10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended December 31, 2020

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ___________ to ___________.

Commission File Number 001-34024

Sino-Global Shipping America, Ltd.

(Exact name of registrant as specified in its charter)

Virginia	11-3588546
(State or other jurisdiction of	(I.R.S. employer
Incorporation or organization)	identification number)

1044 Northern Boulevard, Suite 305 Roslyn, New York	11576-1514
(Address of principal executive offices)	(Zip Code)

(718) 888-1814

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	SINO	NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of February 11, 2021, the Company had 13,309,244 shares of common stock issued and outstanding.

SINO-GLOBAL SHIPPING AMERICA, LTD .

FORM 10-Q

INDEX 

PART I. FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures about Market Risk	39
Item 4. Controls and Procedures	39
PART II. OTHER INFORMATION	40
Item 1. Legal Proceedings	40
Item 1A. Risk Factors	40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3. Defaults Upon Senior Securities	40
Item 4. Mine Safety Disclosures	40
Item 5. Other Information	40
Item 6. Exhibits	40

i

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document contains certain statements of a forward-looking nature. Such forward-looking statements, including but not limited to projected growth, trends and strategies, future operating and financial results, financial expectations and current business indicators are based upon current information and expectations and are subject to change based on factors beyond our control. Forward-looking statements typically are identified by the use of terms such as “look”, “may”, “will”, “should”, “might”, “believe”, “plan”, “expect”, “anticipate”, “estimate” and similar words, although some forward-looking statements are expressed differently. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including but not limited to the following:

● Our ability to timely and properly deliver our services;

● Our dependence on a limited number of major customers and related parties;

● Political and economic factors in the People’s Republic of China (“PRC”);

● Our ability to expand and grow our lines of business;

● Unanticipated changes in general market conditions or other factors, which may result in cancellations or reductions in the need for our services;

● Economic conditions which would reduce demand for services provided by us and could adversely affect profitability;

● The effect of terrorist acts, or the threat thereof, on the demand for the shipping and logistic industry which could, adversely affect our operations and financial performance;

● The acceptance in the marketplace of our new lines of business;

● Foreign currency exchange rate fluctuations;

● Hurricanes, outbreak of contagious diseases or other natural disasters; and

● Our ability to attract, retain and motivate skilled personnel.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update this forward-looking information unless required by applicable law or regulations.

ii

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	December 31,			June 30,
	2020			2020
Assets
Current assets
Cash	$	4,473,000		$	131,182
Accounts receivable, net		1,262,138			1,155,948
Other receivables, net		583,916			51,034
Advances to suppliers - third parties		80,804			48,875
Prepaid expenses and other current assets		63,125			90,382
Due from related party, net		345,898			435,898
Total Current Assets		6,808,881			1,913,319
Property and equipment, net		424,326			523,290
Right-of-use assets		224,950			300,114
Intangible assets, net		-			26,389
Other long-term assets - deposits		3,204,323			2,974,990
Total Assets	$	10,662,480		$	5,738,102
Liabilities and Equity
Current Liabilities
Deferred revenue	$	470,996		$	67,083
Accounts payable		564,495			487,692
Lease liabilities - current		166,572			204,391
Taxes payable		3,561,551			3,280,348
Accrued expenses and other current liabilities		855,188			1,643,319
Loan payable - current		132,468			126,032
Total current liabilities		5,751,270			5,808,865
Lease liabilities - noncurrent		78,660			132,699
Loan payable - noncurrent		148,002			154,438
Total liabilities		5,977,932			6,096,002
Commitments and Contingencies
Equity (Deficiency)
Preferred stock, 2,000,000 shares authorized, no par value, 860,000 and nil shares issued and outstanding as of December 31, 2020 and June 30, 2020, respectively		1,427,600			-
Common stock, 50,000,000 shares authorized, no par value; 5,998,788 and 3,718,788 shares issued and outstanding as of December 31, 2020 and June 30, 2020, respectively*		33,788,522			28,414,992
Additional paid-in capital		2,334,962			2,334,962
Subscription receivable		-			(59,869	)
Accumulated deficit		(25,258,304	)		(23,421,594	)
Accumulated other comprehensive loss		(656,914	)		(1,084,030	)
Total Sino-Global Shipping America Ltd. Stockholders' Equity		11,635,866			6,184,461
Non-controlling Interest		(6,951,318	)		(6,542,361	)
Total Equity (Deficiency)		4,684,548			(357,900	)
Total Liabilities and Equity (Deficiency)	$	10,662,480		$	5,738,102

* Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Net revenues		1,884,440			2,021,124		$	3,021,239		$	3,807,350
Cost of revenues		(1,688,464	)		(755,645	)		(2,783,690	)		(1,439,049	)
Gross profit		195,976			1,265,479			237,549			2,368,301
Selling expenses		(73,462	)		(126,125	)		(142,392	)		(256,154	)
General and administrative expenses		(1,314,235	)		(702,064	)		(2,017,669	)		(1,793,519	)
Impairment loss of fixed assets and intangible asset		-			-			-			(327,632	)
Provision for doubtful accounts, net of recovery		15,891			(278,676	)		(2,462	)		(1,167,754	)
Stock-based compensation		-			(491,609	)		-			(906,317	)
Total operating expenses		(1,371,806	)		(1,598,474	)		(2,162,523	)		(4,451,376	)
Operating loss		(1,175,830	)		(332,995	)		(1,924,974	)		(2,083,075	)
Other income (loss), net		85,720			(15,613	)		86,408			(14,157	)
Net loss before provision for income taxes		(1,090,110	)		(348,608	)		(1,838,566	)		(2,097,232	)
Income tax expense		(3,450	)		(14,747	)		(3,450	)		(14,747	)
Net loss		(1,093,560	)		(363,355	)		(1,842,016	)		(2,111,979	)
Net income (loss) attributable to non-controlling interest		9,359			43,978			(5,306	)		(77,293	)
Net loss attributable to Sino-Global Shipping America, Ltd.	$	(1,102,919	)	$	(407,333	)	$	(1,836,710	)	$	(2,034,686	)
Comprehensive loss
Net loss	$	(1,093,560	)	$	(363,355	)	$	(1,842,016	)	$	(2,111,979	)
Other comprehensive income (loss) - foreign currency		31,038			256,206			23,465			(247,461	)
Comprehensive loss		(1,062,522	)		(107,149	)		(1,818,551	)		(2,359,440	)
Less: Comprehensive loss attributable to non-controlling interest		(195,468	)		(49,831	)		(408,957	)		(28,558	)
Comprehensive loss attributable to Sino-Global Shipping America, Ltd.	$	(867,054	)	$	(57,318	)	$	(1,409,594	)	$	(2,330,882	)
Loss per share
Basic and diluted*	$	(0.23	)	$	(0.12	)	$	(0.42	)	$	(0.62	)
Weighted average number of common shares used in computation
Basic and diluted*		4,828,788			3,363,802			4,328,571			3,289,674

* Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIENCY)

(UNAUDITED )

	Preferred Stock				Common Stock						Additional paid-in		Treasury Stock						Subscription		Accumulated			Accumulated other comprehensive			Noncontrolling
	Shares		Amount		Shares*			Amount			capital		Shares*			Amount			receivable		deficit			loss			interest			Total
BALANCE, June 30, 2019		-	$	-		3,210,907		$	26,523,830		$	2,066,906		(35,099	)	$	(417,538	)	$	-	$	(6,968,700	)	$	(671,106	)	$	(5,173,622	)	$	15,359,770
Stock based compensation to employee		-		-		18,000			63,000			-		-			-			-		-			-			-			63,000
Stock based compensation to consultants		-		-		48,000			200,300			-		-			-			-		-			-			-			200,300
Amortization of shares issued to consultants		-		-		-			-			180,209		-			-			-		-			-			-			180,209
Foreign currency translation		-		-		-			-			-		-			-			-		-			(646,211	)		142,544			(503,667	)
Net loss		-		-		-			-			-		-			-			-		(1,627,353	)		-			(121,271	)		(1,748,624	)
BALANCE, September 30, 2019		-		-		3,276,907			26,787,130			2,247,115		(35,099	)		(417,538	)		-		(8,596,053	)		(1,317,317	)		(5,152,349	)		13,550,988
Stock based compensation to employees		-		-		46,000			156,400			-		-			-			-		-			-			-			156,400
Stock based compensation to consultants		-		-		70,000			282,500			-		-			-			-		-			-			-			282,500
Amortization of shares issued to consultants		-		-		-			-			52,708		-			-			-		-			-			-			52,708
Issuance of common stock to private investor		-		-		100,100			500,500			-		-			-			-		-			-			-			500,500
Cancellation of treasury stock		-		-		(35,099	)		(417,538	)		-		35,099			417,538			-		-			-			-			-
Foreign currency translation		-		-		-			-			-		-			-			-		-			350,015			(93,809	)		256,206
Net loss		-		-		-			-			-		-			-			-		(407,333	)		-			43,978			(363,355	)
BALANCE, December 31, 2019		-	$	-		3,457,908		$	27,308,992		$	2,299,823		-		$	-		$	-	$	(9,003,386	)	$	(967,302	)	$	(5,202,180	)	$	14,435,947

	Preferred Stock				Common Stock				Additional paid-in		Treasury Stock				Subscription			Accumulated			Accumulated other comprehensive			Noncontrolling
	Shares		Amount		Shares*		Amount		capital		Shares		Amount		receivable			deficit			loss			interest			Total
BALANCE, June 30, 2020		-	$	-		3,718,788	$	28,414,992	$	2,334,962		-	$	-	$	(59,869	)	$	(23,421,594	)	$	(1,084,030	)	$	(6,542,361	)	$	(357,900	)
Issuance of common stock to private investor		-		-		720,000		1,051,200		-		-		-		59,869			-			-			-			1,111,069
Foreign currency translation		-		-		-		-		-		-		-		-			-			191,251			(198,824	)		(7,573	)
Net loss		-		-		-		-		-		-		-		-			(733,791	)		-			(14,665	)		(748,456	)
BALANCE, September 30, 2020		-		-		4,438,788		29,466,192		2,334,962		-		-		-			(24,155,385	)		(892,779	)		(6,755,850	)		(2,860	)
Issuance of preferred stock to private investor		860,000		1,427,600		-		-		-		-		-		-			-			-			-			1,427,600
Issuance of common stock to private investor		-		-		1,560,000		4,322,330		-		-		-		-			-			-			-			4,322,330
Foreign currency translation		-		-		-		-		-		-		-		-			-			235,865			(204,827	)		31,038
Net loss		-		-		-		-		-		-		-		-			(1,102,919	)		-			9,359			(1,093,560	)
BALANCE, December 31, 2020		860,000	$	1,427,600		5,998,788	$	33,788,522	$	2,334,962		-	$	-	$	-		$	(25,258,304	)	$	(656,914	)	$	(6,951,318	)	$	4,684,548

* Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended
	December 31,
	2020			2019
Operating Activities
Net income (loss)	$	(1,842,016	)	$	(2,111,979	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation		-			906,317
Depreciation and amortization		165,128			237,011
Non-cash lease expense		76,716			78,405
Provision for doubtful accounts, net of recovery		2,462			1,167,754
Impairment loss of fixed assets and intangible asset		-			327,632
Changes in assets and liabilities
Notes receivable		-			386,233
Accounts receivable		(190,033	)		1,629,174
Other receivables		(881,628	)		(5,855,492	)
Advances to suppliers - third parties		(28,770	)		(66,691	)
Prepaid expenses and other current assets		27,277			160,497
Other long-term assets - deposits		(100,746	)		96,281
Due from related parties		86,000			413,408
Deferred revenue		401,966			-
Advances from customers		-			5,580
Accounts payable		57,265			(63,131	)
Taxes payable		140,633			(76,110	)
Lease liabilities		(93,459	)		(77,118	)
Accrued expenses and other current liabilities		(788,780	)		(233,414	)
Net cash used in operating activities		(2,967,985	)		(3,075,643	)
Investing Activities
Acquisition of property and equipment		-			(7,020	)
Net cash used in investing activities		-			(7,020	)
Financing Activities
Proceeds from issuance of preferred stock		1,427,600			-
Proceeds from issuance of common stock		5,433,399			500,500
Net cash provided by financing activities		6,860,999			500,500
Effect of exchange rate fluctuations on cash		448,804			(440,820	)
Net increase (decrease) in cash		4,341,818			(3,022,983	)
Cash at the beginning of period		131,182			3,142,650
Cash at the end of period	$	4,473,000		$	119,667
Supplemental information
Income taxes paid	$	-		$	38,498
Non-cash transactions of operating and investing activities
Transfer of prepayment to intangible asset	$	-		$	218,678
Initial recognition of right-of-use assets and lease liabilities	$	-		$	462,361

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1. ORGANIZATION AND NATURE OF BUSINESS

Founded in the United States (the “U.S.”) in 2001, Sino-Global Shipping America, Ltd., a Virginia corporation (“Sino-Global” or the “Company”), is a global shipping and freight logistics integrated solution provider. The Company provides tailored solutions and value-added services to its customers to drive efficiency and control in related steps throughout the entire shipping and freight logistics chain. The Company conducts its business primarily through its wholly-owned subsidiaries in the People’s Republic of China (the “PRC” or “China”) (including Hong Kong) and the U.S. where a majority of the Company’s clients are located.

The Company operates in three operating segments including (1) shipping agency and management services, which are operated by its subsidiary in the U.S.; (2) freight logistics services, which are operated by its subsidiary in the PRC; (3) container trucking services, which are operated by its subsidiary in the U.S.

The outbreak of the novel coronavirus (COVID-19) starting from late January 2020 in the PRC has spread rapidly to many parts of the world. In March 2020, the World Health Organization declared the COVID-19 as a pandemic and has resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities in China and the U.S. for the past few months. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and its workforce are concentrated in China and the U.S., the Company’s business, results of operations, and financial condition have been adversely affected for the six months ended December 31, 2020. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19.

After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the Company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock.

On December 14, 2020, the Company incorporated a new entity named “Blumargo IT Solution Ltd.” with 80% ownership in partner with Tianjin Anboweiye Technology Co. to build up hi-tech and information-based logistic services enhance to meet the higher and complicate demand of customers.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All intercompany transactions and balances have been eliminated in consolidation.

5

Sino-Global Shipping Agency Ltd., a PRC corporation (“Sino-China”), is considered a variable interest entity (“VIE”), with the Company as the primary beneficiary. The Company, through Trans Pacific Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. Sino-China was designed to operate in China for the benefit of the Company. The Company does not receive any payment from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. If Sino-China incurs a net loss during its fiscal year, the Company is not required to absorb such net loss.

As a VIE, Sino-China’s revenues are included in the Company’s total revenues, and any income/loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China.

The Company has consolidated Sino-China’s operating results in accordance with Accounting Standards Codification (“ASC”) 810-10, “Consolidation”. The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China.

The carrying amount and classification of Sino-China’s assets and liabilities included in the Company’s unaudited condensed consolidated balance sheets were as follows:

	December 31,		June 30,
	2020		2020
Current assets:
Cash	$	5,183	$	5,022
Total current assets		5,183		5,022
Deposits		1,740		1,608
Property and equipment, net		37,241		41,171
Total assets	$	44,164	$	47,801
Current liabilities:
Other payables and accrued liabilities	$	43,406	$	39,919
Total liabilities	$	43,406	$	39,919

(b) Fair Value of Financial Instruments

The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3 — Unobservable inputs that reflect management’s assumptions based on the best available information.

The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments.

6

(c) Use of Estimates and Assumptions

The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.

(d) Translation of Foreign Currency

The accounts of the Company and its subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s functional currency is the U.S. dollar (“USD”) while its subsidiaries in the PRC, including Sino-China, Trans Pacific Shipping Ltd. and Trans Pacific Logistic Shanghai Ltd. report their financial positions and results of operations in Renminbi (“RMB”), its subsidiary Sino-Global Shipping Australia Pty Ltd., reports its financial positions and results of operations in Australian dollar (“AUD”), its subsidiary Sino-Global Shipping Hong Kong reports its financial positions and results of operations in Hong Kong dollar (“HKD”) and its subsidiary Sino-Global Shipping Canada, Inc. reports its financial positions and results of operations in Canadian Dollar (“CAD”). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements in accordance with ASC 830-10, “Foreign Currency Matters”. Assets and liabilities are translated at current exchange rates quoted by the People’s Bank of China at the balance sheets’ dates and revenues and expenses are translated at average exchange rates in effect during the year. The resulting translation adjustments are recorded as other comprehensive loss and accumulated other comprehensive loss as a separate component of equity of the Company, and also included in non-controlling interests.

