Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Sino-Global Shipping America, Ltd. | |
Entity Central Index Key | 0001422892 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 17,239,037 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-34024 | |
Entity Incorporation State Country Code | VA |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets | ||
Cash | $ 141,438 | $ 3,142,650 |
Notes receivable | 383,792 | |
Accounts receivable, less allowance for doubtful accounts of $6,506,794 and $5,670,274 as of September 30, 2019 and June 30, 2019, respectively | 3,991,830 | 7,045,846 |
Other receivables, net | 9,569,216 | 4,335,715 |
Advances to suppliers-third parties | 55,953 | 124,140 |
Prepaid expenses and other current assets | 92,126 | 105,054 |
Due from related party, net | 472,715 | 807,965 |
Total Current Assets | 14,323,278 | 15,945,162 |
Property and equipment, net | 711,638 | 989,910 |
Right-of-use assets | 427,291 | |
Intangible assets, net | 73,889 | 89,722 |
Prepaid expenses | 225,619 | 519,503 |
Other long-term assets - deposits | 2,928,533 | 3,054,706 |
Total Assets | 18,690,248 | 20,599,003 |
Current Liabilities | ||
Advances from customers | 66,474 | 68,590 |
Accounts payable | 699,855 | 567,619 |
Lease liabilities - current | 158,455 | |
Taxes payable | 2,710,011 | 3,184,895 |
Accrued expenses and other current liabilities | 1,240,992 | 1,418,129 |
Total current liabilities | 4,875,787 | 5,239,233 |
Lease liabilities - noncurrent | 263,473 | |
Total liabilities | 5,139,260 | 5,239,233 |
Equity | ||
Preferred stock, 2,000,000 shares authorized, no par value, none issued | ||
Common stock, 50,000,000 shares authorized, no par value; 16,834,534 and 16,054,534 shares issued as of September 30, 2019 and June 30, 2019, respectively; 16,659,037 and 15,879,037 shares outstanding as of September 30, 2019 and June 30, 2019, respectively | 27,111,130 | 26,523,830 |
Additional paid-in capital | 1,923,115 | 2,066,906 |
Treasury stock, at cost, 175,497 shares as of September 30, 2019 and June 30, 2019 | (417,538) | (417,538) |
Accumulated deficit | (8,596,053) | (6,968,700) |
Accumulated other comprehensive loss | (1,317,317) | (671,106) |
Total Sino-Global Shipping America Ltd. Stockholders' Equity | 18,703,337 | 20,533,392 |
Non-controlling Interest | (5,152,349) | (5,173,622) |
Total Equity | 13,550,988 | 15,359,770 |
Total Liabilities and Equity | $ 18,690,248 | $ 20,599,003 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 6,506,794 | $ 5,670,274 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, par value | ||
Preferred stock, shares issued | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | ||
Common stock, shares issued | 16,834,534 | 16,054,534 |
Common stock, shares outstanding | 16,659,037 | 15,879,037 |
Treasury stock, shares | 175,497 | 175,497 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Net revenues - third parties | $ 1,786,226 | $ 6,177,533 |
Net revenues - related party | 322,000 | |
Total revenues | 1,786,226 | 6,499,533 |
Cost of revenues | (683,404) | (5,083,832) |
Gross profit | 1,102,822 | 1,415,701 |
Selling expenses | (130,029) | (108,369) |
General and administrative expenses | (1,091,455) | (973,752) |
Impairment loss of fixed assets and intangible asset | (327,632) | |
Provision for doubtful accounts | (889,078) | (871,081) |
Stock-based compensation | (414,708) | (817,208) |
Total operating expenses | (2,852,902) | (2,770,410) |
Operating loss | (1,750,080) | (1,354,709) |
Other income, net | 1,456 | 712 |
Net loss before provision for income taxes | (1,748,624) | (1,353,997) |
Income tax benefit | 66,466 | |
Net loss | (1,748,624) | (1,287,531) |
Net (loss) income attributable to non-controlling interest | (121,271) | 29,231 |
Net loss attributable to Sino-Global Shipping America, Ltd. | (1,627,353) | (1,316,762) |
Comprehensive loss | ||
Net loss | (1,748,624) | (1,287,531) |
Other comprehensive loss - foreign currency | (503,667) | (462,162) |
Comprehensive loss | (2,252,291) | (1,749,693) |
Less: Comprehensive income attributable to non-controlling interest | 21,273 | 106,725 |
Comprehensive loss attributable to Sino-Global Shipping America, Ltd. | $ (2,273,564) | $ (1,856,418) |
Loss per share | ||
Basic and diluted | $ (0.1) | $ (0.1) |
Weighted average number of common shares used in computation | ||
Basic and diluted | 16,073,087 | 13,145,535 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional paid-in capital | Treasury Stock | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest | Total |
Balance at Jun. 30, 2018 | $ 23,717,330 | $ 1,755,573 | $ (417,538) | $ (434,856) | $ (272,407) | $ (4,812,828) | $ 19,535,274 | |
Balance, shares at Jun. 30, 2018 | 13,271,032 | 175,497 | ||||||
Stock based compensation to employees | $ 473,000 | 473,000 | ||||||
Stock based compensation to employees, shares | 430,000 | |||||||
Stock based compensation to consultants | $ 63,500 | 63,500 | ||||||
Stock based compensation to consultants, shares | 50,000 | |||||||
Amortization of shares to management and employees | 91,000 | 91,000 | ||||||
Amortization of shares issued to consultants | 189,708 | 189,708 | ||||||
Foreign currency translation | (539,656) | 77,494 | (462,162) | |||||
Net income (loss) | (1,316,762) | 29,231 | (1,287,531) | |||||
Balance at Sep. 30, 2018 | $ 24,253,830 | 2,036,281 | $ (417,538) | (1,751,618) | (812,063) | (4,706,103) | 18,602,789 | |
Balance, shares at Sep. 30, 2018 | 13,751,032 | 175,497 | ||||||
Balance at Jun. 30, 2019 | $ 26,523,830 | 2,066,906 | $ (417,538) | (6,968,700) | (671,106) | (5,173,622) | 15,359,770 | |
Balance, shares at Jun. 30, 2019 | 16,054,534 | (175,497) | ||||||
Stock based compensation to employees | $ 63,000 | 63,000 | ||||||
Stock based compensation to employees, shares | 90,000 | |||||||
Stock based compensation to consultants | $ 524,300 | (324,000) | 200,300 | |||||
Stock based compensation to consultants, shares | 690,000 | |||||||
Amortization of shares to management and employees | ||||||||
Amortization of shares issued to consultants | 180,209 | 180,209 | ||||||
Foreign currency translation | (646,211) | 142,544 | (503,667) | |||||
Net income (loss) | (1,627,353) | (121,271) | (1,748,624) | |||||
Balance at Sep. 30, 2019 | $ 27,111,130 | $ 1,923,115 | $ (417,538) | $ (8,596,053) | $ (1,317,317) | $ (5,152,349) | $ 13,550,988 | |
Balance, shares at Sep. 30, 2019 | 16,834,534 | (175,497) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net loss | $ (1,748,624) | $ (1,287,531) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 414,708 | 817,208 |
Depreciation and amortization | 154,577 | 25,715 |
Non-cash lease expense | 40,426 | |
Provision for doubtful accounts | 889,078 | 871,081 |
Impairment loss of fixed assets and intangible asset | 327,632 | |
Deferred tax benefit | (194,500) | |
Changes in assets and liabilities | ||
Notes receivable | 386,233 | |
Accounts receivable | 2,159,346 | (3,709,059) |
Other receivables | (5,389,083) | 67,499 |
Advances to suppliers-third parties | 67,902 | (789,150) |
Advances to suppliers-related party | 3,322,210 | |
Prepaid expenses and other current assets | 81,209 | (290,651) |
Other long-term assets - deposits | 90,016 | (2,510,665) |
Due from related parties | 372,500 | 807,405 |
Advances from customers | (1,525) | (250,650) |
Accounts payable | 141,114 | (2,804,782) |
Taxes payable | (443,828) | (35,535) |
Lease liabilities | (39,201) | |
Accrued expenses and other current liabilities | (172,838) | 122,962 |
Net cash used in operating activities | (2,670,358) | (5,838,443) |
Investing Activities | ||
Acquisition of property and equipment | (4,538) | (830) |
Net cash used in investing activities | (4,538) | (830) |
Effect of exchange rate fluctuations on cash | (326,316) | (271,955) |
Net decrease in cash | (3,001,212) | (6,111,228) |
Cash at beginning of period | 3,142,650 | 7,098,259 |
Cash at end of period | 141,438 | 987,031 |
Supplemental information | ||
Income taxes paid | 35,191 | 9,108 |
Interest paid | 11,116 | |
Non-cash transactions of operating and investing activities | ||
Transfer of prepayment to intangible asset | 218,678 | |
Initial recognition of right-of-use assets and lease liabilities | $ 469,218 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Note 1. ORGANIZATION AND NATURE OF BUSINESS Founded in the United States (the "U.S.") in 2001, Sino-Global Shipping America, Ltd., a Virginia corporation ("Sino-Global" or the "Company"), is a global shipping and freight logistics integrated solution provider. The Company provides tailored solutions and value-added services to its customers to drive efficiency and control in related steps throughout the entire shipping and freight logistics chain. The Company conducts its business primarily through its wholly-owned subsidiaries in the People's Republic of China (the "PRC") (including Hong Kong) and the U.S. where a majority of the Company's clients are located. The Company operates in four operating segments including (1) shipping agency and management services, which are operated by its subsidiary in Hong Kong and the U.S.; (2) inland transportation management services, which are operated by its subsidiaries in the U.S.; (3) freight logistics services, which are operated by its subsidiaries in the PRC and the U.S.; (4) container trucking services, which are operated by its subsidiaries in the PRC and the U.S. The Company developed a mobile application which provides a full-service logistics platform for shipping operations between the U.S. and the PRC for short-haul trucking in the U.S. and in December, 2016, it signed a significant agreement with Sino-Trans Guangxi Logistics Co. Ltd. with a service period from July 1, 2017 to December 31, 2020. The Company has increased its business in the U.S. since the launch of the short haul container truck services web-based platform. The board of the directors (the "Board") of the Company subsequently authorized the Company to upgrade its enterprise resource planning system ("ERP") in order to manage its operations in real time throughout its multiple locations and to integrate with web applications. On September 11, 2017, the Company set up a wholly-owned subsidiary, Ningbo Saimeinuo Supply Chain Management Ltd. ("Sino Ningbo"), via its wholly-owned entity, Sino-Global Shipping New York Inc. This subsidiary primarily engages in transportation management and freight logistics services. Starting with fiscal year 2019, current trade dynamics make it more expensive for shipping carrier clients to cost-effectively move cargo into U.S. ports, and as a result, the Company realized a lower shipping volumes and less utilization of its online platform, which has caused the Company to shift its focus back to shipping agency business. The shipping agency industry in China has improved and the number of shipping agencies in overall in the country has decreased, due to both price and the inability of competitors to embrace technology as a resource in serving client needs. On September 3, 2018, the Company entered into a cooperation agreement with Ningbo Far-East Universal Shipping Agency Co., Ltd. to set up a joint venture in Hong Kong named Bright Far East International Shipping Agency Co., Ltd., to engage in worldwide shipping agency operations. The Company has a 51% equity interest in the joint venture. On May 23, 2019, Bright Far East International Shipping Agency Co., Ltd. incorporated in New York and terminated its registration in Hong Kong. There has been no major operation of the joint venture for the three months ended September 30, 2019. Currently the Company is conducting the shipping agency business through its wholly-owned Hong Kong subsidiary. On April 10, 2019, the Company entered into a cooperation agreement with Mr. Weijun Qin, the Chief Executive Officer of a shipping management company in China, to set up a joint venture in New York named State Priests Management Ltd. ("State Priests"), in which the Company will hold a 20% equity interest. On July 26, 2019, the Company signed a revised cooperation agreement with Mr. Weijun Qin which changed the Company's equity interest in State Priests from 20% to 90%. The Company has not provided any cash contribution to the joint venture and there has been no operation of the joint venture pending the International Ship Safety Management Certificate from the China Classification Society (the "Certificate"). Sino-Global Shipping New York Inc. started providing shipping management related services that do not require certification which includes arranging and coordinating for ship maintenance and inspection this quarter. On November 6, 2019, the Company signed a revised cooperation agreement with Mr. Weijun Qin to restructure their equity interest in State Priests. Due to State Priests failed to timely obtain the necessary approval from related authorities, Mr. Weijun Qin agreed to exchange 80% equity interest in Sea Continent Management Ltd. ("Sea Continent"), another entity Mr. Qin owns for the Company's 90% equity interest in State Priests. The equity transfer has been consummated. Sea Continent already has the Certificate but has no operations as of September 30, 2019. There has been no capital injection nor operations of State Priests and Sea Continent as of November 6, 2019, therefore no gain or loss will be recognized in the transaction. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The unaudited condensed consolidated financial statements include the accounts of all directly, indirectly owned subsidiaries and variable interest entity. All intercompany transactions and balances have been eliminated in consolidation. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the annual report on Form 10-K for the fiscal year ended June 30, 2019 filed on September 30, 2019. (b) Basis of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiaries, and its affiliates. All significant intercompany transactions and balances are eliminated in consolidation. Sino-Global Shipping Agency Ltd., a PRC corporation ("Sino-China"), is considered a variable interest entity ("VIE"), with the Company as the primary beneficiary. The Company, through Trans Pacific Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China's net income. The Company does not receive any payments from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. As a VIE, Sino-China's revenues are included in the Company's total revenues, and any loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China. The Company has consolidated Sino-China's operating results because the entities are under common control in accordance with Accounting Standards Codification ("ASC") 805-10, "Business Combinations". The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China. The carrying amount and classification of Sino-China's assets and liabilities included in the Company's unaudited condensed consolidated balance sheets were as follows: September 30, June 30, 2019 2019 Current assets $ 45,828 $ 16,474 Deposits 1,589 1,655 Property and equipment, net 50,708 95,765 Total assets $ 98,125 $ 113,894 Current liabilities: Other payables and accrued liabilities $ 29,908 $ 30,175 Total liabilities $ 29,908 $ 30,175 (c) Fair Value of Financial Instruments The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Unobservable inputs that reflect management's assumptions based on the best available information. The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments. (d) Use of Estimates and Assumptions The preparation of the Company's unaudited condensed consolidated financial statements in conformity with US 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company's unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. (e) Translation of Foreign Currency The accounts of the Company and its subsidiaries, including Sino-China and each of its branches are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The Company's functional currency is the U.S. dollar ("USD") while its subsidiaries in the PRC, including Sino-China, report their financial positions and results of operations in Renminbi ("RMB"). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements of Sino-China, Sino-Global Shipping Australia Pty Ltd. The exchange rates as of September 30, 2019 and June 30, 2019 and for the three months ended September 30, 2019 and 2018 are as follows: September 30, June 30, Three Months ended Foreign currency Balance Balance 2019 Profits/Loss 2018 Profits/Loss RMB:1USD 7.1489 6.8657 7.0146 6.8027 AUD:1USD 1.4823 1.4238 1.4592 1.3678 HKD:1USD 7.8402 7.8130 7.8300 7.8452 CAD:1USD 1.3242 1.3092 1.3200 1.3069 (f) Cash Cash consists of cash on hand and other highly liquid investments which are unrestricted as to withdrawal or use, and which have an original maturity of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of September 30, 2019 and June 30, 2019, cash balances of $97,219 and $2,993,913, respectively, were maintained at financial institutions in the PRC. $27,278 and $2,923,972 of these balances are not covered by insurance as the deposit insurance system in China only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). As of September 30, 2019 and June 30, 2019, a cash balance of $40,746 and $122,017, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of September 30, 2019 and June 30, 2019, a cash balance of $1,111 and $4,384, respectively, were maintained at financial institutions in Hong Kong and were insured by the Hong Kong Deposit Protection Board. (g) Notes receivable Notes receivable represents trade accounts receivable due from various customers where the customers' banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit request for payment to the customer's bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. (h) Receivables and Allowance for Doubtful Accounts Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers' historical payment history, their current credit-worthiness and current economic trends. Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts or over three years whichever comes earlier. Other receivables represent mainly customer advances, prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. For the three months ended September 30, 2019 and 2018, the Company wrote off $1,763 and nil of other receivables, respectively. (i) Property and Equipment, net Net property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 years Motor vehicles 3-10 years Computer and office equipment 1-5 years Furniture and fixtures 3-5 years System software 5 years Leasehold improvements Shorter of lease term or useful lives The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. For the three months ended September 30, 2019 and 2018, an impairment of $127,177 and nil were recorded, respectively. (j) Intangible Assets, net Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives: Logistics platform 3 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. For the three months ended September 30, 2019 and 2018, an impairment of $200,455 and nil were recorded, respectively. (k) Revenue Recognition The Company recognizes revenue which represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company identifies contractual performance obligations and determines whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company's revenue streams are recognized at a point in time. The Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company's revenues are recognized at a point in time after all performance obligations are satisfied. As of September 30, 2019, the Company had outstanding contracts amounting to approximately $2.4 million, all of which is expected to be completed within 9 months from September 30, 2019. Revenues by segments: For the Three Months Ended September 30, September 30, 2019 2018 Shipping and management agency services $ 500,000 $ - Inland transportation management services - 920,000 Freight logistics services 1,242,142 5,487,553 Container trucking services 44,084 91,980 Total $ 1,786,226 $ 6,499,533 ● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as advances from customers. ● Revenues from inland transportation management services are recognized when commodities are being released from the customers' warehouse. ● Revenues from freight logistics services are recognized when the related contractual services are rendered. For certain freight logistic contracts that the Company entered into with customer in first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to this contracts are presented net of related costs. Gross revenue and gross cost of revenue related to these contracts amounted to approximately $9.1 million and $8.5 million, respectively. ● Revenues from container trucking services are recognized when the related contractual services are rendered. (l) Taxation Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with US GAAP. Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of September 30, 2019 and June 30, 2019, respectively. Income tax returns for the years prior to 2015 are no longer subject to examination by US tax authorities. PRC Enterprise Income Tax PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles ("PRC GAAP") at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC. PRC Business Tax and Surcharges Revenues from services provided by the Company's PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to the PRC business tax of 5%. Business tax and surcharges are paid on gross revenues generated from shipping agency services minus the costs of services which are paid on behalf of the customers. In addition, under the PRC regulations, the Company's PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the calculated business tax payments. The Company's PRC subsidiaries and affiliates report revenues net of PRC's business tax and surcharges for all the periods presented in the accompanying condensed consolidated statements of operations. (m) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common shares of the Company by the weighted average number of common shares of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common shares of the Company were exercised or converted into common shares of the Company. Common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. For the three months ended September 30, 2019 and 2018 there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss. (n) Comprehensive Income (Loss) The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the "FASB") which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of Stockholders' equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. (o) Stock-based Compensation The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, "Compensation – Stock Compensation", which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee's requisite service period. The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 and FASB ASC Subtopic 505-50, "Equity-Based Payments to Non-employees". Under FASB ASC Topic 718 and FASB ASC Subtopic 505-50, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received. Valuations of stock based compensation are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company's stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. (p) Risks and Uncertainties The Company's business, financial position and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. (q) Liquidity In assessing the Company's liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company's liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of September 30, 2019, the Company's working capital was approximately $9.4 million and the Company had cash of approximately $0.1 million. The Company plans to fund continuing operations through identifying new prospective joint venture partners and strategic alliance opportunities for new revenue sources, and by reducing costs to improve profitability and replenish working capital. Although the Company believes that it can realize its current assets in the normal course of business, the Company's ability to fulfill its current obligations will depend on the future realization of its current assets and the future revenues generated from its operations. The Company expects to realize the balance of its current assets within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company may have to consider supplementing its available sources of funds through the following sources: ● the Company will continuously seek equity financing to support its working capital; On November 13, 2019, the Company entered into a cooperation agreement with Shanming Liang, a director of Guangxi Jinqiao Industrial Group Co., Ltd., to cooperate and expand the bulk cargo container services business. Shanming Liang agreed to purchase 1,000,000 shares of the Company's common stock at a purchase price of $1.00 per share for aggregate proceeds of $1.0 million. The Company and Mr. Liang further entered into a Share Purchase Agreement on November 14, 2019 to lay out the details of the transaction aforementioned. ● other available sources of financing from PRC banks and other financial institutions; and ● financial support and credit guarantee commitments from the Company's shareholders and directors. Based on the above considerations, the Company's management is of the opinion that it has sufficient funds to meet the Company's working capital requirements and current liabilities as they become due one year from issuance of these financial statements. However, there is no assurance that management will be successful in their plans. There are a number of factors that could potentially arise that could undermine the Company's plans, such as changes in the PRC government policy, economic conditions, and competitive pricing in the industries that the Company operates in. If management is unable to execute this plan, there would likely be a material adverse effect on the Company's business. All of these factors raise substantial doubt about the ability of the Company to continue as a going concern. (r) Recent Accounting Pronouncements Pronouncements adopted In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption assuming the Company will remain an emerging growth company at that date. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. A public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC adopting ASC Topic 842 for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. The Company adopted this ASU in the first quarter of fiscal year 2020 using modified retrospective transition approach at the beginning of the period of adoption. The Company recognized lease labilities of approximately $0.4 million, with corresponding right-of use ("ROU") assets of approximately the same amount based on the present value of the future minimum rental payments of leases, using a weighted average discount rate of approximately 8.98%. On July 1, 2019, the Company adopted ASU 2018-07 where awards to nonemployees are measured by estimating the fair value of the equity instruments to be issued. The ASU is required to be applied on a prospective basis to all new awards granted after the date of adoption. On July 13, 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I applies to entities that issue financial instruments such as warrants, convertible debt or convertible preferred stock that contain down round features. Part II does not have accounting impact. The ASU is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company adopted this ASU on July 1, 2019 and determined the adoption of this ASU did not have a material effect on the Company's unaudited condensed consolidated financial statements. Pronouncements not yet adopted In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 "Fair Value Measurement". ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company does not believe the adoption of this ASU will have a material effect on the Company's unaudited condensed consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders' concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements and related disclosures. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's unaudited condensed consolidated financial statements. (t) Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation mainly reclassifying advance to suppliers to other receivables (see Note 4 and 5). These reclassifications have no effect on the reported revenues, net loss or total assets. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 3. ACCOUNTS RECEIVABLE, NET The Company’s net accounts receivable is as follows: September 30, June 30, 2019 2019 Trade accounts receivable $ 10,498,624 $ 12,716,120 Less: allowances for doubtful accounts (6,506,794 ) (5,670,274 ) Accounts receivable, net $ 3,991,830 $ 7,045,846 Movement of allowance for doubtful accounts is as follows: September 30, June 30, Beginning balance $ 5,670,274 $ 1,682,228 Provision for doubtful accounts 1,023,931 4,091,056 Less: write-off/recovery (99,366 ) (88,882 ) Exchange rate effect (88,045 ) (14,128 ) Ending balance $ 6,506,794 $ 5,670,274 For the three months ended September 30, 2019 and 2018, the provision for doubtful accounts was $1,023,931 and $951,832, respectively. |
