Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | Aug. 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Shengda Network Technology, Inc. | |
Entity Central Index Key | 0001753931 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Current Fiscal Year End Date | --06-30 | |
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 Common Stock, Shares Outstanding | 14,009,945 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 317,090 | $ 4,271,326 |
Account receivable | 3,537,706 | |
Advance to suppliers | 634,353 | |
Loan receivable | 8,242,010 | |
Prepaid expense | 675 | 4,129 |
Total Current Assets | 12,731,834 | 4,275,455 |
Right of use asset - operating | 3,683 | |
Property And Equipment, Net | 71,251 | |
Total Assets | 12,806,768 | 4,275,455 |
Current Liabilities | ||
Accounts payable | 172,377 | 47,085 |
Related party loans | 19,974 | 19,974 |
Accrued expenses and other payables | 85,140 | 26,416 |
Tax payable | 276,511 | 2,526 |
Advances and deposits | 30,526 | 3,972,500 |
Advances and deposits - related party | 2,000 | 302,000 |
Operating lease liabilities | 4,636 | |
Other payable - related party | 1,330 | |
Total Liabilities | 591,164 | 4,371,831 |
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;14,009,945 and 6,960,000 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively | 14,010 | 6,960 |
Additional paid-in capital | 10,513,985 | 16,310 |
Retained earnings (Accumulated loss) | 944,920 | (80,130) |
Accumulated other comprehensive income (loss) | 742,690 | (39,516) |
Total Stockholders' Equity (Deficit) | 12,215,605 | (96,376) |
Total Liabilities and Stockholders' Equity | $ 12,806,768 | $ 4,275,455 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 14,009,945 | 6,960,000 |
Common stock, shares outstanding | 14,009,945 | 6,960,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 765,616 | $ 8,499,788 | ||
Cost of Revenue | 659,003 | 6,969,140 | ||
Gross Profit | 106,613 | 1,530,648 | ||
Expenses | ||||
Professional expenses | 20,789 | 27,445 | 55,464 | 44,697 |
General and administrative expenses | 32,880 | 858 | 93,045 | 995 |
Total expenses | 53,669 | 28,303 | 148,509 | 45,692 |
Income (loss) from operations | 52,944 | (28,303) | 1,382,139 | (45,692) |
Other income (expense) | ||||
Interest expense | (56) | (56) | ||
Interest income | 395 | 20,808 | ||
Other expense | (33) | (33) | ||
Bank charges | (88) | (800) | ||
Other income, net | 218 | 19,919 | ||
Income (loss) before income taxes | 53,162 | (28,303) | 1,402,058 | (45,692) |
Income Tax Expense | 7,955 | 377,008 | ||
Net income (loss) after tax | 45,207 | (28,303) | 1,025,050 | (45,692) |
Other comprehensive income | ||||
Foreign currency translation gain | (63,276) | 782,206 | ||
Total Comprehensive (Loss) income | $ (18,069) | $ (28,303) | $ 1,807,256 | $ (45,692) |
Basic and diluted net income (loss) per common share | $ 0 | $ 0 | $ 0.09 | $ (0.01) |
Weighted-average number of common shared outstanding | 14,009,945 | 6,960,000 | 10,793,729 | 6,960,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Beginning balance at Jun. 30, 2019 | $ 6,960 | $ 17,640 | $ (23,127) | $ 1,473 | |
Beginning balance, shares at Jun. 30, 2019 | 6,960,000 | ||||
Net income (loss) | (45,692) | (45,692) | |||
Foreign currency translation adjustment | |||||
Ending balance at Mar. 31, 2020 | $ 6,960 | 17,640 | (68,819) | (44,219) | |
Ending balance, shares at Mar. 31, 2020 | 6,960,000 | ||||
Beginning balance at Dec. 31, 2019 | $ 6,960 | 17,640 | (40,516) | (15,916) | |
Beginning balance, shares at Dec. 31, 2019 | 6,960,000 | ||||
Net income (loss) | (28,303) | (28,303) | |||
Foreign currency translation adjustment | |||||
Ending balance at Mar. 31, 2020 | $ 6,960 | 17,640 | (68,819) | (44,219) | |
Ending balance, shares at Mar. 31, 2020 | 6,960,000 | ||||
Beginning balance at Jun. 30, 2020 | $ 6,960 | 16,310 | (80,130) | (39,516) | (96,376) |
Beginning balance, shares at Jun. 30, 2020 | 6,960,000 | ||||
Issuance of common shares for cash | $ 7,050 | 10,497,675 | 10,504,725 | ||
Issuance of common shares for cash, shares | 7,049,945 | ||||
Net income (loss) | 1,025,050 | 1,025,050 | |||
Foreign currency translation adjustment | 782,206 | 782,206 | |||
Ending balance at Mar. 31, 2021 | $ 14,010 | 10,513,985 | 944,920 | 742,690 | 12,215,605 |
Ending balance, shares at Mar. 31, 2021 | 14,009,945 | ||||
Beginning balance at Dec. 31, 2020 | $ 14,010 | 10,513,985 | 899,713 | 805,966 | 12,233,674 |