The exchange rates as of December 31, 2020 and June 30, 2020 and for the three and six months ended December 31, 2020 and 2019 are as follows:

	December 31, 2020		June 30, 2020		Three months ended December 31,				Six months ended December 31,
Foreign currency	Balance Sheet		Balance Sheet		2020 Profits/Loss		2019 Profits/Loss		2020 Profits/Loss		2019 Profits/Loss
RMB:1USD		6.5286		7.0651		6.6254		7.0446		6.7736		7.0296
AUD:1USD		1.2974		1.4514		1.3688		1.4630		1.3840		1.4611
HKD:1USD		7.7536		7.7505		7.7520		7.8256		7.7513		7.8278
CAD:1USD		1.2754		1.3617		1.3038		1.3200		1.3181		1.3200

(e) Cash

Cash consists of cash on hand and cash in bank which are unrestricted as to withdrawal or use. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of December 31, 2020 and June 30, 2020, cash balances of $4,462,063 and $126,720, respectively, were maintained at financial institutions. In China, the deposit insurance system only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). For the balance maintained at U.S. financial institutions, the Federal Deposit Insurance Corporation as it only insured deposits up to $250,000. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2020 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $3,881,953 and $8,780, respectively.

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(f) Receivables and Allowance for Doubtful Accounts

Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers’ historical payment history, their current credit-worthiness and current economic trends. Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts. As the Company has focused its development in the shipping management segment, its customer base will be more from smaller privately owned companies that will pay more timely than state owned companies. The Company also considers the economic implications of COVID-19 on its estimates of the allowance and made additional $2,609 and $258,561 of allowance for doubtful accounts of accounts receivable for the three months ended December 31, 2020 and 2019, $33,418 and $1,282,492 of allowance for doubtful accounts of accounts receivable for the six months ended December 31, 2020 and 2019. The Company recovered nil and $22,869 of accounts receivable for the three months ended December 31, 2020 and 2019, respectively. The Company recovered $2,456 and $22,869 of accounts receivable for the six months ended December 31, 2020 and 2019, respectively. For the three and six months ended December 31, 2019 the Company wrote off nil and $99,366. There was no write off for the three and six months ended December 31, 2020. 

Other receivables represent mainly customer advances, prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. The Company made $11,673 allowance for doubtful accounts of other receivables for the three and six months ended December 31, 2020. There was no allowance of other receivables for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2020, $11,673 was written off against other receivables. For the three and six months ended December 31, 2019, nil and $1,763 was written off against other receivables, respectively. The Company recovered $30,173 of other receivables for the three and six months ended December 31, 2020. There was no recovery against other receivables for the three and six months ended December 31, 2019. 

(g) Property and Equipment, net

Property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Buildings	20 years
Motor vehicles	3-10 years
Computer and office equipment	1-5 years
Furniture and fixtures	3-5 years
System software	5 years
Leasehold improvements	Shorter of lease term or useful lives

The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. There was no impairment for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, an impairment of nil and $127,177 were recorded, respectively.

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(h) Intangible Assets, net

Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives:

Logistics platform 3 years

The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. There was no impairment for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, an impairment of nil and $200,455 were recorded, respectively.

(i) Revenue Recognition

The Company recognizes revenue which represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company identifies contractual performance obligations and determines whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time.

The Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company’s revenues are recognized at a point in time after all performance obligations are satisfied. 

Contract balances

The Company records receivables related to revenue when the Company has an unconditional right to invoice and receive payment.

Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized.

The Company’s disaggregated revenue streams are described as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Shipping and management agency services	$	-	$	500,000	$	206,845	$	1,000,000
Freight logistics services		1,884,440		1,503,500		2,814,394		2,745,641
Container trucking services		-		17,624		-		61,709
Total	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as deferred revenue.

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● Revenues from freight logistics services are recognized when the related contractual services are rendered.   For certain freight logistics contracts that the Company entered into with customers starting in the 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 this contracts are presented net of related costs. For the three months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $12.9 million and $12.0 million, respectively. For the six months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts amounted to approximately $22.0 million and $20.5 million, respectively. There was no such transaction for the three and six months ended December 31, 2020.

● Revenues from container trucking services are recognized when the related contractual services are rendered.

Disaggregated information of revenues by geographic locations are as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

(j) Taxation

Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with U.S. GAAP. Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of December 31, 2020 and June 30, 2020.

Income tax returns for the years prior to 2017 are no longer subject to examination by U.S. tax authorities.

PRC Enterprise Income Tax

PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles (“PRC GAAP”) at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC.

PRC Value Added Taxes and Surcharges

The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. Entities that are VAT general taxpayers are allowed to offset qualified VAT paid to suppliers against their VAT liability. Net VAT liability is recorded in taxes payable on the unaudited condensed consolidated balance sheets.

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In addition, under the PRC regulations, the Company’s PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the net VAT payments.

(k) Earnings (loss) per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common stock of the Company by the weighted average number of shares of common stock of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock of the Company were exercised or converted into common stock of the Company. Common stock equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive.

For the three and six months ended December 31, 2020 and 2019, there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss.

(l) Comprehensive Income (Loss)

The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the “FASB”) which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of Stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

(m) Stock-based Compensation

The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee’s requisite service period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received.  

Valuations of stock based compensation are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

(n) Risks and Uncertainties

The Company’s business, financial position and results of operations may be influenced by the political, economic, health and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, health and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

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In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and the workforce are concentrated in China and United States, the Company’s business, results of operations, and financial condition have been adversely affected for the three months ended September 30, 2020. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19.

(o) Liquidity

In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of December 31, 2020, the Company’s working capital was approximately $1.1 million and the Company had cash of approximately $4.5 million. The Company believes its revenues and operations will continue to grow and the current working capital is sufficient to support its operations and debt obligations as they become due one year through report date.

The Company expects to realize the balance of its current assets within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company had considered supplementing its available sources of funds through the following sources:

● the Company will continuously seek equity financing to support its working capital. On January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. persons to purchase 1,086,956 shares at a per share purchase price of $3.68 for aggregate proceeds of approximately $4.0 million. The Company has received the full amount of payment in January 2021. On February 6, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 1,998,500 shares at a per share purchase price of $6.805 for aggregate net proceeds of approximately $12.3 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021. On February 9, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 3,655,000 shares at a per share purchase price of $7.80 for aggregate net proceeds of approximately $26.2 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021;

● other available sources of financing from PRC banks and other financial institutions; and

● financial support and credit guarantee commitments from the Company’s shareholders and directors.

Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s future liquidity requirements for at least twelve months from issuance of these unaudited condensed consolidated financial statements.

(p) Recent Accounting Pronouncements

Pronouncements adopted

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted this ASU on July 1, 2020 and the adoption has no significant impact to the Company’s unaudited condensed consolidated financial statements as a whole.

Pronouncements not yet adopted

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after July 1, 2023, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on July 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

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In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The amendments in this Update to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 is effective for the Company for annual and interim reporting periods beginning July 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after July 1, 2021, including interim periods within those fiscal years. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements.

Note 3. ACCOUNTS RECEIVABLE, NET

The Company’s net accounts receivable are as follows:

	December 31,			June 30,
	2020			2020
Trade accounts receivable	$	3,720,087		$	3,453,439
Less: allowances for doubtful accounts		(2,457,949	)		(2,297,491	)
Accounts receivable, net	$	1,262,138		$	1,155,948

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Movement of allowance for doubtful accounts are as follows:

	December 31, 2020		June 30, 2020
Beginning balance	$	2,297,491	$	5,670,274
Provision for doubtful accounts, net of recovery		30,962		4,896,640
Less: write-off		-		(8,220,754	)
Exchange rate effect		129,496		(48,669	)
Ending balance	$	2,457,949	$	2,297,491

For the three months ended December 31, 2020 and 2019, the provision for doubtful accounts was $2,609 and $258,561, respectively. For the six months ended December 31, 2020 and 2019, the provision for doubtful accounts was $33,418 and $1,282,492, respectively. The Company recovered $2,456 and $76,497 of accounts receivable for the six months ended December 31, 2020 and 2019, respectively.

Note 4. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	December 31,			June 30,
	2020			2020
Advances to customers*	$	11,375,759		$	10,004,893
Employee business advances		4,241			51,334
Total		11,380,000			10,056,227
Less: allowances for doubtful accounts		(10,796,084	)		(10,005,193	)
Other receivables, net	$	583,916		$	51,034

* As of December 31, 2020 and 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 aforementioned 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 had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. On December 31, 2020, the Company entered another contract to advance $580,000 as deposit on behalf of customer and it will be repaid to the Company when the contract is fulfilled.

Movement of allowance for doubtful accounts are as follows:

	December 31, 2020			June 30, 2020
Beginning balance	$	10,005,193		$	-
Provision for doubtful accounts, net of recovery		(18,500	)		10,055,203
Less: write-off		(11,673	)		(1,763	)
Exchange rate effect		821,064			(48,247	)
Ending balance	$	10,796,084		$	10,005,193

For the three and six months ended December 31, 2020, the provision for doubtful accounts of other receivables was $11,673 with recovery of $30,173. There was no additional allowance or recovery of other receivables for the three and six months ended December 31, 2019. The Company wrote off $11,673 and nil of other receivables for the three months ended December 31, 2020 and 2019, respectively. The Company wrote off $11,673 and $1,763 of other receivables for the six months ended December 31, 2020 and 2019, respectively.

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Note 5. ADVANCES TO SUPPLIERS

The Company’s advances to suppliers – third parties are as follows:

	December 31,		June 30,
	2020		2020
Freight fees (1)	$	80,804	$	48,875

(1) The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from January to March 2021.

Note 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

The Company’s prepaid expenses and other assets are as follows:

	December 31,		June 30,
	2020		2020
Prepaid income taxes	$	11,929	$	48,924
Other (including prepaid professional fees, rent, listing fees)		51,196		41,458
Total	$	63,125	$	90,382

Note 7. OTHER LONG-TERM ASSETS - DEPOSITS

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

	December 31,		June 30,
	2020		2020
Rental and utilities deposits	$	56,478	$	64,663
Freight logistics deposits (1)		3,147,845		2,910,327
Total other long-term assets - deposits	$	3,204,323	$	2,974,990

(1) Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. 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. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company.

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Note 8. PROPERTY AND EQUIPMENT, NET

The Company’s net property and equipment as follows:

	December 31,			June 30,
	2020			2020
Buildings	$	206,174		$	190,518
Motor vehicles*		561,462			516,999
Computer equipment*		104,638			97,172
Office equipment*		47,169			43,587
Furniture and fixtures*		77,589			71,697
System software*		116,778			107,911
Leasehold improvements		851,398			786,745
Total		1,965,208			1,814,629
Less: Accumulated depreciation and amortization		(1,540,882	)		(1,291,339	)
Property and equipment, net	$	424,326		$	523,290

Depreciation and amortization expenses for the three months ended December 31, 2020 and 2019 were $70,853 and $66,601, respectively. Depreciation and amortization expenses for the six months ended December 31, 2020 and 2019 were $138,739 and $187,121, respectively.

* For the three and six months ended December 31, 2019, an impairment of $127,177 was recorded due to continued decrease in revenues from the inland transportation management segment, no impairment was recorded for same period 2020.

Note 9. INTANGIBLE ASSETS, NET

Net intangible assets consisted of the following:

	December 31,			June 30,
	2020			2020
Full service logistics platforms	$	190,000		$	190,000
Less: Accumulated amortization		(190,000	)		(163,611	)
Intangible assets, net	$	-		$	26,389

The full service logistics platform was placed in services in December 2017. The platforms are being amortized over three years. Amortization expenses amounted to $10,556 and $15,833 for the three months ended December 31, 2020 and 2019, respectively. Amortization expenses amounted to $26,389 and $49,890 for the six months ended December 31, 2020 and 2019, respectively.

In addition, first phase of the ERP system was placed in use in July 2019 and is being amortized over three years. However, due to the continued decrease in revenues from the inland transportation management segment, the Company recorded an impairment of $200,455 for the three and six months ended December 31, 2019. No impairment was recorded for same period 2020.

Note 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

	December 31,		June 30,
	2020		2020
Salary and reimbursement payable	$	504,022	$	795,855
Professional fees payable		345,631		629,524
Credit card payable		5,535		217,940
Total	$	855,188	$	1,643,319

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Note 11. LOANS PAYABLE

On May 11, 2020, the Company received loan proceeds in the amount of approximately $124,570 under the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended 24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The loan forgiveness amount will be reduced for any Economic Injury Disaster Loan (“EIDL”) advance that the Company receives. The amount of loan forgiveness will be further reduced if the borrower terminates employees or reduces salaries during the eight-week period. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan and intends to file for loan forgiveness in fiscal year of 2021, there can be no assurance that the full amount of the loan will be forgiven. As of December 31, 2020, $124,570 of loan payable remains outstanding.

On May 26, 2020, the Company received an advance in the amount of $155,900 from under the SBA EIDL program administered by the SBA pursuant to the CARES Act. Such advance amount will reduce the Company’s PPP loan forgiveness amount described above. In accordance with the requirements of the CARES Act, the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter. The SBA loans are scheduled to mature on May 22, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable including principal and interest, of $731 commencing on May 22, 2021. The balance of principal and interest will be payable 30 years from the date of May 22, 2020. $5,900 of the loan will be forgiven. As of December 31, 2020, $155,900 of loan payable remains outstanding. Interest expense for the three and six months ended December 31, 2020 for this loan was $1,418 and $2,820, respectively.

Loan repayment schedule for the EIDL loans is as follows:

Twelve Months Ending December 31,	Loan Amount
2021	$	7,898
2022		3,092
2023		3,210
2024		3,332
2025		3,460
Thereafter		134,908
Total loan payments	$	155,900

Note 12. LEASES

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. All of the Company’s leases are classified as operating leases.

The Company has several vehicle lease agreements and office lease agreements with lease terms ranging from two to three years. Upon adoption of ASU 2016-02, the Company recognized lease liabilities of approximately $0.2 million, with corresponding ROU assets of approximately the same amount based on the present value of the future minimum rental payments of leases, using a weighted average discount rate of approximately 9.38%. As of December 31, 2020, ROU assets and lease liabilities amounted to $224,950 and $245,232 (including $166,572 from lease liabilities current portion and $78,660 from lease liabilities noncurrent portion), respectively.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration and the weighted average remaining lease terms are 1.49 years.

17

For the three months ended December 31, 2020 and 2019, rent expense amounted to approximately $81,000 and $80,000, respectively. For the six months ended December 31, 2020 and 2019, rent expense amounted to approximately $157,000 and $160,000, respectively.

The three-year maturity of the Company’s lease obligations is presented below:

Twelve Months Ending December 31,	Operating Lease Amount
2021	$	181,667
2022		81,596
Total lease payments		263,263
Less: Interest		(18,031	)
Present value of lease liabilities	$	245,232

Note 13. EQUITY

Stock issuance:

On September 17, 2020, the Company entered into certain securities purchase agreement with certain “non-U.S. Persons” as defined in Regulation S of the Securities Act of 1933, as amended, pursuant to which the Company agreed to sell an aggregate of 720,000 shares of the Company’s common stock, no par value, and warrants to purchase 720,000 Shares at a per share purchase price of $1.46. The net proceeds to the Company from such Offering were approximately $1.05 million. The warrants will be exercisable on March 16, 2021 at an exercise price of $1.825 for cash. The warrants may also be exercised cashlessly if at any time after March 16, 2021, there is no effective registration statement registering, or no current prospectus available for, the resale of the warrant shares. The warrants will expire on March 16, 2026. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise the warrants if the Company’s common stock trades at or above $4.38 for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date.

On November 2 and November 3, 2020, the Company issued an aggregate of 860,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”), each convertible into one share of common stock, no par value, of Company, upon the terms and subject to the limitations and considerations set forth in the Certificate of Designation of the Series A Preferred Stock, and warrants to purchase up to 1,032,000 shares of common stock. The purchase price for each share of Series A Preferred Stock and accompanying warrants is $1.66. The net proceeds to the Company from this offering was approximately $1.43 million, not including any proceeds that may be received upon cash exercise of the warrants. The warrants will be exercisable six (6) months following the date of issuance at an exercise price of $1.99 for cash. The warrants may also be exercised cashlessly if at any time after the six-month anniversary of the issuance date, there is no effective registration statement registering, or no current prospectus available for, the resale of the warrant Shares. The warrants will expire five and a half (5.5) years from the date of issuance. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise of the warrants if the closing price of the common stock equals or exceeds $5.97 for twenty (20) consecutive trading days, provided, among other things, that the shares issuable upon exercise of the warrants are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date. As of December 31, 2020, the Series A Preferred Stock have not been converted to common stock of the Company.

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On December 8, 2020, the Company entered into a securities purchase agreement with the investors specified on the signature page thereto pursuant to which the Company agreed to sell to the investors, and the investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 1,560,000 shares of the common stock of the Company, no par value per share, at a purchase price of $3.10 per share, for aggregate gross proceeds to the Company of $4,836,000. The Company also agreed to sell to the Investors warrants to purchase up to an aggregate of 1,170,000 shares of common stock at an exercise price of $3.10 per share. The warrants shall be initially exercisable beginning on December 11, 2020 and expire three and a half (3.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices.

