Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Oct. 10, 2018 | Dec. 31, 2017 | |
Entity Registrant Name | IONIX TECHNOLOGY, INC. | ||
Entity Central Index Key | 1,528,308 | ||
Document Type | 10-K | ||
Trading Symbol | IINX | ||
Document Period End Date | Jun. 30, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 180,110,300 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 99,003,000 | ||
Preferred Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 5,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets: | ||
Cash | $ 111,462 | $ 186,767 |
Accounts receivables - non-related parties | 636,413 | 292,265 |
Accounts receivables - related parties | 119,543 | |
Inventory | 226,839 | 53,163 |
Advances to suppliers - non-related parties | 3,164 | 118,647 |
Advances to suppliers - related parties | 206,194 | |
Other receivables | 147,615 | |
Prepaid expenses and other current assets | 20,592 | 10,755 |
Total Current Assets | 1,324,207 | 809,212 |
Total Assets | 1,324,207 | 809,212 |
Current Liabilities: | ||
Accounts payable - non-related parties | 264,171 | 96,378 |
Accounts payable - related parties | 248,543 | 159,861 |
Advance from customers | 59,546 | 72,476 |
Due to related parties | 212,557 | 323,599 |
Accrued expenses and other current liabilities | 125,733 | 94,844 |
Total Current Liabilities | 910,550 | 747,158 |
Deferred tax liability | 15,242 | |
Total Liabilities | 925,792 | 747,158 |
COMMITMENT AND CONTINGENCIES | ||
Stockholders' Equity: | ||
Preferred stock, $.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding | 500 | 500 |
Common stock, $.0001 par value, 195,000,000 shares authorized, 99,003,000 shares issued and outstanding | 9,900 | 9,900 |
Additional paid in capital | 237,246 | 237,246 |
Retained earnings (accumulated deficit) | 142,819 | (183,441) |
Accumulated other comprehensive income (loss) | 7,950 | (2,151) |
Total Stockholders' Equity | 398,415 | 62,054 |
Total Liabilities and Stockholders' Equity | $ 1,324,207 | $ 809,212 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, issued | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 5,000,000 | 5,000,000 |
Common stock, authorized | 195,000,000 | 195,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, issued | 99,003,000 | 99,003,000 |
Common stock, outstanding | 99,003,000 | 99,003,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Revenues – Non-related parties | $ 5,929,368 | $ 5,323,818 |
Related parties | 493,439 | 1,493,090 |
Revenues | 6,422,807 | 6,816,908 |
Cost of revenues - Non-related parties | 1,357,807 | 2,720,295 |
Related parties | 4,324,105 | 3,762,550 |
Total Cost of Revenues | 5,681,912 | 6,482,845 |
Gross profit | 740,895 | 334,063 |
Operating expenses | ||
Selling, general and administrative expense | 270,074 | 312,792 |
Total operating expenses | 270,074 | 312,792 |
Income from operations | 470,821 | 21,271 |
Other income - consulting service | 69,967 | |
Income from continuing operations before income tax | 470,821 | 91,238 |
Income tax | 144,561 | 29,618 |
Net income from continuing operations | 326,260 | 61,620 |
Discontinued operations | ||
Income from discontinued operations, net of tax | 39,847 | |
Loss from disposal of discontinued operations | (50,005) | |
Total loss from discontinued operations | (10,158) | |
Net income | 326,260 | 51,462 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | 10,101 | (2,506) |
Comprehensive income | $ 336,361 | $ 48,956 |
Income (Loss) Per Share | ||
Basic and Diluted - continuing operation (in dollars per share) | $ 0 | $ 0 |
Basic and Diluted - discontinued operation (in dollars per share) | 0 | 0 |
Total (in dollars per share) | $ 0 | $ 0 |
Weighted average number of common shares outstanding - Basic and Diluted (in shares) | 99,003,000 | 99,003,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at beginning at Jun. 30, 2016 | $ 500 | $ 9,900 | $ 237,246 | $ (234,903) | $ 355 | $ 13,098 |
Balance at beginning (in shares) at Jun. 30, 2016 | 5,000,000 | 99,003,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 51,462 | 51,462 | ||||
Foreign currency translation adjustment | (2,506) | (2,506) | ||||
Balance at end at Jun. 30, 2017 | $ 500 | $ 9,900 | 237,246 | (183,441) | (2,151) | 62,054 |
Balance at end (in shares) at Jun. 30, 2017 | 5,000,000 | 99,003,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 326,260 | 326,260 | ||||
Foreign currency translation adjustment | 10,101 | 10,101 | ||||
Balance at end at Jun. 30, 2018 | $ 500 | $ 9,900 | $ 237,246 | $ 142,819 | $ 7,950 | $ 398,415 |
Balance at end (in shares) at Jun. 30, 2018 | 5,000,000 | 99,003,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 326,260 | $ 51,462 |
Net loss from discontinued operation | 10,158 | |
Net income from continuing operations | 326,260 | 61,620 |
Adjustments required to reconcile net income to net cash provided by (used in) operating activities: | ||
Deferred taxes | 15,062 | |
Changes in operating assets and liabilities: | ||
Accounts receivable-non related parties | (333,204) | (295,387) |
Accounts receivable- related parties | (118,134) | |
Inventory | (170,376) | (53,731) |
Advances to suppliers - non-related parties | 116,919 | (119,914) |
Advances to suppliers - related parties | (203,764) | |
Prepaid expenses | (9,526) | (10,750) |
Accounts payable - non-related parties | 163,543 | 97,408 |
Accounts payable - related parties | 83,870 | 161,569 |
Advance from customers | (14,486) | 73,250 |
Accrued expenses and other current liabilities | 29,223 | 86,380 |
Net cash provided by (used in) continuing operation | (114,613) | 445 |
Net cash provided by discontinued operation | ||
Net cash provided by (used in) operating activities | (114,613) | 445 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Other receivables | 149,354 | (149,191) |
Proceeds from disposal of subsidiary | 5,000 | |
Net cash provided by (used in) continuing operation | 149,354 | (144,191) |
Net cash provided by discontinued operation | ||
Net cash provided by (used in) investing activities | 149,354 | (144,191) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from (repayment of) loans from related parties | (113,036) | 271,936 |
Net cash provided by (used in) continuing operation | (113,036) | 271,936 |
Net cash provided by discontinued operation | ||
Net cash provided by (used in) financing activities | (113,036) | 271,936 |
Effect of exchange rate changes on cash | 2,990 | (1,181) |
Net increase (decrease) in cash | (75,305) | 127,009 |
Cash, beginning of year | 186,767 | 59,758 |
Cash, end of year | 111,462 | 186,767 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income tax | 44,712 | $ 7,534 |
