Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information | |
Entity Registrant Name | Rito Group Corp. |
Entity Central Index Key | 0001646576 |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | No |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business Flag | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 56,496,489 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
CURRENT ASSETS | ||
Account receivables | $ 211,509 | $ 123,289 |
Operating lease right-of use assets, net | 42,423 | |
Deposit paid, prepayments and other receivables | 27,287 | 31,350 |
Cash and cash equivalents | 32,048 | 349,080 |
Total current assets | 313,267 | 503,719 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 154,270 | 189,650 |
TOTAL ASSETS | 467,537 | 693,369 |
CURRENT LIABILITIES | ||
Current portion of long-term bank loans | 4,605 | 8,882 |
Accrued expenses and other payables | 110,124 | 111,621 |
Due to directors | 35,184 | 10,255 |
Due to related party | 12,840 | |
Operating lease liabilities, current portion | 42,423 | |
Total current liabilities | 205,176 | 130,758 |
NON-CURRENT LIABILITIES | ||
Long-term bank loans | 23,171 | 23,284 |
TOTAL LIABILITIES | 228,347 | 154,042 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 200,000,000 shares authorized, None issued and outstanding | ||
Common stock, $0.0001 par value, 600,000,000 shares authorized, 56,496,489 and 56,446,489 shares issued and outstanding as of December 31, 2019 and June 30, 2019 respectively | 5,650 | 5,645 |
Additional paid-in capital | 4,608,572 | 4,508,577 |
Accumulated other comprehensive loss | (1,654) | (1,193) |
Accumulated deficit | (4,373,378) | (3,973,702) |
TOTAL STOCKHOLDERS' EQUITY | 239,190 | 539,327 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 467,537 | $ 693,369 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 56,496,489 | 56,446,489 |
Common stock, shares outstanding | 56,496,489 | 56,446,489 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
REVENUE | $ 121,032 | $ 105,613 | $ 216,741 | $ 205,188 |
COST OF REVENUE | (67,404) | (69,527) | (127,983) | (182,744) |
GROSS PROFIT | 53,628 | 36,086 | 88,758 | 22,444 |
OTHER INCOME | 45 | 313 | 47 | 3,464 |
OPERATING EXPENSES | ||||
General and administrative | (217,060) | (275,630) | (486,357) | (535,804) |
LOSS FROM OPERATIONS | (163,387) | (239,231) | (397,552) | (509,896) |
Interest expense | (1,041) | (2,861) | (2,124) | (2,861) |
LOSS BEFORE INCOME TAX | (164,428) | (242,092) | (399,676) | (512,757) |
Income tax expense | ||||
NET LOSS | (164,428) | (242,092) | (399,676) | (512,757) |
Other comprehensive loss: | ||||
Foreign currency translation loss | 896 | (13,151) | (461) | 13,231 |
COMPREHENSIVE LOSS | $ (163,532) | $ (242,103) | $ (400,137) | $ (512,689) |
Net loss per share - Basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding - Basic and diluted | 56,469,315 | 56,008,855 | 56,457,902 | 55,987,155 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total |
Balance at Jun. 30, 2019 | $ 5,645 | $ 4,508,577 | $ (1,193) | $ (3,973,702) | $ 539,327 |
Balance, shares at Jun. 30, 2019 | 56,446,489 | ||||
Private Placement $2 per share in November 2019 | $ 5 | 99,995 | $ 100,000 | ||
Private Placement $2 per share in November 2019, shares | 50,000 | 50,000 | |||
Net Loss | (399,676) | $ (399,676) | |||
Other comprehensive loss | (461) | (461) | |||
Balance at Dec. 31, 2019 | $ 5,650 | 4,608,572 | (1,654) | (4,373,378) | 239,190 |
Balance, shares at Dec. 31, 2019 | 56,496,489 | ||||
Balance at Sep. 30, 2019 | $ 5,645 | 4,508,577 | (2,550) | (4,208,950) | 302,722 |
Balance, shares at Sep. 30, 2019 | 56,446,489 | ||||
Private Placement $2 per share in November 2019 | $ 5 | 99,995 | 100,000 | ||
Private Placement $2 per share in November 2019, shares | 50,000 | ||||
Net Loss | (164,428) | (164,428) | |||
Other comprehensive loss | 896 | 896 | |||
Balance at Dec. 31, 2019 | $ 5,650 | $ 4,608,572 | $ (1,654) | $ (4,373,378) | $ 239,190 |
Balance, shares at Dec. 31, 2019 | 56,496,489 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | Dec. 31, 2019 | Nov. 30, 2019 |
Statement of Stockholders' Equity [Abstract] | ||
Share issued price per share | $ 2 | $ 2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (399,676) | $ (512,757) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 35,380 | 54,284 |
Interest expenses | 2,124 | 2,861 |
Operating lease expense | 42,423 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (88,220) | (8,420) |
Prepayments, deposits and other receivables | 4,062 | (6,464) |
Operating lease liabilities | (42,423) | |
Accounts payable | ||
Other payables and accrued liabilities | (1,497) | (216,043) |
Net cash used in operating activities | (447,827) | (686,539) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | (54,690) | |
Net cash used in investing activities | (54,690) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of shares in private placement | 100,000 | 380,000 |
Advances from related party | 12,840 | |
Repayment of bank borrowings | (4,390) | (3,511) |
Bank loan interest | (2,124) | (2,861) |
Advances from directors | 24,929 | (89,634) |
Net cash provided by financing activities | 131,255 | 283,994 |
Effect of exchange rate changes on cash and cash equivalents | (460) | 13,231 |
Net change in cash and cash equivalents | (317,032) | (444,004) |
Cash and cash equivalents, beginning of period | 349,080 | 1,066,636 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 32,048 | 622,632 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Cash paid for income taxes | ||
