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Prepaid Expenses and Other Current Assets

9 Months Ended

Mar. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	March 31, 2020 (Unaudited)		June 30, 2019
Security deposit	$	155,900	$	46,933
Prepaid expenses and advances		80,910		34,181
Other receivables		197,598		-
Others		57,505		24,818
Total	$	491,913	$	105,932

On February 20, 2020, Guozhong Times entered an Operation Cooperation Agreement with an unrelated company, Heqin (Beijing) Technology Co, Ltd. (“Heqin”) for marketing and promoting the sale of Face Recognition Payment Processing equipment and related technical support, and other products of the Company including Epidemic Prevention and Control Systems. Heqin has a strong sales team who used to work shoulder by shoulder with fortune 500 companies and specializes in business marketing and sales channel establishment and expansion, especially in education industry and public area.They have had Successful experience of organizing multiple business matchmaking meetings with customers, distributors and retailers.

The cooperation term is from February 2, 2020 through March 1, 2023; however, Heqin is the exclusive distributor of the Company’s face Recognition Payment Processing products for the period up to July 30, 2020. During the period of March and April 2020, Guozhong Times will provide the operating fund to Heqin, together with a credit line provided by Guozhong Times to Heqin for the period from May 2020 through August 2020, for total borrowing amount of RMB 10 million ($1.41 million) for Heqin’s operating needs. As of March 31, 2020, Guozhong Times had an outstanding receivable of RMB 1.4 million ($197,598) from Heqin and was recorded as other receivable, with no interest and repayment date no later than the end of current fiscal year. The loan to Heqin is secured against the assets of Heqin, and Heqin’s shareholders are jointly responsible for the timely repayment of the loan.

No profits will be allocated and distributed before the full repayment of the borrowing. After Heqin pays in full the borrowing amount, Guozhong Times and Heqin will start to distribute from the profits of sale of Face Recognition Payment Processing equipment and related technical support at 30% and 70% of the net income, respectively. The profit allocation for the sale of other products of the Company are to be negotiated. Heqin will receive certain stock reward when it reaches the preset sales target under the performance compensation mechanism.