equity in CSB. Upon completion of the acquisition, GBL would own the entire issued and paid-up share capital of CSB. Under the terms of the Shares Sale Agreement, the consideration for the acquisition shall be satisfied in full by the payment of Malaysia Ringgit MYR150,000 ($35,843) upon the execution of the Shares Sale Agreement. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to auditing and due diligence exercise to ascertain the valuation of 15% of the issued and paid-up share capital of CSB. A deposit of MYR 150,000 ($35,843) was paid to LGL on June 21, 2021. The consideration shall be refundable if the transaction fails to complete. (#3) On May 10, 2021, the Company announced the Sale and Purchase Agreement to acquire the assets of biofraction plant and the right to use intellectual property license in Sabah, Malaysia from Borneo Energy Sdn Bhd, in consideration of issuance of 166,666,667 share of the Company’s stock at $0.03 per share, valued at $5,000,000. 135,666,667 shares and 31,000,000 shares were issued on May 10, 2021 and July 1, 2021, respectively. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to due diligence exercise to ascertain the valuation of the assets of the biofraction plant and the right to use the licensed intellectual property in Sabah, Malaysia. The consideration shall be refundable if the transaction fails to complete. (#4) On June 11, 2021, GBL entered into a Sale and Purchase of Assets Agreement (the “SPA Agreement”) to purchase a factory site from a Malaysia company Segama Ventures Sdn Bhd (“Segaman Ventures”), an unrelated third party, in order to expand the Company’s biofraction plant in Malaysia. Under the terms of the SPA Agreement, the acquisition is satisfied by cash payment of $1,600,000 in two instalments of $800,000 each, one payment upon signing the SPA Agreement, and the second payment within three (3) months from the date of the SPA Agreement. A deposit of $800,000 was paid to Segaman Ventures on June 10, 2021. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to due diligence exercise to ascertain the valuation of factory site. The consideration shall be refundable if the transaction fails to complete. (#5) On February 10, 2022, the Company, through VEL, a limited liability company incorporated in the State of Missouri, which is a wholly-owned subsidiary of the Company’s wholly-owned subsidiary, Verde Renewables, Inc., entered into a Commercial Lease Agreement and Option to Purchase (the “Lease Agreement”) to rent a 24-acre property in La Belle from Jon Neal Simmons and Betty Jo Simmon (the “Landlord”) in order to kickstart carbon farming with biochar in Missouri. Under the Lease Agreement, the term of the lease will be for a period of two (2) years and the Company will have the right to renew the lease with a total of three renewal periods with each term being two years. The base rent is ten thousand dollars ($10,000) for the term, payable on the commencement of the Lease Agreement. The Lease Agreement also grants the Company the exclusive right and option to purchase the premises together with all the right title and interest from the Landlord for a consideration of four hundred ninety thousand dollar ($490,000) at any time during the two years period of the lease term. The Company has paid to the Landlord a security deposit of the sum of two hundred forty thousand dollars ($240,000) prior to the execution of the Lease Agreement. If the Company does not exercise the option to renew the lease or the option to purchase the premises from the Landlord, the security deposit shall be returned to the Company. In November 1, 2021, the Company paid $240,000 to Landlord for the security deposit. |
ACCOUNTS PAYABLE AND ADVANCED F
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES | 6 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES | |
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES | NOTE 8 – ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES Accounts Payable Accounts payable at December 31, 2021 and June 30, 2021 consist of the following items: December 31, 2021 June 30, 2021 Other accounts payable $ 1,921 $ 2,655 Advanced from related parties Advanced from related parties at December 31, 2021 and June 30, 2021, consist of the following items: December 31, 2021 June 30, 2021 Advanced from BOG (#1) $ 584,253 $ 579,783 Advanced from Federal Capital Investment Limited (#2) $ 6,000 $ 6,000 Amounts due from directors (#3) $ 100 $ - $ 590,353 $ 585,783 ______________ (#1) Borneo Oil and Gas Corporation SDN (“BOG”) is a wholly owned subsidiary of Borneo Oil Berhad (“BOB”) (holding 20.0% and 23.0% of the Company’s issued and outstanding common stock as of June 30, 2021 and November 10, 2021, respectively). BOG is one of the shareholders of the Company and did not own any shares of the Company since April 28, 2017. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. (#2) One of the directors of Federal Capital Investment Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective on February 20, 2021. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. On June 9, 2021, the Company entered into a Settlement of Debt Agreement (the “Debt Settlement Agreement”) with Federal Capital Investment Limited, to convert a total of USD 142,000 of the Company’s accounts payable to the creditor as of December 31, 2020 into equity by means of a subscription for 4,733,333 new restricted shares of the Company’s common stock at a subscription price of $0.03 per share. (#3) Carl Craven, a director of the Company, advanced $100 to the Company. The advance is related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. |
PROPERTY PLANT AND EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 6 Months Ended |
Dec. 31, 2021 | |
PROPERTY PLANT AND EQUIPMENT | |
PROPERTY PLANT AND EQUIPMENT | NOTE 9 – PROPERTY, PLANT AND EQUIPMENT Property and equipment at December 31, 2021 and June 30, 2021 are summarized as follows: December 31, 2021 June 30, 2021 (Unaudited) Land and Building $ 944,027 $ 947,292 Plant and Machinery 16,343 16,399 Office equipment 21,403 18,968 Project equipment 651,123 653,374 Computer 12,622 11,170 Motor Vehicle 126,230 35,710 Accumulated depreciation (1,681,781 ) (1,682,358 ) $ 89,967 $ 555 The depreciation expenses charged for the six months ended December 31, 2021 and 2020 was $5,220 and $86. The depreciation expenses charged for the three months ended December 31, 2021 and 2020 was $4,134 and $44. Included in property, plant and equipment, a motor vehicle was under finance leases with a carrying amount of $58,467 and nil as of December 31, 2021 and June 30, 2021, respectively. The amount of related depreciation expenses related to assets under finance lease were $4,176 and nil for the six months ended of December 31, 2021 and 2020, respectively. The amount of related depreciation expenses related to assets under finance leases were $3,132 and nil for the three months ended of December 31, 2021 and 2020, respectively. |
FINANCE LEASE LIABILITIES
FINANCE LEASE LIABILITIES | 6 Months Ended |
Dec. 31, 2021 | |
FINANCE LEASE LIABILITIES | |
FINANCE LEASE LIABILITIES | NOTE 10 – FINANCE LEASE LIABILITIES The loans from a hire purchase creditor include long term and short term and are summarized as follow: December 31, 2021 June 30, 2021 Current finance lease liabilities $ 10,440 $ - Non-current finance lease liabilities 49,593 - Total $ 60,033 $ - A hire purchase installment loan with total amount $60,033 and nil as at December 31, 2021 and June 30, 2021 are $60,033 and nil net of interest charges equivalent to interest nil and nil are summarized as follows: Interest Rate Monthly Due December 31, 2021 June 30, 2021 Finance lease liabilities in the hire purchase loan 0 % 870 60,033 - Finance lease liabilities to a hire purchase creditor $ 60,033 $ - The scheduled maturities of the finance lease liabilities installment loans are as follows: December 31, 2022 10,440 2023 10,441 2024 10,440 2025 10,441 Thereafter 18,271 Total minimum finance lease liabilities installment payment $ 60,033 Less: Imputed interest - Present value of net minimum lease payments (#) $ 60,033 (#) Minimum payment reflected in the balance sheet as current and noncurrent obligations under finance lease liabilities as at December 31, 2021. |
PROMISSORY NOTES
PROMISSORY NOTES | 6 Months Ended |
Dec. 31, 2021 | |
PROMISSORY NOTES | |