Cash paid for interest paid | $ (2,124) | $ (2,861) |
Basis of Preparation
Basis of Preparation | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | NOTE 1 - BASIS OF PREPARATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the consolidated balance sheet as of December 31, 2019 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the six months ended December 31, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2020 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2019. |
Organization and Business Backg
Organization and Business Background | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Background | NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND Rito Group Corp. (the “Company”) was incorporated on March 24, 2015 under the laws of the state of Nevada. The Company, through its subsidiaries, mainly engages in trading of retail goods such as cookware, jewelry and watches, AgriGaia Farming Products, and numerous other products. Details of the Company’s subsidiaries: Company name Place/date of incorporation Particulars of issued capital Equity ownership Principal activities 1. Sino Union International Limited (“Sino Union”) Anguilla January 3, 2014 84,500 shares of ordinary share of US$1 each 100% Investment holding 2. Rito International Enterprise Company Limited (“Rito International”) Hong Kong August 12, 2014 630,001 shares of ordinary share of HK$1 each 100% Trading of retail goods 3. 深圳市 汇图贸易有限公 司 Shenzhen, PRC June 27, 2018 500,000 shares of ordinary share of RMB 1 each 100% Trading of retail goods, business and agriculture technology consulting Rito Group Corp. and its subsidiaries are hereinafter referred to as the “Company”. |
Going Concern Uncertainties
Going Concern Uncertainties | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Uncertainties | NOTE 3 - GOING CONCERN UNCERTAINTIES The accompanying financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2019, the Company suffered an accumulated deficit of $4,373,378 and continuously incurred a net operating loss of $399,676 for the six months ended December 31, 2019. The continuation of the Company as a going concern through June 30, 2020 is dependent upon improving the profitability and the continuing financial support from its stockholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. Furthermore, management plans to import healthy food and drinks produced by Taiwanese AgriGaia Biomimicry Farming System into Hong Kong and arrange the food and drinks to be sold in various outlets by our sole agent in Hong Kong. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. ● Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). ● Basis of consolidation The condensed consolidated financial statements include the accounts of Rito Group Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. ● Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. ● Cash and cash equivalents The company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. ● Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational: Categories Estimated useful life Residual value Leasehold improvement Over the shorter of estimated useful life or term of lease - Equipment 3-10 years - Motor Vehicle 3-10 years - Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations. ● Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. ● Revenue recognition In accordance with the Accounting Standard Codification (“ASC”) Topic 605 “Revenue Recognition” Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. Revenue from trading of retail goods is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transferred to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. Based on limited operating history, management estimates that there were no sales return for the period reported. The Company derives its revenue from sales of goods to individuals. Generally, the Company recognizes revenue when products are sold and accepted by the customers and there are no continuing obligations to the customer. ● Cost of revenues Cost of revenue includes the purchase cost of retail goods for re-sale to the customers. ● Income taxes The provision of income taxes is determined in accordance with the provisions of ASC Topic 740, “Income Taxes” ASC Topic 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC Topic 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial conditions or results of operations for the six months ended December 31, 2019. The Company conducts major businesses in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority. ● Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share” ● Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company and its subsidiary in Anguilla is United States Dollars (“US$”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement” Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the 2019 2018 Period-end / average HK$ : US$1 exchange rate 7.7880 7.7500 Period-end / average CNY¥: US$1 exchange rate 6.9692 6.8800 ● Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. ● Lease In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases, which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). Topic 842 will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. Topic 842 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. Topic 842 allows for a cumulative-effect adjustment in the period the new lease standard is adopted and will not require restatement