NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note
1. ORGANIZATION AND NATURE OF BUSINESS
Founded
in the United States (the “U.S.”) in 2001, Sino-Global Shipping America, Ltd., a Virginia corporation (“Sino-Global”
or the “Company”), is a global shipping and freight logistics integrated solution provider. The Company provides tailored
solutions and value-added services to its customers to drive efficiency and control in related steps throughout the entire shipping and
freight logistics chain. The Company conducts its business primarily through its wholly-owned subsidiaries in the People’s Republic
of China (the “PRC” or “China”) (including Hong Kong) and the U.S. where a majority of the Company’s clients
are located.
The
Company operates in three operating segments including (1) shipping agency and management services, which are operated by its subsidiaries
in the U.S.; (2) freight logistics services, which are operated by its subsidiaries in the PRC; (3) container trucking services, which
are operated by its subsidiaries in the U.S.
On
April 10, 2019, the Company entered into a cooperation agreement with Mr. Weijun Qin, the Chief Executive Officer of a shipping management
company in China, to set up a joint venture in New York named State Priests Management Ltd. (“State Priests”), in which the
Company will hold a 20% equity interest. On July 26, 2019, the Company signed a revised cooperation agreement with Mr. Weijun Qin which
changed the Company’s equity interest in State Priests from 20% to 90%. The Company has not provided any cash contribution to the
joint venture and there has been no operation of the joint venture pending the International Ship Safety Management Certificate from
the China Classification Society (the “Certificate”). Sino-Global Shipping New York Inc. started providing shipping management
related services that do not require certification which includes arranging and coordinating for ship maintenance and inspection this
quarter.
On
November 6, 2019, the Company signed a revised cooperation agreement with Mr. Weijun Qin to restructure their equity interest in State
Priests. Given that State Priests failed to timely obtain the necessary approval from related authorities, Mr. Weijun Qin agreed to exchange
80% equity interest in Sea Continent Management Ltd. (“Sea Continent”), another New York entity Mr. Qin owns for the Company’s
90% equity interest in State Priests. The equity transfer has been consummated. Sea Continent already has the Certificate but has no
operations as of June 30, 2020. There has been no capital injection nor operations of State Priests and Sea Continent as of June 30,
2020, therefore no gain or loss has been recognized in the transaction. There has been no operation for Sea Continent for the year ended
June 30, 2021.
On
January 10, 2020, the Company entered into a cooperation agreement with Mr. Shanming Liang, a shareholder of the Company, to set up a
joint venture in New York named LSM Trading Ltd., in which the Company holds a 40% equity interest. No investment has been made by the
Company as of the date of this report. The new joint venture will facilitate the purchase agricultural related commodities in the U.S.
for customers in China and the Company will provide comprehensive supply chain and logistics solutions. There has been no operation for
LSM Trading for the years ended June 30, 2021 and 2020.
After
the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy
continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s
board of directors and stockholders and was intended to allow the Company to meet the minimum share price requirement of $1.00 per share
for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively
reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include
common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock.
On
July 31, 2020, the Company deregistered Longhe Ship Management (Hong Kong) Co., Limited (“LSM”) which is 100% own by Sino-Global
Shipping (HK) Ltd. (Hong Kong). LSM has not been in operation or carried on business after June 30, 2018. The result of operations of
LSM was immaterial for the years ended June 30, 2020 and 2019.
On
December 14, 2020, the Company incorporated a new entity named “Blumargo IT Solution Ltd.” with 80% ownership in partnership
with Tianjin Anboweiye Technology Co. to build up hi-tech and information-based logistic services to meet the higher and complicate demand
of customers. On June 30, 2021, the company increased the ownership to 100%.
On
March 19, 2021, the Company established a wholly owned entity of named “Cullinan Global Logistics Inc” which was set up to
support its freight logistics services in the U.S. The Company dissolved Cullinan on June 28, 2021. There was no material operation for
the year ended June 30, 2021.
Starting
from March 2021, the Company started cryptocurrency mining. The Company plans to leverage information technology and other innovative
technologies in its business platform. These types of technology may be helpful in expanding its traditional logistics service expertise.
Starting from March 2, 2021, the Company accepts Bitcoin as a form of payment for its global shipping, freight, and logistics services.
Payments made in Bitcoin will be made at the rate applicable at the payment date.
On
March 2, 2021, the Company entered into a purchase agreement (the “Agreement”) with Hebei Yanghuai Technology Co., Ltd. (“Yanghuai”)
for the purchase of 2,783 digital currency mining servers. The total gross purchase price was $4.6 million. The total computing power
will reach 50,440 t/s. After the transaction is completed, Yanghuai will manage and operate the servers at Yanghuai’s site with
no further charge from March 10, 2021 through March 9, 2022, after which time Sino-Global may engage Yanghuai to continue providing service
for a fee. The first cash payment of approximately $0.9 million was paid within 15 days after the date of signing the Agreement. The
second cash payment of approximately $0.9 million will be paid within 15 days after the date of acceptance of the servers and a special
VAT invoice provided by Yanghuai. The remaining payment of approximately $2.8 million will be paid in 5 quarters within 10 days following
the filing of Form 10-K or Form 10-Q for each of the Company’s financial quarters ending March 31, 2021, June 30, 2021, September
30, 2021, December 31, 2021 and March 31, 2022, subject to reductions if Yanghuai fails to meet the monthly committed net profit.
Over
the last two month, national and local governments in China have gradually restricted and banned cryptocurrency mining operations, causing
owners of servers like the Products to cease operations. The Company has been advised that the operation of the mining has been paused
by the Seller, which had continued to operate the Products on behalf of the Registrant. Based on amended agreement signed by the Company
and Yanghuai on September 17, 2021, the Company is not liable for rest of the contract price and has title to half of the products. The
Company recorded impairment for the mining equipment in the last quarter of 2021 in the amount of approximately $0.9 million.
On
March 24, 2021, the Company agreed to acquire a 60% ownership of Super Node LLC, which is a blockchain infrastructure developer and service
provider, in cash or stock transaction for $5.0 million subject to valuation. The transaction is subject to the satisfaction of warranties
and representations under the purchase agreement. Due to recent regulation of Bitcoin in China, the Company has paused the acquisition.
On
April 13, 2021, the Company formed a joint venture in which the Company owned 99% equity interest of Hainan Saimeinuo Trading Co., Ltd.,
in the free tax zone in Hainan Province, China, with a register capital of approximately $1.5 million. This subsidiary primarily engages
in freight logistics services.
On
April 21, 2021, the Company entered into a cooperation agreement with Mr. Bangpin Yu to set up a joint venture in U.S. named “Brilliant
Warehouse Service Inc” to support its freight logistics services in the U.S. The Company has a 51% equity interest in the joint
venture.
The
outbreak of the novel coronavirus (COVID-19) starting from late January 2020 in the PRC has spread rapidly to many parts of the world.
In March 2020, the World Health Organization declared the COVID-19 as a pandemic and has resulted in quarantines, travel restrictions,
and the temporary closure of stores and business facilities in China and the U.S.. Given the rapidly expanding nature of the COVID-19
pandemic, and because substantially all of the Company’s business operations and its workforce are concentrated in China and the
U.S., the Company’s business, results of operations, and financial condition have been adversely affected for the year ended June
30, 2021. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for
the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence
of COVID-19.
Note
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Presentation
The
accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the
United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses
of the subsidiaries and VIEs. All intercompany transactions and balances have been eliminated in consolidation.
Sino-Global
Shipping Agency Ltd., a PRC corporation (“Sino-China”), is considered a variable interest entity (“VIE”), with
the Company as the primary beneficiary. The Company, through Trans Pacific Shipping Ltd., entered into certain agreements with Sino-China,
pursuant to which the Company receives 90% of Sino-China’s net income. Sino-China was designed to operate in China for the benefit
of the Company. The Company does not receive any payment from Sino-China unless Sino-China recognizes net income during its fiscal year.
These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. If Sino-China
incurs a net loss during its fiscal year, the Company is not required to absorb such net loss.
As
a VIE, Sino-China’s revenues are included in the Company’s total revenues, and any income/loss from operations is consolidated
with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest
in Sino-China that requires consolidation of the financial statements of the Company and Sino-China.
The
Company has consolidated Sino-China’s operating results in accordance with Accounting Standards Codification (“ASC”)
810-10, “Consolidation”. The agency relationship between the Company and Sino-China and its branches is governed by a series
of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments
of whether the Company remains the primary beneficiary of Sino-China.
The
carrying amount and classification of Sino-China’s assets and liabilities included in the Company’s consolidated balance
sheets were as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
113,779
|
|
|
$
|
5,022
|
|
Total
current assets
|
|
|
113,779
|
|
|
|
5,022
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
56
|
|
|
|
1,608
|
|
Property
and equipment, net
|
|
|
-
|
|
|
|
41,171
|
|
Total
assets
|
|
$
|
113,835
|
|
|
$
|
47,801
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Other
payables and accrued liabilities
|
|
$
|
32,939
|
|
|
$
|
39,919
|
|
Total
liabilities
|
|
$
|
32,939
|
|
|
$
|
39,919
|
|
(b)
Fair Value of Financial Instruments
The
Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes
methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
Level
1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement
date.
Level
2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical
or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived
from or corroborated by observable market data.
Level
3 — Unobservable inputs that reflect management’s assumptions based on the best available information.
The
carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values
because of the short-term nature of these instruments.
(c)
Use of Estimates and Assumptions
The
preparation of the Company’s consolidated financial statements in conformity with US GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted
to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial
statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment
loss, deferred income taxes, income tax expense and the useful lives of property and equipment. The inputs into the Company’s judgments
and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Since
the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.
(d)
Translation of Foreign Currency
The
accounts of the Company and its subsidiaries are measured using the currency of the primary economic environment in which the entity
operates (the “functional currency”). The Company’s functional currency is the U.S. dollar (“USD”) while
its subsidiaries in the PRC, including Sino-China, Trans Pacific Shipping Ltd. and Trans Pacific Logistic Shanghai Ltd. report their
financial positions and results of operations in Renminbi (“RMB”), its subsidiary Sino-Global Shipping Australia Pty Ltd.,
reports its financial positions and results of operations in Australian dollar (“AUD”), its subsidiary Sino-Global Shipping
Hong Kong reports its financial positions and results of operations in Hong Kong dollar (“HKD”) and its subsidiary Sino-Global
Shipping Canada, Inc. reports its financial positions and results of operations in Canadian Dollar (“CAD”). The accompanying
consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange
rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions
are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements in accordance
with ASC 830-10, “Foreign Currency Matters”. Assets and liabilities are translated at current exchange rates quoted by the
People’s Bank of China at the balance sheets’ dates and revenues and expenses are translated at average exchange rates in
effect during the year. The resulting translation adjustments are recorded as other comprehensive loss and accumulated other comprehensive
loss as a separate component of equity of the Company, and also included in non-controlling interests.
