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BTB Bit Brother Limited

Document and Entity Information

Document and Entity Information6 Months Ended
Dec. 31, 2020
Document and Entity Information [Abstract]
Entity Registrant NameUrban Tea, Inc.
Entity Central Index Key0001543268
Amendment Flagtrue
Amendment DescriptionThis amendment to the Current Report on Form 6-K/A ("Form 6-K/A") is being filed to amend the Current Report on Form 6-K initially filed by Urban Tea, Inc. (the "Company") with the Securities and Exchange Commission on April 27, 2021 (the "Original Form 6-K"). The Company is filing this Form 6-K/A solely to include the XBRL of the six-month interim financial statements which were omitted from the Original Form 6-K. The Company hereby incorporates such financial statements into the Company's registration statements referenced below. Except as set forth in the foregoing, the Original Form 6-K is unchanged. This Form 6-K/A is hereby incorporated by reference into the registration statements of the Company on Form S-8 (Registration Numbers 333-227299) and on Form F-3s, as amended (Registration Numbers 333-248615, 333-233479 and 333-227211), to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
Current Fiscal Year End Date--06-30
Document Type6-K/A
Document Fiscal Year Focus2020
Document Period End DateDec. 31,
2020
Document Fiscal Period FocusQ2
Entity File Number001-35755

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($)Dec. 31, 2020Jun. 30, 2020
ASSETS
Cash $ 13,333,034 $ 5,311,693
Short-term investments3,335,640 2,266,069
Trade receivables470,894 183,566
Inventories1,475,924 1,403,582
Prepayments26,874
Loans due from third parties2,785,636 2,222,191
Due from a related party3,411 1,127
Other current assets106,244 108,224
Total current assets21,537,657 11,496,452
Investment in equity investees1,289,077 187,755
Goodwill8,610,173 8,073,011
Property and equipment, net1,327,658 1,315,326
Deposits for plant, property and equipment1,013,825 849,245
Intangible assets66,522 66,442
Right of use assets363,318 553,904
Other noncurrent assets67,089 92,992
Total Assets34,275,319 22,635,127
LIABILITIES AND EQUITY
Trade payable80,740 64,300
Unearned income101,240 127,279
Other current liabilities167,379 68,579
Income tax payable268,215
Lease liabilities, current308,276 315,259
Warrants liabilities304,734 1,150,416
Total current liabilities1,230,584 1,725,833
Lease liabilities, noncurrent124,673 310,098
Total Liabilities1,355,257 2,035,931
Shareholders' Equity
Ordinary shares, $0.0001 par value share, 150,000,000 shares authorized 79,491,998 and 45,188,648 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively7,949 4,519
Preferred shares, par value $0.0001 per share, 5,000,000 shares authorized; none issued or outstanding
Additional paid-in capital36,837,553 25,568,478
Statutory reserve5,848
Accumulated deficit(10,967,630)(10,280,741)
Accumulated other comprehensive income (loss)998,913 (352,649)
Total Urban Tea, Inc.'s Shareholders' Equity26,882,633 14,939,607
Non-controlling interests6,037,429 5,659,589
Total Liabilities and Equity $ 34,275,319 $ 22,635,127

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesDec. 31, 2020Jun. 30, 2020
Statement of Financial Position [Abstract]
Ordinary shares, par value $ 0.0001 $ 0.0001
Ordinary shares, shares authorized150,000,000 150,000,000
Ordinary shares, shares issued79,491,998 45,188,648
Ordinary shares, shares outstanding79,491,998 45,188,648
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized5,000,000 5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Income Statement [Abstract]
Revenue $ 3,874,080 $ 418,219
Cost of revenues(2,328,001)(300,124)
Gross profit1,546,079 118,095
Operating expenses
General and administrative expenses(2,205,377)(1,597,112)
Total operating expenses(2,205,377)(1,597,112)
Other income, net
Interest income138,306 49,395
Change in fair value of warrants845,683 15,330
Share of equity investees(201,815)
Other (loss) income(167,046)73,531
Total other income, net615,128 138,256
Net loss before income taxes(44,170)(1,340,761)
Income tax expenses(259,031)
Net loss(303,201)(1,340,761)
Less: Net (income) loss attributable to non-controlling interests(377,840)4,995
Net loss attributable to Urban Tea, Inc.'s Shareholders(681,041)(1,335,766)
Other comprehensive income
Foreign currency translation adjustment1,351,562 81,152
Comprehensive income (loss)670,521 (1,259,609)
Less: Comprehensive loss attributable to non-controlling interests(377,840)4,995
Comprehensive income (loss) attributable to Urban Tea, Inc.'s Shareholders $ 292,681 $ (1,254,614)
Loss per share- basic and diluted $ (0.09) $ (0.04)
Weighted Average Shares Outstanding-Basic and Diluted72,370,528 31,289,010

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Equity - USD ($)Share capitalAdditional paid-in capitalStatutory reserveAccumulated deficitAccumulated other comprehensive (loss) incomeNon-controlling InterestTotal
Balance at Jun. 30, 2019 $ 2,618 $ 17,625,612 $ (8,174,141) $ (302,222) $ 9,151,867
Balance, Shares at Jun. 30, 201926,180,314
Issuance of ordinary shares in connection with acquisition of a subsidiary $ 1,000 3,399,000 5,675,416 9,075,416
Issuance of ordinary shares in connection with acquisition of a subsidiary, Shares10,000,000
Net (loss) income for the period (1,335,766) (4,995)(1,340,761)
Foreign currency translation adjustment 81,152 81,152
Balance at Dec. 31, 2019 $ 3,618 21,024,612 (9,509,907)(221,070)5,670,421 16,967,674
Balance, Shares at Dec. 31, 201936,180,314
Balance at Jun. 30, 2020 $ 4,519 25,568,478 (10,280,741)(352,649)5,659,589 14,939,607
Balance, Shares at Jun. 30, 202045,188,648
Issuances of ordinary shares in connection with private placements $ 3,375 11,046,625 11,050,000
Issuances of ordinary shares in connection with private , Shares33,750,000
Issuances of ordinary shares for professional services $ 55 222,450 222,505
Issuances of ordinary shares for professional services, Shares553,350
Net (loss) income for the period (681,041) 377,840 (303,201)
Appropriation of net income5,848 (5,848)
Foreign currency translation adjustment 1,351,562 1,351,562
Balance at Dec. 31, 2020 $ 7,949 $ 36,837,553 $ 5,848 $ (10,967,630) $ 998,913 $ 6,037,429 $ 26,882,633
Balance, Shares at Dec. 31, 202079,491,998

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Cash Flows from Operating Activities:
Net loss $ (303,201) $ (1,340,761)
Adjustments to reconcile net income to net cash used in operating activities:
Reversal of provision for doubtful accounts (1,423)
Depreciation of property and equipment78,671 68,941
Amortization of intangible assets9,935 6,625
Net loss from disposal of property and equipment15,242 1,025
Amortization of right of use assets227,566 152,788
Change in fair value of warrants(845,683)(15,330)
Share based compensation expenses222,500
Share of equity investees201,815
Changes in assets and liabilities:
Trade receivables(262,396)7,766
Inventories41,445 (33,261)
Prepayments(25,902)45,953
Due from a related party(2,113)
Other current assets10,480 99,815
Other noncurrent assets32,331 57,784
Trade payable29,198 (50,325)
Unearned income(53,623)(44,613)
Income tax payable259,284
Other current liabilities94,317 46,487
Lease liabilities(240,271)(153,036)
Net cash used in operating activities(510,405)(1,151,565)
Cash Flows from Investing Activities:
Purchases of property and equipment(1,620)(220,849)
Payment of deposits in property and equipment(91,364)(247,897)
Proceeds from disposal of property and equipment 740
Purchases of intangible assets(4,751)
Investment in short-term investments(9,393,389)
Collection of short-term investments8,541,987 1,244,736
Collection of loans from a third party(367,057)
Investment in equity investees(1,257,714)(105,000)
Acquisition of a subsidiary, net of cash acquired (2,369,768)
Net cash used in investing activities(2,573,908)(1,698,038)
Cash Flows from Financing Activities:
Cash raised in private placement of ordinary shares11,050,000
Net cash provided by financing activities11,050,000
Effect of exchange rate changes on cash and cash equivalents55,654 (17,962)
Increase (Decrease) in cash and cash equivalents8,021,341 (2,867,565)
Cash and cash equivalents at beginning of period5,311,693 4,668,745
Cash and cash equivalents at end of period13,333,034 1,801,180
Supplemental disclosures of cash flow information:
Interest paid
Tax paid
Major non-cash transactions:
Issuance of ordinary shares for professional services222,505
Issuance of ordinary shares for acquisition of a subsidiary 3,400,000
Right-of-use assets obtained in exchange for operating lease obligations 1,360,822
Loan due from a third party transferred from short-term investments $ 2,304,541

Organization and Principal Acti

Organization and Principal Activities6 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND PRINCIPAL ACTIVITIES1. ORGANIZATION AND PRINCIPAL ACTIVITIES Urban Tea, Inc., Inc. (formerly known as Delta
Technology Holdings Limited) ("MYT" or the "the Company"), is a holding company that was incorporated on November
28, 2011, under the laws of the British Virgin Islands. On February 14, 2019, the Company changed its name to Urban Tea, Inc., Inc. The Company owns 100% equity interest in NTH Holdings
Limited ("NTH BVI"), an entity incorporated on August 28, 2018 in accordance with the laws and regulations in British Virgin
Islands ("BVI"). NTH BVI owns 100% equity interest in Tea Language Group Limited ("NTH HK"), an entity incorporated
on September 11, 2018 in accordance with the laws and regulations in Hong Kong ("HK"). On October 19, 2018, the Company, through
NTH HK, established Mingyuntang (Shanghai) Tea Co. Ltd. ("Shanghai MYT"), as a Wholly Foreign-Owned Enterprise ("WFOE")
in the People's Republic of China ("PRC"). The Company previously was engaged in the manufacturing
and sale of organic compounds. The Company discontinued the manufacturing and sale of organic compounds business in April 2019. Currently,
the Company conducts its business through two variable interest entities ("VIEs"), Hunan Mingyuntang Brand Management Company
("Hunan MYT") and Hunan 39 PU Tea Co., Ltd. (" ").
dark tea distribution On November 19, 2018, Shanghai MYT entered into
a series of variable interest entity agreements ("Hunan MYT VIE Agreements") with Hunan MYT and Peng Fang, the sole shareholder
of Hunan MYT. The Hunan MYT VIE Agreements are designed to provide Shanghai MYT with the power, rights and obligations equivalent in all
material respects to those it would possess as the sole equity holder of Hunan MYT, including absolute control rights and the rights to
the management, operations, assets, property and revenue of Hunan MYT. The purpose of the Hunan MYT VIE Agreements is solely to give Shanghai
MYT the exclusive control over Hunan MYT's management and operations. On October 2, 2019, Shanghai MYT entered into
a series of variable interest entity agreements ("39Pu VIE Agreements") with 39Pu and three shareholders who collectively
owned 51% equity interest in 39Pu. The 39Pu VIE Agreements are designed to provide Shanghai MYT with the power, rights and obligations
equivalent in all material respects to those it would possess as the controlling equity holder of 39Pu, including absolute control rights
and the rights to the management, operations, assets, property and revenue of 39Pu. The purpose of the 39Pu VIE Agreements is solely to
give Shanghai MYT the exclusive control over 39Pu's management and operations. In exchange for the controlling interest in 39Pu,
the Company is obliged to pay a cash consideration of $2.4 million and a share consideration of
10,000,000 ordinary shares of the Company, no par value ("Ordinary Shares"). In addition, a contingent cash consideration
of $0.6 million and share consideration of 4,000,000 Ordinary Shares will be delivered to the three shareholders according to the earn-out
payment based on the financial performance of 39 Pu in its next fiscal year. On October 17 and 28, 2019, the Company paid share consideration
of 10,000,000 Ordinary Shares and the cash consideration of $2.4 million, respectively. The accompanying consolidated financial statements
reflect the activities of Hunan Mingyuntang, 39Pu and each of the following holding entities:
Name Background Ownership
Delta Technology Holdings USA Inc. ("Urban Tea USA")
● A
US company ● Incorporated
on May 22, 2018 ● A
holding company 100% owned by the Company
NTH BVI
● A
BVI company ● Incorporated
on August 28, 2018 ● A
holding company 100% owned by the Company
NTH HK
● A
Hong Kong company ● Incorporated
on September 11, 2018 ● A
holding company 100% owned by NTH BVI
Shanghai MYT
● A
PRC company and deemed a wholly foreign owned enterprise ("WOFE") ● Incorporated
on October 19 ● Registered
capital of $1 million ● A
holding company WOFE, 100% owned by NTH HK
Hunan MYT
● A
PRC limited liability company ● Incorporated
on October 17, 2018 ● Registered
capital of $4,330,590 (RMB 30 million) ● Engaged
in specialty tea product distribution and retail business by provision of high-quality tea beverages in its tea shop chain 100% VIE of Shanghai MYT
39Pu
● A
PRC limited liability company ● Incorporated
on April 14, 2011 ● Registered
capital of $3,522,424 (RMB 20.9 million) with registered capital fully paid-up ● Engaged
in dark tea distribution 51% VIE of Shanghai MYT