PROMISSORY NOTES | NOTE 11 - PROMISSORY NOTES On May 10, 2021, the Company announced the Share Sale Agreement on May 12, 2021 for the acquisition of the entire issued and paid-up share capital of Bio Resources Limited from Taipan International Limited, an unrelated third party, The Wision Project Limited (formerly known as “Borneo Resources Limited”), an un-related third party, and other individuals unrelated third parties, in consideration of issuance of 321,500,000 shares of the Company’s restricted common stock at $0.03 per share, valued at $9,645,000, and the issuance of promissory notes with two-year term period with a principal amount of $20,355,000. 321,500,000 shares were issued on May 12, 2021 and the promissory notes were issued on May 12, 2021. The face value (principal) amount of $20,355,000 is repayable by May 12, 2023, and bearing zero coupon interest. The fair value of the outstanding promissory notes was calculated with the following assumptions: Risk free rate 0.268 % Credit spread 6.513 % Liquidity risk premium 5.000 % The following is a reconciliation of the beginning and ending balances of promissory notes payable using Level 3 inputs: December 31 June 30 2021 2021 Balance at the beginning of period $ 16,535,942 $ - Promissory notes issued to unrelated third parties at fair value - 16,290,550 Interest expense 954,934 245,392 Balance at the end of period $ 17,490,876 $ 16,535,942 The Company recorded $954,934 and $nil interest expense for the six months ended December 31, 2021 and 2020, respectively. The Company recorded $484,168 and $nil interest expenses for the three months ended December 31, 2021 and 2020, respectively. |
INCOME TAX
INCOME TAX | 6 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
INCOME TAX | NOTE 12 – INCOME TAX The Company and its subsidiaries are subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate. The Company is a Nevada incorporated company and subject to United State Federal Income Tax. The Tax Cuts and Jobs Act of (“TCJ Act”) was signed into law in December 2017, and among its many provisions, it imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate to 21%, effective January 1, 2018. No provision for income taxes in the United States has been made as the Company had no taxable income for the periods ended December 31, 2021 and 2020. GBL is a British Virgin Islands incorporated company and not required to pay income tax on corporate income. CSB is a Malaysia incorporated company and required to pay corporate income tax at 25% of taxable income. VRI and VEL are a the State of Missouri, U.S.A incorporated company and required to pay United State Federal Income Tax at 21% of taxable income. VLI is a the State of Oregon, U.S.A incorporated company and required to pay United State Federal Income Tax at 21% of taxable income. A reconciliation between the income tax computed at the relevant statutory rate and the Company’s provision for income tax is as follows: Three months period ended December 31, 2021 December 31, 2020 Loss before income taxes 21 21 Non-deductible items/non-taxable income (14 ) 6 Tax effect of tax exempt entity 1 (12 ) Share based payments (2 ) - Changes in valuation allowances (5 ) (17 ) Effect of different tax rate of subsidiaries operating in other jurisdictions (1 ) 2 Effective tax rate - - Six months period ended December 31, 2021 December 31, 2020 Loss before income taxes 21 21 Non-deductible items/non-taxable income (14 ) (5 ) Tax effect of tax exempt entity (2 ) (6 ) Share based payments (2 ) - Changes in valuation allowances (3 ) (11 ) Effect of different tax rate of subsidiaries operating in other jurisdictions (- ) 1 Effective tax rate - - Summary of the Company’s net deferred tax liabilities and assets are as follows: December 31, 2021 June 30, 2021 Deferred tax assets: Tax attribute carryforwards $ 1,247,591 $ 1,198,944 Valuation allowances (1,247,591 ) (1,198,944 ) Total $ - $ - The Company has recorded valuation allowances for certain tax attribute carry forwards and other deferred tax assets due to uncertainty that exists regarding future realizability. If in the future the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be recognized in the consolidated statement of operations. The Company did not have any interest and penalty provided or recognized in the income statements for period December 31, 2021 and June 30, 2021 or balance sheet as of December 31, 2021 and June 30, 2021. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 – COMMITMENTS AND CONTINGENCIES As of December 31, 2021, the Group had the following contracted capital commitments: December 31, 2021 June 30, 2021 For purchase of property, plant and equipment $ 800,000 $ 1,730,000 For acquisition of subsidiary 6,001 6,023 Total $ 806,001 $ 1,736,023 |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | |
LOSS PER SHARE | NOTE 14 – LOSS PER SHARE The Company has adopted ASC Topic No. 260, “Earnings Per Share,” The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended December 31, 2021 2020 (Unaudited) (Unaudited) Net income(loss) applicable to common shares $ (843,248 ) $ (34,512 ) Weighted average common shares outstanding (Basic) 810,742,109 116,038,909 Options - - Warrants - - Weighted average common shares outstanding (Diluted) 810,742,109 116,038,909 Net income(loss) per share (Basic and Diluted) $ (0.00 )* $ (0.00 )* Six Months Ended December 31, 2021 2020 (Unaudited) (Unaudited) Net income(loss) applicable to common shares $ (1,665,920 ) $ (98,792 ) Weighted average common shares outstanding (Basic) 810,742,109 116,038,909 Options - - Warrants - - Weighted average common shares outstanding (Diluted) 810,742,109 116,038,909 Net income(loss) per share (Basic and Diluted) $ (0.00 )* $ (0.00 )* *Less than $0.01 per share The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Dec. 31, 2021 | |
CAPITAL STOCK | |
CAPITAL STOCK | NOTE 15 - CAPITAL STOCK Authorized Stock The Company has authorized 10,000,000,000 common shares and 50,000,000 preferred shares, both with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought. Effective February 2, 2018, the Company’s Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on February 6, 2018. Share Issuance On May 10, 2021, the Company announced the Sale and Purchase Agreement to acquire the assets of biofraction plant and the right to use intellectual property license in Sabah, Malaysia from Borneo Energy Sdn Bhd, in consideration of issuance of 166,666,667 share of the Company’s stock at $0.03 per share, valued at $5,000,000. 135,666,667 shares and 31,000,000 shares were issued on May 10, 2021 and July 1, 2021, respectively. The completion of the S&P Agreement is subject to all such acts necessary, including but not limited to due diligence exercise to ascertain the valuation of the assets of the biofraction plant and the right to use the licensed intellectual property in Sabah, Malaysia. On May 12, 2021, the Company, through its wholly-owned subsidiary GBL, entered into a Share Sale Agreement in relation to acquisition of the entire issued and paid-up share capital of Bio Resources Limited with Taipan International Limited, an unrelated third party, The Wision Project Limited (formerly known as “Borneo Resources Limited”), an unrelated third party and other individuals unrelated third parties, in consideration of issuance of 321,500,000 shares of the Company’s restricted common stock at $0.03 per share, valued at $9,645,000, and the issuance of promissory notes two-year term period a principal amount of $20,355,000. 321,500,000 shares were issued on May 12, 2021 and the promissory notes were issued on May 12, 2021. The face value (principal) amount of $20,355,000 is repayable by May 12, 2023, and bearing zero coupon interest. The promissory note is priced at $16,290,550 considering the current market interest rate. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to auditing and due diligence exercise to ascertain the valuation of Bio Resources Limited. On June 4, 2021, the Company issued a total of 65,900,000 restricted common shares for US$1,647,500 at US$0.025 per share to six non-US shareholders, who Borneo Oil Berhad and Victor Subbrayan Paul are existing shareholders On June 9, 2021, the Company entered into a Settlement of Debt Agreement (the “Debt Settlement Agreement”) with the Company’s creditors Beijing Changxin Wanlin Technology Co., Ltd, Federal Mining Resources Ltd, Federal Capital Investment Limited and Yorkshire Capital Limited (collectively the “Creditors”) to convert a total of USD 1,945,096 of the Company’s accounts payable to the Creditors into equity by increasing the share capital by means of a subscription for 64,836,533 new restricted shares of the Company’s common stock at a subscription price of $0.03 per share. As set out in the Debt Settlement Agreements, the new restricted shares for settlement of the account payable to Beijing Changxin Wanlin Technology Co., Ltd, Federal Mining Resources Ltd and Federal Capital Investment Limited issued to their nominee Internet.com Ltd on June 9, 2021. On June 10, 2021, the Company issued a total of 4,690,500 restricted common shares at US$0.03 per share to each of the two directors, of which 2,095,233 restricted common shares to Balakrishnan B S Muthu and 2,595,267 restricted common shares to Chen Ching to serve as a director of the Company for a one-year term (from July 1, 2020 to June 30, 2021). An aggregate of $140,715 for this transaction was recognized as stock-based compensation under selling, general and administrative expenses for the year ended June 30, 2021. On June 10, 2021, the Company issued a total of 13,009,500 restricted common shares at US$0.03 per share to five consultants under the Consultant Agreements, of which 3,695,233 restricted common shares to Vincent Yong Tuck Seng, 3,695,233 restricted common shares to Lai Kui Shing Andy, 2,095,233 restricted common shares to Chan Hoi Kwong Paul, 2,095,233 restricted common shares to Sylvia Chan and 1,428,568 restricted common shares to Ng Tung to serve as a consultant of the Company for a one-year term (from June 10, 2021 to June 9, 2022). An aggregate of $390,285 for this transaction, $34,716 was recognized as stock-based compensation according the service period under selling, general and administrative expenses for the year ended June 30, 2021. Of the aggregate $390,285 for this transaction, $191,222 and nil were recognized for the six months ended December 31, 2021 and 2020, respectively. Also, $95,094 and nil were recognized for the three months ended December 31, 2021 and 2020, respectively. On June 18, 2021, the Company issued a total of 58,100,000 restricted common shares for US$1,452,500 at US$0.025 per share to twenty-four non-US shareholders. There were 810,742,109 and 779,742,109 common shares issued and outstanding at December 31, 2021 and June 30, 2021 respectively. There are no preferred shares outstanding. The Company has issued no authorized preferred shares. The Company has no stock option plan, warrants, or other dilutive securities. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 16 - RELATED PARTY TRANSACTIONS Related party transaction Six months ended December 31, 2021 2020 Other income - Sales of wash sand to: Jusra Mining Merapoh Sdn Bhd (#1) $ 12,115 $ - Professional services provided by: Federal Capital Investment Limited (#2) 12,000 - Related party transaction Three months ended December 31, 2021 2020 Other income - Sales of wash sand to: Jusra Mining Merapoh Sdn Bhd (#1) $ 25 $ - Professional services provided by: Federal Capital Investment Limited (#2) 6,000 - Related party balances December 31, 2021 2020 Deposits paid for acquisition of property, plant and equipment - Intellectual property license of Borneo Energy Sdn Bhd (#3) (note 7) $ 5,000,000 $ - (#1) Lamax Gold Limited (“LGL”) holding 15% equity interests of GBL was the major shareholder of Jusra Minging Merapoh Sdn Bhd , . (#2) One of the directors of Federal Capital Investment Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2021. (#3) Borneo Oil Berhad (“BOB”) is ultimate holding company of Borneo Energy Sdn Bhd and holding 23.0% and 23.0% of the Company’s issued and outstanding common stock as of December 31, 2021 and February 14, 2022, respectively. |
GOING CONCERN AND LIQUIDITY CON
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | 6 Months Ended |
Dec. 31, 2021 | |
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | |
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | NOTE 17 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS The accompanying condescend consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of December 31, 2021, the Company had suffered recurring net losses and records an accumulated deficit of $7,562,240. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company intends to fund operations through debt and equity financing arrangements. The ability of the Company to survive is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings, and related party loans. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing. In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to spread around the world. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the Malaysia’s and global economy. While it is difficult to estimate the financial impact of COVID-19 on the Company’s operations, management believes that COVID-19 could have a material impact on its financial results at this time. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 18 – SEGMENT INFORMATION The Company’s segments are business units that offer different products and services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Company’s Chief Executive Officer. For the three months ended December 31, 2021: Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ - $ - $ - $ - Cost of revenue - - - - - - Gross profit - - - - - - Selling, general & administrative expenses (66,093 ) (1,755 ) (17,640 ) (92,254 ) (181,363 ) (359,105 ) Loss from operations (66,093 ) (1,755 ) (17,640 ) (92,254 ) (181,363 ) (359,105 ) Interest expenses - - - - (484,168 ) (484,168 ) Other income 25 - - - - 25 Loss before income tax (66,068 ) (1,755 ) (17,640 ) (92,254 ) (665,531 ) (843,248 ) Income tax - - - - - - Net loss $ (66,068 ) $ (1,755 ) $ (17,640 ) $ (92,254 ) $ (665,531 ) $ (843,248 ) For the six months ended December 31, 2021: Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ - $ - $ - $ - Cost of revenue - - - - - - Gross profit - - - - - - Selling, general & administrative expenses (107,376 ) (1,755 ) (17,640 ) (102,742 ) (493,588 ) (723,101 ) Loss from operations (107,376 ) (1,755 ) (17,640 ) (102,742 ) (493,588 ) (723,101 ) Interest expenses - - - - (954,934 ) (954,934 ) Other income 12,115 - - - - 12,115 Loss before income tax (95,261 ) (1,755 ) (17,640 ) (102,742 ) (1,448,522 ) (1,665,920 ) Income tax - - - - - Net loss $ (95,261 ) $ (1,755 ) $ (17,640 ) $ (102,742 ) $ (1,448,522 ) $ (1,665,920 ) Total assets: As of December 31, 2021 66,732 150,975 - 465,267 32,882,177 33,565,151 As of June 30, 2021 $ 97,952 - $ - $ - 32,961,202 33,059,154 The Company conducts its Gold Mineral Mining operation through CSB. The expenses incurred were consisting principally of management services and its major operation is located in Malaysia. The Company conducts business in the distribution of THC-free cannabinoid (CBD) products through Verde Life Inc. which incorporated on the State of Oregon, U.S.A. Its major operation is located in U.S.A. The Company conducts business in production and distribution of renewable commodities through Global Renewables Sdn. Bhd. which incorporated on Malaysia. Its major operation is located in Malaysia. The Company formed VEL on August 10, 2021, for the purpose of holding property in Missouri. Its major operation is located in U.S.A. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 19 - SUBSEQUENT EVENTS On January 17, 2022, the Company formed a wholly owned subsidiary, Verde Resources (Malaysia) Sdn Bhd, a company incorporated under the laws of the Malaysia, for the purpose of conducting consultation services and distribution of renewable agricultural commodities. Under the terms of the Share Sale Agreement on May 12, 2021 for the acquisition of the entire issued and paid-up share capital of Bio Resources Limited (“BRL”), the acquisition shall be satisfied by the issuance of 321,500,000 shares of the Company’s restricted Common Stock, par value $0.001 per share (the “Common Stock”) at a price per share of $0.03, and the issuance of promissory notes to 17 lenders (the “Lenders”) each with a two-year term period for the agreed principal amount of $20,355,000 (collectively the “Notes”). On January 20, 2022, the Company has reached a mutual agreement with the Lenders of the Notes to enter into a Supplement to Promissory Note, with each Lender, to convert the total principal loan amount of $20,355,000 into shares of the Company’s restricted Common Stock priced at $0.0611 per share, which represents the last ninety (90) days’ volume weighted average price (VWAP) as of the market closing of January 19, 2022. The Company and the Lenders further agreed that the actual date for the allotment and issue of new shares of the Company’s restricted Common Stock shall be confirmed in a subsequent written agreement. On February 10, 2022, the Company, through Verde Estates LLC, a limited liability company incorporated in the State of Missouri, which is a wholly-owned subsidiary of the Company’s wholly-owned subsidiary, Verde Renewables, Inc., entered into a Commercial Lease Agreement and Option to Purchase (the “Lease Agreement”) to rent a 24-acre property in La Belle from Jon Neal Simmons and Betty Jo Simmon (the “Landlord”) in order to kickstart carbon farming with biochar in Missouri. Under the Lease Agreement, the term of the lease will be for a period of two (2) years and the Company will have the right to renew the lease with a total of three renewal periods with each term being two years. The base rent is ten thousand dollars ($10,000) for the term, payable on the commencement of the Lease Agreement. The Lease Agreement also grants the Company the exclusive right and option to purchase the premises together with all the right title and interest from the Landlord for a consideration of four hundred ninety thousand dollar ($490,000) at any time during the two years period of the lease term. The Company has paid to the Landlord a security deposit of the sum of two hundred forty thousand dollars ($240,000) prior to the execution of the Lease Agreement. If the Company does not exercise the option to renew the lease or the option to purchase the premises from the Landlord, the security deposit shall be returned to the Company. The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there are no significant material subsequent items which are required to be disclosed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Condensed Consolidated Financial Statements | Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The results of operations for the periods ended December 31, 2021 are not necessarily indicative of the operating results for the full years. |
