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Advances from Customers
9 Months Ended
Mar. 31, 2020
Advances from Customers [Abstract]  
ADVANCES FROM CUSTOMERS

NOTE 7 – ADVANCES FROM CUSTOMERS

 

On March 5, 2018, the Company entered into separate agreements with two sales agents. Pursuant to the agreements, the Company authorized the agents to market the Company’s Safe Campus Management System. The term of the agreements is for five years and will expire on March 6, 2023 and July 1, 2023, respectively. In accordance with ASU 2016-08, Principal versus Agent Considerations (ASC 606), the Company determined that it was the principal in these two contracts and as such, the Company recorded the payments received from the two sales agents as advances. The Company will recognize revenue from these contracts as the sales agents sell the products and services to third parties.

 

As of March 31, 2020, the Company had advances from customers of $1,361,134, of which, $1.28 million was advances from the sales agents. As of June 30, 2019, the Company had advances from customers of $1,318,897, all was the advances from the sales agents.

 

As of March 31, 2020, Guozhong Times has received 33 purchase orders from development and construction companies from Anhui and Fujian province, China for customized hardware and software solutions to detect and control the novel coronavirus outbreak in public areas. Datasea’s systems sold in these orders are utilized in public places, including campuses, shopping malls, scenic areas, residential areas and factory areas.

 

The value of a single purchase order ranges from $1,620 to $2,620 (RMB 11,500 to RMB 18,600). The total value of the 33 agreements is $84,000 (RMB 596,520). Pursuant to the purchase orders, customers shall pay the full amount within 15 days after the purchase order is signed. As of March 31, 2020, Guozhong Times has received $69,500 (RMB493,500).