The
exchange rates for the years ended June 30, 2021 and 2020 are as follows:
|
|
June
30,
|
|
|
|
2021
|
|
|
2020
|
|
Foreign
currency
|
|
Balance
Sheet
|
|
|
Profits/Loss
|
|
|
Balance
Sheet
|
|
|
Profits/Loss
|
|
RMB:1USD
|
|
|
6.4586
|
|
|
|
6.6228
|
|
|
|
7.0651
|
|
|
|
7.0312
|
|
AUD:1USD
|
|
|
1.3342
|
|
|
|
1.3403
|
|
|
|
1.4514
|
|
|
|
1.4924
|
|
HKD:1USD
|
|
|
7.7661
|
|
|
|
7.7564
|
|
|
|
7.7505
|
|
|
|
7.7948
|
|
CAD:1USD
|
|
|
1.2404
|
|
|
|
1.2830
|
|
|
|
1.3617
|
|
|
|
1.3421
|
|
(e)
Cash
Cash
consists of cash on hand and cash in bank which are unrestricted as to withdrawal or use. The Company maintains cash with various financial
institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of June 30, 2021 and 2020, cash balances of $628,039 and
$97,836, respectively, were maintained at financial institutions in the PRC. $201,990 and $8,780 of these balances are not covered by
insurance as the deposit insurance system in China only insured each depositor at one bank for a maximum of approximately $70,000 (RMB
500,000). As of June 30, 2021 and 2020, cash balances of $44,203,436 and $25,739, respectively, were maintained at U.S. financial institutions.
$43,507,335 and nil of these balances are not covered by insurance, as each U.S. account was insured by the Federal Deposit Insurance
Corporation or other programs subject to $250,000 limitations. The Hong Kong Deposit Protection Board pays compensation up to a limit
of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of June 30,
2021 and 2020, cash balances of $3,698 and $2,029, respectively, were maintained at financial institutions in Hong Kong and were insured
by the Hong Kong Deposit Protection Board. As of June 30, 2021 and 2020, cash balances of $693 and $1,116, respectively, were maintained
at Australia financial institutions, and were insured as the Australian government guarantees deposits up to AUD 250,000 (approximately
$172,000). As of June 30, 2021 and 2020, amount of deposits the Company had covered by insurance amounted to $1,125,838 and $117,940,
respectively.
(f)
Cryptocurrencies
Cryptocurrencies, mainly bitcoin, are included
in current assets in the accompanying consolidated balance sheets. Cryptocurrencies purchased are recorded at cost and cryptocurrencies
awarded to the Company through its mining activities are accounted for as other revenue of the Company for the year ended June 30, 2021.
Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt.
Cryptocurrencies
held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized
but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely
than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured
using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has
the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it
is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the
Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized,
the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted.
(g)
Receivables and Allowance for Doubtful Accounts
Accounts receivable are presented at net realizable
value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on
a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances.
In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances,
customers’ historical payment history, their current credit-worthiness and current economic trends. Receivables are generally considered
past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers
balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after
exhaustive collection efforts. As the Company has focused its development in the shipping management segment, its customer base will be
more from smaller privately owned companies that will pay more timely than state owned companies. The Company also considers the economic
implications of COVID-19 on its estimates of the allowance and made $1,033,407 and $4,996,606 provision for doubtful accounts for the
years ended June 30, 2021 and 2020.There was no write off for year ended June 30, 2021 and wrote off $8,220,754 of accounts receivable
for the year ended June 30, 2020. The Company recovered $2,512 and $99,366 of accounts receivable for the year ended June 30, 2021 and
2020 respectively.
Other receivables represent mainly customer advances,
prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on
behalf of ship owners as well as office lease deposits. Management reviews its receivables on a regular basis to determine if the bad
debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for
doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off
against the allowances only after exhaustive collection efforts. The Company made nil and $10,055,203 allowance for doubtful accounts
of other receivables for the years ended June 30, 2021 and 2020, respectively. For the years ended June 30, 2021 and 2020, $11,665 and
$1,763 were written off against other receivables, respectively. The Company recovered $4,786,814 and nil of other receivables for the
years ended June 30, 2021 and 2020.
(h)
Property and Equipment, net
Property
and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly
attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a
straight-line basis over the following estimated useful lives:
Buildings
|
|
20 years
|
|
Motor
vehicles
|
|
3-10 years
|
|
Computer
and office equipment
|
|
1-5 years
|
|
Furniture
and fixtures
|
|
3-5 years
|
|
System
software
|
|
5 years
|
|
Leasehold
improvements
|
|
Shorter of lease term or useful lives
|
|
Mining
equipment
|
|
3 years
|
|
The carrying value of a long-lived asset is considered
impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is
identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair
value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent
appraisals. For the years ended June 30, 2021 and 2020, an impairment of $855,230 and $127,177 were recorded, respectively.
(i)
Intangible Assets, net
Intangible
assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated
useful lives:
Logistics
platform
|
|
3 years
|
|
The
Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. For
the years ended June 30, 2021 and 2020, an impairment of nil and $200,455 were recorded, respectively.
(j)
Revenue Recognition
The
Company recognizes revenue which represents the transfer of goods and services to customers in an amount that reflects the consideration
to which the Company expects to be entitled in such exchange. The Company identifies contractual performance obligations and determines
whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer.
The Company’s revenue streams are recognized at a point in time.
The
Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires the Company to (i) identify
the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including
variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction
price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance
obligation.
The
Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services.
Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon
acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company’s revenues
are recognized at a point in time after all performance obligations are satisfied.
Contract
balances
The
Company records receivables related to revenue when the Company has an unconditional right to invoice and receive payment.
Deferred
revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized.
The
Company’s disaggregated revenue streams are described as follows:
|
|
For
the Years Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Shipping
and management agency services
|
|
$
|
206,845
|
|
|
$
|
2,105,651
|
|
Freight
logistics services
|
|
|
4,944,187
|
|
|
|
4,368,596
|
|
Container
trucking services
|
|
|
-
|
|
|
|
61,709
|
|
Total
|
|
$
|
5,151,032
|
|
|
$
|
6,535,956
|
|
|
●
|
Revenues from shipping
and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant
vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the
related revenues are presented as deferred revenue.
|
|
●
|
Revenues from freight logistics services are recognized when the related contractual services are rendered.
For certain freight logistics contracts that the Company entered into with customers starting in the first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to this contracts are presented net of related costs. For the year ended June 30, 2020, gross revenue and gross cost of revenue related to these contracts amounted to approximately $25.8 million and $24.3 million, respectively. There was no such transaction for the year ended June 30, 2021.
|
|
●
|
Revenues from container
trucking services are recognized when the related contractual services are rendered.
|
Disaggregated
information of revenues by geographic locations are as follows:
|
|
For
the Years Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
PRC
|
|
|
4,921,022
|
|
|
|
4,368,596
|
|
U.S.
|
|
|
230,010
|
|
|
|
2,167,360
|
|
Total
revenues
|
|
$
|
5,151,032
|
|
|
$
|
6,535,956
|
|
(k)
Taxation
Because
the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns.
The Company uses the asset and liability method of accounting for income taxes in accordance with U.S. GAAP. Deferred taxes, if any,
are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported
amounts in the consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely
than not that the asset will not be utilized in the future.
The
Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained
on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties,
if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of June 30, 2021 and
2020.
Income
tax returns for the years prior to 2017 are no longer subject to examination by U.S. tax authorities.
PRC
Enterprise Income Tax
PRC
enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles (“PRC
GAAP”) at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC.
PRC
Value Added Taxes and Surcharges
The
Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and
affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. Entities that are VAT general
taxpayers are allowed to offset qualified VAT paid to suppliers against their VAT liability. Net VAT liability is recorded in taxes payable
on the consolidated balance sheets.
In
addition, under the PRC regulations, the Company’s PRC subsidiaries and affiliates are required to pay the city construction tax
(7%) and education surcharges (3%) based on the net VAT payments.
(l)
Earnings (loss) per Share
Basic
earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common stock of the Company by the weighted
average number of shares of common stock of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect
the potential dilution that could occur if securities or other contracts to issue common stock of the Company were exercised or converted
into common stock of the Company. Common stock equivalents are excluded from the computation of diluted earnings per share if their effects
would be anti-dilutive.
For
the years ended June 30, 2021 and 2020, there was no dilutive effect of potential shares of common stock of the Company because the Company
generated net loss.
(m)
Comprehensive Income (Loss)
The
Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board
(the “FASB”) which establishes standards for reporting comprehensive income (loss) and its component in financial statements.
Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of stockholders’
equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting
from the Company not using the U.S. dollar as its functional currencies.
(n)
Stock-based Compensation
The
Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation –
Stock Compensation”, which requires that stock-based payment transactions with employees be measured based on the grant-date fair
value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based
compensation expense at fair value on the grant date and recognizes the expense over the employee’s requisite service period.
The
Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under
FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or
the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services
are received.
Valuations
of stock based compensation are based upon highly subjective assumptions about the future, including stock price volatility and exercise
patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities
are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and
employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding.
The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time
of the grant.
(o)
Risks and Uncertainties
The
Company’s business, financial position and results of operations may be influenced by the political, economic, health and legal
environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to
special considerations and significant risks not typically associated with companies in North America and Western Europe. These include
risks associated with, among others, the political, economic, health and legal environments and foreign currency exchange. The Company’s
results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental
policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad,
and rates and methods of taxation, among other things.
In
March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic,
and because substantially all of the Company’s business operations and the workforce are concentrated in China and United States,
the Company’s business, results of operations, and financial condition have been adversely affected for the year ended June 30,
2021. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the
Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence
of COVID-19.
(p)
Recent Accounting Pronouncements
Pronouncements
adopted
In
August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure
Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure
requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the
valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty
disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted this ASU on July 1, 2020 and
the adoption has no significant impact to the Company’s consolidated financial statements as a whole.