Beginning balance, shares at Dec. 31, 2020 | 14,009,945 | ||||
Net income (loss) | 45,207 | 45,207 | |||
Foreign currency translation adjustment | (63,276) | (63,276) | |||
Ending balance at Mar. 31, 2021 | $ 14,010 | $ 10,513,985 | $ 944,920 | $ 742,690 | $ 12,215,605 |
Ending balance, shares at Mar. 31, 2021 | 14,009,945 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 1,025,050 | $ (45,692) |
Adjustments to reconcile net cash used in operating activities | ||
Depreciation and amortization | 8,215 | 0 |
Changes in Operating Assets and Liabilities: | ||
Account receivable | (3,470,436) | |
Advance to suppliers | (622,291) | |
Prepaid expenses | 3,623 | (918) |
Accounts payable | 122,015 | 16,059 |
Accrued expenses and other payables | 58,442 | 9,467 |
Tax payable | 268,581 | |
Advances and deposits | 29,945 | |
Other payable - Related party | (1,330) | |
Net cash used in operating activities | (2,578,186) | (21,084) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Loan receivable | (8,085,285) | |
Acquisition of plant and equipment | (77,234) | |
Net cash used in investing activities | (8,162,519) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Related party loan | 5,000 | |
Proceeds for sales of common stock to related party | 2,000 | |
Proceeds for sales of common stock | 6,230,225 | |
Net cash provided by financing activities | 6,232,225 | 5,000 |
Effect of exchange rate fluctuation on cash and cash equivalents | 554,244 | |
Net decrease in cash | (3,954,236) | (16,084) |
Cash, beginning of period | 4,271,326 | 17,202 |
Cash, end of period | 317,090 | 1,118 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for: Income tax | ||
Cash paid during the period for: Interest |
Organization and Operations and
Organization and Operations and Going Concern | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations, and Going Concern | Note 1 – Organization and Operations, and Going Concern 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 principal business is the development of internet and personal computer security software products. The Company is engaged in E- Commerce business. On April 20, 2020, the Company purchased 10,000 shares of common stock of Peaker International Trade Group Limited (“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. Peaker was formed in 2018 in Hong Kong. On May 15, 2020, Peaker set up a Company Zhejiang Jingmai Electronic Commerce Ltd., in China of which, Peaker is the sole shareholder. 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. Going Concern The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to sell its stock to the investing community and obtain necessary financing to continue operations, and the attainment of profitable operations. Although the Company recorded a net income of $1,025,050 for the nine months ended March 31, 2021, it has used net cash flows in operating activities of $2,578,186, and has a net decrease in cash of $3,954,236 for the nine months ended March 31, 2021. These factors, among others, raise a substantial doubt regarding the Company’s ability to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The interim condensed consolidated financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
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 unaudited condensed consolidated financial statements included herein have been prepared by Shengda Network Technology Inc. and Subsidiaries including its consolidated subsidiaries, the “Company”, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, filed with the SEC on November 13, 2020. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates Principles of Consolidation The unaudited condensed 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 March 31, 2021 and June 30, 2020, 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 March 31, 2021 and June 30, 2020, the Company’s bank account in PRC had $237,894 and $4,269,349, respectively, exceeding FSD insurance of RMB 500,000 as of March 31, 2021. Major Customer The Company has one major customer that accounted for 62% of revenues totaling $5,233,559 for the nine months ended March 31, 2021. The Company has one major customer that accounted for 19% of revenues totaling $145,293 for the three months ended March 31, 2021. Major Vendor The Company has two major vendors that accounted for 100% of purchase amount totaling $6,958,811 for the nine months ended March 31, 2021. The Company has one major vendor that accounted for 100% of purchase amount totaling $658,856 for the three months ended March 31, 2021. Cash and 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 is engaged in generating revenue through online networking sales, Shengda Network Technology is neither involved in production nor hold any inventory. The company mainly sells products to enhance immunity and bedding to prevent mites, help sleep and resist bacteria. 