Basis of Presentation | The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). These condensed consolidated financial statements are expressed in United States dollars ($). Financial statements prepared in accordance with GAAP contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. These condensed consolidated audited financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading. |
Basis of Consolidation | The condensed consolidated financial statements include the financial statements of Verde Resources, Inc., its wholly owned subsidiary Gold Billion Global Limited (“GBL”) and the 85% of the deemed subsidiary variable interest of Champmark SDN BHD (“CSB”). All inter-company balances and transactions between the Company and its subsidiary and variable interest entity (VIE) have been eliminated upon consolidation. The Company has adopted ASC Topic 810-10-5-8, “Variable Interest Entities”, which requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. |
Variable Interest Entity and Indirect Subsidiary | On July 1, 2013, the Company’s subsidiary, GBL entered into a series of agreements (“VIE agreements”) with FMR and details of the VIE agreements are as follows : 1. Management Agreement, FMR entrusted the management rights of its subsidiary CSB to GBL that include: i) management and administrative rights over the day-to-day business affairs of CSB and the mining operation at Site IV-1 of the Merapoh Gold Mine; ii) final right for the appointment of members to the Board of Directors and the management team of CSB; iii) act as principal of CSB; iv) obligation to provide financial support to CSB; v) option to purchase an equity interest in CSB; vi) entitlement to future benefits and residual value of CSB; vii) right to impose no dividend policy; viii) human resources management. 2. Debt Assignment, FMR assigned to GBL the sum of money in the amount of US Dollars One Hundred Nine Thousand Eight Hundred One And Cents Seventy-Two Only (US$ 109,801.72), now due to GBL from CSB under the financing obligation from the FMR to CSB. With the above agreements, GBL demonstrates its ability to control CSB as the primary beneficiary and the operating results of the VIE was included in the condensed consolidated financial statements. On April 1, 2014, the Board of Director of GBL notified FMR upon the decision to exercise the right of option to purchase 85% equity interest of CSB under Management Agreement Section 3.2.4 dated July 1, 2013 between GBL and FMR. This acquisition was completed on April 1, 2014 with consideration of US$1. GBL then became 85% shareholder of CSB and is required to consolidate CSB as a subsidiary. On June 18, 2021, GBL entered into a Shares Sale Agreement to acquire the remaining 15% of the issued and paid-up share capital of CSB. GBL would own the entire issued and paid-up share capital of CSB upon completion of the acquisition. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its unaudited condensed consolidated financial statements. |
Cash and Cash Equivalents | Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $1,176,729 and $2,117,622 in cash and cash equivalents at December 31, 2021 and June 30, 2021, respectively. |
Concentrations of Credit Risk | The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. |
Risks and Uncertainties | The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure. |
Property, plant and equipment | Property, plant and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets with a 5% estimated residual values, as follows: Useful Lives Long Term Assets 3-6 years Machinery 5 years Furniture, fixture and electronic equipment 3 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Accounts Receivable | Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At December 31, 2021 and June 30, 2021, the Company has no allowance for doubtful accounts, as per management’s judgment based on their best knowledge. As of December 31, 2021 and June 30, 2021, the longest credit term for certain customers are 60 days. |
Provision for Doubtful Accounts | The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables and reviews accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, the Company makes judgments about the creditworthiness of customers based on past collection experience and ongoing credit risk evaluations. As of December 31, 2021 and June 30, 2021 there was no allowance for doubtful accounts. ASC Topic 820 ”Fair Value Measurement and Disclosures” ● Level 1—defined as observable inputs such as quoted prices in active markets; ● Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments consist of cash and cash equivalents, trade receivables, other receivables, payables, and short term and long term debt. The carrying values of cash and cash equivalents, trade receivables, other receivables, and payables approximate their fair value due to their short maturities. The carrying value of long term debt approximates the fair value of debt of similar terms and remaining maturities available to the company. The Company’s non-financial assets are measured on a recurring basis. These non-financial assets are measured for impairment annually on the Company’s measurement date at the reporting unit level using Level 3 inputs. For most assets, ASC 820 requires that the impact of changes resulting from its application be applied prospectively in the year in which the statement is initially applied. The Company’s non-financial assets measured on a non-recurring basis include the Company’s property, plant and equipment and finite-use intangible assets which are measured for recoverability when indicators for impairment are present. ASC 820 requires companies to disclose assets and liabilities measured on a non-recurring basis in the period in which the re-measurement at fair value is performed. |
Leases | The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2021 and June 30, 2021. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current in the consolidated balance sheets at December 31, 2021 and June 30, 2021. Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, we as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to us, while the leased asset is depreciated in accordance with our depreciation policy if the title is to eventually transfer to us. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC 842. |
Foreign Currency Translation | The Company’s reporting currency is the United States dollar (“$”) and the accompanying consolidated financial statements have been expressed in United States dollars. The Company’s functional currency is the Malaysian Ringgit (“MYR”) which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In accordance with ASC Topic 830 ”Translation of Financial Statements” Translation of amounts from RM into U.S. dollars has been made at the following exchange rates: Balance sheet items, except for equity accounts June 30, 2021 RM 4.1511 to 1 September 30, 2021 RM 4.1876 to 1 December 31, 2021 RM 4.1667 to 1 Statement of operations and cash flow items For the six months ended December 31, 2020 RM 4.1339 to 1 For the six months ended December 31, 2021 RM 4.1789 to 1 |
Stock-Based Compensation | The Company accounts for stock-based compensation in accordance with ASC 718-10 “Compensation-Stock Compensation” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units, and stock appreciation rights are based on estimated fair values. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. The Company accounts for non-employee stock-based awards at fair value in accordance with the measurement and recognition criteria of ASC 505-50 “Equity-Based Payments to Non-Employees. |
Comprehensive Income | Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes. |
Related Party | Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Non-controlling Interest | The Company’s non-controlling interest represents the minority shareholder’s ownership interest related to the Company’s subsidiary, CSB. The Company reports its non-controlling interest in subsidiaries as a separate component of equity in the Consolidated Balance Sheets and reports both net loss attributable to the non-controlling interest and net loss attributable to the Company’s common shareholders on the face of the Consolidated Statements of Operations. The Company’s equity interest in CSB is 85.0% and the non-controlling stockholder’s interest is 15%. This is reflected in the Consolidated Statements of Equity. |
Mineral Acquisition and Exploration Costs | The Company has been primarily engaged in the acquisition, exploration, and development of mining properties. The Company was no longer considered an exploration stage company after the reverse take-over with its subsidiary GBL. Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves. |
Environmental Expenditures | The operations of the Company have been, and may in the future be affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. |