Cash paid for interests |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS Ionix Technology, Inc. (the “Company” or “Ionix”), formerly known as Cambridge Projects Inc., is a Nevada corporation that was formed on March 11, 2011. By and through its wholly owned subsidiaries in China, the Company sells the high-end intelligent electronic equipment, which includes portable power banks for electronic devices and LCD screens in China. On February 17, 2016, the Board ratified, approved, and authorized the Company, as the sole member of Well Best International Investment Limited (“Well Best”), on the formation of Taizhou Ionix Technology Company Limited (“Taizhou Ionix”), a company formed under the laws of China on December 17, 2015, and a wholly-owned subsidiary of Well Best. As a result, Taizhou Ionix is an indirect wholly-owned subsidiary of the Company. Taizhou Ionix conducted no business between its date of incorporation and date approved by the Board. Taizhou Ionix was formed to (i) develop, design, and manufacture lithium-ion batteries for electric vehicles, and (ii) act as an investment holding company that may acquire other businesses located in China. On August 19, 2016, Well Best sold 100% ownership of Taizhou Ionix to one of its directors. (See Note 4) On May 19, 2016, the Company, as the sole member of Well Best, formed Xinyu Ionix Technology Company Limited (“Xinyu Ionix”), a company formed under the laws of China. As a result, Xinyu Ionix is a wholly-owned subsidiary of Well Best and an indirect wholly-owned subsidiary of the Company. Xinyu Ionix started operation in August 2016 and focused on developing and designing lithium batteries as well as to act as an investment company that may acquire other businesses located in China. On April 30, 2017, Well Best sold 100% ownership of Xinyu Ionix to one of its directors. (See Note 4) On November 7, 2016, the Company’s Board of Directors approved and ratified the incorporation of Lisite Science Technology (Shenzhen) Co., Ltd (“Lisite Science”), a limited liability company formed in China on June 20, 2016. Well Best is the sole shareholder of Lisite Science. As a result, Lisite Science is an indirect, wholly-owned subsidiary of the Company. Lisite Science will act as a manufacturing base for the Company and has been focused on developing, producing and selling high-end intelligent electronic equipment, such as portable power banks. On November 7, 2016, the Company’s Board of Directors approved and ratified the incorporation of Shenzhen Baileqi Electronic Technology Co., Ltd. (“Baileqi Electronic”), a limited liability company formed in China on August 8, 2016. Well Best is the sole shareholder of Baileqi Electronic. As a result, Baileqi Electronic is an indirect, wholly-owned subsidiary of the Company. Baileqi Electronic will act as a manufacturing base for the Company and has been focused on development and production of the LCD monitors. On December 29, 2016, the Company’s Board of Directors approved and ratified to invest 99,999 HK dollars for 99.999% of the issued and outstanding stock of Welly Surplus International Limited (“Welly Surplus”), a limited company formed under the laws of Hong Kong on January 18, 2016. As a result of the investment, the Company became the majority shareholder of Welly Surplus, owning 99.999% of the outstanding stock of Welly Surplus, Mr. Xin Sui, a director, owns 0.001% of the outstanding stock of Welly Surplus. Welly Surplus will act as the accounting and financial base for the Company and shall focus on assisting the Company with all of the Company’s financial affairs. Welly Surplus had no operating activities from inception until the date of acquisition. On February 20, 2018, the Company’s Board of Directors approved and ratified the incorporation of Changchun Fangguan Photoelectric Display Technology Co. Ltd. (“Fangguan Photoelectric”), a limited liability company formed in China on February 1, 2018. Well Best is the sole shareholder of Fangguan Photoelectric. As a result, Fangguan Photoelectric is an indirect, wholly-owned subsidiary of the Company. Fangguan Photoelectric will act as a manufacturing base for the Company and shall focus on developing and producing high-end intelligent electronic equipment, such as LCD screens. On June 28, 2018, the Company’s Board of Directors approved and ratified the incorporation of Dalian Shizhe New Energy Technology Co., Ltd, a limited liability company formed under the laws of the PRC on June 28, 2018. Well Best is the sole shareholder of Dalian. As a result, Dalian is an indirect, wholly-owned subsidiary of the Company. Dalian will focus on promotion, services, and technical consulting for new energy, power supply technology development, solar photovoltaic system construction, energy performance contracting, energy-saving technology detection, and energy-saving construction technology consulting. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2 - GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has not generated sufficient cash flow from its operating activities for the past three years and did not have enough cash to support future operating plans. These circumstances, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company may need to raise additional capital from external sources or obtain loans from officers and shareholders in order to continue the long-term efforts contemplated under its business plan. The Company is pursuing other revenue streams which could include strategic acquisitions or possible joint ventures of other business segments. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis of consolidation The consolidated financial statements include the accounts of Ionix Technology Inc. and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation. Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with US GAAP and this 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 consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements. Cash and cash equivalents Cash consists of cash on hand and cash in bank. Cash equivalents represent investment securities that are short-term, have high credit quality and are highly liquid. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from shipment. Credit is extended based on evaluation of a customer's financial condition, the customer’s credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of each period, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. Based on the evaluation, the Company has determined that no allowance for doubtful accounts is required as of June 30, 2018 and 2017. Inventories Inventories consist of raw materials and finished goods. Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although we believe that the assumptions we use to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result. Advances to suppliers Advances to suppliers represent prepayments for merchandise, which were purchased but had not been received. The balance of the advances to suppliers is reduced and reclassified to inventories when the raw materials are received and pass quality inspection. Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. Revenue recognition In accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. The Company recognizes revenue from the sale of finished products upon delivery to the customer, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes (“VAT”). The Company is subject to VAT which is levied on the majority of the products at the rate of 16% on the invoiced value of sales. Related parties and transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it requires their disclosure nonetheless. Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and discloses 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 June 30, 2018 and 2017, the Company did not have any significant unrecognized uncertain tax positions. Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), change in unrealized gains (losses) on marketable securities classified as available-for-sale (net of tax), foreign currency translation adjustments, and share of change in other comprehensive income of equity investments one quarter in arrears. Earnings (losses) per share Basic earnings (losses) per ordinary share is based on the weighted effect of ordinary shares issued and outstanding, and is calculated by dividing net profit by the weighted average shares outstanding during period. Diluted earnings per ordinary share is calculated by dividing net profit by the weighted average number of ordinary shares used in the basic earnings per share calculation plus the number ordinary shares that would be issued assuming exercise or conversion of all potentially dilutive ordinary shares outstanding. Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss). The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: June 30, 2018 June 30, 2017 Balance sheet items, except for equity accounts 6.6166 6.7744 Years Ended June 30, 2018 2017 Items in statements of comprehensive income (loss) and 6.6955 6.7028 Fair Value of Financial Instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, accounts receivable, inventory, prepayments and other receivables, accounts payable, income tax payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Company has no financial assets or liabilities measured at fair value on a recurring basis. Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee's obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee's right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee's initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new standard on its consolidated statements and related disclosures. In May 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients”. The update is to address certain issues identified by the FASB/IASB Joint Transition Resource Group for Revenue Recognition (TRG) in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition, the Board decided to add a project to its technical agenda to improve Topic 606, Revenue from Contracts with Customers, by reducing: 1) the potential for diversity in practice at initial application and 2) the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The amendments in this Update affect entities with transactions included within the scope of Topic 606. The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments to the recognition and measurement provisions of Topic 606 also affect entities with transactions included within the scope of Topic 610, Other Income. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the potential impact of adopting this new standard on its consolidated statements and related disclosures. In September 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This guidance clarifies the presentation requirements of eight specific issues within the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial statements, as the Company’s treatment of the relevant affected items within its consolidated statement of cash flows is consistent with the requirements of this guidance. In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 provides entities the option to reclassify certain "stranded tax effects" resulting from the recent US tax reform from accumulated other comprehensive income ("AOCI") to retained earnings. Under the ASU, reporting entities will select an accounting policy to either reclassify all stranded tax effects caused by tax reform from AOCI to retained earnings, or continue recycling stranded effects (including those caused by tax reform) through earnings in future periods. Further, disclosure of either policy is required in all cases. The reclassification from AOCI to retained earnings is presented in the statement of shareholders equity. The ASU is effective for all entities in fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for public business entities for which financial statements have not yet been issued, and for all other entities for which financial statements have not yet been made available for issuance. Entities have the option to record the reclassification either retrospectively to each period in which the income tax effects of tax reform are recognized, or at the beginning of the annual or interim period in which the amendments are adopted. The Company determined that the adoption of this new standard will have no material impact on its consolidated statements and related disclosures. In March 2018, FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 amends SEC paragraphs in ASC 740 to reflect SEC Staff Accounting Bulletin (SAB) No.118. When the 2017 Tax Cuts and Jobs Act (the "Act") was signed into law, the SEC staff released SAB 118 for applying Topic 740 as it relates to the Act. SAB 118 outlines the approach companies may take if they determine that the necessary information is not available (in reasonable detail) to evaluate, compute, and prepare accounting entries to recognize the effect(s) of the Act by the time the financial statements are required to be filed. Companies may use this approach when the timely determination of some or all of the income tax effect(s) from the Act is incomplete by the due date of the financial statements. SAB 118 also prescribes disclosures that reporting entities must provide in these circumstances. The amendments to the Accounting Standards Codification became effective upon issuance. The Company has conducted a preliminary assessment of its income tax effects of the Act. Additional analysis of the law and the impact to the Company may be performed, if needed, and any impact will be finalized in 2018. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 4 - DISCONTINUED OPERATIONS Taizhou Ionix On August 19, 2016, Well Best entered into a share transfer agreement whereby Well Best sold 100% of its equity interest in Taizhou Ionix to Mr. GuoEn Li, the sole director and officer of Taizhou Ionix for approximately RMB 30,000 (approximately $5,000USD). Well Best was the sole shareholder of Taizhou Ionix. The Company believed that the manufacturing contract between Taizhou Ionix and Taizhou Jiunuojie Electronic Technology Limited regarding the production of lithium batteries was not beneficial to the Company. As a result, (i) Taizhou Ionix is no longer an indirect, wholly-owned subsidiary of the Company, and (ii) Mr. Li is no longer affiliated with the Company. Well Best recorded a loss of $18,890 on disposal of Taizhou Ionix which was included in the loss from disposal of discontinued operations on statements of comprehensive income. The following table shows the result of operations of Taizhou Ionix for the period from July 1 to August 19, 2016 which are included in the income from discontinued operations: For the period from July 1 to August 19, 2016 Revenue $ 173,005 Cost of revenue 152,465 Gross profit 20,540 Selling, general and administrative expenses 8,917 Income before provision for income taxes 11,623 Provision for income taxes 2,906 Net income $ 8,717 Xinyu Ionix On April 30, 2017, Well Best, a wholly-owned subsidiary of the Company, sold 100% of its equity interest in Xinyu Ionix to Zhengfu Nan for RMB 100 (approximately $14USD) pursuant to a Share Transfer Agreement dated April 30, 2017 (the “Agreement”). The Company believed that the manufacturing contract between Xinyu Ionix and Jiangxi Huanming Technology Co., Ltd. regarding the production of lithium batteries was not beneficial to the Company. As a result, (i) Xinyu Ionix is no longer an indirect, wholly-owned subsidiary of the Company, and (ii) Mr. Nan is no longer affiliated with the Company. Well Best recorded a loss of $31,115 on disposal of Xinyu Ionix which was included in the loss from disposal of discontinued operations on statements of comprehensive income. The following table shows the results of operations of Xinyu Ionix for the period from July 1, 2016 to April 30, 2017 which are included in the income from discontinued operations: For the period from July 1, 2016 to April 30, 2017 Revenue $ 858,357 Cost of revenue 769,418 Gross profit 88,939 Selling, general and administrative expenses 34,427 Income before provision for income taxes 54,512 Provision for income taxes 23,382 Net income $ 31,130 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 - INVENTORIES Inventories are stated at the lower of cost (determined using the weighted average cost) or net realizable value and are composed of the raw materials and finished goods. Inventories consist of the following: June 30, 2018 June 30, 2017 Raw materials $ 105,879 $ 53,163 Finished goods 120,960 - Total inventories $ 226,839 $ 53,163 |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 6 - OTHER RECEIVABLES Other receivables represent short term advances to third parties. They are interest free, unsecured and repayable on demand. The balance of the other receivables as of June 30, 2017 was repaid in full in September 2017. |
DUE TO RELATED PARTIES
DUE TO RELATED PARTIES | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
DUE FROM/TO RELATED PARTIES | NOTE 7 - DUE TO RELATED PARTIES Manufacture – related party On September 1, 2016, Baileqi Electronic entered into a manufacturing agreement with Shenzhen Baileqi Science and Technology Co., Ltd. (“Shenzhen Baileqi S&T”) to manufacture products for Baileqi Electronic. The owner of Shenzhen Baileqi S&T is also a stockholder of the Company who owns approximately 1.5% of the Company’s outstanding common stock as of June 30, 2018. The manufacturing costs incurred with Shenzhen Baileqi S&T was $268,952 and $153,718 for the years ended June 30, 2018 and 2017, respectively, and the amount of $268,952 and $153,718 respectively were included in cost of revenue. Purchase from related party During the year ended June 30, 2018, the Company purchased $1,916,551 and $653,494 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s stockholders who own approximately 2% and 1.5% respectively of the Company’s outstanding common stock as of June 30, 2018. The amount of $1,916,551 and $653,458 were included in the cost of revenue. During the year ended June 30, 2017, the Company purchased $3,303,081 and $305,750 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s stockholders who own approximately 2% and 1.5% respectively of the Company’s outstanding common stock. The amount of $3,303,081 and $305,750 were included in the cost of revenue. During the year ended June 30, 2018, the Company purchased $1,523,770 from Changchun Fangguan Electronic Science and Technology Co., Ltd. (“Fangguan S&T”). The president of Fangguan S&T is the president and a member of the board of directors of Fangguan Photoelectric. The amount of $1,485,144 was included in the cost of revenue. The Company made advances of $206,194 to Keenest for future purchases as of June 30, 2018. The trade balance payable to Fangguan S&T was $248,543 as of June 30, 2018. The trade balance payable to Shenzhen Baileqi S&T were $159,861 as of June 30, 2017. Sales to related party During the year ended June 30, 2018, Baileqi Electronic sold materials of $493,439 to Shenzhen Baileqi S&T. The trade-related balance receivable from Shenzhen Baileqi S&T was $119,543 as of June 30, 2018. During the year ended June 30, 2017, Lisite Science sold materials of $1,493,090 to Keenest. The sales-related balance receivable from Keenest was zero as of June 30, 2017. Due to related parties Due to related parties represents certain advances to the Company or its subsidiaries by related parties. The amounts are non-interest bearing, unsecured and due on demand. Due to related parties consists of the following: June 30, 2018 June 30, 2017 Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (6) 70,458 - Changyong Yang (2) - 122,820 Xin Sui (3) 1,992 6,992 Baozhen Deng (4) (3,685 ) 8,590 Shenzhen Baileqi S&T (5) - 41,405 $ 212,557 $ 323,599 (1) Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc. (2) Changyong Yang is a stockholder of the Company, who owns approximately 2% of the Company’s outstanding common stock, and the owner of Keenest. (3) Xin Sui is a member of the board of directors of Welly Surplus. (4) Baozhen Deng is a stockholder of the Company, who owns approximately 1.5% of the Company’s outstanding common stock, and the owner of Shenzhen Baileqi S&T. (5) Shenzhen Baileqi S&T is a company established in China and 100% owned by Baozhen Deng, a stockholder of the Company. (6) Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc. During the year ended June 30, 2018, Welly Surplus refunded $5,000 to Xin Sui. Baileqi Electronic refunded $41,405 and $8,590 to Shenzhen Baileqi S&T and Baozhen Deng. In addition, Baileqi Electronic further advanced $3,685 to Baozhen Deng and the advance was repaid in full from Baozhen Deng in September 2018. Lisite Science refunded $122,820 to Changyong Yang. During the year ended June 30, 2018, Yubao Liu advanced $70,458 to Well Best. During the year ended June 30, 2017, Ben Wong advanced $95,282 to Well Best and he received the proceeds of $5,000 from sales of Taizhou Ionix on behalf of the Company. Changyong Yang, a stockholder of the Company, advanced $122,820 to Lisite Science. Baozhen Deng, a stockholder of the Company and the owner of Shenzhen Baileqi S&T, advanced $8,590 to Baileqi Electronic. Shenzhen Baileqi S&T, a company 100% owned by Baozhen Deng, advanced $41,405 to Baileqi Electronic. Xin Sui, a member of the board of directors of Welly Surplus, advanced $6,992 to Welly Surplus. |
CONCENTRATION
