| Schedule of consolidated statements of operations and comprehensive loss |
| | |
For the
Year Ended
June 30, | |
| | |
2020 | |
| Revenue | |
$ | 28,747,362 | |
| | |
| | |
| Cost of revenue | |
| 26,553,802 | |
| | |
| | |
| Gross profit | |
| 2,193,560 | |
| | |
| | |
| OPERATING EXPENSES: | |
| | |
| Provision for doubtful accounts | |
| (8,385,084 | ) |
| Selling, general and administrative expenses | |
| (3,484,700 | ) |
| Research and development expenses | |
| (139,780 | ) |
| Total operating expenses | |
| (12,009,564 | ) |
| | |
| | |
| Loss from operations | |
| (9,816,004 | ) |
| | |
| | |
| OTHER INCOME (EXPENSES) | |
| | |
| Other expenses, net | |
| 1,872 | |
| Interest income | |
| 235 | |
| Interest expense | |
| (1,783,833 | ) |
| Finance expense | |
| (825 | ) |
| Estimated claims charges | |
| (591,884 | ) |
| Total other expense, net | |
| (2,374,435 | ) |
| | |
| | |
| Loss before income taxes | |
| (12,190,439 | ) |
| | |
| | |
| Income tax expense | |
| - | |
| | |
| | |
| Net loss from discontinued operations | |
$ | (12,190,439 | ) |
|
| Schedule of discontinued operations and reconciliation of gain on sale of discontinued operations |
| | |
May 6,
2020 | |
| CURRENT ASSETS: | |
| |
| Cash and cash equivalents | |
$ | 222,591 | |
| Accounts and notes receivable, net | |
| 28,598,318 | |
| Inventories | |
| 77,049 | |
| Other receivables, net | |
| 1,815,307 | |
| Other receivables – related party | |
| 160,505 | |
| Prepayments and advances, net | |
| 15,077,736 | |
| Prepayment – related party | |
| 247,598 | |
| Total current assets | |
| 46,199,104 | |
| | |
| | |
| OTHER ASSETS: | |
| | |
| Property, plant and equipment, net | |
| 795,974 | |
| Operating lease right-of-use assets | |
| 1,031,940 | |
| Total other assets | |
| 1,827,914 | |
| | |
| | |
| Total assets | |
$ | 48,027,018 | |
| | |
| | |
| CURRENT LIABILITIES: | |
| | |
| Short-term loan - bank | |
$ | 23,996,261 | |
| Accounts payable | |
| 16,158,660 | |
| Customer deposits | |
| 888,592 | |
| Other payables | |
| 23,197,053 | |
| Other payables – related parties | |
| 6,541 | |
| Accrued liabilities | |
| 5,143,410 | |
| Operating lease liabilities- current | |
| 291,228 | |
| Taxes payable | |
| 154,680 | |
| Accrued contingent liabilities | |
| 6,997,071 | |
| Total current liabilities | |
| 76,833,496 | |
| | |
| | |
| OTHER LIABILITIES: | |
| | |
| Operating lease liabilities - noncurrent | |
| 595,086 | |
| Total other liabilities | |
| 595,086 | |
| Total liabilities | |
$ | 77,428,582 | |
| | |
| | |
| Total net deficit | |
$ | 29,401,564 | |
| Additional paid-in-capital carryover | |
| (13,128,249 | ) |
| Retained earnings carryover | |
| (7,486,219 | ) |
| Total consideration received | |
| 600,000 | |
| Exchange rate effect | |
| (2,764,813 | ) |
| Total gain on sale of discontinued operations | |
$ | 6,622,283 | |
|
| Schedule of reconciliation of loss on sale of discontinued operations |
| | |
June 25,
2020
(unaudited) | |
| Total consideration paid | |
$ | 3,583,952 | |
| Forgiven of fair value of earn out payment | |
| (1,694,153 | ) |
| Expenses incurred from February 14 to June 25, 2020 | |
| (54,729 | ) |
| Total consideration received | |
| (1,000,000 | ) |
| Total loss on sale of discontinued operations | |
$ | 835,070 | |
|