Revenue Recognition | The Company recognizes revenues when its customers obtain control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identifies contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenues when (or as) it satisfies the performance obligation. Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Gold mining The Company derives revenues primarily from the sales of gold mineral or other minerals to registered gold trading companies or other customers in Malaysia. The Company generally recognizes its revenues in accordance with the following core principles: at the time of gold or minerals sales, the contract with customers and the performance obligations are identified. The transaction and selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia or at an agreed price. Sales invoice will be prepared to reflect the proper transaction price based on the performance obligation allocation. After delivery is completed and the performance obligation is satisfied, sales invoice will be presented to the customers and so revenue is then recognized accordingly. Product sales Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. |
Income Taxes | The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, ”Accounting for Income Taxes” ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. As of December 31, 2021 and June 30, 2021, the Company did not have any significant unrecognized uncertain tax positions. |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions and enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. ASU 2019-12 was effective July 1, 2021. The adoption of ASU 2019-12 did not have any impact on the Company’s consolidated financial statement presentation or 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 (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. Upon adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. For contracts in an entity’s own equity, the type of contracts primarily affected by ASU 2020-06 are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and only if adopted as of the beginning of such fiscal year. The Company adopted ASU 2020-06 effective July 1, 2021. The adoption of ASU 2020-06 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. Recently Issued But Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its consolidated financial statement presentations and disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 of the two-step goodwill impairment test, under which a goodwill impairment loss was measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss is measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). Adoption of the ASUs is on a modified retrospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its consolidated financial statement presentation or disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation —Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statement presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of property plant and equiment | Useful Lives Long Term Assets 3-6 years Machinery 5 years Furniture, fixture and electronic equipment 3 years |
Schedule of exchange differences recorded in consolidated statement of operations | Balance sheet items, except for equity accounts June 30, 2021 RM 4.1511 to 1 September 30, 2021 RM 4.1876 to 1 December 31, 2021 RM 4.1667 to 1 Statement of operations and cash flow items For the six months ended December 31, 2020 RM 4.1339 to 1 For the six months ended December 31, 2021 RM 4.1789 to 1 |
OTHER RECEIVABLE AND ADVANCED_2
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES | |
Schedule Of other Receivables | December 31 June 30 2021 2021 Other receivable (#1) $ - $ 26,338 Less: allowance for doubtful debts - - $ - $ 26,338 |
Schedule of Advanced to related parties | December 31, 2021 June 30, 2021 Advanced to Global Renewable Sdn Bhd (#1) (note 1) $ 125,408 $ 6,691 $ 125,408 $ 6,691 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
OPERATING LEASE | |
Schedule Of Operating Lease | Ended December 31 Balance as at the beginning of period $ 60,131 Addition - Amortization charge for the year (15,585 ) Foreign exchange adjustment (254 ) Balance as of December 31, 2021 $ 44,292 |
Schedule of Lease term and discount rate | Lease term and discount rate December 31, 2021 Weighted-average remaining lease term - years 1.46 |
OTHER DEPOSIT PREPAYMENT (Table
OTHER DEPOSIT PREPAYMENT (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
OTHER DEPOSIT PREPAYMENT | |
Schedule of other deposit | December 31, June 30, 2021 2021 Prepayments to suppliers $ 117,200 $ - Prepaid operating expenses - 6,137 $ 117,200 $ 6,137 |
DEPOSIT PAID FOR ACQUISITION _2
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY PLANT AND EQUIPMENT | |
Schedule of deposit | December 31, June 30, 2021 2021 Deposits paid for acquisition of subsidiaries - Bio Resources Limited (#1) $ 25,935,550 $ 25,935,550 - Champmark Sdn Bhd (#2) 36,005 $ 36,130 $ 25,971,555 $ 25,971,680 Deposits paid for acquisition of property, plant and equipment - Intellectual property license (#3) 5,000,000 4,070,000 - Factory site (#4) 800,000 800,000 - Security deposit of property (#5) 240,000 - $ 6,040,000 $ 4,870,000 |
ACCOUNTS PAYABLE AND ADVANCED_2
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES (Tables) | |
Schedule of accounts payable | December 31, 2021 June 30, 2021 Other accounts payable $ 1,921 $ 2,655 |
Schedule of advanced from subcontractor related parties | December 31, 2021 June 30, 2021 Advanced from BOG (#1) $ 584,253 $ 579,783 Advanced from Federal Capital Investment Limited (#2) $ 6,000 $ 6,000 Amounts due from directors (#3) $ 100 $ - $ 590,353 $ 585,783 |
PROPERTY PLANT AND EQUIPMENT (T
PROPERTY PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
PROPERTY PLANT AND EQUIPMENT | |
Schedule of property and equipment | December 31, 2021 June 30, 2021 (Unaudited) Land and Building $ 944,027 $ 947,292 Plant and Machinery 16,343 16,399 Office equipment 21,403 18,968 Project equipment 651,123 653,374 Computer 12,622 11,170 Motor Vehicle 126,230 35,710 Accumulated depreciation (1,681,781 ) (1,682,358 ) $ 89,967 $ 555 |
FINANCE LEASE LIABILITIES (Tabl
FINANCE LEASE LIABILITIES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
FINANCE LEASE LIABILITIES | |
Schedule of purchase installment | December 31, 2021 June 30, 2021 Current finance lease liabilities $ 10,440 $ - Non-current finance lease liabilities 49,593 - Total $ 60,033 $ - |
Schedule of long term and short term | Interest Rate Monthly Due December 31, 2021 June 30, 2021 Finance lease liabilities in the hire purchase loan 0 % 870 60,033 - Finance lease liabilities to a hire purchase creditor $ 60,033 $ - |
Schedule of maturities of the hire purchase | December 31, 2022 10,440 2023 10,441 2024 10,440 2025 10,441 Thereafter 18,271 Total minimum finance lease liabilities installment payment $ 60,033 Less: Imputed interest - Present value of net minimum lease payments (#) $ 60,033 |
PROMISSORY NOTES (Tables)
PROMISSORY NOTES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
PROMISSORY NOTES | |
Schedule of discounted interest rate | Risk free rate 0.268 % Credit spread 6.513 % Liquidity risk premium 5.000 % |
Schedule of beginning and ending balances of notes payable | December 31 June 30 2021 2021 Balance at the beginning of period $ 16,535,942 $ - Promissory notes issued to unrelated third parties at fair value - 16,290,550 Interest expense 954,934 245,392 Balance at the end of period $ 17,490,876 $ 16,535,942 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
Schedule of reconciliation between the income tax at statutory rate and the Company's provision for income tax | Three months period ended December 31, 2021 December 31, 2020 Loss before income taxes 21 21 Non-deductible items/non-taxable income (14 ) 6 Tax effect of tax exempt entity 1 (12 ) Share based payments (2 ) - Changes in valuation allowances (5 ) (17 ) Effect of different tax rate of subsidiaries operating in other jurisdictions (1 ) 2 Effective tax rate - - Six months period ended December 31, 2021 December 31, 2020 Loss before income taxes 21 21 Non-deductible items/non-taxable income (14 ) (5 ) Tax effect of tax exempt entity (2 ) (6 ) Share based payments (2 ) - Changes in valuation allowances (3 ) (11 ) Effect of different tax rate of subsidiaries operating in other jurisdictions (- ) 1 Effective tax rate - - |
Schedule of net deferred tax liabilities and assets | December 31, 2021 June 30, 2021 Deferred tax assets: Tax attribute carryforwards $ 1,247,591 $ 1,198,944 Valuation allowances (1,247,591 ) (1,198,944 ) Total $ - $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments And Contingencies | December 31, 2021 June 30, 2021 For purchase of property, plant and equipment $ 800,000 $ 1,730,000 For acquisition of subsidiary 6,001 6,023 Total $ 806,001 $ 1,736,023 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended December 31, 2021 2020 (Unaudited) (Unaudited) Net income(loss) applicable to common shares $ (843,248 ) $ (34,512 ) Weighted average common shares outstanding (Basic) 810,742,109 116,038,909 Options - - Warrants - - Weighted average common shares outstanding (Diluted) 810,742,109 116,038,909 Net income(loss) per share (Basic and Diluted) $ (0.00 )* $ (0.00 )* Six Months Ended December 31, 2021 2020 (Unaudited) (Unaudited) Net income(loss) applicable to common shares $ (1,665,920 ) $ (98,792 ) Weighted average common shares outstanding (Basic) 810,742,109 116,038,909 Options - - Warrants - - Weighted average common shares outstanding (Diluted) 810,742,109 116,038,909 Net income(loss) per share (Basic and Diluted) $ (0.00 )* $ (0.00 )* |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of Deposits paid for acquisition of property, plant and equipment | Related party balances December 31, 2021 2020 Deposits paid for acquisition of property, plant and equipment - Intellectual property license of Borneo Energy Sdn Bhd (#3) (note 7) $ 5,000,000 $ - |