Other Receivables, Net
Other Receivables, Net | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Other Receivables, Net | Note 4. OTHER RECEIVABLES, NET The Company's net other receivables are as follows: September 30, June 30, 2019 2019 Advances to customers* $ 9,433,868 $ 4,237,270 Cash advances 93,564 54,953 Security deposit 41,784 43,492 Other receivables, net $ 9,569,216 $ 4,335,715 * As of September 30, 2019, the Company entered into certain contracts with customers (state-owned entities) where the Company's services included freight costs and cost of commodities to be shipped to customers' designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. |
Advances to Suppliers
Advances to Suppliers | 3 Months Ended |
Sep. 30, 2019 | |
Advances to Suppliers [Abstract] | |
ADVANCES TO SUPPLIERS | Note 5. ADVANCES TO SUPPLIERS The Company’s advances to suppliers – third parties are as follows: September 30, June 30, 2019 2019 Freight fees (1) $ 55,953 $ 123,767 Port fees - 373 Total advances to suppliers-third parties $ 55,953 $ 124,140 (1) The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from October to December 2019. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | Note 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS The Company's prepaid expenses and other assets are as follows: September 30, June 30, 2019 2019 Prepaid income taxes $ 45,624 $ 35,129 Other (including prepaid insurance, rent, listing fees) 46,502 69,925 Deposit for ERP (1) - 218,678 Prepaid leasing and service fees (2) 225,619 300,825 Total 317,745 624,557 Less: current portion (92,126 ) (105,054 ) Total noncurrent portion $ 225,619 $ 519,503 (1) On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye Technology Ltd Co. ("Tianjin Anboweiye"), to develop a more complete ERP system based on the Company's existing operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company paid a $437,357 deposit to Tianjin Anboweiye. The total contract price for phase one amounted to RMB 4,000,000, approximately $583,000. For the year ended June 30, 2019, the Company prepaid $218,679 of software development costs incurred during the preliminary project stage, which included planning and determining the functionality of the software. The Company integrated the shipping agencies business with the current ERP platform and the first phase of the ERP system was placed in use in July 2019 and to be amortized over three years (See Note 9). (2) On June 22, 2018, the Company entered into a contract to improve its IT infrastructure. The total contract consideration for the services is $1.2 million and the Company paid a deposit of approximately $1.0 million. The consideration is allocated as follows: $420,000 for operating hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up and $240,000 for continuing integration with the ERP system and data management for two years. For the three months ended September 30, 2019, the Company incurred $50,137 in IT for consulting costs, and $25,069 for continuing integration of the ERP system and data management costs. |
Other Long-Term Assets - Deposi
Other Long-Term Assets - Deposits | 3 Months Ended |
Sep. 30, 2019 | |
Other Long Term Assets Deposits [Abstract] | |
OTHER LONG-TERM ASSETS - DEPOSITS | Note 7. OTHER LONG-TERM ASSETS - DEPOSITS The Company's other long-term assets – deposits are as follows: September 30, June 30, 2019 2019 Rental and utilities deposits $ 52,087 $ 60,435 Freight logistics deposits (1) 2,876,446 2,994,271 Total other long-term assets - deposits $ 2,928,533 $ 3,054,706 (1) Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $2.8 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise, as well as any non-performance on the part of the Company and its vendors. The deposit is expected be repaid to the Company when either the contract terms are expired or the contract is terminated by the Company. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 8. PROPERTY AND EQUIPMENT, NET The Company's net property and equipment as follows: September 30, June 30, 2019 2019 Buildings $ 188,285 $ 196,050 Motor vehicles* 510,656 700,724 Computer equipment* 96,008 162,865 Office equipment* 43,076 69,278 Furniture and fixtures* 70,857 167,143 System software* 106,646 116,339 Leasehold improvements 775,106 807,078 Total 1,790,634 2,219,477 Less: Accumulated depreciation and amortization (1,078,996 ) (1,229,567 ) Property and equipment, net $ 711,638 $ 989,910 Depreciation and amortization expenses for the three months ended September 30, 2019 and 2018 were $120,520 and $9,882, respectively. *For the three months ended September 30, 2019 and 2018, an impairment of $127,177 and nil were recorded, respectively due to continued decrease in revenues from the inland transportation management segment. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Sep. 30, 2019 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | Note 9. INTANGIBLE ASSETS, NET Net intangible assets consisted of the following: September 30, June 30, 2019 2019 Full service logistics platforms $ 190,000 $ 190,000 Less: Accumulated amortization (116,111 ) (100,278 ) Intangible assets, net $ 73,889 $ 89,722 As part of the above-mentioned intelligent logistics platform (see Note 6), four information applications were completed by Tianjin Anboweiye in December 2017 and placed into service, including route planning and route execution for customers in China. The platforms are being amortized over three years. Amortization expenses amounted to $34,057 and $15,833 for the three months ended September 30, 2019 and 2018, respectively. In addition, first phase of the ERP system was placed in use in July 2019 and is being amortized over three years. However, due to the continued decrease in revenues from the inland transportation management segment, the Company recorded an impairment of $200,455 for the three months ended September 30, 2019. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | Note 10 – LEASES The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. All of the Company's real estate leases are classified as operating leases. The Company has several vehicle lease agreements and office lease agreements with lease terms ranging from two to three years. Upon adoption of ASU 2016-02, the Company recognized lease labilities of approximately $0.4 million, with corresponding ROU assets of approximately the same amount based on the present value of the future minimum rental payments of leases, using a weighted average discount rate of 8.98%. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration and the weighted average remaining lease terms are 1.75 years. For the three months ended September 30, 2019 and 2018, rent expense amounted to approximately $80,000 and $56,000, respectively. The three-year maturity of the Company's lease obligations is presented below: Twelve Months Ending September 30, Operating Lease Amount 2020 $ 190,418 2021 173,687 2022 113,552 Total lease payments 477,657 Less: Interest (55,729 ) Present value of lease liabilities $ 421,928 |
Equity
Equity | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
EQUITY | Note 11. EQUITY Stock issuance: The Company's outstanding warrants are classified as equity since they qualify for exception from derivative accounting as they are considered to be indexed to the Company's own stock and require net share settlement. The fair value of the warrants of $1,074,140 is valued based on the Black-Scholes-Merton model and is recorded as additional paid-in capital from common stock based on the relative fair value of proceeds received using the following assumptions: Series A Annual dividend yield - Expected life (years) 5.5 Risk-free interest rate 2.72 % Expected volatility 110.31 % Following is a summary of the status of warrants outstanding and exercisable as of September 30, 2019: Shares Weighted Average Warrants outstanding, as of June 30, 2019 2,000,000 $ 1.75 Issued - - Exercised - - Expired - - Warrants outstanding, as of September 30, 2019 2,000,000 $ 1.75 Warrants exercisable, as of September 30, 2019 2,000,000 $ 1.75 Warrants Outstanding Warrants Weighted Average 2018 Series A, 2,000,000 2,000,000 $ 1.75 3.96 years Stock based compensation: In March 2017, the Company entered into a consulting and advisory services agreement with a consulting entity, which provides management consulting services that include marketing program design and implementation and cooperative partner selection and management. The service period began in March 2017 and will end in February 2020. The Company issued 250,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $2.53 per share on March 22, 2017 to the consultant. These shares were valued at $632,500 and the consulting expense were $52,708 for both the three months ended September 30, 2019 and 2018. On October 23, 2017, the Company issued to its employees 130,000 shares of its restricted common stock valued at $2.80 per share. One quarter of the total number of common shares became vested on each of November 16, 2017, February 16, 2018, May 16, 2018 and August 16, 2018. These shares were valued at $364,000. For the three months ended September 30, 2019 and 2018, $0 and $91,000 were recorded as compensation expense respectively. On October 27, 2017, the Company issued 200,000 shares of restricted common stock on the grant date with an aggregated fair value of $548,000 to a consulting company pursuant to a consulting agreement. The scope of services primarily covered advising on business development, strategic planning and compliance during the one-year service period from October 17, 2017 to October 16, 2018. $0 and $137,000 were recorded as compensation expense for three months ended September 30, 2019 and 2018, respectively. On June 7, 2018, the Company issued 400,000 shares of common stock with a fair value of $508,000 to a consulting entity pursuant to a service agreement. The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June 2020. The consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal instalments. The Company recorded legal expense of $63,500 for both the three months ended September 30, 2019 and 2018. On September 21, 2018, the Company issued 430,000 shares of common stock valued at $1.10 per share on the grant date with an aggregated fair value of $473,000 under the 2014 Stock Incentive Plan (the "Plan") to three employees, vesting immediately. The Company recorded compensation expense of $0 and $473,000 for the three months ended September 30, 2019 and 2018, respectively. On April 8, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from April 8, 2019 to October 7, 2019. The Company issued 300,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $0.85 per share on April 16, 2019 to the consulting entity. These shares were valued at $255,000. The Company recorded compensation expense of $127,500 for the three months ended September 30, 2019. On July 1, 2019, the Company issued 600,000 restricted shares of common stock with a fair value of $432,000 to a China-based company that specializes in the port agency business and/or its designees pursuant to a consulting service agreement. The scope of services primarily covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded compensation expense of $108,000 for the three months ended September 30, 2019. Under a Board resolution dated January 30, 2016, the Company's CEO is authorized to grant to the employees up to one million shares under the Plan. On July 22, 2019, the Company granted 90,000 shares of restricted common stock valued at $0.70 per share on the grant date with an aggregated fair value of $63,000 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $63,000 for the three months ended September 30, 2019. During the three months ended September 30, 2019 and 2018, $414,708 and $817,208 were recorded as stock-based compensation expense, respectively. On August 26, 2019, the Company issued 40,000 shares of common stock with an aggregated fair value of $28,800 to Chineseinvestors.com as settlement of a breach of service contract lawsuit. Stock Options: A summary of the outstanding options is presented in the table below: Options Weighted Average Options outstanding, as of June 30, 2019 85,000 $ 1.21 Granted - - Exercised - - Cancelled, forfeited or expired - - Options outstanding, as of September 30, 2019 85,000 $ 1.21 Options exercisable, as of September 30, 2019 85,000 $ 1.21 Following is a summary of the status of options outstanding and exercisable at September 30, 2019: Outstanding Options Exercisable Options Exercise Price Number Average Average Number Average $ 2.01 10,000 3.34 years $ 2.01 10,000 3.34 years $ 1.10 75,000 1.82 years $ 1.10 75,000 1.82 years 85,000 85,000 |