The Company’s outstanding warrants are classified as equity since they qualify for exception from derivative accounting as they are considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants were recorded as additional paid-in capital from common stock  

Following is a summary of the status of warrants outstanding and exercisable as of December 31, 2020: 

	Warrants		Weighted Average Exercise Price
Warrants outstanding, as of June 30, 2020		400,000	$	8.75
Issued		2,922,000		2.39
Exercised		-		-
Expired		-		-
Warrants outstanding, as of December 31, 2020		3,322,000	$	3.16
Warrants exercisable, as of December 31, 2020		3,322,000	$	3.16

Warrants Outstanding	Warrants Exercisable		Weighted Average Exercise Price		Average Remaining Contractual Life
2018 Series A, 400,000		400,000	$	8.75	2.70 years
2020 warrants, 720,000		720,000	$	1.825	5.21 years
2020 warrants, 1,032,000		1,032,000	$	1.99	5.34 years
2020 warrants, 1,170,000		1,170,000	$	3.10	3.44 years

On December 9, 2019, the Company authorized the cancellation of the 35,099 of the Company’s treasury shares. The shares were cancelled as of June 30, 2020. The cancellation has no effect on the Company’s total shareholders’ equity and earnings per share.

After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock.

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Stock based compensation:

In March 2017, the Company entered into a consulting and advisory services agreement with a consulting entity, which provides management consulting services that include marketing program design and implementation and cooperative partner selection and management. The service period began in March 2017 and will end in February 2020. The Company issued 50,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $12.65 per share on March 22, 2017 to the consultant.  These shares were valued at $632,500 and the consulting expense was $52,709 and $105,417 for the three and six months ended December 31, 2019, respectively.

On June 7, 2018, the Company issued 80,000 shares of common stock with a fair value of $508,000 to a consulting entity pursuant to a service agreement. The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June 2020. The consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal installments. The Company recorded legal expense of $63,500 and $127,000 for the three and six months ended December 31, 2019, respectively.

On April 8, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from April 8, 2019 to October 7, 2019. The Company issued 60,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $4.25 per share on April 16, 2019 to the consulting entity. These shares were valued at $255,000. The Company recorded compensation expense of $0 and $127,500 for the three and six months ended December 31, 2019, respectively.

On July 1, 2019, the Company issued 120,000 restricted shares of common stock with a fair value of $432,000 to a China-based company that specializes in the port agency business and/or its designees pursuant to a consulting service agreement. The scope of services primarily covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded compensation expense of $108,000 and $216,000 for the three and six months ended December 31, 2019, respectively.

Included in a Board resolution dated January 30, 2016, the Company’s CEO is authorized to grant to the employees up to one million shares under the Plan. On July 22, 2019, the Company granted 18,000 shares of restricted common stock valued at $3.50 per share on the grant date with an aggregated fair value of $63,000 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $0 and $63,000 for the three and six months ended December 31, 2019, respectively.

On October 3, 2019, the Company issued 230,000 shares of common stock valued at $0.68 per share on the grant date with an aggregated fair value of $156,400 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $156,400 for the three and six months ended December 31, 2019.

On October 14, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from October 14, 2019 to April 13, 2020. The Company issued 300,000 shares of common stock valued at $222,000 as remuneration for the services. The shares bear a standard restrictive legend under the Securities Act of 1933, as amended. The Company recorded compensation expense of $111,000 for the three and six months ended December 31, 2019.

 During the three months ended December 31, 2020 and 2019, nil and $491,609 were recorded as stock-based compensation expense, respectively. During the six months ended December 31, 2020 and 2019, nil and $906,317 were recorded as stock-based compensation expense, respectively. 

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Stock Options: 

A summary of the outstanding options is presented in the table below:

	Options		Weighted Average Exercise Price
Options outstanding, as of June 30, 2020		17,000	$	6.05
Granted		-		-
Exercised		-		-
Cancelled, forfeited or expired		-		-
Options outstanding, as of December 31, 2020		17,000	$	6.05
Options exercisable, as of December 31, 2020		17,000	$	6.05

Following is a summary of the status of options outstanding and exercisable at December 31, 2020:

Outstanding Options					Exercisable Options
Exercise Price		Number		Average Remaining Contractual Life	Average Exercise Price		Number		Average Remaining Contractual Life
$	10.05		2,000	2.08 years	$	10.05		2,000	2.08 years
$	5.50		15,000	0.56 years	$	5.50		15,000	0.56 years
			17,000					17,000

Note 14. NON-CONTROLLING INTEREST

The Company’s non-controlling interest consists of the following:

	December 31,			June 30,
	2020			2020
Sino-China:
Original paid-in capital	$	356,400		$	356,400
Additional paid-in capital		1,044			1,044
Accumulated other comprehensive income		61,176			376,398
Accumulated deficit		(6,206,533	)		(6,199,188	)
		(5,787,913	)		(5,465,346	)
Trans Pacific Logistics Shanghai Ltd.		(1,163,405	)		(1,077,015	)
Total	$	(6,951,318	)	$	(6,542,361	)

Note 15. COMMITMENTS AND CONTINGENCIES

Contingencies

The Labor Contract Law of the PRC requires employers to insure the liability of the severance payments for terminated employees that have worked for the employers for at least two years prior to January 1, 2008. The employers will be liable for one month for severance pay for each year of the service provided by the employees. As of December 31, 2020 and June 30, 2020, the Company has estimated its severance payments of approximately $101,000 and $84,000, respectively, which have not been reflected in its unaudited condensed consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future.

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Sino-Global has employment agreements with each of Mr. Lei Cao, Ms. Tuo Pan and Mr. Zhikang Huang. These employment agreements provide for five-year terms that extend automatically in the absence of termination notice provided at least 60 days prior to the anniversary date of the agreement. If the Company fails to provide this notice or if the Company wishes to terminate an employment agreement in the absence of cause, then the Company is obligated to provide at least 30 days’ prior notice. In such case during the initial term of the agreement, the Company would need to pay such executive (i) the remaining salary through the date of December 31, 2023, (ii) two times of the then applicable annual salary if there has been no change in control, as defined in the employment agreements or three-and-half times of the then applicable annual salary if there is a change in control.

Note 16. INCOME TAXES

On March 27, 2020, the CARES Act was enacted and signed into law and includes, among other things, refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods and alternative minimum tax credit refunds. The Company does not at present expect the provisions of the CARES Act to have a material impact on its tax provision given the amount of net operating losses currently available.

The Company’s income tax expenses for the three and six months ended December 31, 2020 and 2019 are as follows:

	For the three months Ended December 31						For the six months Ended December 31
	2020			2019			2020			2019
Current
U.S.	$	(3,450	)	$	-		$	(3,450	)	$	-
PRC		-			(14,747	)		-			(14,747	)
Total income tax expenses		(3,450	)		(14,747	)		(3,450	)		(14,747	)

The Company’s deferred tax assets are comprised of the following:

	December 31, 2020			June 30, 2020
Allowance for doubtful accounts
U.S.	$	1,332,000		$	1,329,000
PRC		3,118,000			2,888,000
Net operating loss
U.S.		2,220,000			1,756,000
PRC		1,492,000			1,490,000
Total deferred tax assets		8,162,000			7,463,000
Valuation allowance		(8,162,000	)		(7,463,000	)
Deferred tax assets, net - long-term	$	-		$	-

The Company’s operations in the U.S. incurred a cumulative U.S. federal net operating loss (“NOL”) of approximately $6,456,000 as of June 30, 2020 which may reduce future federal taxable income. During the three and six months ended December 31, 2020, approximately $1,147,000 and $1,696,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $241,000 and $356,000, respectively. As of December 31, 2020, the Company’s cumulative NOL amounted to approximately $8,152,000 which may reduce future federal taxable income, of which approximately $1,400,000 will expire in 2037 and the remaining balance carried forward indefinitely.

The Company’s operations in China incurred a cumulative NOL of approximately $5,961,000 as of June 30, 2020 which may reduce future taxable income. During the three and six months ended December 31, 2020, approximately $4,000 and $7,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $1,000 and $2,000, respectively. As of December 31, 2020, the Company’s cumulative NOL amounted to approximately $5,968,000 which may reduce future taxable income, of which approximately $677,000 start expiring from 2023 and the remaining balance of NOL will be expired by 2026.

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The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future earnings as a result of the deterioration of trade negotiation between US and China and the outbreak of COVID-19 in 2020. The Company provided a 100% allowance for its DTA as of December 31, 2020. The net increase in valuation for the three and six months ended December 31, 2020 amounted to approximately $429,000 and $699,000, respectively based on management’s reassessment of the amount of the Company’s deferred tax assets that are more likely than not to be realized.

The Company’s taxes payable consists of the following:

	December 31,		June 30,
	2020		2020
VAT tax payable	$	1,139,486	$	1,037,620
Corporate income tax payable		2,353,113		2,180,727
Others		68,952		62,001
Total	$	3,561,551	$	3,280,348

Note 17. CONCENTRATIONS

Major Customers

For the three months ended December 31, 2020, one customer accounted for approximately 99.9% of the Company’s revenues. As of December 31, 2020, two customers accounted for approximately 79.2% and 20.7% of the Company’s accounts receivable, net.

For the three months ended December 31, 2019, three customers accounted for approximately 39.0%, 33.6% and 24.7% of the Company’s revenues, respectively. As of December 31, 2019, three customers accounted for approximately 93.1% of the Company’s gross accounts receivable.

For six months ended December 31, 2020, one customer accounted for approximately 92.9% of the Company’s revenues. As of December 31, 2020, two customers accounted for approximately 79.2% and 20.7% of the Company’s accounts receivable, net.

For the six months ended December 31, 2019, three customers accounted for approximately 38.3%, 32.0% and 26.2% of the Company’s revenues, respectively. As of December 31, 2019, three customers accounted for approximately 93.1% of the Company’s gross accounts receivable.

Major Suppliers

For the three months ended December 31, 2020, two suppliers accounted for approximately 44.3% and 42.1% of the total costs of revenue, respectively.

For the three months ended December 31, 2019, four suppliers accounted for approximately 27.0%, 23.0%, 15.8% and 13.0% of the total cost of revenues, respectively.

For the six months ended December 31, 2019, two suppliers accounted for approximately 46.3% and 37.4% of the total cost of revenues.

For the six months ended December 31, 2019, five suppliers accounted for approximately 39.9%, 14.2%, 12.1%, 11.3% and 11.1% of the total cost of revenues, respectively

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Note 18. 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 three operating segments: (1) shipping agency and management services; (2) freight logistics services and (3) container trucking services.

The following tables present summary information by segment for the three and six months ended December 31, 2020 and 2019, respectively:

	For the Three Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	-		$	1,884,440		$	-		$	1,884,440
Cost of revenues	$	-		$	1,688,464		$	-		$	1,688,464
Gross profit	$	-		$	195,976		$	-		$	195,976
Depreciation and amortization	$	77,809		$	3,600		$	-		$	81,409
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		-	%		10.4	%		-	%		10.4	%

	For the Three Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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. There was no such transaction for the three months ended December 31, 2020.

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	For the six Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	206,845		$	2,814,394		$	-		$	3,021,239
Cost of revenues	$	176,968		$	2,606,722		$	-		$	2,783,690
Gross profit	$	29,877		$	207,672		$	-		$	237,549
Depreciation and amortization	$	158,078		$	7,050		$	-		$	165,128
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		14.4	%		7.4	%		-	%		7.9	%

	For the Six Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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. There was no such transaction for the six months ended December 31, 2020.

Total assets as of:

	December 31,		June 30,
	2020		2020
Shipping Agency and Management Services	$	6,809,748	$	2,531,074
Freight Logistic Services		3,830,485		3,176,165
Container Trucking Services		22,247		30,863
Total Assets	$	10,662,480	$	5,738,102

The Company’s operations are primarily based in the PRC and U.S, where the Company derives all of their revenues. Management also review unaudited condensed consolidated financial results by business locations.

Disaggregated information of revenues by geographic locations are as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

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Note 19. RELATED PARTY TRANSACTIONS

As of December 31, 2020 and 2019, the outstanding amounts due from related parties consist of the following:

	December 31,			June 30,
	2020			2020
Tianjin Zhiyuan Investment Group Co., Ltd.	$	384,331		$	484,331
Less: allowance for doubtful accounts		(38,433	)		(48,433	)
Total	$	345,898		$	435,898

In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) and TEWOO Chemical & Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, “Zhiyuan”). Zhiyuan Investment Group is owned by Mr. Zhang, the largest shareholder of the Company. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment Group whereby it would provide certain advisory services and help control potential commodities loss during the transportation process. The amount due from Zhiyuan Investment Group as of December 31, 2020 was $384,331 and the Company provided a 10% allowance for doubtful accounts of the amount due from Zhiyuan. For the three months ended December 31, 2020 and 2019, the Company recovered nil and $4,091, respectively, of allowance for doubtful accounts of the amount due from Zhiyuan. For the six months ended December 31, 2020 and 2019, the Company recovered $10,000 and $41,341, respectively, of allowance for doubtful accounts of the amount due from Zhiyuan.

As of December 31, 2020, the Company had payable to the Acting CFO of $2,132 which was included in other payable. As of June 30, 2020, the Company had payable to the CEO of $6,279 and to the Acting CFO of $26,570 which were included in other payable. These payments were made on behalf of the Company for the daily business operational activities. 

Note 20. SUBSEQUENT EVENTS

On January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. investors specified on the signature page thereto pursuant to which the Company agreed to sell to the investors, and the Investors agreed to purchase from the Company, an aggregate of 1,086,956 shares of common stock, no par value, and warrants to purchase 5,434,780 shares, for aggregate gross proceeds to the Company of approximately $4.0 million. The purchase price for each share of common stock and five warrants is $3.68, and the exercise price per warrant is $5.00. The Company has received the full amount of payment in January 2021.

On February 6, 2021, the Company entered into a Securities Purchase Agreement with the investors pursuant to which the Company agreed to sell to the Investors, and the investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 1,998,500 shares of the common stock of the Company, no par value per share, at a purchase price of $6.805 per share, for aggregate gross proceeds to the Company of approximately $13.6 million. The Company also agreed to sell to the investors warrants to purchase up to an aggregate of 1,998,500 shares of common stock at an exercise price of $6.805 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $12.3 million. The offering is closed on February 10, 2021. The Company has received the full amount of payment in February 2021.

On February 9, 2021, the Company entered into a securities purchase agreement with the investors pursuant to which the Company agreed to sell to the investors, and the Investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 3,655,000 shares of the common stock of the Company, no par value per share, at a purchase price of $7.80 per share, for aggregate gross proceeds to the Company of $28,509,000. The Company also agreed to sell to the Investors warrants to purchase up to an aggregate of 3,655,000 shares of common stock at an exercise price of $7.80 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $26.2 million. The offering is closed on February 11, 2021. The Company has received the full amount of payment in February 2021.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our company’s financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in the report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors.

Overview

Sino-Global has focused on providing customers with customized shipping agency and freight logistic services but has since begun looking aggressively at diversifying its revenue and service mix by seeking new growth opportunities to expand its business due to increased margin compression. These opportunities have ranged from complementary businesses to other service and product initiatives. In fiscal year of 2021, while we continue to provide our current traditional logistics business, we will integrate the traditional business with modern technology to develop a brand-new business model. In addition, we plan to pursue the development of Bitcoin mining with newly appointed leadership team members who have experience in information technology, including in particular blockchain and cryptocurrency expertise, which we plan to leverage these and other innovative technologies in our business platform. These types of technology may be helpful in expanding our traditional logistics service expertise.

The outbreak of the novel coronavirus (“COVID-19”) starting from late January 2020 in the PRC has spread rapidly to many parts of the world. In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the continually expanding of the COVID-19 pandemic in China and United States, our business, results of operations, and financial condition are still adversely affected. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for us to estimate the impact on our business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19.

The impacts of COVID-19 on our business, financial condition, and results of operations include but are not limited to, the following:

● Due to the recent surge of COVID-19 cases, our U.S. office remains closed since March 2020 and our employees have been working remotely from home. Our office closure and limited activity had led to a slower growth for our operations.

● Our customers have been negatively impacted by the pandemic, which continue to reduce demand for the shipping agency and management as well as freight logistics services in fiscal year 2021. As a result, our revenue, gross profit and net income have been continually impacted in fiscal year 2021. Our revenue and gross profit for the three months ended December 31, 2020 were down by approximately $0.1 million, or 6.8%, and $1.1 million, or 84.5%, respectively. For the six months ended December 31, 2020, revenue and gross profit were down by approximately $0.8 million, or 20.6% and $2.1 million, or 90.0%, respectively.

● Our suppliers have been and could continue to be negatively impacted by the COVID-19 outbreak, which may continually impact our cost of freight, or result in higher cost of revenue, which may in turn materially adversely affect our financial condition and operating results in coming months.