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. Accounts Receivable Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible. The Company establishes an individualized credit and collection policy based on each individual customer’s credit history. The Company does not have a uniform policy that applies equally to all customers. The collection period usually ranges from three months to twelve months. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. The Company grants extended payment terms to customers based on the following factors: (a) whether or not the Company views a real need, from the customer’s perspective, for the extension and (b) how critical the Company’s relationship with the customer and is the customer the Company’s long-term business. The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $0 and $0 as of March 31, 2021 and June 30, 2020, respectively and recorded bad debt expense of $0 and $0 for the nine months ended March 31, 2021 and 2020. 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. Property and Equipment Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Items Useful life Vehicles 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses. 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 March 31, 2021, the Company did not have any finance lease. Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 5, “Leases,” for additional information. Commitment and Contingencies In next one year, the Company will pay operating lease costs of $4,762. 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 judgment, 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). |
Loan Receivable
Loan Receivable | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loan Receivable | Note 3 - Loan Receivable Loan receivable amounted $ and $0 as of March 31, 2021 and June 30, 2020, respectively. On October 25, 2020, the Company signed an agreement with the Company’s major customer. The Company agreed to loan the $ (RMB60,000,000) at an annual interest rate of 7.2%. The actual loan amount shall prevail within the total amount. The loan is guaranteed by the Company’s supplier and due on October 25, 2021. The Borrower is required to pay all the principal and the relevant interest in full amount on the repayment date. The Company assessed the implication on Revenue Recognition, ASC 606 and determined that the terms of the loan are at the fair market value and does not impact the revenue recognition of the Company. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment As of March 31, 2021 and June 30, 2020 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 5 – Leases The Company has an operating lease for the rental of office space. Rent expense for the operating lease for the three and months ended March 31, 2021 and 2020, was $0, respectively, and for nine months ended March 31, 2021 and 2020, rent expense was $3,369 and $0, respectively. The Company had paid rent up until December 10, 2020, the did not renew this lease. On January 5, 2021, Zhejiang Jingmai Electronic Commerce Ltd. leases new office in Zhejiang, China. The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021. The monthly rent is approximately $397 (RMB 2,600). The operating lease is listed as separate line item on the Company’s condensed consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as a separate line item on the Company’s condensed consolidated financial statements. Operating lease right-of-use assets and liabilities commencing after January 1, 2021 are recognized at commencement date based on the present value of lease payments over the lease term. For the nine months ended March 31, 2021, the Company recognized approximately $934 in total operating lease costs. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Information related to the Company’s operating ROU assets and related lease liabilities are as follows: Nine Months ended Cash paid for operating lease liabilities $ - Weighted-average remaining lease term 1.0 Weighted-average discount rate 5 % Minimum future lease payments $ 4,636 The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31: 2022 $ 4,762 2023 - 2024 - 2025 - 2026 and thereafter - Total undiscounted lease liabilities 4,762 Less: Amount representing interest (126 ) Total present value of minimum lease payments $ 4,636 |