Non-Controlling Interest
Non-Controlling Interest | 3 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | Note 12. NON-CONTROLLING INTEREST The Company's non-controlling interest consists of the following: September 30, June 30, 2019 2019 Sino-China: Original paid-in capital $ 356,400 $ 356,400 Additional paid-in capital 1,044 1,044 Accumulated other comprehensive income 420,393 268,297 Accumulated deficit (6,133,371 ) (6,066,145 ) (5,355,534 ) (5,440,404 ) Trans Pacific Logistics Shanghai Ltd. 203,185 266,782 Total $ (5,152,349 ) $ (5,173,622 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 13. COMMITMENTS AND CONTINGENCIES Contractual Obligations: The Company entered into a contract to upgrade its ERP system on December 27, 2017. The total contract costs amounted to RMB 4,000,000, or approximately $560,000, of which the Company made a deposit of $437,357 during the year ended June 30, 2018. The remaining balance will be settled upon the completion of services during fiscal year 2021. On June 22, 2018, the Company entered into a contract to improve its IT infrastructure. The total contract price for the services is $1.2 million and the Company paid a deposit of $1.0 million during the year ended June 30, 2018. The remaining $0.2 million will be paid upon completion of services during fiscal year 2020. Amount Twelve Months Ending September 30, 2020 $ 200,000 2021 122,643 Total $ 322,643 Contingencies The Labor Contract Law of the PRC requires employers to insure the liability of the severance payments for terminated employees that have worked for the employers for at least two years prior to January 1, 2008. The employers will be liable for one month for severance pay for each year of the service provided by the employees. As of September 30, 2019 and June 30, 2019, the Company has estimated its severance payments of approximately $95,000 and $94,000, respectively, which have not been reflected in its unaudited condensed consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future. Sino-Global has employment agreements with each of Mr. Lei Cao, Ms. Tuo Pan and Mr. Zhikang Huang. These employment agreements provide for five-year terms that extend automatically in the absence of termination notice provided at least 60 days prior to the anniversary date of the agreement. If the Company fails to provide this notice or if the Company wishes to terminate an employment agreement in the absence of cause, then the Company is obligated to provide at least 30 days' prior notice. In such case during the initial term of the agreement, the Company would need to pay such executive (i) the remaining salary through the date of December 31, 2023, (ii) two times of the then applicable annual salary if there has been no Change in Control, as defined in the employment agreements or three-and-half times of the then applicable annual salary if there is a Change in Control. From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. The Company was named as a defendant in a breach of service contract lawsuit in the amount of $225,000 filed with the California Superior Court on January 19, 2018. The Company filed a motion with the court to force the plaintiff into arbitration rather than to litigate the dispute in court based on the arbitration provision in the contract. The California Superior Court approved its motion to stay the case pending the resolution of the arbitration. In Indianapolis, this matter was settled in exchange for 40,000 restrictive shares of common stock of the Company to the plaintiff, by the execution of a settlement agreement by both parties on August 23, 2019 and the issuance of 40,000 restricted shares on August 26, 2019. As a result, the arbitration in Indianapolis and the litigation in California has been dismissed respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 14. INCOME TAXES The Company's income tax expenses for the three months ended September 30, 2019 and 2018 are as follows: For the Three Months Ended 2019 2018 Current U.S. $ - $ (30,597 ) Hong Kong - - PRC - (97,437 ) - (128,034 ) Deferred U.S. - 194,500 PRC - - Total income tax expense $ - $ 66,466 The Company's deferred tax assets are comprised of the following: September 30, June 30, Allowance for doubtful accounts $ 1,126,000 $ 1,121,000 Net operating loss 1,293,000 1,024,000 Total deferred tax assets 2,419,000 2,145,000 Valuation allowance (2,419,000 ) (2,145,000 ) Deferred tax assets, net - long-term $ - $ - The Company's operations in the U.S. incurred a cumulative pre-2018 NOL of approximately $3,781,000 as of June 30, 2019 which may reduce future federal taxable income. The NOL will expire in 2037 for the net operating losses generated prior to the year ended June 30, 2019. During the three months ended September 30, 2019, approximately $985,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $207,000. As of September 30, 2019, the Company's cumulative NOL amounted to approximately $4,766,000 which may reduce future federal taxable income, of which approximately $3,781,000 will expire in 2037 and the remaining balance carried forward indefinitely. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company's future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future earnings as a result of the deterioration of trade negotiation between US and China in 2019. The Company provided a 100% allowance for its DTA as of September 30, 2019. The net increase in valuation for the three months ended September 30, 2019 amounted to approximately $274,000 based on management's reassessment of the amount of the Company's deferred tax assets that are more likely than not to be realized. The Company's taxes payable consists of the following: September 30, June 30, 2019 2019 VAT tax payable $ 675,133 $ 1,045,513 Corporate income tax payable 1,972,230 2,075,248 Others 62,648 64,134 Total $ 2,710,011 $ 3,184,895 |
Concentrations
Concentrations | 3 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | Note 15. CONCENTRATIONS Major Customer For the three months ended September 30, 2019, three customers accounted for approximately 37.5%, 30.2% and 28.0% of the Company's revenues, respectively. As of September 30, 2019, all of these customers accounted for approximately 4.8% of the Company's gross accounts receivable. For the three months ended September 30, 2018, three customers accounted for approximately 27.8%, 22.2% and 18.5% of the Company's revenues, respectively. At September 30, 2018, these three customers accounted for approximately 30.1% of the Company's gross accounts receivable. Major Suppliers For the three months ended September 30, 2019, one supplier accounted for approximately 66.6% of the total cost of revenues. For the three months ended September 30, 2018, four suppliers accounted for approximately 32.1%, 20.3%, 18.2% and 12.6% of the total cost of revenues, respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | Note 16. SEGMENT REPORTING ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in unaudited condensed consolidated financial statements for detailing the Company's business segments. The Company's chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined that it has four operating segments: (1) shipping agency and management services; (2) inland transportation management services; (3) freight logistics services and (4) container trucking services. The following tables present summary information by segment for the three months ended September 30, 2019 and 2018, respectively: For the Three Months Ended September 30, 2019 Shipping Inland Transportation Management Services Freight Container Trucking Services Total Revenues - Related party $ - $ - $ - $ - $ - - Third parties $ 500,000 $ - $ 1,242,142 * $ 44,084 $ 1,786,226 Total revenues $ 500,000 $ - $ 1,242,142 $ 44,084 $ 1,786,226 Cost of revenues $ 95,822 $ - $ 547,684 * $ 39,898 $ 683,404 Gross profit $ 404,178 $ - $ 694,458 $ 4,186 $ 1,102,822 Depreciation and amortization $ 102,774 $ - $ 7,702 $ 44,101 $ 154,577 Total capital expenditures $ 4,538 $ - $ - $ - $ 4,538 Gross margin% 80.8 % - % 55.9 % 9.5 % 61.7 % * For certain freight logistics contracts that the Company entered into with customer in first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended September 30, 2019, gross revenues and gross cost of revenues related to these contracts amounted to approximately $9.1 million and $8.5 million, respectively. For the Three Months Ended September 30, 2018 Shipping Inland Transportation Management Services Freight Container Trucking Services Total Revenues - Related party $ - $ 322,000 $ - $ - $ 322,000 - Third parties $ - $ 598,000 $ 5,487,553 $ 91,980 $ 6,177,533 Total revenues $ - $ 920,000 $ 5,487,553 $ 91,980 $ 6,499,533 Cost of revenues $ - $ 59,874 $ 4,965,992 $ 57,966 $ 5,083,832 Gross profit $ - $ 860,126 $ 521,561 $ 34,014 $ 1,415,701 Depreciation and amortization $ - $ 20,488 $ 476 $ 4,751 $ 25,715 Total capital expenditures $ - $ - $ - $ 830 $ 830 Gross margin% - 93.5 % 9.5 % 37.0 % 21.8 % Total assets as of: September 30, June 30, 2019 2019 Shipping Agency and Management Services $ 3,118,858 $ 3,549,093 Freight Logistic Services 15,545,582 17,017,696 Container Trucking Services 25,808 32,215 Total Assets $ 18,690,248 $ 20,599,003 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 17. RELATED PARTY TRANSACTIONS As of September 30, 2019 and June 30, 2019, the outstanding amounts due from a related party consist of the following: September 30, June 30, 2019 2019 Tianjin Zhiyuan Investment Group Co., Ltd. $ 525,239 $ 897,739 Less: allowance for doubtful accounts (52,524 ) (89,774 ) Total $ 472,715 $ 807,965 In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (the "Zhiyuan Investment Group") and TEWOO Chemical & Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, "Zhiyuan"). Zhiyuan Investment Group is owned by Mr. Zhang, the largest shareholder of the Company. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment Group whereby it would provide certain advisory services and help control potential commodities loss during the transportation process. The amount due from Zhiyuan Investment Group as of September 30, 2019 was $525,239 and the Company provided a 10% allowance for doubtful accounts of the amount due from Zhiyuan. For the three months ended September 30, 2019, the Company recovered $37,250 of allowance for doubtful accounts of the amount due from Zhiyuan. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 18. SUBSEQUENT EVENTS On October 3, 2019, the Company issued 230,000 shares of common stock valued at $0.68 per share on the grant date with an aggregated fair value of $156,400 under the Plan to one employee, vesting immediately. On October 14, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from October 14, 2019 to April 13, 2020. The Company issued 300,000 shares of common stock valued at $222,000 as remuneration for the services. The shares bear a standard restrictive legend under the Securities Act of 1933, as amended. On November 6, 2019, the Company signed a revised cooperation agreement with Mr. Weijun Qin to restructure their equity interest in State Priests. Due to State Priests' delayed approval from related authorities, Mr. Weijun Qin agreed to exchange 80% equity interest in Sea Continent for the Company's 90% equity interest in State Priests. The equity transfer has been consummated. Sea Continent already has the Certificate but has no operations as of September 30, 2019. On November 13, 2019, the Company entered into a cooperation agreement with Shanming Liang, a director of Guangxi Jinqiao Industrial Group Co., Ltd., to cooperate and expand the bulk cargo container services business. Shanming Liang agreed to purchase 1,000,000 shares of the Company's common stock at a purchase price of $1.00 per share for aggregate proceeds of $1 million. The Company and Mr. Liang further entered into a Share Purchase Agreement on November 14, 2019 to lay out the details of the transaction aforementioned. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The unaudited condensed consolidated financial statements include the accounts of all directly, indirectly owned subsidiaries and variable interest entity. All intercompany transactions and balances have been eliminated in consolidation. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the annual report on Form 10-K for the fiscal year ended June 30, 2019 filed on September 30, 2019. |