Summary of Significant Accounti

Summary of Significant Accounting Policies6 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of presentation and principle of consolidation The unaudited condensed
consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United
States ("U.S. GAAP"). The unaudited interim
financial information as of December 31, 2020 and for the six months ended December 31, 2020 and 2019 have been prepared without audit,
pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are
normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and
regulations. As of December 31, 2019, the Company had two VIEs – Hunan MYT and 39Pu. The unaudited interim financial information
should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 20-F for the fiscal year
ended June 30, 2020, which was filed with the SEC on October 30, 2020. In the opinion of management,
all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company's unaudited financial
position as of December 31, 2020, its unaudited results of operations for the six months ended December 31, 2020 and 2019, and its unaudited
cash flows for the six months ended December 31, 2020 and 2019, as applicable, have been made. The unaudited interim results of operations
are not necessarily indicative of the operating results for the full fiscal year or any future periods.
(b) Consolidation of Variable Interest Entity Material terms of the Hunan MYT VIE Agreements
and 39Pu VIE Agreements are described below: Exclusive Business Cooperation Agreement Pursuant to the Exclusive Business Cooperation
Agreements, Shanghai MYT and 39Pu each provides Hunan MYT with technical support, consulting services and management services on an exclusive
basis, utilizing its advantages in technology, human resources, and information. Additionally, Hunan MYT and 39Pu each granted an irrevocable
and exclusive option to Shanghai MYT to purchase from each of Hunan MYT and 39Pu, any or all of Hunan MYT's and 39Pu assets at the
lowest purchase price permitted under the PRC laws. Should Shanghai MYT exercise such option, the parties shall enter into a separate
asset transfer or similar agreement. For services rendered to Hunan MYT and 39Pu by Shanghai MYT under the agreement, Shanghai MYT is
entitled to collect a service fee calculated based on the time of services rendered multiplied by the corresponding rate, plus amount
of the services fees or ratio decided by the board of directors of Shanghai MYT based on the value of services rendered by Shanghai MYT
and the actual income of Hunan MYT and 39Pu from time to time, which is substantially equal to all of the net income of Hunan MYT and
51% of net income of 39Pu, respectively. The Exclusive Business Cooperation Agreement shall
remain in effect for ten years unless it is terminated by Shanghai MYT with 30-day prior written notice. Hunan MYT or 39Pu does not have
the right to terminate the agreement unilaterally. Shanghai MYT may unilaterally extend the term of this agreement with prior written
notice. Exclusive Option Agreement Under the Exclusive Option Agreement between Peng
Fang and Shanghai MYT, irrevocably granted Shanghai MYT (or its designee) an exclusive option to purchase, to the extent permitted under
PRC law, once or at multiple times, at any time, part or all of their equity interests in Hunan MYT. The option price is equal to the
capital paid in by Peng Fang subject to any appraisal or restrictions required by applicable PRC laws and regulations. Under the Exclusive Option Agreement between three
shareholders of 39Pu and Shanghai MYT, the three shareholders irrevocably granted Shanghai MYT (or its designee) an exclusive option to
purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in 39Pu.
The option price is equal to the capital paid in by the three shareholders subject to any appraisal or restrictions required by applicable
PRC laws and regulations. The agreement remains effective for a term of
ten years and may be renewed at Shanghai MYT's election. Share Pledge Agreement Under the Share Pledge Agreement, Peng Fang and
the three shareholders of 39Pu each pledged all of their equity interests in Hunan MYT and 39Pu to Shanghai MYT to guarantee the performance
of Hunan MYT's and 39Pu's obligations under the Exclusive Business Cooperation Agreement. Under the terms of the agreement,
in any event of default, as set forth in the Share Pledge Agreement, including that Hunan MYT or Peng Fang, 39Pu or the three shareholders
breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, Shanghai MYT, as pledgee, will be
entitled to certain rights, including, but not limited to, the right to dispose of the pledged equity interest in accordance with applicable
PRC laws. Shanghai MYT shall have the right to collect any and all dividends declared or generated in connection with the equity interest
during the term of pledge. The Share Pledge Agreement shall be effective
until all payments due under the Exclusive Business Cooperation Agreement have been paid by Hunan MYT and 39Pu, respectively. Shanghai
MYT shall cancel or terminate the Share Pledge Agreement upon Hunan MYT's and 39Pu's full payment of fees payable under the
Exclusive Business Cooperation Agreement. Timely Reporting Agreement To ensure Hunan MYT and 39Pu promptly provide
all of the information that Shanghai MYT and the Company need to file various reports with the SEC, a Timely Reporting Agreement was entered
between Shanghai MYT, and Hunan MYT and 39Pu, respectively. Under the Timely Reporting Agreement, Hunan MYT and 39Pu each agreed that
it is obligated to make its officers and directors available to the Company and promptly provide all information required by the Company
so that the Company can file all necessary SEC and other regulatory reports as required. Although it is not explicitly stipulated in the
Timely Reporting Agreement, the parties agreed its term shall be the same as that of the Exclusive Business Cooperation Agreement. Power of Attorney Under the Power of Attorney, Peng Fang and the
three shareholders of 39Pu each authorized Shanghai MYT to act on her behalf as her exclusive agent and attorney with respect to all rights
as shareholder, including but not limited to: (a) attending shareholders' meetings; (b) exercising all the shareholder's rights,
including voting, that shareholders are entitled to under the laws of China and the Articles of Association of Hunan MYT and 39Pu, including
but not limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on
behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer and other senior management
members of Hunan MYT and 39Pu. Although it is not explicitly stipulated in the
Power of Attorney, the term of the Power of Attorney shall be the same as the term of that of the Exclusive Option Agreement. This Power of Attorney is coupled with an interest
and shall be irrevocable and continuously valid from the date of execution of this Power of Attorney, so long as Peng Fang is a shareholder
of Company. The VIE Agreements became effective immediately
upon their execution. VIE is an entity that have either a total equity
investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose
equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected
residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has
a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. Shanghai MYT is deemed
to have a controlling financial interest and be the primary beneficiary of Hunan MYT and 39Pu, because it has both of the following characteristics:
1. power to direct activities of a VIE that most significantly impact the entity's economic performance, and
2. obligation to absorb losses of the entity that could potentially be significant to the VIE or right to receive benefits from the entity that could potentially be significant to the VIE. Pursuant to the VIE Agreements, Hunan MYT and
39Pu pay service fees equal to 100% and 51% of its net income to Shanghai MYT, respectively. At the same time, Shanghai MYT is entitled
to receive 100% and 51% of expected residual returns from Hunan MYT and 39Pu, respectively. The VIE Agreements are designed so that Hunan
MYT and 39Pu operate for the benefit of the Company. Accordingly, the accounts of Hunan MYT are consolidated in the accompanying financial
statements pursuant to ASC 810-10, Consolidation. In addition, their financial positions and results of operations are included in the
Company's consolidated financial statements. In addition, as all of these VIE agreements are
governed by PRC law and provide for the resolution of disputes through arbitration in the PRC, they would be interpreted in accordance
with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed
as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company's
ability to enforce these VIE agreements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or
courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons.
In the event the Company is unable to enforce these VIE agreements, it may not be able to exert effective control over Hunan MYT or 39Pu
and its ability to conduct its business may be materially and adversely affected. All of the Company's main current operations
are conducted through Hunan MYT since November 2018, and through 39Pu since October 2019. Current regulations in China permit Hunan MYT
and 39Pu to pay dividends to the Company only out of their accumulated distributable profits, if any, determined in accordance with their
articles of association and PRC accounting standards and regulations. The ability of Hunan MYT and 39Pu to make dividends and other payments
to the Company may be restricted by factors including changes in applicable foreign exchange and other laws and regulations. The following financial statement balances and
amounts only reflect the financial position and financial performances of Hunan MYT and 39Pu, which were included in the consolidated
financial statements as of December 31 and June 30, 2020:
December 31, June 30,
(unaudited)
Cash $ 1,142,514 $ 362,384
Short-term investments 3,335,640 2,266,069
Inventories 1,475,924 1,403,582
Loans due from a third party 2,785,636 2,222,191
Other current assets 607,423 292,917
Investments in equity investees 1,096,370 -
Property and equipment, net 1,327,658 1,315,326
Deposits for plant, property and equipment 1,013,825 849,245
Right of use assets 363,318 553,904
Other noncurrent assets 133,611 159,434
Total Assets $ 13,281,919 $ 9,425,052
-
Due to MYT* $ 10,466,925 $ 7,270,932
Other current liabilities 1,050,524 885,515
Total Liabilities $ 11,517,449 $ 8,156,447
* Payable due to MYT is eliminated upon consolidation.
For the Six Months Ended
2020 2019
(unaudited) (unaudited)
Revenue $ 3,874,080 $ 418,219
Net income (loss) $ 377,453 $ (847,182 )
(c) Segment reporting In accordance with ASC
280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available
that is evaluated regularly by the chief operating decision maker ("CODM"), or decision making group, in deciding how to allocate
resources and in assessing performance. The Company uses the "management approach" in determining reportable operating segments.
The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for
making operating decisions and assessing performance as the source for determining the Company's reportable segments. Management,
including the chief operating decision maker, reviews operation results by the revenue of different services. For the six months ended
December 31, 2020 and 2019, the Company has two operating business lines, including retail business by provision of high-quality
tea beverages in its tea shop chain business conducted by Hunan MYT and dark tea distribution business by 39Pu. Based on management's
assessment, the Company has determined that the two operating business lines are two operating segments as defined by ASC 280.
(d) Trade receivables Trade receivables are recorded at the invoiced
amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates
the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established
and recorded based on management's assessment of potential losses based on the credit history and relationships with the customers.
Management reviews its receivables on a regular basis to determine if 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. The Company considered the amounts of receivables
in dispute and believes an allowance for these receivables were not necessary as at December 31, 2020 and June 30, 2020.
(e) Inventories Inventories,
consisting of products available for sale, are stated at the lower of cost and market. Cost of inventories is determined using the weighted
average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to slow-moving
merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment.
The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the consolidated
statements of income and comprehensive income.
(f) Revenue recognition The Company adopted ASC 606, Revenue from Contracts
with Customers ("ASC 606") beginning on July 1, 2018 using the modified retrospective approach. ASC 606 establishes principles
for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts
to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods
or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those
goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance
by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from
applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer
of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing
and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to
the Company's consolidated financial statements upon adoption of ASC 606. In according with ASC 606, revenues are recognized
when control of the promised services is transferred to customers, in an amount that reflects the consideration we expect to be entitled
to in exchange for those services. During the six months ended December 31, 2020
and 2019, the Company generated revenues primarily from sales of tea products, beverages and light meals in its tea shop chains by Hunan
MYT, and from sales of dark team products by 39Pu. Sales of tea products, beverages and light
meals in retail shop chains by Hunan MYT Customers
place order and pay for tea products, beverage drinks and light meals in the Company's tea shop chains. Revenues are recognized
at the point of delivery to customers. Customers that purchase prepaid cards are issued additional points for free at the time of purchase.
Cash received from the sales of prepaid vouchers are recognized as unearned income. Consideration collected for prepaid cards is equally
allocated to each point as an element, including the points issued for free, to determine the transaction price for each point. The allocated
transaction price are recognized as revenues upon the redemption of the points for purchases. Sales of dark tea products by 39Pu - Disaggregation of revenue -
For the Six Months Ended
2020 2019
(unaudited) (unaudited)
Sales by Hunan MYT $ 169,656 $ 348,816
Sales by 39Pu 3,704,424 69,403
$ 3,874,080 $ 418,219
(g) Investment in equity investees The investments for which the Company has the
ability to exercise significant influence are accounted for under the equity method. Under the equity method, original investments are
recorded at cost and adjusted by the Company's share of undistributed earnings or losses of these entities, the amortization of
intangible assets recognized upon purchase price allocation and dividend distributions or subsequent investments. All unrecognized inter-company
profits and losses have been eliminated under the equity method. When the estimated amount to be realized from the investments falls below
its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered
other than temporary.
(h) Leases The Company adopted ASU 2016-02, Leases (Topic
842), on July 1, 2019, using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered
into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases its offices which are classified
as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with
the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee's obligation to make lease
payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee's
right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Company recognizes
the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company's incremental borrowing rate for the same term as the underlying lease.
The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any
initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets
are reviewed for impairment. No impairment for right-of-use lease assets as of December 31, 2020.
(i) Recently announced accounting standards In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments The Company does not believe other recently issued
but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position,
statements of operations and cash flows.