CONCENTRATION | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION | NOTE 8 - CONCENTRATION Major customers Customers who accounted for 10% or more of the Company’s revenues for the years ended June 30, 2018 and 2017 respectively and its outstanding balance of accounts receivable as of June 30, 2018 and 2017 respectively are presented as follows: For the year ended As of June 30, 2018 Revenue Percentage of Accounts Percentage of Customer A $ 2,101,458 33 % $ 385,360 51 % Customer B 1,777,631 28 % 1,360 - % Total $ 3,879,089 61 % $ 386,720 51 % For the year ended As of June 30, 2017 Revenue Percentage of Accounts Percentage of Customer A $ 3,084,370 45 % $ - - % Customer B – related party 1,493,090 22 % - - % Total $ 4,577,460 67 % $ - - % All customers are located in the PRC. Major suppliers The suppliers who accounted for 10% or more of the Company’s total purchases (materials and services) for the years ended June 30, 2018 and 2017 respectively and its outstanding balance of accounts payable as of June 30, 2018 and 2017 respectively are presented as follows: For the year ended As of June 30, 2018 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 1,916,551 33 % $ - - % Supplier B - related party 922,446 16 % - - % Supplier C - related party 1,523,770 26 % 248,543 48 % Supplier D 705,939 12 % 175,858 34 % Total $ 5,068,706 87 % $ 424,401 82 % For the year ended As of June 30, 2017 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 3,303,081 51 % $ - - % Total $ 3,303,081 51 % $ - - % All suppliers of the Company are located in the PRC. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: United States of America, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America The Company is registered in the State of Nevada and is subject to the tax laws of United States of America. The Company has shown losses since inception. As a result, it has incurred no income tax. Under normal circumstances, the Internal Revenue Service is authorized to audit income tax returns during a three year period after the returns are filed. In unusual circumstances, the period may be longer. Tax returns for the years ended June 30, 2011 and after were still open to audit as of June 30, 2018. The Company received a penalty assessment from the IRS in the amount of $10,000 for failure to provide information with respect to certain foreign owned US Corporations on Form 5472 - Information Return of a 25% Foreign Owned US Corporation for the tax period ended June 30, 2013. The Company disputed this claim and is working to reverse the penalty. The Company believes that the payment of this penalty is remote and did not accrue this liability as of June 30, 2018. Hong Kong The Well Best and Welly Surplus are registered in Hong Kong and subject to income tax rate of 16.5%. For the years ended June 30, 2018 and 2017, there is no assessable income chargeable to profit tax in Hong Kong. The PRC Lisite Science, Fangguan Photoelectric and Baileqi Electronic are operating in the PRC and is subject to the Corporate Income Tax Law of the People’s Republic of China at a unified income tax rate of 25%. The reconciliation of income tax expense at the U.S. statutory rates of 35% to the Company’s effective tax rate is as follows: For the years ended June 30 2018 2017 U.S. Statutory rate $ 164,787 $ 31,933 Tax rate difference between (35,340 ) (18,474 ) Change in valuation allowance 22,791 34,977 Permanent difference (7,677 ) (18,818 ) Effective tax rate $ 144,561 $ 29,618 The provisions for income taxes are summarized as follows: For the years ended June 30, 2018 2017 Current $ 129,499 $ 29,618 Deferred 15,062 - Total $ 144,561 $ 29,618 The tax effects of temporary differences that give rise to the Company’s net deferred tax assets are as follows: As of June 30, 2018 2017 Net operating loss carryforward $ 65,621 $ 42,830 Revenue cutoff (15,242 ) - Others (10,526 ) 4,716 39,853 47,546 Less valuation allowance (55,095 ) (47,546 ) Deferred tax liabilities $ (15,242 ) $ - As of June 30, 2018, the Company has approximately $374,000 net operating loss carryforwards available in the U.S. and Hong Kong to reduce future taxable income which will begin to expire from 2035. It is more likely than not that the deferred tax assets cannot be utilized in the future because there will not be significant future earnings from the entity which generated the net operating loss. Therefore, the Company recorded a full valuation allowance on its deferred tax assets. The Company has not provided deferred taxes on unremitted earnings attributable to international companies that have been considered to be reinvested indefinitely. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. In accordance with ASC Topic 740, interest associated with unrecognized tax benefits is classified as income tax and penalties are classified in selling, general and administrative expenses in the statements of operations. The extent of the Company’s operations involves dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company has not recorded any adjustments according to Tax Act. As the Company collects and prepares necessary data, and interprets the Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, the Company may make adjustments to the provisional amounts. Those adjustments may materially impact the provision for income taxes and effective tax rate in the period in which the adjustments are made. The accounting for the tax effects of the Tax Act will be completed in 2018. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 - SUBSEQUENT EVENTS The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of Ionix Technology Inc. and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with US GAAP and this 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 consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of cash on hand and cash in bank. Cash equivalents represent investment securities that are short-term, have high credit quality and are highly liquid. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from shipment. Credit is extended based on evaluation of a customer's financial condition, the customer’s credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of each period, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. Based on the evaluation, the Company has determined that no allowance for doubtful accounts is required as of June 30, 2018 and 2017. |
Inventories | Inventories Inventories consist of raw materials and finished goods. Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although we believe that the assumptions we use to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result. |
Advances to suppliers | Advances to suppliers Advances to suppliers represent prepayments for merchandise, which were purchased but had not been received. The balance of the advances to suppliers is reduced and reclassified to inventories when the raw materials are received and pass quality inspection. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. |
Revenue recognition | Revenue recognition In accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. The Company recognizes revenue from the sale of finished products upon delivery to the customer, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes (“VAT”). The Company is subject to VAT which is levied on the majority of the products at the rate of 16% on the invoiced value of sales. |
Related parties and transactions | Related parties and transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it requires their disclosure nonetheless.a |