Basis of Consolidation | (b) Basis of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiaries, and its affiliates. All significant intercompany transactions and balances are eliminated in consolidation. Sino-Global Shipping Agency Ltd., a PRC corporation ("Sino-China"), is considered a variable interest entity ("VIE"), with the Company as the primary beneficiary. The Company, through Trans Pacific Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China's net income. The Company does not receive any payments from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. As a VIE, Sino-China's revenues are included in the Company's total revenues, and any loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China. The Company has consolidated Sino-China's operating results because the entities are under common control in accordance with Accounting Standards Codification ("ASC") 805-10, "Business Combinations". The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China. The carrying amount and classification of Sino-China's assets and liabilities included in the Company's unaudited condensed consolidated balance sheets were as follows: September 30, June 30, 2019 2019 Current assets $ 45,828 $ 16,474 Deposits 1,589 1,655 Property and equipment, net 50,708 95,765 Total assets $ 98,125 $ 113,894 Current liabilities: Other payables and accrued liabilities $ 29,908 $ 30,175 Total liabilities $ 29,908 $ 30,175 |
Fair Value of Financial Instruments | (c) Fair Value of Financial Instruments The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Unobservable inputs that reflect management's assumptions based on the best available information. The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments. |
Use of Estimates and Assumptions | (d) Use of Estimates and Assumptions The preparation of the Company's unaudited condensed consolidated financial statements in conformity with US 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company's unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. |
Translation of Foreign Currency | (e) Translation of Foreign Currency The accounts of the Company and its subsidiaries, including Sino-China and each of its branches are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The Company's functional currency is the U.S. dollar ("USD") while its subsidiaries in the PRC, including Sino-China, report their financial positions and results of operations in Renminbi ("RMB"). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements of Sino-China, Sino-Global Shipping Australia Pty Ltd. The exchange rates as of September 30, 2019 and June 30, 2019 and for the three months ended September 30, 2019 and 2018 are as follows: September 30, June 30, Three Months ended Foreign currency Balance Balance 2019 Profits/Loss 2018 Profits/Loss RMB:1USD 7.1489 6.8657 7.0146 6.8027 AUD:1USD 1.4823 1.4238 1.4592 1.3678 HKD:1USD 7.8402 7.8130 7.8300 7.8452 CAD:1USD 1.3242 1.3092 1.3200 1.3069 |
Cash | (f) Cash Cash consists of cash on hand and other highly liquid investments which are unrestricted as to withdrawal or use, and which have an original maturity of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of September 30, 2019 and June 30, 2019, cash balances of $97,219 and $2,993,913, respectively, were maintained at financial institutions in the PRC, which were not insured by any of the Chinese authorities. As of September 30, 2019 and June 30, 2019, a cash balance of $40,746 and $122,017, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of September 30, 2019 and June 30, 2019, a cash balance of $1,111 and $4,384, respectively, were maintained at financial institutions in Hong Kong and were insured by the Hong Kong Deposit Protection Board. |
Notes receivable | (g) Notes receivable Notes receivable represents trade accounts receivable due from various customers where the customers' banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit request for payment to the customer's bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. |
Receivables and Allowance for Doubtful Accounts | (h) Receivables and Allowance for Doubtful Accounts Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers' historical payment history, their current credit-worthiness and current economic trends. Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts or over three years whichever comes earlier. Other receivables represent mainly customer advances, prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. For the three months ended September 30, 2019 and 2018, the Company wrote off $1,763 and nil of other receivables, respectively. |
Property and Equipment, net | (i) Property and Equipment, net Net property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 years Motor vehicles 3-10 years Computer and office equipment 1-5 years Furniture and fixtures 3-5 years System software 5 years Leasehold improvements Shorter of lease term or useful lives The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. For the three months ended September 30, 2019 and 2018, an impairment of $127,177 and nil were recorded, respectively. |
Intangible Assets, net | (j) Intangible Assets, net Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives: Logistics platform 3 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. For the three months ended September 30, 2019 and 2018, an impairment of $200,455 and nil were recorded, respectively. |
Revenue Recognition | (k) Revenue Recognition The Company recognizes revenue which represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company identifies contractual performance obligations and determines whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company's revenue streams are recognized at a point in time. The Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company's revenues are recognized at a point in time after all performance obligations are satisfied. As of September 30, 2019, the Company had outstanding contracts amounting to approximately $2.4 million, all of which is expected to be completed within 9 months from September 30, 2019. Revenues by segments: For the Three Months Ended September 30, September 30, 2019 2018 Shipping and management agency services $ 500,000 $ - Inland transportation management services - 920,000 Freight logistics services 1,242,142 5,487,553 Container trucking services 44,084 91,980 Total $ 1,786,226 $ 6,499,533 ● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as advances from customers. ● Revenues from inland transportation management services are recognized when commodities are being released from the customers' warehouse. ● Revenues from freight logistics services are recognized when the related contractual services are rendered. For certain freight logistic contracts that the Company entered into with customer in first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to this contracts are presented net of related costs. Gross revenue and gross cost of revenue related to these contracts amounted to approximately $9.1 million and $8.5 million, respectively. ● Revenues from container trucking services are recognized when the related contractual services are rendered. |
Taxation | (l) Taxation Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with US GAAP. Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of September 30, 2019 and June 30, 2019, respectively. Income tax returns for the years prior to 2015 are no longer subject to examination by US tax authorities. PRC Enterprise Income Tax PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles ("PRC GAAP") at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC. PRC Business Tax and Surcharges Revenues from services provided by the Company's PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to the PRC business tax of 5%. Business tax and surcharges are paid on gross revenues generated from shipping agency services minus the costs of services which are paid on behalf of the customers. In addition, under the PRC regulations, the Company's PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the calculated business tax payments. The Company's PRC subsidiaries and affiliates report revenues net of PRC's business tax and surcharges for all the periods presented in the accompanying condensed consolidated statements of operations. |
Earnings (loss) per Share | (m) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common shares of the Company by the weighted average number of common shares of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common shares of the Company were exercised or converted into common shares of the Company. Common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. For the three months ended September 30, 2019 and 2018 there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss. |
Comprehensive Income (loss) | (n) Comprehensive Income (Loss) The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the "FASB") which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of Stockholders' equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Stock-based Compensation | (o) Stock-based Compensation The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, "Compensation – Stock Compensation", which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee's requisite service period. The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 and FASB ASC Subtopic 505-50, "Equity-Based Payments to Non-employees". Under FASB ASC Topic 718 and FASB ASC Subtopic 505-50, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received. Valuations of stock based compensation are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company's stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. |
Risks and Uncertainties | (p) Risks and Uncertainties The Company's business, financial position and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. |
Liquidity | (q) Liquidity In assessing the Company's liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company's liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of September 30, 2019, the Company's working capital was approximately $9.4 million and the Company had cash of approximately $0.1 million. The Company plans to fund continuing operations through identifying new prospective joint venture partners and strategic alliance opportunities for new revenue sources, and by reducing costs to improve profitability and replenish working capital. Although the Company believes that it can realize its current assets in the normal course of business, the Company's ability to fulfill its current obligations will depend on the future realization of its current assets and the future revenues generated from its operations. The Company expects to realize the balance of its current assets within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company may have to consider supplementing its available sources of funds through the following sources: ● the Company will continuously seek equity financing to support its working capital; On November 13, 2019, the Company entered into a cooperation agreement with Shanming Liang, a director of Guangxi Jinqiao Industrial Group Co., Ltd., to cooperate and expand the bulk cargo container services business. Shanming Liang agreed to purchase 1,000,000 shares of the Company's common stock at a purchase price of $1.00 per share for aggregate proceeds of $1.0 million. The Company and Mr. Liang further entered into a Share Purchase Agreement on November 14, 2019 to lay out the details of the transaction aforementioned. ● other available sources of financing from PRC banks and other financial institutions; and ● financial support and credit guarantee commitments from the Company's shareholders and directors. Based on the above considerations, the Company's management is of the opinion that it has sufficient funds to meet the Company's working capital requirements and current liabilities as they become due one year from issuance of these financial statements. However, there is no assurance that management will be successful in their plans. There are a number of factors that could potentially arise that could undermine the Company's plans, such as changes in the PRC government policy, economic conditions, and competitive pricing in the industries that the Company operates in. If management is unable to execute this plan, there would likely be a material adverse effect on the Company's business. All of these factors raise substantial doubt about the ability of the Company to continue as a going concern. |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements Pronouncements adopted In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption assuming the Company will remain an emerging growth company at that date. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. A public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC adopting ASC Topic 842 for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. The Company adopted this ASU in the first quarter of fiscal year 2020 using modified retrospective transition approach at the beginning of the period of adoption. The Company recognized lease labilities of approximately $0.4 million, with corresponding right-of use ("ROU") assets of approximately the same amount based on the present value of the future minimum rental payments of leases, using a weighted average discount rate of approximately 8.98%. On July 1, 2019, the Company adopted ASU 2018-07 where awards to nonemployees are measured by estimating the fair value of the equity instruments to be issued. The ASU is required to be applied on a prospective basis to all new awards granted after the date of adoption. On July 13, 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I applies to entities that issue financial instruments such as warrants, convertible debt or convertible preferred stock that contain down round features. Part II does not have accounting impact. The ASU is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company adopted this ASU on July 1, 2019 and determined the adoption of this ASU did not have a material effect on the Company's unaudited condensed consolidated financial statements. Pronouncements not yet adopted In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 "Fair Value Measurement". ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company does not believe the adoption of this ASU will have a material effect on the Company's unaudited condensed consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders' concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements and related disclosures. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's unaudited condensed consolidated financial statements. |
