Other Long-Term Assets - Deposits

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Other Long-Term Assets - Deposits

Note 6. OTHER LONG-TERM ASSETS - DEPOSITS

The Company’s other long-term assets – deposits are as follows:

	September 30,		June 30,
	2018		2018
Rental and utilities deposits	$	59,820	$	59,777
Freight logistic deposits (1)		2,993,362		83,526
Total other long-term assets - deposits	$	3,053,182	$	143,303

(1) Certain customers require the Company to pay deposits for the security of the shipments and merchandise. These deposits are refundable at the end of the contract terms. Approximately $2.91 million (RMB 20 million) was paid to BaoSteel Resources Co., Ltd. (“BaoSteel”) 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.