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Condensed financial information of the parent company | 12 Months Ended
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Jun. 30, 2019
Condensed financial information of the parent company |
Condensed financial information of the parent company | Note 15 – Condensed financial information of the parent company The Company performed a test on the restricted net assets of the consolidated subsidiary 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 subsidiary 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 “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. 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, 2019 and 2018. PARENT COMPANY BALANCE SHEETS
|  | June 30, 2019 |  | June 30, 2018
ASSETS |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |
Intercompany receivables |  | $ | 6,623,561 |  | $ | 1,800,000
OTHER ASSETS |  |  |  |  |  |
Investment in subsidiary |  |  | 18,554,729 |  |  | 14,149,218
Total assets |  | $ | 25,178,290 |  | $ | 15,949,218
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |
Other payable – related parties |  | $ | 257,384 |  | $ | 74,131
Accrued expenses |  |  | 167,765 |  |  | 41,552
Intercompany payables |  |  | 227,927 |  |  | —
Total current liabilities |  |  | 653,076 |  |  | 115,683
Total liabilities |  |  | 653,076 |  |  | 115,683
COMMITMENTS AND CONTINGENCIES |  |  |  |  |  |
MEZZANINE EQUITY |  |  |  |  |  |
Ordinary shares, $0.01 par value, 0 and 725,000 shares issued and outstanding as of June 30, 2019 and 2018, respectively |  |  | — |  |  | 1,800,000
SHAREHOLDERS' EQUITY |  |  |  |  |  |
Ordinary shares, $0.01 par value, 50,000,000 shares authorized, 21,964,027 and 20,000,000 share issued and outstanding as of June 30, 2019 and 2018, respectively |  |  | 219,640 |  |  | 200,000
Additional paid-in capital |  |  | 11,031,937 |  |  | 4,655,943
Statutory reserves |  |  | 1,496,642 |  |  | 940,816
Retained earnings |  |  | 12,085,566 |  |  | 8,277,801
Accumulated other comprehensive loss |  |  | (308,571) |  |  | (41,025)
Total shareholders' equity |  |  | 24,525,214 |  |  | 14,033,535
Total liabilities and shareholders' equity |  | $ | 25,178,290 |  | $ | 15,949,218
PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|  | For the Years Ended June 30,
|  | 2019 |  | 2018 |  | 2017
OPERATING EXPENSES |  |  |  |  |  |  |  |  |
General and administrative |  | $ | (309,466) |  | $ | (115,683) |  | $ | —
LOSS FROM OPERATIONS |  |  | (309,466) |  |  | (115,683) |  |  | —
EQUITY INCOME OF SUBSIDIARY |  |  | 4,673,057 |  |  | 3,883,792 |  |  | 2,454,874
NET INCOME |  |  | 4,363,591 |  |  | 3,768,109 |  |  | 2,454,874
FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  |  | (267,546) |  |  | 133,553 |  |  | (135,663)
COMPREHENSIVE INCOME |  | $ | 4,096,045 |  | $ | 3,901,662 |  | $ | 2,319,211
PARENT COMPANY STATEMENTS OF CASH FLOWS
|  | For the Years Ended June 30,
|  | 2019 |  | 2018 |  | 2017
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |  |  |  |
Net income |  | $ | 4,363,591 |  | $ | 3,768,109 |  | $ | 2,454,874
Adjustments to reconcile net income to cash (used in) provided by operating activities: |  |  |  |  |  |  |  |  |
Equity income of subsidiary |  |  | (4,673,057) |  |  | (3,883,792) |  |  | (2,454,874)
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |
Other payable – related parties |  |  | 183,253 |  |  | 74,131 |  |  | —
Accrued expenses |  |  | 126,213 |  |  | 41,552 |  |  | —
Net cash (used in) provided by operating activities |  |  | — |  |  | — |  |  | —
CHANGES IN CASH |  |  | — |  |  | — |  |  | —
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year |  |  | — |  |  | — |  |  | —
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year |  | $ | — |  | $ | — |  | $ | —

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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 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 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 + Details
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