Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | May 19, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 000-05576 | |
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 6 | |
Entity Address, Address Line Two | Building 6, LuGang WebMall Town | |
Entity Address, Address Line Three | Jinhau City | |
Entity Address, City or Town | Zhejiang Province | |
Entity Address, Country | CN | |
City Area Code | (702) | |
Local Phone Number | 979-5606 | |
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 Common Stock, Shares Outstanding | 14,009,945 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) | Mar. 31, 2022USD ($) | Jun. 30, 2021USD ($) |
Current Assets | ||
Cash and cash equivalents | $ 43,636 | $ 143,933 |
Account receivable, net | 2,090,909 | 2,602,392 |
Advance to suppliers, net | 3,097,902 | |
Other receivable | 253,083 | |
Loan receivable, net | 6,417,350 | |
Total Current Assets | 5,485,530 | 9,163,675 |
Advance to suppliers - non-current portion | 6,257,263 | |
Right of use asset - operating | 4,607 | 2,813 |
Property and equipment, net | 58,180 | 68,508 |
Total Assets | 11,805,580 | 9,234,996 |
Current Liabilities | ||
Accounts payable | 16,043 | 526,722 |
Related party loans | 19,974 | |
Accrued expenses and other payables | 269,069 | 98,354 |
Advances and deposits | 30,976 | |
Operating lease liabilities | 4,607 | 4,746 |
Total Current Liabilities | 289,719 | 680,772 |
Total Liabilities | 289,719 | 680,772 |
Commitments and Contingencies | ||
Stockholders’ Equity (Deficit) | ||
Preferred Stock, $0.001 par value, 20,000,000 shares authorized; 50,000 shares and 50,000 shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively | 50 | 50 |
Common Stock, $0.001 par value, 1,000,000,000 shares authorized; 14,009,945 shares and 14,009,945 shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively | 14,010 | 14,010 |
Additional paid-in capital | 10,535,909 | 10,515,935 |
Retained earnings (Accumulated loss) | (42,004) | (2,796,477) |
Accumulated other comprehensive income (loss) | 1,007,896 | 820,706 |
Total Stockholders’ Equity (Deficit) | 11,515,861 | 8,554,224 |
Total Liabilities and Stockholders’ Equity | $ 11,805,580 | $ 9,234,996 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Jun. 30, 2021 |
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 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
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 | 14,009,945 |
Common stock, shares outstanding | 14,009,945 | 14,009,945 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,412,849 | $ 765,616 | $ 2,759,820 | $ 8,499,788 |
Cost of Revenue | 1,294,515 | 659,003 | 2,547,439 | 6,969,140 |
Gross Profit | 118,334 | 106,613 | 212,381 | 1,530,648 |
Operating Expenses | ||||
Professional expenses | 26,858 | 20,789 | 83,461 | 55,464 |
General and administrative expenses | 1,051,748 | 32,880 | 1,126,837 | 93,045 |
Total Operating Expenses | 1,078,606 | 53,669 | 1,210,298 | 148,509 |
Income (Loss) from Operations | (960,272) | 52,944 | (997,917) | 1,382,139 |
Other Income (Expense) | ||||
Interest expense | (56) | (60) | (56) | |
Interest income | 703,238 | 395 | 703,362 | 20,808 |
Other income | 102 | (33) | 23,424 | (33) |
Recovery of uncollectible accounts | 3,198,342 | 3,198,342 | ||
Bank charges | (361) | (88) | (588) | (800) |
Total Other Income (Expense) | 3,901,321 | 218 | 3,924,480 | 19,919 |
Income (Loss) before Income Taxes | 2,941,049 | 53,162 | 2,926,563 | 1,402,058 |
Income Tax Expense | 169,300 | 7,955 | 172,090 | 377,008 |
Net Income (Loss) after Tax | 2,771,749 | 45,207 | 2,754,473 | 1,025,050 |
Other comprehensive income | ||||
Foreign currency translation gain | 133,952 | (63,276) | 187,190 | 782,206 |
Total Comprehensive Income (Loss) | $ 2,905,701 | $ (18,069) | $ 2,941,663 | $ 1,807,256 |
Basic and Diluted Net Income (Loss) per Common Share | $ 0.20 | $ 0 | $ 0.20 | $ 0.09 |
Weighted-average Number of Common Shares Outstanding | 14,009,945 | 14,009,945 | 14,009,945 | 10,793,729 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance, value at Jun. 30, 2020 | $ 6,960 | $ 16,310 | $ (80,130) | $ (39,516) | $ (96,376) | |
Balance, shares at Jun. 30, 2020 | 6,960,000 | |||||
Net income | 1,025,050 | 1,025,050 | ||||
Foreign currency translation adjustment | 782,206 | 782,206 | ||||
Issuance of common shares for cash | $ 7,050 | 10,497,675 | 10,504,725 | |||
Issuance of common shares for cash, shares | 7,049,945 | |||||
Balance, value at Mar. 31, 2021 | $ 14,010 | 10,513,985 | 944,920 | 742,690 | 12,215,605 | |
Balance, shares at Mar. 31, 2021 | 14,009,945 | |||||
Balance, value at Dec. 31, 2020 | $ 14,010 | 10,513,985 | 899,713 | 805,966 | 12,233,674 | |
Balance, shares at Dec. 31, 2020 | 14,009,945 | |||||
Net income | 45,207 | 45,207 | ||||
Foreign currency translation adjustment | (63,276) | (63,276) | ||||
Balance, value at Mar. 31, 2021 | $ 14,010 | 10,513,985 | 944,920 | 742,690 | 12,215,605 | |
Balance, shares at Mar. 31, 2021 | 14,009,945 | |||||
