Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 28, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 333-227526 | ||
Entity Registrant Name | SHENGDA NETWORK TECHNOLOGY, INC. | ||
Entity Central Index Key | 0001753931 | ||
Entity Tax Identification Number | 35-2606208 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | Floor 4, Building 3A | ||
Entity Address, Address Line Two | LuGang WebMall Town | ||
Entity Address, Address Line Three | ChouJiang, YiWu | ||
Entity Address, City or Town | Zhenjiang | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 322000 | ||
City Area Code | 778 | ||
Local Phone Number | 888-2886 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 247,818,537 | ||
Entity Common Stock, Shares Outstanding | 14,009,945 | ||
ICFR Auditor Attestation Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 143,933 | $ 4,271,326 |
Account receivable, net | 2,602,392 | |
Loan receivable, net | 6,417,350 | |
Prepaid expense | 4,129 | |
Total Current Assets | 9,163,675 | 4,275,455 |
Right of use asset - operating | 2,813 | |
Property and equipment, net | 68,508 | |
Total Assets | 9,234,996 | 4,275,455 |
Current Liabilities | ||
Accounts payable | 526,722 | 47,085 |
Related party loans | 19,974 | 19,974 |
Accrued expenses and other payables | 98,354 | 28,942 |
Advances and deposits | 30,976 | 3,972,500 |
Advances and deposits - related party | 302,000 | |
Operating lease liabilities | 4,746 | |
Other payable - related party | 1,330 | |
Total Current Liabilities | 680,772 | 4,371,831 |
Total Liabilities | 680,772 | 4,371,831 |
Commitments and Contingencies | ||
Stockholders’ Equity (Deficit) | ||
Preferred Stock, $0.001 par value, 20,000,000 shares authorized; 50,000 shares and 0 shares issued and outstanding at June 30, 2021 and 2020, respectively | 50 | |
Common Stock, $0.001 par value, 1,000,000,000 shares authorized; 14,009,945 shares and 6,960,000 shares issued and outstanding at June 30, 2021 and 2020, respectively | 14,010 | 6,960 |
Additional paid-in capital | 10,515,935 | 16,310 |
Retained earnings (Accumulated loss) | (2,796,477) | (80,130) |
Accumulated other comprehensive income (loss) | 820,706 | (39,516) |
Total Stockholders’ Equity (Deficit) | 8,554,224 | (96,376) |
Total Liabilities and Stockholders’ Equity | $ 9,234,996 | $ 4,275,455 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 |
Preferred Stock, shares issued | 50,000 | 0 |
Preferred Stock, shares outstanding | 50,000 | 0 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 9,489,187 | $ 253,803 |
Cost of Revenue | 7,828,750 | 213,617 |
Gross Profit | 1,660,437 | 40,185 |
Operating Expenses | ||
Professional expenses | 125,989 | 86,152 |
General and administrative expenses | 3,894,379 | 11,167 |
Total Operating Expenses | 4,020,368 | 97,319 |
(Loss) Income from Operations | (2,359,931) | (57,134) |
Other Income (Expense) | ||
Interest expense | (114) | |
Interest income | 21,077 | 161 |
Other expense | (33) | |
Bank charges | (881) | (30) |
Total Other Income (Expense) | 20,049 | 131 |
Income (Loss) before Income Taxes | (2,339,882) | (57,003) |
Income Tax Expense | 376,465 | |
Net Income (Loss) | (2,716,347) | (57,003) |
Other Comprehensive Income (Loss) | ||
Foreign currency translation gain (loss) | 860,222 | (39,516) |
Total Other Comprehensive Income (Loss) | $ (1,856,125) | $ (96,519) |
Basic and Diluted Net Income (Loss) per Common Share | $ (0.23) | $ (0.01) |
Weighted-average Number of Common Shares Outstanding | 11,595,580 | 6,960,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,716,347) | $ (57,003) |
Adjustments to Reconcile from Net Loss to Net Cash (Used in) Provided by Operating Activities | ||
Depreciation and amortization | 12,871 | |
Provision for uncollectible accounts | 3,749,348 | |
Changes in Operating Assets and Liabilities: | ||
(Increase) in account receivable | (4,177,743) | |
Decrease (Increase) in prepaid expenses | 4,325 | (4,144) |
Increase in accounts payable | 467,573 | 46,330 |
Increase in payroll payable | 3,373 | |
Increase in accrued expenses and other payables | 68,577 | 25,599 |
Increase in advances and deposits | 30,202 | |
(Decrease) increase in other payable - related party | (1,330) | 1,330 |
Net Cash (Used in) Provided by Operating Activities | (2,562,524) | 14,155 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Loan receivable | (8,365,926) | |
Acquisition of plant and equipment | (77,896) | |
Net Cash Used in Investing Activities | (8,443,822) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash received from related party | 5,000 | |
Proceeds from sale of preferred stock to a related party | 2,000 | |
Proceeds for sale of common stock to related party | 302,000 | |
Proceeds for sale of common stock | 6,230,225 | 3,972,500 |
Net Cash Provided by Financing Activities | 6,232,225 | 4,279,500 |
Effect of Exchange Rate Fluctuations on Cash | 646,728 | (39,531) |
Net (Decrease) Increase in Cash | (4,127,393) | 4,254,124 |
Cash - Beginning of Period | 4,271,326 | 17,202 |