Company Structure

We, founded in 2001, are a non-asset based global shipping and freight logistics integrated solutions provider. We provide tailored solutions and value-added services for our customers to drive efficiency and control in related steps throughout the entire shipping and freight logistics chain. We conduct our business primarily through our wholly-owned subsidiaries in the People’s Republic of China (the “PRC” or “China”) (including Hong Kong) and the U.S., where a majority of our clients are located.

We operate in three operating segments, including (1) shipping agency and management services, operated by our subsidiary in the U.S.; (2) freight logistics services, operated by our subsidiaries in the PRC; and (3) container trucking services, operated by our subsidiaries in the U.S.

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Our corporate structure diagram as of the date of this report is as below:

Results of Operations

Comparison of the Three Months ended December 31, 2020 and 2019

Revenues

Revenues decreased by $136,684, or approximately 6.8% from $2,021,124 for the three months ended December 31, 2019 to $1,884,440 for the same period in 2020. The decrease was primarily due to the loss of revenue from our shipping management services and container trucking services during the period as a result of the stalled trade negotiations between the U.S. and China and continuing impact of COVID-19.

For the freight logistics services, we executed some existing contracts that were recognized in the prior period. This segment continues operating as our main revenue source for the fiscal year of 2021.

The following tables present summary information by segments mainly regarding the top-line financial results for the three months ended December 31, 2020 and 2019:

	For the Three Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	-		$	1,884,440		$	-		$	1,884,440
Cost of revenues	$	-		$	1,688,464		$	-		$	1,688,464
Gross profit	$	-		$	195,976		$	-		$	195,976
Depreciation and amortization	$	77,809		$	3,600		$	-		$	81,409
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		-	%		10.4	%		-	%		10.4	%

	For the Three Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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 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. There was no such transaction for the three months ended December 31, 2020.

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	% Changes For the Three Months Ended December 31, 2020 to 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues		(100.0	)%		25.3	%		(100.0	)%		(6.8	)%
Cost of revenues		(100.0	)%		150.6	%		(100.0	)%		123.4	%
Gross profit		(100.0	)%		(76.4	)%		(100.0	)%		(84.5	)%
Depreciation and amortization		(1.7	)%		100.0	%		(100.0	)%		(1.4	)%
Total capital expenditures		(100.0	)%		-	%		-	%		(100.0	)%
Gross margin%		(86.7	)%		(44.8	)%		(12.5	)%		(52.2	)%

Disaggregated information of revenues by geographic locations are as follows:

	December 31,		December 31,
	2020		2019
PRC	$	1,884,440	$	1,503,500
U.S.		-		517,624
Total revenues	$	1,884,440	$	2,021,124

Revenues

(1) Shipping Agency and Management Services

For the three months ended December 31, 2020 and 2019, shipping agency and management services generated revenues of nil and $500,000, respectively, representing an approximately 100% decrease in revenues. We had the decrease in this segment because the shipping management services agreement we entered into with our customer starting in the first quarter of fiscal year 2020 expired on June 30, 2020 and was not renewed due to the uncertainty of the shipping management market which has been negatively impacted by the COVID-19 pandemic. We are in progress to finalize an agreement with customers to resume our shipping agency and management service in the coming months.

(2) Revenues from Freight Logistics Services

Freight logistics services primarily consist of cargo forwarding, brokerage and other freight services. During the three months ended December 31, 2020, revenues increased by $380,940 or approximately 25.3%. The increase was primarily due to the execution of some freight logistics contracts that were delayed in the prior months due to impact of COVID-19.

For the three months ended September 30, 2019, we acted as an agent in arranging the relationship between the customer and the third-party service provider and did not control the services rendered to the customer and our revenues on freight logistics contacts were accounted for on a net basis. For all the freight logistics services that we provided to our clients for the three months ended December 31, 2020, we acted as principal and controlled the freight logistics services which we can recognize our revenue much faster in comparison with the same period in 2019.

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(3) Revenues from Container Trucking Services

For the three months ended December 31, 2020 and 2019, revenues generated from container trucking services were nil and $17,624, respectively. Overall revenues from this segment decreased by $17,624 or 100.0%. The decrease in revenues from this segment was primarily due to expiration of container trucking services contracts with our customers as the pending trade negotiations between the U.S. and China. The related gross profit decreased by $2,209 from $2,209 gross profit for the three months ended December 31, 2019 to nil for the same period in 2020. We do not expect an increase in revenue from this segment in the foreseeable future due to the current U.S.-China trade dynamics. However, we plan to continue to provide services on an as needed basis on short-term contracts.

Operating Costs and Expenses

Operating costs and expenses increased by $706,151 or approximately 30.0%, from $2,354,119 for the three months ended December 31, 2019 to $3,060,270 for the three months ended December 31, 2020. This increase was mainly due to the increase in cost of revenues and general and administrative expenses, offset by provision for doubtful accounts and stock-based compensation as discussed below. 

The following table sets forth the components of our costs and expenses for the periods indicated:

	For the Three Months Ended December 31,
	2020						2019						Change
	US$			%			US$			%			US$			%
Revenues		1,884,440			100.0	%		2,021,124			100.0	%		(136,684	)		(6.8	)%
Cost of revenues		1,688,464			89.6	%		755,645			37.4	%		932,819			123.4	%
Gross margin		10.4	%		N/A			62.6	%		N/A			(52.2	)%		N/A
Selling expenses		73,462			3.9	%		126,125			6.2	%		(52,663	)		(41.8	)%
General and administrative expenses		1,314,235			69.7	%		702,064			34.7	%		612,171			87.2	%
Provision for doubtful accounts, net of recovery		(15,891	)		(0.8	)%		278,676			13.8	%		(294,567	)		(105.7	)%
Stock-based compensation		-			-			491,609			24.3	%		(491,609	)		(100	)%
Total costs and expenses		3,060,270			162.4	%		2,354,119			116.4	%		706,151			30.0	%

Cost of Revenues

Cost of revenues consisted primarily of freight costs to various freight carriers, cost of labor, other overhead and sundry costs. Cost of revenues was $1,688,464 for the three months ended December 31, 2020, an increase of $932,819, or approximately 123.4%, as compared to $755,645 for the same period in 2019. The overall cost of revenues as a percentage of our revenues increased from approximately 37.4% for the three months ended December 31, 2019, to approximately 89.6% for the same period in 2020. The increase of costs was mainly due to the fact that we started to act as principal and controlled our freight logistics services, and the costs for shipping agency which included service fees from subcontractors were higher in 2020 than that in 2019 in which we provided shipping management service utilizing our operational staffs. In addition, the costs of our PRC domestic and export services to our freight carriers were higher for the three months ended December 31, 2020 compared to the same period in 2019 as our freight carriers have been negatively impacted by the COVID-19 pandemic so the unit price our freight carriers charged us for domestic logistics services was increased. As a result, our gross profit margin decreased by approximately 52.2% from approximately 62.6% for the three months ended December 31, 2019 to approximately 10.4% for the same period in 2020.

Selling Expenses

Our selling expenses consisted primarily of salaries and travel expenses for our sales representatives. For the three months ended December 31, 2020, we had $73,462 of selling expenses, as compared to $126,125 for the same period in 2019, which represents a decrease of $52,663 or approximately 41.8%. The decrease was mainly due to approximately $50,000 decrease in salaries and travel expenses as we have less employees and limited activities for our selling team under COVID-19 comparing to the same period of 2019.

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General and Administrative Expenses

Our general and administrative expenses consist primarily of salaries and benefits, travel expenses for administration department, office expenses, regulatory filing and professional service fees including audit, legal and IT consulting. For the three months ended December 31, 2020, we had $1,314,235 of general and administrative expenses, as compared to $702,064 for the same period in 2019, representing an increase of $612,171, or approximately 87.2%. The increase was mainly due to the increase in professional expenses as we spend more resources on business development to expand our business, such expenses includes due diligence and professional fees for seeking potential acquisition target, and consulting expenses for new business development.

Provision for Doubtful Accounts, net of recovery

We made $14,282 provision for doubtful accounts and offset by the recoveries of other receivable of $30,173 for the three months ended December 31, 2020 compared to $278,676 provision for doubtful accounts for the same period in 2019, a decrease of $294,567, or approximately 105.7%. This decrease of provision for doubtful accounts was mainly due to the decrease in revenue and collections of prior outstanding account and other receivables.

Stock-based Compensation

Stock-based compensation was nil for the three months ended December 31, 2020, a decrease of $491,609 or 100.0%, as compared to $491,609 for the same period in 2019. Stock-based compensation decreased significantly from the three months ended December 31, 2019 to the same period in 2020 due to no stock award was granted as a result of the decline in revenue.

Operating loss

We had an operating loss of $1,175,830 for the three months ended December 31, 2020, compared to $332,995 for the same period in 2019. Such change was the result of the combination of the changes discussed above.

Taxation

We recorded income tax expense $3,450 and $14,747 for three months ended December 31, 2020 and 2019, respectively.

We have incurred a cumulative U.S. federal net operating loss (“NOL”) of approximately $6,456,000 as of June 30, 2020, which may reduce future federal taxable income. The NOL generated prior to the year ended June 30, 2017 amounted to approximately $1,400,000 will expire in 2037 and the remaining balance carried forward indefinitely. During the three months ended December 31, 2020, approximately $1,147,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $241,000.

Our operations in China have incurred a cumulative a cumulative NOL of approximately $5,961,000 as of June 30, 2020, which may reduce future taxable income. The NOL amounted to approximately $677,000 start expiring from 2023 and the remaining balance of NOL will be expired by 2026. During the three months ended December 31, 2020, approximately $4,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $1,000.

We periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect our future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. We determined that it is more likely than not our deferred tax assets could not be realized due to uncertainty on future earnings as a result of the deterioration of trade negotiation between the U.S. and China. We provided a 100% allowance for its deferred tax assets as of December 31, 2020. The net increase in valuation for the three months ended December 31, 2020 amounted to approximately $429,000 based on management’s reassessment of the amount of our deferred tax assets that are more likely than not to be realized.

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Net loss

As a result of the foregoing, we had a net loss of $1,093,560 for the three months ended December 31, 2020, compared to $363,355 for the same period in 2019. After the deduction of non-controlling interest, net loss attributable to us was $1,102,919 for the three months ended December 31, 2020, compared to $407,333 for the same period in 2019. Comprehensive loss attributable to us was $867,054 for the three months ended December 31, 2020, compared to $57,318 for the same period in 2019.

Comparison of the Six Months ended December 31, 2020 and 2019

Revenues

Revenues decreased by $786,111, or approximately 20.6%, from $3,807,350 for the six months ended December 31, 2019 to $3,021,239 for the same period in 2020. The decrease was primarily due to the loss of revenue from several customer contracts for our shipping management services and no revenue generated from our container trucking services during the period. One of our shipping management services contracts we entered into with customers starting in the first quarter of fiscal year 2020 expired during the quarter. The decrease was also due to the decrease in revenues from container trucking services as our service contracts with customers had expired and there was no new business for this segment partly because of the stalled trade negotiations between the U.S. and China. As some of our existing freight logistics services contacts has been executed during the six months ended December 31, 2020, this segment was our main revenue source for the six months ended December 31, 2020.

The following tables present summary information by segments mainly regarding the top-line financial results for the six months ended December 31, 2020 and 2019:

	For the Six Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	206,845		$	2,814,394		$	-		$	3,021,239
Cost of revenues	$	176,968		$	2,606,722		$	-		$	2,783,690
Gross profit	$	29,877		$	207,672		$	-		$	237,549
Depreciation and amortization	$	158,078		$	7,050		$	-		$	165,128
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		14.4	%		7.4	%		-	%		7.9	%

	For the Six Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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 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. There was no such transaction for the six months ended December 31, 2020.

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	% Changes For the Six Months Ended December 31, 2020 to 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues		(79.3	)%		2.5	%		(100.0	)%		(20.6	)%
Cost of revenues		9.0	%		113.4	%		(100.0	)%		93.4	%
Gross profit		(96.4	)%		(86.4	)%		(100.0	)%		(90.0	)%
Depreciation and amortization		(13.1	)%		(8.3	)%		(100.0	)%		(30.3	)%
Total capital expenditures		(100.0	)%		-	%		-	%		(100.0	)%
Gross margin%		(69.4	)%		(48.1	)%		(10.4	)%		(54.3	)%

Disaggregated information of revenues by geographic locations are as follows:

	December 31,		December 31,
	2020		2019
PRC	$	2,814,394	$	2,745,641
U.S.		206,845		1,061,709
Total revenues	$	3,021,239	$	3,807,350

Revenues

(1) Shipping Agency and Management Services

For the six months ended December 31, 2020 and 2019, shipping agency and management services generated revenues of $206,845 and $1,000,000, respectively, representing an approximately 79.3% decrease in revenues. The decrease in this segment was because the shipping agency and management services agreements we entered in fiscal year 2020 have expired and were not renewed due to the uncertainty of the shipping management market which has been negatively impacted by the COVID-19 pandemic. We are in progress to finalize an agreement with customers to resume our shipping agency and management service in the coming months.

(2) Revenues from Freight Logistics Services

Freight logistics services primarily consist of cargo forwarding, brokerage and other freight services. During the six months ended December 31, 2020, revenues were comparable to the same period 2019.

For the six months ended December 31, 2019, we acted as an agent in arranging the relationship between the customer and the third-party service provider and did not control the services rendered to the customer and our revenues on freight logistics contacts were accounted for on a net basis. For all the freight logistics services that we provided to our clients for the six months ended December 31, 2020, we acted as principal and controlled the freight logistics services which we can recognize our revenue much faster in comparison with the same period in 2019.

(3) Revenues from Container Trucking Services

For the six months ended December 31, 2020 and 2019, revenues generated from container trucking services were nil and $61,709, respectively. Overall revenues from this segment decreased by $61,709 or 100.0%. The decrease in revenues from this segment was primarily due to expiration of container trucking services contracts with our customers as the pending trade negotiations between the U.S. and China. The related gross profit decreased by $6,395 from $6,395 gross profit for the six months ended December 31, 2019 to nil for the same period in 2020. We do not expect an increase in revenue from this segment in the foreseeable future due to the current U.S.-China trade dynamics. However, we plan to continue to provide services on an as needed basis on short-term contracts.

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Operating Costs and Expenses

Operating costs and expenses decreased by $944,212 or approximately 16.0%, from $5,890,425 for the six months ended December 31, 2019 to $4,946,213 for the six months ended December 31, 2020. This decrease was mainly due to the decrease in cost of revenues and general and administrative expenses, offset by selling expenses, impairment loss of fixed assets and intangible asset, provision for doubtful accounts and stock-based compensation as discussed below. 

The following table sets forth the components of our costs and expenses for the periods indicated:

	For the Six Months Ended December 31,
	2020						2019						Change
	US$			%			US$			%			US$			%
Revenues		3,021,239			100.0	%		3,807,350			100.0	%		(786,111	)		(20.6	)%
Cost of revenues		2,783,690			92.1	%		1,439,049			37.8	%		1,344,641			93.4	%
Gross margin		7.9	%		N/A			62.2	%		N/A			(54.3	)%		N/A
Selling expenses		142,392			4.7	%		256,154			6.7	%		(113,762	)		(44.4	)%
General and administrative expenses		2,017,669			66.8	%		1,793,519			47.1	%		224,150			(12.5	)%
Impairment loss of fixed assets and intangible asset		-			-			327,632			8.6	%		(327,632	)		(100.0	)%
Provision for doubtful accounts, net of recovery		2,462			0.1	%		1,167,754			30.7	%		(1,165,292	)		(99.8	)%
Stock-based compensation		-			-			906,317			23.8	%		(906,317	)		(100.0	)%
Total costs and expenses		4,946,213			163.7	%		5,890,425			154.7	%		(944,212	)		(16.0	)%

Cost of Revenues

Cost of revenues consisted primarily of freight costs to various freight carriers, cost of labor, other overhead and sundry costs. Cost of revenues was $2,783,690 for the six months ended December 31, 2020, an increase of $1,344,641, or approximately 93.4%, as compared to $1,439,049 for the same period in 2019. The overall cost of revenues as a percentage of our revenues increased from approximately 37.8% for the six months ended December 31, 2019, to approximately 92.1% for the same period in 2020. The increase of costs was mainly due to the fact that the costs of our PRC domestic and export services to our freight carriers were higher for the six months ended December 31, 2020 compared to the same period in 2019 as our freight carriers have been negatively impacted by the COVID-19 pandemic so the unit price our freight carriers charged us for domestic logistics services was increased. In addition, for certain export contracts that were delayed by the pandemic in fiscal year 2020, we incurred higher costs to reschedule and fulfil those orders in the first quarter of 2021. Starting in the fourth quarter of fiscal year of 2020, we began to provide shipping agency service agreement for Mandarine Bulk as the sole general shipping agency. The increase of costs was also because we just started shipping agency service, and the costs for shipping agency which included service fees from subcontractors were higher in 2020 than that in 2019 in which we provided shipping management service utilizing our operational staffs. As a result, our gross profit margin decreased by approximately 54.3% from approximately 62.2% for the six months ended December 31, 2019 to approximately 7.9% for the same period in 2020.