Balance, value at Jun. 30, 2021 | $ 50 | $ 14,010 | 10,515,935 | (2,796,477) | 820,706 | 8,554,224 |
Balance, shares at Jun. 30, 2021 | 50,000 | 14,009,945 | ||||
Net income | 2,754,473 | 2,754,473 | ||||
Foreign currency translation adjustment | 187,190 | 187,190 | ||||
Forgiveness of debt | 19,974 | 19,974 | ||||
Balance, value at Mar. 31, 2022 | $ 50 | $ 14,010 | 10,535,909 | (42,004) | 1,007,896 | 11,515,861 |
Balance, shares at Mar. 31, 2022 | 50,000 | 14,009,945 | ||||
Balance, value at Dec. 31, 2021 | $ 50 | $ 14,010 | 10,535,909 | (2,813,753) | 873,944 | 8,610,160 |
Balance, shares at Dec. 31, 2021 | 50,000 | 14,009,945 | ||||
Net income | 2,771,749 | 2,771,749 | ||||
Foreign currency translation adjustment | 133,952 | 133,952 | ||||
Balance, value at Mar. 31, 2022 | $ 50 | $ 14,010 | $ 10,535,909 | $ (42,004) | $ 1,007,896 | $ 11,515,861 |
Balance, shares at Mar. 31, 2022 | 50,000 | 14,009,945 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 2,754,473 | $ 1,025,050 |
Adjustments to Reconcile Net Cash (Used in) Provided by Operating Activities | ||
Depreciation and amortization | 14,341 | 8,215 |
Recovery of uncollectible accounts | (3,198,342) | |
Provision for uncollectible accounts | 1,017,490 | |
Forgiveness of debt | (19,974) | |
Changes in Operating Assets and Liabilities: | ||
Decrease (Increase) in account receivable | 1,571,491 | (3,470,436) |
(Increase) in advance to suppliers - current | (4,084,189) | (622,291) |
(Increase) in other receivable | (32,238) | |
Decrease in prepaid expenses | 3,623 | |
(Decrease) increase in accounts payable | (514,613) | 122,015 |
Increase in accrued expenses and other payables | 168,684 | 327,023 |
(Decrease) in advances and deposits | (31,231) | 29,945 |
(Decrease) Increase in other payable - related party | (1,330) | |
Net Cash (Used in) Operating Activities | (2,354,108) | (2,578,186) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Loan receivable | 9,449,984 | (8,085,285) |
(Increase) in advance to suppliers - non-current | (6,194,239) | |
Acquisition of plant and equipment | (77,234) | |
Net Cash Provided by (Used in) Investing Activities | 3,255,745 | (8,162,519) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds for sale of common stock to related party | 2,000 | |
Proceeds for sale of common stock | 6,230,225 | |
Net Cash Provided by Financing Activities | 6,232,225 | |
Effect of Exchange Rate Fluctuation on Cash and Cash Equivalents | (1,001,934) | 554,244 |
Net (Decrease) Increase in Cash and Cash Equivalents | (100,297) | (3,954,236) |
Cash - Beginning of Period | 143,933 | 4,271,326 |
Cash - End of Period | 43,636 | 317,090 |
Cash paid during the period for: | ||
Income tax | ||
Interest |
Organization and Operations, an
Organization and Operations, and Going Concern | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations, and Going Concern | Note 1 – Organization and Operations, and Going Concern 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 under the name Soltrest, Inc. and changed its name to Shengda Network Technology Inc. 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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
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, 2021, filed with the SEC on September 28, 2021. 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. 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 or loss. 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. 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 March 31, 2022 and June 30, 2021, 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 an allowance for doubtful accounts of $ 685,725 1,640,389 Inventories Inventory is valued at the lower of cost or market. Inventories consist of finished goods. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of March 31, 2022 and June 30, 2021, the Company had no reserve for obsolete goods 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 March 31, 2022, 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 March 31, 2022 and June 30, 2021, 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 March 31, 2022 and June 30, 2021, the Company’s bank account in PRC had $ 0 140,277 500,000 Major Customer The Company has three major customers that accounted for 37 1,015,827 10 The Company has one major customer that accounted for 62 5,233,559 19 145,293 Major Vendor The Company has three major vendors that accounted for 92 % of purchase amount totaling $ 2,343,379 for the nine months ended March 31, 2022. The Company has two major vendors that accounted for 95 % of purchase amount totaling $ 1,229,789 for the three months ended March 31, 2022. 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 around 100 % of purchase amount totaling around $ 658,856 for the three months ended March 31, 2021. Commitment and Contingencies The Company is committed to pay operating lease costs of $ 4,607 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). 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 |