Pronouncements
not yet adopted
In May 2019, the FASB issued ASU 2019-05, which
is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured
at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial
Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting
for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized
cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The
amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for
certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase
comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets.
Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13
while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which
to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies
applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after July 1, 2023, including
interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on July 1, 2023
assuming the Company will remain eligible to be smaller reporting company. The Company evaluating the impact of this new standard will
have on Company’s consolidated financial statements and related disclosures.
In December 2019, the FASB issued ASU 2019-12,
“Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting
for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application
of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company
for annual and interim reporting periods beginning July 1, 2021. Early adoption of the amendments is permitted, including adoption in
any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects
to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes
that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company
believes the adoption of this new standard will not have a material impact on Company’s consolidated financial statements and related
disclosures.
In August 2020, the FASB issued ASU 2020-06, “Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The amendments in this Update to
address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain
financial instruments with characteristics of liabilities and equity. ASU 2020-06 is effective for the Company for annual and interim
reporting periods beginning July 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after July 1, 2021,
including interim periods within those fiscal years. An entity that elects to early adopt the amendments in an interim period should reflect
any adjustments as of the beginning of the annual period that includes that interim period. The Company believes the adoption of this
new standard will not have a material impact on Company’s consolidated financial statements and related disclosures.
In October 2020, the FASB issued ASU 2020-08,
“Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this
Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by
eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods
beginning July 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis
as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change
the effective dates for Update 2017-08. The Company believes the adoption of this new standard will not have a material impact on Company’s
consolidated financial statements and related disclosures.
In October 2020, the FASB issued ASU 2020-10,
“Codification Improvements”. The amendments in this Update represent changes to clarify the Codification or correct unintended
application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative
cost to most entities. The amendments in this Update affect a wide variety of Topics in the Codification and apply to all reporting entities
within the scope of the affected accounting guidance. ASU 2020-10 is effective for annual periods beginning after July 1, 2021 for public
business entities. Early application is permitted. The amendments in this Update should be applied retrospectively. The Company believes
the adoption of this new standard will not have a material impact on Company’s consolidated financial statements and related disclosures.
The
Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material
effect on the Company’s consolidated financial statements.
Note
3. CRYPTOCURRENCIES
The
following table presents additional information about cryptocurrencies:
|
|
Amounts
|
|
Balance
at June 30, 2020
|
|
$
|
-
|
|
Receipt
of cryptocurrencies from mining services
|
|
|
261,338
|
|
Balance
at June 30, 2021
|
|
$
|
261,338
|
|
Note
4. ACCOUNTS RECEIVABLE, NET
The
Company’s net accounts receivable are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Trade
accounts receivable
|
|
$
|
3,589,011
|
|
|
$
|
3,453,439
|
|
Less:
allowances for doubtful accounts
|
|
|
(3,475,769
|
)
|
|
|
(2,297,491
|
)
|
Accounts
receivable, net
|
|
$
|
113,242
|
|
|
$
|
1,155,948
|
|
Movement
of allowance for doubtful accounts are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Beginning balance
|
|
$
|
2,297,491
|
|
|
$
|
5,670,274
|
|
Provision for doubtful accounts, net of recovery
|
|
|
1,030,895
|
|
|
|
4,896,640
|
|
Less: write-off
|
|
|
-
|
|
|
|
(8,220,754
|
)
|
Exchange rate effect
|
|
|
147,383
|
|
|
|
(48,669
|
)
|
Ending balance
|
|
$
|
3,475,769
|
|
|
$
|
2,297,491
|
|
For the years ended June 30, 2021 and 2020, the
provision for doubtful accounts was $1,033,407 and $4,996,606, respectively. The Company recovered $2,512 and $99,366 of accounts receivable
for the years ended June 30, 2021 and 2020, respectively. The Company wrote off nil and $8,220,754 of accounts receivable for the years
ended June 30, 2021 and 2020, respectively.
Note
5. OTHER RECEIVABLES, NET
The
Company’s other receivables are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Advances to customers*
|
|
$
|
6,025,670
|
|
|
$
|
10,004,893
|
|
Employee business advances
|
|
|
1,154
|
|
|
|
51,334
|
|
Total
|
|
|
6,026,824
|
|
|
|
10,056,227
|
|
Less: allowances for doubtful accounts
|
|
|
(6,024,266
|
)
|
|
|
(10,005,193
|
)
|
Other receivables, net – continuing operations
|
|
$
|
2,558
|
|
|
$
|
51,034
|
|
|
*
|
As of June 30, 2021 and 2020, the Company entered into certain contracts
with customers (state-owned entities) where the Company’s services included freight costs and cost of commodities to be shipped
to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of
its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired
or the contracts are terminated by the Company. As aforementioned customers were negatively impacted by the pandemic and required additional
time to execute existing contracts, they required additional time to pay. Due to significant uncertainty on whether the delayed contracts
will be executed timely. As such, the Company had provided an allowance due to contract delay and recorded allowances of approximately
$10.0 million for the year ended June 30, 2020. For the year ended June 30, 2021, the Company recovered $4,786,814 of the reserved amount.
|
Movement
of allowance for doubtful accounts are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Beginning balance
|
|
$
|
10,005,193
|
|
|
$
|
-
|
|
Provision (recovery) for doubtful accounts
|
|
|
(4,786,814
|
)
|
|
|
10,055,203
|
|
Less: write-off
|
|
|
(11,665
|
)
|
|
|
(1,763
|
)
|
Exchange rate effect
|
|
|
817,550
|
|
|
|
(48,247
|
)
|
Ending balance
|
|
$
|
6,024,266
|
|
|
$
|
10,005,193
|
|
For
the year ended June 30, 2021 and 2020, the provision for doubtful accounts of other receivables was nil and $10,055,203, respectively.
The Company recovered $4,786,814 and nil of other receivables for the years ended June 30, 2021 and 2020. For the years ended June 30,
2021 and 2020, the Company wrote off $11,665 and $1,763 of other receivables respectively.
Note
6. ADVANCES TO SUPPLIERS
The
Company’s advances to suppliers – third parties are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Freight fees (1)
|
|
$
|
880,000
|
|
|
$
|
48,875
|
|
|
(1)
|
The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from July to September 2021. On December 1, 2020, the Company entered into a freight logistics services and import contract with a third party for equipment import. Per contract term, the Company will act as their freight carriers and in charge the import matter of such equipment. The Company agreed to pay a deposit of $580,000 which is based on 20% of the total carrying value of equipment on behalf of customer to secure the equipment. The advance will be repaid to the Company when the contract is fulfilled in around December 2021
|
Note
7. PREPAID EXPENSES AND OTHER CURRENT ASSETS
The
Company’s prepaid expenses and other assets are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Prepaid
income taxes
|
|
$
|
11,929
|
|
|
$
|
48,924
|
|
Other
(including prepaid professional fees, rent, listing fees)
|
|
|
330,063
|
|
|
|
41,458
|
|
Total
|
|
$
|
341,992
|
|
|
$
|
90,382
|
|
Note 8. OTHER LONG-TERM ASSETS – DEPOSITS,
NET
The
Company’s other long-term assets – deposits are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Rental and utilities deposits
|
|
$
|
111,352
|
|
|
$
|
64,663
|
|
Freight logistics deposits (1)
|
|
|
3,181,746
|
|
|
|
2,910,327
|
|
Total other long-term assets - deposits
|
|
|
3,293,098
|
|
|
|
2,974,990
|
|
Less: allowances for deposits
|
|
|
(3,177,127
|
)
|
|
|
-
|
|
Other long-term assets- deposits, net
|
|
$
|
115,971
|
|
|
$
|
2,974,990
|
|
|
(1)
|
Certain customers require the Company to pay certain deposits for the
security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1
million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. according to the agreement entered in March 2018. This
refundable deposit is to cover any possible loss of merchandise, as well as any non-performance on the part of the Company and its vendors.
The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is
terminated by the Company. Due to impact of COVID-19 and recent rising freight costs, the Company has not been able to fulfill the contracts
and expect it may not be able to collect the full deposit, as such the Company provided full allowance for the $3.1 million deposit with
BaoSteel.
|
Movement
of allowance for deposits are as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Beginning balance
|
|
$
|
-
|
|
|
$
|
-
|
|
Allowance for deposits
|
|
|
3,098,852
|
|
|
|
-
|
|
Exchange rate effect
|
|
|
78,275
|
|
|
|
-
|
|
Ending balance
|
|
$
|
3,177,127
|
|
|
$
|
-
|
|
Note
9. PROPERTY AND EQUIPMENT, NET
The
Company’s net property and equipment as follows:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Buildings
|
|
$
|
|
|
|
$
|
190,518
|
|
Motor vehicles*
|
|
|
332,124
|
|
|
|
516,999
|
|
Computer equipment*
|
|
|
86,831
|
|
|
|
97,172
|
|
Office equipment*
|
|
|
34,747
|
|
|
|
43,587
|
|
Furniture and fixtures*
|
|
|
205,303
|
|
|
|
71,697
|
|
System software*
|
|
|
115,722
|
|
|
|
107,911
|
|
Leasehold improvements
|
|
|
860,626
|
|
|
|
786,745
|
|
Total
|
|
|
1,635,353
|
|
|
|
1,814,629
|
|
Less: Accumulated depreciation and amortization
|
|
|
(878,096
|
)
|
|
|
(1,291,339
|
)
|
Property and equipment, net
|
|
$
|
757,257
|
|
|
$
|
523,290
|
|
Depreciation
and amortization expenses for the years ended June 30, 2021 and 2020 were $406,553 and $320,737, respectively.
|
*
|
For the year ended June 30, 2021 and 2020, impairment of $855,230 and $127,177 was recorded due to continued decrease in revenues from the inland transportation management and container trucking segments and mining equipment which were not in use since June 2021 due to recent regulation change. In addition, the Company disposed of one vehicle resulting in a loss from disposal of $6,312.
|
Note
10. INTANGIBLE ASSETS, NET
Net
intangible assets consisted of the following:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Full
service logistics platforms
|
|
$
|
190,000
|
|
|
$
|
190,000
|
|
Less:
Accumulated amortization
|
|
|
(190,000
|
)
|
|
|
(163,611
|
)
|
Intangible
assets, net
|
|
$
|
-
|
|
|
$
|
26,389
|
|
The
full service logistics platform was placed in services in December 2017. The platforms are being amortized over three years. Amortization
expenses amounted to $26,389 and $81,557 for the years ended June 30, 2021 and 2020, respectively.