of prior periods. Prior to July 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective July 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on July 1, 2019 resulted in the recognition of operating lease right-of-use assets of $42,423, lease liabilities for operating leases of $42,423, and a zero cumulative-effect adjustment to accumulated deficit. See Note 12 for further information regarding the impact of the adoption of ASC 842 on the Company’s financial statements. ● Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, accounts receivable, deposits and other receivables, accounts payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Company follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” Level 1 Level 2 Level 3 Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. ● Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 5 - SHAREHOLDERS’ EQUITY During the six months ended December 31 2019, the Company issued an aggregated of 50,000 shares of its common stock at $2.00 per shares for aggregate gross proceeds of $100,000. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 6 - PROPERTY, PLANT AND EQUIPMENT As of December 31, 2019 June 30, 2019 (unaudited) (audited) Leasehold improvement $ 236,630 $ 236,630 Equipment 32,570 32,570 Motor vehicle 18,065 18,065 287,265 287,265 Less: Accumulated depreciation (132,995 ) (97,615 ) Total $ 154,270 $ 189,650 Depreciation expense, classified as operating expenses, was $35,380 and $54,284 for the six months ended December 31, 2019 and 2018 respectively. |
Long-Term Bank Loans
Long-Term Bank Loans | 6 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Bank Loans | NOTE 7 - LONG-TERM BANK LOANS As of December 31, 2019 June 30, 2019 (unaudited) (audited) Bank loan from financial institution in Hong Kong: The Hongkong and Shanghai Banking Corporation Limited $ 27,776 $ 32,166 27,776 32,166 Less: Current portion (4,605 ) (8,882 ) Long-term portion $ 23,171 $ 23,284 In July 2017, the Company obtained a loan in the principal amount of HKD349,000 (approximately $45,032) from The Hongkong and Shanghai Banking Corporation Limited, a financial institution in Hongkong which bears interest at the base lending rate less 0.7% flat rate per month with 60 monthly installments of HKD8,260 (approximately $1,066) each and will mature in July 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8 - INCOME TAXES For the six months ended December 31, 2019 and 2018, the local (United States) and foreign components of loss before income taxes were comprised of the following: For the six months ended 2019 2018 Tax jurisdictions from: – Local $ (34,105 ) $ (22,918 ) – Foreign, representing Anguilla (2,734 ) (2,072 ) Hong Kong (361,975 ) (486,891 ) PRC (862 ) (876 ) Loss before income taxes (399,676 ) (512,757 ) Provision for income taxes consisted of the following: For the six months ended 2019 2018 Current: – Local $ - $ - – Foreign (Hong Kong) - - – Foreign (PRC) - - Deferred: – Local - - – Foreign (Hong Kong) - - – Foreign (PRC) - - $ - $ - The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States, Anguilla, Hong Kong and People’s Republic of China that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of December 31, 2019, the operations in the United States of America incurred $357,179 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2037, if unutilized. The Company has provided for a full valuation allowance of $75,007 against the deferred tax assets on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. Anguilla Under the current laws of the Anguilla, Sino Union is registered as an international business company which is governed by the International Business Companies Act of Anguilla and there is no income tax charged in Anguilla. Hong Kong Rito International is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income. For the six months ended December 31, 2019, no provision for income tax is required due to operating loss incurred. As of December 31, 2019, Rito International incurred $3,885,679 of cumulative net operating losses which can be carried forward to offset future taxable income at no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $641,137 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. People’s Republic of China 深圳市 汇图贸易有限公司 is operating in the People’s Republic of China (“PRC”) subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. For the six months ended December 31, 2019, no provision for income tax is required due to operating loss incurred. As of December 31, 2019, 深圳市 汇图贸易有限公司 incurred $3,904 of cumulative net operating losses which can be carried forward to offset future taxable income at no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $976 on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2019 and June 30, 2019: As of December 31, 2019 June 30, 2019 (unaudited) (audited) Deferred tax assets: Net operating loss carryforwards – United States of America $ 75,007 $ 67,845 – Hong Kong 641,137 581,411 – PRC 976 761 Less: valuation allowance 717,120 650,017 Deferred tax assets $ (717,120 ) $ (650,017 ) - - Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $717,120 as of December 31, 2019. During the six months ended December 31, 2019, the valuation allowance increased by $67,103, primarily relating to net operating loss carryforwards from the various tax regime. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 9 - RELATED PARTY TRANSACTIONS For the six months ended 2019 2018 Professional fee paid to: - Related party A $ 14,155 $ 1,746 - Related party B 7,000 10,803 - Related party C 783 294 Website design and maintenance fee paid to: - Related party D 299 179 Due to related company - Related party E (12,812 ) - $ (9,425 ) $ 13,023 Related party A, B, C and D are the fellow subsidiaries of a corporate shareholder of the Company, E is the holding company of the Company. The related party transactions are generally transacted in an arm-length basis at the current market value in the normal course of business. |