Schedule of Related Party Transactions | Related party transaction Six months ended December 31, 2021 2020 Other income - Sales of wash sand to: Jusra Mining Merapoh Sdn Bhd (#1) $ 12,115 $ - Professional services provided by: Federal Capital Investment Limited (#2) 12,000 - Related party transaction Three months ended December 31, 2021 2020 Other income - Sales of wash sand to: Jusra Mining Merapoh Sdn Bhd (#1) $ 25 $ - Professional services provided by: Federal Capital Investment Limited (#2) 6,000 - |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Schedule of segment information | Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ - $ - $ - $ - Cost of revenue - - - - - - Gross profit - - - - - - Selling, general & administrative expenses (66,093 ) (1,755 ) (17,640 ) (92,254 ) (181,363 ) (359,105 ) Loss from operations (66,093 ) (1,755 ) (17,640 ) (92,254 ) (181,363 ) (359,105 ) Interest expenses - - - - (484,168 ) (484,168 ) Other income 25 - - - - 25 Loss before income tax (66,068 ) (1,755 ) (17,640 ) (92,254 ) (665,531 ) (843,248 ) Income tax - - - - - - Net loss $ (66,068 ) $ (1,755 ) $ (17,640 ) $ (92,254 ) $ (665,531 ) $ (843,248 ) Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ - $ - $ - $ - Cost of revenue - - - - - - Gross profit - - - - - - Selling, general & administrative expenses (107,376 ) (1,755 ) (17,640 ) (102,742 ) (493,588 ) (723,101 ) Loss from operations (107,376 ) (1,755 ) (17,640 ) (102,742 ) (493,588 ) (723,101 ) Interest expenses - - - - (954,934 ) (954,934 ) Other income 12,115 - - - - 12,115 Loss before income tax (95,261 ) (1,755 ) (17,640 ) (102,742 ) (1,448,522 ) (1,665,920 ) Income tax - - - - - Net loss $ (95,261 ) $ (1,755 ) $ (17,640 ) $ (102,742 ) $ (1,448,522 ) $ (1,665,920 ) Total assets: As of December 31, 2021 66,732 150,975 - 465,267 32,882,177 33,565,151 As of June 30, 2021 $ 97,952 - $ - $ - 32,961,202 33,059,154 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($) | Jun. 09, 2021 | May 10, 2021 | Jul. 01, 2013 | Mar. 17, 2014 | Feb. 17, 2014 | Dec. 31, 2021 | Jun. 30, 2021 | Jan. 20, 2022 | Sep. 30, 2021 | Jul. 01, 2021 | May 12, 2021 | Feb. 02, 2018 | Feb. 01, 2018 | Apr. 01, 2014 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 250,000,000 | ||||||||||
Restricted common stock price | $ 0.0611 | |||||||||||||
Total principal loan amount | $ 20,355,000 | |||||||||||||
Common stock, shares issued | 810,742,109 | 779,742,109 | 321,500,000 | |||||||||||
Promissory note | $ 17,490,876 | $ 16,535,942 | ||||||||||||
Accont payable | $ 1,921 | $ 2,655 | ||||||||||||
Represents information about Gold billion global limited. | ||||||||||||||
Equity interest ownership percentage | 100.00% | |||||||||||||
Represents information about Gold billion global limited. | Information about Champmark SDN BHD ("CSB"). | ||||||||||||||
Variable interest, ownership percentage | 85.00% | 15.00% | ||||||||||||
Equity interest ownership percentage | 15.00% | 85.00% | ||||||||||||
Champmark SDN BHD ("CSB") [Member] | Represents information pertains to Federal mining resources limited. | ||||||||||||||
Variable interest, ownership percentage | 85.00% | |||||||||||||
Champmark SDN BHD ("CSB") [Member] | Represents information about Gold billion global limited. | Represents a third party subcontractor of the company. | ||||||||||||||
Term of contract | 5 years | |||||||||||||
Champmark SDN BHD ("CSB") | ||||||||||||||
Variable interest, ownership percentage | 85.00% | 15.00% | ||||||||||||
Sale and Purchase Agreement [Member] | ||||||||||||||
Common stock, share issuance in consideration | 166,666,667 | |||||||||||||
Common stock, share issuance in consideration, per share | $ 0.03 | |||||||||||||
Common stock, share issuance in consideration, value | $ 5,000,000 | |||||||||||||
Common stock, shares issued | 135,666,667 | 31,000,000 | 321,500,000 | |||||||||||
Restricted common stock, share issuance in consideration | 321,500,000 | |||||||||||||
Restricted common stock, share issuance in consideration, value | $ 9,645,000 | |||||||||||||
Restricted common stock, share issuance in consideration, per share | $ 0.03 | |||||||||||||
Promissory notes, principal amount | $ 20,355,000 | |||||||||||||
Repayment of principal amount | $ 20,355,000 | |||||||||||||
Promissory note | $ 16,290,550 | |||||||||||||
Acquisition settled, cash payment | $ 1,600,000 | |||||||||||||
Paid to related party | 800,000 | |||||||||||||
Debt Settlement Agreement [Member] | ||||||||||||||
Accont payable | 1,945,096 | |||||||||||||
Equity subscription | $ 64,836,533 | |||||||||||||
Debt settlement agreement description | convert a total of USD1,945,096 of the Company’s accounts payable to the Creditors into equity by increasing the share capital by means of a subscription for 64,836,533 new restricted shares of the Company’s common stock at a subscription price of $0.03 per share. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Dec. 31, 2021 | |
Machinery [Member] | |
Estimated useful lives | 5 years |
Furniture, fixture and electronic equipment [Member] | |
Estimated useful lives | 3 years |
Minimum [Member] | Land and Building [Member] | |
Estimated useful lives | 3 years |
Maximum [Member] | Land and Building [Member] | |
Estimated useful lives | 6 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Foreign Currency Exchange Rate 2 | 4.1789 | 4.1339 | ||
Foreign Currency Exchange Rate | 4.1667 | 4.1876 | 4.1511 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Narrative) | Apr. 01, 2014USD ($) | Feb. 17, 2014 | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($)integer |
Revenue percentage | 18.00% | |||
Longest credit term for certain customers | 60 years | 60 days | ||
Advertising expenses | $ 0 | $ 0 | ||
Number of operating segments | integer | 1 | |||
Cash and cash equivalents | $ 1,176,729 | $ 2,117,622 | ||
Information about Champmark SDN BHD ("CSB"). | Represents information about Gold billion global limited. | ||||
Variable interest, ownership percentage | 85.00% | 15.00% | ||
Equity interest ownership percentage | 85.00% | 85.00% | ||
Champmark SDN BHD ("CSB") | ||||
Variable interest, ownership percentage | 85.00% | 15.00% | ||
Champmark SDN BHD ("CSB") [Member] | Represents information about Gold billion global limited. | ||||
Amount of consideration for acquisition | $ 1 |
OTHER RECEIVABLE AND ADVANCED_3
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES (Details) | ||
Other receivable | $ 0 | $ 26,338 |
Less: allowance for doubtful debts | 0 | 0 |
Other receivables, Total | $ 0 | $ 26,338 |
OTHER RECEIVABLE AND ADVANCED_4
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES (Details 1) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Advanced from related parties | $ 125,408 | $ 6,691 |
Advanced from related parties Total | 590,353 | 585,783 |
Advanced to Global Renewable Sdn Bhd [Member] | ||
Advanced from related parties | 125,408 | 6,691 |
Advanced from related parties Total | $ 125,408 | $ 6,691 |
OTHER RECEIVABLE AND ADVANCED_5
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES (Details Narrative) | 6 Months Ended |
Dec. 31, 2021 | |
OTHER RECEIVABLE AND ADVANCED TO RELATED PARTIES (Details) | |
Holding shares percentage | 15.00% |
OPERATING LEASE (Details)
OPERATING LEASE (Details) | 6 Months Ended |
Dec. 31, 2021USD ($) | |
OPERATING LEASE (Details) | |
Balance as at the beginning of period | $ 60,131 |
Addition | 0 |
Amortization charge for the year | (15,585) |
Foreign exchange adjustment | (254) |
Balance as of December 30, 2021 | $ 44,292 |
OPERATING LEASE (Details 1)
OPERATING LEASE (Details 1) | 6 Months Ended |
Dec. 31, 2021 | |
OPERATING LEASE (Details) | |
Weighted-average remaining lease term - years | 1 year 5 months 15 days |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - USD ($) | Jun. 14, 2021 | Dec. 31, 2021 |
OPERATING LEASE (Details) | ||
Lump sum payments for rent | $ 62,260 | |
Terms of mining leases | mining space with lease period for 2 years up to June 13, 2023, and no ongoing payments will be made under the terms of these mining leases. | |
Lease term | two years. | |
Description of lease payments | Lease expense for lease payment is recognized on a straight-line basis over the lease term. |
OTHER DEPOSIT PREPAYMENT (Detai
OTHER DEPOSIT PREPAYMENT (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
OPERATING LEASE (Details) | ||
Prepayments to suppliers | $ 117,200 | $ 0 |
Prepaid operating expenses | 0 | 6,137 |