Risks

Risks6 Months Ended
Dec. 31, 2020
Risks and Uncertainties [Abstract]
RISKS3. RISKS
(a) Credit risk Assets that potentially subject the Company to
significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of such assets to credit
risk is their carrying amount as at the balance sheet dates. As of December 31, 2020, approximately $12.2 million was deposited with a
bank in the United States which was insured by the government up to $250,000. As of December 31, 2020, approximately $1.1 million was
primarily deposited in financial institutions located in Mainland China, and each bank accounts is insured by the government authority
with the maximum limit of RMB 500,000 (equivalent to approximately $70,770). To limit exposure to credit risk relating to deposits, the
Company primarily place cash deposits with large financial institutions in China which management believes are of high credit quality. The Company's operations are carried out
in Mainland China. Accordingly, the Company's business, financial condition 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's economy. In addition, the Company's
business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency
conversion and remittance abroad, rates and methods of taxation, and the extraction of mining resources, among other factors.
(b) Liquidity risk The Company is also exposed to liquidity risk
which is risk that it is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity
risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn
to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage.
(c) Foreign currency risk Substantially all of the Company's operating
activities and the Company's major assets and liabilities are denominated in RMB, except for the cash deposit of approximately $12.2
million which was in U.S. dollars as of December 31, 2020, which is not freely convertible into foreign currencies. All foreign exchange
transactions take place either through the Peoples' Bank of China ("PBOC") or other authorized financial institutions
at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting
a payment application form together with suppliers' invoices and signed contracts. The value of RMB is subject to changes in central
government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange
Trading System market. Where there is a significant change in value of RMB, the gains and losses resulting from translation of financial
statements of a foreign subsidiary will be significant affected.
(c) VIE risk It is possible that the
Hunan MYT VIE Agreements and 39Pu VIE Agreements would not be enforceable in China if PRC government authorities or courts were to find
that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event that
the Company were unable to enforce these contractual arrangements, the Company would not be able to exert effective control over the VIE.
Consequently, the VIE's results of operations, assets and liabilities would not be included in the Company's consolidated
financial statements. If such were the case, the Company's cash flows, financial position, and operating performance would be materially
adversely affected. The Company's contractual arrangements among Shanghai MYT, Hunan MYT and the Hunan MYT Shareholders, and among
Shanghai MYT, 39Pu and the three shareholders of 39Pu are approved and in place. Management believes that such contracts are enforceable,
and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Company's operations and contractual
relationships would find the contracts to be unenforceable. The Company's operations
and businesses rely on the operations and businesses of Hunan MYT and 39Pu, the VIEs of the Company, each of which holds certain recognized
revenue-producing assets including tea beverage related raw materials, lease arrangements, and dark tea products. The VIEs also have an
assembled workforce, focused primarily on promotion and marketing, whose costs are expensed as incurred. The Company's operations
and businesses may be adversely impacted if the Company loses the ability to use and enjoy assets held by its VIEs.
(e) Other risk The Company's business, financial condition
and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics
and other catastrophic incidents, such as the COVID-19 outbreak and spread, which could significantly disrupt the Company's operations.

Acquisition of 39PU

Acquisition of 39PU6 Months Ended
Dec. 31, 2020
Asset Acquisition [Abstract]
ACQUISITION OF 39PU4. ACQUISITION OF 39PU On October 2, 2019, the Company completed the
acquisition of 51% equity interest in 39Pu, which is engaged in the distribution of dark tea
and In
addition, a contingent cash consideration of $0.6 million and a share consideration of $1.2 million will be delivered to the three shareholders
according to the earn-out payment based on the financial performance of 39Pu in its next fiscal years. On October 17 and 28, 2019, the
Company paid the share consideration of 10,000,000 Ordinary Shares and the cash consideration of $2.4 million, respectively. Upon the
close of the acquisition and as of June 30, 2020, the Company did not pay the contingent consideration due to 39Pu's financial performance
for the three months ended December 31, 2019 not reaching the earn-out payment condition. The acquisition had been accounted for as a business
combination and the results of operations of 39Pu have been included in the Company's consolidated financial statements from the
acquisition date. The Company made estimates and judgments in determining the fair value of acquired assets and liabilities, based on
an independent preliminary valuation report and management's experiences with similar assets and liabilities. The following table
summarizes the estimated fair values for major classes of assets acquired and liabilities assumed at the date of acquisition, using the
exchange rate of 7.1489 on that day.
Fair value
Net tangible assets $ 3,509,468
Goodwill 7,863,081
Foreign exchange adjustments 102,867
Less: Noncontrolling interests (5,675,416 )
Total purchase consideration $ 5,800,000

Short-Term Investments

Short-Term Investments6 Months Ended
Dec. 31, 2020
Short-term Investments [Abstract]
SHORT-TERM INVESTMENTS5. SHORT-TERM INVESTMENTS As of December 31, 2020 and June 30, 2020, the
balance of short-term investments was comprised of investments of various financial products from Chinese banks and financial institutions,
with variable return rate and with maturities between three months and one year. The Company classified these financial assets as held-to-maturity
financial assets and recorded the assets at amortized cost, which approximates fair value. As of December 31, 2020 and June 30, 2020,
the Company did not provide OTTI on short-term investments.

Inventories

Inventories6 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]
INVENTORIES6. INVENTORIES Inventories consisted of the following:
December 31, June 30,
(unaudited)
Merchant products $ 1,000,837 $ 968,642
Raw materials 40,796 18,542
Packaging and other supplies 391,000 376,394
Other products 43,291 40,004
1,475,924 1,403,582
Less: inventory write-down - -
Total inventories $ 1,475,924 $ 1,403,582

Loans Due from Third Parties

Loans Due from Third Parties6 Months Ended
Dec. 31, 2020
Loans Due from Third Parties [Abstract]
LOANS DUE FROM THIRD PARTIES7. LOANS DUE FROM THIRD PARTIES Loans due from third parties consisted of the
following:
December 31, June 30,
(unaudited)
Sichuan Senmiao Ronglian Technology Co, Ltd. $ 1,560,258 $ 2,222,191
Shenzhen Qianhai Leshi Health Management Co., Ltd. 1,225,378 -
Total loans due from third parties $ 2,785,636 $ 2,222,191
(a) The Company purchased short-term investments of $1,148,930 in April 2019, and acquired short-term investments
of $1,177,653 from the acquisition of 39Pu, both of which were investments in Senmiao Ronglian which was a variable interest entity of
Senmiao Technology Ltd, a US listed company which used to operate a peer-to-peer marketplace before October 2019. In October 2019, Senmiao
Ronglian disposed of the peer-to-peer marketplace, and the Company's short-term investments became a loan due from Sichuan Ronglian
as of December 31, 2019. According to the loan agreement between
the Company and Sichuan Ronglian, the loans will be paid in 12 months before December 9, 2020, with a per annum interest rate of 7%. During
the six months ended December 31, 2020 and 2019, Senmiao Ronglian repaid an aggregation of $814,003 and $nil to the Company with remaining
balance to be repaid before December 31, 2021. The Company asssessed the payment ability
of Senmiao Ronglian and did not provide allowance against the balance.
(b) In December 2020, the Company entered into a loan agreement with Shenzhen Qianhai to provide a loan of
$1,225,378 to the third party. The loan matured in June 2021 with an interest rate of 1.495% per annum. The loan was made for the purpose
of making use of idle cash.