Concentrations of Risks
Concentrations of Risks | 6 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risks | NOTE 10 - CONCENTRATIONS OF RISKS (a) Major customers For the three months ended December 31, 2019, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the three months ended As of Revenues Percentage of Accounts Customer A 121,032 100 % 185,123 Total: $ 121,032 100 % $ 185,123 For the three months ended December 31, 2018, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the three months ended As of Revenues Percentage of Accounts Customer A $ 105,613 100 % $ 32,258 Total: $ 105,613 100 % $ 32,258 For the six months ended December 31, 2019, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the six months ended As of Revenues Percentage of Accounts Customer A 216,741 100 % 185,123 Total: $ 216,741 100 % $ 185,123 For the six months ended December 31, 2018, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the six months ended As of Revenues Percentage of Accounts Customer A $ 80,156 39 % $ 32,258 Customer B 125,032 61 % - Total: $ 205,188 100 % $ 32,258 (b) Major vendors For the three months ended December 31, 2019, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the three months ended As of Purchases Percentage of Accounts Vendor A $ 18,711 28 % $ - Total: $ 18,711 28 % $ - For the three months ended December 31, 2018, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the three months ended As of Purchases Percentage of Accounts Vendor A $ 57,294 100 % $ - Total: $ 57,294 100 % $ - For the six months ended December 31, 2019, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the six months ended As of Purchases Percentage of Accounts Vendor A $ 18,711 15 % $ - Total: $ 18,711 15 % $ - For the six months ended December 31, 2018, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the six months ended As of Purchases Percentage of Accounts Vendor A $ 99,156 54 % $ - Vendor B 50,013 27 % - Total: $ 149,169 81 % $ - (c) Credit risk Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its accounts receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 - COMMITMENTS AND CONTINGENCIES The Company leases an office premises and a farm premises in Hong Kong under a non-cancellable operating lease that expire on July 2020, with an aggregate fixed monthly rent of approximately $3,445 and $3,063, respectively; and a storage premises in Hong Kong under a non-cancellable operating lease that expire on July 2020, with an aggregate fixed monthly rent of approximately $82. The aggregate lease expense for the six months ended December 31, 2019 and 2018 were $39,031 and $18,968, respectively. As of December 31, 2019, the Company has the aggregate future minimum rental payments due under a non-cancellable operating lease in the next one years, as follows: Period ending December 31: 2019 $ - 2020 33,018 $ 33,018 |
Operating Lease
Operating Lease | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Lease | NOTE 12 - OPERATING LEASE The Company has operating lease agreements for three office spaces with remaining lease terms of 0.5 month to 30 months. The Company does not have any other leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. This standard did not have a significant impact on our liquidity or on our compliance with our financial covenants associated with our loans. The components of lease expense and supplemental cash flow information related to leases for the period are as follows: For the six months ended Lease cost Operating lease cost (included in general and admin in company’s unaudited condensed statement of operations) $ 37,059 Other information Cash paid for amounts included in the measurement of lease liabilities for the six months ended December 31, 2019 $ 37,493 Weighted average remaining lease term-operating leases (in years) 0.58 Average discount rate - operating leases 4 % The supplemental balance sheet information related to leases for the period is as follows: At Operating leases Long -term right-of-use assets 42,423 Short-term operating lease liabilities 42,423 Long-term operating lease liabilites - Total operating lease liabilities 42,423 Maturities of the Company’s lease liabilities are as follows: Year ending December 31, 2020 42,980 2021 - Total lease payments 42,980 Less: Imputed interest/present value discount (557 ) Present value of lease liabilities 42,423 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after December 31, 2019 up through the date the Company presented this condensed consolidated financial statements. During the period, the Company did not have any material recognizable subsequent event. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | ● Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Basis of Consolidation | ● Basis of consolidation The condensed consolidated financial statements include the accounts of Rito Group Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Use of Estimates | ● Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Cash and Cash Equivalents | ● Cash and cash equivalents The company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. |