In
addition, first phase of the ERP system was placed in use in July 2019 and is being amortized over three years. However, due to the continued
decrease in revenues from the inland transportation management segment, the Company recorded an impairment of $200,455 for the year ended
June 30, 2020. No impairment was recorded for same period of 2021.
Note
11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Salary and reimbursement payable
|
|
$
|
407,118
|
|
|
$
|
795,855
|
|
Professional fees payable
|
|
|
64,118
|
|
|
|
629,524
|
|
Credit card payable
|
|
|
19,457
|
|
|
|
217,940
|
|
Others
|
|
|
39,084
|
|
|
|
-
|
|
Total
|
|
$
|
529,777
|
|
|
$
|
1,643,319
|
|
Note
12. LOANS PAYABLE
On
May 11, 2020, the Company received loan proceeds in the amount of approximately $124,570 under the U.S. Small Business Administration
(“SBA”) Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and
Economic Security Act (the “CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average
monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended
24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities,
and maintains its payroll levels. The loan forgiveness amount will be reduced for any Economic Injury Disaster Loan (“EIDL”)
advance that the Company receives. The amount of loan forgiveness will be further reduced if the borrower terminates employees or reduces
salaries during the eight-week period. On February 24, 2021, the full amount of PPP loan was forgiven and no principle or interest need
to be repaid, so the Company record such as a gain for the year ended June 30, 2021. As of June 30, 2021, none of PPP loan payable remains
outstanding.
On
May 26, 2020, the Company received an advance in the amount of $155,900 from under the SBA EIDL program administered by the SBA pursuant
to the CARES Act. Such advance amount will reduce the Company’s PPP loan forgiveness amount described above. In accordance with
the requirements of the CARES Act, the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic
injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter. The SBA loans are scheduled to mature
on May 22, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA
under the CARES Act. The monthly payable of $731, including principal and interest, commenced on May 22, 2021. The balance of principal
and interest will be payable 30 years from the date of May 22, 2020. $5,900 of the loan will be forgiven. As of June 30, 2021, $155,405
of loan payable remains outstanding. Interest expense for the year ended June 30, 2021 for this loan was $5,839.
Loan
repayment schedule for the EIDL loans is as follows:
Twelve
Months Ending June 30,
|
|
Loan
Amount
|
|
2022
|
|
$
|
3,035
|
|
2023
|
|
|
3,150
|
|
2024
|
|
|
3,271
|
|
2025
|
|
|
3,395
|
|
2026
|
|
|
3,525
|
|
Thereafter
|
|
|
139,029
|
|
Total
loan payments
|
|
$
|
155,405
|
|
Note
13. LEASES
The
Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified
as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the
lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset,
together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option
which result in an economic penalty. All of the Company’s leases are classified as operating leases.
The Company has several vehicle lease agreements and office lease agreements
with lease terms ranging from two to three years. Upon adoption of ASU 2016-02, the Company recognized lease liabilities of approximately
$0.3 million, with corresponding ROU assets of approximately the same amount based on the present value of the future minimum rental payments
of leases, using a weighted average discount rate of approximately 10.35%. As of June 30, 2021, ROU assets and lease liabilities amounted
to $417,570 and $430,000 (including $192,044 from lease liabilities current portion and $237,956 from lease liabilities noncurrent portion),
respectively and weighted average discount rate was approximately 10.35%.
The Company’s lease
agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain
options to extend at the time of expiration and the weighted average remaining lease terms are 3.31 years.
For
the years ended June 30, 2021 and 2020, rent expense amounted to approximately $310,000 and $284,000, respectively.
The
five-year maturity of the Company’s lease obligations is presented below:
Twelve Months Ending June 30,
|
|
Operating
Lease Amount
|
|
2022
|
|
$
|
226,798
|
|
2023
|
|
|
101,520
|
|
2024
|
|
|
82,235
|
|
2025
|
|
|
52,901
|
|
2026
|
|
|
45,227
|
|
Thereafter
|
|
|
-
|
|
Total lease payments
|
|
|
508,681
|
|
Less: Interest
|
|
|
(78,681
|
)
|
Present value of lease liabilities
|
|
$
|
430,000
|
|
Note
14. EQUITY
Stock
issuance:
On
November 13, 2019, the Company entered into a cooperation agreement with Shanming Liang, a director of Guangxi Jinqiao Industrial Group
Co., Ltd., to cooperate and expand the bulk cargo container services business. Shanming Liang agreed to purchase 200,000 shares of the
Company’s common stock at a purchase price of $5.00 per share for aggregate proceeds of $1.0 million. The Company and Mr. Liang
further entered into a Share Purchase Agreement on November 14, 2019 to memorialize the transaction aforementioned. Pursuant to the aforementioned
agreement, the Company received proceeds of $940,131 for fiscal year 2020. From July to September 2020, the Company received remaining
proceeds of $59,869. The full amount of subscription receivable has been paid off.
On December 9, 2019, the
Company authorized the cancellation of the 35,099 of the Company’s treasury shares. The shares were cancelled as of June 30, 2020.
The cancellation has no effect on the Company's total shareholders' equity and earnings per share.
After the close of the stock market on July 7,
2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its
common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders
and was intended to allow the company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ
Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five,
and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including
those that have resulted from the stock options, and warrants that convert to common stock.
On
September 17, 2020, the Company entered into certain securities purchase agreement with certain “non-U.S. Persons” as defined
in Regulation S of the Securities Act of 1933, as amended, pursuant to which the Company sold an aggregate of 720,000 shares of the Company’s
common stock, no par value, and warrants to purchase 720,000 Shares at a per share purchase price of $1.46. The net proceeds to the Company
from such offering were approximately $1.05 million. The warrants will be exercisable on March 16, 2021 at an exercise price of $1.825
for cash. The warrants may also be exercised cashlessly if at any time after March 16, 2021, there is no effective registration statement
registering, or no current prospectus available for, the resale of the warrant shares. The warrants will expire on March 16, 2026. The
warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain
a mandatory exercise right for the Company to force exercise the warrants if the Company’s common stock trades at or above $4.38
for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the are registered or may be
sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a
period of 20 consecutive trading days prior to the applicable date.
On
November 2 and November 3, 2020, the Company issued an aggregate of 860,000 shares of Series A Convertible Preferred Stock (the “Series
A Preferred Stock”), each convertible into one share of common stock, no par value, of Company, upon the terms and subject to the
limitations and considerations set forth in the Certificate of Designation of the Series A Preferred Stock, and warrants to purchase
up to 1,032,000 shares of common stock. The purchase price for each share of Series A Preferred Stock and accompanying warrants is $1.66.
The net proceeds to the Company from this offering was approximately $1.43 million, not including any proceeds that may be received upon
cash exercise of the warrants. The warrants will be exercisable six (6) months following the date of issuance at an exercise price of
$1.99 for cash. The warrants may also be exercised cashlessly if at any time after the six-month anniversary of the issuance date, there
is no effective registration statement registering, or no current prospectus available for, the resale of the warrant Shares. The warrants
will expire five and a half (5.5) years from the date of issuance. The warrants are subject to anti-dilution provisions to reflect stock
dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise
of the warrants if the closing price of the common stock equals or exceeds $5.97 for twenty (20) consecutive trading days, provided,
among other things, that the shares issuable upon exercise of the warrants are registered or may be sold pursuant to Rule 144 and the
daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading
days prior to the applicable date. In February 2021, the shareholders approved the preferred shareholders’ right to convert 860,000
shares of Series A Preferred Stock into 860,000 shares of common stock in the Company’s annual meeting of shareholders. As of June
30, 2021, the Series A Preferred Stock have been fully converted to common stock on a one-for-one basis.
On
December 8, 2020, the Company entered into a securities purchase agreement with the investors thereto pursuant to which the Company sold
to the investors, and the investors purchased from the Company, in a registered direct offering, an aggregate of 1,560,000 shares of
the common stock of the Company, no par value per share, at a purchase price of $3.10 per share, for aggregate gross proceeds to the
Company of $4,836,000. The Company also sold to the investors warrants to purchase up to an aggregate of 1,170,000 shares of common stock
at an exercise price of $3.10 per share. The warrants are initially exercisable beginning on December 11, 2020 and will expire three
and a half (3.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise
of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result
of future securities offerings at lower prices.
On
January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. investors thereto pursuant to which the
Company sold to the investors, and the investors purchased from the Company, an aggregate of 1,086,956 shares of common stock, no par
value, and warrants to purchase 5,434,780 shares. The net proceeds to the Company from such Offering were approximately $4.0 million.
The purchase price for each share of common stock and five warrants is $3.68, and the exercise price per warrant is $5.00. The Warrants
will be exercisable at any time during the period beginning on or after July 27, 2021 and ending on or prior on January 27, 2026 but
not thereafter; provided, however, that the total number of the Company’s issued and outstanding shares of Common Stock, multiplied
by the NASDAQ official closing bid price of the Common Stock shall equal or exceed $0.3 billion for a three consecutive month period
prior to an exercise.
On
February 6, 2021, the Company entered into a securities purchase agreement with the investors pursuant to which the Company sold to the
investors, and the investors purchased from the Company, in a registered direct offering, an aggregate of 1,998,500 shares of the common
stock of the Company, no par value per share, at a purchase price of $6.805 per share. Net proceeds to the Company from the sale of the
shares and the warrants, after deducting estimated offering expenses and placement agent fees, were approximately $12.4 million. The
Company also sold to the investors warrants to purchase up to an aggregate of 1,998,500 shares of common stock at an exercise price of
$6.805 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance.
The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event
of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices.
On
February 9, 2021, the Company entered into a securities purchase agreement with the investors pursuant to which the Company sold to the
investors, and the investors purchased from the Company, in a registered direct offering, an aggregate of 3,655,000 shares of the common
stock of the Company, no par value per share, at a purchase price of $7.80 per share. Net proceeds to the Company from the sale of the
shares and the warrants, after deducting estimated offering expenses and placement agent fees, were approximately $26.1 million. The
Company also sold to the investors warrants to purchase up to an aggregate of 3,655,000 shares of common stock at an exercise price of
$7.80 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance.
The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event
of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices.