Advance to Suppliers
Advance to Suppliers | 9 Months Ended |
Mar. 31, 2022 | |
Advance To Suppliers | |
Advance to Suppliers | Note 3 - Advance to Suppliers Advance to suppliers – current, net of allowance amounted $ 3,097,902 and $ 0 as of March 31, 2022 and June 30, 2021, respectively. The Company has recorded an allowance for uncollectible amount of $ 1,017,490 as of March 31, 2022. Advance to suppliers – non-current amounted $ 6,257,263 and $ 0 as of March 31, 2022 and June 30, 2021, respectively. Advance to suppliers are mainly prepayment for suppliers. On February 2, 2022, the Company entered into a purchase agreement with an unrelated party, which is also the Company’s major supplier. The Company agreed to purchase $ 28,394,302 (RMB 18,000 million) from the unrelated party over next three years. As of March 31, 2022, the Company has made advance payment of $ 9,385,894 (RMB 5,950 million) to the unrelated party, of which $ 6,257,263 (RMB 39,666,667 ) are recorded as advance to suppliers – non-current. The payment is interest free and without collateral. The reasons for making such advance are that the Company started to provide products to clients who are in the internet live broadcasting business. The company has no inventory, and the supplier directly delivers the goods to customers according to the order. |
Loan Receivable
Loan Receivable | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loan Receivable | Note 4 - 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 $ 9,415,309 60,000,000 7.2 0 0 6,417,350 The Company assessed the implication on ASC 606, Revenue from Contracts with Customers, |
Property and Equipment
Property and Equipment | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5 – Property and Equipment Property and equipment consisted of the cost of a vehicle. As of March 31, 2022 and June 30, 2021, property and equipment costs were $ 81,370 and $ 79,892 , and accumulated depreciation of $ 23,191 and $ 11,384 , respectively. For the nine months ended March 31, 2022 and 2021, depreciation expense including amortization of right of use assets amounted to $ 14,341 and $ 8,215 , respectively. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 6 – Leases The Company has an operating lease for the rental of office space. Rent expense for the operating lease amounted to $ 0 3,321 The lease term was from May 11, 2020 and expired on December 10, 2020. The Company had paid rent up until 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. On March 20, 2022, the company renewed the one-year lease contract until March 30, 2023. The monthly rent is approximately $ 394 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 nine months ended March 31, 2022, the Company recorded $ 2,923 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 Liability Nine months ended March 31, Cash paid for operating lease liabilities $ 4,872 Weighted-average remaining lease term 1.00 Weighted-average discount rate 5 % Minimum future lease payments $ 4,607 The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31: SCHEDULE OF AMORTIZATION OF LEASE LIABILITIES 2023 $ 4,732 2024 - 2025 - 2026 - 2027 and thereafter - Total undiscounted lease liabilities 4,732 Less: Amount representing interest (126 ) Total present value of minimum lease payments $ 4,607 |
Advances and Deposits
Advances and Deposits | 9 Months Ended |
Mar. 31, 2022 | |
Advances And Deposits | |
Advances and Deposits | Note 7 – Advances and Deposits Advances and deposits amounted to $ 0 30,976 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | Note 8 – Accrued Expenses and Other Payables As of March 31, 2022 and June 30, 2021, accrued expenses and other payables amounted to $ 269,069 and $ 98,354 , respectively. |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 9 – Stockholders’ Equity The Company’s capitalization at March 31, 2022 was 1,000,000,000 0.001 20,000,000 0.001 Common Stock On July 1, 2021, the former President and Director of the Company agreed to forgive the working capital advance of $ 19,974 The Company did not issue any common stock during the nine months ended March 31, 2022. The total issued and outstanding shares of common stock were 14,009,945 14,009,945 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. The total issued and outstanding shares of Preferred Stock were 50,000 50,000 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions Related parties with whom the Company had transactions are: Schedule of Related Party Transaction 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) Related party loans represent working capital advances to the Company by former President and Director in the amount of $ 0 19,974 19,974 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2022 to the date these condensed consolidated financial statements were available to be issued and has determined that the following subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements. On April 22, 2022, the Company acquired 99% On April 22, 2022, the Company acquired 99% On April 22, 2022, the Company acquired 99% On August 28, 2020, the Company set up a 99% |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
