Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Nov. 13, 2020 | Dec. 31, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | Shengda Network Technology, Inc. | ||
Entity Central Index Key | 0001753931 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2020 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 6,960,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 4,271,326 | $ 17,202 |
Prepaid expense | 4,129 | |
Total Current Assets | 4,275,455 | 17,202 |
Total Assets | 4,275,455 | 17,202 |
Current Liabilities | ||
Accounts payable | 47,085 | 755 |
Related party loans | 19,974 | 14,974 |
Payroll payable | 3,356 | |
Tax payable | 2,526 | |
Advances and deposits | 3,972,500 | |
Advances and deposits - Related party | 302,000 | |
Other payable | 23,061 | |
Other payable - Related party | 1,330 | |
Total Liabilities | 4,371,832 | 15,729 |
Stockholders' Equity (deficit) | ||
Preferred Stock, $0.001 par value, 20,000,000 shares authorized; | ||
Common Stock, $0.001 par value, 1,000,000,000 shares authorized; 6,960,000 and 6,960,000 shares issued and outstanding at June 30, 2020 and June 30, 2019, respectively | 6,960 | 6,960 |
Additional paid-in capital | 16,310 | 17,640 |
Accumulated deficit | (80,130) | (23,127) |
Accumulated other comprehensive loss | (39,516) | |
Total stockholders' equity (deficit) | (96,376) | 1,473 |
Total Liabilities and Stockholders' Equity | $ 4,275,455 | $ 17,202 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares issued | ||
Preferred Stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 6,960,000 | 6,960,000 |
Common stock, shares outstanding | 6,960,000 | 6,960,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 253,803 | $ 1,500 |
Cost of Revenue | 213,617 | |
Gross Profit | 40,185 | 1,500 |
Expenses | ||
Professional expenses | 86,152 | 16,938 |
General and administrative expenses | 11,167 | 5,881 |
Total expenses | 97,319 | 22,819 |
Loss from operations | (57,134) | (21,319) |
Other income (expense) | ||
Interest income | 161 | |
Bank charges | (30) | |
Other income, net | 131 | |
Loss before income taxes | (57,003) | (21,319) |
Income Tax Expense | ||
Net loss after tax | (57,003) | (21,319) |
Other comprehensive income | ||
Foreign currency translation loss | (39,516) | |
Total Comprehensive Loss | $ (96,519) | $ (21,319) |
Basic and diluted net loss per common share | $ (0.01) | $ 0 |
Weighted-average number of common shared outstanding | 6,960,000 | 5,568,057 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning balance at Jun. 30, 2018 | $ 5,000 | $ (1,808) | $ 3,192 | ||
Beginning balance, shares at Jun. 30, 2018 | 5,000,000 | ||||
Issuance of common shares for cash | $ 1,960 | 17,640 | 19,600 | ||
Issuance of common shares for cash, shares | 1,960,000 | ||||
Net income (loss) after tax | (21,319) | (21,319) | |||
Foreign currency translation adjustment | |||||
Ending balance at Jun. 30, 2019 | $ 6,960 | 17,640 | (23,127) | 1,473 | |
Ending balance, shares at Jun. 30, 2019 | 6,960,000 | ||||
Issuance of common shares for cash | 0 | ||||
Investment | (1,330) | (1,330) | |||
Net income (loss) after tax | (57,003) | (57,003) | |||
Foreign currency translation adjustment | (39,516) | (39,516) | |||
Ending balance at Jun. 30, 2020 | $ 6,960 | $ 16,310 | $ (80,130) | $ (39,516) | $ (96,376) |
Ending balance, shares at Jun. 30, 2020 | 6,960,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (57,003) | $ (21,319) |
Changes in Operating Assets and Liabilities: | ||
Prepaid expenses | (4,144) | 4,166 |
Accounts payable | 46,330 | 755 |
Payroll payable | 3,373 | |
Tax payable | 2,538 | |
Other payable | 23,061 | |
Other payable - Related party | 1,330 | |
Net cash provided by/ (used in) operating activities | 14,155 | (16,398) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Related party loan | 5,000 | 9,000 |
Proceeds from sales of common stock to related party | 302,000 | |
Proceeds from sales of common stock | 3,972,500 | 19,600 |
Net cash provided by financing activities | 4,279,500 | 28,600 |
Effect of exchange rate fluctuation on cash and cash equivalents | (39,531) | |
Net increase in cash | 4,254,124 | 12,202 |
Cash, beginning of period | 17,202 | 5,000 |
Cash, end of period | 4,271,326 | 17,202 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for: Income tax | ||
Cash paid during the period for: Interest |
Organization and Operations