For
the year ended June 30, 2021, the shareholders exercised warrants to purchase 1,791,666 shares of common stock, 1,532,869 shares are
issued of which 317,869 shares are exercised cashlessly, for aggregate net proceeds to the Company of approximately $4.8 million.
The
Company’s outstanding warrants are classified as equity since they qualify for exception from derivative accounting as they are
considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants were recorded
as additional paid-in capital from common stock
Following
is a summary of the status of warrants outstanding and exercisable as of June 30, 2021:
|
|
Warrants
|
|
|
Weighted
Average
Exercise
Price
|
|
Warrants
outstanding, as of June 30, 2020
|
|
|
400,000
|
|
|
$
|
8.75
|
|
Issued
|
|
|
14,010,280
|
|
|
|
5.44
|
|
Exercised
|
|
|
(1,791,666
|
)
|
|
|
3.41
|
|
Expired
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Warrants
outstanding, as of June 30, 2021
|
|
|
12,618,614
|
|
|
$
|
5.30
|
|
|
|
|
|
|
|
|
|
|
Warrants
exercisable, as of June 30, 2021
|
|
|
12,618,614
|
|
|
$
|
5.30
|
|
Warrants
Outstanding
|
|
Warrants
Exercisable
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Average
Remaining
Contractual
Life
|
|
2018
Series A, 400,000
|
|
|
363,334
|
|
|
$
|
8.75
|
|
|
2.21 years
|
|
2020
warrants, 2,922,000
|
|
|
1,447,000
|
|
|
$
|
2.15
|
|
|
4.17 years
|
|
2021
warrants, 11,088,280
|
|
|
10,808,280
|
|
|
$
|
6.23
|
|
|
4.93 years
|
|
Stock
based compensation:
In
March 2017, the Company entered into a consulting and advisory services agreement with a consulting entity, which provides management
consulting services that include marketing program design and implementation and cooperative partner selection and management. The service
period began in March 2017 and will end in February 2020. The Company issued 50,000 shares of common stock as remuneration for the services,
which were issued as restricted shares at $12.65 per share on March 22, 2017 to the consultant. These shares were valued at $632,500
and the consulting expense was $140,556 for the year ended June 30, 2020.
On
June 7, 2018, the Company issued 80,000 shares of common stock with a fair value of $508,000 to a consulting entity pursuant to a service
agreement. The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June
2020. The consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal installments. The Company
recorded compensation expense of $254,000 for the year ended June 30, 2020.
On
April 8, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting
and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during
the six months service period from April 8, 2019 to October 7, 2019. The Company issued 60,000 shares of common stock as remuneration
for the services, which were issued as restricted shares at $4.25 per share on April 16, 2019 to the consulting entity. These shares
were valued at $255,000. The Company recorded compensation expense of $127,500 for the year ended June 30, 2020.
On
July 1, 2019, the Company issued 120,000 restricted shares of common stock with a fair value of $432,000 to a China-based company that
specializes in the port agency business and/or its designees pursuant to a consulting service agreement. The scope of services primarily
covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not
satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded
compensation expense of $432,000 for the year ended June 30, 2020.
Included
in a Board resolution dated January 30, 2016, the Company’s CEO is authorized to grant to the employees up to one million shares
under the Company’s 2014 Stock Incentive Plan (the “Plan”). On July 22, 2019, the Company granted 18,000 shares of
restricted common stock valued at $3.50 per share on the grant date with an aggregated fair value of $63,000 under the Plan to one employee,
vesting immediately. The Company recorded compensation expense of $63,000 for the year ended June 30, 2020.
On
August 26, 2019, the Company issued 8,000 shares of common stock valued at $3.60 per share on the grant date with an aggregated fair
value of $28,800 to Chineseinvestors.com as settlement of a breach of service contract lawsuit. The Company recorded compensation expense
of $28,800 for the year ended June 30, 2020.
On
October 3, 2019, the Company issued 230,000 shares of common stock valued at $0.68 per share on the grant date with an aggregated fair
value of $156,400 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $156,400 for the
year ended June 30, 2020.
On
October 14, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting
and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during
the six months service period from October 14, 2019 to April 13, 2020. The Company issued 300,000 shares of common stock valued at $222,000
as remuneration for the services. The shares bear a standard restrictive legend under the Securities Act of 1933, as amended. The Company
recorded compensation expense of $222,000 for the year ended June 30, 2020.
On
June 30, 2020, the Company issued 50,000 shares of common stock valued at $3.05 per share on the grant date with a fair value of $152,500
under the 2014 Stock Incentive Plan to two employees, vesting immediately. The Company recorded compensation expense of $152,500 for
the year ended June 30, 2020.
During
the years ended June 30, 2021 and 2020, nil and $1,576,756 were recorded as stock-based compensation expense, respectively.
Stock
Options:
A
summary of the outstanding options is presented in the table below:
|
|
Options
|
|
|
Weighted
Average
Exercise
Price
|
|
Options
outstanding, as of June 30, 2020
|
|
|
17,000
|
|
|
$
|
6.05
|
|
Granted
|
|
|
-
|
|
|
|
-
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
Cancelled,
forfeited or expired
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Options
outstanding, as of June 30, 2021
|
|
|
17,000
|
|
|
$
|
6.05
|
|
|
|
|
|
|
|
|
|
|
Options
exercisable, as of June 30, 2021
|
|
|
17,000
|
|
|
$
|
6.05
|
|
Following
is a summary of the status of options outstanding and exercisable at June 30, 2021:
Outstanding
Options
|
|
Exercisable
Options
|
|
Exercise
Price
|
|
|
Number
|
|
|
Average
Remaining
Contractual
Life
|
|
Average
Exercise Price
|
|
|
Number
|
|
|
Average
Remaining
Contractual
Life
|
|
$
|
10.05
|
|
|
|
2,000
|
|
|
1.59 years
|
|
$
|
10.05
|
|
|
|
2,000
|
|
|
1.59 years
|
|
$
|
5.50
|
|
|
|
15,000
|
|
|
0.07 years
|
|
$
|
5.50
|
|
|
|
15,000
|
|
|
0.07 years
|
|
|
|
|
|
|
17,000
|
|
|
|
|
|
|
|
|
|
17,000
|
|
|
|
|
Note
15. NON-CONTROLLING INTEREST
The
Company’s non-controlling interest consists of the following:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Sino-China:
|
|
|
|
|
|
|
Original paid-in capital
|
|
$
|
356,400
|
|
|
$
|
356,400
|
|
Additional paid-in capital
|
|
|
1,044
|
|
|
|
1,044
|
|
Accumulated other comprehensive income
|
|
|
14,790
|
|
|
|
376,398
|
|
Accumulated deficit
|
|
|
(6,266,337
|
)
|
|
|
(6,199,188
|
)
|
|
|
|
(5,894,103
|
)
|
|
|
(5,465,346
|
)
|
Trans Pacific Logistics Shanghai Ltd.
|
|
|
(1,029,806
|
)
|
|
|
(1,077,015
|
)
|
Brilliant Warehouse Service, Inc.
|
|
|
(27,225
|
)
|
|
|
-
|
|
Total
|
|
$
|
(6,951,134
|
)
|
|
$
|
(6,542,361
|
)
|
Note
16. COMMITMENTS AND CONTINGENCIES
Contingencies
The
Labor Contract Law of the PRC requires employers to insure the liability of the severance payments for terminated employees that have
worked for the employers for at least two years prior to January 1, 2008. The employers will be liable for one month for severance pay
for each year of the service provided by the employees. As of June 30, 2021 and 2020, the Company has estimated its severance payments
of approximately $107,000 and $84,000, respectively, which have not been reflected in its consolidated financial statements, because
management cannot predict what the actual payment, if any, will be in the future.
Sino-Global
has employment agreements with each of Mr. Lei Cao, Ms. Tuo Pan and Mr. Zhikang Huang. These employment agreements provide for five-year
terms that extend automatically in the absence of termination notice provided at least 60 days prior to the anniversary date of the agreement.
If the Company fails to provide this notice or if the Company wishes to terminate an employment agreement in the absence of cause, then
the Company is obligated to provide at least 30 days’ prior notice. In such case during the initial term of the agreement, the
Company would need to pay such executive (i) the remaining salary through the date of December 31, 2023, (ii) two times of the then applicable
annual salary if there has been no change in control, as defined in the employment agreements or three-and-half times of the then applicable
annual salary if there is a change in control.
Note
17. INCOME TAXES
On
March 27, 2020, the CARES Act was enacted and signed into law and includes, among other things, refundable payroll tax credits, deferment
of employer side social security payments, net operating loss carryback periods and alternative minimum tax credit refunds. The Company
does not at present expect the provisions of the CARES Act to have a material impact on its tax provision given the amount of net operating
losses currently available.
The
Company’s income tax expenses for the years ended June 30, 2021 and 2020 are as follows:
|
|
For
the Years Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Current
|
|
|
|
|
|
|
U.S.
|
|
$
|
(3,450
|
)
|
|
$
|
-
|
|
PRC
|
|
|
-
|
|
|
|
(186,021
|
)
|
Total
income tax expense
|
|
$
|
(3,450
|
)
|
|
$
|
(186,021
|
)
|
Income
tax expense for the years ended June 30, 2021 and 2020 varied from the amount computed by applying the statutory income tax rate to income
before taxes. Reconciliations between the expected federal income tax rates using 21% for the year ended June 30, 2021 and 2020 to the
Company’s effective tax rate are as follows:
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
|
%
|
|
|
%
|
|
US
Statutory tax rate
|
|
$
|
21.0
|
|
|
$
|
21.0
|
|
Permanent
difference*
|
|
|
0.1
|
|
|
|
0.4
|
|
Change
in valuation allowance
|
|
|
(20.3
|
)
|
|
|
(21.4
|
)
|
Rate
differential in foreign jurisdiction
|
|
|
(0.9
|
)
|
|
|
(1.0
|
)
|
|
|
$
|
(0.1
|
)
|
|
$
|
(1.0
|
)
|
|
*
|
Permanent difference includes non-deductible expenses.
|
The
Company’s deferred tax assets are comprised of the following:
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
Allowance
for doubtful accounts
|
|
|
|
|
|
|
U.S.
|
|
$
|
1,706,000
|
|
|
$
|
1,329,000
|
|
PRC
|
|
|
2,718,000
|
|
|
|
2,888,000
|
|
|
|
|
|
|
|
|
|
|
Net
operating loss
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
3,422,000
|
|
|
|
1,756,000
|
|
PRC
|
|
|
1,507,000
|
|
|
|
1,490,000
|
|
Total
deferred tax assets
|
|
|
9,353,000
|
|
|
|
7,463,000
|
|
Valuation
allowance
|
|
|
(9,353,000
|
)
|
|
|
(7,463,000
|
)
|
Deferred
tax assets, net - long-term
|
|
$
|
-
|
|
|
$
|
-
|
|
The
Company’s operations in the U.S. incurred a cumulative U.S. federal net operating loss (“NOL”) of approximately $6,456,000
as of June 30, 2020 which may reduce future federal taxable income. During the year ended June 30, 2021, approximately $6,087,000 of
additional NOL was generated and the tax benefit derived from such NOL was approximately $1,278,000, respectively. As of June 30, 2021,
the Company’s cumulative NOL amounted to approximately $12,543,000 which may reduce future federal taxable income, of which approximately
$1,400,000 will expire in 2037 and the remaining balance carried forward indefinitely.