Income taxes | Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and discloses 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 June 30, 2018 and 2017, the Company did not have any significant unrecognized uncertain tax positions. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), change in unrealized gains (losses) on marketable securities classified as available-for-sale (net of tax), foreign currency translation adjustments, and share of change in other comprehensive income of equity investments one quarter in arrears. |
Earnings (losses) per share | Earnings (losses) per share Basic earnings (losses) per ordinary share is based on the weighted effect of ordinary shares issued and outstanding, and is calculated by dividing net profit by the weighted average shares outstanding during period. Diluted earnings per ordinary share is calculated by dividing net profit by the weighted average number of ordinary shares used in the basic earnings per share calculation plus the number ordinary shares that would be issued assuming exercise or conversion of all potentially dilutive ordinary shares outstanding. |
Foreign currencies translation | Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss). The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: June 30, 2018 June 30, 2017 Balance sheet items, except for equity accounts 6.6166 6.7744 Years Ended June 30, 2018 2017 Items in statements of comprehensive income (loss) and 6.6955 6.7028 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, accounts receivable, inventory, prepayments and other receivables, accounts payable, income tax payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Company has no financial assets or liabilities measured at fair value on a recurring basis. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee's obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee's right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee's initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new standard on its consolidated statements and related disclosures. In May 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients”. The update is to address certain issues identified by the FASB/IASB Joint Transition Resource Group for Revenue Recognition (TRG) in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition, the Board decided to add a project to its technical agenda to improve Topic 606, Revenue from Contracts with Customers, by reducing: 1) the potential for diversity in practice at initial application and 2) the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The amendments in this Update affect entities with transactions included within the scope of Topic 606. The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments to the recognition and measurement provisions of Topic 606 also affect entities with transactions included within the scope of Topic 610, Other Income. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the potential impact of adopting this new standard on its consolidated statements and related disclosures. In September 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This guidance clarifies the presentation requirements of eight specific issues within the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial statements, as the Company’s treatment of the relevant affected items within its consolidated statement of cash flows is consistent with the requirements of this guidance. In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 provides entities the option to reclassify certain "stranded tax effects" resulting from the recent US tax reform from accumulated other comprehensive income ("AOCI") to retained earnings. Under the ASU, reporting entities will select an accounting policy to either reclassify all stranded tax effects caused by tax reform from AOCI to retained earnings, or continue recycling stranded effects (including those caused by tax reform) through earnings in future periods. Further, disclosure of either policy is required in all cases. The reclassification from AOCI to retained earnings is presented in the statement of shareholders equity. The ASU is effective for all entities in fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for public business entities for which financial statements have not yet been issued, and for all other entities for which financial statements have not yet been made available for issuance. Entities have the option to record the reclassification either retrospectively to each period in which the income tax effects of tax reform are recognized, or at the beginning of the annual or interim period in which the amendments are adopted. The Company determined that the adoption of this new standard will have no material impact on its consolidated statements and related disclosures. In March 2018, FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 amends SEC paragraphs in ASC 740 to reflect SEC Staff Accounting Bulletin (SAB) No.118. When the 2017 Tax Cuts and Jobs Act (the "Act") was signed into law, the SEC staff released SAB 118 for applying Topic 740 as it relates to the Act. SAB 118 outlines the approach companies may take if they determine that the necessary information is not available (in reasonable detail) to evaluate, compute, and prepare accounting entries to recognize the effect(s) of the Act by the time the financial statements are required to be filed. Companies may use this approach when the timely determination of some or all of the income tax effect(s) from the Act is incomplete by the due date of the financial statements. SAB 118 also prescribes disclosures that reporting entities must provide in these circumstances. The amendments to the Accounting Standards Codification became effective upon issuance. The Company has conducted a preliminary assessment of its income tax effects of the Act. Additional analysis of the law and the impact to the Company may be performed, if needed, and any impact will be finalized in 2018. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of exchange rates | The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: June 30, 2018 June 30, 2017 Balance sheet items, except for equity accounts 6.6166 6.7744 Years Ended June 30, 2018 2017 Items in statements of comprehensive income (loss) and 6.6955 6.7028 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Taizhou Ionix [Member] | |
Schedule of discontinued operations | The following table shows the result of operations of Taizhou Ionix for the period from July 1 to August 19, 2016 which are included in the income from discontinued operations: For the period from Revenue $ 173,005 Cost of revenue 152,465 Gross profit 20,540 Selling, general and administrative expenses 8,917 Income before provision for income taxes 11,623 Provision for income taxes 2,906 Net income $ 8,717 |
Xinyu Ionix [Member] | |