Cash - End of Period | 143,933 | 4,271,326 |
Cash paid during the period for: | ||
Income tax | ||
Interest | ||
SUPPLEMENTAL DISCLOSURES FOR NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Conversion of cash advances from related party into common stock | 302,000 | |
Conversion of cash advances received into common stock | $ 3,972,500 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [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 | |||||
Investment | (1,330) | (1,330) | ||||
Net loss | (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 | |||||
Issuance of common shares for cash | $ 3,165 | 6,227,060 | 6,230,225 | |||
Issuance of common shares for cash, shares | 3,165,112 | |||||
Issuance of common stock upon conversion of advances | $ 3,552 | 3,968,948 | 3,972,500 | |||
Issuance of common stock upon conversion of advances, shares | 3,551,500 | |||||
Issuance of common stock to related party | $ 333 | 301,667 | 302,000 | |||
Issuance of common stock to related party for cash, shares | 333,333 | |||||
Issuance of preferred shares for cash to a related party | $ 50 | 1,950 | 2,000 | |||
Issuance of preferred shares for cash, shares | 50,000 | |||||
Net loss | (2,716,347) | (2,716,347) | ||||
Foreign currency translation adjustment | 860,222 | 860,222 | ||||
Ending balance at Jun. 30, 2021 | $ 50 | $ 14,010 | $ 10,515,935 | $ (2,796,477) | $ 820,706 | $ 8,554,224 |
Ending balance, shares at Jun. 30, 2021 | 50,000 | 14,009,945 |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND GOING CONCERN | NOTE 1 – NATURE OF OPERATIONS AND GOING CONCERN Nature of Operations In these notes, the terms “us”, “we”, “it”, “its”, “Shengda”, the “Company” or “our” refer to Shengda Network Technology, Inc. and Subsidiaries. Shengda was incorporated under the laws of the State of Nevada on March 14, 2018 The Company’s principal business is to provide portal for the sale of products offered by reliable manufacturers and merchants at competitive prices. Products run the gamut from electronics to daily consumable products, food and clothing. On April 20, 2020, the Company purchased 10,000 1,330 100 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. The Company recorded a net loss of $ 2,716,347 for the year ended June 30, 2021, used net cash flows in operating activities of $ 2,562,524 , and has a net decrease in cash of $ 4,127,393 for the year ended June 30, 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 POLICIE | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE | NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE 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”). The financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. In the opinion of the Company’s management, the financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. Reclassifications Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net income. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited 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. 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. 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 The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. The Company did not have any cash equivalents at June 30, 2021 and 2020, respectively. 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) the Company’s relationship with the customer, and the Company’s long-term business prospects. The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $ 1,640,389 0 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: SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Items Useful life Vehicles 5 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. Long-lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the estimated future undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss equal to the excess of the carrying value over the assets fair market value is recognized when the carrying amount exceeds the undiscounted cash flows. The impairment loss is recorded as an expense and a direct write-down of the asset. No 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, 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. Revenue Recognition The Company is engaged in generating revenue through online networking sales. Shengda Network Technology is neither involved in production nor holding any inventory. The Company mainly sells products through a significant number of registered companies to members of its sales portal. The Company intends to offer products through offline stores and customer service centers. 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, Revenue From Contracts With Customers 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 Fair Value Measurement, ● 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. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values. 