Investment in Equity Investees

Investment in Equity Investees6 Months Ended
Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN EQUITY INVESTEES8. INVESTMENT IN EQUITY INVESTEES As of December 31, 2020 and June 30, 2020, the
Company’s investment in equity investees were as following:
December 31, June 30,
(unaudited)
Urban Tea Management Inc. (“Meno”) $ 310,000 $ 210,000
Guokui Management Inc. (“Guokui”) 100,000 -
Chuangyeying Brand Management Co., Ltd. (“CYY”) 390,589 -
Store Master Food Trading Co., Ltd. (“Store Master”) 706,818 -
Less: Share of results of equity investees (218,330 ) (22,245 )
$ 1,280,077 $ 187,755 As of December 31, 2020, the Company made investments
aggregating $310,000 in Meno, in which the Company and an unrelated third party invested capital of 70% and 30%, respectively, and was
entitled to 51% and 49% profit earned from Meno, respectively. Meno did not commence operations until August 1, 2020. The investment was
for the purpose of expansion its tea shop chain to overseas market. On September 23, 2020, the Company entered into
a share purchase agreement, pursuant to which the Company agreed to pay $400,000 in cash to acquire 80% of the equity interest
in Guokui, in which the Company and other unrelated third party investor were entitled to 51% and 49% profit earned from Guokui, respectively.
As of December 31, 2020, the Company made investments aggregating $100,000. The investment was for the purpose of expansion its tea shop
chain to overseas market. In October 2020, the Company, through its WFOE,
acquired 51% equity interest in each of CYY and Store Master in cash consideration of $376,462 and $681,252, respectively. In addition,
the existing shareholders of CYY and Store Master will be rewarded additional incentives if certain performance targets were met. The
Company did not accrue contingent consideration for the acquisition as the Company did not expect such perform targets would be met. Pursuant to the articles of association of these
equity investees, the operating and financing activities shall be unanimously approved by the Company and other shareholders, thus the
Company does not control the equity investee but exercised significant influence over the equity investee. In accordance with ASC 323
“Investments — Equity Method and Joint Ventures,”, the Company accounted for the investments using equity
method. For the six months ended December 31, 2020 and
2019, the equity investees incurred net loss aggregating $218,330 and $nil, respectively.

Property and Equipment, Net

Property and Equipment, Net6 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET9. PROPERTY AND EQUIPMENT, NET The property and equipment consisted of the following:
December 31, June 30,
(unaudited)
Building $ 855,570 $ 790,605
Office equipment 652,169 618,323
Electronic equipment 55,760 51,526
Vehicles 27,271 25,200
Leasehold improvements 621,105 573,937
Less: accumulated depreciation (884,217 ) (744,265 )
$ 1,327,658 $ 1,315,326 For the six months ended December 31, 2020 ad
2019, the depreciation expenses were $78,671 and $68,941, respectively. For the six months ended December 31, 2020, the
Company disposed of office equipment with original cost of $18,644 and accumulated depreciation of $2,830. The Company incurred a net
loss of $15,242 from the disposal of office equipment. For the six months ended December 31, 2019, the
Company disposed of office equipment with original cost of $3,047 and accumulated depreciation of $1,282. The Company incurred a net loss
of $1,025 from the disposal of office equipment.

Equity

Equity6 Months Ended
Dec. 31, 2020
Equity [Abstract]
EQUITY10. EQUITY Ordinary Shares The Company is authorized to issue up to 100,000,000
Ordinary Shares. As of June 30, 2020, the Company had 45,188,648
shares issued and outstanding. On June
5, 2020, the Company issued 8,834 ordinary shares to one independent director On July
30, 2020, and certain institutional investors entered into a securities purchase
agreement, pursuant to which the Company agreed to sell to such investors an aggregate of 18,750,000 ordinary shares, no par value, at
a price of $0.32 per share, for gross proceeds of approximately $6.0 million and net proceeds of approximately $5.5 million. The offering
closed on August 3, 2020. On August
14, 2020, and certain institutional investors entered into a securities purchase
agreement, pursuant to which the Company agreed to sell to such investors an aggregate of 15,000,000 ordinary shares, no par value, at
a price of $0.4 per share, for gross proceeds of approximately $6.0 million and net proceeds of approximately $5.5 million. The offering
closed on August 18, 2020. As of December 31, 2020, the Company had 79,491,998
shares issued and outstanding. Warrants A summary of warrants activity for the six months
ended December 31, 2020 and 2019 was as follows:
Number of Weighted Expiration
Balance of warrants outstanding as of July 1, 2019 2,396,747 4.68 years *
Balance of warrants outstanding as of December 31, 2019 2,396,747 4.18 years *
Balance of warrants outstanding as of July 1, 2020 2,396,747 3.67 years *
Balance of warrants outstanding as of December 31, 2020 2,396,747 3.17 years *
* Among the 2,396,747 shares of warrants, 359,727 shares will expire on November 20, 2022, 2,037,020 shares will be expire on May 23, 2024. Private placement warrants On November 21, 2017, the company issued 359,727
warrants to the shareholder in connection with a private placement offering of 1,798,635 Ordinary Shares. The warrant has an exercise
price of $1.31 per share and is exercisable for five years from the date of issuance. As at December 31, 2020 and June 30, 2020, there
were 359,727 warrants outstanding. The fair value of the warrants is $27,699 and $142,092, using the Black-Scholes valuation model, which
took into consideration the underlying price of ordinary shares, a risk-free interest rate, expected term and expected volatility. As
a result, the valuation of the warrant was categorized as Level 3 in accordance with ASC 820, “Fair Value Measurement”. Registered direct offering warrants and
placement agent warrants On May 24, 2019, the Company issued warrants to
investors in connection with a registered direct offering to purchase a total of 1,809,420 Ordinary Shares with a warrant term of five
(5) years. On the same date, the Company issued warrants to the Placement Agent in connection with a registered direct offering to purchase
a total of 227,600 Ordinary Shares with a warrant term of five (5) years. Both warrants have an exercise price of $1.86 per share. The warrants
have customary anti-dilution protections including a “full ratchet” anti-dilution adjustment provision which are triggered
in the event the Company sells or grants any additional ordinary shares, options, warrants or other securities that are convertible into
ordinary shares at a price lower than $1.86 per share. As such, t warrants were classified
as a liability, which r As of December 31, 2020 and June 30, 2020, the
Company estimated fair value of the registered direct offering warrants at $246,081 and $895,663, respectively, using the Black-Scholes
valuation model, which took into consideration the underlying price of ordinary shares, a risk-free interest rate, expected term and expected
volatility. As a result, the valuation of the warrant was categorized as Level 3 in accordance with ASC 820, “Fair Value Measurement”. As of December 31, 2020 and June 30, 2020, the
Company estimated fair value of the Placement Agent Warrants

Loss Per Share

Loss Per Share6 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]
LOSS PER SHARE11. LOSS PER SHARE The following table sets forth the computation
of basic and diluted loss per common share for the six months ended December 31, 2020 and 2019, respectively:
For the Six Months Ended
2020 2019
(unaudited) (unaudited)
Net loss attributable to Urban Tea's shareholders $ (681,041 ) $ (1,335,766 )
Weighted Average Shares Outstanding-Basic and Diluted $ 72,370,528 $ 31,289,010
Loss per share- basic and diluted $ (0.09 ) $ (0.04 ) Basic income per share is computed by dividing
the net loss by the weighted average number of common shares outstanding during the period. Diluted income per share is the same as basic
loss per share due to the lack of dilutive items in the Company for the six months ended December 31, 2020 and 2019. The number of warrants
is excluded from the computation as the anti-dilutive effect.

Income Taxes

Income Taxes6 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES12. INCOME TAXES British Virgin Islands Under the current tax laws of BVI, the Company’s
subsidiary incorporated in the BVI is not subject to tax on income or capital gains. The United States of America Delta Technology Holdings USA Inc is incorporated
in the State of Delaware in the U.S., and is subject to U.S. federal corporate income taxes. On December 22, 2017, the Tax Cuts and Jobs Act
of 2017 (the “Tax Act”) was signed into law, which has made significant changes to the Internal Revenue Code. Those changes
include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31,
2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax
on the deemed repatriation of cumulative foreign earnings as of December 31, 2017. Accordingly, the Company reevaluated its deferred tax
assets on net operating loss carryforward in the U.S and concluded there was no effect on the Company’s income tax expenses as the
Company has no deferred tax assets generated since inception. As of December 31, 2020 and June 30, 2020, the
Company’s federal net operating loss carryforward for U.S. income taxes was $1,519,567 and $1,245,761, respectively. The federal
net operating loss carryforward is available to reduce future years’ taxable income through year 2037 and net operating losses generated
before 2018 will not expire. Management believes that the realization of the benefit from this loss appears uncertain due to the Company’s
operating history. Utilization of the Company’s U.S. net operating
loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue
Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and
tax credit carryforwards before utilization. Hong Kong NTH HK is incorporated in Hong Kong and is subject
to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant
Hong Kong tax laws. The applicable tax rate for the first HKD$2 million of assessable profits is 8.25% and assessable profits above HKD$2
million will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019.
Before that, the applicable tax rate was 16.5% for corporations in Hong Kong. The Company did not make any provisions for Hong Kong profit
tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax laws, NTH HK is exempted
from income tax on its foreign-derived income and there are no withholding taxed in Hong Kong on remittance of dividends. PRC Effective January 1, 2008, the New Taxation Law
of PRC stipulates that domestic enterprises and foreign invested enterprises (the “FIEs”) are subject to a uniform tax rate
of 25%. Under the PRC tax law, companies are required to make quarterly estimate payments based on 25% tax rate; companies that received
preferential tax rates are also required to use a 25% tax rate for their installment tax payments. The overpayment, however, will not
be refunded and can only be used to offset future tax liabilities. The Company evaluates the level of authority for
each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures
the unrecognized benefits associated with the tax positions. For the six months ended December 31, 2020 and 2019, the Company had no unrecognized
tax benefits. Due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future income to
realize the deferred tax assets. As of December 31, 2020 and June 30, 2020, the Company had net operating loss carryforwards of $2,926,042
and $2,266,653, respectively, and maintains a full valuation allowance on its net deferred tax assets. The Company incurred current income tax expenses
of $259,031 arising from taxable profit generated by 39Pu. The Company did not have any current and deferred tax expenses for the six
months ended December 31, 2019. The Company accounts for uncertainty in income
taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for
recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained
on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the
largest amount that is more than 50% likely of being realized upon settlement. Interest and penalties related to uncertain tax positions
are recognized and recorded as necessary in the provision for income taxes. The Company is subject to income taxes in the PRC. According
to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational
errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances,
where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years.
There is no statute of limitation in the case of tax evasion. There were no uncertain tax positions as of December 31, 2020 and June 30,
2020, and the Company does not believe that its unrecognized tax benefits will change over the next twelve months.

Related Party Transactions and

Related Party Transactions and Balances6 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND BALANCES13. RELATED PARTY TRANSACTIONS AND BALANCES As of December 31, 2020 and June 30, 2020, the
Company had a balance of $3,411 and $1,127 due from a related party which was indirectly controlled Mr. Guo'an Hu, one of the shareholders
of 39Pu, generated from sales of dark tea products prior to acquisition of 39Pu by the Company. During the six months ended December 31, 2020,
the Company sold dark tea products of $25,932 to one related party. During the six months ended December 31, 2019, the Company did not
incur significant related party transactions.