Reclassification | (t) Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation mainly reclassifying advance to suppliers to other receivables (see Note 4 and 5). These reclassifications have no effect on the reported revenues, net loss or total assets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Sino-China's assets and liabilities | September 30, June 30, 2019 2019 Current assets $ 45,828 $ 16,474 Deposits 1,589 1,655 Property and equipment, net 50,708 95,765 Total assets $ 98,125 $ 113,894 Current liabilities: Other payables and accrued liabilities $ 29,908 $ 30,175 Total liabilities $ 29,908 $ 30,175 |
Schedule of translation of foreign currency exchange rates | September 30, June 30, Three Months ended Foreign currency Balance Balance 2019 Profits/Loss 2018 Profits/Loss RMB:1USD 7.1489 6.8657 7.0146 6.8027 AUD:1USD 1.4823 1.4238 1.4592 1.3678 HKD:1USD 7.8402 7.8130 7.8300 7.8452 CAD:1USD 1.3242 1.3092 1.3200 1.3069 |
Schedule of estimated useful lives | Buildings 20 years Motor vehicles 3-10 years Computer and office equipment 1-5 years Furniture and fixtures 3-5 years System software 5 years Leasehold improvements Shorter of lease term or useful lives |
Schedule of intangible assets estimated useful lives | Logistics platform 3 years |
Schedule of revenues by segments | For the Three Months Ended September 30, September 30, 2019 2018 Shipping and management agency services $ 500,000 $ - Inland transportation management services - 920,000 Freight logistics services 1,242,142 5,487,553 Container trucking services 44,084 91,980 Total $ 1,786,226 $ 6,499,533 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of net accounts receivable | September 30, June 30, 2019 2019 Trade accounts receivable $ 10,498,624 $ 12,716,120 Less: allowances for doubtful accounts (6,506,794 ) (5,670,274 ) Accounts receivable, net $ 3,991,830 $ 7,045,846 |
Schedule of movement of allowance for doubtful accounts | September 30, June 30, Beginning balance $ 5,670,274 $ 1,682,228 Provision for doubtful accounts 1,023,931 4,091,056 Less: write-off/recovery (99,366 ) (88,882 ) Exchange rate effect (88,045 ) (14,128 ) Ending balance $ 6,506,794 $ 5,670,274 |
Other Receivables, Net (Tables)
Other Receivables, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Other receivables, net | September 30, June 30, 2019 2019 Advances to customers* $ 9,433,868 $ 4,237,270 Cash advances 93,564 54,953 Security deposit 41,784 43,492 Other receivables, net $ 9,569,216 $ 4,335,715 * As of September 30, 2019, the Company entered into certain contracts with customers (state-owned entities) where the Company’s services included freight costs and cost of commodities to be shipped to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Advances to Suppliers [Abstract] | |
Schedule of advances to suppliers - third parties | September 30, June 30, 2019 2019 Freight fees (1) $ 55,953 $ 123,767 Port fees - 373 Total advances to suppliers-third parties $ 55,953 $ 124,140 (1) The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from October to December 2019. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | September 30, June 30, 2019 2019 Prepaid income taxes $ 45,624 $ 35,129 Other (including prepaid insurance, rent, listing fees) 46,502 69,925 Deposit for ERP (1) - 218,678 Prepaid leasing and service fees (2) 225,619 300,825 Total 317,745 624,557 Less: current portion (92,126 ) (105,054 ) Total noncurrent portion $ 225,619 $ 519,503 (1) On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye Technology Ltd Co. (“Tianjin Anboweiye”), to develop a more complete ERP system based on the Company’s existing operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company paid a $437,357 deposit to Tianjin Anboweiye. The total contract price for phase one amounted to RMB 4,000,000, approximately $583,000. For the year ended June 30, 2019, the Company prepaid $218,679 of software development costs incurred during the preliminary project stage, which included planning and determining the functionality of the software. The Company integrated the shipping agencies business with the current ERP platform and the first phase of the ERP system was placed in use in July 2019 and to be amortized over three years (See Note 9). (2) On June 22, 2018, the Company entered into a contract to improve its IT infrastructure. The total contract consideration for the services is $1.2 million and the Company paid a deposit of approximately $1.0 million. The consideration is allocated as follows: $420,000 for operating hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up and $240,000 for continuing integration with the ERP system and data management for two years. For the three months ended September 30, 2019, the Company incurred $50,137 in IT for consulting costs, and $25,069 for continuing integration of the ERP system and data management costs. |
Other Long-Term Assets - Depo_2
Other Long-Term Assets - Deposits (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Long Term Assets Deposits [Abstract] | |
Schedule of other long - term assets- deposits | September 30, June 30, 2019 2019 Rental and utilities deposits $ 52,087 $ 60,435 Freight logistics deposits (1) 2,876,446 2,994,271 Total other long-term assets - deposits $ 2,928,533 $ 3,054,706 (1) Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $2.8 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise, as well as any non-performance on the part of the Company and its vendors. The deposit is expected be repaid to the Company when either the contract terms are expired or the contract is terminated by the Company. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of net property and equipment | September 30, June 30, 2019 2019 Buildings $ 188,285 $ 196,050 Motor vehicles* 510,656 700,724 Computer equipment* 96,008 162,865 Office equipment* 43,076 69,278 Furniture and fixtures* 70,857 167,143 System software* 106,646 116,339 Leasehold improvements 775,106 807,078 Total 1,790,634 2,219,477 Less: Accumulated depreciation and amortization (1,078,996 ) (1,229,567 ) Property and equipment, net $ 711,638 $ 989,910 Depreciation and amortization expenses for the three months ended September 30, 2019 and 2018 were $120,520 and $9,882, respectively. *For the three months ended September 30, 2019 and 2018, an impairment of $127,177 and nil were recorded, respectively due to continued decrease in revenues from the inland transportation management segment. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Intangible Assets, Net [Abstract] | |
Schedule of intangible assets | September 30, June 30, 2019 2019 Full service logistics platforms $ 190,000 $ 190,000 Less: Accumulated amortization (116,111 ) (100,278 ) Intangible assets, net $ 73,889 $ 89,722 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease obligations | Twelve Months Ending September 30, Operating Lease Amount 2020 $ 190,418 2021 173,687 2022 113,552 Total lease payments 477,657 Less: Interest (55,729 ) Present value of lease liabilities $ 421,928 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of additional paid-in capital from common stock based on relative fair value | Series A Annual dividend yield - Expected life (years) 5.5 Risk-free interest rate 2.72 % Expected volatility 110.31 % |
Schedule status of warrants outstanding and exercisable | Shares Weighted Average Warrants outstanding, as of June 30, 2019 2,000,000 $ 1.75 Issued - - Exercised - - Expired - - Warrants outstanding, as of September 30, 2019 2,000,000 $ 1.75 Warrants exercisable, as of September 30, 2019 2,000,000 $ 1.75 |
Schedule of warants outstanding | Warrants Outstanding Warrants Weighted Average 2018 Series A, 2,000,000 2,000,000 $ 1.75 3.96 years |
Schedule of options | Options Weighted Average Options outstanding, as of June 30, 2019 85,000 $ 1.21 Granted - - Exercised - - Cancelled, forfeited or expired - - Options outstanding, as of September 30, 2019 85,000 $ 1.21 Options exercisable, as of September 30, 2019 85,000 $ 1.21 |
Schedule of status of options outstanding and exercisable | Outstanding Options Exercisable Options Exercise Price Number Average Average Number Average $ 2.01 10,000 3.34 years $ 2.01 10,000 3.34 years $ 1.10 75,000 1.82 years $ 1.10 75,000 1.82 years 85,000 85,000 |
Non-Controlling Interest (Table
Non-Controlling Interest (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of non-controlling interest | September 30, June 30, 2019 2019 Sino-China: Original paid-in capital $ 356,400 $ 356,400 Additional paid-in capital 1,044 1,044 Accumulated other comprehensive income 420,393 268,297 Accumulated deficit (6,133,371 ) (6,066,145 ) (5,355,534 ) (5,440,404 ) Trans Pacific Logistics Shanghai Ltd. 203,185 266,782 Total $ (5,152,349 ) $ (5,173,622 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual obligations | Amount Twelve Months Ending September 30, 2020 $ 200,000 2021 122,643 Total $ 322,643 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax benefit (expense) | For the Three Months Ended 2019 2018 Current U.S. $ - $ (30,597 ) Hong Kong - - PRC - (97,437 ) - (128,034 ) Deferred U.S. - 194,500 PRC - - Total income tax expense $ - $ 66,466 |
Schedule of deferred tax assets | September 30, June 30, Allowance for doubtful accounts $ 1,126,000 $ 1,121,000 Net operating loss 1,293,000 1,024,000 Total deferred tax assets 2,419,000 2,145,000 Valuation allowance (2,419,000 ) (2,145,000 ) Deferred tax assets, net - long-term $ - $ - |
Schedule of income taxes payable | September 30, June 30, 2019 2019 VAT tax payable $ 675,133 $ 1,045,513 Corporate income tax payable 1,972,230 2,075,248 Others 62,648 64,134 Total $ 2,710,011 $ 3,184,895 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of information by segment | For the Three Months Ended September 30, 2019 Shipping Inland Transportation Management Services Freight Container Trucking Services Total Revenues - Related party $ - $ - $ - $ - $ - - Third parties $ 500,000 $ - $ 1,242,142 * $ 44,084 $ 1,786,226 Total revenues $ 500,000 $ - $ 1,242,142 $ 44,084 $ 1,786,226 Cost of revenues $ 95,822 $ - $ 547,684 * $ 39,898 $ 683,404 Gross profit $ 404,178 $ - $ 694,458 $ 4,186 $ 1,102,822 Depreciation and amortization $ 102,774 $ - $ 7,702 $ 44,101 $ 154,577 Total capital expenditures $ 4,538 $ - $ - $ - $ 4,538 Gross margin% 80.8 % - % 55.9 % 9.5 % 61.7 % * For certain freight logistics contracts that the Company entered into with customer in first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended September 30, 2019, gross revenues and gross cost of revenues related to these contracts amounted to approximately $9.1 million and $8.5 million, respectively. For the Three Months Ended September 30, 2018 Shipping Inland Transportation Management Services Freight Container Trucking Services Total Revenues - Related party $ - $ 322,000 $ - $ - $ 322,000 - Third parties $ - $ 598,000 $ 5,487,553 $ 91,980 $ 6,177,533 Total revenues $ - $ 920,000 $ 5,487,553 $ 91,980 $ 6,499,533 Cost of revenues $ - $ 59,874 $ 4,965,992 $ 57,966 $ 5,083,832 Gross profit $ - $ 860,126 $ 521,561 $ 34,014 $ 1,415,701 Depreciation and amortization $ - $ 20,488 $ 476 $ 4,751 $ 25,715 Total capital expenditures $ - $ - $ - $ 830 $ 830 Gross margin% - 93.5 % 9.5 % 37.0 % 21.8 % |
Schedule of segment reporting total assets | September 30, June 30, 2019 2019 Shipping Agency and Management Services $ 3,118,858 $ 3,549,093 Freight Logistic Services 15,545,582 17,017,696 Container Trucking Services 25,808 32,215 Total Assets $ 18,690,248 $ 20,599,003 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of outstanding amounts due from related party | September 30, June 30, 2019 2019 Tianjin Zhiyuan Investment Group Co., Ltd. $ 525,239 $ 897,739 Less: allowance for doubtful accounts (52,524 ) (89,774 ) Total $ 472,715 $ 807,965 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) | Nov. 06, 2019 | Jul. 26, 2019 | Apr. 10, 2019 | Sep. 03, 2018 |
Organization and Nature of Business (Textual) | ||||
Ownership and joint venture equity, percentage | 20.00% | 51.00% | ||
Subsequent Event [Member] | ||||
Organization and Nature of Business (Textual) | ||||
Ownership and joint venture equity, percentage | 90.00% | |||
Subsequent Event [Member] | Sea Continent [Member] | ||||
Organization and Nature of Business (Textual) | ||||
Ownership and joint venture equity, percentage | 80.00% | |||
Minimum [Member] | ||||
Organization and Nature of Business (Textual) | ||||
Ownership and joint venture equity, percentage | 20.00% | |||
Maximum [Member] | ||||
Organization and Nature of Business (Textual) | ||||