Plant and Equipment | ● Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational: Categories Estimated useful life Residual value Leasehold improvement Over the shorter of estimated useful life or term of lease - Equipment 3-10 years - Motor Vehicle 3-10 years - Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations. |
Accounts Receivable | ● Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Revenue Recognition | ● Revenue recognition In accordance with the Accounting Standard Codification (“ASC”) Topic 605 “Revenue Recognition” Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. Revenue from trading of retail goods is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transferred to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. Based on limited operating history, management estimates that there were no sales return for the period reported. The Company derives its revenue from sales of goods to individuals. Generally, the Company recognizes revenue when products are sold and accepted by the customers and there are no continuing obligations to the customer. |
Cost of Revenues | ● Cost of revenues Cost of revenue includes the purchase cost of retail goods for re-sale to the customers. |
Income Taxes | ● Income taxes The provision of income taxes is determined in accordance with the provisions of ASC Topic 740, “Income Taxes” ASC Topic 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC Topic 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial conditions or results of operations for the six months ended December 31, 2019. The Company conducts major businesses in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority. |
Net Loss Per Share | ● Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share” |
Foreign Currencies Translation | ● Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company and its subsidiary in Anguilla is United States Dollars (“US$”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement” Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the 2019 2018 Period-end / average HK$ : US$1 exchange rate 7.7880 7.7500 Period-end / average CNY¥: US$1 exchange rate 6.9692 6.8800 |
Related Parties | ● Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Lease | ● Lease In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases, which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). Topic 842 will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. Topic 842 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. Topic 842 allows for a cumulative-effect adjustment in the period the new lease standard is adopted and will not require restatement of prior periods. Prior to July 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective July 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on July 1, 2019 resulted in the recognition of operating lease right-of-use assets of $42,423, lease liabilities for operating leases of $42,423, and a zero cumulative-effect adjustment to accumulated deficit. See Note 12 for further information regarding the impact of the adoption of ASC 842 on the Company’s financial statements. |
Fair Value of Financial Instruments | ● Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, accounts receivable, deposits and other receivables, accounts payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Company follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” Level 1 Level 2 Level 3 Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Recent Accounting Pronouncements | ● Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
Organization and Business Bac_2
Organization and Business Background (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's Subsidiaries | Details of the Company’s subsidiaries: Company name Place/date of incorporation Particulars of issued capital Equity ownership Principal activities 1. Sino Union International Limited (“Sino Union”) Anguilla January 3, 2014 84,500 shares of ordinary share of US$1 each 100% Investment holding 2. Rito International Enterprise Company Limited (“Rito International”) Hong Kong August 12, 2014 630,001 shares of ordinary share of HK$1 each 100% Trading of retail goods 3. 深圳市 汇图贸易有限公 司 Shenzhen, PRC June 27, 2018 500,000 shares of ordinary share of RMB 1 each 100% Trading of retail goods, business and agriculture technology consulting |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Plant and Equipment | Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational: Categories Estimated useful life Residual value Leasehold improvement Over the shorter of estimated useful life or term of lease - Equipment 3-10 years - Motor Vehicle 3-10 years - |
Schedule of Exchange Rates Translation | Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the 2019 2018 Period-end / average HK$ : US$1 exchange rate 7.7880 7.7500 Period-end / average CNY¥: US$1 exchange rate 6.9692 6.8800 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of December 31, 2019 June 30, 2019 (unaudited) (audited) Leasehold improvement $ 236,630 $ 236,630 Equipment 32,570 32,570 Motor vehicle 18,065 18,065 287,265 287,265 Less: Accumulated depreciation (132,995 ) (97,615 ) Total $ 154,270 $ 189,650 |
Long-Term Bank Loans (Tables)
