| Condensed financial information of the parent company |
Note 19 – Condensed financial information
of the parent company The Company performed a test on the restricted
net assets of the consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General
Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the
parent company. The subsidiaries did not pay any dividend to the
Company for the periods presented. For the purpose of presenting parent-only financial information, the Company records its investment
in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the
Company as “Investment in subsidiaries” and the loss of the subsidiaries is presented as “Equity loss of subsidiaries”.
Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been
condensed and omitted. The Company did not have significant capital and
other commitments, long-term obligations, or guarantees as of June 30, 2022 and 2021.
| | |
June 30,
2022 | | |
June 30,
2021 | |
| ASSETS | |
| | |
| |
| CURRENT ASSETS: | |
| | |
| |
| Cash | |
$ | 470,634 | | |
$ | 26,636 | |
| Other receivables | |
| - | | |
| 8,900 | |
| Prepayments and advances | |
| - | | |
| 4,300 | |
| Total current assets | |
| 470,634 | | |
| 39,836 | |
| | |
| | | |
| | |
| OTHER ASSETS: | |
| | | |
| | |
| Intercompany receivable | |
| 114,222,952 | | |
| 74,858,613 | |
| Investment in subsidiaries | |
| - | | |
| 2,459,560 | |
| Total other assets | |
| 114,222,952 | | |
| 77,318,173 | |
| | |
| | | |
| | |
| Total assets | |
$ | 114,693,586 | | |
$ | 77,358,009 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| | |
| | | |
| | |
| CURRENT LIABILITIES: | |
| | | |
| | |
| Other payables and accrued liabilities | |
$ | 327,694 | | |
$ | 396,797 | |
| Other payables - shareholders | |
| 10,711 | | |
| 10,711 | |
| Total current liabilities | |
| 338,405 | | |
| 407,508 | |
| | |
| | | |
| | |
| OTHER LIABILITIES | |
| | | |
| | |
| Deficit of investment in subsidiaries | |
| 65,911,417 | | |
| - | |
| Total liabilities | |
| 66,249,822 | | |
| 407,508 | |
| | |
| | | |
| | |
| COMMITMENTS AND CONTINGENCIES | |
| | | |
| | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY: | |
| | | |
| | |
| Ordinary share, $0.04 par value, 800,000,000 shares authorized, 4,819,700 and 2,758,920 shares issued and outstanding as of June 30, 2022 and 2021, respectively* | |
| 192,788 | | |
| 110,357 | |
| Additional paid-in-capital | |
| 195,654,317 | | |
| 147,684,772 | |
| Deferred stock compensation | |
| (32,978 | ) | |
| (682,383 | ) |
| Deficit | |
| (147,370,363 | ) | |
| (70,162,245 | ) |
| Total shareholders’ equity | |
| 48,443,764 | | |
| 76,950,501 | |
| Total liabilities and shareholders’ equity | |
$ | 114,693,586 | | |
$ | 77,358,009 | |
| * | Giving retroactive effect to the 40-for-1 reverse share split
on September 26, 2022. |
| | |
For the Years Ended June 30, | |
| | |
2022 | | |
2021 | | |
2020 | |
| GENERAL AND ADMINISTRATIVE EXPENSES | |
$ | (4,098,934 | ) | |
$ | (2,821,121 | ) | |
$ | (1,402,044 | ) |
| STOCK COMPENSATION EXPENSE | |
| (4,732,700 | ) | |
| (5,717,900 | ) | |
| (3,444,617 | ) |
| LOSS FROM OPERATIONS | |
| (8,831,634 | ) | |
| (8,539,021 | ) | |
| (4,846,661 | ) |
| | |
| | | |
| | | |
| | |
| OTHER INCOME (EXPENSE), NET | |
| | | |
| | | |
| | |
| Finance expense | |
| (5,507 | ) | |
| (6,480 | ) | |
| (5,007 | ) |
| Equity loss of subsidiaries | |
| (68,370,977 | ) | |
| (1,118,204 | ) | |
| (12,562,142 | ) |
| Gain on debt settlement | |
| - | | |
| 25,092 | | |
| - | |
| Gain on sale of subsidiaries | |
| - | | |
| 1,400,100 | | |
| 5,787,213 | |
| TOTAL OTHER INCOME (EXPENSE), NET | |
| (68,376,484 | ) | |
| 300,508 | | |
