Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Apr. 28, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Natural Resources Corp | |
Entity Central Index Key | 1586513 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 51,700,000 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-14 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | ||
Current Assets | ||||
Cash | $15,450 | $126,648 | ||
Trade receivable, net | 2,670,622 | 2,516,567 | ||
Inventory | 503,235 | 628,746 | ||
Total Current assets | 3,189,307 | 3,271,961 | ||
Other Assets | ||||
Deposits | 68,210 | 68,210 | ||
Prepaid assets | 26,756 | 25,431 | ||
Other receivables | 2,003 | 367,285 | ||
Due from related parties | 29,559 | 0 | ||
Due from directors | 178 | 0 | ||
Total Other assets | 126,706 | 460,926 | ||
Property, Plant and Equipment, net | 1,708,444 | 1,750,386 | ||
Intangible assets | 9,913,979 | 10,281,168 | ||
Total Assets | 14,938,436 | 15,764,441 | ||
Current Liabilities | ||||
Bank overdraft | 9,347 | 28,749 | ||
Current portion of debt | 4,169,472 | 4,912,397 | ||
Trade payable | 647,984 | 807,017 | ||
Accrued expenses | 104,039 | 40,296 | ||
Due to related parties | 340,690 | 323,694 | ||
Due to directors | 152,631 | 0 | ||
Deposits payable | 75,292 | 184,705 | ||
Current portion of capital leases obligations | 60,995 | 68,463 | ||
Provision for income taxes | 359,144 | 360,298 | ||
Total current liabilities | 5,919,594 | 6,725,619 | ||
Non- current liabilities | ||||
Debt, net of current portion | 1,715,842 | 1,715,556 | ||
Capital leases obligations, net of current portion | 7,983 | 8,760 | ||
Deferred income taxes liabilities | 114,861 | 114,861 | ||
Total Non- current liabilities | 1,838,686 | 1,839,177 | ||
Total liabilities | 7,758,280 | 8,564,796 | ||
Stockholders' Equity | ||||
Common stock, par value $.0001;100,000,000 shares authorized, 51,100,000, 50,000,000 and 50,000,000 shares issued and outstanding as of September 30, 2014 and June 30, 2014 | 5,110 | [1] | 5,000 | [1] |
Additional paid-in capital | 1,584,566 | [1] | 1,585,837 | [1] |
Retained earnings | 5,643,647 | 5,661,975 | ||
Accumulated other comprehensive loss | -53,167 | -53,167 | ||
Total Stockholders' Equity | 7,180,156 | 7,199,645 | ||
Total liabilities and Stockholders' Equity | $14,938,436 | $15,764,441 | ||
[1] | The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS [Parenthetical] (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 51,100,000 | 50,000,000 |
Common stock, shares, outstanding | 51,100,000 | 50,000,000 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | |||
Revenue | ||||
Sales of goods | $2,624,324 | $3,796,705 | ||
Total revenues | 2,624,324 | 3,796,705 | ||
Cost of revenues | 1,865,439 | 4,370,363 | ||
Gross Profit | 758,885 | -573,658 | ||
Operating Expenses | ||||
General and administrative | 706,516 | 381,501 | ||
Total operating expenses | 706,516 | 381,501 | ||
Operating income | 52,369 | -955,159 | ||
Other income (expense) | ||||
Finance costs | -77,746 | -97,146 | ||
Gain on foreign currency exchange | -11,107 | 59,280 | ||
Other income | 18,155 | 10,501 | ||
Total other loss/expense | -70,698 | -27,365 | ||
Income before income taxes | -18,329 | -982,524 | ||
Provision for income taxes | 0 | 0 | ||
Net income | ($18,329) | ($982,524) | ||
Net loss per share of common stock: | ||||
Basic & diluted (in dollars per share) | $0 | ($0.02) | ||
Weighted average number of shares outstanding - | ||||
Basic & diluted (in shares) | 50,585,870 | [1] | 50,000,000 | [1] |
[1] | The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Activities: | ||
Net Loss | ($18,329) | ($982,524) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation | 41,942 | 41,964 |
Amortization | 367,189 | |
Changes in operating assets and liabilities: | ||
Trade receivable | -154,055 | 481,242 |
Prepaid assets | -1,325 | 28,529 |
Inventory | 125,511 | -179,583 |
Due from related parties | -29,559 | -16,673 |
Due from directors | -178 | -83,516 |
Deposits and other current assets | 365,282 | -18,663 |
Trade payable and accrued expenses | -96,561 | 513,174 |
Due to related parties | 16,996 | 9,819 |
Due to directors | 152,631 | 2,913 |
Deposits payable | -109,412 | -141,289 |
Taxes payable | -1,154 | -29,741 |
Net cash provided by (used in) operating activities | 658,978 | -374,348 |
Financing Activities: | ||
Purchase of property, plant and equipment | 0 | -1,140 |
Net cash used in investing activities | 0 | -1,140 |
Financing Activities: | ||
Proceeds from paid-in capital | ||
Bank overdraft | -19,402 | 132 |
Proceeds from debt | 883,155 | 4,892,398 |
Repayment on debt | -1,625,794 | -4,236,433 |
Payments on capital lease | -8,245 | -29,375 |
Common shares issued during the merger | 110 | 0 |
Net cash provided by (used in) financing activities | -770,176 | 626,722 |
Effects of exchange rate changes on cash | 0 | -35,028 |
NET INCREASE (DECREASE) IN CASH | -111,198 | 216,206 |
Cash at beginning of period | 126,648 | 886,808 |
Cash at end of period | 15,450 | 1,103,014 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 83,113 | 80,539 |
Cash paid for taxes | $1,154 | $2,263 |
CONDENSED_STATEMENTS_OF_COMPRE
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Net loss | ($18,329) | ($982,524) |
Other Comprehensive loss | ||
Foreign currency translation adjustment | 0 | -35,030 |
Comprehensive loss | ($18,329) | ($1,017,554) |
Description_of_business_and_su
Description of business and summary of significant accounting policies | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1 - Description of business and summary of significant accounting policies | |||||||||
Description of business | ||||||||||
Natural Resources Corporation, a Delaware corporation (the “Company”), was incorporated in the State of Delaware in July 2013, and was formerly known as Plum Run Acquisition Corporation (“Plum Run” or “Plum Run Acquisition”). | ||||||||||
In March 2014, the Company implemented a change of control by issuing shares to new shareholders, redeeming shares from existing shareholders, electing new offices and directors and accepting the resignations of its then existing officers and directors. In connection with the change of control, the Company changed its name from Plum Run Acquisition Corporation to Natural Resources Corporation. | ||||||||||
On August 12, 2014, the Company acquired, M-Power Food Industries Private Limited, a company incorporated in Singapore (“M-Power Industries”), in a stock-for-stock transaction (the “Acquisition”). The purpose of the Acquisition was to facilitate and prepare the Company for a registration statement and/or public offering of securities. M-Power Industries is a rapidly growing producer and wholesale distributer of dairy based ingredients and milk powder products to global food and beverage manufacturers. | ||||||||||
Basis of Presentation | ||||||||||
Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of our financial statements requires us to make estimates and assumptions that affect, among other areas, the reported amounts of trade receivable reserves and inventory reserves, impairment of long-lived assets, and recoverability of deferred tax assets. These estimates and assumptions also impact revenues, expenses and the disclosures in our condensed financial statements and the accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. All amounts are presented in U.S. dollars, unless otherwise noted. | ||||||||||
The Company’s unaudited condensed financial statements are expressed in U.S. Dollars and are presented in accordance with U.S. GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed interim financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results of operations for the interim periods presented. However, the results of operations for these interim periods are not necessarily indicative of the results that may be expected for the year ended June 30, 2015. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes thereto included in the Company’s registration statement on Form S-1. The Company’s fiscal year end is June 30. | ||||||||||
Summary of significant accounting policies | ||||||||||
Cash and cash equivalents – We classify as cash and cash equivalents time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase. The Company has no cash equivalents as of September 30, 2014 and June 30, 2014. | ||||||||||
Trade Receivables – We record trade receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts, to reflect any anticipated loss and is charged to the provision for doubtful accounts, included in other operating expenses in the statements of operations. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our customers. The Company recognized provision of doubtful debts of $0 and $0 for the three months period ended September 30, 2014 and for the fiscal years ended June 30, 2014. | ||||||||||
Concentration of Credit Risk – We have a diversified, international customer base. We control credit risk related to accounts receivables through credit approvals, credit limits and monitoring procedures. Credit risk with respect to receivables is concentrated in the food industry sector. | ||||||||||
During the three months period ended September 30, 2014 and 2013 approximately 81% and 74% of the Company’s revenues were from two and three major customers, respectively, which constituted $1,943,039 and $2,802,340 of the Company’s revenues. As of the three months period ended September 30, 2014, the accounts receivables of these two customers are $684,797. As of the years ended June 30, 2014 the accounts receivables of these three customers were $399,490. | ||||||||||
During the three months period ended September 30, 2014 and 2013 approximately 85% and 96% of the Company’s purchases were from three and two major vendors, respectively, which constituted $1,307,155 and $6,189,623 of the Company’s purchases. As of the three months period ended September 30, 2014, the accounts payables of these three vendors are $168,420. As of the years ended June 30, 2014, the amount owed to these three suppliers was $44,600. | ||||||||||
Inventory – Inventory, consisting of raw materials, is stated at the lower of cost, using the first-in, first-out method (“FIFO”) to determine cost. If the cost of the inventory exceeds market value, provisions are made currently for the difference between the cost and the market value. We monitor inventory cost compared to selling price less margin in order to determine if a lower of cost or market reserve is necessary. | ||||||||||