Ownership and joint venture equity, percentage | 90.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Schedule of Sino-China's assets and liabilities | ||
Current assets | $ 14,323,278 | $ 15,945,162 |
Property and equipment, net | 711,638 | 989,910 |
Total assets | 18,690,248 | 20,599,003 |
Current liabilities: | ||
Total liabilities | 5,139,260 | 5,239,233 |
Sino - China [Member] | ||
Schedule of Sino-China's assets and liabilities | ||
Current assets | 45,828 | 16,474 |
Deposits | 1,589 | 1,655 |
Property and equipment, net | 50,708 | 95,765 |
Total assets | 98,125 | 113,894 |
Current liabilities: | ||
Other payables and accrued liabilities | 29,908 | 30,175 |
Total liabilities | $ 29,908 | $ 30,175 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
RMB:1USD [Member] | Foreign currency [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 7.0146 | 6.8027 | |
AUD:1USD [Member] | Foreign currency [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 1.4592 | 1.3678 | |
HKD:1USD [Member] | Foreign currency [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 7.8300 | 7.8452 | |
CAD:1USD [Member] | Foreign currency [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, profit/loss | 1.3200 | 1.3069 | |
Balance Sheet [Member] | RMB:1USD [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 7.1489 | 6.8657 | |
Balance Sheet [Member] | AUD:1USD [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 1.4823 | 1.4238 | |
Balance Sheet [Member] | HKD:1USD [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 7.8402 | 7.8130 | |
Balance Sheet [Member] | CAD:1USD [Member] | |||
Schedule of translation of foreign currency exchange rates | |||
Foreign currency, exchange rates, balance sheet | 1.3242 | 1.3092 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) | 3 Months Ended |
Sep. 30, 2019 | |
Buildings [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 20 years |
Motor vehicles [Member] | Maximum [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 10 years |
Motor vehicles [Member] | Minimum [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 3 years |
Computer and office equipment | Maximum [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 5 years |
Computer and office equipment | Minimum [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 1 year |
Furniture and fixtures [Member] | Maximum [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 5 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 3 years |
System software [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment, net | 5 years |
Leasehold improvements [Member] | |
Schedule of estimated useful lives | |
Estimated useful lives for property and equipment | Shorter of lease term or useful lives |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) | 3 Months Ended |
Sep. 30, 2019 | |
Logistics platform [Member] | |
Finite-lived intangible asset, useful life | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 4) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Shipping and management agency services | $ 500,000 | |
Inland transportation management services | 920,000 | |
Freight logistics services | 1,242,142 | 5,487,553 |
Container trucking services | 44,084 | 91,980 |
Total | $ 1,786,226 | $ 6,499,533 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details Textual) | Nov. 13, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Summary of Significant Accounting Policies (Textual) | ||||||
Cash balance at U.S. financial institutions, not insured by the FDIC | $ 27,278 | $ 2,923,972 | ||||
Cash balance at U.S. financial institutions, FDIC insured amount | 40,746 | 122,017 | ||||
Insured each depositor at one bank | $ 70,000 | |||||
Percentage of business tax | 5.00% | |||||
Percentage of construction taxes | 7.00% | |||||
Percentage of education surcharges | 3.00% | |||||
Unexercised options included in the computation of diluted earnings per share | shares | ||||||
Percentage of income tax | 25.00% | |||||
Compensation expenses, description | The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD $500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of September 30, 2019 and June 30, 2019, a cash balance of $1,111 and $4,384, respectively, were maintained at financial institutions in Hong Kong and were insured by the Hong Kong Deposit Protection Board. | |||||
Wrote off other receivables | $ 1,763 | |||||
Additional operating liabilities | $ 400,000 | |||||
Description of receivables and allowance for doubtful accounts | The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. | |||||
Impairment | $ 127,177 | |||||
Impairment of intangible assets | 200,455 | |||||
Gross revenue | 9,100,000 | |||||
Gross cost of revenue | 8,500,000 | |||||
Working capital | 9,400,000 | |||||
Cash | $ 141,438 | $ 987,031 | 3,142,650 | $ 7,098,259 | ||
Weighted average discount rate | 8.98% | 8.98% | ||||
Subsequent Event [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Purchase of common stock | shares | 1,000,000 | |||||
Purchase price per share | $ / shares | $ 1 | |||||
Aggregate proceeds | $ 1,000,000 | |||||
Sino - China [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Percentage of net income | 90.00% | |||||
RMB [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Insured each depositor at one bank | ¥ | ¥ 500,000 | |||||
PRC [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Cash balance at U.S. financial institutions, not insured by the FDIC | $ 97,219 | $ 2,993,913 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 10,498,624 | $ 12,716,120 |
Less: allowances for doubtful accounts | (6,506,794) | (5,670,274) |
Accounts receivable, net | $ 3,991,830 | $ 7,045,846 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Receivables [Abstract] | |||
Beginning balance | $ 5,670,274 | $ 1,682,228 | $ 1,682,228 |
Provision for doubtful accounts | 1,023,931 | $ 951,832 | 4,091,056 |
Less: write-off/recovery | (99,366) | (88,882) | |
Exchange rate effect | (88,045) | (14,128) | |
Ending balance | $ 6,506,794 | $ 5,670,274 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Accounts Receivable, Net (Textual) | |||
Provision for doubtful accounts | $ 1,023,931 | $ 951,832 | $ 4,091,056 |
Other Receivables, Net (Details
Other Receivables, Net (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | |
Other Receivables Net | |||
Advances to customers | [1] | $ 9,433,868 | $ 4,237,270 |
Cash advances | 93,564 | 54,953 | |
Security deposit | 41,784 | 43,492 | |
Other receivables, net | $ 9,569,216 | $ 4,335,715 | |
[1] | As of September 30, 2019, the Company entered into certain contracts with customers (state-owned entities) where the Company's services included freight costs and cost of commodities to be shipped to customers' designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | |
Schedule of advances to suppliers | |||
Freight fees | [1] | $ 55,953 | $ 123,767 |
Port fees | 373 | ||
Total advances to suppliers-third parties | $ 55,953 | $ 124,140 | |
[1] | The advanced freight fee is the Company's prepayment made for various shipping costs for shipments from October to December 2019 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid income taxes | $ 45,624 | $ 35,129 | |
Other (including prepaid insurance, rent, listing fees) | 46,502 | 69,925 | |
Deposit for ERP | [1] | 218,678 | |
Prepaid leasing and service fees | [2] | 225,619 | 300,825 |
Total | 317,745 | 624,557 | |
Less: current portion | (92,126) | (105,054) | |
Total noncurrent portion | $ 225,619 | $ 519,503 | |
[1] | On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye Technology Ltd Co. ("Tianjin Anboweiye"), to develop a more complete ERP system based on the Company's existing operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company paid a $437,357 deposit to Tianjin Anboweiye. The total contract price for phase one amounted to RMB 4,000,000, approximately $583,000. For the year ended June 30, 2019, the Company prepaid $218,679 of software development costs incurred during the preliminary project stage, which included planning and determining the functionality of the software. The Company integrated the shipping agencies business with the current ERP platform and the first phase of the ERP system was placed in use in July 2019 and to be amortized over three years (See Note 9). | ||
[2] | On June 22, 2018, the Company entered into a contract to improve its IT infrastructure. The total contract consideration for the services is $1.2 million and the Company paid a deposit of approximately $1.0 million. The consideration is allocated as follows: $420,000 for operating hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up and $240,000 for continuing integration with the ERP system and data management for two years. For the three months ended September 30, 2019, the Company incurred $50,137 in IT for consulting costs, and $25,069 for continuing integration of the ERP system and data management costs. |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details Textual) | Jun. 22, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) |
Prepaid Expenses and Other Current Assets (Textual) | ||||
Paid of deposits | $ 1,000,000 | |||
Deposit to Tianjin Anboweiye | $ 437,357 | |||
Total contract price | $ 583,000 | |||
Total contract for services | $ 1,200,000 | |||
IT infrastructure contract, description | The consideration is allocated as follows: $420,000 for operating hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two-year period; $60,000 for operating system set up and $240,000 for continuing integration with the ERP system and data management for two years. For the three months ended September 30, 2019, the Company incurred $50,137 in IT for consulting costs, and $25,069 for continuing integration of the ERP system and data management costs. | |||
Software development cost | $ 218,679 | |||
RMB [Member] | ||||
Prepaid Expenses and Other Current Assets (Textual) | ||||
Total contract price | ¥ | ¥ 4,000,000 |
Other Long-Term Assets - Depo_3
Other Long-Term Assets - Deposits (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | |
Other Long Term Assets Deposits [Abstract] | |||
Rental and utilities deposits | $ 52,087 | $ 60,435 | |
Freight logistics deposits | [1] | 2,876,446 | 2,994,271 |
Total other long-term assets - deposits | $ 2,928,533 | $ 3,054,706 | |
[1] | Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $2.8 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise, as well as any non-performance on the part of the Company and its vendors. The deposit is expected be repaid to the Company when either the contract terms are expired or the contract is terminated by the Company. |
Other Long-Term Assets - Depo_4
Other Long-Term Assets - Deposits (Details Textual) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Other Long-Term Assets - Deposits (Textual) | |
Deposits are refundable amount | $ 2,800,000 |
RMB [Member] | |
Other Long-Term Assets - Deposits (Textual) | |
Deposits are refundable amount | $ 20,000,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | ||
Total | $ 1,790,634 | $ 2,219,477 | ||
Less: Accumulated depreciation and amortization | (1,078,996) | (1,229,567) | ||
Property and equipment, net | 711,638 | 989,910 | ||
Buildings [Member] | ||||
Total | 188,285 | 196,050 | ||
Motor vehicles [Member] | ||||
Total | [1] | 510,656 | 700,724 | |
Computer equipment [Member] | ||||
Total | [1] | 96,008 | 162,865 | |
Office equipment [Member] | ||||
Total | [1] | 43,076 | 69,278 | |
Furniture and fixtures [Member] | ||||
Total | [1] | 70,857 | 167,143 | |
System software [Member] | ||||
Total | [1] | 106,646 | 116,339 | |
Leasehold improvements [Member] | ||||
Total | $ 775,106 | $ 807,078 | [1] | |
[1] | For the three months ended September 30, 2019 and 2018, an impairment of $127,177 and nil were recorded, respectively due to continued decrease in revenues from the inland transportation management segment. |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property and Equipment, Net (Textual) | ||
Depreciation and amortization expense | $ 120,520 | $ 9,882 |
Impairment | $ 127,177 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Intangible Assets, Net [Abstract] | ||
Full service logistics platforms | $ 190,000 | $ 190,000 |
Less: Accumulated amortization | (116,111) | (100,278) |
Intangible assets, net | $ 73,889 | $ 89,722 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Intangible Assets, Net (Textual) | ||
Amortization expenses of intangible assets | $ 34,057 | $ 15,833 |
Impairment of intangible assets | $ 200,455 |
Leases (Details)
Leases (Details) | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 190,418 |
2021 | 173,687 |
2022 | 113,552 |
Total lease payments | 477,657 |
Less: Interest | (55,729) |
Present value of lease liabilities | $ 421,928 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Leases (Textual) | ||
Lease liability | $ 400,000 | |
Weighted average discount rate | 8.98% | |
Rent expenses | $ 80,000 | $ 56,000 |
Equity (Details)
Equity (Details) - Series A [Member] | 3 Months Ended |
Sep. 30, 2019 | |
Auction Market Preferred Securities, Stock Series [Line Items] | |
Annual dividend yield | |
Expected life (years) | 5 years 6 months |
Risk-free interest rate | 2.72% |
Expected volatility | 110.31% |
Equity (Details 1)
Equity (Details 1) - Warrant [Member] | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Shares | |
Warrants outstanding, beginning balance | shares | 2,000,000 |
Issued | shares | |
Exercised | shares | |
Expired | shares | |
Warrants outstanding, ending balance | shares | 2,000,000 |