The
Company’s operations in China incurred a cumulative NOL of approximately $5,961,000 as of June 30, 2020 which may reduce future
taxable income. During the year ended June 30, 2021, approximately $65,000 of additional NOL was generated and the tax benefit derived
from such NOL was approximately $16,000, respectively. As of June 30, 2021, the Company’s cumulative NOL amounted to approximately
$6,026,000 which may reduce future taxable income, of which approximately $700,000 start expiring from 2023 and the remaining balance
of NOL will be expired by 2026.
The
Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred
tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both
positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative
earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant
factors. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future
earnings as a result of the deterioration of trade negotiation between US and China and the outbreak of COVID-19 in 2021. The Company
provided a 100% allowance for its DTA as of June 30, 2021. The net increase in valuation for the year ended June 30, 2021 amounted to
approximately $1,890,000 based on management’s reassessment of the amount of the Company’s deferred tax assets that are more
likely than not to be realized.
The
Company’s taxes payable consists of the following:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
VAT
tax payable
|
|
$
|
1,126,489
|
|
|
$
|
1,037,620
|
|
Corporate
income tax payable
|
|
|
2,377,589
|
|
|
|
2,180,727
|
|
Others
|
|
|
68,341
|
|
|
|
62,001
|
|
Total
|
|
$
|
3,572,419
|
|
|
$
|
3,280,348
|
|
Note 18.
CONCENTRATIONS
Major
Customers
For the year ended June 30, 2021, one customer accounted
for approximately 89.7% of the Company’s revenues. As of June 30, 2021, one customer accounted for approximately 87.6% of the
Company’s accounts receivable, net.
For
the year ended June 30, 2020, three customers accounted for approximately 42%, 23% and 22% of the Company’s revenues, respectively.
As of June 30, 2020, one customer accounted for approximately 87% of the Company’s accounts receivable, net.
Major
Suppliers
For
the year ended June 30, 2021, two suppliers accounted for approximately 55.4% and 28.6% of the total costs of revenue, respectively.
For
the year ended June 30, 2020, three suppliers accounted for approximately 26%, 18% and 16% of the total costs of revenue, respectively.
Note 19.
SEGMENT REPORTING
ASC
280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent
with the Company’s internal organizational structure as well as information about geographical areas, business segments and major
customers in consolidated financial statements for detailing the Company’s business segments.
The
Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate
operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined
that it has three operating segments: (1) shipping agency and management services; (2) freight logistics services and (3) container trucking
services.
The
following tables present summary information by segment for the years ended June 30, 2021 and 2020, respectively:
|
|
For
the Year Ended June 30, 2021
|
|
|
|
Shipping
Agency and
Management
Services
|
|
|
Freight
Logistics
Services
|
|
|
Container
Trucking
Services
|
|
|
Total
|
|
Net revenues
|
|
$
|
206,845
|
|
|
$
|
4,944,187
|
|
|
$
|
-
|
|
|
$
|
5,151,032
|
|
Cost of revenues
|
|
$
|
176,968
|
|
|
$
|
4,797,427
|
|
|
$
|
-
|
|
|
$
|
4,974,394
|
|
Gross profit
|
|
$
|
29,878
|
|
|
$
|
146,760
|
|
|
$
|
-
|
|
|
$
|
176,638
|
|
Depreciation and amortization
|
|
$
|
299,934
|
|
|
$
|
36,300
|
|
|
$
|
-
|
|
|
$
|
336,234
|
|
Total capital expenditures
|
|
$
|
136,076
|
|
|
$
|
407,954
|
|
|
$
|
-
|
|
|
$
|
544,030
|
|
Gross margin%
|
|
|
14.4
|
%
|
|
|
3.0
|
%
|
|
|
-
|
%
|
|
|
3.4
|
%
|
|
|
For
the Year Ended June 30, 2020
|
|
|
|
Shipping
Agency and
Management
Services
|
|
|
Freight
Logistics
Services
|
|
|
Container
Trucking
Services
|
|
|
Total
|
|
Net
revenues
|
|
$
|
2,105,651
|
|
|
$
|
4,368,596
|
*
|
|
$
|
61,709
|
|
|
$
|
6,535,956
|
|
Cost
of revenues
|
|
$
|
827,690
|
|
|
$
|
2,795,859
|
*
|
|
$
|
55,314
|
|
|
$
|
3,678,863
|
|
Gross
profit
|
|
$
|
1,277,961
|
|
|
$
|
1,572,737
|
|
|
$
|
6,395
|
|
|
$
|
2,857,093
|
|
Depreciation
and amortization
|
|
$
|
340,421
|
|
|
$
|
7,684
|
|
|
$
|
54,189
|
|
|
$
|
402,294
|
|
Total
capital expenditures
|
|
$
|
6,984
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
6,984
|
|
Gross
margin%
|
|
|
60.7
|
%
|
|
|
36.0
|
%
|
|
|
10.4
|
%
|
|
|
43.7
|
%
|
|
*
|
For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the year ended June 30, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $25.8 million and $24.3 million, respectively. There was no such transaction for the year ended June 30, 2021.
|
Total
assets as of:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Shipping Agency and Management Services
|
|
$
|
47,347,418
|
|
|
$
|
2,531,074
|
|
Freight Logistic Services
|
|
|
5,453,848
|
|
|
|
3,176,165
|
|
Container Trucking Services
|
|
|
1,851
|
|
|
|
30,863
|
|
Total Assets
|
|
$
|
52,803,117
|
|
|
$
|
5,738,102
|
|
The
Company’s operations are primarily based in the PRC and U.S, where the Company derives all of their revenues. Management also review
consolidated financial results by business locations.
Disaggregated
information of revenues by geographic locations are as follows:
|
|
For
the Years Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
PRC
|
|
|
4,921,022
|
|
|
|
4,368,596
|
|
U.S.
|
|
|
230,010
|
|
|
|
2,167,360
|
|
Total
revenues
|
|
$
|
5,151,032
|
|
|
$
|
6,535,956
|
|
Note
20. RELATED PARTY BALANCE AND TRANSACTIONS
Due
from related party, net
As
of June 30, 2021 and 2020, the outstanding amounts due from related parties consist of the following:
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Tianjin Zhiyuan Investment Group Co., Ltd. (1)
|
|
$
|
384,331
|
|
|
$
|
484,331
|
|
Zhejiang Jinbang Fuel Energy Co., Ltd (2)
|
|
|
430,902
|
|
|
|
-
|
|
Less: allowance for doubtful accounts
|
|
|
(384,331
|
)
|
|
|
(48,433
|
)
|
Total
|
|
$
|
430,902
|
|
|
$
|
435,898
|
|
(1) In June 2013, the Company signed a five-year
global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (“Zhiyuan Investment Group”) and TEWOO Chemical&
Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, “Zhiyuan”). Zhiyuan Investment Group is owned
by Mr. Zhong Zhang. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment
Group whereby it would provide certain advisory services and help control potential commodities loss during the transportation process.
Starting
in late 2020, Mr, Zhang started selling off his shares of the Company and does not own shares of the Company as of June 30, 2021 and
no longer a related party. Management’s reassessed the collectability and decided to make additional $345,898 allowance for doubtful
accounts as of June 30, 2021. For the years ended June 30, 2021 and 2020, the Company recovered $10,000 and $41,341, respectively, of
allowance for doubtful accounts of the amount due from Zhiyuan.
(2) The Company advanced Zhejiang Jinbang Fuel
Energy Co., Ltd (“Zhejiang Jinbang”) $477,278 and Zhejiang Jinbang return $46,376 for the year ended June 30, 2021. The rest
of the advance is non interest bearing and due on demand.
Loan
receivable- related parties
On
June 10, 2021, the Company entered a loan agreement with Wang Qinggang, CEO and legal representative of Trans Pacific Logistic Shanghai
Ltd. The loan amounted to $619,329 (RMB 4 million) and will be repaid in June 2023.
On April 10, 2021, the Company entered into a
loan agreement with Shanghai Baoyin Industrial Co., Ltd. which is 30% owned by Wang Qinggang. The loan amounted to $4,644,969 (RMB 30,000,000
million). $619,329 (RMB 4,000,000) has been repaid as of June 30, 2021 and the rest of the loan $4,025,640 (RMB 26,000,000) is to be repaid
in April 2023. The loan is unsecured and non-interest bearing.
As of June 30, 2021, the Company had payable to
the CEO of $11,303 and to the acting CFO of $2,516 which were included in other payable. As of June 30, 2020, the Company had payable
to the CEO of $6,279 and to the Acting CFO of $26,570 which were included in other payable. These payments were made on behalf of the
Company for the daily business operational activities.
Note
21. SUBSEQUENT EVENTS
In
July 2021, the company registered a new company Gorgeous Trading Ltd. Which is 100% owned by Sino-Global Shipping New York Inc. This
company will be mainly responsible for the Company’s smart warehouse and related business in Texas.
By
action taken as of August 13, 2021, the Board of Directors (the “Board”) of Sino-Global Shipping America, Ltd. (the “Company”)
and the Compensation Committee of the Board (the “Committee”) approved a one-time award of a total of 1,020,000 of the common
stock from the shares reserved under the Company’s 2014 Stock Incentive Plan (the “Plan”) to (i) Chief Executive Officer,
Lei Cao, is entitled to a one-time stock award grant of 600,000 shares, (ii) acting Chief Financial Officer, Tuo Pan, is entitled to
a one-time stock award grant of 200,000 shares, (iii) Board member, Zhikang Huang, is entitled to a one-time stock award grant of 160,000
shares, (iv) Board member, Jing Wang, is entitled to a one-time stock award grant of 20,000 shares, (v) Board member, Xiaohuan Huang,
is entitled to a one-time stock award grant of 20,000 shares, and (vi) Board member, Tieliang Liu, is entitled to a one-time stock award
grant of 20,000 shares. Fair value of these grants at grant date was approximately $3.0 million.