Advances and Deposits
Advances and Deposits | 9 Months Ended |
Mar. 31, 2021 | |
Advances And Deposits | |
Advances and Deposits | Note 6 – Advances and Deposits Advances and deposits amounted to $32,526 and $4,274,500, as of March 31, 2021 and June 30, 2020, respectively, of which $2,000 and $302,000 pertains to a related party (See Note 9). |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | Note 7 – Accrued Expenses and Other Payables As of March 31, 2021 and June 30, 2020, accrued expenses and other payables amounted to $85,140 and $26,416, respectively. Other payable as of June 30, 2020 had $1,330 payable to related party (See Note 9). In September 2020, $1,330 payable to related party has been repaid. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8 – 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 of common stock and 20,000,000 of 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. On November 2, 2020, the Company issued 7,049,945 shares of common stock at the sale price range from $0.06 to $2 per share, to 436 unrelated and one related party. As a result of all common stock issuances, the total issued and outstanding shares of common stock were 14,009,945 shares and 6,960,000 shares as of March 31, 2021 and June 30, 2020, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 – 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 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. On November 2, 2020, 300,000 shares of common stock were issued. 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 July 1, 2020, the Company received a deposit of $2,000 from a related party Youcheng Chen. This deposit is recorded as advances and deposits under current liabilities. On November 2, 2020, the Company issued 33,333 shares of common stock at the sale price $0.06 per share to a related party Youcheng Chen. Loan from related party represent the advances to the Company by former President and Director in the amount of $19,974 as of March 31, 2021 and June 30, 2020, respectively. The loan is unsecured, non-interest bearing and due on demand. The Company has not recorded any imputed interest expense for the nine months ended March 31, 2021 and 2020. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10 – Subsequent Events In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2021 to the date these condensed 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) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Shengda Network Technology Inc. and Subsidiaries including its consolidated subsidiaries, the “Company”, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, filed with the SEC on November 13, 2020. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates |
Principles of Consolidation | Principles of Consolidation The unaudited condensed 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 March 31, 2021 and June 30, 2020, 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 March 31, 2021 and June 30, 2020, the Company’s bank account in PRC had $237,894 and $4,269,349, respectively, exceeding FSD insurance of RMB 500,000 as of March 31, 2021. Major Customer The Company has one major customer that accounted for 62% of revenues totaling $5,233,559 for the nine months ended March 31, 2021. The Company has one major customer that accounted for 19% of revenues totaling $145,293 for the three months ended March 31, 2021. Major Vendor The Company has two major vendors that accounted for 100% of purchase amount totaling $6,958,811 for the nine months ended March 31, 2021. The Company has one major vendor that accounted for 100% of purchase amount totaling $658,856 for the three months ended March 31, 2021. |
Cash and Cash Equivalents | Cash and 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 is engaged in generating revenue through online networking sales, Shengda Network Technology is neither involved in production nor hold any inventory. The company mainly sells products to enhance immunity and bedding to prevent mites, help sleep and resist bacteria. 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. |