Property, plant and equipment – Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded using the straight-line method over the estimated useful lives of our assets, which are reviewed periodically. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Capital lease are depreciated over the shorter of the lease term or the estimated useful life of the improvements. | ||||||||||
Fair Value of Financial Instruments | ||||||||||
In accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement and Disclosure, the Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Company bases fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||
When observable market prices and data are not readily available, significant management judgment often is necessary to estimate fair value. In those cases, different assumptions could result in significant changes in valuation and may not be realize in an actual sale. Additionally, there may be inherent weaknesses in any calculation technique and changes in the underlying assumptions used, including discount rates, and expected cash flows could significantly affect the results of current or future values. | ||||||||||
For certain financial instruments, including accounts receivable, accounts payable, accrued expenses and capital lease, the carrying amounts approximate fair value due to their relatively short maturities. In the case of the notes payable, the interest rate on the notes approximates the market rate of interest for similar borrowings. Consequently the carrying value of the notes payable also approximates the fair value. It is not practicable to estimate the fair value of the related party notes payable due to the relationship of the counter party. | ||||||||||
All assets except for intangible assets of the Company are considered Level 1 due to short term maturity. | ||||||||||
The Company adopted ASC 820-10 (formerly SFAS 157, “Fair Value Measurements”) on January 1, 2008. ASC 820-10 defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | ||||||||||
· | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; | |||||||||
· | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments; and | |||||||||
· | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. | |||||||||
The Company used Level 2 inputs for its valuation methodology for the milk brands. | ||||||||||
Carrying Value | Fair Value Measurement at | |||||||||
As of | September 30, 2014 | |||||||||
September 30, | Using Fair Value Hierarchy | |||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||
Intangible Assets - | ||||||||||
Milk Brands | 9,913,979 | - | 9,913,979 | - | ||||||
Total | 9,913,979 | - | 9,913,979 | - | ||||||
Intangible assets – Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in statement of comprehensive income in the year in which the expenditure is incurred. | ||||||||||
For intangible assets acquired in a non-monetary exchange (see Note 6), the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values, unless the values of neither the assets received nor the assets transferred are determinable within reasonable limits, in which case the assets received are measured (by a third party) based on the carrying values of the assets transferred. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. An estimate of fair value can be affected by many assumptions that require significant judgment. For example, the income approach generally requires assumptions related to the appropriate business model to be used to estimate cash flows, total addressable market, pricing and share forecasts, competition, technology obsolescence, future tax rates and discount rates. Our estimate of the fair value of certain assets may differ materially from that determined by others who use different assumptions or utilize different business models. New information may arise in the future that affects our fair value estimates and could result in adjustments to our estimates in the future, which could have an adverse impact on our results of operations. | ||||||||||
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method are reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite useful lives is recognised in statement of comprehensive income in the expense category consistent with the function of the intangible asset. | ||||||||||
Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, or more frequently if the events and circumstances indicate that the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. | ||||||||||
Gains or losses arising from de-recognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised. | ||||||||||
Brands – The brands were acquired from third party. The Management estimate the useful life of the Brands is 7 years. Management believes that over the period under the contract, the brands are generating net cash inflows for the Company. | ||||||||||
The cost of the brands will be amortised over the period of 7 years. | ||||||||||
Long lived assets impairment – We assess the recoverability of the carrying value of long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We have the option of performing a qualitative assessment when assessing recoverability. We may also evaluate the recoverability of such assets based upon estimates of the undiscounted cash flows from such assets. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss would be recognized for the difference between the fair value and the carrying amount. We did not incur any impairment charges during the periods presented as management determined that its long lived assets were not impaired. | ||||||||||
Income taxes – We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amount of our assets and liabilities. We monitor our deferred tax assets and evaluate the need for a valuation allowance based on the estimate of the amount of such deferred tax assets that we believe do not meet the more-likely-than-not recognition criteria. We follow guidelines in each tax jurisdiction regarding the recoverability of any tax assets recorded on the balance sheets and provide necessary valuation allowances as required. We review our deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. We also evaluate whether we have any uncertain tax positions and would record a reserve if we believe it is more-likely-than-not our position would not prevail with the applicable tax authorities. Penalties and interest, if any, are included in other expense on the statements of operations. Deferred tax assets and liabilities may be netted by jurisdiction, typically domestic and foreign, within the current and long-term classifications on the balance sheets. | ||||||||||
Reclassifications- Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. | ||||||||||
Revenue recognition – According to ASC 605, the Company recognizes revenue when persuasive evidence of an arrangement exists, the service is performed or delivery has occurred, the price is fixed or determinable, and collectability is probable. | ||||||||||
For products shipped directly from the Company’s warehouse or manufactured by the Company in Singapore and then shipped to customer, both domestic and oversea, revenue is recognized at time of shipment as it is determined that ownership has passed to the customer at shipment and revenue is recognized. Amount billed to customers for freight and shipping is classified as revenue. | ||||||||||
Under normal commercial situations there will be no cancellation of orders allowed once products are produced. Under circumstances of quality dispute or any quality related issues of the products, the Company will accept sales returns from the customer upon verification by the Company for the quality dispute. This is not a normal situation and will be subjected to the acceptance of quality dispute by the Company in such instance. | ||||||||||
For domestic customers, if the customer rejects the purchase order after the manufacturing process has begun, the Company invoices the customer for any manufacturing costs incurred and revenue is recognized. The Company will fully invoice and recognize as revenue for orders rejected after time of shipment, provided all other revenue recognition criteria are met. | ||||||||||
For overseas customer, the Company will check customer’s credit risk through export credit insurance and insure products through export credit insurance. If the overseas customer rejects the order during the manufacturing process, the Company will claim the export credit insurance. The Company will also claim the export credit insurance for orders rejected after the time of shipment. | ||||||||||
Foreign currency translation – The Company’s reporting currency is the U.S. dollar. The Company’s functional currency is the local currency in the Singapore, the Singapore Dollar (SGD). The financial statements of the Company are translated into United States dollars in accordance with ASC 830, FOREIGN CURRENCY MATTERS, using year-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses and historical rates for equity. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. For the three months period ended September 30, 2014, the cumulative translation adjustment of $53,167 was classified as an item accumulated of other comprehensive loss in the stockholders’ equity section of statement of financial position. For the years ended June 30, 2014, the cumulative translation adjustment of $53,167 was classified as an item accumulated of other comprehensive loss in the stockholders’ equity section of statement of financial position. For the three months period ended September 30, 2014, the foreign currency translation adjustment to accumulative other comprehensive loss was $53,167. For the years ended June 30, 2014, the foreign currency translation adjustment to accumulate other comprehensive loss was $53,167. | ||||||||||
Comprehensive income (loss) – Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, Accounting Standards Codification (ASC) 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For the periods presented, the Company’s comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments and is presented in the statements of comprehensive loss. We had translation adjustment to other comprehensive loss of $ 0 and $ 35,030 for the periods ended September 30, 2014 and 2013, respectively. | ||||||||||
Earnings per share – We calculate basic earnings per share by dividing our net income by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is not anti-dilutive. The Company had no dilutive securities as of and for the three months ended September 30, 2014. During the three month periods ended September 30, 2014 and 2013, basic earnings per share was $0.00 and $0.02, respectively. As of the years ended June 30, 2014 basic earnings per share was $0.01. | ||||||||||