Schedule of discontinued operations | The following table shows the results of operations of Xinyu Ionix for the period from July 1, 2016 to April 30, 2017 which are included in the income from discontinued operations: For the period from July 1, 2016 to April 30, 2017 Revenue $ 858,357 Cost of revenue 769,418 Gross profit 88,939 Selling, general and administrative expenses 34,427 Income before provision for income taxes 54,512 Provision for income taxes 23,382 Net income $ 31,130 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: June 30, 2018 June 30, 2017 Raw materials $ 105,879 $ 53,163 Finished goods 120,960 - Total inventories $ 226,839 $ 53,163 |
DUE TO RELATED PARTIES (Tables)
DUE TO RELATED PARTIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | Due to related parties consists of the following: June 30, June 30, Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (6) 70,458 - Changyong Yang (2) - 122,820 Xin Sui (3) 1,992 6,992 Baozhen Deng (4) (3,685 ) 8,590 Shenzhen Baileqi S&T (5) - 41,405 $ 212,557 $ 323,599 (1) Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc. (2) Changyong Yang is a stockholder of the Company, who owns approximately 2% of the Company’s outstanding common stock, and the owner of Keenest. (3) Xin Sui is a member of the board of directors of Welly Surplus. (4) Baozhen Deng is a stockholder of the Company, who owns approximately 1.5% of the Company’s outstanding common stock, and the owner of Shenzhen Baileqi S&T. (5) Shenzhen Baileqi S&T is a company established in China and 100% owned by Baozhen Deng, a stockholder of the Company. (6) Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc. |
CONCENTRATION (Tables)
CONCENTRATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentration risk | Customers who accounted for 10% or more of the Company’s revenues for the years ended June 30, 2018 and 2017 respectively and its outstanding balance of accounts receivable as of June 30, 2018 and 2017 respectively are presented as follows: For the year ended As of June 30, 2018 Revenue Percentage of Accounts Percentage of Customer A $ 2,101,458 33 % $ 385,360 51 % Customer B 1,777,631 28 % 1,360 - % Total $ 3,879,089 61 % $ 386,720 51 % For the year ended As of June 30, 2017 Revenue Percentage of Accounts Percentage of Customer A $ 3,084,370 45 % $ - - % Customer B – related party 1,493,090 22 % - - % Total $ 4,577,460 67 % $ - - % Major suppliers The suppliers who accounted for 10% or more of the Company’s total purchases (materials and services) for the years ended June 30, 2018 and 2017 respectively and its outstanding balance of accounts payable as of June 30, 2018 and 2017 respectively are presented as follows: For the year ended As of June 30, 2018 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 1,916,551 33 % $ - - % Supplier B - related party 922,446 16 % - - % Supplier C - related party 1,523,770 26 % 248,543 48 % Supplier D 705,939 12 % 175,858 34 % Total $ 5,068,706 87 % $ 424,401 82 % For the year ended As of June 30, 2017 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 3,303,081 51 % $ - - % Total $ 3,303,081 51 % $ - - % All suppliers of the Company are located in the PRC. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of income tax expense | The reconciliation of income tax expense at the U.S. statutory rates of 35% to the Company’s effective tax rate is as follows: For the years ended June 30 2018 2017 U.S. Statutory rate $ 164,787 $ 31,933 Tax rate difference between (35,340 ) (18,474 ) Change in valuation allowance 22,791 34,977 Permanent difference (7,677 ) (18,818 ) Effective tax rate $ 144,561 $ 29,618 |
Schedule of provisions for income taxes | The provisions for income taxes are summarized as follows: For the years ended June 30, 2018 2017 Current $ 129,499 $ 29,618 Deferred 15,062 - Total $ 144,561 $ 29,618 The tax effects of temporary differences that give rise to the Company’s net deferred tax assets are as follows: As of June 30, 2018 2017 Net operating loss carryforward $ 65,621 $ 42,830 Revenue cutoff (15,242 ) - Others (10,526 ) 4,716 39,853 47,546 Less valuation allowance (55,095 ) (47,546 ) Deferred tax liabilities $ (15,242 ) $ - |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) - HKD ($) | Dec. 29, 2016 | Apr. 30, 2017 | Aug. 19, 2016 |
Taizhou Ionix [Member] | |||
Issued and outstanding stock acquired | 100.00% | ||
Xinyu Ionix [Member] | |||
Issued and outstanding stock acquired | 100.00% | ||
Mr. GuoEn Li [Member] | Taizhou Ionix [Member] | |||
Issued and outstanding stock acquired | 100.00% | ||
Mr. Zhengfu Nan [Member] | Xinyu Ionix [Member] | |||
Issued and outstanding stock acquired | 100.00% | ||
Welly Surplus [Member] | |||
Issued and outstanding stock acquired | 99.999% | ||
Welly Surplus [Member] | Mr. Xin Sui [Member] | |||
Ownership percentage | 0.001% | ||
Welly Surplus [Member] | Hong Kong | |||
Purchase price | $ 99,999 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2018 | Jun. 30, 2017 |
Balance Sheet [Member] | ||
Exchange rate | 6.6166 | 6.7744 |
Income and Cash Flow [Member] | ||
Exchange rate | 6.6955 | 6.7028 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Value added tax rate | 16.00% |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 19, 2016 | Apr. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 39,847 | |||
Taizhou Ionix [Member] | ||||
Revenue | $ 173,005 | |||
Cost of revenue | 152,465 | |||
Gross profit | 20,540 | |||
Selling, general and administrative expenses | 8,917 | |||
Income before provision for income taxes | 11,623 | |||
Provision for income taxes | 2,906 | |||
Net income | $ 8,717 | |||
Xinyu Ionix [Member] | ||||
Revenue | $ 858,357 | |||
Cost of revenue | 769,418 | |||
Gross profit | 88,939 | |||
Selling, general and administrative expenses | 34,427 | |||
Income before provision for income taxes | 54,512 | |||
Provision for income taxes | 23,382 | |||
Net income | $ 31,130 |
DISCONTINUED OPERATIONS (Deta_2
DISCONTINUED OPERATIONS (Details Narrative) | Apr. 30, 2017USD ($) | Apr. 30, 2017CNY (¥) | Aug. 19, 2016USD ($) | Aug. 19, 2016CNY (¥) |
Taizhou Ionix [Member] | ||||
Percentage of equity interests sold | 100.00% | 100.00% | ||
Proceeds from sale of business | $ 5,000 | |||
Loss on sale of business | $ 18,890 | |||
Taizhou Ionix [Member] | CNY [Member] | ||||
Proceeds from sale of business | ¥ | ¥ 30,000 | |||
Taizhou Ionix [Member] | Mr. GuoEn Li [Member] | ||||
Percentage of equity interests sold | 100.00% | 100.00% | ||
Xinyu Ionix [Member] | ||||
Percentage of equity interests sold | 100.00% | 100.00% | ||
Proceeds from sale of business | $ 14 | |||
Loss on sale of business | $ 31,115 | |||
Xinyu Ionix [Member] | CNY [Member] | ||||
Proceeds from sale of business | ¥ | ¥ 100 | |||
Xinyu Ionix [Member] | Mr. Zhengfu Nan [Member] | ||||
Percentage of equity interests sold | 100.00% | 100.00% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 105,879 | $ 53,163 |
Finished goods | 120,960 | |
Total inventories | $ 226,839 | $ 53,163 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 | |
Due to related parties | $ 212,557 | $ 323,599 | |
Ben Wong [Member] | |||
Due to related parties | [1] | 143,792 | 143,792 |
Yubao Liu [Member] | |||
Due to related parties | [2] | 70,458 | |
Changyong Yang [Member] | |||
Due to related parties | [3] | 122,820 | |