Selling Expenses

Our selling expenses consisted primarily of salaries and travel expenses for our sales representatives. For the six months ended December 31, 2020, we had $142,392 of selling expenses, as compared to $256,154 for the same period in 2019, which represents a decrease of $113,762 or approximately 44.4%. The decrease was mainly due to approximately $101,000 decrease in salaries and travel expenses as we have less employees and limited activities for our selling team under COVID-19 comparing to the same period of 2019.

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General and Administrative Expenses

Our general and administrative expenses consist primarily of salaries and benefits, travel expenses for administration department, office expenses, regulatory filing and professional service fees including audit, legal and IT consulting. For the six months ended December 31, 2020, we had $2,017,669 of general and administrative expenses, as compared to $1,793,519 for the same period in 2019, representing an increase of $224,150, or approximately 12.5%. The increase was mainly due to the increase in professional expenses of $606,000 as we spend more resources on business development to expand our business, such expenses includes due diligence and professional fees for seeking potential acquisition target, and consulting expenses for new business development, offset by the decrease in IT expense of approximately $97,000, the decrease in depreciation expenses of approximately $79,000 as some of our fixed assets have been fully depreciated and the decrease in salaries and travel expenses of approximately $206,000 due to we have less employees and limited activity under COVID-19 comparing to the same period of 2019. 

Impairment loss of fixed assets and intangible asset

For the six months ended December 31, 2019, we recorded $327,632 of impairment loss of fixed assets and intangible asset due to the continued decrease in revenues generated from the freight logistics services, inland transportation management services and container trucking services segments. There was no such transaction for the six months ended December 31, 2020. 

Provision for Doubtful Accounts, net of recovery

We made $45,091 provision for doubtful accounts and offset by the recoveries of accounts receivable of $2,456, the recoveries of other receivable of $30,173 and other receivable - related party of $10,000 for the six months ended December 31, 2020 compared to $1,285,592 provision for doubtful accounts and offset by the recoveries of accounts receivable of $76,497 and other receivable - related party of $41,341 for the same period in 2019, an decrease of $1,165,292, or approximately 99.8%. This decrease of provision for doubtful accounts was mainly due to the decrease in revenue and collections of prior outstanding account receivables.

Stock-based Compensation

Stock-based compensation was nil for the six months ended December 31, 2020, a decrease of $906,317 or 100.0%, as compared to $906,317 for the same period in 2019. Stock-based compensation decreased significantly from the six months ended December 31, 2019 to the same period in 2020 due to no stock award was granted as a result of the decline in revenue.

Operating loss

We had an operating loss of $1,924,974 for the six months ended December 31, 2020, compared to $2,083,075 for the same period in 2019. Such change was the result of the combination of the changes discussed above.

Taxation

We recorded income tax expense $3,450 and $14,747 for the six months ended December 31, 2020 and 2019, respectively.

We have incurred a cumulative U.S. federal NOL of approximately $6,456,000 as of June 30, 2020, which may reduce future federal taxable income. The NOL generated prior to the year ended June 30, 2017 amounted to approximately $1,400,000 will expire in 2037 and the remaining balance carried forward indefinitely. During the six months ended December 31, 2020, approximately $1,696,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $356,000.

Our operations in China have incurred a cumulative a cumulative NOL of approximately $5,961,000 as of June 30, 2020, which may reduce future taxable income. The NOL amounted to approximately $677,000 start expiring from 2023 and the remaining balance of NOL will be expired by 2026. During the six months ended December 31, 2020, approximately $7,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $2,000.

35

We periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect our future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. We determined that it is more likely than not our deferred tax assets could not be realized due to uncertainty on future earnings as a result of the deterioration of trade negotiation between the U.S. and China. We provided a 100% allowance for its deferred tax assets as of December 31, 2020. The net increase in valuation for the six months ended December 31, 2020 amounted to approximately $699,000 based on management’s reassessment of the amount of our deferred tax assets that are more likely than not to be realized.

Net loss

As a result of the foregoing, we had a net loss of $1,842,016 for the six months ended December 31, 2020, compared to $2,111,979 for the same period in 2019. After the deduction of non-controlling interest, net loss attributable to us was $1,836,710 for the six months ended December 31, 2020, compared to $2,034,686 for the same period in 2019. Comprehensive loss attributable to us was $1,409,594 for the six months ended December 31, 2020, compared to $2,330,882 for the same period in 2019.

Liquidity and Capital Resources

Cash Flows and Working Capital

As of December 31, 2020, we had $4,473,000 in cash (cash on hand and cash in bank). We held approximately 92.9% of our cash in banks located in the U.S., Australia and Hong Kong and held approximately 7.1% of our cash in banks located in the PRC.

As of December 31, 2020, we had the following loans outstanding:

Loans	Maturities		Interest rate			December 31, 2020
Small business administration loan		May 2050		3.75	%	$	155,900
Paycheck protection program loan		-		-		$	124,570

The following table sets forth a summary of our cash flows for the periods as indicated:

	For the Six Months Ended December 31,
	2020			2019
Net cash used in operating activities	$	(2,967,985	)	$	(3,075,643	)
Net cash used in investing activities	$	-		$	(7,020	)
Net cash provided by financing activities	$	6,860,999		$	500,500
Effect of exchange rate fluctuations on cash	$	448,804		$	(440,820	)
Net increase (decrease) in cash	$	4,341,818		$	(3,022,983	)
Cash at the beginning of period	$	131,182		$	3,142,650
Cash at the end of period	$	4,473,000		$	119,667

The following table sets forth a summary of our working capital:

	December 31,		June 30,
	2020		2020			Variation			%
Total Current Assets	$	6,808,881	$	1,913,319		$	4,895,562			255.9	%
Total Current Liabilities	$	5,751,270	$	5,808,865		$	(57,595	)		(1.0	)%
Working Capital (Deficit)	$	1,057,611	$	(3,895,546	)	$	4,953,157			(127.1	)%
Current Ratio		1.18		0.33			0.85			259.4	%

36

In assessing the liquidity, we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. Our liquidity needs are to meet our working capital requirements, operating expenses and capital expenditure obligations. As of December 31, 2020, our working capital was approximately $1.1 million and we had cash of approximately $4.5 million. We believe our revenues and operations will continue to grow and the current working capital is sufficient to support our operations and debt obligations as they become due one year through report date.

We expect to realize the balance of our current assets within the normal operating cycle of a twelve month period. If we are unable to realize its current assets within the normal operating cycle of a twelve month period, we had considered supplementing our available sources of funds through the following sources:

● we will continuously seek equity financing to support its working capital. On January 27, 2021, we entered into a securities purchase agreement with the non-U.S. persons to purchase 1,086,956 shares at a per share purchase price of $3.68 for aggregate proceeds of approximately $4.0 million. We have received the full amount of payment in January 2021. On February 6, 2021, we entered into a securities purchase agreement with the investors to purchase an aggregate of 1,998,500 shares at a per share purchase price of $6.805 for aggregate net proceeds of approximately $12.3 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021. On February 9, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 3,655,000 shares at a per share purchase price of $7.80 for aggregate net proceeds of approximately $26.2 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021;

● other available sources of financing from PRC banks and other financial institutions; and

● financial support and credit guarantee commitments from our shareholders and directors.

Based on the above considerations, our management is of the opinion that we have sufficient funds to meet the future liquidity requirements for at least twelve months from issuance of these unaudited condensed consolidated financial statements.   

Operating Activities 

Our net cash used in operating activities was approximately $3.0 million for the six months ended December 31, 2020. The operating cash outflow for the six months ended December 31, 2020 was primarily attributable to our net loss of $1.8 million, adjusted by non-cash items of approximately $0.2 million of depreciation and amortization expenses of fixed assets and intangible asset. We had an increase in accounts receivables of approximately $0.2 million, an increase in other receivables of approximately $0.9 million, an increase in other long-term assets – deposits of approximately $0.1 million, and a decrease in accrued expenses and other current liabilities of approximately $0.8 million offset by an increase of approximately $0.4 million in deferred revenue s as we signed an agreement with a new client, an increase in taxes payable of approximately $0.1 million and a decrease approximately $0.1 million of due from related parties as a result of collections made during the year.

Our net cash used in operating activities was approximately $3.1 million for the six months ended December 31, 2019 compared to net cash used in operating activities of approximately $4.7 million for the same period in 2018. The operating cash outflow for the six months ended December 31, 2019 was primarily attributable to our net loss of approximately $2.1 million, of which approximately $0.9 million of stock compensation expense, approximately $0.3 million of impairment loss of fixed assets and intangible asset and approximately $1.2 million for provision of doubtful accounts were non-cash expenses. We had an increase in other receivables of approximately $5.9 million as we prepaid certain costs of commodities on behalf of our customers offset by a decrease of approximately $1.6 million in accounts receivable as a result of collections made during the six months.

Investing Activities

We did not have any investing activities for the six months ended December 31, 2020.

Net cash used in investing activities was $7,020 for the six months ended December 31, 2019, mainly for the purchase of computer equipment and making office leasehold improvement.

37

Financing Activities

Net cash provided by financing activities was approximately $6.9 million for the six months ended December 31, 2020 due to cash proceeds received from issuance of common stock to private investors for approximately $5.5 million and cash proceeds received from issuance of preferred stock to a private investor for approximately $1.4 million.

Net cash provided by financing activities was $500,500 for the six months ended December 31, 2019 due to cash proceeds received from issuance of common stock to a private investor.

Critical Accounting Policies

We prepare our unaudited condensed consolidated financial statements in accordance with U.S. GAAP. These accounting principles require us to make judgments, estimates and assumptions on the reported amounts of assets and liabilities at the end of each fiscal period, and the reported amounts of revenues and expenses during each fiscal period. We continually evaluate these judgments and estimates based on our own historical experience, knowledge and assessment of current business and other conditions, our expectations regarding the future based on available information and assumptions that we believe to be reasonable.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. We adopted this ASU on July 1, 2020 and the adoption has no significant impact to our unaudited condensed consolidated financial statements as a whole.

There have been no other material changes during the six months ended December 31, 2020 in our significant accounting policies from those previously disclosed in our annual report for the fiscal year ended June 30, 2020. The discussion of our critical accounting policies are contained in Note 2 to our unaudited condensed consolidated financial statements in this report, “Summary of our Significant Accounting Policies”.  

38

Item 3. Quantitative and Qualitative Disclosures about Market Risk

This Item is not applicable because we are a smaller reporting company.

Item 4. Controls and Procedures 

Evaluation of Disclosure Controls and Procedures

We maintain controls and procedures designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

As of December 31, 2020, we carried out an evaluation, under the supervision of and with the participation of its management, including our Chief Executive Officer and Acting Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing evaluation, Chief Executive Officer and Acting Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) were not effective and adequately designed to ensure that the information required to be disclosed by us in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that such information was accumulated and communicated to the management, including Chief Executive Officer and Acting Chief Financial Officer, in a manner that allowed for timely decisions regarding required disclosure. The assessment stemmed from the following material weaknesses –

● Lack of segregation of duties for accounting personnel who prepared and reviewed the journal entries; and

● Lack of a full time U.S. GAAP personnel in the accounting department to monitor the recording of the transactions.

Changes in Internal Control over Financial Reporting.

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the three months ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

39

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None. 

Item 1A. Risk Factors

This item is not applicable to a smaller reporting company such as us.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Except as previously reported in our Current Reports on Form 8-K, we have not sold any equity securities during the quarter ended December 31, 2020 that were not registered under the Securities Act of 1933, as amended.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information.

None. 

Item 6. Exhibits

The following exhibits are filed herewith:

Number	Exhibit
4.1	Form of Certificate of Designation of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on November 4, 2020)
4.2	Form of Warrant (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed on November 4, 2020)
4.3	Form of Warrant to Purchase Common Stock (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on December 9, 2020)
4.4	Form of Warrant (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on January 28, 2021)
4.5	Form of Warrant (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on February 8, 2021)
4.6	Form of Warrant (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on February 10, 2021)
10.1	Offer Letter between Sino-Global Shipping America, Ltd. and Xiaohuan Huang (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on October 23, 2020)
10.2	Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on November 4, 2020)
10.3	Securities Purchase Agreement dated December 8, 2020 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on December 9, 2020)
10.4	Placement Agreement dated November 13, 2020 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on December 9, 2020)
10.5	Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on January 28, 2020)
10.6	Employment Agreement by and between Mr. Lei Nie and Sino-Global Shipping America, Ltd., dated as of January 28, 2021 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on January 29, 2021)
10.7	Employment Agreement by and between Mr. Xintang You and Sino-Global Shipping America, Ltd., dated as of January 28, 2021 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on January 29, 2021)

40

10.8	Securities Purchase Agreement dated February 6, 2021 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on February 8, 2021)
10.9	Placement Agreement dated February 5, 2021 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on February 8, 2021)
10.10	Securities Purchase Agreement dated February 9, 2021 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on February 10, 2021)
16.1	Letter from Friedman LLP dated October 28, 2020 (incorporated by reference to Exhibit 16.1 to our Current Report on Form 8-K filed on October 28, 2020)
31.1	Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of the Principal Executive Officer and the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Nasdaq Compliance Letter Dated December 16, 2020 (incorporated by reference to Exhibit 16.1 to our Current Report on Form 8-K filed on December 16, 2020)
EX-101.INS	XBRL Instance Document.
EX-101.SCH	XBRL Taxonomy Extension Schema Document.
EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
EX-101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

41

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SINO-GLOBAL SHIPPING AMERICA, LTD.
February 12, 2021	By:	/s/ Lei Cao
		Lei Cao
		Chief Executive Officer
		(Principal Executive Officer)
February 12, 2021	By:	/s/ Tuo Pan
		Tuo Pan
		Acting Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

42

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

AND SECURITIES AND EXCHANGE COMMISSION RELEASE 34-46427

I, Lei Cao, certify that:

(1) I have reviewed this Form 10-Q of Sino-Global Shipping America, Ltd.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 12, 2021	/s/ Lei Cao
	Lei Cao
	Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

AND SECURITIES AND EXCHANGE COMMISSION RELEASE 34-46427

I, Tuo Pan, certify that:

(1) I have reviewed this Form 10-Q of Sino-Global Shipping America, Ltd.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 12, 2021	/s/ Tuo Pan
	Tuo Pan
	Acting Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this quarterly report on Form 10-Q of Sino-Global Shipping America, Ltd. (the “Company”) for the period ended December 31, 2020, as filed with the Securities and Exchange Commission on the date hereof and pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Lei Cao, Chief Executive Officer and Tuo Pan, Acting Chief Financial Officer, each hereby certifies that:

(1) This report containing the financial statements fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the this report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 12, 2021	/s/ Lei Cao
	Lei Cao
	Chief Executive Officer (Principal Executive Officer)

Date: February 12, 2021	/s/ Tuo Pan
	Tuo Pan
	Acting Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2020	Feb. 11, 2021
Document Information Line Items
Entity Registrant Name	Sino-Global Shipping America, Ltd.
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		13,309,244
Amendment Flag	false
Entity Central Index Key	0001422892
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-34024
Entity Incorporation, State or Country Code	VA
Entity Interactive Data Current	Yes

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)		Dec. 31, 2020	Jun. 30, 2020
Current assets
Cash		$ 4,473,000	$ 131,182
Accounts receivable, net		1,262,138	1,155,948
Other receivables, net		583,916	51,034
Advances to suppliers - third parties		80,804	48,875
Prepaid expenses and other current assets		63,125	90,382
Due from related party, net		345,898	435,898
Total Current Assets		6,808,881	1,913,319
Property and equipment, net		424,326	523,290
Right-of-use assets		224,950	300,114
Intangible assets, net			26,389
Other long-term assets - deposits		3,204,323	2,974,990
Total Assets		10,662,480	5,738,102
Current Liabilities
Deferred revenue		470,996	67,083
Accounts payable		564,495	487,692
Lease liabilities - current		166,572	204,391
Taxes payable		3,561,551	3,280,348
Accrued expenses and other current liabilities		855,188	1,643,319
Loan payable - current		132,468	126,032
Total current liabilities		5,751,270	5,808,865
Lease liabilities - noncurrent		78,660	132,699
Loan payable - noncurrent		148,002	154,438
Total liabilities		5,977,932	6,096,002
Commitments and Contingencies
Equity (Deficiency)
Preferred stock, 2,000,000 shares authorized, no par value, 860,000 and nil shares issued and outstanding as of December 31, 2020 and June 30, 2020, respectively		1,427,600
Common stock, 50,000,000 shares authorized, no par value; 5,998,788 and 3,718,788 shares issued and outstanding as of December 3, 2020 and June 30, 2020, respectively*	[1]	33,788,522	28,414,992
Additional paid-in capital		2,334,962	2,334,962
Subscription receivable			(59,869)
Accumulated deficit		(25,258,304)	(23,421,594)
Accumulated other comprehensive loss		(656,914)	(1,084,030)
Total Sino-Global Shipping America Ltd. Stockholders' Equity		11,635,866	6,184,461
Non-controlling Interest		(6,951,318)	(6,542,361)
Total Equity (Deficiency)		4,684,548	(357,900)
Total Liabilities and Equity (Deficiency)		$ 10,662,480	$ 5,738,102

[1] Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020.