Other deposit & prepayment | $ 117,200 | $ 6,137 |
DEPOSIT PAID FOR ACQUISITION _3
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Deposits paid for acquisition of subsidiaries | $ 25,971,555 | $ 25,971,680 |
Deposits paid for acquisition of property, plant and equipment | 6,040,000 | 4,870,000 |
Bio Resources Limited (#1) [Member] | ||
Deposits paid for acquisition of subsidiaries | 25,935,550 | 25,935,550 |
Champmark Sdn Bhd (#2) [Member] | ||
Deposits paid for acquisition of subsidiaries | 36,005 | 36,130 |
Intellectual property license (#3) [Member] | ||
Deposits paid for acquisition of property, plant and equipment | 5,000,000 | 4,070,000 |
Factory site (#4) [Member] | ||
Deposits paid for acquisition of property, plant and equipment | 800,000 | 800,000 |
Security deposit of property (#5) [Member] | ||
Deposits paid for acquisition of property, plant and equipment | $ 240,000 | $ 0 |
DEPOSIT PAID FOR ACQUISITION _4
DEPOSIT PAID FOR ACQUISITION OF SUBSIDIARIES AND PROPERTY, PLANT AND EQUIPMENT (Details Narrative) | Feb. 10, 2022USD ($) | Jun. 11, 2021USD ($) | May 12, 2021USD ($)$ / sharesshares | May 10, 2021USD ($)$ / sharesshares | Jun. 18, 2021MYR (RM) | Jul. 01, 2021shares | Jun. 30, 2021USD ($) | Jun. 21, 2021USD ($) | Jun. 10, 2021USD ($) |
Shares issued | shares | 135,666,667 | 31,000,000 | |||||||
Deposit | $ 35,843 | ||||||||
Restricted shares of common stock | $ 321,500,000 | ||||||||
Amount of issuance promissory notes | $ 20,355,000 | ||||||||
Segama Ventures Sdn Bhd [Member] | Sale and Purchase Agreement [Member] | |||||||||
Deposit | $ 800,000 | ||||||||
Cash payment | $ 1,600,000 | ||||||||
Number of instalments | two | ||||||||
Instalments amount | $ 800,000 | ||||||||
Biofraction plant [Member] | Sale and Purchase Agreement [Member] | |||||||||
Amount of issuance promissory notes | $ 20,355,000 | ||||||||
Number of shares issued under acquisition | shares | 321,500,000 | ||||||||
Shares issued price under acquisition | $ / shares | $ 0.03 | ||||||||
Amount of shares issued under acquisition | $ 9,645,000 | ||||||||
Lamax Gold Limited [Member] | |||||||||
Under the terms upon execution of shares sale agreement | RM | RM 150,000 | ||||||||
Issued and paid-up share capital percentage | 15.00% | ||||||||
Business acquisition owner percentage | 85.00% | ||||||||
Bio Resources Limited [Member] | Sale and Purchase Agreement [Member] | |||||||||
Number of shares issued under acquisition | shares | 166,666,667 | ||||||||
Shares issued price under acquisition | $ / shares | $ 0.03 | ||||||||
Amount of shares issued under acquisition | $ 5,000,000 | ||||||||
promissory note priced | $ 16,290,550 | ||||||||
Lease Agreements [Member] | Subsequent Event [Member] | |||||||||
Rent payable | $ 10,000 | ||||||||
Landlord consideration | 490,000 | ||||||||
Security deposit | $ 240,000 | ||||||||
Lease term | 2 years |
ACCOUNTS PAYABLE AND ADVANCED_3
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Notes Payable [Member] | ||
Other accounts payable | $ 1,921 | $ 2,655 |
ACCOUNTS PAYABLE AND ADVANCED_4
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES (Details 1) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Advanced from related parties | $ 590,353 | $ 585,783 |
Represents information about DueFromRelatedParty | ||
Advanced from related parties | 100 | 0 |
Represents a third party subcontractor of the company | ||
Advanced from related parties | 584,253 | 579,783 |
Director [Member] | Represents information pertains to federal capital investment limited. | February 20, 2016 [Member] | ||
Advanced from related parties | $ 6,000 | $ 6,000 |
ACCOUNTS PAYABLE AND ADVANCED_5
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES (Details Narrative) - USD ($) | 6 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 09, 2021 | |
Advance payment related to ordinary business transactions | $ 100 | ||
Total accounts payable | $ 1,921 | $ 2,655 | |
Represents information pertains to federal capital investment limited. | February 20, 2016 [Member] | Director [Member] | |||
Total accounts payable | $ 142,000 | ||
Equity subscription | $ 4,733,333 |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Accumulated depreciation | $ (1,681,781) | $ (1,682,358) |
Property, plant and equipment | 89,967 | 555 |
Plant And Machinery [Member] | ||
Property, plant and equipment, gross | 16,343 | 16,399 |
Office Equipment [Member] | ||
Property, plant and equipment, gross | 21,403 | 18,968 |
Represents the equipment used for projects. | ||
Property, plant and equipment, gross | 651,123 | 653,374 |
Computer Equipment [Member] | ||
Property, plant and equipment, gross | 12,622 | 11,170 |
Motor Vehicles [Member] | ||
Property, plant and equipment, gross | 126,230 | 35,710 |
Minimum [Member] | Land and Building [Member] | ||
Property, plant and equipment, gross | $ 944,027 | $ 947,292 |
PROPERTY PLANT AND EQUIPMENT _2
PROPERTY PLANT AND EQUIPMENT (Detail Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Property, plant and equipment | $ 58,467 | $ 58,467 | $ 0 | ||
Depreciation expenses under finance leases | 3,132 | 4,176 | $ 0 | ||
Depreciation expenses | $ 4,134 | $ 44 | $ 5,220 | $ 86 |
FINANCE LEASE LIABILITIES (Deta
FINANCE LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
FINANCE LEASE LIABILITIES (Details) | ||
Current finance lease liabilities | $ 10,440 | $ 0 |
Non-current finance lease liabilities | 49,593 | 0 |
Total | $ 60,033 | $ 0 |
FINANCE LEASE LIABILITIES (De_2
FINANCE LEASE LIABILITIES (Details 1) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Finance lease liabilities in the United States of America | $ 60,033 | $ 0 |
Finance lease liabilities in the United States of America, Interest rate | 0.00% | |
Finance lease liabilities to a hire purchase creditor | $ 60,033 | $ 0 |
Monthly Due [Member] | ||
Finance lease liabilities in the United States of America | $ 870 |
FINANCE LEASE LIABILITIES (De_3
FINANCE LEASE LIABILITIES (Details 2) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
FINANCE LEASE LIABILITIES (Details) | ||
2022 | $ 10,440 | |
2023 | 10,441 | |
2024 | 10,440 | |
2025 | 10,441 | |
Thereafter | 18,271 | |
Total minimum finance lease liabilities installment payment | 60,033 | |
Less: Imputed interest | 0 | $ 0 |
Present value of net minimum lease payments (#) | $ 60,033 |
FINANCE LEASE LIABILITIES (De_4
FINANCE LEASE LIABILITIES (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
FINANCE LEASE LIABILITIES (Details) | ||
Hire purchase installment loan amount | $ 60,033 | $ 0 |
Interest charges | 60,033 | 0 |
Interest | $ 0 | $ 0 |
PROMISSORY NOTES (Details)
PROMISSORY NOTES (Details) | 6 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES (Tables) | |
Risk free interest | 0.268% |
Credit spread | 6.513% |
Liquidity risk premium,percentage | 5.00% |
PROMISSORY NOTES (Details 1)
PROMISSORY NOTES (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES (Tables) | |||||
Balance at the beginning of period | $ 16,535,942 | $ 0 | $ 0 | ||
Promissory notes issued to unrelated third parties at fair value | 0 | 16,290,550 | |||
Interest expenses | $ 484,168 | $ 0 | 954,934 | $ 0 | 245,392 |
Balance at the ending balances | $ 17,490,876 | $ 17,490,876 | $ 16,535,942 |
PROMISSORY NOTES (Details Narra
PROMISSORY NOTES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 18, 2021 | Jun. 10, 2021 | Jun. 04, 2021 | May 12, 2021 | |
Interest expense | $ 484,168 | $ 0 | $ 954,934 | $ 0 | $ 245,392 | ||||
Common stock shares issued, shares | 810,742,109 | 810,742,109 | 779,742,109 | 321,500,000 | |||||
Common stock shares issued, amount | $ 810,742 | $ 810,742 | $ 779,742 | ||||||
May 12, 2021 [Member] | Promissory Note [Member] | |||||||||
Common stock shares issued, shares | 321,500,000 | 321,500,000 | |||||||
Promissory notes issued, amount | $ 20,355,000 | $ 20,355,000 | |||||||
Repaymnet of promissory notes | 20,355,000 | 20,355,000 | |||||||
Bearing interest rate | $ 0 | $ 0 | |||||||
Restricted Stock [Member] | |||||||||
Common stock shares issued, shares | 58,100,000 | 4,690,500 | 65,900,000 | 321,500,000 | |||||
Common stock per share | $ 0.03 | ||||||||
Common stock shares issued, amount | $ 1,452,500 | $ 1,647,500 | $ 9,645,000 |
INCOME TAX (Details)
INCOME TAX (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAX | ||||
Loss before income taxes | 21.00% | 21.00% | 21.00% | 21.00% |
Non-deductible items/non-taxable income | (14.00%) | 6.00% | (14.00%) | (5.00%) |
Tax effect of tax exempt entity | 1.00% | (12.00%) | (2.00%) | (6.00%) |
Share based payments | (2.00%) | 0.00% | (2.00%) | 0.00% |
Changes in valuation allowances | (5.00%) | (17.00%) | (3.00%) | (11.00%) |
Effect of different tax rate of subsidiaries operating in other jurisdictions | (0.00%) | (2.00%) | (1.00%) | (1.00%) |
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Deferred tax assets: | ||
Tax attribute carryforwards | $ 1,247,591 | $ 1,198,944 |
Valuation allowances | (1,247,591) | (1,198,944) |
Total | $ 0 | $ 0 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) | 6 Months Ended |
Dec. 31, 2021 | |
US Federal [Member] | |
Income Tax Rate | 21.00% |
Malaysia Rate [Member] | |