Xin Sui [Member] | |||
Due to related parties | [4] | 1,992 | 6,992 |
Baozhen Deng [Member] | |||
Due to related parties | [5] | (3,685) | 8,590 |
Shenzhen Baileqi S&T [Member] | |||
Due to related parties | [6] | $ 41,405 | |
[1] | Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc. | ||
[2] | Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc. | ||
[3] | Changyong Yang is a stockholder of the Company, who owns approximately 2% of the Company's outstanding common stock, and the owner of Keenest. | ||
[4] | Xin Sui is a member of the board of directors of Welly Surplus. | ||
[5] | Baozhen Deng is a stockholder of the Company, who owns approximately 1.5% of the Company's outstanding common stock, and the owner of Shenzhen Baileqi S&T. | ||
[6] | Shenzhen Baileqi S&T is a company established in China and 100% owned by Baozhen Deng, a stockholder of the Company. |
DUE TO RELATED PARTIES (Detai_2
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Sep. 30, 2018 | Apr. 30, 2017 | Aug. 19, 2016 | Jun. 30, 2018 | Jun. 30, 2017 |
Related Party Transaction [Line Items] | |||||
Advances from related parties | $ (113,036) | $ 271,936 | |||
Shenzhen Baileqi S&T [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 1.50% | 1.50% | |||
Due to related parties | $ 248,543 | $ 159,861 | |||
Purchases from related party | 653,494 | 305,750 | |||
Cost of revenue - purchases related party | 653,458 | 305,750 | |||
Manufacturing costs | 268,952 | 153,718 | |||
Cost of revenue - manufacturing related party | 268,952 | 153,718 | |||
Due from related parties | 119,543 | ||||
Shenzhen Baileqi S&T [Member] | Baileqi Electronic [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | 41,405 | $ 41,405 | |||
Sales to related party | $ 493,439 | ||||
Keenest [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 2.00% | 2.00% | |||
Purchases from related party | $ 1,916,551 | $ 3,303,081 | |||
Cost of revenue - purchases related party | 1,916,551 | 3,303,081 | |||
Advances from related parties | 206,194 | ||||
Keenest [Member] | Lisite Science [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales to related party | 1,493,090 | ||||
Changchun Fangguan Electronic Science and Technology Co., Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | 1,523,770 | ||||
Cost of revenue - purchases related party | 1,485,144 | ||||
Yubao Liu [Member] | Well Best [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | 70,458 | ||||
Changyong Yang [Member] | Lisite Science [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | 122,820 | 122,820 | |||
Xin Sui [Member] | Welly Surplus [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | 5,000 | ||||
Baozhen Deng [Member] | Welly Surplus [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | 6,992 | ||||
Baozhen Deng [Member] | Baileqi Electronic [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | $ 8,590 | 8,590 | |||
Baozhen Deng [Member] | Baileqi Electronic [Member] | Subsequent Event [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | $ 3,685 | ||||
Ben Wong [Member] | Well Best [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from related parties | 95,282 | ||||
Xinyu Ionix [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from sale of business | $ 14 | ||||
Taizhou Ionix [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from sale of business | $ 5,000 | ||||
Taizhou Ionix [Member] | Well Best [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from sale of business | $ 5,000 |
CONCENTRATION (Details)
CONCENTRATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 6,422,807 | $ 6,816,908 |
Accounts receivables | 636,413 | 292,265 |
Accounts payable | 264,171 | 96,378 |
Revenue [Member] | ||
Revenues | $ 3,879,089 | $ 4,577,460 |
Concentration risk percentage | 61.00% | 67.00% |
Revenue [Member] | Customer A [Member] | ||
Revenues | $ 2,101,458 | $ 3,084,370 |
Concentration risk percentage | 33.00% | 45.00% |
Revenue [Member] | Customer B [Member] | ||
Revenues | $ 1,777,631 | $ 1,493,090 |
Concentration risk percentage | 28.00% | 22.00% |
Accounts Receivable [Member] | ||
Accounts receivables | $ 386,720 | |
Concentration risk percentage | 51.00% | |
Accounts Receivable [Member] | Customer A [Member] | ||
Accounts receivables | $ 385,360 | |
Concentration risk percentage | 51.00% | |
Accounts Receivable [Member] | Customer B [Member] | ||
Accounts receivables | $ 1,360 | |
Concentration risk percentage | ||
Purchases [Member] | ||
Purchases | $ 5,068,706 | $ 3,303,081 |
Concentration risk percentage | 87.00% | 51.00% |
Purchases [Member] | Supplier A - related party [Member] | ||
Purchases | $ 1,916,551 | $ 3,303,081 |
Concentration risk percentage | 33.00% | 51.00% |
Purchases [Member] | Supplier B - related party [Member] | ||
Purchases | $ 922,446 | |
Concentration risk percentage | 16.00% | |
Purchases [Member] | Supplier C - related party [Member] | ||
Purchases | $ 1,523,770 | |
Concentration risk percentage | 26.00% | |
Purchases [Member] | Supplier D [Member] | ||
Purchases | $ 705,939 | |
Concentration risk percentage | 12.00% | |
Accounts Payable [Member] | ||
Accounts payable | $ 424,401 | |
Concentration risk percentage | 82.00% | |
Accounts Payable [Member] | Supplier A - related party [Member] | ||
Accounts payable | ||
Concentration risk percentage | ||
Accounts Payable [Member] | Supplier B - related party [Member] | ||
Accounts payable | ||
Concentration risk percentage | ||
Accounts Payable [Member] | Supplier C - related party [Member] | ||
Accounts payable | $ 248,543 | |
Concentration risk percentage | 48.00% | |
Accounts Payable [Member] | Supplier D [Member] | ||
Accounts payable | $ 175,858 | |
Concentration risk percentage | 34.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
U.S. Statutory rate | $ 164,787 | $ 31,933 |
Tax rate difference between foreign operation and U.S. | (35,340) | (18,474) |
Change in valuation allowance | 22,791 | 34,977 |
Permanent difference | (7,677) | (18,818) |
Total | $ 144,561 | $ 29,618 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 129,499 | $ 29,618 |
Deferred | 15,062 | |
Total | $ 144,561 | $ 29,618 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 65,621 | $ 42,830 |
Revenue cutoff | (15,242) | |
Others | (10,526) | 4,716 |
Deferred tax assets, gross | 39,853 | 47,546 |
Less valuation allowance | (55,095) | (47,546) |
Deferred tax liabilities | $ (15,242) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Penalty assessment | $ 10,000 |
Statutory rate | 35.00% |
Revised statutory rate | 21.00% |
Operating loss carryforwards | $ 374,000 |
Expiration year | 2,035 |
Description of income tax rate on foreign subsidiary | <font style="font: 10pt Times New Roman, Times, Serif">The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings.</font></p>" id="sjs-B8"><p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings.</font></p> |
Internal Revenue Service (IRS) [Member] | |
Foreign income tax rate | 25.00% |
State Administration of Taxation, China [Member] | |
Foreign income tax rate | 25.00% |
Inland Revenue, Hong Kong [Member] | |
Foreign income tax rate | 16.50% |