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES14. COMMITMENTS AND CONTINGENCIES
1) Lease Commitments As of December 31, 2020, the Company leases offices
space under certain non-cancelable operating leases, with terms ranging between one and ten years. The Company considers those renewal
or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right
of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. The Company determines whether a contract is or
contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease.
When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's
leases do not provide a readily determinable implicit rate. Therefore, the Company discount lease payments based on an estimate of its
incremental borrowing rate. The Company's lease agreements do not contain
any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related
assets and liabilities recorded on the balance sheets.
December 31, June 30,
(unaudited)
Rights of use lease assets $ 363,318 $ 553,904
Operating lease liabilities, current 308,276 315,259
Operating lease liabilities, noncurrent 124,673 310,098
Total operating lease liabilities $ 432,949 $ 625,357 The weighted average remaining lease terms and discount rates for all
of operating leases were as follows as of December 31, 2020 and June 30, 2020:
December 31, June 30,
(unaudited)
Remaining lease term and discount rate
Weighted average remaining lease term (years) 2.35 3.30
Weighted average discount rate 4.75 % 4.75 % During the six months ended December 31, 2020 and 2019, the Company
incurred total operating lease expenses of $100,892 and $202,970, respectively. The following is a schedule, by years, of maturities of lease liabilities
as of December 31, 2020:
For the six months ended June 30, 2021 $ 214,272
For the twelve months ended June 30, 2022 165,017
For the twelve months ended June 30, 2023 38,840
For the twelve months ended June 30, 2024 and thereafter 33,232
Total lease payments 451,361
Less: imputed interest (18,412 )
Present value of lease liabilities $ 432,949

Segment Reporting

Segment Reporting6 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]
Segment Reporting15. SEGMENT REPORTING The Company presents segment information after
elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are
allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as
those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount,
depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not
evaluate the performance of segments using asset information. As of December 31, 2020 and June 30, 2020, the Company had two segments,
which is retail business by provision of high-quality tea beverages in its tea shop chain ("tea shop chain") conducted by
Hunan MYT and distribution of dark tea products conducted by 39Pu. The following tables present the summary of each
segment's revenue, loss from operations, loss before income taxes and net loss which is considered as a segment operating performance
measure, for the six months ended December 31, 2020 and 2019:
For the Six Months Ended December 31, 2020
Tea shop Distribution of Dark tea
chains products Unallocated Total
Revenues $ 169,656 $ 3,704,424 $ - $ 51,189
Income (Loss) from operations $ (460,535 ) $ 910,067 $ (1,108,830 ) $ (659,298 )
Net income (loss) $ (393,649 ) $ 771,102 $ (680,654 ) $ (303,201 )
For the Six Months Ended December 31, 2019
Tea shop Distribution of Dark tea
chains products Unallocated Total
Revenues $ 348,816 $ 69,403 $ - $ 418,219
Loss from operations $ (884,478 ) $ (85,628 ) $ (508,911 ) $ (1,479,017 )
Net loss $ (836,986 ) $ (10,194 ) $ (493,581 ) $ (1,340,761 )
Details of the Company's revenue by segment
are set out in Note 2(f). As of December 31, 2020, the Company's total
assets were $7,306,504 for its tea shop chains, $5,975,415 for its distribution of dark tea business, and $20,993,400 unallocated. As substantially all of the Company's long-lived
assets are located in the PRC and substantially all of the Company's revenue is derived from within the PRC, no geographical information
is presented.

Subsequent Event

Subsequent Event6 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Event16. SUBSEQUENT EVENT On March 26, 2021, the Company entered into certain
securities purchase agreement (the "SPA") with certain "non-U.S. Persons" (the "Purchasers") as defined
in Regulation S of the Securities Act of 1933, as amended (the "Securities Act") pursuant to which the Company agreed
to sell an aggregate of 3,797,488 units (the "Units"), each Unit consisting of one ordinary share of the Company, no par value
("Share") and a warrant to purchase three Shares ("Warrant") with an initial exercise price of $4.65 per Share,
at a price of $3.72 per Unit, for an aggregate purchase price of approximately $14.1 million (the "Offering"). The net proceeds
to the Company from such Offering will be approximately $14.1 million and shall be used by the Company for the planned blockchain and
cryptocurrency mining operation and for working capital and general corporate purposes. The Warrants are exercisable six (6) months from
the date of issuance at an initial exercise price of $4.65 per Share, for cash (the " Warrant Shares On April 20, 2021, the transaction contemplated
by the SPA consummated when all the closing conditions of the SPA have been satisfied and the Company issued 3,797,488 Units to the Purchasers
pursuant to the SPA.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)6 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
Basis of presentation and principle of consolidation(a) Basis of presentation and principle of consolidation The unaudited condensed
consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United
States ("U.S. GAAP"). The unaudited interim
financial information as of December 31, 2020 and for the six months ended December 31, 2020 and 2019 have been prepared without audit,
pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are
normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and
regulations. As of December 31, 2019, the Company had two VIEs – Hunan MYT and 39Pu. The unaudited interim financial information
should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 20-F for the fiscal year
ended June 30, 2020, which was filed with the SEC on October 30, 2020. In the opinion of management,
all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company's unaudited financial
position as of December 31, 2020, its unaudited results of operations for the six months ended December 31, 2020 and 2019, and its unaudited
cash flows for the six months ended December 31, 2020 and 2019, as applicable, have been made. The unaudited interim results of operations
are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Consolidation of Variable Interest Entity(b) Consolidation of Variable Interest Entity Material terms of the Hunan MYT VIE Agreements
and 39Pu VIE Agreements are described below: Exclusive Business Cooperation Agreement Pursuant to the Exclusive Business Cooperation
Agreements, Shanghai MYT and 39Pu each provides Hunan MYT with technical support, consulting services and management services on an exclusive
basis, utilizing its advantages in technology, human resources, and information. Additionally, Hunan MYT and 39Pu each granted an irrevocable
and exclusive option to Shanghai MYT to purchase from each of Hunan MYT and 39Pu, any or all of Hunan MYT's and 39Pu assets at the
lowest purchase price permitted under the PRC laws. Should Shanghai MYT exercise such option, the parties shall enter into a separate
asset transfer or similar agreement. For services rendered to Hunan MYT and 39Pu by Shanghai MYT under the agreement, Shanghai MYT is
entitled to collect a service fee calculated based on the time of services rendered multiplied by the corresponding rate, plus amount
of the services fees or ratio decided by the board of directors of Shanghai MYT based on the value of services rendered by Shanghai MYT
and the actual income of Hunan MYT and 39Pu from time to time, which is substantially equal to all of the net income of Hunan MYT and
51% of net income of 39Pu, respectively. The Exclusive Business Cooperation Agreement shall
remain in effect for ten years unless it is terminated by Shanghai MYT with 30-day prior written notice. Hunan MYT or 39Pu does not have
the right to terminate the agreement unilaterally. Shanghai MYT may unilaterally extend the term of this agreement with prior written
notice. Exclusive Option Agreement Under the Exclusive Option Agreement between Peng
Fang and Shanghai MYT, irrevocably granted Shanghai MYT (or its designee) an exclusive option to purchase, to the extent permitted under
PRC law, once or at multiple times, at any time, part or all of their equity interests in Hunan MYT. The option price is equal to the
capital paid in by Peng Fang subject to any appraisal or restrictions required by applicable PRC laws and regulations. Under the Exclusive Option Agreement between three
shareholders of 39Pu and Shanghai MYT, the three shareholders irrevocably granted Shanghai MYT (or its designee) an exclusive option to
purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in 39Pu.
The option price is equal to the capital paid in by the three shareholders subject to any appraisal or restrictions required by applicable
PRC laws and regulations. The agreement remains effective for a term of
ten years and may be renewed at Shanghai MYT's election. Share Pledge Agreement Under the Share Pledge Agreement, Peng Fang and
the three shareholders of 39Pu each pledged all of their equity interests in Hunan MYT and 39Pu to Shanghai MYT to guarantee the performance
of Hunan MYT's and 39Pu's obligations under the Exclusive Business Cooperation Agreement. Under the terms of the agreement,
in any event of default, as set forth in the Share Pledge Agreement, including that Hunan MYT or Peng Fang, 39Pu or the three shareholders
breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, Shanghai MYT, as pledgee, will be
entitled to certain rights, including, but not limited to, the right to dispose of the pledged equity interest in accordance with applicable
PRC laws. Shanghai MYT shall have the right to collect any and all dividends declared or generated in connection with the equity interest
during the term of pledge. The Share Pledge Agreement shall be effective
until all payments due under the Exclusive Business Cooperation Agreement have been paid by Hunan MYT and 39Pu, respectively. Shanghai
MYT shall cancel or terminate the Share Pledge Agreement upon Hunan MYT's and 39Pu's full payment of fees payable under the
Exclusive Business Cooperation Agreement. Timely Reporting Agreement To ensure Hunan MYT and 39Pu promptly provide
all of the information that Shanghai MYT and the Company need to file various reports with the SEC, a Timely Reporting Agreement was entered
between Shanghai MYT, and Hunan MYT and 39Pu, respectively. Under the Timely Reporting Agreement, Hunan MYT and 39Pu each agreed that
it is obligated to make its officers and directors available to the Company and promptly provide all information required by the Company
so that the Company can file all necessary SEC and other regulatory reports as required. Although it is not explicitly stipulated in the
Timely Reporting Agreement, the parties agreed its term shall be the same as that of the Exclusive Business Cooperation Agreement. Power of Attorney Under the Power of Attorney, Peng Fang and the
three shareholders of 39Pu each authorized Shanghai MYT to act on her behalf as her exclusive agent and attorney with respect to all rights
as shareholder, including but not limited to: (a) attending shareholders' meetings; (b) exercising all the shareholder's rights,
including voting, that shareholders are entitled to under the laws of China and the Articles of Association of Hunan MYT and 39Pu, including
but not limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on
behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer and other senior management
members of Hunan MYT and 39Pu. Although it is not explicitly stipulated in the
Power of Attorney, the term of the Power of Attorney shall be the same as the term of that of the Exclusive Option Agreement. This Power of Attorney is coupled with an interest
and shall be irrevocable and continuously valid from the date of execution of this Power of Attorney, so long as Peng Fang is a shareholder
of Company. The VIE Agreements became effective immediately
upon their execution. VIE is an entity that have either a total equity
investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose
equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected
residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has
a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. Shanghai MYT is deemed
to have a controlling financial interest and be the primary beneficiary of Hunan MYT and 39Pu, because it has both of the following characteristics:
1. power to direct activities of a VIE that most significantly impact the entity's economic performance, and
2. obligation to absorb losses of the entity that could potentially be significant to the VIE or right to receive benefits from the entity that could potentially be significant to the VIE. Pursuant to the VIE Agreements, Hunan MYT and
39Pu pay service fees equal to 100% and 51% of its net income to Shanghai MYT, respectively. At the same time, Shanghai MYT is entitled
to receive 100% and 51% of expected residual returns from Hunan MYT and 39Pu, respectively. The VIE Agreements are designed so that Hunan
MYT and 39Pu operate for the benefit of the Company. Accordingly, the accounts of Hunan MYT are consolidated in the accompanying financial
statements pursuant to ASC 810-10, Consolidation. In addition, their financial positions and results of operations are included in the
Company's consolidated financial statements. In addition, as all of these VIE agreements are
governed by PRC law and provide for the resolution of disputes through arbitration in the PRC, they would be interpreted in accordance
with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed
as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company's
ability to enforce these VIE agreements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or
courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons.
In the event the Company is unable to enforce these VIE agreements, it may not be able to exert effective control over Hunan MYT or 39Pu
and its ability to conduct its business may be materially and adversely affected. All of the Company's main current operations
are conducted through Hunan MYT since November 2018, and through 39Pu since October 2019. Current regulations in China permit Hunan MYT
and 39Pu to pay dividends to the Company only out of their accumulated distributable profits, if any, determined in accordance with their
articles of association and PRC accounting standards and regulations. The ability of Hunan MYT and 39Pu to make dividends and other payments
to the Company may be restricted by factors including changes in applicable foreign exchange and other laws and regulations. The following financial statement balances and
amounts only reflect the financial position and financial performances of Hunan MYT and 39Pu, which were included in the consolidated
financial statements as of December 31 and June 30, 2020:
December 31, June 30,
(unaudited)
Cash $ 1,142,514 $ 362,384
Short-term investments 3,335,640 2,266,069
Inventories 1,475,924 1,403,582
Loans due from a third party 2,785,636 2,222,191
Other current assets 607,423 292,917
Investments in equity investees 1,096,370 -
Property and equipment, net 1,327,658 1,315,326
Deposits for plant, property and equipment 1,013,825 849,245
Right of use assets 363,318 553,904
Other noncurrent assets 133,611 159,434
Total Assets $ 13,281,919 $ 9,425,052
-
Due to MYT* $ 10,466,925 $ 7,270,932
Other current liabilities 1,050,524 885,515
Total Liabilities $ 11,517,449 $ 8,156,447
* Payable due to MYT is eliminated upon consolidation.
For the Six Months Ended
2020 2019
(unaudited) (unaudited)
Revenue $ 3,874,080 $ 418,219
Net income (loss) $ 377,453 $ (847,182 )
Segment reporting(c) Segment reporting In accordance with ASC
280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available
that is evaluated regularly by the chief operating decision maker ("CODM"), or decision making group, in deciding how to allocate
resources and in assessing performance. The Company uses the "management approach" in determining reportable operating segments.
The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for
making operating decisions and assessing performance as the source for determining the Company's reportable segments. Management,
including the chief operating decision maker, reviews operation results by the revenue of different services. For the six months ended
December 31, 2020 and 2019, the Company has two operating business lines, including retail business by provision of high-quality
tea beverages in its tea shop chain business conducted by Hunan MYT and dark tea distribution business by 39Pu. Based on management's
assessment, the Company has determined that the two operating business lines are two operating segments as defined by ASC 280.
Trade receivables(d) Trade receivables Trade receivables are recorded at the invoiced
amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates
the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established
and recorded based on management's assessment of potential losses based on the credit history and relationships with the customers.
Management reviews its receivables on a regular basis to determine if 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. The Company considered the amounts of receivables
in dispute and believes an allowance for these receivables were not necessary as at December 31, 2020 and June 30, 2020.
Inventories(e) Inventories Inventories,
consisting of products available for sale, are stated at the lower of cost and market. Cost of inventories is determined using the weighted
average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to slow-moving
merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment.
The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the consolidated
statements of income and comprehensive income.
Revenue recognition(f) Revenue recognition The Company adopted ASC 606, Revenue from Contracts
with Customers ("ASC 606") beginning on July 1, 2018 using the modified retrospective approach. ASC 606 establishes principles
for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts
to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods
or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those
goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance
by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from
applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer
of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing
and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to
the Company's consolidated financial statements upon adoption of ASC 606. In according with ASC 606, revenues are recognized
when control of the promised services is transferred to customers, in an amount that reflects the consideration we expect to be entitled
to in exchange for those services. During the six months ended December 31, 2020
and 2019, the Company generated revenues primarily from sales of tea products, beverages and light meals in its tea shop chains by Hunan
MYT, and from sales of dark team products by 39Pu. Sales of tea products, beverages and light
meals in retail shop chains by Hunan MYT Customers
place order and pay for tea products, beverage drinks and light meals in the Company's tea shop chains. Revenues are recognized
at the point of delivery to customers. Customers that purchase prepaid cards are issued additional points for free at the time of purchase.
Cash received from the sales of prepaid vouchers are recognized as unearned income. Consideration collected for prepaid cards is equally
allocated to each point as an element, including the points issued for free, to determine the transaction price for each point. The allocated
transaction price are recognized as revenues upon the redemption of the points for purchases. Sales of dark tea products by 39Pu - Disaggregation of revenue -
For the Six Months Ended
2020 2019
(unaudited) (unaudited)
Sales by Hunan MYT $ 169,656 $ 348,816
Sales by 39Pu 3,704,424 69,403
$ 3,874,080 $ 418,219
Investment in equity investees(g) Investment in equity investees The investments for which the Company has the
ability to exercise significant influence are accounted for under the equity method. Under the equity method, original investments are
recorded at cost and adjusted by the Company's share of undistributed earnings or losses of these entities, the amortization of
intangible assets recognized upon purchase price allocation and dividend distributions or subsequent investments. All unrecognized inter-company
profits and losses have been eliminated under the equity method. When the estimated amount to be realized from the investments falls below
its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered
other than temporary.
Leases(h) Leases The Company adopted ASU 2016-02, Leases (Topic
842), on July 1, 2019, using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered
into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases its offices which are classified
as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with
the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee's obligation to make lease
payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee's
right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Company recognizes
the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company's incremental borrowing rate for the same term as the underlying lease.
The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any
initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets
are reviewed for impairment. No impairment for right-of-use lease assets as of December 31, 2020.
Recently announced accounting standards(i) Recently announced accounting standards In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments The Company does not believe other recently issued
but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position,
statements of operations and cash flows.