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Dec. 31, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, par value (in Dollars per share)
Preferred stock, shares outstanding	860,000
Preferred stock, shares issued	860,000
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value (in Dollars per share)
Common stock, shares issued	5,998,788	3,718,788
Common stock, shares outstanding	5,998,788	3,718,788

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Net revenues		$ 1,884,440	$ 2,021,124	$ 3,021,239	$ 3,807,350
Cost of revenues		(1,688,464)	(755,645)	(2,783,690)	(1,439,049)
Gross profit		195,976	1,265,479	237,549	2,368,301
Selling expenses		(73,462)	(126,125)	(142,392)	(256,154)
General and administrative expenses		(1,314,235)	(702,064)	(2,017,669)	(1,793,519)
Impairment loss of fixed assets and intangible asset					(327,632)
Provision for doubtful accounts, net of recovery		15,891	(278,676)	(2,462)	(1,167,754)
Stock-based compensation			(491,609)		(906,317)
Total operating expenses		(1,371,806)	(1,598,474)	(2,162,523)	(4,451,376)
Operating loss		(1,175,830)	(332,995)	(1,924,974)	(2,083,075)
Other income (loss), net		85,720	(15,613)	86,408	(14,157)
Net loss before provision for income taxes		(1,090,110)	(348,608)	(1,838,566)	(2,097,232)
Income tax expense		(3,450)	(14,747)	(3,450)	(14,747)
Net loss		(1,093,560)	(363,355)	(1,842,016)	(2,111,979)
Net income (loss) attributable to non-controlling interest		9,359	43,978	(5,306)	(77,293)
Net loss attributable to Sino-Global Shipping America, Ltd.		(1,102,919)	(407,333)	(1,836,710)	(2,034,686)
Comprehensive loss
Net loss		(1,093,560)	(363,355)	(1,842,016)	(2,111,979)
Other comprehensive income (loss) - foreign currency		31,038	256,206	23,465	(247,461)
Comprehensive loss		(1,062,522)	(107,149)	(1,818,551)	(2,359,440)
Less: Comprehensive loss attributable to non-controlling interest		(195,468)	(49,831)	(408,957)	(28,558)
Comprehensive loss attributable to Sino-Global Shipping America, Ltd.		$ (867,054)	$ (57,318)	$ (1,409,594)	$ (2,330,882)
Loss per share
Basic and diluted (in Dollars per share)	[1]	$ (0.23)	$ (0.12)	$ (0.42)	$ (0.62)
Weighted average number of common shares used in computation
Basic and diluted (in Shares)	[1]	4,828,788	3,363,802	4,328,571	3,289,674

[1] Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020.

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Condensed Consolidated Statements Of Changes In Equity (Deficiency) (Unaudited) - USD ($)	Preferred Stock	Common Stock		Additional paid-in capital	Treasury Stock		Subscription receivable	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest	Total
Balance at Jun. 30, 2019		$ 26,523,830		$ 2,066,906	$ (417,538)			$ (6,968,700)	$ (671,106)	$ (5,173,622)	$ 15,359,770
Balance (in Shares) at Jun. 30, 2019		3,210,907	[1]		(35,099)	[1]
Stock based compensation to employee		$ 63,000									63,000
Stock based compensation to employee (in Shares)		18,000	[1]			[1]
Stock based compensation to consultants		$ 200,300									200,300
Stock based compensation to consultants (in Shares)		48,000	[1]			[1]
Amortization of shares issued to consultants				180,209							180,209
Foreign currency translation									(646,211)	142,544	(503,667)
Net loss								(1,627,353)		(121,271)	(1,748,624)
Balance at Sep. 30, 2019		$ 26,787,130		2,247,115	$ (417,538)			(8,596,053)	(1,317,317)	(5,152,349)	13,550,988
Balance (in Shares) at Sep. 30, 2019		3,276,907	[1]		(35,099)	[1]
Balance at Jun. 30, 2019		$ 26,523,830		2,066,906	$ (417,538)			(6,968,700)	(671,106)	(5,173,622)	15,359,770
Balance (in Shares) at Jun. 30, 2019		3,210,907	[1]		(35,099)	[1]
Net loss											(2,111,979)
Balance at Dec. 31, 2019		$ 27,308,992		2,299,823				(9,003,386)	(967,302)	(5,202,180)	14,435,947
Balance (in Shares) at Dec. 31, 2019		3,457,908
Balance at Sep. 30, 2019		$ 26,787,130		2,247,115	$ (417,538)			(8,596,053)	(1,317,317)	(5,152,349)	13,550,988
Balance (in Shares) at Sep. 30, 2019		3,276,907	[1]		(35,099)	[1]
Stock based compensation to employee		$ 156,400									156,400
Stock based compensation to employee (in Shares)		46,000
Issuance of common stock to private investor		$ 500,500									500,500
Issuance of common stock to private investor (in Shares)		100,100
Cancellation of treasury stock		$ (417,538)			$ 417,538
Cancellation of treasury stock (in Shares)		(35,099)			35,099
Stock based compensation to consultants		$ 282,500									282,500
Stock based compensation to consultants (in Shares)		70,000
Amortization of shares issued to consultants				52,708							52,708
Foreign currency translation									350,015	(93,809)	256,206
Net loss								(407,333)		43,978	(363,355)
Balance at Dec. 31, 2019		$ 27,308,992		2,299,823				(9,003,386)	(967,302)	(5,202,180)	14,435,947
Balance (in Shares) at Dec. 31, 2019		3,457,908
Balance at Jun. 30, 2020		$ 28,414,992		2,334,962			(59,869)	(23,421,594)	(1,084,030)	(6,542,361)	(357,900)
Balance (in Shares) at Jun. 30, 2020		3,718,788	[1]			[1]
Issuance of common stock to private investor		$ 1,051,200					59,869				1,111,069
Issuance of common stock to private investor (in Shares)		720,000	[1]			[1]
Foreign currency translation									191,251	(198,824)	(7,573)
Net loss								(733,791)		(14,665)	(748,456)
Balance at Sep. 30, 2020		$ 29,466,192		2,334,962				(24,155,385)	(892,779)	(6,755,850)	(2,860)
Balance (in Shares) at Sep. 30, 2020		4,438,788	[1]			[1]
Balance at Jun. 30, 2020		$ 28,414,992		2,334,962			(59,869)	(23,421,594)	(1,084,030)	(6,542,361)	(357,900)
Balance (in Shares) at Jun. 30, 2020		3,718,788	[1]			[1]
Net loss											(1,842,016)
Balance at Dec. 31, 2020	$ 1,427,600	$ 33,788,522		2,334,962				(25,258,304)	(656,914)	(6,951,318)	4,684,548
Balance (in Shares) at Dec. 31, 2020	860,000	5,998,788
Balance at Sep. 30, 2020		$ 29,466,192		2,334,962				(24,155,385)	(892,779)	(6,755,850)	(2,860)
Balance (in Shares) at Sep. 30, 2020		4,438,788	[1]			[1]
Issuance of preferred stock to private investor	$ 1,427,600										1,427,600
Issuance of preferred stock to private investor (in Shares)	860,000
Issuance of common stock to private investor		$ 4,322,330									4,322,330
Issuance of common stock to private investor (in Shares)		1,560,000
Foreign currency translation									235,865	(204,827)	31,038
Net loss								(1,102,919)		9,359	(1,093,560)
Balance at Dec. 31, 2020	$ 1,427,600	$ 33,788,522		$ 2,334,962				$ (25,258,304)	$ (656,914)	$ (6,951,318)	$ 4,684,548
Balance (in Shares) at Dec. 31, 2020	860,000	5,998,788

[1] Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split on July 7, 2020.

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating Activities
Net income (loss)	$ (1,842,016)	$ (2,111,979)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation		906,317
Depreciation and amortization	165,128	237,011
Non-cash lease expense	76,716	78,405
Provision for doubtful accounts, net of recovery	2,462	1,167,754
Impairment loss of fixed assets and intangible asset		327,632
Changes in assets and liabilities
Notes receivable		386,233
Accounts receivable	(190,033)	1,629,174
Other receivables	(881,628)	(5,855,492)
Advances to suppliers - third parties	(28,770)	(66,691)
Prepaid expenses and other current assets	27,277	160,497
Other long-term assets - deposits	(100,746)	96,281
Due from related parties	86,000	413,408
Deferred revenue	401,966
Advances from customers		5,580
Accounts payable	57,265	(63,131)
Taxes payable	140,633	(76,110)
Lease liabilities	(93,459)	(77,118)
Accrued expenses and other current liabilities	(788,780)	(233,414)
Net cash used in operating activities	(2,967,985)	(3,075,643)
Investing Activities
Acquisition of property and equipment		(7,020)
Net cash used in investing activities		(7,020)
Financing Activities
Proceeds from issuance of preferred stock	1,427,600
Proceeds from issuance of common stock	5,433,399	500,500
Net cash provided by financing activities	6,860,999	500,500
Effect of exchange rate fluctuations on cash	448,804	(440,820)
Net increase (decrease) in cash	4,341,818	(3,022,983)
Cash at the beginning of period	131,182	3,142,650
Cash at the end of period	4,473,000	119,667
Supplemental information
Income taxes paid		38,498
Non-cash transactions of operating and investing activities
Transfer of prepayment to intangible asset		218,678
Initial recognition of right-of-use assets and lease liabilities		$ 462,361

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Organization and Nature of Business

6 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND NATURE OF BUSINESS

Note 1. ORGANIZATION AND NATURE OF BUSINESS

Founded in the United States (the “U.S.”) in 2001, Sino-Global Shipping America, Ltd., a Virginia corporation (“Sino-Global” or the “Company”), is a global shipping and freight logistics integrated solution provider. The Company provides tailored solutions and value-added services to its customers to drive efficiency and control in related steps throughout the entire shipping and freight logistics chain. The Company conducts its business primarily through its wholly-owned subsidiaries in the People’s Republic of China (the “PRC” or “China”) (including Hong Kong) and the U.S. where a majority of the Company’s clients are located.

The Company operates in three operating segments including (1) shipping agency and management services, which are operated by its subsidiary in the U.S.; (2) freight logistics services, which are operated by its subsidiary in the PRC; (3) container trucking services, which are operated by its subsidiary in the U.S.

The outbreak of the novel coronavirus (COVID-19) starting from late January 2020 in the PRC has spread rapidly to many parts of the world. In March 2020, the World Health Organization declared the COVID-19 as a pandemic and has resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities in China and the U.S. for the past few months. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and its workforce are concentrated in China and the U.S., the Company’s business, results of operations, and financial condition have been adversely affected for the six months ended December 31, 2020. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19.

After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the Company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock.

On December 14, 2020, the Company incorporated a new entity named “Blumargo IT Solution Ltd.” with 80% ownership in partner with Tianjin Anboweiye Technology Co. to build up hi-tech and information-based logistic services enhance to meet the higher and complicate demand of customers.

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Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All intercompany transactions and balances have been eliminated in consolidation.

Sino-Global Shipping Agency Ltd., a PRC corporation (“Sino-China”), is considered a variable interest entity (“VIE”), with the Company as the primary beneficiary. The Company, through Trans Pacific Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. Sino-China was designed to operate in China for the benefit of the Company. The Company does not receive any payment from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. If Sino-China incurs a net loss during its fiscal year, the Company is not required to absorb such net loss.

As a VIE, Sino-China’s revenues are included in the Company’s total revenues, and any income/loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China.

The Company has consolidated Sino-China’s operating results in accordance with Accounting Standards Codification (“ASC”) 810-10, “Consolidation”. The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China.

The carrying amount and classification of Sino-China’s assets and liabilities included in the Company’s unaudited condensed consolidated balance sheets were as follows:

	December 31,		June 30,
	2020		2020
Current assets:
Cash	$	5,183	$	5,022
Total current assets		5,183		5,022
Deposits		1,740		1,608
Property and equipment, net		37,241		41,171
Total assets	$	44,164	$	47,801
Current liabilities:
Other payables and accrued liabilities	$	43,406	$	39,919
Total liabilities	$	43,406	$	39,919

(b) Fair Value of Financial Instruments

The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3 — Unobservable inputs that reflect management’s assumptions based on the best available information.

The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments.

(c) Use of Estimates and Assumptions

The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.

(d) Translation of Foreign Currency

The accounts of the Company and its subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s functional currency is the U.S. dollar (“USD”) while its subsidiaries in the PRC, including Sino-China, Trans Pacific Shipping Ltd. and Trans Pacific Logistic Shanghai Ltd. report their financial positions and results of operations in Renminbi (“RMB”), its subsidiary Sino-Global Shipping Australia Pty Ltd., reports its financial positions and results of operations in Australian dollar (“AUD”), its subsidiary Sino-Global Shipping Hong Kong reports its financial positions and results of operations in Hong Kong dollar (“HKD”) and its subsidiary Sino-Global Shipping Canada, Inc. reports its financial positions and results of operations in Canadian Dollar (“CAD”). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements in accordance with ASC 830-10, “Foreign Currency Matters”. Assets and liabilities are translated at current exchange rates quoted by the People’s Bank of China at the balance sheets’ dates and revenues and expenses are translated at average exchange rates in effect during the year. The resulting translation adjustments are recorded as other comprehensive loss and accumulated other comprehensive loss as a separate component of equity of the Company, and also included in non-controlling interests.

The exchange rates as of December 31, 2020 and June 30, 2020 and for the three and six months ended December 31, 2020 and 2019 are as follows:

	December 31, 2020		June 30, 2020		Three months ended December 31,				Six months ended December 31,
Foreign currency	Balance Sheet		Balance Sheet		2020 Profits/Loss		2019 Profits/Loss		2020 Profits/Loss		2019 Profits/Loss
RMB:1USD		6.5286		7.0651		6.6254		7.0446		6.7736		7.0296
AUD:1USD		1.2974		1.4514		1.3688		1.4630		1.3840		1.4611
HKD:1USD		7.7536		7.7505		7.7520		7.8256		7.7513		7.8278
CAD:1USD		1.2754		1.3617		1.3038		1.3200		1.3181		1.3200

(e) Cash

Cash consists of cash on hand and cash in bank which are unrestricted as to withdrawal or use. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of December 31, 2020 and June 30, 2020, cash balances of $4,462,063 and $126,720, respectively, were maintained at financial institutions. In China, the deposit insurance system only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). For the balance maintained at U.S. financial institutions, the Federal Deposit Insurance Corporation as it only insured deposits up to $250,000. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2020 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $3,881,953 and $8,780, respectively.

(f) Receivables and Allowance for Doubtful Accounts

Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers’ historical payment history, their current credit-worthiness and current economic trends. Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts. As the Company has focused its development in the shipping management segment, its customer base will be more from smaller privately owned companies that will pay more timely than state owned companies. The Company also considers the economic implications of COVID-19 on its estimates of the allowance and made additional $2,609 and $258,561 of allowance for doubtful accounts of accounts receivable for the three months ended December 31, 2020 and 2019, $33,418 and $1,282,492 of allowance for doubtful accounts of accounts receivable for the six months ended December 31, 2020 and 2019. The Company recovered nil and $22,869 of accounts receivable for the three months ended December 31, 2020 and 2019, respectively. The Company recovered $2,456 and $22,869 of accounts receivable for the six months ended December 31, 2020 and 2019, respectively. For the three and six months ended December 31, 2019 the Company wrote off nil and $99,366. There was no write off for the three and six months ended December 31, 2020. 

Other receivables represent mainly customer advances, prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. The Company made $11,673 allowance for doubtful accounts of other receivables for the three and six months ended December 31, 2020. There was no allowance of other receivables for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2020, $11,673 was written off against other receivables. For the three and six months ended December 31, 2019, nil and $1,763 was written off against other receivables, respectively. The Company recovered $30,173 of other receivables for the three and six months ended December 31, 2020. There was no recovery against other receivables for the three and six months ended December 31, 2019. 

(g) Property and Equipment, net

Property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Buildings	20 years
Motor vehicles	3-10 years
Computer and office equipment	1-5 years
Furniture and fixtures	3-5 years
System software	5 years
Leasehold improvements	Shorter of lease term or useful lives

The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. There was no impairment for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, an impairment of nil and $127,177 were recorded, respectively.

(h) Intangible Assets, net

Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives:

Logistics platform 3 years

The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. There was no impairment for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, an impairment of nil and $200,455 were recorded, respectively.

(i) Revenue Recognition

The Company recognizes revenue which represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company identifies contractual performance obligations and determines whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time.

The Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company’s revenues are recognized at a point in time after all performance obligations are satisfied. 

