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Concentrations of Risk
12 Months Ended
Jun. 30, 2021
Risks and Uncertainties [Abstract]  
Concentrations of risk

Note 16 – Concentrations of risk

 

Credit Risk

 

The Company is exposed to credit risk from its cash in banks and advances on performance obligations.

 

As of June 30, 2021 and 2020, $0 and approximately $0.5 million was deposit with a bank located in the US or Hong Kong subject to credit risk. In the US, the insurance coverage of each bank is USD $250,000. In Hong Kong, the insurance coverage of each bank is HKD 500,000 (approximately $64,000).

  

Prepayments and advances are subject to credit evaluation. An allowance will be made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

 

Vendor Concentration Risk

 

For the year ended June 30, 2021, one vendor accounted for 89% of the Company’s total purchases.