Warrants exercisable | shares | 2,000,000 |
Weighted Average Exercise Price | |
Warrants outstanding, weighted average exercise price, beginning balance | $ / shares | $ 1.75 |
Issued | $ / shares | |
Exercised | $ / shares | |
Expired | $ / shares | |
Warrants outstanding, weighted average exercise price, ending balance | $ / shares | 1.75 |
Warrants exercisable, weighted average exercise price | $ / shares | $ 1.75 |
Equity (Details 2)
Equity (Details 2) - Series A [Member] | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Warrants Exercisable | shares | 2,000,000 |
Weighted Average Exercise Price | $ / shares | $ 1.75 |
Average Remaining Contractual Life | 3 years 11 months 15 days |
Equity (Details 3)
Equity (Details 3) - Stock Option [Member] | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Options outstanding, Beginning | shares | 85,000 |
Shares, Granted | shares | |
Shares, Exercised | shares | |
Shares, Cancelled, forfeited or expired | shares | |
Shares, Options outstanding, Ending | shares | 85,000 |
Shares, Options exercisable | shares | 85,000 |
Weighted Average Exercise Price, Options outstanding, Beginning | $ / shares | $ 1.21 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Cancelled, forfeited or expired | $ / shares | |
Weighted Average Exercise Price, Options outstanding, Ending | $ / shares | 1.21 |
Weighted Average Exercise Price, Options exercisable | $ / shares | $ 1.21 |
Equity (Details 4)
Equity (Details 4) - Equity Option [Member] - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Outstanding Options, Exercise Price | $ 1.21 | $ 1.21 |
Outstanding Options, Number | 85,000 | 85,000 |
Exercisable Options, Average Exercise Price | $ 1.21 | |
Exercisable Options, Number | 85,000 | |
Exercise Price Range One [Member] | ||
Outstanding Options, Exercise Price | $ 2.01 | |
Outstanding Options, Number | 10,000 | |
Outstanding Options, Average Remaining Contractual Life | 3 years 4 months 2 days | |
Exercisable Options, Average Exercise Price | $ 2.01 | |
Exercisable Options, Number | 10,000 | |
Exercisable Options, Average Remaining Contractual Life | 3 years 4 months 2 days | |
Exercise Price Range Two [Member] | ||
Outstanding Options, Exercise Price | $ 1.10 | |
Outstanding Options, Number | 75,000 | |
Outstanding Options, Average Remaining Contractual Life | 1 year 9 months 25 days | |
Exercisable Options, Average Exercise Price | $ 1.10 | |
Exercisable Options, Number | 75,000 | |
Exercisable Options, Average Remaining Contractual Life | 1 year 9 months 25 days |
Equity (Details Textual)
Equity (Details Textual) - USD ($) | Apr. 08, 2019 | Jun. 07, 2018 | Oct. 23, 2017 | Aug. 26, 2019 | Jul. 02, 2019 | Apr. 16, 2019 | Sep. 21, 2018 | Oct. 27, 2017 | Mar. 22, 2017 | Jan. 30, 2016 | Sep. 30, 2019 | Sep. 30, 2018 |
Equity (Textual) | ||||||||||||
Fair value of warrants | $ 1,074,140 | |||||||||||
Stock option expense | 414,708 | $ 817,208 | ||||||||||
Service Agreement [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Fair value of common stock | $ 508,000 | |||||||||||
Issuance of common stock, shares | 400,000 | |||||||||||
Employees [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Shares vested | 364,000 | |||||||||||
Shares of restricted common stock issued | 130,000 | |||||||||||
Compensation expenses | 91,000 | |||||||||||
Restricted share price | $ 2.80 | |||||||||||
Legal expenses | 63,500 | |||||||||||
Consultants [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Common stock issued for services, shares | 255,000 | 40,000 | 600,000 | 300,000 | 430,000 | 250,000 | 90,000 | |||||
Common stock price per share | $ 1.10 | |||||||||||
Restricted common stock value issued | $ 632,500 | |||||||||||
Fair value of common stock | $ 28,800 | $ 432,000 | $ 473,000 | $ 63,000 | ||||||||
Restricted share price | $ 0.85 | $ 2.53 | $ 0.70 | |||||||||
Consultants One [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Shares of restricted common stock issued | 200,000 | |||||||||||
Restricted common stock value issued | $ 548,000 | |||||||||||
Compensation expenses | 0 | 137,000 | ||||||||||
Consultants Two [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Consulting expenses | 52,708 | 52,708 | ||||||||||
Consultants Three [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Consulting expenses | 0 | 473,000 | ||||||||||
Consultants Four [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Consulting expenses | 127,500 | |||||||||||
Consultants Five [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Consulting expenses | 108,000 | |||||||||||
Consultants Six [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Consulting expenses | 63,000 | |||||||||||
Consultants Seven [Member] | ||||||||||||
Equity (Textual) | ||||||||||||
Consulting expenses | $ 414,708 | $ 817,208 |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Noncontrolling Interest [Line Items] | ||
Original paid-in capital | $ 27,111,130 | $ 26,523,830 |
Additional paid-in capital | 1,923,115 | 2,066,906 |
Accumulated other comprehensive income | (1,317,317) | (671,106) |
Accumulated deficit | (8,596,053) | (6,968,700) |
Total | (5,152,349) | (5,173,622) |
Sino-Global Shipping Agency Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Original paid-in capital | 356,400 | 356,400 |
Additional paid-in capital | 1,044 | 1,044 |
Accumulated other comprehensive income | 420,393 | 268,297 |
Accumulated deficit | (6,133,371) | (6,066,145) |
Total | (5,355,534) | (5,440,404) |
Trans Pacific Logistics Shanghai Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Total | $ 203,185 | $ 266,782 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Sep. 30, 2019USD ($) |
Twelve Months Ending September 30, | |
2020 | $ 200,000 |
2021 | 122,643 |
Future minimum lease payments, amount | $ 322,643 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) | Jun. 22, 2018USD ($) | Jan. 19, 2018USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2019CNY (¥) | Aug. 26, 2019shares | Aug. 23, 2019shares |
Commitments and Contingency (Textual) | ||||||||
Severance payments | $ 95,000 | $ 94,000 | ||||||
Contract costs amount | 560,000 | |||||||
Deposit paid | $ 1,000,000 | $ 437,357 | ||||||
Remaining paid | $ 200,000 | |||||||
Maturity date | Jun. 30, 2020 | Jun. 30, 2021 | ||||||
Lawsuit amount | $ 225,000 | |||||||
Restrictive shares of common stock | shares | 40,000 | 40,000 | ||||||
RMB [Member] | ||||||||
Commitments and Contingency (Textual) | ||||||||
Contract costs amount | ¥ | ¥ 4,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Current | ||
Current income tax benefit (expense) | $ (128,034) | |
Deferred | ||
Total income tax expense | 66,466 | |
U.S.[Member] | ||
Current | ||
Current income tax benefit (expense) | (30,597) | |
Deferred | ||
Total income tax expense | 194,500 | |
Hong Kong [Member] | ||
Current | ||
Current income tax benefit (expense) | ||
Deferred | ||
Total income tax expense | ||
PRC [Member] | ||
Current | ||
Current income tax benefit (expense) | (97,437) | |
Deferred | ||
Total income tax expense |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets | ||
Allowance for doubtful accounts | $ 1,126,000 | $ 1,121,000 |
Net operating loss | 1,293,000 | 1,024,000 |
Total deferred tax assets | 2,419,000 | 2,145,000 |
Valuation allowance | (2,419,000) | (2,145,000) |
Deferred tax assets, net - long-term |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
VAT tax payable | $ 675,133 | $ 1,045,513 |
Corporate income tax payable | 1,972,230 | 2,075,248 |
Others | 62,648 | 64,134 |
Total | $ 2,710,011 | $ 3,184,895 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Income Taxes (Textual) | ||
Increase in valuation allowance | $ 274,000 | |
Net operating loss | $ 3,781,000 | |
Operating loss carry-forward expiry date | Dec. 31, 2037 | Dec. 31, 2037 |
Additional Net operating loss | $ 985,000 | |
Federal taxable income Net operating loss | 4,766,000 | |
Taxable income | 985,000 | |
Future reduce income | $ 3,781,000 | |
Allowance of DTA | 100.00% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | |
Sep. 30, 2019SuppliersCustomers | Sep. 30, 2018SuppliersCustomers | |
Concentrations (Textual) | ||
Number of customer | Customers | 3 | 3 |
Number of suppliers | Suppliers | 1 | 4 |
Revenues [Member] | Major Supplier One [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 66.60% | 32.10% |
Revenues [Member] | Major Supplier Two [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 20.30% | |
Revenues [Member] | Major Supplier Three [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 18.20% | |
Revenues [Member] | Major Supplier Four [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 12.60% | |
Revenues [Member] | Major Customer One [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 37.50% | 27.80% |
Revenues [Member] | Major Customer Two [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 30.20% | 22.20% |
Revenues [Member] | Major Customer Three [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 28.00% | 18.50% |
Accounts receivable [Member] | Major Customer One [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 4.80% | 30.10% |
Accounts receivable [Member] | Major Customer Two [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 4.80% | 30.10% |
Accounts receivable [Member] | Major Customer Three [Member] | ||
Concentrations (Textual) | ||
Concentrations risks, percentage | 4.80% | 30.10% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues | |||
- Related party | $ 322,000 | ||
- Third parties | 1,786,226 | 6,177,533 | |
Total revenues | 1,786,226 | 6,499,533 | |
Cost of revenues | 683,404 | 5,083,832 | |
Gross profit | 1,102,822 | 1,415,701 | |
Depreciation and amortization | 154,577 | 25,715 | |
Total capital expenditures | $ 4,538 | $ 830 | |
Gross margin% | 61.70% | 21.80% | |
Shipping Agency and Management Services [Member] | |||
Revenues | |||
- Related party | |||
- Third parties | 500,000 | ||
Total revenues | 500,000 | ||
Cost of revenues | 95,822 | ||
Gross profit | 404,178 | ||
Depreciation and amortization | 102,774 | ||
Total capital expenditures | $ 4,538 | ||
Gross margin% | 80.80% | ||
Inland Transportation Management Services [Member] | |||
Revenues | |||
- Related party | $ 322,000 | ||
- Third parties | 598,000 | ||
Total revenues | 920,000 | ||
Cost of revenues | 59,874 | ||
Gross profit | 860,126 | ||
Depreciation and amortization | 20,488 | ||
Total capital expenditures | |||
Gross margin% | 93.50% | ||
Freight Logistics Services [Member] | |||
Revenues | |||
- Related party | |||
- Third parties | 1,242,142 | [1] | 5,487,553 |
Total revenues | 1,242,142 | 5,487,553 | |
Cost of revenues | 547,684 | [1] | 4,965,992 |
Gross profit | 694,458 | 521,561 | |
Depreciation and amortization | 7,702 | 476 | |
Total capital expenditures | |||
Gross margin% | 55.90% | 9.50% | |
Container Trucking Services [Member] | |||
Revenues | |||
- Related party | |||
- Third parties | 44,084 | 91,980 | |
Total revenues | 44,084 | 91,980 | |
Cost of revenues | 39,898 | 57,966 | |
Gross profit | 4,186 | 34,014 | |
Depreciation and amortization | 44,101 | 4,751 | |
Total capital expenditures | $ 830 | ||
Gross margin% | 9.50% | 37.00% | |
[1] | For certain freight logistics contracts that the Company entered into with customer in first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended September 30, 2019, gross revenues and gross cost of revenues related to these contracts amounted to approximately $9.1 million and $8.5 million, respectively. |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 18,690,248 | $ 20,599,003 |
Shipping Agency and Management Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,118,858 | 3,549,093 |
Freight Logistic Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 15,545,582 | 17,017,696 |
Container Trucking Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 25,808 | $ 32,215 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 3 Months Ended |
Sep. 30, 2019USD ($)Segments | |
Segment Reporting (Textual) | |
Number of operating segments | Segments | 4 |
Gross revenue | $ 9,100,000 |
Gross cost of revenue | $ 8,500,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | ||
Less: allowance for doubtful accounts | $ (52,524) | $ (89,774) |
Total | 472,715 | 807,965 |
Tianjin Zhiyuan Investment Group Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Total | $ 525,239 | $ 897,739 |
Related Party Transactions (D_2
Related Party Transactions (Details Textual) - Zhiyuan Investment Group [Member] | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Related Party Transactions (Textual) | |
Amount due from Zhiyuan Investment Group | $ 525,239 |
Allowance for doubtful accounts, percentage | 10.00% |
Allowance for doubtful accounts recovered | $ 37,250 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Nov. 13, 2019 | Nov. 06, 2019 | Oct. 14, 2019 | Oct. 03, 2019 |
Subsequent Event (Textual) | ||||
Stock issued as remuneration for services | 300,000 | |||
Stock issued as remuneration for services, value | $ 222,000 | |||
Purchase of common stock | 1,000,000 | |||
Purchase price per share | $ 1 | |||
Aggregate proceeds | $ 1,000,000 | |||
Equity interest percentage, description | Due to State Priests' delayed approval from related authorities, Mr. Weijun Qin agreed to exchange 80% equity interest in Sea Continent for the Company's 90% equity interest in State Priests. | |||
One Employee [Member] | ||||
Subsequent Event (Textual) | ||||
Common stock issued under the Plan to one employee | 230,000 | |||
Common stock per share | $ 0.68 | |||
Common stock issued under the Plan to one employee, value | $ 156,400 |