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, 2021, filed with the SEC on September 28, 2021. 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. |
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 or loss. |
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. |
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 March 31, 2022 and June 30, 2021, 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 an allowance for doubtful accounts of $ 685,725 1,640,389 |
Inventories | Inventories Inventory is valued at the lower of cost or market. Inventories consist of finished goods. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of March 31, 2022 and June 30, 2021, the Company had no reserve for obsolete goods |
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 March 31, 2022, 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 March 31, 2022 and June 30, 2021, 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 March 31, 2022 and June 30, 2021, the Company’s bank account in PRC had $ 0 140,277 500,000 Major Customer The Company has three major customers that accounted for 37 1,015,827 10 The Company has one major customer that accounted for 62 5,233,559 19 145,293 Major Vendor The Company has three major vendors that accounted for 92 % of purchase amount totaling $ 2,343,379 for the nine months ended March 31, 2022. The Company has two major vendors that accounted for 95 % of purchase amount totaling $ 1,229,789 for the three months ended March 31, 2022. 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 around 100 % of purchase amount totaling around $ 658,856 for the three months ended March 31, 2021. |
Commitment and Contingencies | Commitment and Contingencies The Company is committed to pay operating lease costs of $ 4,607 |
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). |
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 Policies (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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: Schedule of Estimated Useful Lives Of Assets Items Useful life Vehicles 5 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Leases | |
Schedule of Operating ROU Assets and Lease Liability | 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 Liability Nine months ended March 31, Cash paid for operating lease liabilities $ 4,872 Weighted-average remaining lease term 1.00 Weighted-average discount rate 5 % Minimum future lease payments $ 4,607 |
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: SCHEDULE OF AMORTIZATION OF LEASE LIABILITIES 2023 $ 4,732 2024 - 2025 - 2026 - 2027 and thereafter - Total undiscounted lease liabilities 4,732 Less: Amount representing interest (126 ) Total present value of minimum lease payments $ 4,607 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction | Related parties with whom the Company had transactions are: Schedule of Related Party Transaction 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, _2
Organization and Operations, and Going Concern (Details Narrative) - Peaker International Trade Group Limited [Member] | Apr. 20, 2020USD ($)shares |
Restructuring Cost and Reserve [Line Items] | |
Number of common stock purchased shares | 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) | 9 Months Ended |
Mar. 31, 2022 | |
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 Policies (Details Narrative) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022CNY (¥) | Jun. 30, 2021USD ($) | |
Product Information [Line Items] | ||||||
Allowance for doubtful accounts | $ 685,725 | $ 685,725 | $ 1,640,389 | |||
Impairment of long-lived assets disposed | 0 | $ 0 | ||||
Cash at FDIC insurance | 250,000 | 250,000 | ||||
Cash | 0 | 0 | $ 140,277 | |||
Cash FSD insured amount | ¥ | ¥ 500,000 | |||||
Revenues | 1,412,849 | $ 765,616 | 2,759,820 | 8,499,788 | ||
Cost of Revenue | 1,294,515 | $ 659,003 | $ 2,547,439 | $ 6,969,140 | ||
Payment of Operating lease costs | $ 4,607 | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Major Customer [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of credit risk, percentage | 37.00% | |||||
Revenues | $ 1,015,827 | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Major Customer [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of credit risk, percentage | 10.00% | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Major Customer [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of credit risk, percentage | 19.00% | 62.00% | ||||
Revenues | $ 145,293 | $ 5,233,559 | ||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Three Major Vendors [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of credit risk, percentage | 92.00% | |||||