Reverse Merger Accounting – For accounting purposes, the stock-for-stock transaction, should be treated as a reverse acquisition and recapitalization of M-Power Food Industries Private Limited (accounting acquirer) because, prior to the transaction, Natural Resources Corporation (the “Company”) was a non-operating public shell and, subsequent to the transaction, 200,000,000 shares and interests of common stock of M-Power Industries (all of which were held by M-Power Investments) were exchanged for and converted into, 50,000,000 shares of common stock of the Company. Accordingly, for accounting purposes, the transaction was treated as a reverse acquisition and recapitalization in accordance with US GAAP. The historical financial statements will be presented in the consolidated financial statements of M-Power Food Industries Private Limited. The common stock and the corresponding capital amounts of the Company pre-merger will be retroactively restated as capital stock shares reflecting the exchange ratio in the merger. | ||||||||||
Fiscal Year End – Following the exchange transaction, the Company elected to adopt the June 30 year end of M-Power Food Industries Private Limited, the accounting acquirer. | ||||||||||
Adopted Accounting Pronouncements | ||||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company adopted ASU 2014-15 on the Company’s financial statement presentation and disclosures. | ||||||||||
Recently issued accounting pronouncements | ||||||||||
Effective January 2012, the Company adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 represents the converged guidance of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on fair value measurement. A variety of measures are included in the update intended to either clarify existing fair value measurement requirements, change particular principles requirements for measuring fair value or for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend to change the application of existing requirements under Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements. ASU 2011-04 was effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements and related disclosures. | ||||||||||
Effective January 2012, the Company adopted ASU No. 2011-05, Presentation of Comprehensive Income (ASU 2011-05). ASU 2011-05 is intended to increase the prominence of items reported in other comprehensive income and to facilitate convergence of accounting guidance in this area with that of the IASB. The amendments require that all non-owner changes in shareholders’ equity be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items. | ||||||||||
Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12). ASU 2011-12 defers the provisions of ASU 2011-05 that require the presentation of reclassification adjustments on the face of both the statement of income and statement of other comprehensive income. Amendments under ASU 2011-05 that were not deferred under ASU 2011-12 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements and related disclosures | ||||||||||
In July 2012, the FASB issued guidance on testing for indefinite-lived intangible assets for impairment. The new guidance allows an entity to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to first use subjective criteria to determine if an intangible asset has lost value. The amendments to U.S. GAAP will be effective for fiscal years starting after September 15, 2012. The adoption of this update did not have a material impact on the financial statements and related disclosures. | ||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The adoption of this update did not have a material impact on the financial statements and related disclosures. | ||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard beginning January 1, 2017. | ||||||||||
Other recent pronouncements issued by FASB (including its Emerging Task Force), and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. | ||||||||||
Accounts_receivables
Accounts receivables | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 2 – Accounts receivables | |||||||
Accounts receivable consisted of the following as of September 30, 2014 and June 30, 2014: | ||||||||
September 30, 2014 | June 30, | |||||||
2014 | ||||||||
(Unaudited) | (Audited) | |||||||
Accounts receivable-sales of goods | $ | 2,670,622 | $ | 2,516,567 | ||||
Total accounts receivable | $ | 2,670,622 | $ | 2,516,567 | ||||
*See Note 6 for the non-monetary exchange. | ||||||||
Inventories
Inventories | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | Note 3 – Inventories | |||||||
Inventories consisted of the following as of September 30, 2014 and June 30, 2014: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Finished goods | $ | - | $ | 40,240 | ||||
Raw materials | 503,235 | 588,506 | ||||||
Total inventories | $ | 503,235 | $ | 628,746 | ||||
Financial_instruments
Financial instruments | 3 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | |
Financial Instruments Disclosure [Text Block] | Note 4 – Financial instruments |
The carrying amounts of our financial instruments, including cash, trade receivables, trade payable, and accrued expenses approximate fair value due to the short-term nature of these instruments or their stated rates approximating market rates. Our debt carries variable interest rates, which are reset monthly, or is relatively short term. Consequently, the carrying amounts of these financial instruments approximate fair value. We do not have any assets or liabilities that are measured at fair value on a recurring basis. | |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Note 5 — Property, Plant and Equipment | |||||||||
Property, plant and equipment consist of the following: | ||||||||||
September 30, | June 30, | Useful Life | ||||||||
2014 | 2014 | (Years) | ||||||||
(Unaudited) | (Audited) | |||||||||
Motor vehicles | $ | 78,881 | $ | 78,881 | 5 – 7 | |||||
Plant and equipment | 436,408 | 436,408 | 10 – 15 | |||||||
Furniture and equipment | 245,980 | 245,980 | 3 – 10 | |||||||
Leasehold improvements | 1,674,834 | 1,674,834 | 19 | |||||||
Less: accumulated depreciation | -727,659 | -685,717 | ||||||||
$ | 1,708,444 | $ | 1,750,386 | |||||||
Depreciation expense for the three months ended September 30, 2014 was $41,942. Depreciation expense for the three months ended September 30, 2013 was $41,963. | ||||||||||
Intangible_asset
Intangible asset | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Intangible Assets Disclosure [Text Block] | Note 6 – Intangible asset | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Intangible asset – Milk Brands | $ | 10,281,168 | $ | 10,281,168 | ||||
Accumulated amortization | -367,189 | - | ||||||
Total intangible asset | $ | 9,913,979 | $ | 10,281,168 | ||||
Intangible assets comprise of cost of purchase of milk brands from a third party. | ||||||||
The Company assigned the account receivable of $10,281,168 in June 2014 as a form of consideration to acquire milk brands. The Company had entered a Deed of Assignment among the Customer and the Seller on June 25, 2014. See the fair value valuation disclosure in note 1. | ||||||||
The intangible asset will be amortized for 7 years commencing in July 2014 by straight line method. The amortization expense for the three month ended September 30, 2014 was $367,189. There was no amortization for the three month period ended September 30, 2013. | ||||||||
Debt
Debt | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure [Text Block] | Note 7 – Debt | |||||||
Debt consists of the following: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Term loan 1 | $ | 295,061 | $ | 293,460 | ||||
Term loan 2 | 295,096 | 293,495 | ||||||
Term loan 3 | 232,392 | 234,551 | ||||||
Term loan 4 | 823,139 | 825,267 | ||||||
Term loan 5 | 282,128 | 280,516 | ||||||
Term loan 6 | 48,831 | 68,884 | ||||||
Term loan 7 | 1,161,962 | 1,256,744 | ||||||
Term loan 8 | - | - | ||||||
Term loan 9 | - | - | ||||||
Trust receipts | 2,746,705 | 3,375,036 | ||||||
Total debt | 5,885,314 | 6,627,953 | ||||||
Less: current portion | -4,169,472 | -4,912,397 | ||||||
Long-term portion of debt | $ | 1,715,842 | $ | 1,715,556 | ||||
Term Loans | ||||||||
All term loans were originally denominated in SGD currency. | ||||||||
Term loan 1 is repayable by 96 months with monthly instalment of $4,207 for the first year. Interest rate for the first year is fixed at 1.88% per annum; second year is fixed at 1.98% per annum and for the third year is fixed at Singapore Lending Rate (SLR) at 3.25% per annum. Thereafter, interest rate is at 0.75% above Singapore Lending Rate (SLR). | ||||||||
Term loan 2 is repayable by 96 months with monthly instalment of $4,207 for the first year. Interest rate for the first year is fixed at 1.88% per annum; second year is fixed at 1.98% per annum and for the third year is fixed at Singapore Lending Rate (SLR) at 3.25% per annum. Thereafter, interest rate is at 0.25% above Singapore Lending Rate (SLR). | ||||||||
Term loan 3 is repayable by 96 months with monthly instalment of $3,362 for the first year. Interest rate for the first year is fixed at 1.88% per annum; second year is fixed at 1.98% per annum and for the third year is fixed at Singapore Lending Rate (SLR) at 3.25% per annum. Thereafter, interest rate is at 0.25% above Singapore Lending Rate (SLR). | ||||||||
Term loan 4 is repayable by 168 months with monthly instalment of $6,222. Interest rate for the first year is fixed at 1.68% per annum; second year is fixed at 1.98% per annum and for the third year is fixed at Singapore Lending Rate (SLR) at 3.25% per annum. Thereafter, interest rate is at 0.2% above Singapore Lending Rate (SLR). | ||||||||
Term loan 5 is repayable by 96 months with monthly instalment of $3,790. Interest rate is fixed at 1.98% per annum for the first year; second year and third year are fixed at Singapore Lending Rate (SLR) at 3.25% per annum. Thereafter, interest rate is at 0.25% above Singapore Lending Rate (SLR). | ||||||||
Term loan 6 is repayable by 24 monthly equal instalments of $10,741. Interest rate per annum is chargeable at 7.50%. | ||||||||
Term loan 7 is repayable by 15 monthly instalments or by such other instalments as may be specified or fixed by the Bank. The interest rate is at 2% per annum above the Bank’s Prime Lending Rate. | ||||||||
Term loan 8 is repayable by 48 monthly instalments of such amount will be notified by the Bank, the company or by such other instalments as may be fixed by Spring and the Bank from time to time. The interest rate is chargeable at 5.00% by such other instalments as may be specified or fixed by the Spring and the Bank from time to time. The loan was settled in full during the financial year. | ||||||||