Contract balances

The Company records receivables related to revenue when the Company has an unconditional right to invoice and receive payment.

Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized.

The Company’s disaggregated revenue streams are described as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Shipping and management agency services	$	-	$	500,000	$	206,845	$	1,000,000
Freight logistics services		1,884,440		1,503,500		2,814,394		2,745,641
Container trucking services		-		17,624		-		61,709
Total	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as deferred revenue.

● Revenues from freight logistics services are recognized when the related contractual services are rendered.   For certain freight logistics contracts that the Company entered into with customers starting in the 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 this contracts are presented net of related costs. For the three months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $12.9 million and $12.0 million, respectively. For the six months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts amounted to approximately $22.0 million and $20.5 million, respectively. There was no such transaction for the three and six months ended December 31, 2020.

● Revenues from container trucking services are recognized when the related contractual services are rendered.

Disaggregated information of revenues by geographic locations are as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

(j) Taxation

Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with U.S. GAAP. Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of December 31, 2020 and June 30, 2020.

Income tax returns for the years prior to 2017 are no longer subject to examination by U.S. tax authorities.

PRC Enterprise Income Tax

PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles (“PRC GAAP”) at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC.

PRC Value Added Taxes and Surcharges

The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. Entities that are VAT general taxpayers are allowed to offset qualified VAT paid to suppliers against their VAT liability. Net VAT liability is recorded in taxes payable on the unaudited condensed consolidated balance sheets.

In addition, under the PRC regulations, the Company’s PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the net VAT payments.

(k) Earnings (loss) per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common stock of the Company by the weighted average number of shares of common stock of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock of the Company were exercised or converted into common stock of the Company. Common stock equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive.

For the three and six months ended December 31, 2020 and 2019, there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss.

(l) Comprehensive Income (Loss)

The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the “FASB”) which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of Stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

(m) Stock-based Compensation

The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee’s requisite service period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received.  

Valuations of stock based compensation are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

(n) Risks and Uncertainties

The Company’s business, financial position and results of operations may be influenced by the political, economic, health and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, health and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and the workforce are concentrated in China and United States, the Company’s business, results of operations, and financial condition have been adversely affected for the three months ended September 30, 2020. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19.

(o) Liquidity

In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of December 31, 2020, the Company’s working capital was approximately $1.1 million and the Company had cash of approximately $4.5 million. The Company believes its revenues and operations will continue to grow and the current working capital is sufficient to support its operations and debt obligations as they become due one year through report date.

The Company expects to realize the balance of its current assets within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company had considered supplementing its available sources of funds through the following sources:

● the Company will continuously seek equity financing to support its working capital. On January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. persons to purchase 1,086,956 shares at a per share purchase price of $3.68 for aggregate proceeds of approximately $4.0 million. The Company has received the full amount of payment in January 2021. On February 6, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 1,998,500 shares at a per share purchase price of $6.805 for aggregate net proceeds of approximately $12.3 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021. On February 9, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 3,655,000 shares at a per share purchase price of $7.80 for aggregate net proceeds of approximately $26.2 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021;

● other available sources of financing from PRC banks and other financial institutions; and

● financial support and credit guarantee commitments from the Company’s shareholders and directors.

Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s future liquidity requirements for at least twelve months from issuance of these unaudited condensed consolidated financial statements.

(p) Recent Accounting Pronouncements

Pronouncements adopted

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted this ASU on July 1, 2020 and the adoption has no significant impact to the Company’s unaudited condensed consolidated financial statements as a whole.

Pronouncements not yet adopted

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after July 1, 2023, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on July 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The amendments in this Update to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 is effective for the Company for annual and interim reporting periods beginning July 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after July 1, 2021, including interim periods within those fiscal years. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements.

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Accounts Receivable, Net

6 Months Ended

Dec. 31, 2020

Accounts Receivable Disclosure [Abstract]

ACCOUNTS RECEIVABLE, NET

Note 3. ACCOUNTS RECEIVABLE, NET

The Company’s net accounts receivable are as follows:

	December 31,			June 30,
	2020			2020
Trade accounts receivable	$	3,720,087		$	3,453,439
Less: allowances for doubtful accounts		(2,457,949	)		(2,297,491	)
Accounts receivable, net	$	1,262,138		$	1,155,948

Movement of allowance for doubtful accounts are as follows:

	December 31, 2020		June 30, 2020
Beginning balance	$	2,297,491	$	5,670,274
Provision for doubtful accounts, net of recovery		30,962		4,896,640
Less: write-off		-		(8,220,754	)
Exchange rate effect		129,496		(48,669	)
Ending balance	$	2,457,949	$	2,297,491

For the three months ended December 31, 2020 and 2019, the provision for doubtful accounts was $2,609 and $258,561, respectively. For the six months ended December 31, 2020 and 2019, the provision for doubtful accounts was $33,418 and $1,282,492, respectively. The Company recovered $2,456 and $76,497 of accounts receivable for the six months ended December 31, 2020 and 2019, respectively.

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Other Receivables, Net

6 Months Ended

Dec. 31, 2020

Receivables [Abstract]

OTHER RECEIVABLES, NET

Note 4. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	December 31,			June 30,
	2020			2020
Advances to customers*	$	11,375,759		$	10,004,893
Employee business advances		4,241			51,334
Total		11,380,000			10,056,227
Less: allowances for doubtful accounts		(10,796,084	)		(10,005,193	)
Other receivables, net	$	583,916		$	51,034

* As of December 31, 2020 and 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 aforementioned 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 had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. On December 31, 2020, the Company entered another contract to advance $580,000 as deposit on behalf of customer and it will be repaid to the Company when the contract is fulfilled.

Movement of allowance for doubtful accounts are as follows:

	December 31, 2020			June 30, 2020
Beginning balance	$	10,005,193		$	-
Provision for doubtful accounts, net of recovery		(18,500	)		10,055,203
Less: write-off		(11,673	)		(1,763	)
Exchange rate effect		821,064			(48,247	)
Ending balance	$	10,796,084		$	10,005,193

For the three and six months ended December 31, 2020, the provision for doubtful accounts of other receivables was $11,673 with recovery of $30,173. There was no additional allowance or recovery of other receivables for the three and six months ended December 31, 2019. The Company wrote off $11,673 and nil of other receivables for the three months ended December 31, 2020 and 2019, respectively. The Company wrote off $11,673 and $1,763 of other receivables for the six months ended December 31, 2020 and 2019, respectively.

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Advances to Suppliers

6 Months Ended

Dec. 31, 2020

Advances To Suppliers [Abstract]

ADVANCES TO SUPPLIERS

Note 5. ADVANCES TO SUPPLIERS

The Company’s advances to suppliers – third parties are as follows:

	December 31,		June 30,
	2020		2020
Freight fees (1)	$	80,804	$	48,875

(1) The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from January to March 2021.

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Prepaid Expenses and Other Current Assets

6 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Note 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

The Company’s prepaid expenses and other assets are as follows:

	December 31,		June 30,
	2020		2020
Prepaid income taxes	$	11,929	$	48,924
Other (including prepaid professional fees, rent, listing fees)		51,196		41,458
Total	$	63,125	$	90,382

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Other Long-Term Assets - Deposits

6 Months Ended

Dec. 31, 2020

Other Longterm Assets Deposits [Abstract]

OTHER LONG-TERM ASSETS - DEPOSITS

Note 7. OTHER LONG-TERM ASSETS - DEPOSITS

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

	December 31,		June 30,
	2020		2020
Rental and utilities deposits	$	56,478	$	64,663
Freight logistics deposits (1)		3,147,845		2,910,327
Total other long-term assets - deposits	$	3,204,323	$	2,974,990

(1) Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. 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. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company.

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Property and Equipment, Net

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

Note 8. PROPERTY AND EQUIPMENT, NET

The Company’s net property and equipment as follows:

	December 31,			June 30,
	2020			2020
Buildings	$	206,174		$	190,518
Motor vehicles*		561,462			516,999
Computer equipment*		104,638			97,172
Office equipment*		47,169			43,587
Furniture and fixtures*		77,589			71,697
System software*		116,778			107,911
Leasehold improvements		851,398			786,745
Total		1,965,208			1,814,629
Less: Accumulated depreciation and amortization		(1,540,882	)		(1,291,339	)
Property and equipment, net	$	424,326		$	523,290

Depreciation and amortization expenses for the three months ended December 31, 2020 and 2019 were $70,853 and $66,601, respectively. Depreciation and amortization expenses for the six months ended December 31, 2020 and 2019 were $138,739 and $187,121, respectively.

* For the three and six months ended December 31, 2019, an impairment of $127,177 was recorded due to continued decrease in revenues from the inland transportation management segment, no impairment was recorded for same period 2020.

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Intangible Assets, Net

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

Note 9. INTANGIBLE ASSETS, NET

Net intangible assets consisted of the following:

	December 31,			June 30,
	2020			2020
Full service logistics platforms	$	190,000		$	190,000
Less: Accumulated amortization		(190,000	)		(163,611	)
Intangible assets, net	$	-		$	26,389

The full service logistics platform was placed in services in December 2017. The platforms are being amortized over three years. Amortization expenses amounted to $10,556 and $15,833 for the three months ended December 31, 2020 and 2019, respectively. Amortization expenses amounted to $26,389 and $49,890 for the six months ended December 31, 2020 and 2019, respectively.

In addition, first phase of the ERP system was placed in use in July 2019 and is being amortized over three years. However, due to the continued decrease in revenues from the inland transportation management segment, the Company recorded an impairment of $200,455 for the three and six months ended December 31, 2019. No impairment was recorded for same period 2020.

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Accrued Expenses and Other Current Liabilities

6 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Note 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

	December 31,		June 30,
	2020		2020
Salary and reimbursement payable	$	504,022	$	795,855
Professional fees payable		345,631		629,524
Credit card payable		5,535		217,940
Total	$	855,188	$	1,643,319

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Loans Payable

6 Months Ended

Dec. 31, 2020

Notes and Loans Payable [Abstract]

LOANS PAYABLE

Note 11. LOANS PAYABLE

On May 11, 2020, the Company received loan proceeds in the amount of approximately $124,570 under the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended 24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The loan forgiveness amount will be reduced for any Economic Injury Disaster Loan (“EIDL”) advance that the Company receives. The amount of loan forgiveness will be further reduced if the borrower terminates employees or reduces salaries during the eight-week period. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan and intends to file for loan forgiveness in fiscal year of 2021, there can be no assurance that the full amount of the loan will be forgiven. As of December 31, 2020, $124,570 of loan payable remains outstanding.

On May 26, 2020, the Company received an advance in the amount of $155,900 from under the SBA EIDL program administered by the SBA pursuant to the CARES Act. Such advance amount will reduce the Company’s PPP loan forgiveness amount described above. In accordance with the requirements of the CARES Act, the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter. The SBA loans are scheduled to mature on May 22, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable including principal and interest, of $731 commencing on May 22, 2021. The balance of principal and interest will be payable 30 years from the date of May 22, 2020. $5,900 of the loan will be forgiven. As of December 31, 2020, $155,900 of loan payable remains outstanding. Interest expense for the three and six months ended December 31, 2020 for this loan was $1,418 and $2,820, respectively.

Loan repayment schedule for the EIDL loans is as follows:

Twelve Months Ending December 31,	Loan Amount
2021	$	7,898
2022		3,092
2023		3,210
2024		3,332
2025		3,460
Thereafter		134,908
Total loan payments	$	155,900

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Leases

6 Months Ended

Dec. 31, 2020

Disclosure of Leases [Abstract]

LEASES

Note 12. LEASES

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. All of the Company’s leases are classified as operating leases.

The Company has several vehicle lease agreements and office lease agreements with lease terms ranging from two to three years. Upon adoption of ASU 2016-02, the Company recognized lease liabilities of approximately $0.2 million, with corresponding ROU assets of approximately the same amount based on the present value of the future minimum rental payments of leases, using a weighted average discount rate of approximately 9.38%. As of December 31, 2020, ROU assets and lease liabilities amounted to $224,950 and $245,232 (including $166,572 from lease liabilities current portion and $78,660 from lease liabilities noncurrent portion), respectively.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration and the weighted average remaining lease terms are 1.49 years.

For the three months ended December 31, 2020 and 2019, rent expense amounted to approximately $81,000 and $80,000, respectively. For the six months ended December 31, 2020 and 2019, rent expense amounted to approximately $157,000 and $160,000, respectively.

The three-year maturity of the Company’s lease obligations is presented below:

Twelve Months Ending December 31,	Operating Lease Amount
2021	$	181,667
2022		81,596
Total lease payments		263,263
Less: Interest		(18,031	)
Present value of lease liabilities	$	245,232

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Equity

6 Months Ended

Dec. 31, 2020

Equity [Abstract]

EQUITY

Note 13. EQUITY

Stock issuance:

On September 17, 2020, the Company entered into certain securities purchase agreement with certain “non-U.S. Persons” as defined in Regulation S of the Securities Act of 1933, as amended, pursuant to which the Company agreed to sell an aggregate of 720,000 shares of the Company’s common stock, no par value, and warrants to purchase 720,000 Shares at a per share purchase price of $1.46. The net proceeds to the Company from such Offering were approximately $1.05 million. The warrants will be exercisable on March 16, 2021 at an exercise price of $1.825 for cash. The warrants may also be exercised cashlessly if at any time after March 16, 2021, there is no effective registration statement registering, or no current prospectus available for, the resale of the warrant shares. The warrants will expire on March 16, 2026. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise the warrants if the Company’s common stock trades at or above $4.38 for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date.

On November 2 and November 3, 2020, the Company issued an aggregate of 860,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”), each convertible into one share of common stock, no par value, of Company, upon the terms and subject to the limitations and considerations set forth in the Certificate of Designation of the Series A Preferred Stock, and warrants to purchase up to 1,032,000 shares of common stock. The purchase price for each share of Series A Preferred Stock and accompanying warrants is $1.66. The net proceeds to the Company from this offering was approximately $1.43 million, not including any proceeds that may be received upon cash exercise of the warrants. The warrants will be exercisable six (6) months following the date of issuance at an exercise price of $1.99 for cash. The warrants may also be exercised cashlessly if at any time after the six-month anniversary of the issuance date, there is no effective registration statement registering, or no current prospectus available for, the resale of the warrant Shares. The warrants will expire five and a half (5.5) years from the date of issuance. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise of the warrants if the closing price of the common stock equals or exceeds $5.97 for twenty (20) consecutive trading days, provided, among other things, that the shares issuable upon exercise of the warrants are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date. As of December 31, 2020, the Series A Preferred Stock have not been converted to common stock of the Company.

On December 8, 2020, the Company entered into a securities purchase agreement with the investors specified on the signature page thereto pursuant to which the Company agreed to sell to the investors, and the investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 1,560,000 shares of the common stock of the Company, no par value per share, at a purchase price of $3.10 per share, for aggregate gross proceeds to the Company of $4,836,000. The Company also agreed to sell to the Investors warrants to purchase up to an aggregate of 1,170,000 shares of common stock at an exercise price of $3.10 per share. The warrants shall be initially exercisable beginning on December 11, 2020 and expire three and a half (3.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices.

The Company’s outstanding warrants are classified as equity since they qualify for exception from derivative accounting as they are considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants were recorded as additional paid-in capital from common stock  

Following is a summary of the status of warrants outstanding and exercisable as of December 31, 2020: 

	Warrants		Weighted Average Exercise Price
Warrants outstanding, as of June 30, 2020		400,000	$	8.75
Issued		2,922,000		2.39
Exercised		-		-
Expired		-		-
Warrants outstanding, as of December 31, 2020		3,322,000	$	3.16
Warrants exercisable, as of December 31, 2020		3,322,000	$	3.16

Warrants Outstanding	Warrants Exercisable		Weighted Average Exercise Price		Average Remaining Contractual Life
2018 Series A, 400,000		400,000	$	8.75	2.70 years
2020 warrants, 720,000		720,000	$	1.825	5.21 years
2020 warrants, 1,032,000		1,032,000	$	1.99	5.34 years
2020 warrants, 1,170,000		1,170,000	$	3.10	3.44 years

On December 9, 2019, the Company authorized the cancellation of the 35,099 of the Company’s treasury shares. The shares were cancelled as of June 30, 2020. The cancellation has no effect on the Company’s total shareholders’ equity and earnings per share.

After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock.

Stock based compensation:

In March 2017, the Company entered into a consulting and advisory services agreement with a consulting entity, which provides management consulting services that include marketing program design and implementation and cooperative partner selection and management. The service period began in March 2017 and will end in February 2020. The Company issued 50,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $12.65 per share on March 22, 2017 to the consultant.  These shares were valued at $632,500 and the consulting expense was $52,709 and $105,417 for the three and six months ended December 31, 2019, respectively.

On June 7, 2018, the Company issued 80,000 shares of common stock with a fair value of $508,000 to a consulting entity pursuant to a service agreement. The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June 2020. The consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal installments. The Company recorded legal expense of $63,500 and $127,000 for the three and six months ended December 31, 2019, respectively.

