Segment Reporting

6 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 16. 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 unaudited condensed 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 four operating segments: (1) shipping agency and management services; (2) inland transportation management services; (3) freight logistics services and (4) container trucking services.

The following tables present summary information by segment for the three and six months ended December 31, 2019 and 2018, respectively:

	For the Three Months Ended December 31, 2019
	Shipping Agency and Management Services			Inland Transportation Management Services			Freight Logistics Services			Container Trucking Services			Total
Revenues
- Related party	$	-		$	-		$	-		$	-		$	-
- Third parties	$	500,000		$	-		$	1,503,500	*	$	17,624		$	2,021,124
Total revenues	$	500,000		$	-		$	1,503,500		$	17,624		$	2,021,124
Cost of revenues	$	66,584		$	-		$	673,646	*	$	15,415		$	755,645
Gross profit	$	433,416		$	-		$	829,854		$	2,209		$	1,265,479
Depreciation and amortization	$	79,144		$	-		$	-		$	3,389		$	82,533
Total capital expenditures	$	2,482		$	-		$	-		$	-		$	2,482
Gross margin%		86.7	%		-	%		55.2	%		12.5	%		62.6	%

* 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 three months ended December 31, 2019, gross revenues and gross cost of revenues related to these contracts amounted to approximately $12.9 million and $12.0 million, respectively.

	For the Three Months Ended December 31, 2018
	Shipping Agency and Management Services			Inland Transportation Management Services			Freight Logistics Services			Container Trucking Services			Total
Revenues
- Related party	$	-		$	75,000		$	-		$	-		$	75,000
- Third parties	$	889,070		$	345,000		$	8,978,923		$	227,294		$	10,440,287
Total revenues	$	889,070		$	420,000		$	8,978,923		$	227,294		$	10,515,287
Cost of revenues	$	809,040		$	20,000		$	7,497,666		$	229,891		$	8,556,597
Gross profit	$	80,030		$	400,000		$	1,481,257		$	(2,597	)	$	1,958,690
Depreciation and amortization	$	-		$	20,339		$	475		$	4,751		$	25,565
Total capital expenditures	$	-		$	-		$	-		$	8,534		$	8,534
Gross margin%		9.0	%		95.2	%		16.5	%		(1.1	)%		18.6	%

	For the Six Months Ended December 31, 2019
	Shipping Agency and Management Services			Inland Transportation Management Services			Freight Logistics Services			Container Trucking Services			Total
Revenues
- Related party	$	-		$	-		$	-		$	-		$	-
- Third parties	$	1,000,000		$	-		$	2,745,641	*	$	61,709		$	3,807,350
Total revenues	$	1,000,000		$	-		$	2,745,641		$	61,709		$	3,807,350
Cost of revenues	$	162,406		$	-		$	1,221,329	*	$	55,314		$	1,439,049
Gross profit	$	837,594		$	-		$	1,524,312		$	6,395		$	2,368,301
Depreciation and amortization	$	181,918		$	-		$	7,686		$	47,407		$	237,011
Total capital expenditures	$	7,020		$	-		$	-		$	-		$	7,020
Gross margin%		83.8	%		-	%		55.5	%		10.4	%		62.2	%

* 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 six months ended December 31, 2019, gross revenues and gross cost of revenues related to these contracts amounted to approximately $22.0 million and $20.5 million, respectively.

	For the Six Months Ended December 31, 2018
	Shipping Agency and Management Services			Inland Transportation Management Services			Freight Logistics Services			Container Trucking Services			Total
Revenues
- Related party	$	-		$	397,000		$	-		$	-		$	397,000
- Third parties	$	889,070		$	943,000		$	14,466,476		$	319,274		$	16,617,820
Total revenues	$	889,070		$	1,340,000		$	14,466,476		$	319,274		$	17,014,820
Cost of revenues	$	809,040		$	79,874		$	12,463,658		$	287,857		$	13,640,429
Gross profit	$	80,030		$	1,260,126		$	2,002,818		$	31,417		$	3,374,391
Depreciation and amortization	$	-		$	40,826		$	951		$	9,503		$	51,280
Total capital expenditures	$	-		$	-		$	-		$	9,357		$	9,357
Gross margin%		9.0	%		94.0	%		13.8	%		9.8	%		19.8	%

Total assets as of:

	December 31,		June 30,
	2019		2019
Shipping Agency and Management Services	$	3,184,159	$	3,549,093
Freight Logistic Services		16,546,296		17,017,696
Container Trucking Services		25,382		32,215
Total Assets	$	19,755,837	$	20,599,003