Term loan 9 is business loan of $152,122 and is repayable by 48 monthly equal instalments of $3,503. Interest rate per annum is chargeable at 5.00%. The loan was settled in full during the financial year. | ||||||||
Trust Receipts | ||||||||
Trust receipts are originally denominated in USD currency. | ||||||||
The Company renewed its trust receipt agreement with Standard Chartered Bank (the “Bank”) in February of 2013. | ||||||||
The interest rate of trust receipts per annum is chargeable at 0.50% above the interest at SBFR (local transactions) and 2.75%) above the interest of SBFR (foreign transactions). The term of the settlement is 90 days from the release of merchandise to the Company from the Bank. | ||||||||
The term loan and trust receipts are collateralized by way of: | ||||||||
a) | Properties of the Company; | |||||||
b) | Properties of Directors; | |||||||
c) | Fixed deposits of the Directors; and | |||||||
d) | Joint and several guarantees by the Directors | |||||||
Future contractual maturities of debt are as follows, as of September 30, 2014: | ||||||||
Three months ending September 30, | ||||||||
2015 | $ | 4,169,472 | ||||||
2016 | 207,975 | |||||||
2017 | 214,086 | |||||||
2018 | 221,701 | |||||||
2019 | 229,586 | |||||||
Thereafter | 842,494 | |||||||
$ | 5,885,314 | |||||||
Interest expense of $46,329 and $52,656 was included in finance costs in the statements of operations for the three months period ended September 30, 2014 and 2013, respectively. | ||||||||
During the three months period ended September 30, 2014, the Company had a net total of $11,107 loss on foreign currency exchange none of which resulted from trust receipts or term loans. During the three months period ended September 30, 2013, the Company had a net total of $59,280 gain on foreign currency exchange none of which resulted from trust receipts or term loans. | ||||||||
Capital_Leases
Capital Leases | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Leases, Capital [Abstract] | ||||||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | Note 8 – Capital Leases | |||||||
The Company has acquired assets under the provisions of long-term leases expiring through June 2016. For financial reporting purposes, minimum lease payments relating to these assets have been capitalized. | ||||||||
The assets under capital lease have cost and accumulated amortization as follows: | ||||||||
September 30, 2014 | June 30, 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Motor vehicles | $ | 78,881 | $ | 78,881 | ||||
Plant and equipment | 90,127 | 90,127 | ||||||
Furniture and equipment | 235,349 | 235,349 | ||||||
Less: accumulated depreciation | -99,869 | -88,910 | ||||||
Total: | $ | 304,488 | $ | 315,447 | ||||
Maturities of capital lease obligations as of June 30, 2014 are as follows: | ||||||||
2015 | $ | 75,722 | ||||||
2016 | 9,935 | |||||||
Total minimum lease payments | 85,657 | |||||||
Amount representing interest | -8,434 | |||||||
Present value of minimum lease payments | 77,223 | |||||||
Less: current portion | -68,463 | |||||||
Total: | $ | 8,760 | ||||||
Interest expense related to capital lease was $928 and $2,696 for the three months period ended September 30, 2014 and 2013, respectively. | ||||||||
Stockholders_equity
Stockholders' equity | 3 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 9 – Stockholders’ equity |
Common stock – We have authorized and issued 200,000,000 shares of Common Stock at par value of Singapore dollar $0.01, or US Dollar $0.008. The holders of the issued and outstanding shares Common Stock are entitled to one vote per share on any matter to be voted on by the stockholders of the Company and are entitled to receive any dividends declared. | |
As a result of a reverse acquisition on August 12, 2014 M-Power Food Industries Pte. Ltd received 50,000,000 shares of the Company’s common stock. Such shares were accounted for as part of recapitalization shares. Previous shareholders of the Company held 1,100,000 shares of the Company’s common stock. | |
Operating_leases
Operating leases | 3 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases, Operating [Abstract] | |||||
Operating Leases of Lessor Disclosure [Text Block] | Note 10 - Operating leases | ||||
We lease certain office space under non-cancellable operating lease agreements. The leases typically run for a period of three years, with an option to renew the lease after that date. | |||||
Future minimum rental payments required under all leases that have remaining non-cancellable lease terms in excess of one year as of June 30, 2014 are as follows: | |||||
Year Ending June 30, | |||||
2015 | $ | 305,171 | |||
2016 | 318,695 | ||||
2017 | 209,912 | ||||
2018 | 18,000 | ||||
$ | 851,778 | ||||
Rent expense was $74,053 and $93,054 for the three months period ended September 30, 2014 and 2013. | |||||
Income_taxes
Income taxes | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | Note 11 – Income taxes | |||||||
The domestic statutory income tax rate was approximately 17.0% in the period as of and for the three months ended September 30, 2014, as of and for the years ended June 30, 2014. The reconciliation of the income tax expense from continuing operations expected based on domestic statutory income tax rates to the expense for income taxes included in the statements of operations is as follows: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Income (loss) before income tax | $ | -18,329 | $ | 1,498,485 | ||||
Expenses not deductible for tax purposes | 438,673 | 307,761 | ||||||
Tax exemption and allowances | -249,500 | -247,846 | ||||||
Taxable income | 170,844 | 1,558,400 | ||||||
Tax of 17% (estimated Singapore Statutory Rate) | 29,044 | 264,928 | ||||||
Tax rebate on net tax payable | -23,971 | -23,809 | ||||||
Permanent difference | -5,073 | 99,094 | ||||||
Tax liability per tax year | - | 340,213 | ||||||
Under payment | - | 1,618 | ||||||
Under provision | - | 18,467 | ||||||
Total income tax liability | - | 360,298 | ||||||
Tax liability per tax year | - | 340,213 | ||||||
Under provision | - | 18,467 | ||||||
Changes in deferred tax liability | - | 12,323 | ||||||
Income tax expense | $ | - | $ | 371,003 | ||||
The components of net deferred tax liabilities are as follows: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Deferred tax liabilities | $ | 114,861 | $ | 114,861 | ||||
Under current accounting standards, we must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We measure the tax benefits recognized in the financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to our subjective assumptions and judgments which can materially affect amounts recognized in our balance sheets and statements of income. Our assessment of tax positions as of September 30, 2014 and June 30, 2014, determined that there were no material uncertain tax positions. | ||||||||
Commitments_and_contingencies
Commitments and contingencies | 3 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 12 – Commitments and contingencies |
Credit Risk – Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The major classes of financial assets of the Company are cash and trade receivables. For trade receivables, the Company adopts the policy of dealing only with customers of appropriate credit history. The Company does not require collateral with respect to trade receivables. For other financial assets, the Company adopts the policy of dealing only with high credit quality counterparties. | |
For the management of credit risk, Company has purchased credit risk insurance in order to ensure the recoverability of its debts. As at the balance sheet date, approximately 90% of the trade receivables were insured. The coverage of 90% was effective as of September 30, 2014 and June 30, 2014. | |
At the balance sheet date, the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognized in the balance sheet. | |
Liquidity Risk – Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Company’s operations and to mitigate the effects of fluctuations in cash flows. | |
Interest Rate Risk – The Company is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than its functional currency. The currency giving rise to this risk is primarily the U.S. Dollar. | |
The Company does not have a hedging policy on its foreign currency exposure. | |
From time to time, we are involved in legal proceedings arising in the ordinary course of our business. We are currently not a party to any pending legal proceedings and no such actions by, or to the best of our knowledge, against us have been threatened. | |
Relatedparty_transactions
Related-party transactions | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | Note 13 — Related-party transactions | |||||||
a) Related parties: | ||||||||
Related Parties | Relationship with the Company | |||||||
M-Power Development Ptd Ltd (MPD) | Asset holding management company | |||||||
M-Power Investment Pte Ltd (MPI) | Holding company | |||||||
Perry Holzgraf Esculier | Stockholder and Director | |||||||
b) The Company had the following related party balances at September 30, 2014 and June 30, 2014: | ||||||||
September 30, 2014 | June 30, | |||||||
2014 | ||||||||
(Unaudited) | (Audited) | |||||||
Due to MPD | $ | 16,996 | $ | - | ||||
Due to MPI | 323,694 | 323,694 | ||||||
Due to Director | 152,631 | - | ||||||
Total due to related parties and directors | $ | 493,321 | $ | 323,694 | ||||
The related party transaction comprised majority of the expense paid by MPD and MPI on the Company’s behalf. The office was leased from MPD by the Company on an annual rent denoted in Singapore Dollar which equivalent to US Dollar $ 71,426. The balance due to MPI is the result of the offsetting related party payable among the Company, MPI and MPD at the yearend. No offsetting occurred during the three months period ended September 30, 2014. | ||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 14 — Subsequent Events |
On October 31, 2014, M-Power Investment Pte Ltd, majority shareholder of the company, invested $1,000,000 for 127,790,000 shares of M-Power Food Industries capital stock. | |
On March 23, 2015, Natural Resources Corporation, a Delaware corporation (the “Company”), entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Romulus Corp., a Nevada corporation (“Romulus Parent”), Romulus Merger Corp., a Delaware corporation (“Romulus Sub”), and Eastwin Capital Pte Ltd, a Singapore private limited company (“Eastwin”). Romulus Parent is currently a “shell company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934. | |