Income Tax Rate | 25.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Commitment and contingencies | ||
For purchase of property, plant and equipment | $ 800,000 | $ 1,730,000 |
For acquisition of subsidiary | 6,001 | 6,023 |
Total | $ 806,001 | $ 1,736,023 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss for the period | $ (843,248) | $ (34,512) | $ (1,665,920) | $ (98,792) |
Net income(loss) per share (Basic and Diluted) | $ 0 | $ 0 | $ 0 | $ 0 |
Common Share [Member] | ||||
Net loss for the period | $ (843,248) | $ (34,512) | $ (1,665,920) | $ (98,792) |
Weighted average common shares outstanding (Basic) | 810,742,109 | 116,038,909 | 810,742,109 | 116,038,909 |
Weighted average common shares outstanding (Diluted) | 810,742,109 | 116,038,909 | 810,742,109 | 116,038,909 |
Net income(loss) per share (Basic and Diluted) | $ 0 | $ 0 | $ 0 | $ 0 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | May 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 18, 2021 | Jun. 10, 2021 | Jun. 04, 2021 | May 12, 2021 | Jun. 09, 2020 | Feb. 02, 2018 | Feb. 01, 2018 |
Issuance of shares | 166,666,667 | ||||||||||||
Common stock shares issued, shares | 810,742,109 | 810,742,109 | 779,742,109 | 321,500,000 | |||||||||
Accounts payable | $ 1,945,096 | ||||||||||||
Subscription for new restricted shares | 64,836,533 | ||||||||||||
Subscription for new restricted shares price per share | $ 0.03 | ||||||||||||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 250,000,000 | ||||||||
Promissory Note | $ 16,290,550 | ||||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Common stock, shares outstanding | 810,742,109 | 810,742,109 | 779,742,109 | ||||||||||
Stock-based compensation under selling, general and administrative expenses | $ 95,094 | $ 0 | $ 191,222 | $ 0 | $ 140,715 | ||||||||
Transaction amount | 390,285 | ||||||||||||
Stock, value | 810,742 | 810,742 | $ 779,742 | ||||||||||
Share Sale Agreement [Member] | |||||||||||||
Common stock shares issued, shares | 321,500,000 | ||||||||||||
Stock, value | $ 9,645,000 | ||||||||||||
Stock price per share | $ 0.03 | ||||||||||||
Face value, principal amount | $ 20,355,000 | $ 20,355,000 | $ 20,355,000 | ||||||||||
July 1, 2021 [Member] | |||||||||||||
Common stock shares issued, shares | 31,000,000 | 31,000,000 | |||||||||||
May 10, 2021 [Member] | |||||||||||||
Stock, value | $ 5,000,000 | $ 5,000,000 | |||||||||||
Stock price per share | $ 0.03 | $ 0.03 | |||||||||||
Restricted Stock [Member] | |||||||||||||
Common stock shares issued, shares | 58,100,000 | 4,690,500 | 65,900,000 | 321,500,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||||||
Stock, value | $ 1,452,500 | $ 1,647,500 | $ 9,645,000 | ||||||||||
Stock price per share | $ 0.025 | $ 0.03 | $ 0.025 | $ 0.03 | |||||||||
Restricted Stock [Member] | Sylvia Chan [Member] | |||||||||||||
Common stock shares issued, shares | 2,095,233 | ||||||||||||
Restricted Stock [Member] | Chen Ching [Member] | |||||||||||||
Common stock shares issued, shares | 2,595,267 | ||||||||||||
Restricted Stock [Member] | Consultant [Member] | |||||||||||||
Common stock shares issued, shares | 13,009,500 | ||||||||||||
Stock-based compensation under selling, general and administrative expenses | $ 34,716 | ||||||||||||
Transaction amount | $ 390,285 | ||||||||||||
Stock price per share | $ 0.03 | ||||||||||||
Restricted Stock [Member] | Vincent Yong Tuck Seng [Member] | |||||||||||||
Common stock shares issued, shares | 3,695,233 | ||||||||||||
Restricted Stock [Member] | Lai Kui Shing Andy [Member] | |||||||||||||
Common stock shares issued, shares | 3,695,233 | ||||||||||||
Restricted Stock [Member] | Chan Hoi Kwong Paul [Member] | |||||||||||||
Common stock shares issued, shares | 2,095,233 | ||||||||||||
Restricted Stock [Member] | Balakrishnan B S Muthu [Member] | |||||||||||||
Common stock shares issued, shares | 2,095,233 | ||||||||||||
Restricted Stock [Member] | Ng Tung [Member] | |||||||||||||
Common stock shares issued, shares | 1,428,568 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | ||||
Jusra Mining Merapoh Sdn Bhd (#1) | $ 25 | $ 0 | $ 12,115 | $ 0 |
Federal Capital Investment Limited (#2) | $ 6,000 | $ 0 | $ 12,000 | $ 0 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits paid for acquisition of property, plant and equipment [Member] | ||
Intellectual property license of Borneo Energy Sdn Bhd (#3) (note 7) | $ 5,000,000 | $ 0 |
GOING CONCERN AND LIQUIDITY C_2
GOING CONCERN AND LIQUIDITY CONSIDERATIONS (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
GOING CONCERN AND LIQUIDITY CONSIDERATIONS | ||
Accumulated deficit | $ (7,562,240) | $ (5,913,255) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Revenue | $ 0 | $ 0 | $ 0 | $ 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general & administrative expenses | 359,105 | 34,512 | 723,101 | 98,792 | |
Interest expense | 484,168 | 0 | 954,934 | 0 | $ 245,392 |
Income tax | 0 | 0 | 0 | 0 | |
Net loss for the period | (843,248) | $ (34,512) | (1,665,920) | $ (98,792) | |
Total assets | 33,565,151 | 33,565,151 | 33,059,154 | ||
Corporate Unallocated [Member] | |||||
Revenue | 0 | 0 | |||
Cost of revenue | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Selling, general & administrative expenses | 181,363 | 493,588 | |||
Loss from operations | (181,363) | (493,588) | |||
Interest expense | 484,168 | 954,934 | |||
Other income | 0 | 0 | |||
Loss before income tax | (665,531) | (1,448,522) | |||
Income tax | 0 | 0 | |||
Net loss for the period | (665,531) | (1,448,522) | |||
Total assets | 32,882,177 | 32,882,177 | 32,961,202 | ||
Distribution of THC-free cannabinoid (CBD) products [Member] | |||||
Revenue | 0 | 0 | |||
Cost of revenue | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Selling, general & administrative expenses | 1,755 | 1,755 | |||
Loss from operations | (1,755) | (1,755) | |||
Interest expense | 0 | 0 | |||
Other income | 0 | 0 | |||
Loss before income tax | (1,755) | (1,755) | |||
Income tax | 0 | 0 | |||
Net loss for the period | (1,755) | (1,755) | |||
Total assets | 150,975 | 150,975 | 0 | ||
Production and Distribution of Renewable Commodities [Member] | |||||
Revenue | 0 | 0 | |||
Cost of revenue | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Selling, general & administrative expenses | 17,640 | 17,640 | |||
Loss from operations | (17,640) | (17,640) | |||
Interest expense | 0 | 0 | |||
Other income | 0 | 0 | |||
Loss before income tax | (17,640) | (17,640) | |||
Income tax | 0 | 0 | |||
Net loss for the period | (17,640) | (17,640) | |||
Total assets | 0 | 0 | 0 | ||
Holding Property [Member] | |||||
Revenue | 0 | 0 | |||
Cost of revenue | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Selling, general & administrative expenses | 92,254 | 102,742 | |||
Loss from operations | (92,254) | (102,742) | |||
Interest expense | 0 | 0 | |||
Other income | 0 | 0 | |||
Loss before income tax | (92,254) | (102,742) | |||
Income tax | 0 | 0 | |||
Net loss for the period | (92,254) | (102,742) | |||
Total assets | 465,267 | 465,267 | 0 | ||
Gold Mineral Mining [Member] | |||||
Revenue | 0 | 0 | |||
Cost of revenue | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Selling, general & administrative expenses | 66,093 | 107,376 | |||
Loss from operations | (66,093) | (107,376) | |||
Interest expense | 0 | 0 | |||
Other income | 25 | 12,115 | |||
Loss before income tax | (66,068) | (95,261) | |||
Income tax | 0 | 0 | |||
Net loss for the period | (66,068) | (95,261) | |||
Total assets | 66,732 | 66,732 | 97,952 | ||
Consolidated [Member] | |||||
Revenue | 0 | 0 | |||
Cost of revenue | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Selling, general & administrative expenses | 359,105 | 723,101 | |||
Loss from operations | (359,105) | (723,101) | |||
Interest expense | 484,168 | 954,934 | |||
Other income | 25 | 12,115 | |||
Loss before income tax | (843,248) | (1,665,920) | |||
Income tax | 0 | ||||
Net loss for the period | (843,248) | (1,665,920) | |||
Total assets | $ 33,565,151 | $ 33,565,151 | $ 33,059,154 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Feb. 10, 2022USD ($) | May 12, 2021USD ($)integer$ / sharesshares | Jan. 20, 2022USD ($)$ / shares | Dec. 31, 2021$ / sharesshares | Jun. 30, 2021$ / sharesshares | Jun. 18, 2021$ / sharesshares | Jun. 10, 2021$ / sharesshares | Jun. 04, 2021$ / sharesshares |
Common stock shares issued, shares | shares | 321,500,000 | 810,742,109 | 779,742,109 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||
Restricted Stock [Member] | ||||||||
Common stock shares issued, shares | shares | 321,500,000 | 58,100,000 | 4,690,500 | 65,900,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||
Number of lenders | integer | 17 | |||||||
Stock price per share | $ / shares | $ 0.03 | $ 0.025 | $ 0.03 | $ 0.025 | ||||
Issuance of promissory notes term | two-year term | |||||||
Repayment of principal amount | $ 20,355,000 | |||||||
Restricted Stock [Member] | Subsequent Event [Member] | ||||||||
Stock price per share | $ / shares | $ 0.0611 | |||||||
Repayment of principal amount | $ 20,355,000 | |||||||
Base rent | $ 10,000 | |||||||
Interest from the Landlord | 490,000 | |||||||
Security deposit | $ 240,000 |