Cost of Revenue | $ 2,343,379 | |||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Major Vendor [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of credit risk, percentage | 95.00% | |||||
Cost of Revenue | $ 1,229,789 | |||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Two Major Vendors [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of credit risk, percentage | 100.00% | 100.00% | ||||
Cost of Revenue | $ 658,856 | $ 6,958,811 |
Advance to Suppliers (Details N
Advance to Suppliers (Details Narrative) | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Mar. 31, 2022CNY (¥) | Jun. 30, 2021USD ($) | |
Advance To Suppliers | ||||
Advance to suppliers, current | $ 3,097,902 | |||
Allowance for uncollectible amount | 1,017,490 | |||
Advance to suppliers, noncurrent | 6,257,263 | ¥ 39,666,667 | ||
Purchase from unrelated party | 28,394,302 | ¥ 18,000,000,000 | ||
Advance payment | $ 9,385,894 | ¥ 5,950 |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) | Oct. 25, 2020USD ($) | Oct. 25, 2020CNY (¥) | Mar. 31, 2022USD ($) | Jun. 30, 2021USD ($) |
Receivables [Abstract] | ||||
Proceeds from loan | $ 9,415,309 | ¥ 60,000,000 | ||
Annual interest rate | 7.20% | 7.20% | ||
Allowance of uncollectible loan receivable | $ 0 | |||
Allowance of loan receivable net | $ 0 | $ 6,417,350 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment, Gross | $ 81,370 | $ 79,892 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 23,191 | $ 11,384 | |
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 14,341 | $ 8,215 |
Schedule of Operating ROU Asset
Schedule of Operating ROU Assets and Lease Liability (Details) | Mar. 31, 2022USD ($) |
Leases | |
Cash paid for operating lease liabilities | $ 4,872 |
Weighted-average remaining lease term | 1 year |
Weighted-average discount rate | 5.00% |
Minimum future lease payments | $ 4,607 |
SCHEDULE OF AMORTIZATION OF LEA
SCHEDULE OF AMORTIZATION OF LEASE LIABILITIES (Details) | Mar. 31, 2022USD ($) |
Leases | |
2023 | $ 4,732 |
2024 | |
2025 | |
2026 | |
2027 and thereafter | |
Total undiscounted lease liabilities | 4,732 |
Less: Amount representing interest | (126) |
Total present value of minimum lease payments | $ 4,607 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | Jan. 05, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Operating lease cost | $ 0 | $ 3,321 | |
Lessee operating lease description | The lease term was from May 11, 2020 and expired on December 10, 2020. The Company had paid rent up until December 10, 2020. | ||
Lease cost | $ 2,923 | ||
Zhejiang Jingmai Electronic Commerce Ltd [Member] | |||
Operating lease cost | $ 394 | ||
Lessee 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. On March 20, 2022, the company renewed the one-year lease contract until March 30, 2023. The monthly rent is approximately $394. |
Advances and Deposits (Details
Advances and Deposits (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Advances And Deposits | ||
Advances and deposits | $ 0 | $ 30,976 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accounts Payable and Other Accrued Liabilities, Current | $ 269,069 | $ 98,354 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | Jul. 02, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | Nov. 10, 2020 |
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares issued | 14,009,945 | 14,009,945 | ||
Common stock, shares outstanding | 14,009,945 | 14,009,945 | ||
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. | |||
Preferred stock, shares issued | 50,000 | 50,000 | ||
Preferred stock, shares outstanding | 50,000 | 50,000 | ||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 1,000,000 | |||
Preferred stock, par value | $ 1 | |||
Former President And Director [Member] | ||||
Class of Stock [Line Items] | ||||
Forgiveness of debt | $ 19,974 |
Schedule of Related Party Trans
Schedule of Related Party Transaction (Details) | 9 Months Ended |
Mar. 31, 2022 | |
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 ($) | Jul. 02, 2021 | Mar. 31, 2022 | Jun. 30, 2021 |
President and Director [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Working capital | $ 0 | $ 19,974 | |
Former President And Director [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Forgiveness of debt | $ 19,974 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Apr. 22, 2022 | Apr. 28, 2020 |
Zhejiang Xiaojing E-Commerce Co., Ltd [Member] | ||
Subsequent Event [Line Items] | ||
Acquisition percentage | 99.00% | |
Subsequent Event [Member] | Yiwu Tianqi Enterprise Management Co., Ltd [Member] | ||
Subsequent Event [Line Items] | ||
Acquisition percentage | 99.00% | |
Subsequent Event [Member] | Zhejiang Jingmai E-Commerce Co., Ltd [Member] | ||
Subsequent Event [Line Items] | ||
Acquisition percentage | 99.00% | |
Subsequent Event [Member] | Zhejiang Jingtao Supply Chain Co., Ltd [Member] | ||
Subsequent Event [Line Items] | ||
Acquisition percentage | 99.00% |