On August 31, 2021, the company formed a joint venture,
Phi Electric Motor, Inc. in New York, which is 51% owned by Sino-Global Shipping New York Inc.
F-30
As of June 30, 2021 and 2020, the Company entered into certain contracts with customers (state-owned entities) where the Company’s services included freight costs and cost of commodities to be shipped to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. As aforementioned customers were negatively impacted by the pandemic and required additional time to execute existing contracts, they required additional time to pay. Due to significant uncertainty on whether the delayed contracts will be executed timely. As such, the Company had provided an allowance due to contract delay and recorded allowances of approximately $10.0 million for the year ended June 30, 2020. For the year ended June 30, 2021, the Company recovered $4,786,814 of the reserved amount.
The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from July to September 2021.
Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. according to the agreement entered in March 2018. This refundable deposit is to cover any possible loss of merchandise, as well as any non-performance on the part of the Company and its vendors. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company. Due to impact of COVID-19 and recent rising freight costs, the Company has not been able to fulfill the contracts and expect it may not be able to collect the full deposit, as such the Company provided full allowance for the $3.1 million deposit with BaoSteel.
For the year ended June 30, 2021 and 2020, impairment of $855,230 and $127,177 was recorded due to continued decrease in revenues from the inland transportation management and container trucking segments and mining equipment which were not in use since June 2021 due to recent regulation change. In addition, the Company disposed of one vehicle resulting in a loss from disposal of $6,312.
For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the year ended June 30, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $25.8 million and $24.3 million, respectively. There was no such transaction for the year ended June 30, 2021.
false
FY
0001422892
0001422892
2020-07-01
2021-06-30
0001422892
2021-09-28
0001422892
2020-12-31
0001422892
2021-06-30
0001422892
2020-06-30
0001422892
2019-07-01
2020-06-30
0001422892
us-gaap:PreferredStockMember
2019-06-30
0001422892
us-gaap:CommonStockMember
2019-06-30
0001422892
us-gaap:AdditionalPaidInCapitalMember
2019-06-30
0001422892
us-gaap:TreasuryStockMember
2019-06-30
0001422892
us-gaap:ReceivablesFromStockholderMember
2019-06-30
0001422892
us-gaap:RetainedEarningsMember
2019-06-30
0001422892
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-06-30
0001422892
us-gaap:NoncontrollingInterestMember
2019-06-30
0001422892
2019-06-30
0001422892
us-gaap:PreferredStockMember
2019-07-01
2020-06-30
0001422892
us-gaap:CommonStockMember
2019-07-01
2020-06-30
0001422892
us-gaap:AdditionalPaidInCapitalMember
2019-07-01
2020-06-30
0001422892
us-gaap:TreasuryStockMember
2019-07-01
2020-06-30
0001422892
us-gaap:ReceivablesFromStockholderMember
2019-07-01
2020-06-30
0001422892
us-gaap:RetainedEarningsMember
2019-07-01
2020-06-30
0001422892
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-07-01
2020-06-30
0001422892
us-gaap:NoncontrollingInterestMember
2019-07-01
2020-06-30
0001422892
us-gaap:PreferredStockMember
2020-06-30
0001422892
us-gaap:CommonStockMember
2020-06-30
0001422892
us-gaap:AdditionalPaidInCapitalMember
2020-06-30
0001422892
us-gaap:TreasuryStockMember
2020-06-30
0001422892
us-gaap:ReceivablesFromStockholderMember
2020-06-30
0001422892
us-gaap:RetainedEarningsMember
2020-06-30
0001422892
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-06-30
0001422892
us-gaap:NoncontrollingInterestMember
2020-06-30
0001422892
us-gaap:PreferredStockMember
2020-07-01
2021-06-30
0001422892
us-gaap:CommonStockMember
2020-07-01
2021-06-30
0001422892
us-gaap:AdditionalPaidInCapitalMember
2020-07-01
2021-06-30
0001422892
us-gaap:TreasuryStockMember
2020-07-01
2021-06-30
0001422892
us-gaap:ReceivablesFromStockholderMember
2020-07-01
2021-06-30
0001422892
us-gaap:RetainedEarningsMember
2020-07-01
2021-06-30
0001422892
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-07-01
2021-06-30
0001422892
us-gaap:NoncontrollingInterestMember
2020-07-01
2021-06-30
0001422892
us-gaap:PreferredStockMember
2021-06-30
0001422892
us-gaap:CommonStockMember
2021-06-30
0001422892
us-gaap:AdditionalPaidInCapitalMember
2021-06-30
0001422892
us-gaap:TreasuryStockMember
2021-06-30
0001422892
us-gaap:ReceivablesFromStockholderMember
2021-06-30
0001422892
us-gaap:RetainedEarningsMember
2021-06-30
0001422892
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2021-06-30
0001422892
us-gaap:NoncontrollingInterestMember
2021-06-30
0001422892
stpr:NY
srt:ChiefExecutiveOfficerMember
2019-04-01
2019-04-10
0001422892
sino:MrWeijunQinMember
srt:MinimumMember
2019-07-26
0001422892
sino:MrWeijunQinMember
srt:MaximumMember
2019-07-26
0001422892
sino:MrWeijunQinMember
2019-11-06
0001422892
sino:MrWeijunQinMember
stpr:NY
2019-11-06
0001422892
sino:MrShanmingLiangMember
stpr:NY
2020-01-10
0001422892
country:HK
2020-07-31
0001422892
sino:BlumargoITSolutionLtdMember
2020-12-14
0001422892
sino:YanghuaiMember
2021-03-01
2021-03-02
0001422892
2021-03-01
2021-03-02
0001422892
2021-03-24
0001422892
2021-04-13
0001422892
sino:BrilliantWarehouseServiceIncMember
2021-04-21
0001422892
country:CN
2021-06-30
0001422892
country:CN
2020-06-30
0001422892
country:US
2021-06-30
0001422892
country:US
2020-06-30
0001422892
country:HK
2021-06-30
0001422892
country:HK
2020-06-30
0001422892
country:AU
2021-06-30
0001422892
country:AU
2020-06-30
0001422892
sino:SinoChinaMember
2021-06-30
0001422892
sino:SinoChinaMember
2020-06-30
0001422892
sino:BalanceSheetMember
currency:CNY
2021-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:CNY
2021-06-30
0001422892
sino:BalanceSheetMember
currency:CNY
2020-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:CNY
2020-06-30
0001422892
sino:BalanceSheetMember
currency:AUD
2021-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:AUD
2021-06-30
0001422892
sino:BalanceSheetMember
currency:AUD
2020-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:AUD
2020-06-30
0001422892
sino:BalanceSheetMember
currency:HKD
2021-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:HKD
2021-06-30
0001422892
sino:BalanceSheetMember
currency:HKD
2020-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:HKD
2020-06-30
0001422892
sino:BalanceSheetMember
currency:CAD
2021-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:CAD
2021-06-30
0001422892
sino:BalanceSheetMember
currency:CAD
2020-06-30
0001422892
us-gaap:ForeignCurrencyGainLossMember
currency:CAD
2020-06-30
0001422892
us-gaap:BuildingMember
2020-07-01
2021-06-30
0001422892
srt:MinimumMember
us-gaap:VehiclesMember
2020-07-01
2021-06-30
0001422892
srt:MaximumMember
us-gaap:VehiclesMember
2020-07-01
2021-06-30
0001422892
srt:MinimumMember
us-gaap:OfficeEquipmentMember
2020-07-01
2021-06-30
0001422892
srt:MaximumMember
us-gaap:OfficeEquipmentMember
2020-07-01
2021-06-30
0001422892
srt:MinimumMember
us-gaap:FurnitureAndFixturesMember
2020-07-01
2021-06-30
0001422892
srt:MaximumMember
us-gaap:FurnitureAndFixturesMember
2020-07-01
2021-06-30
0001422892
us-gaap:SoftwareDevelopmentMember
2020-07-01
2021-06-30
0001422892
us-gaap:LeaseholdImprovementsMember
2020-07-01
2021-06-30
0001422892
us-gaap:MiningPropertiesAndMineralRightsMember
2020-07-01
2021-06-30
0001422892
sino:LogisticsplatformMember
2020-07-01
2021-06-30
0001422892
country:CN
2020-07-01
2021-06-30
0001422892
country:CN
2019-07-01
2020-06-30
0001422892
country:US
2020-07-01
2021-06-30
0001422892
country:US
2019-07-01
2020-06-30
0001422892
2020-12-01
0001422892
2020-11-25
2020-12-01
0001422892
us-gaap:VehiclesMember
2020-07-01
2021-06-30
0001422892
us-gaap:BuildingMember
2020-06-30
0001422892
us-gaap:VehiclesMember
2021-06-30
0001422892
us-gaap:VehiclesMember
2020-06-30
0001422892
us-gaap:ComputerEquipmentMember
2021-06-30
0001422892
us-gaap:ComputerEquipmentMember
2020-06-30
0001422892
us-gaap:OfficeEquipmentMember
2021-06-30
0001422892
us-gaap:OfficeEquipmentMember
2020-06-30
0001422892
us-gaap:FurnitureAndFixturesMember
2021-06-30
0001422892
us-gaap:FurnitureAndFixturesMember
2020-06-30
0001422892
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2021-06-30
0001422892
