SUBSEQUENT EVENTS

12 Months Ended

Jun. 30, 2015

NOTE 23. SUBSEQUENT EVENTS

On May 13, 2015, the Company entered into an Equity Distribution Agreement with Maxim Group LLC to create an at-the-market equity program (the “ATM Offering”) under which it may sell up to $10,000,000 worth of its ordinary shares (the “Shares”) from time to time through Maxim Group LLC, as sales agent. Shares will be issued pursuant to a base prospectus dated August 6, 2013 included in a previously filed and effective Registration Statement on Form S-3. Through September 16, 2015, 313,071 shares are issued under this agreement, among which 15,874 shares were issued after June 30, 2015.

On July 11, 2015, the Company’s board approved to reserve 800,000 shares under the 2015 incentive plan. As of September 25, 2015, no option is granted.

On July 29, 2015, the Company entered into an acquisition memorandum of understanding with a Qinghai oilfield service company. Negotiations are still on going and no official document is signed as of the date of this report.

On August 19, 2015, the Company repaid ¥1,800,000 ($295,625) of short-term borrowing with an interest of ¥37,200 ($6,110).

On August 20, 2015, the Company repaid ¥1,500,000 ($246,354) of short-term borrowing.

On September 22, 2015, the Company entered into an amendment to the Letter Agreement (the “Agreement”) with Maxim dated January 28, 2015, extending the term of the Agreement for an additional six months, or until February 29, 2016.