Under the Merger Agreement, Romulus Sub, a wholly-owned subsidiary of Romulus Parent, will merge with and into the Company (the “Merger”) after which Romulus Sub will cease to exist and the Company will be the surviving corporation in the Merger, and each outstanding share of the Company’s common stock will be converted into the right to receive shares of Romulus Parent (the “Merger Shares”) as described below, subject to each holder of the Company’s common stock right to exercise appraisal rights of such shares in accordance with the Delaware General Corporation Law. Prior to the execution of the Merger Agreement, Eastwin will acquire 8,000,000 shares of Romulus Parent’s common stock (the “Eastwin Shares”) from Artem Rusakov, the majority shareholder of Romulus Parent, and in consideration for certain services to be provided by Eastwin to the Company, the Company will reimburse $375,000 of the purchase price on behalf of Eastwin (the “Eastwin Payment”), or, at Eastwin’s direction, the Company will pay all or a portion of the Eastwin Payment into escrow within 30 days of execution of the Merger Agreement as part of the purchase price. The Eastwin Payment owed to Artem Rusakov will be secured by the Eastwin Shares. The Eastwin Payment will be released from escrow to the Company, or reimbursed to the Company, as the case may be, in the event the Merger Agreement is terminated. | |
In the aggregate, holders of the shares of the Company’s common stock will receive approximately 124,000,000 Merger Shares in exchange for all of the outstanding shares of the Company’s common stock. As a result of the Merger, the Company will be a wholly-owned subsidiary of Romulus Parent. This transaction is more fully described in the Form 8-K filed by the Company on March 24, 2015. | |
Description_of_business_and_su1
Description of business and summary of significant accounting policies (Policies) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | |||||||||
Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of our financial statements requires us to make estimates and assumptions that affect, among other areas, the reported amounts of trade receivable reserves and inventory reserves, impairment of long-lived assets, and recoverability of deferred tax assets. These estimates and assumptions also impact revenues, expenses and the disclosures in our condensed financial statements and the accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. All amounts are presented in U.S. dollars, unless otherwise noted. | ||||||||||
The Company’s unaudited condensed financial statements are expressed in U.S. Dollars and are presented in accordance with U.S. GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed interim financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results of operations for the interim periods presented. However, the results of operations for these interim periods are not necessarily indicative of the results that may be expected for the year ended June 30, 2015. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes thereto included in the Company’s registration statement on Form S-1. The Company’s fiscal year end is June 30. | ||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents – We classify as cash and cash equivalents time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase. The Company has no cash equivalents as of September 30, 2014 and June 30, 2014. | |||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Receivables – We record trade receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts, to reflect any anticipated loss and is charged to the provision for doubtful accounts, included in other operating expenses in the statements of operations. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our customers. The Company recognized provision of doubtful debts of $0 and $0 for the three months period ended September 30, 2014 and for the fiscal years ended June 30, 2014. | |||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk – We have a diversified, international customer base. We control credit risk related to accounts receivables through credit approvals, credit limits and monitoring procedures. Credit risk with respect to receivables is concentrated in the food industry sector. | |||||||||
During the three months period ended September 30, 2014 and 2013 approximately 81% and 74% of the Company’s revenues were from two and three major customers, respectively, which constituted $1,943,039 and $2,802,340 of the Company’s revenues. As of the three months period ended September 30, 2014, the accounts receivables of these two customers are $684,797. As of the years ended June 30, 2014 the accounts receivables of these three customers were $399,490. | ||||||||||
During the three months period ended September 30, 2014 and 2013 approximately 85% and 96% of the Company’s purchases were from three and two major vendors, respectively, which constituted $1,307,155 and $6,189,623 of the Company’s purchases. As of the three months period ended September 30, 2014, the accounts payables of these three vendors are $168,420. As of the years ended June 30, 2014, the amount owed to these three suppliers was $44,600. | ||||||||||
Inventory, Policy [Policy Text Block] | Inventory – Inventory, consisting of raw materials, is stated at the lower of cost, using the first-in, first-out method (“FIFO”) to determine cost. If the cost of the inventory exceeds market value, provisions are made currently for the difference between the cost and the market value. We monitor inventory cost compared to selling price less margin in order to determine if a lower of cost or market reserve is necessary. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment – Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded using the straight-line method over the estimated useful lives of our assets, which are reviewed periodically. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Capital lease are depreciated over the shorter of the lease term or the estimated useful life of the improvements. | |||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments | |||||||||
In accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement and Disclosure, the Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Company bases fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||
When observable market prices and data are not readily available, significant management judgment often is necessary to estimate fair value. In those cases, different assumptions could result in significant changes in valuation and may not be realize in an actual sale. Additionally, there may be inherent weaknesses in any calculation technique and changes in the underlying assumptions used, including discount rates, and expected cash flows could significantly affect the results of current or future values. | ||||||||||
For certain financial instruments, including accounts receivable, accounts payable, accrued expenses and capital lease, the carrying amounts approximate fair value due to their relatively short maturities. In the case of the notes payable, the interest rate on the notes approximates the market rate of interest for similar borrowings. Consequently the carrying value of the notes payable also approximates the fair value. It is not practicable to estimate the fair value of the related party notes payable due to the relationship of the counter party. | ||||||||||
All assets except for intangible assets of the Company are considered Level 1 due to short term maturity. | ||||||||||
The Company adopted ASC 820-10 (formerly SFAS 157, “Fair Value Measurements”) on January 1, 2008. ASC 820-10 defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | ||||||||||
· | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; | |||||||||
· | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments; and | |||||||||
· | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. | |||||||||
The Company used Level 2 inputs for its valuation methodology for the milk brands. | ||||||||||
Carrying Value | Fair Value Measurement at | |||||||||
As of | September 30, 2014 | |||||||||
September 30, | Using Fair Value Hierarchy | |||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||
Intangible Assets - | ||||||||||
Milk Brands | 9,913,979 | - | 9,913,979 | - | ||||||
Total | 9,913,979 | - | 9,913,979 | - | ||||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible assets – Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in statement of comprehensive income in the year in which the expenditure is incurred. | |||||||||
For intangible assets acquired in a non-monetary exchange (see Note 6), the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values, unless the values of neither the assets received nor the assets transferred are determinable within reasonable limits, in which case the assets received are measured (by a third party) based on the carrying values of the assets transferred. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. An estimate of fair value can be affected by many assumptions that require significant judgment. For example, the income approach generally requires assumptions related to the appropriate business model to be used to estimate cash flows, total addressable market, pricing and share forecasts, competition, technology obsolescence, future tax rates and discount rates. Our estimate of the fair value of certain assets may differ materially from that determined by others who use different assumptions or utilize different business models. New information may arise in the future that affects our fair value estimates and could result in adjustments to our estimates in the future, which could have an adverse impact on our results of operations. | ||||||||||
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method are reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite useful lives is recognised in statement of comprehensive income in the expense category consistent with the function of the intangible asset. | ||||||||||
Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, or more frequently if the events and circumstances indicate that the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. | ||||||||||
Gains or losses arising from de-recognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised. | ||||||||||
Brands [Policy Text Block] | Brands – The brands were acquired from third party. The Management estimate the useful life of the Brands is 7 years. Management believes that over the period under the contract, the brands are generating net cash inflows for the Company. | |||||||||