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, 2021 and 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 People’s Republic of China (“PRC”) is protected by FSD insurance. As of June 30, 2021 and 2020, the Company’s bank account in PRC had $ 140,277 and $ 4,269,349 , respectively, exceeding FSD insurance of RMB 500,000 as of June 30, 2021. Major Customer The Company has one major customer that accounted for 56 5,278,370 100 253,803 Major Vendor The Company has two major vendors that accounted for 71 % and 29 % of purchase amount totaling $ 7,828,750 for the year ended June 30, 2021, respectively. The Company has one major vendor that accounted for 100 % of purchase amount totaling $ 213,617 for the year ended June 30, 2020. Commitment and Contingencies The Company is committed to pay operating lease costs of $ 4,832 Income Taxes 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). Earnings (Loss) Per Share The Company computes net earnings (loss) per share in accordance with ASC 260, “ Earnings per Share” Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), ASU 2019-12, “ Simplifying the Accounting for Income Taxes.” Income Taxes In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options Derivatives and Hedging—Contracts in Entity’s Own Equity Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Loan Receivable
Loan Receivable | 12 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loan Receivable | Note 3 - Loan Receivable On October 25, 2020, the Company signed an agreement with an unrelated party, which is also the Company’s major customer. The Company agreed to loan the customer the $ 9,292,817 (RMB 60,000,000 7.2 October 25, 2021 2,108,959 6,417,350 and $ 0 The Company assessed the implication on ASC 606, Revenue From Contracts With Customers, 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 | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment Property and equipment consisted of the cost of a vehicle. As of June 30, 2021 and 2020 79,892 and $ 0 , and accumulated depreciation of $ 11,384 and $ 0 , respectively. For the years ended June 30, 2021 and 2020, depreciation expense including amortization of right of use assets amounted to $ 12,871 and $ 0 , respectively. |
Leases
Leases | 12 Months Ended |
Jun. 30, 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 amounted to $ 3,398 0 The lease term was from May 11, 2020 and expired on December 10, 2020 On January 5, 2021, Zhejiang Jingmai Electronic Commerce Ltd. leased an office in Zhejiang, China. The lease term of the office is from January 5, 2021 to April 5, 2022. There is rent-free period which is from January 5, 2021 to April 5, 2021. The monthly rent is approximately $ 403. The operating lease is listed as a separate line item on the Company’s consolidated financial statements. The operating lease represents 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 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 year ended June 30, 2021, the Company recorded $ 1,885 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 right of use assets and related lease liabilities are as follows: SCHEDULE OF OPERATING ROU ASSETS AND LEASE LIABILITIES Year ended June 30, 2021 Cash paid for operating lease liabilities $ - Weighted-average remaining lease term 0.75 Weighted-average discount rate 5 % Minimum future lease payments $ 4,746 The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending June 30: SCHEDULE OF AMORTIZATION OF LEASE LIABILITIES June 30, 2021 2022 $ 4,832 2023 and thereafter - Total undiscounted lease liabilities 4,832 Less: Amount representing interest (86 ) Total present value of minimum lease payments $ 4,746 |
Advances and Deposits
Advances and Deposits | 12 Months Ended |
Jun. 30, 2021 | |
Advances And Deposits | |
Advances and Deposits | Note 6 – Advances and Deposits Advances and deposits amounted to $ 30,976 and $ 3,972,500 as of June 30, 2021 and 2020, respectively. Advances are received from the customers for the sale of products in the normal course of business and adjusted against the payments due to them. The Company received advances from related party totaling $ 0 and $ 302,000 as of June 30, 2021 and 2020, respectively, for its working capital requirements (See Note 9). The June 30, 2020 balance for advances and deposits represent the proceeds from the sale of 13,899,000 0.0002 2 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | Note 7 – Accrued Expenses and Other Payables As of June 30, 2021 and 2020, accrued expenses and other payables amounted to $ 98,354 and $ 28,942 , respectively. Other payables include $ 1,330 payable to a related party (See Note 9) as of June 30, 2020. In September 2020, other payable to a related party totaling $ 1,330 were paid in full. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 8 – Stockholders’ Equity The Company’s capitalization at June 30, 2021 was 1,000,000,000 0.001 20,000,000 0.001 Common Stock On March 14, 2018, the Company exchanged 5,000,000 5,000 In June 2020, the Company sold 1,960,000 19,600 On November 2, 2020, the Company issued 3,551,500 3,972,500. On November 2, 2020, the Company issued 3,165,112 shares of common stock to 436 investors for a cash consideration of $ 6,230,225 . at the sale price of $2.00 per share. In addition, the Company issued 333,333 shares of common stock to a related party for cash proceeds of $ 302,000 (Note 9). As a result of all common stock issuances, the total issued and outstanding shares of common stock were 14,009,945 6,960,000 Preferred Stock On November 10, 2020, the Company adopted a resolution to designate 1,000,000 1.00 Right to Receive Dividends The holders of Series A Preferred Stock shall be entitled to receive dividends when, as and if declared by the Board of Directors of the corporation. The right to dividends on shares of Series A Preferred Stock shall be non-cumulative and no right shall accrue to holders of Series A Preferred Stock by reason of the fact that dividends on said shares are not declared in any prior period. Liquidation Preference In the event of any liquidation, dissolution, or winding up of the corporation, either voluntary or involuntary, the holders of Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the holders of Junior Securities but after distribution of such assets among, or payment thereof to holders of any Senior Preferred Stock, an amount equal to the Series A original issue price for each share of Series A Preferred Stock plus an amount equal to all declared but unpaid dividends on Series A Preferred Stock (the “Series A Liquidation Preference”). After the payment of the full Series A Liquidation Preference, the remaining assets of the corporation legally available for distribution, if any, shall be distributed ratably to the holders of the Common Stock in an amount equal to the Series A Liquidation Preference; after such distribution to the holders of the Common Stock, the remaining assets of the corporation legally available for distribution, if any, shall be distributed ratably among the Series A Preferred Stock and the Common Stock. If the assets and funds legally available for distribution among the holders of Series A Preferred Stock shall be insufficient to permit the payment to the holders of the full Series A Liquidation Preference, then the assets and funds shall be distributed ratably among holders of Series A Preferred Stock in proportion to the number of shares of Series A Preferred Stock owned by each holder. Voting Rights Except as otherwise provided in the Certificate of Designation or required by law, the holders of the Series A Preferred Stock shall be entitled to vote, in the same manner and with the same effect as the holders of Common Stock, voting together with the holders of Common Stock as a single class. For this purpose, the holders of Series A Preferred Stock shall be given notice of any meeting of stockholders as to which the holders of Common Stock are given notice in accordance with the bylaws of the Corporation. As to any matter on which the holders of Series A Preferred Stock shall be entitled to vote, the holders of the outstanding Series A Preferred Stock shall have voting rights equal to an aggregate of seventy-five percent (75%) of the total shares entitled to vote by both (i) the holders of all of the then outstanding shares of Common Stock (whether or not such holders vote) and (ii) the holders of all of the then outstanding shares of voting shares of the Company . Redemption The Company shall have the right to redeem the Series A Preferred Stock, plus any accrued and unpaid dividends, in whole but not in part, at any time or from time to time (the “Redemption”), at a cash redemption price equal to the aggregate Series A original issue price the Series A Preferred Stock being redeemed (the “Redemption Amount”) plus an amount equal to the amount of the accrued and unpaid dividend thereon. On November 20, 2020, the Company issued 50,000 shares of Series A Preferred Stock in settlement of cash advances payable to an officer of $ 2,000 . The total issued and outstanding shares of Preferred Stock were 50,000 0 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 – Related Party Transactions Related parties with whom the Company had transactions are: SCHEDULE OF RELATED PARTY TRANSACTIONS 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 1.00 300,000 300,000 On June 20, 2020, the Company issued 10,000,000 0.0002 2,000 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 in settlement of $ 2,000 On November 20, 2020, the Company issued 50,000 2,000 Related party loans represent working capital advances to the Company by former President and Director in the amount of $ 19,974 as of June 30, 2021 and 2020, 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, 2021 and 2020, respectively (Note 12). |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes Income tax expense for the years ended June 30, 2021 and 2020, is summarized as follows: SCHEDULE OF INCOME TAX EXPENSES June 30, 2021 June 30, 2020 Deferred: Federal $ (570,433 ) $ (11,971 ) State - - Change in valuation allowance 570,433 11,971 Income tax expense (benefit) $ - $ - The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Statement of