Long-Term Bank Loans (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Bank Loans | As of December 31, 2019 June 30, 2019 (unaudited) (audited) Bank loan from financial institution in Hong Kong: The Hongkong and Shanghai Banking Corporation Limited $ 27,776 $ 32,166 27,776 32,166 Less: Current portion (4,605 ) (8,882 ) Long-term portion $ 23,171 $ 23,284 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Local (United States) and Foreign Components of Loss Before Income Taxes | For the six months ended December 31, 2019 and 2018, the local (United States) and foreign components of loss before income taxes were comprised of the following: For the six months ended 2019 2018 Tax jurisdictions from: – Local $ (34,105 ) $ (22,918 ) – Foreign, representing Anguilla (2,734 ) (2,072 ) Hong Kong (361,975 ) (486,891 ) PRC (862 ) (876 ) Loss before income taxes (399,676 ) (512,757 ) |
Schedule of Provision for Income Taxes | Provision for income taxes consisted of the following: For the six months ended 2019 2018 Current: – Local $ - $ - – Foreign (Hong Kong) - - – Foreign (PRC) - - Deferred: – Local - - – Foreign (Hong Kong) - - – Foreign (PRC) - - $ - $ - |
Schedule of Deferred Tax Assets | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2019 and June 30, 2019: As of December 31, 2019 June 30, 2019 (unaudited) (audited) Deferred tax assets: Net operating loss carryforwards – United States of America $ 75,007 $ 67,845 – Hong Kong 641,137 581,411 – PRC 976 761 Less: valuation allowance 717,120 650,017 Deferred tax assets $ (717,120 ) $ (650,017 ) - - |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the six months ended 2019 2018 Professional fee paid to: - Related party A $ 14,155 $ 1,746 - Related party B 7,000 10,803 - Related party C 783 294 Website design and maintenance fee paid to: - Related party D 299 179 Due to related company - Related party E (12,812 ) - $ (9,425 ) $ 13,023 |
Concentrations of Risks (Tables
Concentrations of Risks (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Major Customers with Revenue and Accounts Receivable | (a) Major customers For the three months ended December 31, 2019, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the three months ended As of Revenues Percentage of Accounts Customer A 121,032 100 % 185,123 Total: $ 121,032 100 % $ 185,123 For the three months ended December 31, 2018, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the three months ended As of Revenues Percentage of Accounts Customer A $ 105,613 100 % $ 32,258 Total: $ 105,613 100 % $ 32,258 For the six months ended December 31, 2019, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the six months ended As of Revenues Percentage of Accounts Customer A 216,741 100 % 185,123 Total: $ 216,741 100 % $ 185,123 For the six months ended December 31, 2018, the customers who accounted for 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows: For the six months ended As of Revenues Percentage of Accounts Customer A $ 80,156 39 % $ 32,258 Customer B 125,032 61 % - Total: $ 205,188 100 % $ 32,258 (b) Major vendors For the three months ended December 31, 2019, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the three months ended As of Purchases Percentage of Accounts Vendor A $ 18,711 28 % $ - Total: $ 18,711 28 % $ - For the three months ended December 31, 2018, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the three months ended As of Purchases Percentage of Accounts Vendor A $ 57,294 100 % $ - Total: $ 57,294 100 % $ - For the six months ended December 31, 2019, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the six months ended As of Purchases Percentage of Accounts Vendor A $ 18,711 15 % $ - Total: $ 18,711 15 % $ - For the six months ended December 31, 2018, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows: For the six months ended As of Purchases Percentage of Accounts Vendor A $ 99,156 54 % $ - Vendor B 50,013 27 % - Total: $ 149,169 81 % $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments Under Non-Cancellable Operating Lease | As of December 31, 2019, the Company has the aggregate future minimum rental payments due under a non-cancellable operating lease in the next one years, as follows: Period ending December 31: 2019 $ - 2020 33,018 $ 33,018 |
Operating Lease (Tables)
Operating Lease (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The components of lease expense and supplemental cash flow information related to leases for the period are as follows: For the six months ended Lease cost Operating lease cost (included in general and admin in company’s unaudited condensed statement of operations) $ 37,059 Other information Cash paid for amounts included in the measurement of lease liabilities for the six months ended December 31, 2019 $ 37,493 Weighted average remaining lease term-operating leases (in years) 0.58 Average discount rate - operating leases 4 % |
Schedule of Supplemental Balance Sheet | The supplemental balance sheet information related to leases for the period is as follows: At Operating leases Long -term right-of-use assets 42,423 Short-term operating lease liabilities 42,423 Long-term operating lease liabilites - Total operating lease liabilities 42,423 |
Schedule of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Year ending December 31, 2020 42,980 2021 - Total lease payments 42,980 Less: Imputed interest/present value discount (557 Present value of lease liabilities 42,423 |
Organization and Business Bac_3
Organization and Business Background - Summary of Company's Subsidiaries (Details) | 6 Months Ended |
Dec. 31, 2019 | |