Accounts Receivable | Accounts Receivable Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible. The Company establishes an individualized credit and collection policy based on each individual customer’s credit history. The Company does not have a uniform policy that applies equally to all customers. The collection period usually ranges from three months to twelve months. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. The Company grants extended payment terms to customers based on the following factors: (a) whether or not the Company views a real need, from the customer’s perspective, for the extension and (b) how critical the Company’s relationship with the customer and is the customer the Company’s long-term business. The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $0 and $0 as of March 31, 2021 and June 30, 2020, respectively and recorded bad debt expense of $0 and $0 for the nine months ended March 31, 2021 and 2020. |
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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Items Useful life Vehicles 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses. |
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 March 31, 2021, the Company did not have any finance lease. Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 5, “Leases,” for additional information. |
Commitment and Contingencies | Commitment and Contingencies In next one year, the Company will pay operating lease costs of $4,762. |
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 judgment, 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). |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Items Useful life Vehicles 5 years |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Operating ROU assets and Lease Liabilities | Information related to the Company’s operating ROU assets and related lease liabilities are as follows: Nine Months ended Cash paid for operating lease liabilities $ - Weighted-average remaining lease term 1.0 Weighted-average discount rate 5 % Minimum future lease payments $ 4,636 |
Schedule of Amortization of Lease Liabilities | The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31: 2022 $ 4,762 2023 - 2024 - 2025 - 2026 and thereafter - Total undiscounted lease liabilities 4,762 Less: Amount representing interest (126 ) Total present value of minimum lease payments $ 4,636 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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) |
Organization and Operations a_2
Organization and Operations and Going Concern (Details Narrative) - USD ($) | Apr. 20, 2020 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Entity incorporation date of incorporation | Mar. 14, 2018 | |||||
Number of common stock purchased shares | 1,960,000 | |||||
Consideration of common stock | $ 19,600 | |||||
Net income | $ 45,207 | $ (28,303) | $ 1,025,050 | $ (45,692) | ||
Net cash flows in operating activities | (2,578,186) | (21,084) | ||||
Net decrease in cash | $ (3,954,236) | $ (16,084) | ||||
Peaker International Trade Group Limited [Member] | ||||||
Number of common stock purchased shares | 10,000 | |||||
Consideration of common stock | $ 1,330 | |||||
Shares purchased in transaction, percentage | 100.00% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Jun. 30, 2020USD ($) | |
Cash at FDIC insurance | $ 250,000 | $ 250,000 | $ 250,000 | |||
Cash at bank | 237,894 | 237,894 | 4,269,349 | |||
Sales | 765,616 | 8,499,788 | ||||
Cost of sales | 659,003 | 6,969,140 | ||||
Allowance for doubtful accounts | $ 0 | 0 | $ 0 | |||
Bad debt expense | 0 | $ 0 | ||||
Operating lease costs | $ 4,762 | |||||
Revenue [Member] | Customer Concentration Risk [Member] | One Major Customer [Member] | ||||||
Concentrations of credit risk, percentage | 19.00% | 62.00% | ||||
Sales | $ 145,293 | $ 5,233,559 | ||||
Revenue [Member] | Supplier Concentration Risk [Member] | Two Major Vendors [Member] | ||||||
Concentrations of credit risk, percentage | 100.00% | |||||
Cost of sales | $ 6,958,811 | |||||
Revenue [Member] | Supplier Concentration Risk [Member] | One Major Vendors [Member] | ||||||
Concentrations of credit risk, percentage | 100.00% | |||||
Cost of sales | $ 658,856 | |||||
RMB [Member] | ||||||
Cash FSD insured amount | ¥ | ¥ 500,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Details) | 9 Months Ended |
Mar. 31, 2021 | |
Vehicle [Member] | |
Useful life | 5 years |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) | Oct. 25, 2020USD ($) | Oct. 25, 2020CNY (¥) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) |