The cost of the brands will be amortised over the period of 7 years. | ||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long lived assets impairment – We assess the recoverability of the carrying value of long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We have the option of performing a qualitative assessment when assessing recoverability. We may also evaluate the recoverability of such assets based upon estimates of the undiscounted cash flows from such assets. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss would be recognized for the difference between the fair value and the carrying amount. We did not incur any impairment charges during the periods presented as management determined that its long lived assets were not impaired. | |||||||||
Income Tax, Policy [Policy Text Block] | Income taxes – We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amount of our assets and liabilities. We monitor our deferred tax assets and evaluate the need for a valuation allowance based on the estimate of the amount of such deferred tax assets that we believe do not meet the more-likely-than-not recognition criteria. We follow guidelines in each tax jurisdiction regarding the recoverability of any tax assets recorded on the balance sheets and provide necessary valuation allowances as required. We review our deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. We also evaluate whether we have any uncertain tax positions and would record a reserve if we believe it is more-likely-than-not our position would not prevail with the applicable tax authorities. Penalties and interest, if any, are included in other expense on the statements of operations. Deferred tax assets and liabilities may be netted by jurisdiction, typically domestic and foreign, within the current and long-term classifications on the balance sheets. | |||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications- Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition – According to ASC 605, the Company recognizes revenue when persuasive evidence of an arrangement exists, the service is performed or delivery has occurred, the price is fixed or determinable, and collectability is probable. | |||||||||
For products shipped directly from the Company’s warehouse or manufactured by the Company in Singapore and then shipped to customer, both domestic and oversea, revenue is recognized at time of shipment as it is determined that ownership has passed to the customer at shipment and revenue is recognized. Amount billed to customers for freight and shipping is classified as revenue. | ||||||||||
Under normal commercial situations there will be no cancellation of orders allowed once products are produced. Under circumstances of quality dispute or any quality related issues of the products, the Company will accept sales returns from the customer upon verification by the Company for the quality dispute. This is not a normal situation and will be subjected to the acceptance of quality dispute by the Company in such instance. | ||||||||||
For domestic customers, if the customer rejects the purchase order after the manufacturing process has begun, the Company invoices the customer for any manufacturing costs incurred and revenue is recognized. The Company will fully invoice and recognize as revenue for orders rejected after time of shipment, provided all other revenue recognition criteria are met. | ||||||||||
For overseas customer, the Company will check customer’s credit risk through export credit insurance and insure products through export credit insurance. If the overseas customer rejects the order during the manufacturing process, the Company will claim the export credit insurance. The Company will also claim the export credit insurance for orders rejected after the time of shipment. | ||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation – The Company’s reporting currency is the U.S. dollar. The Company’s functional currency is the local currency in the Singapore, the Singapore Dollar (SGD). The financial statements of the Company are translated into United States dollars in accordance with ASC 830, FOREIGN CURRENCY MATTERS, using year-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses and historical rates for equity. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. For the three months period ended September 30, 2014, the cumulative translation adjustment of $53,167 was classified as an item accumulated of other comprehensive loss in the stockholders’ equity section of statement of financial position. For the years ended June 30, 2014, the cumulative translation adjustment of $53,167 was classified as an item accumulated of other comprehensive loss in the stockholders’ equity section of statement of financial position. For the three months period ended September 30, 2014, the foreign currency translation adjustment to accumulative other comprehensive loss was $53,167. For the years ended June 30, 2014, the foreign currency translation adjustment to accumulate other comprehensive loss was $53,167. | |||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income (loss) – Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, Accounting Standards Codification (ASC) 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For the periods presented, the Company’s comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments and is presented in the statements of comprehensive loss. We had translation adjustment to other comprehensive loss of $ 0 and $ 35,030 for the periods ended September 30, 2014 and 2013, respectively. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings per share – We calculate basic earnings per share by dividing our net income by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is not anti-dilutive. The Company had no dilutive securities as of and for the three months ended September 30, 2014. During the three month periods ended September 30, 2014 and 2013, basic earnings per share was $0.00 and $0.02, respectively. As of the years ended June 30, 2014 basic earnings per share was $0.01. | |||||||||
Reverse Merger Accounting [Policy Text Block] | Reverse Merger Accounting – For accounting purposes, the stock-for-stock transaction, should be treated as a reverse acquisition and recapitalization of M-Power Food Industries Private Limited (accounting acquirer) because, prior to the transaction, Natural Resources Corporation (the “Company”) was a non-operating public shell and, subsequent to the transaction, 200,000,000 shares and interests of common stock of M-Power Industries (all of which were held by M-Power Investments) were exchanged for and converted into, 50,000,000 shares of common stock of the Company. Accordingly, for accounting purposes, the transaction was treated as a reverse acquisition and recapitalization in accordance with US GAAP. The historical financial statements will be presented in the consolidated financial statements of M-Power Food Industries Private Limited. The common stock and the corresponding capital amounts of the Company pre-merger will be retroactively restated as capital stock shares reflecting the exchange ratio in the merger. | |||||||||
Fiscal Period, Policy [Policy Text Block] | Fiscal Year End – Following the exchange transaction, the Company elected to adopt the June 30 year end of M-Power Food Industries Private Limited, the accounting acquirer. | |||||||||
Adopted Accounting Pronouncements [Policy Text Block] | Adopted Accounting Pronouncements | |||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company adopted ASU 2014-15 on the Company’s financial statement presentation and disclosures. | ||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting pronouncements | |||||||||
Effective January 2012, the Company adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 represents the converged guidance of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on fair value measurement. A variety of measures are included in the update intended to either clarify existing fair value measurement requirements, change particular principles requirements for measuring fair value or for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend to change the application of existing requirements under Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements. ASU 2011-04 was effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements and related disclosures. | ||||||||||
Effective January 2012, the Company adopted ASU No. 2011-05, Presentation of Comprehensive Income (ASU 2011-05). ASU 2011-05 is intended to increase the prominence of items reported in other comprehensive income and to facilitate convergence of accounting guidance in this area with that of the IASB. The amendments require that all non-owner changes in shareholders’ equity be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items. | ||||||||||
Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12). ASU 2011-12 defers the provisions of ASU 2011-05 that require the presentation of reclassification adjustments on the face of both the statement of income and statement of other comprehensive income. Amendments under ASU 2011-05 that were not deferred under ASU 2011-12 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements and related disclosures | ||||||||||
In July 2012, the FASB issued guidance on testing for indefinite-lived intangible assets for impairment. The new guidance allows an entity to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to first use subjective criteria to determine if an intangible asset has lost value. The amendments to U.S. GAAP will be effective for fiscal years starting after September 15, 2012. The adoption of this update did not have a material impact on the financial statements and related disclosures. | ||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The adoption of this update did not have a material impact on the financial statements and related disclosures. | ||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard beginning January 1, 2017. | ||||||||||
Other recent pronouncements issued by FASB (including its Emerging Task Force), and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. | ||||||||||
Description_of_business_and_su2
Description of business and summary of significant accounting policies (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The Company used Level 2 inputs for its valuation methodology for the milk brands. | |||||||||
Carrying Value | Fair Value Measurement at | |||||||||
As of | September 30, 2014 | |||||||||
September 30, | Using Fair Value Hierarchy | |||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||
Intangible Assets - | ||||||||||