Organization and Principal Ac_2

Organization and Principal Activities (Tables)6 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of consolidated financial statementsName Background Ownership
Delta Technology Holdings USA Inc. ("Urban Tea USA")
● A
US company ● Incorporated
on May 22, 2018 ● A
holding company 100% owned by the Company
NTH BVI
● A
BVI company ● Incorporated
on August 28, 2018 ● A
holding company 100% owned by the Company
NTH HK
● A
Hong Kong company ● Incorporated
on September 11, 2018 ● A
holding company 100% owned by NTH BVI
Shanghai MYT
● A
PRC company and deemed a wholly foreign owned enterprise ("WOFE") ● Incorporated
on October 19 ● Registered
capital of $1 million ● A
holding company WOFE, 100% owned by NTH HK
Hunan MYT
● A
PRC limited liability company ● Incorporated
on October 17, 2018 ● Registered
capital of $4,330,590 (RMB 30 million) ● Engaged
in specialty tea product distribution and retail business by provision of high-quality tea beverages in its tea shop chain 100% VIE of Shanghai MYT
39Pu
● A
PRC limited liability company ● Incorporated
on April 14, 2011 ● Registered
capital of $3,522,424 (RMB 20.9 million) with registered capital fully paid-up ● Engaged
in dark tea distribution 51% VIE of Shanghai MYT

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)6 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of consolidation of variable interest entityDecember 31, June 30,
(unaudited)
Cash $ 1,142,514 $ 362,384
Short-term investments 3,335,640 2,266,069
Inventories 1,475,924 1,403,582
Loans due from a third party 2,785,636 2,222,191
Other current assets 607,423 292,917
Investments in equity investees 1,096,370 -
Property and equipment, net 1,327,658 1,315,326
Deposits for plant, property and equipment 1,013,825 849,245
Right of use assets 363,318 553,904
Other noncurrent assets 133,611 159,434
Total Assets $ 13,281,919 $ 9,425,052
-
Due to MYT* $ 10,466,925 $ 7,270,932
Other current liabilities 1,050,524 885,515
Total Liabilities $ 11,517,449 $ 8,156,447
* Payable due to MYT is eliminated upon consolidation.
For the Six Months Ended
2020 2019
(unaudited) (unaudited)
Revenue $ 3,874,080 $ 418,219
Net income (loss) $ 377,453 $ (847,182 )
Schedule of revenue recognitionFor the Six Months Ended
2020 2019
(unaudited) (unaudited)
Sales by Hunan MYT $ 169,656 $ 348,816
Sales by 39Pu 3,704,424 69,403
$ 3,874,080 $ 418,219

Acquisition of 39PU (Tables)

Acquisition of 39PU (Tables)6 Months Ended
Dec. 31, 2020
Asset Acquisition [Abstract]
Schedule of fair value of assets acquired and liabilitiesFair value
Net tangible assets $ 3,509,468
Goodwill 7,863,081
Foreign exchange adjustments 102,867
Less: Noncontrolling interests (5,675,416 )
Total purchase consideration $ 5,800,000

Inventories (Tables)

Inventories (Tables)6 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]
Schedule of inventoriesDecember 31, June 30,
(unaudited)
Merchant products $ 1,000,837 $ 968,642
Raw materials 40,796 18,542
Packaging and other supplies 391,000 376,394
Other products 43,291 40,004
1,475,924 1,403,582
Less: inventory write-down - -
Total inventories $ 1,475,924 $ 1,403,582

Loans Due from Third Parties (T

Loans Due from Third Parties (Tables)6 Months Ended
Dec. 31, 2020
Loans Due from Third Parties [Abstract]
Schedule of Loans due from third parties December 31, June 30,
(unaudited)
Sichuan Senmiao Ronglian Technology Co, Ltd. $ 1,560,258 $ 2,222,191
Shenzhen Qianhai Leshi Health Management Co., Ltd. 1,225,378 -
Total loans due from third parties $ 2,785,636 $ 2,222,191
(a) The Company purchased short-term investments of $1,148,930 in April 2019, and acquired short-term investments
of $1,177,653 from the acquisition of 39Pu, both of which were investments in Senmiao Ronglian which was a variable interest entity of
Senmiao Technology Ltd, a US listed company which used to operate a peer-to-peer marketplace before October 2019. In October 2019, Senmiao
Ronglian disposed of the peer-to-peer marketplace, and the Company's short-term investments became a loan due from Sichuan Ronglian
as of December 31, 2019. According to the loan agreement between
the Company and Sichuan Ronglian, the loans will be paid in 12 months before December 9, 2020, with a per annum interest rate of 7%. During
the six months ended December 31, 2020 and 2019, Senmiao Ronglian repaid an aggregation of $814,003 and $nil to the Company with remaining
balance to be repaid before December 31, 2021. The Company asssessed the payment ability
of Senmiao Ronglian and did not provide allowance against the balance.
(b) In December 2020, the Company entered into a loan agreement with Shenzhen Qianhai to provide a loan of
$1,225,378 to the third party. The loan matured in June 2021 with an interest rate of 1.495% per annum. The loan was made for the purpose
of making use of idle cash.

Investment in Equity Investees

Investment in Equity Investees (Tables)6 Months Ended
Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Schedule of investment in equity investeesDecember 31, June 30,
(unaudited)
Urban Tea Management Inc. (“Meno”) $ 310,000 $ 210,000
Guokui Management Inc. (“Guokui”) 100,000 -
Chuangyeying Brand Management Co., Ltd. (“CYY”) 390,589 -
Store Master Food Trading Co., Ltd. (“Store Master”) 706,818 -
Less: Share of results of equity investees (218,330 ) (22,245 )
$ 1,280,077 $ 187,755

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)6 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipmentDecember 31, June 30,
(unaudited)
Building $ 855,570 $ 790,605
Office equipment 652,169 618,323
Electronic equipment 55,760 51,526
Vehicles 27,271 25,200
Leasehold improvements 621,105 573,937
Less: accumulated depreciation (884,217 ) (744,265 )
$ 1,327,658 $ 1,315,326

Equity (Tables)

Equity (Tables)6 Months Ended
Dec. 31, 2020
Equity [Abstract]
Schedule of warrants activityNumber of Weighted Expiration
Balance of warrants outstanding as of July 1, 2019 2,396,747 4.68 years *
Balance of warrants outstanding as of December 31, 2019 2,396,747 4.18 years *
Balance of warrants outstanding as of July 1, 2020 2,396,747 3.67 years *
Balance of warrants outstanding as of December 31, 2020 2,396,747 3.17 years *
* Among the 2,396,747 shares of warrants, 359,727 shares will expire on November 20, 2022, 2,037,020 shares will be expire on May 23, 2024.