Operations: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION June 30, 2021 June 30, 2020 Tax at statutory tax rate 21 % 21 % State taxes — — Other permanent items — — Valuation allowance -21 % -21 % Income tax expense — — The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at June 30, 2021 and 2020, are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS June 30, 2021 June 30, 2020 Net Deferred Tax Asset Net Operating Loss Carry-Forward $ 2,796,477 $ 78,322 Effective tax rate 21 % 21 % Expected Income Tax Benefit from NOL Carry-Forward 570,433 16,447 Less: Valuation Allowance (570,433 ) (16,447 ) Deferred Tax Asset, Net of Valuation Allowance $ - $ - Deferred income taxes are provided for the tax effects of transactions reported in the financial statements and consist of deferred taxes related primarily to differences between the bases of certain assets and liabilities for financial and tax reporting. The deferred taxes represent the future tax return consequences of those differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled. At June 30, 2021 and 2020, the Company had accumulated net operating losses of $ 2,796,477 and $ 80,130 , respectively, for U.S. federal income tax purposes available to offset future taxable incomes. Management determined that it was unlikely that the Company’s deferred tax assets would be realized and have provided for a full valuation allowance associated with the net deferred tax assets. At June 30, 2021 and 2020, the Company’s deferred income tax assets and valuation allowance were $ 456,346 and $ 9,577 , respectively. In the ordinary course of business, the Company’s income tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessment by these taxing authorities. Accordingly, the Company believes that it is more likely than not that it will realize the benefits of tax positions it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with FASB ASC 740. Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of June 30, 2021, tax years 2019, 2018, and 2017 remain open for examination by the Internal Revenue Service. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 11 – ACQUISITIONS On April 20, 2020, the Company purchased 10,000 1,330 100 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: SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED RECOGNIZED AT THE ACQUISITION 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, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 – Subsequent Events In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2021 to the date these consolidated financial statements were available to be issued, and has determined that the following subsequent events or transactions would require recognition or disclosure in the consolidated financial statements. On July 1, 2021, the former President and Director agreed to forgive the working capital advance of $ 19,974 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
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”). The financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. In the opinion of the Company’s management, the financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. |
Reclassifications | Reclassifications Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net income. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited 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. |
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. 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 | Cash The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. The Company did not have any cash equivalents at June 30, 2021 and 2020, respectively. |
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) the Company’s relationship with the customer, and the Company’s long-term business prospects. The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $ 1,640,389 0 |
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: SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Items Useful life Vehicles 5 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. |
Long-lived Assets | Long-lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the estimated future undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss equal to the excess of the carrying value over the assets fair market value is recognized when the carrying amount exceeds the undiscounted cash flows. The impairment loss is recorded as an expense and a direct write-down of the asset. No |
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, 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. |
Revenue Recognition | Revenue Recognition The Company is engaged in generating revenue through online networking sales. Shengda Network Technology is neither involved in production nor holding any inventory. The Company mainly sells products through a significant number of registered companies to members of its sales portal. The Company intends to offer products through offline stores and customer service centers. 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, Revenue From Contracts With Customers |
