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Commiments

9 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

NOTE 10 – COMMIMENTS

Lease Agreement

On March 20, 2019, the Company entered into the one-year operating lease agreement for a senior management's dormitory. Pursuant to the lease agreement, the lease expires on March 22, 2020 and has a monthly rent of RMB 5,200 (or approximately $735). The Company did not renew the lease upon lease expiration.

On July 30, 2019, the Company entered into an operating lease agreement for its office in Beijing. Pursuant to the lease agreement, the delivery date of the property was August 8, 2019 but the lease term started on October 8, 2019 and expire on October 7, 2022, and has a monthly rent of RMB 207,269 without value added tax ("VAT") (or approximately $29,250). The lease required a security deposit of three months' rent of RMB 677,769 (or approximately $96,000). The Company will receive a six-month rent abatement.

On July 30, 2019, the Company entered into a property service agreement for its office in Beijing (described above). Pursuant to the property service agreement, the agreement commenced on August 9, 2019 and will expire on October 8, 2022, and has a quarterly fee of RMB 202,352 (or approximately $29,000). The deposit was RMB202,352 (or approximately $29,000).

On August 28, 2019, the Company entered an operating lease agreement for senior officers' dormitory in Beijing. The lease has a term of two-years with expiration date on August 31, 2021, the monthly rent is RMB 14,500 ($2,045), payable every six months in advance.

The Company adopted ASC 842 on July 1, 2019. The components of lease costs, lease term and discount rate with respect of the office and dormitory leases with an initial term of more than 12 months are as follows:

	Three Months Ended March 31, 2020		Nine Months Ended March 31, 2020
	(Unaudited)		(Unaudited)
Operating lease expense	$	31,727	$	113,211

	March 31, 2020 (Unaudited)
Right-of-use assets	$	758,162
Lease liabilities	$	348,401
Lease liabilities - noncurrent	$	421,558

Weighted average remaining lease term		2.47 years
Weighted average discount rate		5.00	%

The following is a schedule, by years, of maturities of the operating lease liabilities as of March 31, 2020:

Twelve months ending March 31,	Minimum Lease Payment
2021	$	348,401
2022		302,774
2023		175,525
Total undiscounted cash flows		826,700
Less: imputed interest		(56,741	)
Present value of lease liabilities		769,959