Sino Union [Member] | |
Company name | Sino Union International Limited ("Sino Union") |
Place/date of incorporation | Anguilla January 3, 2014 |
Particulars of issued capital | 84,500 shares of ordinary share of US$1 each |
Equity ownership | 100.00% |
Principal activities | Investment holding |
Rito International [Member] | |
Company name | Rito International Enterprise Company Limited ("Rito International") |
Place/date of incorporation | Hong Kong August 12, 2014 |
Particulars of issued capital | 630,001 shares of ordinary share of HK$1 each |
Equity ownership | 100.00% |
Principal activities | Trading of retail goods |
Shenzhen Huitu Trade [Member] | |
Company name | Shenzhen Huitu Trading Co., Ltd. |
Place/date of incorporation | Shenzhen, PRC June 27, 2018 |
Particulars of issued capital | 500,000 shares of ordinary share of RMB 1 each |
Equity ownership | 100.00% |
Principal activities | Trading of retail goods, business and agriculture technology consulting |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accumulated deficit | $ (4,373,378) | $ (4,373,378) | $ (3,973,702) | ||
Net operating loss | $ (164,428) | $ (242,092) | $ (399,676) | $ (512,757) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Jul. 02, 2019 | |
Percentage of recognized benefit likelihood | Greater than 50% | |
Right-of-use assets | $ 42,423 | |
Operating lease liabilities | $ 42,423 | |
ASC 842 [Member] | ||
Right-of-use assets | $ 42,423 | |
Operating lease liabilities | $ 42,423 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Plant and Equipment (Details) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Leasehold Improvement [Member] | |
Estimated useful life, description | Over the shorter of estimated useful life or term of lease |
Residual value | |
Equipment [Member] | |
Residual value | |
Equipment [Member] | Minimum [Member] | |
Estimated useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Estimated useful life | 10 years |
Motor Vehicle [Member] | |
Residual value | |
Motor Vehicle [Member] | Minimum [Member] | |
Estimated useful life | 3 years |
Motor Vehicle [Member] | Maximum [Member] | |
Estimated useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Exchange Rates Translation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Period-end / Average HK$ : US$1 Exchange Rate [Member] | ||
Period-end / average exchange rate | 7.7880 | 7.7500 |
Period-end / Average CNY¥ : US$1 Exchange Rate [Member] | ||
Period-end / average exchange rate | 6.9692 | 6.8800 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Nov. 30, 2019 | |
Equity [Abstract] | ||
Number of common stock shares issued during the period | 50,000 | |
Share price per share | $ 2 | $ 2 |
Proceeds from issuance of common stock | $ 100,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense classified as operating expenses | $ 35,380 | $ 54,284 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Plant and Equipment, gross | $ 287,265 | $ 287,265 |
Less: Accumulated depreciation | (132,995) | (97,615) |
Total | 154,270 | 189,650 |
Leasehold Improvement [Member] | ||
Plant and Equipment, gross | 236,630 | 236,630 |
Equipment [Member] | ||
Plant and Equipment, gross | 32,570 | 32,570 |
Motor Vehicle [Member] | ||
Plant and Equipment, gross | $ 18,065 | $ 18,065 |
Long-Term Bank Loans (Details N
Long-Term Bank Loans (Details Narrative) - Hongkong and Shanghai Banking Corporation Limited [Member] | 1 Months Ended | |
Jul. 31, 2017USD ($) | Jul. 31, 2017HKD ($) | |
Principal amount of loan | $ 45,032 | |
Loan interest rate | 0.70% | |
Number of installments | 60 monthly installments | 60 monthly installments |
Loan monthly installment amount | $ 1,066 | |
Loan maturity date | Jul. 31, 2022 | Jul. 31, 2022 |
Hong Kong, Dollars [Member] | ||
Principal amount of loan | $ 349,000 | |
Loan monthly installment amount | $ 8,260 |
Long-Term Bank Loans - Schedule
Long-Term Bank Loans - Schedule of Long-Term Bank Loans (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Bank loan | $ 27,776 | $ 32,166 |
Less: Current portion | (4,605) | (8,882) |
Long-term portion | 23,171 | 23,284 |
Hongkong and Shanghai Banking Corporation Limited [Member] | ||
Bank loan | $ 27,776 | $ 32,166 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Deferred tax assets valuation allowance | $ 717,120 |
Change in valuation allowance | 67,103 |
United States of America [Member] | |
Net operating losses carryforwards | $ 357,179 |
Net operating loss carryforwards expiration year | 2037 |
Deferred tax assets valuation allowance | $ 75,007 |
Hong Kong [Member] | |
Net operating losses carryforwards | 3,885,679 |
Deferred tax assets valuation allowance | $ 641,137 |
Statutory income tax rate | 16.50% |
PRC [Member] | |
Net operating losses carryforwards | $ 3,904 |
Deferred tax assets valuation allowance | $ 976 |
Statutory income tax rate | 25.00% |
Income Taxes - Schedule of Loca
Income Taxes - Schedule of Local (United States) and Foreign Components of Loss Before Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss before income taxes | $ (164,428) | $ (242,092) | $ (399,676) | $ (512,757) |
Anguilla [Member] | ||||
Loss before income taxes | (2,734) | (2,072) | ||
Hong Kong [Member] | ||||
Loss before income taxes | (361,975) | (486,891) | ||
PRC [Member] | ||||
Loss before income taxes | (862) | (876) | ||
Local [Member] | ||||
Loss before income taxes | $ (34,105) | $ (22,918) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provision for income taxes Current - Local | ||||
