Other Receivables, Net

12 Months Ended

Jun. 30, 2020

Receivables [Abstract]

OTHER RECEIVABLES, NET

Note 4. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	June 30,			June 30,
	2020			2019
Advances to customers*	$	10,004,893		$	4,237,270
Employee business advances		51,334			54,953
Security deposit		-			43,492
Total		10,056,227			4,335,715
Less: allowances for doubtful accounts		(10,005,193	)		-
Other receivables, net	$	51,034		$	4,335,715

* As of June 30, 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 our 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 provided an allowance due to contract delay and recorded allowances of approximately $10.0 million.

Movement of allowance for doubtful accounts are as follows:

	June 30, 2020			June 30, 2019
Beginning balance	$	-		$	-
Provision for doubtful accounts		10,055,203			-
Less: write-off		(1,763	)		-
Exchange rate effect		(48,247	)		-
Ending balance	$	10,005,193		$	-

For the years ended June 30, 2020 and 2019, the provision for doubtful accounts was $10,055,203 and nil, respectively. The Company wrote off $1,763 and nil of other receivables for the years ended June 30, 2020 and 2019, respectively.