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Condensed financial information of the parent company

12 Months Ended

Jun. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed financial information of the parent company

Note 16 – Condensed financial information of the parent company

The Company performed a test on the restricted net assets of the consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), "General Notes to Financial Statements" and concluded that it was applicable for the Company to disclose the financial statements for the parent company.

The subsidiaries did not pay any dividend to the Company for the periods presented. For the purpose of presenting parent-only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as "Loss in excess of investment in subsidiaries" and the loss of the subsidiaries is presented as "Equity loss of subsidiaries". Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted.

The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2020 and 2019.  

PARENT COMPANY BALANCE SHEETS

AS OF JUNE 30, 2020 AND 2019

(UNAUDITED)

		June 30, 2020				June 30, 2019
ASSETS
CURRENT ASSETS:
Cash		$	793,234			$	60,122
Other receivables			1,002,300				2,300
Prepayments and advances			150,000				25,000
Total current assets			1,945,534				87,422
OTHER ASSETS:
Intercompany receivable			1,709,710				19,149,878
Investment in subsidiaries			3,457,764				-
Total other assets			5,167,474				19,149,878
Total assets		$	7,113,008			$	19,237,300
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Other payables and accrued liabilities		$	511,799			$	203,292
Other payables - shareholders			10,711				540,000
Loans payable - employee			-				308,089
Total current liabilities			552,510				1,051,381
OTHER LIABILITIES:
Loss in excess of investment in subsidiaries			-				17,665,121
Total other liabilities			-				17,665,121
Total liabilities			552,510				18,716,502
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred share, $0.001 par value, 1,000,000 shares authorized, no share issued or outstanding			-				-
Ordinary share, $0.001 par value, 74,000,000 shares authorized, 25,623,822 and 7,174,626 shares issued and outstanding as of June 30, 2020 and 2019, respectively			25,624				7,175
Additional paid-in-capital			69,689,789				54,237,082
Deferred stock compensation			(1,201,183	)			(3,161,200	)
Deficit			(61,923,732	)			(64,031,446	)
Statutory reserves			-				6,248,092
Accumulated other comprehensive income			-				7,221,095
Total shareholders' equity			6,590,498				520,798
Total liabilities and shareholders' equity		$	7,113,008			$	19,237,300

PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE YEARS ENDED JUNE 30, 2020, 2019 AND 2018

(UNAUDITED)

		For the Years Ended June 30,
		2020				2019				2018
GENERAL AND ADMINISTRATIVE EXPENSES		$	(1,402,044	)		$	(1,756,972	)		$	(858,605	)
STOCK COMPENSATION EXPENSE			(3,444,617	)			(4,592,200	)			(1,388,501	)
LOSS FROM OPERATIONS			(4,846,661	)			(6,349,172	)			(2,247,106	)
OTHER INCOME (EXPENSE), NET
Interest income			-				84				13
Finance expense			(5,007	)			(1,465	)			(26	)
Equity loss of subsidiaries			(12,562,142	)			(8,037,977	)			(5,152,846	)
Gain on sale of subsidiaries			5,787,213				-				-
TOTAL OTHER EXPENSE, NET			(6,779,936	)			(8,039,358	)			(5,152,859	)
NET LOSS			(11,626,597	)			(14,388,530	)			(7,399,965	)
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation income (loss)			-				(335,080	)			347,097
COMPREHENSIVE LOSS		$	(11,626,597	)		$	(14,723,610	)		$	(7,052,868	)

PARENT COMPANY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JUNE 30, 2020, 2019 AND 2018

(UNAUDITED)         

		For the Years Ended June 30,
		2020				2019				2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(11,626,597	)		$	(14,388,530	)		$	(7,399,965	)
Adjustments to reconcile net loss to cash used in operating activities:
Stock compensation expense			3,444,617				4,592,000				1,388,501
Equity loss of subsidiaries			12,562,142				8,037,977				5,152,846
Gain on sale of discontinued operations			(5,787,213	)			-				-
Changes in operating assets and liabilities
Other receivables			-				-				(2,300	)
Prepayments and advances			(125,000	)			15,458				(40,458	)
Intercompany receivables			(1,231,449	)			(575,094	)			(42,350	)
Other payables and accrued liabilities			93,711				509,381				2,000
Other payables – related parties			-				540,000				720,000
Net cash used in operating activities			(2,669,789	)			(1,268,608	)			(221,726	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment			(2,000,000	)			-				-
Proceeds from disposal of subsidiaries			600,000				-				-
Net cash used in investing activities			(1,400,000	)			-				-
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from shareholders			300,000				-				-
Proceeds from sale of ordinary shares			4,502,901				950,000				600,000
Net cash provided by financing activities			4,802,901				950,000				600,000
NET CHANGE IN CASH			733,112				(318,608	)			378,274
CASH, beginning of year			60,122				378,730				456
CASH, end of year		$	793,234			$	60,122			$	378,730
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES:
Accrued liabilities reclassified to loans payable – employees upon tri-party agreements		$	-			$	308,089			$	-
Ordinary shares issued to repay other payables – related parties and service providers		$	1,137,378			$	4,928,400			$	3,859,443
Ordinary shares issued to repay debt in subsidiary		$	5,240,679			$	-			$	-
Ordinary share issued for acquisition of subsidiary		$	1,889,799			$	-			$	-
Ordinary share issued for acquisition of equipment		$	1,963,607			$	-			$	-
Other receivables outstanding from disposal of subsidiary		$	1,000,000			$	-			$	-
Recognition of accrued liabilities from subsidiary		$	214,792			$	-			$	-
Derecognition of intercompany balance upon disposal of subsidiary		$	23,164,488			$	-			$	-

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- References

No definition available.

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- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section S99
-Paragraph 6
-Subparagraph (SX 210.5-04(Schedule I))
-URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674

Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

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