| Schedule of advances to suppliers - third parties |
| | |
June 30, | | |
June 30, | |
| |
2018 | | |
2017 | |
| | |
| | |
| |
| Deposit for ERP (1) | |
$ | 437,357 | | |
$ | - | |
| Deposit for IT infrastructure (2) | |
| 1,002,750 | | |
| - | |
| Freight fees (3) | |
| 564,365 | | |
| 29,960 | |
| Other | |
| 140,513 | | |
| 24,930 | |
| Total advances to suppliers-third parties | |
$ | 2,144,985 | | |
$ | 54,890 | |
| (1) | On December 27, 2017, with the approval of the Board, the Company signed a contract with Tianjin Anboweiye
Technology Ltd Co. (“Tianjin Anboweiye”), to develop a more complete ERP system based on the Company’s current
operations and projected future growth. In March 2018, the Company paid a deposit to start phase one of the development which includes
upgraded accounting and human resources modules, new order processing and customer relationship management system. The Company
paid a $437,357 deposit to Tianjin Anboweiye as of June 30, 2018. The total contract price for phase one amounted to RMB 4,000,000,
approximately USD 615,000. The project is currently in the planning and design stage. The Company expects the planning stage will
be completed in and will start development in October 2018. The remaining balance will be settled upon completion of services in
fiscal year 2021. |
| (2) | On June 22, 2018, the Company entered into contract to improve its IT infrastructure. The total
contract for the services is $1.2 million and the Company paid a deposit of $1.0 million. The contract includes four parts: $420,000
for hardware leasing of twelve months; $480,000 for onsite services and IT consulting for a two year period; $60,000 for operating
system set up and $240,000 for continuing integration and with the ERP system and data management for two years. The system is
expected to be installed in October 2018. |
| (3) | The prepaid freight fee is the Company’s advances made for various shipping cost for shipments in
July 2018. |
|
| Schedule of advances to suppliers - related party |
| | |
June 30, | | |
June 30, | |
| The Company’s advances to suppliers – related party are as follows: | |
2018 | | |
2017 | |
| | |
| | |
| |
| Freight fees | |
$ | 3,414,619 | | |
$ | 3,333,038 | |
| Total advances to suppliers-related party | |
$ | 3,414,619 | | |
$ | 3,333,038 | |
|