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 Fair Value Measurement, ● 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. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values. |
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, 2021 and 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 People’s Republic of China (“PRC”) is protected by FSD insurance. As of June 30, 2021 and 2020, the Company’s bank account in PRC had $ 140,277 and $ 4,269,349 , respectively, exceeding FSD insurance of RMB 500,000 as of June 30, 2021. Major Customer The Company has one major customer that accounted for 56 5,278,370 100 253,803 Major Vendor The Company has two major vendors that accounted for 71 % and 29 % of purchase amount totaling $ 7,828,750 for the year ended June 30, 2021, respectively. The Company has one major vendor that accounted for 100 % of purchase amount totaling $ 213,617 for the year ended June 30, 2020. |
Commitment and Contingencies | Commitment and Contingencies The Company is committed to pay operating lease costs of $ 4,832 |
Income Taxes | Income Taxes 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). |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes net earnings (loss) per share in accordance with ASC 260, “ Earnings per Share” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), ASU 2019-12, “ Simplifying the Accounting for Income Taxes.” Income Taxes In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options Derivatives and Hedging—Contracts in Entity’s Own Equity Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS | SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Items Useful life Vehicles 5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
SCHEDULE OF OPERATING ROU ASSETS AND LEASE LIABILITIES | Information related to the Company’s operating right of use assets and related lease liabilities are as follows: SCHEDULE OF OPERATING ROU ASSETS AND LEASE LIABILITIES Year ended June 30, 2021 Cash paid for operating lease liabilities $ - Weighted-average remaining lease term 0.75 Weighted-average discount rate 5 % Minimum future lease payments $ 4,746 |
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 June 30: SCHEDULE OF AMORTIZATION OF LEASE LIABILITIES June 30, 2021 2022 $ 4,832 2023 and thereafter - Total undiscounted lease liabilities 4,832 Less: Amount representing interest (86 ) Total present value of minimum lease payments $ 4,746 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTY TRANSACTIONS | Related parties with whom the Company had transactions are: SCHEDULE OF RELATED PARTY TRANSACTIONS 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 Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX EXPENSES | Income tax expense for the years ended June 30, 2021 and 2020, is summarized as follows: SCHEDULE OF INCOME TAX EXPENSES June 30, 2021 June 30, 2020 Deferred: Federal $ (570,433 ) $ (11,971 ) State - - Change in valuation allowance 570,433 11,971 Income tax expense (benefit) $ - $ - |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Statement of Operations: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION June 30, 2021 June 30, 2020 Tax at statutory tax rate 21 % 21 % State taxes — — Other permanent items — — Valuation allowance -21 % -21 % Income tax expense — — |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at June 30, 2021 and 2020, are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS June 30, 2021 June 30, 2020 Net Deferred Tax Asset Net Operating Loss Carry-Forward $ 2,796,477 $ 78,322 Effective tax rate 21 % 21 % Expected Income Tax Benefit from NOL Carry-Forward 570,433 16,447 Less: Valuation Allowance (570,433 ) (16,447 ) Deferred Tax Asset, Net of Valuation Allowance $ - $ - |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [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: SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED RECOGNIZED AT THE ACQUISITION Purchase price $ 1,330 Cash $ - Total assets: $ - Less: liabilities assumed - Net assets acquired - Purchase price in excess of net assets acquired $ 1,330 |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Details Narrative) - USD ($) | Apr. 20, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Restructuring Cost and Reserve [Line Items] | ||||
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 (Loss) Attributable to Parent | $ 2,716,347 | $ 57,003 | ||
Net Cash Provided by (Used in) Operating Activities | 2,562,524 | (14,155) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | $ 4,127,393 | $ (4,254,124) | ||
Peaker International Trade Group Limited [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of common stock purchased shares | 10,000 | |||
Consideration of common stock | $ 1,330 | |||
Shares purchased in transaction, percentage | 100.00% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE (Details Narrative) | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021CNY (¥) | |