Organization and Operations | 12 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Note 1 – Organization and Operations Shengda Network Technology Inc. (formerly known as “Soltrest Inc.” or the “Company”), was incorporated on March 14, 2018 under the laws of the State of Nevada. The Company’s principle business is the development of internet and personal computer security software products. The Company is engaged in E- Commerce business. Risk and Uncertainty Concerning COVID-19 Pandemic In December 2019, an outbreak of a novel strain of coronavirus (COVID-19). On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. The Company is currently monitoring the outbreak of COVID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread. While the Company’s operations are principally located outside the United States, we utilize various consultants located in the United States, we participate in a global supply chain, and the existence of a worldwide pandemic, the fear associated with COVID-19, or any, pandemic, and the reactions of governments around the world in response to COVID-19, or any, pandemic, to regulate the flow of labor and products and impede the travel of personnel, may impact our ability to conduct normal business operations, which could adversely affect our results of operations and liquidity. Disruptions to our supply chain and business operations, or to our suppliers’ or customers’ supply chains and business operations, could include disruptions from the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, personnel absences, or restrictions on the shipment of our or our suppliers’ or customers’ products, any of which could have adverse ripple effects on our manufacturing output and delivery schedule. Any of these uncertainties could have a material adverse effect on our business, financial condition or results of operations. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principle of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker” and Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd., in China. All significant inter-company accounts and transactions have been eliminated in consolidation. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance. The Company’s bank account in the United States is protected by FDIC insurance. As of June 30, 2020 and 2019, the Company’s bank account in the United States had no balances exceeding FDIC insurance of $250,000. The Company’s bank account in PRC is protected by FSD insurance. As of June 30, 2020 and 2019, the Company’s bank account in PRC had $4,269,349 and 0; respectively exceeding FSD insurance of RMB 500,000 as of June 30, 2020. Major Customer The Company has one major customer that accounted for 100% of revenues totaling $253,803 for the year ended June 30, 2020. Major Vendor The Company has one major vendor that accounted for 100% of cost of sales totaling $213,617 for the year ended June 30, 2020. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. For valuation allowance for deferred tax assets, Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the consolidated financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash Equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. Revenue Recognition The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In that determination, under ASC 606, the Company follows a five-step model that includes: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied. Fair Value Measurements The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: ● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. ● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Our other current financial assets and current financial liabilities have fair values that approximate their carrying values. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2020, the Company doesn’t have any finance lease. Commitment and Contingencies None Income Tax Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions. Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not. Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgement, the more-likely-than-not threshold is met, but the position does not rise to the level of highly certain based upon the technical merits of the position. Estimated interest and penalties related to uncertain tax positions are included as a component of income tax expense. Currency Translation The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss). |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 3 - Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The adoption of ASU 2018-13 does not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is evaluating the impact that adoption of ASU 2019-12 will have on its consolidated financial statements. |
Going Concern