Loss Per Share (Tables)

Loss Per Share (Tables)6 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted loss per common shareFor the Six Months Ended
2020 2019
(unaudited) (unaudited)
Net loss attributable to Urban Tea's shareholders $ (681,041 ) $ (1,335,766 )
Weighted Average Shares Outstanding-Basic and Diluted $ 72,370,528 $ 31,289,010
Loss per share- basic and diluted $ (0.09 ) $ (0.04 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)6 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating lease related assets and liabilitiesDecember 31, June 30,
(unaudited)
Rights of use lease assets $ 363,318 $ 553,904
Operating lease liabilities, current 308,276 315,259
Operating lease liabilities, noncurrent 124,673 310,098
Total operating lease liabilities $ 432,949 $ 625,357
Schedule of weighted average remaining lease terms and discount ratesDecember 31, June 30,
(unaudited)
Remaining lease term and discount rate
Weighted average remaining lease term (years) 2.35 3.30
Weighted average discount rate 4.75 % 4.75 %
Schedule of maturities of lease liabilitiesFor the six months ended June 30, 2021 $ 214,272
For the twelve months ended June 30, 2022 165,017
For the twelve months ended June 30, 2023 38,840
For the twelve months ended June 30, 2024 and thereafter 33,232
Total lease payments 451,361
Less: imputed interest (18,412 )
Present value of lease liabilities $ 432,949

Segment Reporting (Tables)

Segment Reporting (Tables)6 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]
Schedule of segment operating performance measure For the Six Months Ended December 31, 2020
Tea shop Distribution of Dark tea
chains products Unallocated Total
Revenues $ 169,656 $ 3,704,424 $ - $ 51,189
Income (Loss) from operations $ (460,535 ) $ 910,067 $ (1,108,830 ) $ (659,298 )
Net income (loss) $ (393,649 ) $ 771,102 $ (680,654 ) $ (303,201 )
For the Six Months Ended December 31, 2019
Tea shop Distribution of Dark tea
chains products Unallocated Total
Revenues $ 348,816 $ 69,403 $ - $ 418,219
Loss from operations $ (884,478 ) $ (85,628 ) $ (508,911 ) $ (1,479,017 )
Net loss $ (836,986 ) $ (10,194 ) $ (493,581 ) $ (1,340,761 )

Organization and Principal Ac_3

Organization and Principal Activities (Details)6 Months Ended
Dec. 31, 2020
Delta Technology Holdings USA Inc [Member]
Background, description● A US company ● Incorporated on May 22, 2018 ● A holding company
Ownership, description100% owned by the Company
NTH BVI [Member]
Background, description● A BVI company ● Incorporated on August 28, 2018 ● A holding company
Ownership, description100% owned by the Company
NTH HK [Member]
Background, description● A Hong Kong company ● Incorporated on September 11, 2018 ● A holding company
Ownership, description100% owned by NTH BVI
Shanghai MYT [Member]
Background, description● A PRC company and deemed a wholly foreign owned enterprise (“WOFE”) ● Incorporated on October 19 ● Registered capital of $1 million ● A holding company
Ownership, descriptionWOFE, 100% owned by NTH HK
Hunan MYT [Member]
Background, description● A PRC limited liability company ● Incorporated on October 17, 2018 ● Registered capital of $4,330,590 (RMB 30 million) ● Engaged in specialty tea product distribution and retail business by provision of high-quality tea beverages in its tea shop chain
Ownership, description100% VIE of Shanghai MYT
39Pu [Member]
Background, description● A PRC limited liability company ● Incorporated on April 14, 2011 ● Registered capital of $3,522,424 (RMB 20.9 million) with registered capital fully paid-up ● Engaged in dark tea distribution
Ownership, description51% VIE of Shanghai MYT

Organization and Principal Ac_4

Organization and Principal Activities (Details Textual)Oct. 02, 2019USD ($)sharesOct. 28, 2019USD ($)sharesOct. 17, 2019USD ($)sharesDec. 31, 2020USD ($)Dec. 31, 2020CNY (¥)Oct. 31, 2020
Organization and Principal Activities (Textual)
Equity interest percentage51.00%
Organization and principal activities, descriptionThe Company owns 100% equity interest in NTH Holdings Limited ("NTH BVI"), an entity incorporated on August 28, 2018 in accordance with the laws and regulations in British Virgin Islands ("BVI"). NTH BVI owns 100% equity interest in Tea Language Group Limited ("NTH HK"), an entity incorporated on September 11, 2018 in accordance with the laws and regulations in Hong Kong ("HK"). On October 19, 2018, the Company, through NTH HK, established Mingyuntang (Shanghai) Tea Co. Ltd.  ("Shanghai MYT"), as a Wholly Foreign-Owned Enterprise ("WFOE") in the People's Republic of China ("PRC").
Delta Technology Holdings USA Inc. [Member]
Organization and Principal Activities (Textual)
Percentage of owned subsidiary100.00%100.00%
NTH BVI [Member]
Organization and Principal Activities (Textual)
Percentage of owned subsidiary100.00%100.00%
NTH HK [Member]
Organization and Principal Activities (Textual)
Percentage of owned subsidiary100.00%100.00%
Shanghai MYT [Member]
Organization and Principal Activities (Textual)
Percentage of owned subsidiary100.00%100.00%
Hunan MYT [Member]
Organization and Principal Activities (Textual)
Percentage of owned subsidiary100.00%100.00%
Registered capital $ 4,330,590
Hunan MYT [Member] | RMB [Member]
Organization and Principal Activities (Textual)
Registered capital | ¥ ¥ 30,000,000
39Pu [Member]
Organization and Principal Activities (Textual)
Percentage of owned subsidiary51.00%51.00%
Registered capital $ 3,522,424
39Pu [Member] | RMB [Member]
Organization and Principal Activities (Textual)
Registered capital | ¥ ¥ 20,900,000
39Pu VIE Agreements [Member]
Organization and Principal Activities (Textual)
Cash paid for consideration $ 2,400,000 $ 2,400,000 $ 2,400,000
Share value for consideration | shares10,000,000 10,000,000 10,000,000
Additional cash consideration $ 600,000
Additional share value amount | shares4,000,000
Equity interest percentage51.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019Jun. 30, 2020Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Cash $ 13,333,034 $ 1,801,180 $ 5,311,693 $ 4,668,745
Short-term investments3,335,640 2,266,069
Inventories1,475,924 1,403,582
Other current assets106,244 108,224
Property and equipment, net1,327,658 1,315,326 $ 1,315,326
Deposits for plant, property and equipment1,013,825 849,245
Right of use assets363,318 553,904
Other noncurrent assets67,089 92,992
Total Assets34,275,319 22,635,127
Other current liabilities167,379 68,579
Total Liabilities1,355,257 2,035,931
Revenue3,874,080 418,219
Variable Interest Entity, Primary Beneficiary [Member]
Property, Plant and Equipment [Line Items]
Cash1,142,514 362,384
Short-term investments3,335,640 2,266,069
Inventories1,475,924 1,403,582
Loans due from a third party2,785,636 2,222,191
Other current assets607,423 292,917
Investments in equity investees1,096,370
Property and equipment, net1,327,658 1,315,326
Deposits for plant, property and equipment1,013,825 849,245
Right of use assets363,318 553,904
Other noncurrent assets133,611 159,434
Total Assets13,281,919 9,425,052
Due to MYT10,466,925 7,270,932
Other current liabilities1,050,524 885,515
Total Liabilities11,517,449 $ 8,156,447
Revenue3,874,080 418,219
Net income (loss) $ 377,453 $ (847,182)

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Accounting Policies [Abstract]
Sales by Hunan MYT $ 169,656 $ 348,816
Sales by 39Pu3,704,424 69,403
Total $ 3,874,080 $ 418,219

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details Textual)6 Months Ended
Dec. 31, 2020Segments
Summary of Significant Accounting Policies (Textual)
Number of operating business lines2
Variable interest entity agreements, descriptionPursuant to the VIE Agreements, Hunan MYT and 39Pu pay service fees equal to 100% and 51% of its net income to Shanghai MYT, respectively. At the same time, Shanghai MYT is entitled to receive 100% and 51% of expected residual returns from Hunan MYT and 39Pu, respectively.
Exclusive option agreement term10 years
Thirty Nine Pu [Member]
Summary of Significant Accounting Policies (Textual)
Percentage of owned subsidiary51.00%

Risks (Details)

Risks (Details) - Dec. 31, 2020USD ($)CNY (¥)
Risks (Textual)
Insured amount $ 250,000
Mainland China [Member]
Risks (Textual)
Deposited with a bank1,000,000
Insured amount70,770
Mainland China [Member] | RMB [Member]
Risks (Textual)
Insured amount | ¥ ¥ 500,000
Cash Deposit [Member]
Risks (Textual)
Deposited with a bank12,200,000
Cash Deposit [Member] | Credit Risk [Member]
Risks (Textual)
Deposited with a bank $ 12,200,000

Disposal of Elite (Details)

Disposal of Elite (Details)Feb. 09, 2019USD ($)
Disposal of Elite (Textual)
Cash purchase price $ 1,750,000

Acquisition of 39PU (Details)

Acquisition of 39PU (Details) - Level 3 [Member]Dec. 31, 2020USD ($)
Net tangible assets $ 3,509,468
Goodwill7,863,081
Foreign exchange adjustments102,867
Less: Noncontrolling interests(5,675,416)
Total purchase consideration $ 5,800,000

Acquisition of 39PU (Details Te

Acquisition of 39PU (Details Textual) - USD ($)Oct. 02, 2019Oct. 28, 2019Oct. 17, 2019
Acquisition of 39PU (Textual)
Acquisition of equity interest51.00%
Contingent consideration, descriptionUnder the terms of the purchase agreement, the consideration was comprised of cash consideration of $2.4 million and share consideration of 10,000,000 Ordinary Shares, at a per share price of $0.34. In addition, a contingent cash consideration of $0.6 million and a share consideration of $1.2 million will be delivered to the three shareholders according to the earn-out payment based on the financial performance of 39Pu in its next fiscal years.
Cash consideration $ 2,400,000 $ 2,400,000
Shares consideration10,000,000 10,000,000
Exchange rate $ 7.1489

Inventories (Details)

Inventories (Details) - USD ($)Dec. 31, 2020Jun. 30, 2020
Inventory Disclosure [Abstract]
Merchant products $ 1,000,837 $ 968,642
Raw materials40,796 18,542
Packaging and other supplies391,000 376,394
Other products43,291 40,004
Inventory gross1,475,924 1,403,582
Less: inventory write-down
Total inventories $ 1,475,924 $ 1,403,582

Loans Due from Third Parties (D

Loans Due from Third Parties (Details) - USD ($)Dec. 31, 2020Jun. 30, 2020
Total loans due from third parties $ 2,785,636 $ 2,222,191
Sichuan Senmiao Ronglian Technology Co, Ltd. [Member]
Total loans due from third parties[1]1,560,258 2,222,191
Shenzhen Qianhai Leshi Health Management Co., Ltd. [Member]
Total loans due from third parties[2] $ 1,225,378
[1]The Company purchased short-term investments of $1,148,930 in April 2019, and acquired short-term investments of $1,177,653 from the acquisition of 39Pu, both of which were investments in Senmiao Ronglian which was a variable interest entity of Senmiao Technology Ltd, a US listed company which used to operate a peer-to-peer marketplace before October 2019. In October 2019, Senmiao Ronglian disposed of the peer-to-peer marketplace, and the Company's short-term investments became a loan due from Sichuan Ronglian as of December 31, 2019
[2]In December 2020, the Company entered into a loan agreement with Shenzhen Qianhai to provide a loan of $1,225,378 to the third party. The loan matured in June 2021 with an interest rate of 1.495% per annum. The loan was made for the purpose of making use of idle cash.