Loan Receivable | $ 8,242,010 | |||
Proceeds from loan | $ 9,157,789 | |||
Debt interest rate | 7.20% | 7.20% | ||
Debt due date | Oct. 25, 2021 | Oct. 25, 2021 | ||
RMB [Member] | ||||
Proceeds from loan | ¥ | ¥ 60,000,000 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||||
Property and equipment, gross | $ 78,731 | $ 78,731 | $ 0 | ||
Accumulated depreciation | 7,480 | 7,480 | $ 0 | ||
Depreciation and amortization | $ 8,215 | $ 0 | $ 8,215 | $ 0 |
Leases (Details Narrative)
Leases (Details Narrative) | Jan. 05, 2021USD ($) | Jan. 05, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Rental expense | $ 0 | $ 0 | $ 3,369 | $ 0 | ||
Recognized operating lease costs | $ 934 | |||||
Zhejiang Jingmai Electronic Commerce Ltd [Member] | ||||||
Rental expense | $ 397 | |||||
Operating lease description | The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021 | The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021 | ||||
Zhejiang Jingmai Electronic Commerce Ltd [Member] | RMB [Member] | ||||||
Rental expense | ¥ | ¥ 2,600 |
Leases - Schedule of Operating
Leases - Schedule of Operating ROU Assets and Lease Liabilities (Details) | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Cash paid for operating lease liabilities | |
Weighted-average remaining lease term | 1 year |
Weighted-average discount rate | 5.00% |
Minimum future lease payments | $ 4,636 |
Leases - Schedule of Amortizati
Leases - Schedule of Amortization of Lease Liabilities (Details) | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 4,762 |
2023 | |
2024 | |
2025 | |
2026 and thereafter | |
Total undiscounted lease liabilities | 4,762 |
Less: Amount representing interest | (126) |
Total present value of minimum lease payments | $ 4,636 |
Advances and Deposits (Details
Advances and Deposits (Details Narrative) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Advances And Deposits | ||
Advances and deposits | $ 32,526 | $ 4,274,500 |
Advances and deposits related party | $ 2,000 | $ 302,000 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Details Narrative) - USD ($) | 1 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |||
Accrued expenses and other payables | $ 85,140 | $ 26,416 | |
Other payable - Related party | $ 1,330 | ||
Repayment related party debt | $ 1,330 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Nov. 02, 2020 | Mar. 14, 2018 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 30, 2020 |
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 | 1,000,000,000 | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||
Number of common stock shares sold | 1,960,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Proceeds from sale of common stock | $ 19,600 | ||||
Stock issued during period, shares, new issues | 7,049,945 | ||||
Common stock, shares issued | 6,960,000 | 14,009,945 | |||
Common stock, shares outstanding | 6,960,000 | 14,009,945 | |||
Unrelated And One Related Party [Member] | |||||
Stock issued during period, shares, new issues | 436 | ||||
Minimum [Member] | |||||
Share issued price per share | $ 0.06 | ||||
Maximum [Member] | |||||
Share issued price per share | $ 2 | ||||
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 ($) | Nov. 02, 2020 | Nov. 02, 2020 | Jun. 20, 2020 | Jun. 16, 2020 | Mar. 31, 2021 | Jul. 02, 2020 | Jun. 30, 2020 |
Advances and deposits under current liabilities | $ 2,000 | $ 302,000 | |||||
Stock Issued During Period, Shares, New Issues | 7,049,945 | ||||||
President and Director [Member] | |||||||
Related party loans | $ 19,974 | $ 19,974 | |||||
Youcheng Chin [Member] | |||||||
Number of common stock cancelled | 300,000 | ||||||
Share issued price per share | $ 0.06 | $ 0.06 | $ 1 | ||||
Advances and deposits under current liabilities | $ 300,000 | ||||||
Stock Issued During Period, Shares, New Issues | 33,333 | 300,000 | |||||
Deposit | $ 2,000 | ||||||
HangJin Chin [Member] | CEO [Member] | |||||||
Number of common stock cancelled | 10,000,000 | ||||||
Share issued price per share | $ 0.0002 | ||||||
Advances and deposits under current liabilities | $ 2,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) | 9 Months Ended |
Mar. 31, 2021 | |
HangJin Chin [Member] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director |
Youcheng Chin [Member] | |
Relationship with related parties | Father of CEO HangJin Chin |
Li Weiwei [Member] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director (Former) |