Going Concern | 12 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 4 – Going Concern The consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the consolidated financial statements, the Company had a net loss from operations of $57,003, net cash provided by operating activities for the year ended June 30, 2020 was $14,155, and had an accumulated deficit of $80,130 as of June 30, 2020. These factors raise doubt about the Company’s ability to continue as a going concern. The Company is attempting to commence full-scale operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations long-term. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable | Note 5 - Accounts Payable As of June 30, 2020, and 2019, accounts payable amounted to $47,085 and $755, respectively. Accounts payable mainly comprise of professional fee. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 6 – Leases The Company has an operating lease for the rental of office space. Rent expense for the operating lease for the twelve months ended June 30, 2020, and 2019, was $796 and $0, respectively. As of June 30, 2020, the Company has prepaid rent up until December 10, 2020 in the amount of $2,919. |
Advances and Deposits
Advances and Deposits | 12 Months Ended |
Jun. 30, 2020 | |
Advances And Deposits | |
Advances and Deposits | Note 7 – Advances and Deposits Advances and deposits amounted to $4,274,500 and $0, as of June 30, 2020 and 2019, respectively, of which $302,000 pertains to a related party (See Note 11). The advances and deposits are the proceeds from the sale of 13,899,000 common stock at the sale price range from $0.0002 to $2 per share, to 72 unrelated and 2 related parties (See Note 11) As these common shares were cancelled soon after issuance in the month of June 2020 due to legal non-compliance, the proceeds are reported as advances and deposits under current liabilities. |
Other Payable
Other Payable | 12 Months Ended |
Jun. 30, 2020 | |
Other Payable | |
Other Payable | Note 8 – Other Payable As of June 30, 2020, and 2019, other payable amounted to $24,391 and $0, respectively. Other Payable as of June 30, 2020 include $1,330 payable to related party (See Note 11). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9– Stockholders’ Equity Shares Authorized On March 30, 2020, the Company filed a Certificate of Amendment with the State of Nevada, increasing the number of authorized shares to 1,020,000,000 par value $0.001; comprising of 1,000,000,000 common stock and 20,000,000 preferred stock. Common Stock On March 14, 2018 the Company exchanged 5,000,000 shares of common stock to the former President in return of her services valued at $5,000. Pursuant to a Form S-1 Registration Statement, in June, 2020, the Company sold 1,960,000 shares of Common Stock, par value of $0.001 per share, for the total aggregate proceeds of $19,600.As a result of all common stock issuances, the total issued and outstanding shares of common stock were 6,960,000 as of June 30, 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions Related parties with whom the Company had transactions are: Related Parties Relationship HangJin Chen President/CEO/CFO/Secretary/Director Youcheng Chen Father of CEO HangJin Chen Li Weiwei President/CEO/CFO/Secretary/Director (Former) On March 5, 2020, pursuant to an Agreement for the Purchase of Common Stock (Agreement), dated February 27, 2020, the Company’s CEO (representing himself and several other purchasers) purchased 6,958,000 shares of the Company’s common stock from the previous sole officer and director and other shareholders. The purchase of the stock resulted in a change of control of the Company with the aggregate shares purchased in this transaction representing approximately 99.97% of the then issued and outstanding shares of the Company. On June 20, 2020, the Company issued 10,000,000 shares of common stock to HangJin Chen, the Company’s CEO at $0.0002 per share which were subsequently cancelled on June 30, 2020. The consideration of $2,000 is recorded as advances and deposits under current liabilities in the consolidated balance sheets. On June 16, 2020, the Company issued 300,000 shares of common stock to a related party (the Company’s CEO’s father) at $1.00 per share which was subsequently cancelled on June 30, 2020. The consideration of $300,000 is recorded as advances and deposits under current liabilities in the consolidated balance sheets. Loan from related party represent the advances to the Company by former President and Director in the amount of $19,974 and $14,974 as of June 30, 2020, and 2019, respectively. The loan is unsecured, non-interest bearing and due on demand. The Company has not recorded any imputed interest expense for the years ended June 30, 2020 and 2019. On April 20, 2020, the Company purchased 10,000 shares of common stock of an entity Peaker for a total consideration of $1,330. These shares consisted of 100% of the then issued and outstanding shares of common stock of Peaker. HangJin Chen is the CEO and shareholder of the Company. Youcheng Chen is the Company’s CEO’s father and the CEO and a shareholder of Peaker. As a result, the transaction is deemed as a related party acquisition and accounted for accordingly. |
