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Note 8 - Other Assets

3 Months Ended

Sep. 30, 2021

8.	OTHER ASSETS

Other assets consisted of the following:

	Sept. 30, 2021 (Unaudited)			June 30, 2021
Down payment for purchase of investment properties *	$	-		$	-
Down payment for purchase of property, plant and equipment		140			372
Deposits for rental and utilities		163			160
Asset in transit		12			-
Currency translation effect		(19	)		(270	)
Total	$	296		$	262

*Down payment for purchase of investment properties included:

	RMB			US Dollars
Original investment (10% of Jun Zhou equity)	$	10,000		$	1,606
Less: Management Fee		(5,000	)		(803	)
Net Investment		5,000			803
Less: Share of Loss on Joint Venture		(137	)		(22	)
*Net Investment as Down Payment (Note a)**		4,863			781
Loans Receivable		5,000			773
Interest Receivable		1,250			193
Less: Impairment of Interest		(906	)		(140	)
*Transferred to Down Payment (Note b)**		5,344			826
* Down Payment for purchase of investment properties		10,207			1,607
Less: Provision of Impairment loss on other assets		(10,207	)		(1,607	)
* Down Payment for Purchase of Investment Properties		-			-

In fiscal year 2011, the Company signed a Joint Venture agreement (“agreement”) with Jia Sheng Property Development Co. Ltd. (“Developer”) to form a new company, Jun Zhou Co., Limited (“Joint Venture” or “Jun Zhou”) to joint develop the “Singapore Themed Park” project (the “project”), where the Company paid RMB10 million for the 10% investment in the joint venture. The Developer paid Company a management fee of RMB5 million in cash upon signing of the agreement with a remaining fee of RMB5 million payable upon fulfillment of certain conditions in accordance with the agreement. The Company further reduced its investment by RMB137, or approximately $22 towards the losses from operations incurred by the joint venture.

In fiscal year 2014, the Company disposed its entire 10% interest in the joint venture. The Company recognized the disposal of its 10% investment in Jun Zhou based on the recorded net book value of RMB5 million, or equivalent to $803, from net considerations paid, in accordance with US GAAP under ASC Topic 845 Nonmonetary Consideration, and it’s presented under “Other Assets” as noncurrent assets to defer the recognition of the gain on the disposal of the 10% interest in the joint venture investment until such time that the consideration is paid, so that the gain can be ascertained.

b)	Amounts of RMB5,000 or approximately $773 as disclosed in Note 5, plus the interest receivable on Long-term loan receivable of RMB1,250 or approximately $193, and impairment on interest of RMB 906 or approximately $140.

The shop lots are to be delivered to TTCQ upon completion of the construction of the shop lots in the Singapore Themed Resort Project. The initial targeted date of completion was in fiscal year 2017. Based on discussion with the developers, the completion date is currently estimated to be December 31, 2022. The delay was primarily due to the time needed by the developers to work with various parties to inject sufficient funds into this project, especially during the COVID-19 pandemic

During the fourth quarter of 2021, The Company accrued an impairment charge of $1,580 related to the doubtful recovery of the down payment on shop lots in the Singapore Theme Resort Project in Chongqing, China, which the impairment loss translated based on the exchange rate used in the fiscal year 2021. The Company accounted for this non-cash impairment charge because of increased uncertainties regarding the project’s viability given the developer’s weakening financial condition as well as uncertainties arising from the negative real estate environment in China, implementation of control measures on real estate lending and its relevant government policies, together with effects of the ongoing pandemic.