| (6,779,936 | ) |
| | |
| | | |
| | | |
| | |
| NET LOSS | |
$ | (77,208,118 | ) | |
$ | (8,238,513 | ) | |
$ | (11,626,597 | ) |
| | |
For the Years Ended June 30, | |
| | |
2022 | | |
2021 | | |
2020 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | |
| | |
| |
| Net loss | |
$ | (77,208,118 | ) | |
$ | (8,238,513 | ) | |
$ | (11,626,597 | ) |
| Adjustments to reconcile net loss to cash used in operating activities: | |
| | | |
| | | |
| | |
| Stock compensation expense | |
| 4,732,700 | | |
| 5,717,900 | | |
| 3,444,617 | |
| Equity loss of subsidiaries | |
| 68,370,977 | | |
| 1,118,204 | | |
| 12,562,142 | |
| Gain on debt settlement | |
| - | | |
| (25,092 | ) | |
| - | |
| Gain on sale of discontinued operations | |
| - | | |
| (1,400,100 | ) | |
| (5,787,213 | ) |
| Changes in operating assets and liabilities | |
| | | |
| | | |
| | |
| Other receivables | |
| 8,900 | | |
| (6,600 | ) | |
| - | |
| Prepayments and advances | |
| 4,300 | | |
| (4,300 | ) | |
| (125,000 | ) |
| Intercompany receivables | |
| (39,364,339 | ) | |
| (65,500,903 | ) | |
| (1,231,449 | ) |
| Other payables and accrued liabilities | |
| (69,103 | ) | |
| 60,090 | | |
| 93,711 | |
| Net cash used in operating activities | |
| (43,524,683 | ) | |
| (68,279,314 | ) | |
| (2,669,789 | ) |
| | |
| | | |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | | |
| | | |
| | |
| Purchase of equipment | |
| - | | |
| - | | |
| (2,000,000 | ) |
| Proceeds from disposal of subsidiaries | |
| - | | |
| 100 | | |
| 600,000 | |
| Net cash provided by (used in) investing activities | |
| - | | |
| 100 | | |
| (1,400,000 | ) |
| | |
| | | |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | | |
| | |
| Borrowings from shareholders | |
| - | | |
| - | | |
| 300,000 | |
| Borrowings from related parties | |
| - | | |
| - | | |
| - | |
| Proceeds from sale of ordinary shares | |
| 43,937,202 | | |
| 62,341,025 | | |
| 4,502,901 | |
| Proceeds from exercise of warrants | |
| 31,479 | | |
| 5,171,591 | | |
| - | |
| Net cash provided by financing activities | |
| 43,968,681 | | |
| 67,512,616 | | |
| 4,802,901 | |
| | |
| | | |
| | | |
| | |
| NET CHANGE IN CASH | |
| 443,998 | | |
| (766,598 | ) | |
| 733,112 | |
| | |
| | | |
| | | |
| | |
| CASH, beginning of year | |
| 26,636 | | |
| 793,234 | | |
| 60,122 | |
| | |
| | | |
| | | |
| | |
| CASH, end of year | |
$ | 470,634 | | |
$ | 26,636 | | |
$ | 793,234 | |
| | |
| | | |
| | | |
| | |
| NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES: | |
| | | |
| | | |
| | |
| Ordinary shares issued to repay other payables – related parties and service providers | |
$ | - | | |
$ | - | | |
$ | 1,137,378 | |
| Ordinary shares issued to repay debt in subsidiary | |
$ | - | | |
$ | - | | |
$ | 5,240,679 | |
| Ordinary share issued for acquisition of subsidiary | |
$ | - | | |
$ | - | | |
$ | 1,889,799 | |
| Ordinary share issued for acquisition of equipment | |
$ | - | | |
$ | 3,818,000 | | |
$ | 1,963,607 | |
| Ordinary share issued for acquisition of intangible assets held in a subsidiary | |
$ | - | | |
$ | 1,550,000 | | |
$ | - | |
| Other receivables outstanding from disposal of subsidiary | |
$ | - | | |
$ | - | | |
$ | 1,000,000 | |
| Forgiveness of former subsidiary’s receivable upon disposal of subsidiary | |
$ | - | | |
$ | 120,000 | | |
$ | - | |
| Recognition of accrued liabilities from subsidiary | |
$ | - | | |
$ | - | | |
$ | 214,792 | |
| Derecognition of intercompany balance upon disposal of subsidiary | |
$ | - | | |
$ | - | | |
$ | 23,164,488 | |
| Proceeds from disposal of subsidiary received by intercompany | |
$ | - | | |
$ | 1,400,000 | | |
$ | - | |
|