Income Tax Provision
Income Tax Provision | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Note 11 – Income Tax Provision Income tax expense for the years ended June 30, 2020 and 2019 is summarized as follows: June 30, 2020 June 30, 2019 Deferred: Federal $ (11,971 ) $ (4,477 ) State 11,971 4,477 Income tax expense (benefit) $ — $ — Deferred Tax Assets At June 30, 2020, the Company had net operating loss (“NOL”) carry-forwards for Federal income tax purposes of $78,322 that may be offset against future taxable income. No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying consolidated financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets of approximately $16,447 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance. At June 30, 2019, the Company had NOL carry–forwards for Federal income tax purposes of $21,319 that may be offset against future taxable income. No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying consolidated financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets of approximately $4,477 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The current valuation of tax allowance is n/a as of June 30, 2020 and 2019. Components of deferred tax assets are as follows: June 30, 2020 June 30, 2019 Net Deferred Tax Asset Net Operating Loss Carry-Forward $ 78,322 $ 21,319 Effective tax rate 21 % 21 % Expected Income Tax Benefit from NOL Carry-Forward 16,447 4,477 Less: Valuation Allowance (16,447 ) (4,477 ) Deferred Tax Asset, Net of Valuation Allowance $ - $ - Income Tax Provision in the Statement of Operations A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: For the year For the year Federal statutory income tax rate 21.0 % 21.0 % Increase (reduction) in income tax provision resulting from: Net Operating Loss (NOL) carry-forward (21.0 %) (21.0 %) Effective income tax rate 0.0 % 0.0 % Tax Returns Remaining subject to IRS Audits The Company has filed its corporation income tax return for the reporting period ended June 30, 2019, which will remain subject to examination by the Internal Revenue Service under the statute of limitations for a period of three (3) years from the date it is filed. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 12 – ACQUISITIONS On April 20, 2020, the Company purchased 10,000 shares of common stock of Peaker for a total consideration of $1,330. These shares comprised of 100% of the then issued and outstanding shares of common stock of Peaker. Under ASC 805-50-30-5, there is no change in basis for the net assets received because there is no change in control over the net asset or equity interests from the parent’s perspective. A difference between any proceeds transferred and the carrying amounts of the net assets received is recognized in additional paid-in capital in the receiving entity’s separate financial statements. The following table summarizes the consideration paid for Peaker and the amounts of assets acquired and liabilities assumed recognized at the acquisition date: Purchase price $ 1,330 Cash $ - Total assets: $ - Less: liabilities assumed - Net assets acquired - Purchase price in excess of net assets acquired $ 1,330 HangJin Chen is the CEO and shareholder of the Company. Youcheng Chen is the CEO and shareholder of Peaker and the Company’s CEO’s father. As a result, the acquisition is deemed to be under common control and the excess amount paid over the total assets and total liabilities is recorded as a reduction of Additional paid in Capital. Peaker was formed in 2018. No unaudited pro-forma combined statements of operations are presented to illustrate the estimated effects of the merger of Peaker by the Company. On May 15, 2020, Peaker set up a Company Zhejiang Jingmai Electronic Commerce Ltd., in China of which, Peaker is the sole shareholder. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2020 to the date these consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Principle of Consolidation | Principle of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker” and Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd., in China. All significant inter-company accounts and transactions have been eliminated in consolidation. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance. The Company’s bank account in the United States is protected by FDIC insurance. As of June 30, 2020 and 2019, the Company’s bank account in the United States had no balances exceeding FDIC insurance of $250,000. The Company’s bank account in PRC is protected by FSD insurance. As of June 30, 2020 and 2019, the Company’s bank account in PRC had $4,269,349 and 0; respectively exceeding FSD insurance of RMB 500,000 as of June 30, 2020. Major Customer The Company has one major customer that accounted for 100% of revenues totaling $253,803 for the year ended June 30, 2020. Major Vendor The Company has one major vendor that accounted for 100% of cost of sales totaling $213,617 for the year ended June 30, 2020. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. For valuation allowance for deferred tax assets, Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the consolidated financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In that determination, under ASC 606, the Company follows a five-step model that includes: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied. |
Fair Value Measurements | Fair Value Measurements The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: ● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. ● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Our other current financial assets and current financial liabilities have fair values that approximate their carrying values. |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2020, the Company doesn’t have any finance lease. |
Commitment and Contingencies | Commitment and Contingencies None |
Income Tax | Income Tax Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions. Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not. Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgement, the more-likely-than-not threshold is met, but the position does not rise to the level of highly certain based upon the technical merits of the position. Estimated interest and penalties related to uncertain tax positions are included as a component of income tax expense. |
Currency Translation | Currency Translation The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss). |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Related parties with whom the Company had transactions are: Related Parties Relationship HangJin Chen President/CEO/CFO/Secretary/Director Youcheng Chen Father of CEO HangJin Chen Li Weiwei President/CEO/CFO/Secretary/Director (Former) |
Income Tax Provision (Tables)
Income Tax Provision (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expenses | Income tax expense for the years ended June 30, 2020 and 2019 is summarized as follows: June 30, 2020 June 30, 2019 Deferred: Federal $ (11,971 ) $ (4,477 ) State 11,971 4,477 Income tax expense (benefit) $ — $ — |
Schedule of Components of Deferred Tax Assets | Components of deferred tax assets are as follows: June 30, 2020 June 30, 2019 Net Deferred Tax Asset Net Operating Loss Carry-Forward $ 78,322 $ 21,319 Effective tax rate 21 % 21 % Expected Income Tax Benefit from NOL Carry-Forward 16,447 4,477 Less: Valuation Allowance (16,447 ) (4,477 ) Deferred Tax Asset, Net of Valuation Allowance $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: For the year For the year Federal statutory income tax rate 21.0 % 21.0 % Increase (reduction) in income tax provision resulting from: Net Operating Loss (NOL) carry-forward (21.0 %) (21.0 %) Effective income tax rate 0.0 % 0.0 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed Recognized at the Acquisition | The following table summarizes the consideration paid for Peaker and the amounts of assets acquired and liabilities assumed recognized at the acquisition date: Purchase price $ 1,330 Cash $ - Total assets: $ - Less: liabilities assumed - Net assets acquired - Purchase price in excess of net assets acquired $ 1,330 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020CNY (¥) | |
Cash at FDIC insurance | $ 250,000 | $ 250,000 | |
Cash at bank | 4,269,349 | 0 | |
Sales | 253,803 | 1,500 | |
Cost of sales | $ 213,617 | ||
Revenue [Member] | One Major Customer [Member] | |||
Concentrations of credit risk percentage | 100.00% | ||
Revenue [Member] | One Major Vendor [Member] | |||
Concentrations of credit risk percentage | 100.00% | ||
FSD Insurance [Member] | RMB [Member] | |||
Cash at FDIC insurance | ¥ | ¥ 500,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net loss | $ (57,003) | $ (21,319) |
Net cash provided by operating activities | 14,155 | (16,398) |
Accumulated deficit | $ (80,130) | $ (23,127) |
Accounts Payable (Details Narra
Accounts Payable (Details Narrative) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 47,085 | $ 755 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Rental expense | $ 796 | $ 0 |
Lease maturity date | Dec. 10, 2020 | |
Prepaid rent | $ 2,919 |
Advances and Deposits (Details
Advances and Deposits (Details Narrative) | 12 Months Ended | |