Provision for income taxes Deferred - Local | ||||
Income tax expense | ||||
Hong Kong [Member] | ||||
Provision for income taxes Current - Foreign | ||||
Provision for income taxes Deferred - Foreign | ||||
PRC [Member] | ||||
Provision for income taxes Current - Foreign | ||||
Provision for income taxes Deferred - Foreign |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Deferred tax assets, gross | $ 717,120 | $ 650,017 |
Less: valuation allowance | (717,120) | (650,017) |
Deferred tax assets | ||
United States of America [Member] | ||
Deferred tax assets, gross | 75,007 | 67,845 |
Hong Kong [Member] | ||
Deferred tax assets, gross | 641,137 | 581,411 |
PRC [Member] | ||
Deferred tax assets, gross | $ 976 | $ 761 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transaction, Total | $ (9,425) | $ 13,023 |
Related Party A [Member] | ||
Professional fee paid | 14,155 | 1,746 |
Related Party B [Member] | ||
Professional fee paid | 7,000 | 10,803 |
Related Party C [Member] | ||
Professional fee paid | 783 | 294 |
Related Party D [Member] | ||
Website design and maintenance fee paid | 299 | 179 |
Related Party E [Member] | ||
Due to related company | $ (12,812) |
Concentrations of Risks (Detail
Concentrations of Risks (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues and Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Cost of Revenues and Accounts Payable [Member] | Product Concentration Risk [Member] | Vendor [Member] | ||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Concentrations of Risks - Sched
Concentrations of Risks - Schedule of Major Customers with Revenue and Accounts Receivable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 121,032 | $ 105,613 | $ 216,741 | $ 205,188 |
Revenue [Member] | Customer Concentration Risk [Member] | ||||
Revenue | $ 121,032 | $ 105,613 | $ 216,741 | $ 205,188 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Revenue | $ 121,032 | $ 105,613 | $ 216,741 | $ 80,156 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 39.00% |
Revenue [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Revenue | $ 125,032 | |||
Percentage of revenue | 61.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Accounts receivable | $ 185,123 | $ 32,258 | $ 185,123 | $ 32,258 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Accounts receivable | 185,123 | 32,258 | 185,123 | 32,258 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Accounts receivable | ||||
Purchases [Member] | Product Concentration Risk [Member] | ||||
Revenue | $ 18,711 | $ 57,294 | $ 18,711 | $ 149,169 |
Percentage of revenue | 0.28% | 100.00% | 15.00% | 81.00% |
Accounts payable | ||||
Purchases [Member] | Product Concentration Risk [Member] | Vendor A [Member] | ||||
Revenue | $ 18,711 | $ 57,294 | $ 18,711 | $ 99,156 |
Percentage of revenue | 0.28% | 100.00% | 15.00% | 54.00% |
Accounts payable | ||||
Purchases [Member] | Product Concentration Risk [Member] | Vendor B [Member] | ||||
Revenue | $ 50,013 | |||
Percentage of revenue | 27.00% | |||
Accounts Payable [Member] | Product Concentration Risk [Member] | ||||
Accounts payable | ||||
Accounts Payable [Member] | Product Concentration Risk [Member] | Vendor A [Member] | ||||
Accounts payable | ||||
Accounts Payable [Member] | Product Concentration Risk [Member] | Vendor B [Member] | ||||
Accounts payable |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Aggregate payment for lease | $ 39,031 | $ 18,968 |
Hong Kong [Member] | Farm Premises [Member] | ||
Operating lease expiration date | Jul. 31, 2020 | |
Aggregate payment for lease | $ 3,445 | $ 3,063 |
Hong Kong [Member] | Storage Premises [Member] | ||
Operating lease expiration date | Jul. 31, 2020 | |
Aggregate payment for lease | $ 82 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rental Payments Under Non-Cancellable Operating Lease (Details) | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | |
2020 | 33,018 |
Total | $ 33,018 |
Operating Lease (Details Narrat
Operating Lease (Details Narrative) | 6 Months Ended |
Dec. 31, 2019 | |
Lease Agreements [Member] | |
Lease term description | The Company has operating lease agreements for three office spaces with remaining lease terms of 0.5 month to 30 months. The Company does not have any other leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. |
Operating Lease - Schedule of L
Operating Lease - Schedule of Lease Expense and Supplemental Cash Flow Information (Details) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost (included in general and admin in company's unaudited condensed statement of operations) | $ 37,059 |
Cash paid for amounts included in the measurement of lease liabilities | $ 37,493 |
Weighted average remaining lease term-operating leases (in years) | 6 months 29 days |
Average discount rate - operating leases | 4.00% |
Operating Lease - Schedule of S
Operating Lease - Schedule of Supplemental Balance Sheet (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Leases [Abstract] | ||
Long -term right-of-use assets | $ 42,423 | |
Short-term operating lease liabilities | 42,423 | |
Long-term operating lease liabilites | ||
Total operating lease liabilities | $ 42,423 |
Operating Lease - Schedule of M
Operating Lease - Schedule of Maturities of Lease Liabilities (Details) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 42,980 |
2021 | |
Total lease payments | 42,980 |
Less: Imputed interest/present value discount | (557) |
Present value of lease liabilities | $ 42,423 |