Loans Due from Third Parties _2

Loans Due from Third Parties (Details Textual) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 09, 2020Apr. 30, 2019
Loans Due from Third Parties (Textual)
Purchased short-term investments $ 1,148,930
Acquired short-term investments $ 1,177,653
Interest rate of per annum1.495%7.00%
Repaid of loan $ 814,003 $ 814,003
Loan value $ 1,225,378

Investment in Equity Investee_2

Investment in Equity Investees (Details) - USD ($)Dec. 31, 2020Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Urban Tea Management Inc. (“Meno”) $ 310,000 $ 210,000
Guokui Management Inc. (“Guokui”)100,000
Chuangyeying Brand Management Co., Ltd. (“CYY”)390,589
Store Master Food Trading Co., Ltd. (“Store Master”)706,818
Less: Share of results of equity investees(218,330)(22,245)
Total $ 1,280,077 $ 187,755

Investment in Equity Investee_3

Investment in Equity Investees (Details Textuals) - USD ($)1 Months Ended6 Months Ended
Sep. 23, 2020Dec. 31, 2020Dec. 31, 2019Oct. 31, 2020
Investment in an Equity Investee (Textual)
Equity interest percentage51.00%
Net loss $ 218,330
Investments $ 310,000
Investment, descriprtionThe Company and an unrelated third party invested capital of 70% and 30%, respectively, and was entitled to 51% and 49% profit earned from Meno, respectively. Meno did not commence operations until August 1, 2020.
Share purchase agreement, descriptionthe Company entered into a share purchase agreement, pursuant to which the Company agreed to pay $400,000 in cash to acquire 80% of the equity interest in Guokui, in which the Company and other unrelated third party investor were entitled to 51% and 49% profit earned from Guokui, respectively. As of December 31, 2020, the Company made investments aggregating $100,000. The investment was for the purpose of expansion its tea shop chain to overseas market.
Cash consideration $ 376,462
Cash consideration respectively $ 681,252

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)Dec. 31, 2020Jun. 30, 2020Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation $ (884,217) $ (744,265)
Property, plant and equipment, net1,327,658 $ 1,315,326 1,315,326
Building [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net855,570 790,605
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net652,169 618,323
Electronic equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net55,760 51,526
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net27,271 25,200
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net $ 621,105 $ 573,937

Property and Equipment, Net (_2

Property and Equipment, Net (Details Textual) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Property And Equipment, Net (Textual)
Depreciation expenses $ 78,671 $ 68,941
Office equipment cost18,644 3,047
Accumulated depreciation2,830 1,282
Net loss disposal of office equipment $ (15,242) $ (1,025)

Equity (Details)

Equity (Details) - shares6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Equity [Abstract]
Beginning balance of warrants outstanding, Number of shares2,396,747 2,396,747
Ending balance of warrants outstanding, Number of shares2,396,747 2,396,747
Beginning Balance of warrants outstanding, Weighted average life3 years 8 months 2 days4 years 8 months 5 days
Ending Balance of warrants outstanding, Weighted average life3 years 2 months 1 day4 years 2 months 5 days
Balance of warrants outstanding, Expiration dates*[1]*
[1]Among the 2,396,747 shares of warrants, 359,727 shares will expire on November 20, 2022, 2,037,020 shares will be expire on May 23, 2024.

Equity (Details Textual)

Equity (Details Textual) - USD ($)Aug. 14, 2019Jul. 30, 2019May 24, 2019Nov. 21, 2017Dec. 31, 2020Dec. 31, 2019Jun. 30, 2020Jun. 05, 2020Jun. 30, 2019
Equity (Textual)
Common stock, shares authorized150,000,000 150,000,000
Common stock, shares issued79,491,998 45,188,648
Common stock, shares outstanding79,491,998 45,188,648
Value of services total amount $ 222,505
Warrants outstanding2,396,747 2,396,747 2,396,747 2,396,747
Fair value of warrants $ (845,683) $ (15,330)
Placement Agent Warrants [Member]
Equity (Textual)
Warrants to purchase ordinary shares227,600
Warrants issuance of period5 years
Warrants exercise price per share $ 1.86
Fair value of warrants30,954 $ 246,718
Registered direct offering warrants [Member]
Equity (Textual)
Warrants to purchase ordinary shares1,809,420
Warrants issuance of period5 years
Warrants exercise price per share $ 1.86
Fair value of warrants $ 246,081 $ 895,663
Ordinary Shares [Member]
Equity (Textual)
Common stock, shares authorized100,000,000
Common stock, shares issued8,834
Private placement warrants [Member]
Equity (Textual)
Issuance of shares1,798,635
Warrants issuance of period5 years
Warrants exercise price per share $ 1.31
Private warrants to shareholder359,727
Warrants outstanding359,727 359,727
Fair value of warrants $ 27,699 $ 142,092
Warrant [Member]
Equity (Textual)
Warrants, descriptionAmong the 2,396,747 shares of warrants, 359,727 shares will expire on November 20, 2022, 2,037,020 shares will be expire on May 23, 2024.
Securities purchase agreement [Member] | Common Stocks [Member]
Equity (Textual)
Sale of stock ordinary shares15,000,000 18,750,000
Sale of stock par value per share $ 0.4 $ 0.32
Gross proceeds of value $ 6,000,000 $ 6,000,000
Net proceeds of value $ 5,500,000 $ 5,500,000

Loss Per Share (Details)

Loss Per Share (Details) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Earnings Per Share [Abstract]
Net loss attributable to Urban Tea's shareholders $ (681,041) $ (1,335,766)
Weighted Average Shares Outstanding-Basic and Diluted72,370,528 31,289,010
Loss per share- basic and diluted $ (0.09) $ (0.04)

Income Taxes (Details)

Income Taxes (Details) - USD ($)1 Months Ended6 Months Ended
Dec. 22, 2017Dec. 31, 2020Dec. 31, 2019Jun. 30, 2020
Income Taxes (Textual)
Net operating loss carryforward $ 1,519,567 $ 1,245,761
Net operating losses expireThe federal net operating loss carryforward is available to reduce future years’ taxable income through year 2037 and net operating losses generated before 2018 will not expire.
Income tax expenses $ 259,031
PRC [Member]
Income Taxes (Textual)
Net operating loss carryforward2,926,042 $ 2,266,653
Underpayment of taxes $ 100,000
Tax rate descriptionEffective January 1, 2008, the New Taxation Law of PRC stipulates that domestic enterprises and foreign invested enterprises (the "FIEs") are subject to a uniform tax rate of 25%. Under the PRC tax law, companies are required to make quarterly estimate payments based on 25% tax rate; companies that received preferential tax rates are also required to use a 25% tax rate for their installment tax payments.
Hong Kong [Member]
Income Taxes (Textual)
Statutory financial statements adjusted tax rate, descriptionThe applicable tax rate for the first HKD$2 million of assessable profits is 8.25% and assessable profits above HKD$2 million will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019.
Applicable tax rate16.50%
United States [Member] | Maximum [Member]
Income Taxes (Textual)
Corporate tax rate35.00%
United States [Member] | Minimum [Member]
Income Taxes (Textual)
Corporate tax rate21.00%

Related Party Transactions an_2

Related Party Transactions and Balances (Details) - USD ($)6 Months Ended
Dec. 31, 2020Jun. 30, 2020
Related Party Transactions and Balances (Textual)
Due from related party $ 3,411 $ 1,127
Sale to related party $ 25,932

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($)Dec. 31, 2020Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Rights of use lease assets $ 363,318 $ 553,904
Operating lease liabilities, current308,276 315,259
Operating lease liabilities, noncurrent124,673 310,098
Total operating lease liabilities $ 432,949 $ 625,357

Commitments and Contingencies_3

Commitments and Contingencies (Details 1)Dec. 31, 2020Jun. 30, 2020
Remaining lease term and discount rate
Weighted average remaining lease term (years)2 years 4 months 6 days3 years 3 months 19 days
Weighted average discount rate4.75%4.75%

Commitments and Contingencies_4

Commitments and Contingencies (Details 2) - USD ($)Dec. 31, 2020Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
For the six months ended June 30, 2021 $ 214,272
For the twelve months ended June 30, 2022165,017
For the twelve months ended June 30, 202338,840
For the twelve months ended June 30, 2024 and thereafter33,232
Total lease payments451,361
Less: imputed interest(18,412)
Present value of lease liabilities $ 432,949 $ 625,357

Commitments and Contingencies_5

Commitments and Contingencies (Details Textual) - USD ($)Dec. 31, 2020Dec. 31, 2019
Commitments and Contingencies (Textual)
Incurred total operating lease expenses $ 100,892 $ 202,970

Segment Reporting (Details)

Segment Reporting (Details) - USD ($)6 Months Ended
Dec. 31, 2020Dec. 31, 2019
Revenues $ 3,874,080 $ 418,219
Income (Loss) from operations(659,298)(1,479,017)
Net income (loss)(303,201)(1,340,761)
Tea Shop Chains [Member]
Revenues169,656 348,816
Income (Loss) from operations(460,535)(884,478)
Net income (loss)(393,649)(836,986)
Distribution of Dark Tea Products [Member]
Revenues3,704,424 69,403
Income (Loss) from operations910,067 (85,628)
Net income (loss)771,102 (10,194)
Unallocated [Member]
Revenues
Income (Loss) from operations(1,108,830)(508,911)
Net income (loss) $ (680,654) $ (493,581)

Segment Reporting (Details Text

Segment Reporting (Details Textual) - USD ($)Dec. 31, 2020Jun. 30, 2020
Segment Reporting (Textual)
Total assets $ 34,275,319 $ 22,635,127
Tea Shop Chains [Member]
Segment Reporting (Textual)
Total assets7,306,504
Distribution of Dark Tea Products [Member]
Segment Reporting (Textual)
Total assets5,975,415
Unallocated [Member]
Segment Reporting (Textual)
Total assets $ 20,993,400

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)1 Months Ended6 Months Ended
Apr. 20, 2021Mar. 26, 2021Dec. 31, 2020Dec. 31, 2019
Subsequent Event (Textual)
Net proceeds from offering shares $ 11,050,000
Subsequent Event [Member] | Securities Purchase Agreement [Member]
Subsequent Event (Textual)
Sale of aggregate shares3,797,488 3,797,488
Sale of stock, descriptionThe Company agreed to sell an aggregate of 3,797,488 units (the "Units"), each Unit consisting of one ordinary share of the Company, no par value ("Share") and a warrant to purchase three Shares ("Warrant") with an initial exercise price of $4.65 per Share.
Exercise price $ 4.65
Share price, per unit $ 3.72
Aggregate purchase price $ 14,100,000
Net proceeds from offering shares $ 14,100,000
Warrants expire5 years 6 months
Consecutive trading days equity volume, descriptionThe Warrants contain a mandatory exercise right for the Company to force exercise of the Warrants if the Company's Shares trades at or above $23.25 per Share, for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the Warrants are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 300,000 Shares per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date.