Jun. 30, 2020USD ($)Integer$ / sharesshares | Jun. 30, 2019USD ($) | |
Advances and deposits | $ | $ 4,274,500 | $ 0 |
Advances and deposits related party | $ | $ 302,000 | |
Proceeds from sale of advances and deposits | shares | 13,899,000 | |
Number of unrelated party | Integer | 72 | |
Number of related party | Integer | 2 | |
Minimum [Member] | ||
Sale price of advances and deposits | $ / shares | $ 0.0002 | |
Maximum [Member] | ||
Sale price of advances and deposits | $ / shares | $ 2 |
Other Payable (Details Narrativ
Other Payable (Details Narrative) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Other Payable | ||
Other payable | $ 23,061 | |
Other payable related party | $ 1,330 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Mar. 14, 2018 | Jun. 30, 2020 | Mar. 30, 2020 | Jun. 30, 2019 |
Increasing the number of authorized stock | 1,020,000,000 | |||
Number of authorized stock par value | $ 0.001 | |||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||
Number of common stock shares sold | 1,960,000 | |||
Proceeds from sale of common stock | $ 19,600 | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares issued | 6,960,000 | 6,960,000 | ||
Common stock, shares outstanding | 6,960,000 | 6,960,000 | ||
President [Member] | ||||
Number of common stock issued for service, shares | 5,000,000 | |||
Number of common stock issued for service | $ 5,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jun. 20, 2020 | Jun. 16, 2020 | Apr. 20, 2020 | Mar. 05, 2020 | Mar. 14, 2018 | Jun. 30, 2020 | Jun. 30, 2019 |
Related party loans | $ 19,974 | $ 14,974 | |||||
Number of common stock purchased shares | 1,960,000 | ||||||
Total consideration of common stock | $ 19,600 | ||||||
Peaker [Member] | |||||||
Shares purchased in transaction percentage | 100.00% | ||||||
Number of common stock purchased shares | 10,000 | ||||||
Total consideration of common stock | $ 1,330 | ||||||
Previous Sole Officer and Director [Member] | |||||||
Number of common stock issued, shares | 6,958,000 | ||||||
Shares purchased in transaction percentage | 99.97% | ||||||
CEO [Member] | |||||||
Number of common stock cancelled | 10,000,000 | ||||||
Share issued price per share | $ 0.0002 | ||||||
Advances and deposits under liability | $ 2,000 | ||||||
CEO's Father [Member] | |||||||
Number of common stock cancelled | 300,000 | ||||||
Share issued price per share | $ 1 | ||||||
Advances and deposits under liability | $ 300,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2020 | |
HangJin Chen [Member] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director |
Youcheng Chen [Member] | |
Relationship with related parties | Father of CEO HangJin Chen |
Li Weiwei [Member] | |
Relationship with related parties | President/ CEO/CFO/Secretary/Director (Former) |
Income Tax Provision (Details N
Income Tax Provision (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry-forwards for federal income tax | $ 78,322 | $ 21,319 |
Deferred tax assets | $ 16,447 | $ 4,477 |
Revenue service under statute of limitations | 3 years |
Income Tax Provision - Schedule
Income Tax Provision - Schedule of Income Tax Expenses (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Deferred: Federal | $ (11,971) | $ (4,477) |
Deferred: State | 11,971 | 4,477 |
Income tax expense (benefit) |
Income Tax Provision - Schedu_2
Income Tax Provision - Schedule of Components of Deferred Tax Assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Net Operating Loss Carry-Forward | $ 78,322 | $ 21,319 |
Effective tax rate | 21.00% | 21.00% |
Expected Income Tax Benefit from NOL Carry-Forward | $ 16,447 | $ 4,477 |
Less: Valuation Allowance | (16,447) | (4,477) |
Deferred Tax Asset, Net of Valuation Allowance |
Income Tax Provision - Schedu_3
Income Tax Provision - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
Increase (reduction) in income tax provision resulting from: Net Operating Loss (NOL) carry-forward | (21.00%) | (21.00%) |
Effective income tax rate | 0.00% | 0.00% |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) - USD ($) | Apr. 20, 2020 | Mar. 14, 2018 |
Number of common stock purchased shares | 1,960,000 | |
Total consideration of common stock | $ 19,600 | |
Peaker [Member] | ||
Number of common stock purchased shares | 10,000 | |
Total consideration of common stock | $ 1,330 | |
Shares purchased in transaction percentage | 100.00% |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed Recognized at the Acquisition (Details) | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Business Combinations [Abstract] | |
Purchase price | $ 1,330 |
Cash | |
Total assets: | |
Less: liabilities assumed | |
Net assets acquired | |
Purchase price in excess of net assets acquired | $ 1,330 |