Milk Brands | 9,913,979 | - | 9,913,979 | - | ||||||
Total | 9,913,979 | - | 9,913,979 | - | ||||||
Accounts_receivables_Tables
Accounts receivables (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following as of September 30, 2014 and June 30, 2014: | |||||||
September 30, 2014 | June 30, | |||||||
2014 | ||||||||
(Unaudited) | (Audited) | |||||||
Accounts receivable-sales of goods | $ | 2,670,622 | $ | 2,516,567 | ||||
Total accounts receivable | $ | 2,670,622 | $ | 2,516,567 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following as of September 30, 2014 and June 30, 2014: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Finished goods | $ | - | $ | 40,240 | ||||
Raw materials | 503,235 | 588,506 | ||||||
Total inventories | $ | 503,235 | $ | 628,746 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consist of the following: | |||||||||
September 30, | June 30, | Useful Life | ||||||||
2014 | 2014 | (Years) | ||||||||
(Unaudited) | (Audited) | |||||||||
Motor vehicles | $ | 78,881 | $ | 78,881 | 5 – 7 | |||||
Plant and equipment | 436,408 | 436,408 | 10 – 15 | |||||||
Furniture and equipment | 245,980 | 245,980 | 3 – 10 | |||||||
Leasehold improvements | 1,674,834 | 1,674,834 | 19 | |||||||
Less: accumulated depreciation | -727,659 | -685,717 | ||||||||
$ | 1,708,444 | $ | 1,750,386 | |||||||
Intangible_asset_Tables
Intangible asset (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, | June 30, | ||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Intangible asset – Milk Brands | $ | 10,281,168 | $ | 10,281,168 | ||||
Accumulated amortization | -367,189 | - | ||||||
Total intangible asset | $ | 9,913,979 | $ | 10,281,168 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt [Table Text Block] | Debt consists of the following: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Term loan 1 | $ | 295,061 | $ | 293,460 | ||||
Term loan 2 | 295,096 | 293,495 | ||||||
Term loan 3 | 232,392 | 234,551 | ||||||
Term loan 4 | 823,139 | 825,267 | ||||||
Term loan 5 | 282,128 | 280,516 | ||||||
Term loan 6 | 48,831 | 68,884 | ||||||
Term loan 7 | 1,161,962 | 1,256,744 | ||||||
Term loan 8 | - | - | ||||||
Term loan 9 | - | - | ||||||
Trust receipts | 2,746,705 | 3,375,036 | ||||||
Total debt | 5,885,314 | 6,627,953 | ||||||
Less: current portion | -4,169,472 | -4,912,397 | ||||||
Long-term portion of debt | $ | 1,715,842 | $ | 1,715,556 | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Future contractual maturities of debt are as follows, as of September 30, 2014: | |||||||
Three months ending September 30, | ||||||||
2015 | $ | 4,169,472 | ||||||
2016 | 207,975 | |||||||
2017 | 214,086 | |||||||
2018 | 221,701 | |||||||
2019 | 229,586 | |||||||
Thereafter | 842,494 | |||||||
$ | 5,885,314 | |||||||
Capital_Leases_Tables
Capital Leases (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Leases, Capital [Abstract] | ||||||||
Schedule of Capital Leased Assets [Table Text Block] | The assets under capital lease have cost and accumulated amortization as follows: | |||||||
September 30, 2014 | June 30, 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Motor vehicles | $ | 78,881 | $ | 78,881 | ||||
Plant and equipment | 90,127 | 90,127 | ||||||
Furniture and equipment | 235,349 | 235,349 | ||||||
Less: accumulated depreciation | -99,869 | -88,910 | ||||||
Total: | $ | 304,488 | $ | 315,447 | ||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Maturities of capital lease obligations as of June 30, 2014 are as follows: | |||||||
2015 | $ | 75,722 | ||||||
2016 | 9,935 | |||||||
Total minimum lease payments | 85,657 | |||||||
Amount representing interest | -8,434 | |||||||
Present value of minimum lease payments | 77,223 | |||||||
Less: current portion | -68,463 | |||||||
Total: | $ | 8,760 | ||||||
Operating_leases_Tables
Operating leases (Tables) | 3 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases, Operating [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental payments required under all leases that have remaining non-cancellable lease terms in excess of one year as of June 30, 2014 are as follows: | ||||
Year Ending June 30, | |||||
2015 | $ | 305,171 | |||
2016 | 318,695 | ||||
2017 | 209,912 | ||||
2018 | 18,000 | ||||
$ | 851,778 | ||||
Income_taxes_Tables
Income taxes (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The reconciliation of the income tax expense from continuing operations expected based on domestic statutory income tax rates to the expense for income taxes included in the statements of operations is as follows: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Income (loss) before income tax | $ | -18,329 | $ | 1,498,485 | ||||
Expenses not deductible for tax purposes | 438,673 | 307,761 | ||||||
Tax exemption and allowances | -249,500 | -247,846 | ||||||
Taxable income | 170,844 | 1,558,400 | ||||||
Tax of 17% (estimated Singapore Statutory Rate) | 29,044 | 264,928 | ||||||
Tax rebate on net tax payable | -23,971 | -23,809 | ||||||
Permanent difference | -5,073 | 99,094 | ||||||
Tax liability per tax year | - | 340,213 | ||||||
Under payment | - | 1,618 | ||||||
Under provision | - | 18,467 | ||||||
Total income tax liability | - | 360,298 | ||||||
Tax liability per tax year | - | 340,213 | ||||||
Under provision | - | 18,467 | ||||||
Changes in deferred tax liability | - | 12,323 | ||||||
Income tax expense | $ | - | $ | 371,003 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of net deferred tax liabilities are as follows: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
(Unaudited) | (Audited) | |||||||
Deferred tax liabilities | $ | 114,861 | $ | 114,861 | ||||
Relatedparty_transactions_Tabl
Related-party transactions (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule of Related Party Transactions [Table Text Block] | b) The Company had the following related party balances at September 30, 2014 and June 30, 2014: | |||||||
September 30, 2014 | June 30, | |||||||
2014 | ||||||||
(Unaudited) | (Audited) | |||||||
Due to MPD | $ | 16,996 | $ | - | ||||
Due to MPI | 323,694 | 323,694 | ||||||
Due to Director | 152,631 | - | ||||||
Total due to related parties and directors | $ | 493,321 | $ | 323,694 | ||||
Description_of_business_and_su3
Description of business and summary of significant accounting policies (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-Lived Intangible Assets, Net | $9,913,979 | $10,281,168 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 9,913,979 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | |
Milk Brands [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-Lived Intangible Assets, Net | 9,913,979 | |
Milk Brands [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | |
Milk Brands [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 9,913,979 | |
Milk Brands [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | $0 |
Description_of_business_and_su4
Description of business and summary of significant accounting policies (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Accounting Polices [Line Items] | |||
Provision for Doubtful Accounts | $0 | $0 | |
Revenues | 2,624,324 | 3,796,705 | |
Accounts Receivable, Net, Current | 2,670,622 | 2,516,567 | |
Accounts Payable, Current | 647,984 | 807,017 | |
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 53,167 | 53,167 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -53,167 | -53,167 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | -35,030 | |
Earnings Per Share, Basic | $0 | $0.02 | $0.01 |
Milk Brands [Member] | |||
Accounting Polices [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years | ||
M-Power Food Industries [Member] | |||
Accounting Polices [Line Items] | |||
Conversion of Stock, Shares Converted | 200,000,000 | ||
M-Power Food Industries [Member] | Common Stock [Member] | |||
Accounting Polices [Line Items] | |||
Conversion of Stock, Shares Issued | 50,000,000 | ||
Two Customers [Member] | |||
Accounting Polices [Line Items] | |||
Revenues | 1,943,039 | ||
Accounts Receivable, Net, Current | 684,797 | ||
Two Customers [Member] | Sales Revenue, Net [Member] | |||
Accounting Polices [Line Items] | |||
Concentration Risk, Percentage | 81.00% | ||
Three Customers [Member] | |||
Accounting Polices [Line Items] | |||
Revenues | 2,802,340 | ||
Accounts Receivable, Net, Current | 399,490 | ||
Three Customers [Member] | Sales Revenue, Net [Member] | |||
Accounting Polices [Line Items] | |||
Concentration Risk, Percentage | 74.00% | ||
Two Vendors [Member] | |||
Accounting Polices [Line Items] | |||
Cost of Goods Sold, Direct Materials | 1,307,155 | ||
Accounts Payable, Current | 168,420 | ||
Two Vendors [Member] | Purchases [Member] | |||
Accounting Polices [Line Items] | |||
Concentration Risk, Percentage | 85.00% | ||
Three Vendors [Member] | |||
Accounting Polices [Line Items] | |||
Cost of Goods Sold, Direct Materials | 6,189,623 | ||
Accounts Payable, Current | $44,600 | ||
Three Vendors [Member] | Purchases [Member] | |||
Accounting Polices [Line Items] | |||
Concentration Risk, Percentage | 96.00% |
Accounts_receivables_Details
Accounts receivables (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable-sales of goods | $2,670,622 | $2,516,567 |
Total accounts receivable | $2,670,622 | $2,516,567 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Inventory [Line Items] | ||
Finished goods | $0 | $40,240 |
Raw materials | 503,235 | 588,506 |
Total inventories | $503,235 | $628,746 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | ($727,659) | ($685,717) |
Property, Plant and Equipment, Net | 1,708,444 | 1,750,386 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 78,881 | 78,881 |
Motor vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Motor vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Plant and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 436,408 | 436,408 |
Plant and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Plant and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 245,980 | 245,980 |
Furniture and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Furniture and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $1,674,834 | $1,674,834 |
Property, Plant and Equipment, Useful Life | 19 years |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $41,942 | $41,964 |
Intangible_asset_Details
Intangible asset (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset - Milk Brands | $10,281,168 | $10,281,168 |
Accumulated amortization | -367,189 | 0 |
Total intangible asset | $9,913,979 | $10,281,168 |
Intangible_asset_Details_Textu