Product Information [Line Items] | |||
Allowance for doubtful accounts | $ 1,640,389 | $ 0 | |
Impairment of Long-Lived Assets to be Disposed of | 0 | ||
Cash at FDIC insurance | 250,000 | 250,000 | |
Cash | 140,277 | 4,269,349 | |
[custom:Cashfsdinsuredamount-0] | ¥ | ¥ 500,000 | ||
Sales | 9,489,187 | 253,803 | |
Cost of Revenue | 7,828,750 | $ 213,617 | |
Payment of Operating lease costs | $ 4,832 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Major Customer [Member] | |||
Product Information [Line Items] | |||
Concentrations of credit risk, percentage | 56.00% | 100.00% | |
Sales | $ 5,278,370 | $ 253,803 | |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Major Vendors [Member] | |||
Product Information [Line Items] | |||
Concentrations of credit risk, percentage | 71.00% | 100.00% | |
Cost of Revenue | $ 213,617 | ||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Two Major Vendors [Member] | |||
Product Information [Line Items] | |||
Concentrations of credit risk, percentage | 29.00% | ||
Cost of Revenue | $ 7,828,750 |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) | Oct. 25, 2020USD ($) | Oct. 25, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Receivables [Abstract] | ||||
Proceeds from loan | $ 9,292,817 | ¥ 60,000,000 | ||
Debt interest rate | 7.20% | 7.20% | ||
Debt due date | Oct. 25, 2021 | Oct. 25, 2021 | ||
Allowance of uncollectible loan receivable | $ 2,108,959 | |||
Allowance of loan receivable net | $ 6,417,350 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 79,892 | $ 0 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 11,384 | 0 |
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 12,871 | $ 0 |
SCHEDULE OF OPERATING ROU ASSET
SCHEDULE OF OPERATING ROU ASSETS AND LEASE LIABILITIES (Details) | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Cash paid for operating lease liabilities | |
Weighted-average remaining lease term | 9 months |
Weighted-average discount rate | 5.00% |
Minimum future lease payments | $ 4,746 |
SCHEDULE OF AMORTIZATION OF LEA
SCHEDULE OF AMORTIZATION OF LEASE LIABILITIES (Details) | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 4,832 |
2023 and thereafter | |
Total undiscounted lease liabilities | 4,832 |
Less: Amount representing interest | (86) |
Total present value of minimum lease payments | $ 4,746 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | Jan. 05, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Rental expense | $ 3,398 | $ 0 | |
Operating lease description | The lease term was from May 11, 2020 and expired on December 10, 2020 | ||
Operating lease costs | $ 1,885 | ||
Zhejiang Jingmai Electronic Commerce Ltd [Member] | |||
Rental expense | $ 403 | ||
Operating lease description | The lease term of the office is from January 5, 2021 to April 5, 2022. There is rent-free period which is from January 5, 2021 to April 5, 2021. |
Advances and Deposits (Details
Advances and Deposits (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contract with Customer, Liability | $ 3,972,500 | $ 30,976 |
[custom:AdvancesAndDepositsRelatedPartyCurrent-0] | 302,000 | |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
[custom:AdvancesAndDepositsRelatedPartyCurrent-0] | $ 302,000 | $ 0 |
Number of common stock cancelled | 13,899,000 | |
Share issued price per share | $ 0.0002 | |
Share price | $ 2 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Details Narrative) - USD ($) | 1 Months Ended | ||
Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |||
Accounts Payable and Other Accrued Liabilities, Current | $ 98,354 | $ 28,942 | |
Due to Other Related Parties, Current | $ 1,330 | ||
Repayments of Related Party Debt | $ 1,330 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | Nov. 20, 2020 | Nov. 02, 2020 | Mar. 14, 2018 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Nov. 10, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Preferred Stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Number of common stock shares sold | 1,960,000 | ||||||
Proceeds from sale of common stock | $ 19,600 | ||||||
Issuance of common stock | $ 3,972,500 | ||||||
Proceeds from Issuance of Common Stock | $ 302,000 | $ 6,230,225 | $ 3,972,500 | ||||
Common stock, shares issued | 6,960,000 | 14,009,945 | 6,960,000 | ||||
Preferred Stock, Voting Rights | the holders of Series A Preferred Stock shall be entitled to vote, the holders of the outstanding Series A Preferred Stock shall have voting rights equal to an aggregate of seventy-five percent (75%) of the total shares entitled to vote by both (i) the holders of all of the then outstanding shares of Common Stock (whether or not such holders vote) and (ii) the holders of all of the then outstanding shares of voting shares of the Company | ||||||
Stock Issued During Period, Value, Other | $ 302,000 | ||||||
Preferred Stock, shares issued | 0 | 50,000 | 0 | ||||
Preferred Stock, shares outstanding | 0 | 50,000 | 0 | ||||
Series A Preferred Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, par value | $ 1 | ||||||