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2020-06-30
0001422892
us-gaap:LandAndLandImprovementsMember
2021-06-30
0001422892
us-gaap:LandAndLandImprovementsMember
2020-06-30
0001422892
2020-05-01
2020-05-11
0001422892
2020-05-01
2020-05-26
0001422892
srt:MinimumMember
2021-06-30
0001422892
srt:MaximumMember
2021-06-30
0001422892
sino:CooperationAgreementMember
2019-11-01
2019-11-13
0001422892
sino:CooperationAgreementMember
2019-11-13
0001422892
sino:CooperationAgreementMember
2019-07-01
2020-06-30
0001422892
sino:CooperationAgreementMember
2020-07-01
2020-09-30
0001422892
2019-12-01
2019-12-09
0001422892
2020-06-20
2020-07-07
0001422892
sino:SecuritiesPurchaseAgreementsMember
2020-09-02
2020-09-17
0001422892
us-gaap:WarrantMember
2020-09-02
2020-09-17
0001422892
us-gaap:WarrantMember
2020-09-17
0001422892
us-gaap:WarrantMember
2021-03-16
0001422892
us-gaap:SeriesAPreferredStockMember
2020-11-02
0001422892
us-gaap:SeriesAPreferredStockMember
2020-11-03
0001422892
2020-11-03
0001422892
2020-11-02
2020-11-03
0001422892
us-gaap:SeriesAPreferredStockMember
2021-02-15
2021-02-28
0001422892
us-gaap:CommonStockMember
2021-02-15
2021-02-28
0001422892
2020-11-29
2020-12-08
0001422892
2020-12-08
0001422892
sino:SecuritiesPurchaseAgreementsMember
2020-11-29
2020-12-08
0001422892
2021-01-20
2021-01-27
0001422892
us-gaap:WarrantMember
2021-01-20
2021-01-27
0001422892
2021-01-27
0001422892
2021-02-01
2021-02-06
0001422892
2021-02-06
0001422892
us-gaap:WarrantMember
2021-02-01
2021-02-06
0001422892
2021-02-01
2021-02-09
0001422892
2021-02-09
0001422892
us-gaap:WarrantMember
2021-02-01
2021-02-09
0001422892
us-gaap:CommonStockMember
us-gaap:WarrantMember
2021-06-30
0001422892
us-gaap:WarrantMember
2020-07-01
2021-06-30
0001422892
sino:ConsultantsMember
2017-03-01
2017-03-31
0001422892
sino:ConsultantsMember
2017-03-22
0001422892
sino:ConsultantsMember
2019-07-01
2020-06-30
0001422892
us-gaap:ServiceAgreementsMember
2018-06-07
0001422892
us-gaap:ServiceAgreementsMember
2018-06-02
2018-06-07
0001422892
us-gaap:ServiceAgreementsMember
2019-07-01
2020-06-30
0001422892
sino:ConsultingServicesAgreementMember
2019-04-02
2019-04-08
0001422892
sino:ConsultingServicesAgreementMember
2019-07-01
2020-06-30
0001422892
us-gaap:RestrictedStockMember
2019-06-15
2019-07-02
0001422892
2019-06-15
2019-07-02
0001422892
us-gaap:RestrictedStockMember
2019-07-01
2020-06-30
0001422892
2016-01-01
2016-01-30
0001422892
us-gaap:RestrictedStockMember
2019-07-05
2019-07-22
0001422892
us-gaap:RestrictedStockMember
2019-07-22
0001422892
srt:ChiefExecutiveOfficerMember
2019-07-01
2020-06-30
0001422892
sino:ServiceContractMember
2019-08-26
0001422892
sino:ServiceContractMember
2019-08-01
2019-08-26
0001422892
sino:ServiceContractMember
2019-07-01
2020-06-30
0001422892
sino:SecuritiesPurchaseAgreementsMember
2019-10-02
2019-10-03
0001422892
us-gaap:WarrantMember
2019-10-02
2019-10-03
0001422892
us-gaap:WarrantMember
2019-10-03
0001422892
us-gaap:WarrantMember
2019-07-01
2020-06-30
0001422892
us-gaap:ServiceAgreementsMember
2019-10-02
2019-10-14
0001422892
us-gaap:ServiceAgreementsMember
sino:ConsultingAndAdvisoryServicesMember
2019-07-01
2020-06-30
0001422892
sino:StockIncentivePlanMember
2020-06-30
0001422892
sino:StockIncentivePlanMember
2020-06-01
2020-06-30
0001422892
sino:StockIncentivePlanMember
2019-07-01
2020-06-30
0001422892
us-gaap:WarrantMember
2020-06-30
0001422892
us-gaap:WarrantMember
2021-06-30
0001422892
us-gaap:SeriesAMember
2020-07-01
2021-06-30
0001422892
sino:WarrantsOneMember
2020-07-01
2021-06-30
0001422892
sino:WarrantsTwoMember
2020-07-01
2021-06-30
0001422892
sino:SharebasedPaymentArrangementOptionsMember
2020-06-30
0001422892
sino:SharebasedPaymentArrangementOptionsMember
2020-07-01
2021-06-30
0001422892
sino:SharebasedPaymentArrangementOptionsMember
2021-06-30
0001422892
us-gaap:EmployeeStockOptionMember
sino:ExercisePriceRangeOneMember
2021-06-30
0001422892
us-gaap:EmployeeStockOptionMember
sino:ExercisePriceRangeOneMember
2020-07-01
2021-06-30
0001422892
us-gaap:EmployeeStockOptionMember
sino:ExercisePriceRangeTwoMember
2021-06-30
0001422892
us-gaap:EmployeeStockOptionMember
sino:ExercisePriceRangeTwoMember
2020-07-01
2021-06-30
0001422892
us-gaap:EmployeeStockOptionMember
2021-06-30
0001422892
sino:SinoChinaMember
us-gaap:NoncontrollingInterestMember
2021-06-30
0001422892
sino:SinoChinaMember
us-gaap:NoncontrollingInterestMember
2020-06-30
0001422892
sino:TransPacificLogisticsShanghaiLtdMember
us-gaap:NoncontrollingInterestMember
2021-06-30
0001422892
sino:TransPacificLogisticsShanghaiLtdMember
us-gaap:NoncontrollingInterestMember
2020-06-30
0001422892
sino:BrilliantWarehouseServiceIncMember
us-gaap:NoncontrollingInterestMember
2021-06-30
0001422892
sino:BrilliantWarehouseServiceIncMember
us-gaap:NoncontrollingInterestMember
2020-06-30
0001422892
sino:SinoChinaMember
2021-06-30
0001422892
sino:SinoChinaMember
2020-06-30
0001422892
us-gaap:NewYorkStateDivisionOfTaxationAndFinanceMember
2020-06-30
0001422892
us-gaap:NewYorkStateDivisionOfTaxationAndFinanceMember
2020-07-01
2021-06-30
0001422892
us-gaap:NewYorkStateDivisionOfTaxationAndFinanceMember
2021-06-30
0001422892
us-gaap:StateAdministrationOfTaxationChinaMember
2020-06-30
0001422892
us-gaap:StateAdministrationOfTaxationChinaMember
2020-07-01
2021-06-30
0001422892
us-gaap:StateAdministrationOfTaxationChinaMember
2021-06-30
0001422892
us-gaap:NewYorkStateDivisionOfTaxationAndFinanceMember
2019-07-01
2020-06-30
0001422892
us-gaap:StateAdministrationOfTaxationChinaMember
2019-07-01
2020-06-30
0001422892
us-gaap:SalesRevenueNetMember
2020-07-01
2021-06-30
0001422892
sino:MajorCustomerOneMember
us-gaap:SalesRevenueNetMember
2020-07-01
2021-06-30
0001422892
us-gaap:AccountsReceivableMember
2020-07-01
2021-06-30
0001422892
sino:MajorCustomerOneMember
us-gaap:AccountsReceivableMember
2020-07-01
2021-06-30
0001422892
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
sino:MajorCustomerOneMember
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
sino:MajorCustomerTwoMember
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
sino:MajorCustomerThreeMember
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
us-gaap:AccountsReceivableMember
2019-07-01
2020-06-30
0001422892
sino:MajorCustomerOneMember
us-gaap:AccountsReceivableMember
2019-07-01
2020-06-30
0001422892
sino:MajorSupplierOneMember
us-gaap:SalesRevenueNetMember
2020-07-01
2021-06-30
0001422892
sino:MajorSupplierTwoMember
us-gaap:SalesRevenueNetMember
2020-07-01
2021-06-30
0001422892
sino:MajorSupplierOneMember
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
sino:MajorSupplierTwoMember
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
sino:MajorSupplierThreeMember
us-gaap:SalesRevenueNetMember
2019-07-01
2020-06-30
0001422892
sino:ShippingAgencyAndManagementServicesMember
2020-07-01
2021-06-30
0001422892
sino:FreightLogisticServicesMember
2020-07-01
2021-06-30
0001422892
sino:ShippingAgencyAndManagementServicesMember
2019-07-01
2020-06-30
0001422892
sino:FreightLogisticServicesMember
2019-07-01
2020-06-30
0001422892
sino:ContainerTruckingServicesMember
2019-07-01
2020-06-30
0001422892
sino:ShippingAgencyServicesMember
2021-06-30
0001422892
sino:ShippingAgencyServicesMember
2020-06-30
0001422892
sino:FreightLogisticServicesMember
2021-06-30
0001422892
sino:FreightLogisticServicesMember
2020-06-30
0001422892
sino:ContainerTruckingServicesMember
2021-06-30
0001422892
sino:ContainerTruckingServicesMember
2020-06-30
0001422892
sino:ZhangMember
2020-07-01
2021-06-30
0001422892
sino:ZhejiangJinbangFuelEnergyCoLtdMember
2019-07-01
2020-06-30
0001422892
sino:ZhejiangJinbangReturnMember
2019-07-01
2020-06-30
0001422892
2021-06-10
0001422892
sino:WangQinggangMember
2021-04-10
0001422892
2021-04-10
0001422892
sino:April2023Member
2019-07-01
2020-06-30
0001422892
srt:ChiefExecutiveOfficerMember
2021-06-30
0001422892
srt:ChiefFinancialOfficerMember
2021-06-30
0001422892
srt:ChiefExecutiveOfficerMember
2020-06-30
0001422892
srt:ChiefFinancialOfficerMember
2020-06-30
0001422892
sino:TianjinZhiyuanInvestmentGroupCoLtdMember
2021-06-30
0001422892
sino:TianjinZhiyuanInvestmentGroupCoLtdMember
2020-06-30
0001422892
sino:ZhejiangJinbangFuelEnergyCoLtd2Member
2021-06-30
0001422892
us-gaap:SubsequentEventMember
2021-07-01
0001422892
us-gaap:SubsequentEventMember
2021-08-01
2021-08-13
0001422892
us-gaap:SubsequentEventMember
2021-08-01
2021-08-31
xbrli:shares
iso4217:USD
iso4217:USD
xbrli:shares
xbrli:pure
iso4217:CNY
iso4217:AUD