Intangible asset (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accounts Receivable Assigned as Consideration to Acquire Milk Brands | $10,281,168 | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Finite-Lived Intangible Assets, Amortization Method | straight line method | ||
Amortization of Intangible Assets | $367,189 | $0 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Debt Instrument [Line Items] | ||
Long-term Debt | $5,885,314 | $6,627,953 |
Less: current portion | -4,169,472 | -4,912,397 |
Long-term portion of debt | 1,715,842 | 1,715,556 |
Term loan 1 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 295,061 | 293,460 |
Term loan 2 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 295,096 | 293,495 |
Term loan 3 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 232,392 | 234,551 |
Term loan 4 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 823,139 | 825,267 |
Term loan 5 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 282,128 | 280,516 |
Term loan 6 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 48,831 | 68,884 |
Term loan 7 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,161,962 | 1,256,744 |
Term loan 8 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 0 |
Term loan 9 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 0 |
Trust receipts [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $2,746,705 | $3,375,036 |
Debt_Details_1
Debt (Details 1) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Three months ending September 30, | ||
2015 | $4,169,472 | |
2016 | 207,975 | |
2017 | 214,086 | |
2018 | 221,701 | |
2019 | 229,586 | |
Thereafter | 842,494 | |
Long-term Debt | $5,885,314 | $6,627,953 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Debt Instrument [Line Items] | ||
Interest Expense | $46,329 | $52,656 |
Foreign Currency Transaction Gain (Loss), Realized | -11,107 | 59,280 |
Term loan 1 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 96 months | |
Debt Instrument, Periodic Payment | 4,207 | |
Term loan 1 [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | interest rate is at 0.75% above | |
Term loan 1 [Member] | Year One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.88% | |
Term loan 1 [Member] | Year Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.98% | |
Term loan 1 [Member] | Year Three [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
Term loan 2 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 96 months | |
Debt Instrument, Periodic Payment | 4,207 | |
Term loan 2 [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | interest rate is at 0.25% above | |
Term loan 2 [Member] | Year One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.88% | |
Term loan 2 [Member] | Year Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.98% | |
Term loan 2 [Member] | Year Three [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
Term loan 3 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 96 months | |
Debt Instrument, Periodic Payment | 3,362 | |
Term loan 3 [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | interest rate is at 0.25% above | |
Term loan 3 [Member] | Year One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.88% | |
Term loan 3 [Member] | Year Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.98% | |
Term loan 3 [Member] | Year Three [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
Term loan 4 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 168 months | |
Debt Instrument, Periodic Payment | 6,222 | |
Term loan 4 [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | interest rate is at 0.2% above | |
Term loan 4 [Member] | Year One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.68% | |
Term loan 4 [Member] | Year Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.98% | |
Term loan 4 [Member] | Year Three [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
Term loan 5 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 96 months | |
Debt Instrument, Periodic Payment | 3,790 | |
Term loan 5 [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | interest rate is at 0.25% above | |
Term loan 5 [Member] | Year One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.98% | |
Term loan 5 [Member] | Year Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.98% | |
Term loan 5 [Member] | Year Three [Member] | Singapore Lending Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
Term loan 6 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 24 months | |
Debt Instrument, Periodic Payment | 10,741 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |
Term loan 7 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 15 months | |
Term loan 7 [Member] | Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | interest rate is at 2% per annum above | |
Term loan 8 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 48 months | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Term loan 9 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 48 months | |
Debt Instrument, Periodic Payment | 3,503 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Debt Instrument, Face Amount | $152,122 | |
Trust receipts [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | The interest rate of trust receipts per annum is chargeable at 0.50% above the interest at SBFR (local transactions) and 2.75%) above the interest of SBFR (foreign transactions) | |
Debt Instrument, Payment Terms | The term of the settlement is 90 days from the release of merchandise to the Company from the Bank |
Capital_Leases_Details
Capital Leases (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Capital Leased Assets [Line Items] | ||
Less: accumulated depreciation | ($99,869) | ($88,910) |
Total: | 304,488 | 315,447 |
Motor vehicles [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 78,881 | 78,881 |
Plant and equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 90,127 | 90,127 |
Furniture and equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $235,349 | $235,349 |
Capital_Leases_Details_1
Capital Leases (Details 1) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Maturities of capital lease obligations | ||
2015 | $75,722 | |
2016 | 9,935 | |
Total minimum lease payments | 85,657 | |
Amount representing interest | -8,434 | |
Present value of minimum lease payments | 77,223 | |
Less: current portion | -60,995 | -68,463 |
Total: | $7,983 | $8,760 |
Capital_Leases_Details_Textual
Capital Leases (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Capital Leases [Line Items] | ||
Capital Leases, Income Statement, Interest Expense | $928 | $2,696 |
Stockholders_equity_Details_Te
Stockholders' equity (Details Textual) | 3 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | Jun. 30, 2014 | Aug. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | M-Power Food Industries [Member] | M-Power Food Industries [Member] | M-Power Food Industries [Member] | |
USD ($) | SGD | ||||
Class of Stock [Line Items] | |||||
Business Acquisition Equity Interest Number Of Shares Held | 1,100,000 | ||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 200,000,000 | 200,000,000 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 50,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | $0.01 | 0.01 | |
Common Stock, Voting Rights | The holders of the issued and outstanding shares Common Stock are entitled to one vote per share on any matter to be voted on by the stockholders of the Company and are entitled to receive any dividends declared. |
Operating_leases_Details
Operating leases (Details) (USD $) | Jun. 30, 2014 |
Year Ending June 30, | |
2015 | $305,171 |
2016 | 318,695 |
2017 | 209,912 |
2018 | 18,000 |
Total | $851,778 |
Operating_leases_Details_Textu
Operating leases (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Leases [Line Items] | ||
Operating Leases, Rent Expense | $74,053 | $93,054 |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Income Tax Disclosure [Line Items] | |||
Income (loss) before income tax | ($18,329) | $1,498,485 | |
Expenses not deductible for tax purposes | 438,673 | 307,761 | |
Tax exemption and allowances | -249,500 | -247,846 | |
Taxable income | 170,844 | 1,558,400 | |
Tax of 17% (estimated Singapore Statutory Rate) | 29,044 | 264,928 | |
Tax rebate on net tax payable | -23,971 | -23,809 | |
Permanent difference | -5,073 | 99,094 | |
Tax liability per tax year | 0 | 340,213 | |
Under payment | 0 | 1,618 | |
Under provision | 0 | 18,467 | |
Total income tax liability | 0 | 0 | 360,298 |
Tax liability per tax year | 0 | 340,213 | |
Under provision | 0 | 18,467 | |
Changes in deferred tax liability | 0 | 12,323 | |
Income tax expense | $0 | $371,003 |
Income_taxes_Details_1
Income taxes (Details 1) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Income Tax Disclosure [Line Items] | ||
Deferred tax liabilities | $114,861 | $114,861 |
Income_taxes_Details_Textual
Income taxes (Details Textual) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 17.00% | 17.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 17.00% |
Commitments_and_contingencies_
Commitments and contingencies (Details Textual) (Trade Accounts Receivable [Member]) | 3 Months Ended |
Sep. 30, 2014 | |
Trade Accounts Receivable [Member] | |
Commitments And Contingencies [Line Items] | |
Concentration Risk, Percentage | 90.00% |
Relatedparty_transactions_Deta
Related-party transactions (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Related Party Transaction [Line Items] | ||
Total due to related parties and directors | $493,321 | $323,694 |
M-Power Development Ptd Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties and directors | 16,996 | 0 |
M-Power Investment Pte Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties and directors | 323,694 | 323,694 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties and directors | $152,631 | $0 |
Relatedparty_transactions_Deta1
Related-party transactions (Details Textual) (M-Power Development Ptd Ltd [Member], USD $) | Sep. 30, 2014 |
M-Power Development Ptd Ltd [Member] | |
Related Party Transaction [Line Items] | |
Capital Leases, Contingent Rental Payments Due | $71,426 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (Subsequent Event [Member], USD $) | 1 Months Ended |
Oct. 31, 2014 | |
Subsequent Event [Line Items] | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 124,000,000 |
M-Power Investment Pte Ltd [Member] | |
Subsequent Event [Line Items] | |
Sale of Stock, Consideration Received on Transaction | 1,000,000 |
Sale of Stock, Number of Shares Issued in Transaction | 127,790,000 |
Eastwin Capital Pte Ltd [Member] | |
Subsequent Event [Line Items] | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 8,000,000 |
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 375,000 |