Preferred stock, shares authorized | 1,000,000 | ||||||
Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Number of shares issued | 3,551,500 | 3,551,500 | |||||
Issuance of common stock | $ 3,972,500 | $ 3,552 | |||||
Stock Issued During Period, Shares, New Issues | 3,165,112 | ||||||
Stock Issued During Period, Shares, Other | 333,333 | ||||||
Stock Issued During Period, Value, Other | $ 333 | ||||||
President [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Number of common stock issued for service, shares | 5,000,000 | ||||||
Number of common stock issued for service | $ 5,000 | ||||||
436 investors [Member] | Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Proceeds from sale of common stock | $ 6,230,225 | ||||||
Stock Issued During Period, Shares, New Issues | 3,165,112 | ||||||
Sale of stock price per share | $ 2 | ||||||
Related Party [Member] | Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 333,333 | ||||||
Officer [Member] | Series A Preferred Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Stock Issued During Period, Shares, Other | 50,000 | ||||||
Stock Issued During Period, Value, Other | $ 2,000 |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended |
Jun. 30, 2021 | |
HangJin Chen [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director |
Youcheng Chen [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | Father of CEO HangJin Chen |
Li Weiwei [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director (Former) |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Nov. 20, 2020 | Nov. 02, 2020 | Nov. 02, 2020 | Jun. 20, 2020 | Jun. 16, 2020 | Jun. 30, 2021 | Jul. 02, 2020 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||||||||
Advances and deposits under current liabilities | $ 302,000 | |||||||
Stock Issued During Period, Value, Other | $ 302,000 | |||||||
Common Stock [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 3,165,112 | |||||||
Settlement of cash deposit | $ 2,000 | $ 2,000 | ||||||
Stock Issued During Period, Shares, Other | 333,333 | |||||||
Stock Issued During Period, Value, Other | $ 333 | |||||||
Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from Related Parties | $ 19,974 | |||||||
Officer [Member] | Series A Preferred Stock [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stock Issued During Period, Shares, Other | 50,000 | |||||||
Stock Issued During Period, Value, Other | $ 2,000 | |||||||
Youcheng Chin [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of common stock cancelled | 300,000 | |||||||
Share issued price per share | $ 1 | |||||||
Advances and deposits under current liabilities | $ 300,000 | |||||||
Stock Issued During Period, Shares, New Issues | 33,333 | 300,000 | ||||||
Deposits | $ 2,000 | |||||||
HangJin Chin [Member] | Chief Executive Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of common stock cancelled | 10,000,000 | |||||||
Share issued price per share | $ 0.0002 | |||||||
Advances and deposits under current liabilities | $ 2,000 |
SCHEDULE OF INCOME TAX EXPENSES
SCHEDULE OF INCOME TAX EXPENSES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Deferred: Federal | $ (570,433) | $ (11,971) |
Deferred: State | ||
Change in valuation allowance | 570,433 | 11,971 |
Income tax expense (benefit) |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax at statutory tax rate | 21.00% | 21.00% |
State taxes | ||
Other permanent items | ||
Valuation allowance | (21.00%) | (21.00%) |
Income tax expense |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Net Operating Loss Carry-Forward | $ 2,796,477 | $ 78,322 |
Effective tax rate | 21.00% | 21.00% |
Expected Income Tax Benefit from NOL Carry-Forward | $ 570,433 | $ 16,447 |
Less: Valuation Allowance | (570,433) | (16,447) |
Deferred Tax Asset, Net of Valuation Allowance |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 2,796,477 | $ 80,130 |
[custom:DeferredIncomeTaxAssetsAndValuationAllowance-0] | $ 456,346 | $ 9,577 |
Income tax examination description | tax years 2019, 2018, and 2017 remain open for examination by the Internal Revenue Service. |
SUMMARY OF ASSETS ACQUIRED AND
SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED RECOGNIZED AT THE ACQUISITION (Details) | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase price | $ 1,330 |
Cash | |
Total assets: | |
Less: liabilities assumed | |
Net assets acquired | |
Purchase price in excess of net assets acquired | $ 1,330 |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) - USD ($) | Apr. 20, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||
Number of common stock purchased shares | 1,960,000 | |
Total consideration of common stock | $ 19,600 | |
Peaker [Member] | ||
Business Acquisition [Line Items] | ||
Number of common stock purchased shares | 10,000 | |
Total consideration of common stock | $ 1,330 | |
Shares purchased in transaction percentage | 100.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jul. 01, 2021USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Working Capital | $ 19,974 |