On April 8, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from April 8, 2019 to October 7, 2019. The Company issued 60,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $4.25 per share on April 16, 2019 to the consulting entity. These shares were valued at $255,000. The Company recorded compensation expense of $0 and $127,500 for the three and six months ended December 31, 2019, respectively.

On July 1, 2019, the Company issued 120,000 restricted shares of common stock with a fair value of $432,000 to a China-based company that specializes in the port agency business and/or its designees pursuant to a consulting service agreement. The scope of services primarily covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded compensation expense of $108,000 and $216,000 for the three and six months ended December 31, 2019, respectively.

Included in a Board resolution dated January 30, 2016, the Company’s CEO is authorized to grant to the employees up to one million shares under the Plan. On July 22, 2019, the Company granted 18,000 shares of restricted common stock valued at $3.50 per share on the grant date with an aggregated fair value of $63,000 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $0 and $63,000 for the three and six months ended December 31, 2019, respectively.

On October 3, 2019, the Company issued 230,000 shares of common stock valued at $0.68 per share on the grant date with an aggregated fair value of $156,400 under the Plan to one employee, vesting immediately. The Company recorded compensation expense of $156,400 for the three and six months ended December 31, 2019.

On October 14, 2019, the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from October 14, 2019 to April 13, 2020. The Company issued 300,000 shares of common stock valued at $222,000 as remuneration for the services. The shares bear a standard restrictive legend under the Securities Act of 1933, as amended. The Company recorded compensation expense of $111,000 for the three and six months ended December 31, 2019.

 During the three months ended December 31, 2020 and 2019, nil and $491,609 were recorded as stock-based compensation expense, respectively. During the six months ended December 31, 2020 and 2019, nil and $906,317 were recorded as stock-based compensation expense, respectively. 

Stock Options: 

A summary of the outstanding options is presented in the table below:

	Options		Weighted Average Exercise Price
Options outstanding, as of June 30, 2020		17,000	$	6.05
Granted		-		-
Exercised		-		-
Cancelled, forfeited or expired		-		-
Options outstanding, as of December 31, 2020		17,000	$	6.05
Options exercisable, as of December 31, 2020		17,000	$	6.05

Following is a summary of the status of options outstanding and exercisable at December 31, 2020:

Outstanding Options					Exercisable Options
Exercise Price		Number		Average Remaining Contractual Life	Average Exercise Price		Number		Average Remaining Contractual Life
$	10.05		2,000	2.08 years	$	10.05		2,000	2.08 years
$	5.50		15,000	0.56 years	$	5.50		15,000	0.56 years
			17,000					17,000

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Non-controlling interest

6 Months Ended

Dec. 31, 2020

Noncontrolling Interest [Abstract]

NON-CONTROLLING INTEREST

Note 14. NON-CONTROLLING INTEREST

The Company’s non-controlling interest consists of the following:

	December 31,			June 30,
	2020			2020
Sino-China:
Original paid-in capital	$	356,400		$	356,400
Additional paid-in capital		1,044			1,044
Accumulated other comprehensive income		61,176			376,398
Accumulated deficit		(6,206,533	)		(6,199,188	)
		(5,787,913	)		(5,465,346	)
Trans Pacific Logistics Shanghai Ltd.		(1,163,405	)		(1,077,015	)
Total	$	(6,951,318	)	$	(6,542,361	)

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Commitments and Contingencies

6 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 15. COMMITMENTS AND CONTINGENCIES

Contingencies

The Labor Contract Law of the PRC requires employers to insure the liability of the severance payments for terminated employees that have worked for the employers for at least two years prior to January 1, 2008. The employers will be liable for one month for severance pay for each year of the service provided by the employees. As of December 31, 2020 and June 30, 2020, the Company has estimated its severance payments of approximately $101,000 and $84,000, respectively, which have not been reflected in its unaudited condensed consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future.

Sino-Global has employment agreements with each of Mr. Lei Cao, Ms. Tuo Pan and Mr. Zhikang Huang. These employment agreements provide for five-year terms that extend automatically in the absence of termination notice provided at least 60 days prior to the anniversary date of the agreement. If the Company fails to provide this notice or if the Company wishes to terminate an employment agreement in the absence of cause, then the Company is obligated to provide at least 30 days’ prior notice. In such case during the initial term of the agreement, the Company would need to pay such executive (i) the remaining salary through the date of December 31, 2023, (ii) two times of the then applicable annual salary if there has been no change in control, as defined in the employment agreements or three-and-half times of the then applicable annual salary if there is a change in control.

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Income Taxes

6 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 16. INCOME TAXES

On March 27, 2020, the CARES Act was enacted and signed into law and includes, among other things, refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods and alternative minimum tax credit refunds. The Company does not at present expect the provisions of the CARES Act to have a material impact on its tax provision given the amount of net operating losses currently available.

The Company’s income tax expenses for the three and six months ended December 31, 2020 and 2019 are as follows:

	For the three months Ended December 31						For the six months Ended December 31
	2020			2019			2020			2019
Current
U.S.	$	(3,450	)	$	-		$	(3,450	)	$	-
PRC		-			(14,747	)		-			(14,747	)
Total income tax expenses		(3,450	)		(14,747	)		(3,450	)		(14,747	)

The Company’s deferred tax assets are comprised of the following:

	December 31, 2020			June 30, 2020
Allowance for doubtful accounts
U.S.	$	1,332,000		$	1,329,000
PRC		3,118,000			2,888,000
Net operating loss
U.S.		2,220,000			1,756,000
PRC		1,492,000			1,490,000
Total deferred tax assets		8,162,000			7,463,000
Valuation allowance		(8,162,000	)		(7,463,000	)
Deferred tax assets, net - long-term	$	-		$	-

The Company’s operations in the U.S. incurred a cumulative U.S. federal net operating loss (“NOL”) of approximately $6,456,000 as of June 30, 2020 which may reduce future federal taxable income. During the three and six months ended December 31, 2020, approximately $1,147,000 and $1,696,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $241,000 and $356,000, respectively. As of December 31, 2020, the Company’s cumulative NOL amounted to approximately $8,152,000 which may reduce future federal taxable income, of which approximately $1,400,000 will expire in 2037 and the remaining balance carried forward indefinitely.

The Company’s operations in China incurred a cumulative NOL of approximately $5,961,000 as of June 30, 2020 which may reduce future taxable income. During the three and six months ended December 31, 2020, approximately $4,000 and $7,000 of additional NOL was generated and the tax benefit derived from such NOL was approximately $1,000 and $2,000, respectively. As of December 31, 2020, the Company’s cumulative NOL amounted to approximately $5,968,000 which may reduce future taxable income, of which approximately $677,000 start expiring from 2023 and the remaining balance of NOL will be expired by 2026.

The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future earnings as a result of the deterioration of trade negotiation between US and China and the outbreak of COVID-19 in 2020. The Company provided a 100% allowance for its DTA as of December 31, 2020. The net increase in valuation for the three and six months ended December 31, 2020 amounted to approximately $429,000 and $699,000, respectively based on management’s reassessment of the amount of the Company’s deferred tax assets that are more likely than not to be realized.

The Company’s taxes payable consists of the following:

	December 31,		June 30,
	2020		2020
VAT tax payable	$	1,139,486	$	1,037,620
Corporate income tax payable		2,353,113		2,180,727
Others		68,952		62,001
Total	$	3,561,551	$	3,280,348

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Concentrations

6 Months Ended

Dec. 31, 2020

Risks and Uncertainties [Abstract]

CONCENTRATIONS

Note 17. CONCENTRATIONS

Major Customers

For the three months ended December 31, 2020, one customer accounted for approximately 99.9% of the Company’s revenues. As of December 31, 2020, two customers accounted for approximately 79.2% and 20.7% of the Company’s accounts receivable, net.

For the three months ended December 31, 2019, three customers accounted for approximately 39.0%, 33.6% and 24.7% of the Company’s revenues, respectively. As of December 31, 2019, three customers accounted for approximately 93.1% of the Company’s gross accounts receivable.

For six months ended December 31, 2020, one customer accounted for approximately 92.9% of the Company’s revenues. As of December 31, 2020, two customers accounted for approximately 79.2% and 20.7% of the Company’s accounts receivable, net.

For the six months ended December 31, 2019, three customers accounted for approximately 38.3%, 32.0% and 26.2% of the Company’s revenues, respectively. As of December 31, 2019, three customers accounted for approximately 93.1% of the Company’s gross accounts receivable.

Major Suppliers

For the three months ended December 31, 2020, two suppliers accounted for approximately 44.3% and 42.1% of the total costs of revenue, respectively.

For the three months ended December 31, 2019, four suppliers accounted for approximately 27.0%, 23.0%, 15.8% and 13.0% of the total cost of revenues, respectively.

For the six months ended December 31, 2019, two suppliers accounted for approximately 46.3% and 37.4% of the total cost of revenues.

For the six months ended December 31, 2019, five suppliers accounted for approximately 39.9%, 14.2%, 12.1%, 11.3% and 11.1% of the total cost of revenues, respectively

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Segment Reporting

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 18. 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 three operating segments: (1) shipping agency and management services; (2) freight logistics services and (3) container trucking services.

The following tables present summary information by segment for the three and six months ended December 31, 2020 and 2019, respectively:

	For the Three Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	-		$	1,884,440		$	-		$	1,884,440
Cost of revenues	$	-		$	1,688,464		$	-		$	1,688,464
Gross profit	$	-		$	195,976		$	-		$	195,976
Depreciation and amortization	$	77,809		$	3,600		$	-		$	81,409
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		-	%		10.4	%		-	%		10.4	%

	For the Three Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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. There was no such transaction for the three months ended December 31, 2020.

	For the six Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	206,845		$	2,814,394		$	-		$	3,021,239
Cost of revenues	$	176,968		$	2,606,722		$	-		$	2,783,690
Gross profit	$	29,877		$	207,672		$	-		$	237,549
Depreciation and amortization	$	158,078		$	7,050		$	-		$	165,128
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		14.4	%		7.4	%		-	%		7.9	%

	For the Six Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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. There was no such transaction for the six months ended December 31, 2020.

Total assets as of:

	December 31,		June 30,
	2020		2020
Shipping Agency and Management Services	$	6,809,748	$	2,531,074
Freight Logistic Services		3,830,485		3,176,165
Container Trucking Services		22,247		30,863
Total Assets	$	10,662,480	$	5,738,102

The Company’s operations are primarily based in the PRC and U.S, where the Company derives all of their revenues. Management also review unaudited condensed consolidated financial results by business locations.

Disaggregated information of revenues by geographic locations are as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

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Related Party Transactions

6 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Note 19. RELATED PARTY TRANSACTIONS

As of December 31, 2020 and 2019, the outstanding amounts due from related parties consist of the following:

	December 31,			June 30,
	2020			2020
Tianjin Zhiyuan Investment Group Co., Ltd.	$	384,331		$	484,331
Less: allowance for doubtful accounts		(38,433	)		(48,433	)
Total	$	345,898		$	435,898

In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) and TEWOO Chemical & Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, “Zhiyuan”). Zhiyuan Investment Group is owned by Mr. Zhang, the largest shareholder of the Company. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment Group whereby it would provide certain advisory services and help control potential commodities loss during the transportation process. The amount due from Zhiyuan Investment Group as of December 31, 2020 was $384,331 and the Company provided a 10% allowance for doubtful accounts of the amount due from Zhiyuan. For the three months ended December 31, 2020 and 2019, the Company recovered nil and $4,091, respectively, of allowance for doubtful accounts of the amount due from Zhiyuan. For the six months ended December 31, 2020 and 2019, the Company recovered $10,000 and $41,341, respectively, of allowance for doubtful accounts of the amount due from Zhiyuan.

As of December 31, 2020, the Company had payable to the Acting CFO of $2,132 which was included in other payable. As of June 30, 2020, the Company had payable to the CEO of $6,279 and to the Acting CFO of $26,570 which were included in other payable. These payments were made on behalf of the Company for the daily business operational activities. 

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Subsequent Events

6 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Note 20. SUBSEQUENT EVENTS

On January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. investors specified on the signature page thereto pursuant to which the Company agreed to sell to the investors, and the Investors agreed to purchase from the Company, an aggregate of 1,086,956 shares of common stock, no par value, and warrants to purchase 5,434,780 shares, for aggregate gross proceeds to the Company of approximately $4.0 million. The purchase price for each share of common stock and five warrants is $3.68, and the exercise price per warrant is $5.00. The Company has received the full amount of payment in January 2021.

On February 6, 2021, the Company entered into a Securities Purchase Agreement with the investors pursuant to which the Company agreed to sell to the Investors, and the investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 1,998,500 shares of the common stock of the Company, no par value per share, at a purchase price of $6.805 per share, for aggregate gross proceeds to the Company of approximately $13.6 million. The Company also agreed to sell to the investors warrants to purchase up to an aggregate of 1,998,500 shares of common stock at an exercise price of $6.805 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $12.3 million. The offering is closed on February 10, 2021. The Company has received the full amount of payment in February 2021.

On February 9, 2021, the Company entered into a securities purchase agreement with the investors pursuant to which the Company agreed to sell to the investors, and the Investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 3,655,000 shares of the common stock of the Company, no par value per share, at a purchase price of $7.80 per share, for aggregate gross proceeds to the Company of $28,509,000. The Company also agreed to sell to the Investors warrants to purchase up to an aggregate of 3,655,000 shares of common stock at an exercise price of $7.80 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $26.2 million. The offering is closed on February 11, 2021. The Company has received the full amount of payment in February 2021.

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Accounting Policies, by Policy (Policies)

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

(a) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All intercompany transactions and balances have been eliminated in consolidation.

Sino-Global Shipping Agency Ltd., a PRC corporation (“Sino-China”), is considered a variable interest entity (“VIE”), with the Company as the primary beneficiary. The Company, through Trans Pacific Shipping Ltd., entered into certain agreements with Sino-China, pursuant to which the Company receives 90% of Sino-China’s net income. Sino-China was designed to operate in China for the benefit of the Company. The Company does not receive any payment from Sino-China unless Sino-China recognizes net income during its fiscal year. These agreements do not entitle the Company to any consideration if Sino-China incurs a net loss during its fiscal year. If Sino-China incurs a net loss during its fiscal year, the Company is not required to absorb such net loss.

As a VIE, Sino-China’s revenues are included in the Company’s total revenues, and any income/loss from operations is consolidated with that of the Company. Because of contractual arrangements between the Company and Sino-China, the Company has a pecuniary interest in Sino-China that requires consolidation of the financial statements of the Company and Sino-China.

The Company has consolidated Sino-China’s operating results in accordance with Accounting Standards Codification (“ASC”) 810-10, “Consolidation”. The agency relationship between the Company and Sino-China and its branches is governed by a series of contractual arrangements pursuant to which the Company has substantial control over Sino-China. Management makes ongoing reassessments of whether the Company remains the primary beneficiary of Sino-China.

The carrying amount and classification of Sino-China’s assets and liabilities included in the Company’s unaudited condensed consolidated balance sheets were as follows:

	December 31,		June 30,
	2020		2020
Current assets:
Cash	$	5,183	$	5,022
Total current assets		5,183		5,022
Deposits		1,740		1,608
Property and equipment, net		37,241		41,171
Total assets	$	44,164	$	47,801
Current liabilities:
Other payables and accrued liabilities	$	43,406	$	39,919
Total liabilities	$	43,406	$	39,919

Fair Value of Financial Instruments

(b) Fair Value of Financial Instruments

The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2 — Inputs other than quoted prices that are observable for the asset or liability in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3 — Unobservable inputs that reflect management’s assumptions based on the best available information.

The carrying value of accounts receivable, other receivables, other current assets, and current liabilities approximate their fair values because of the short-term nature of these instruments.

Use of Estimates and Assumptions

(c) Use of Estimates and Assumptions

The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include revenue recognition, fair value of stock based compensation, cost of revenues, allowance for doubtful accounts, impairment loss, deferred income taxes, income tax expense and the useful lives of property and equipment. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.

Translation of Foreign Currency

(d) Translation of Foreign Currency

The accounts of the Company and its subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s functional currency is the U.S. dollar (“USD”) while its subsidiaries in the PRC, including Sino-China, Trans Pacific Shipping Ltd. and Trans Pacific Logistic Shanghai Ltd. report their financial positions and results of operations in Renminbi (“RMB”), its subsidiary Sino-Global Shipping Australia Pty Ltd., reports its financial positions and results of operations in Australian dollar (“AUD”), its subsidiary Sino-Global Shipping Hong Kong reports its financial positions and results of operations in Hong Kong dollar (“HKD”) and its subsidiary Sino-Global Shipping Canada, Inc. reports its financial positions and results of operations in Canadian Dollar (“CAD”). The accompanying unaudited condensed consolidated financial statements are presented in USD. Foreign currency transactions are translated into USD using the fixed exchange rates in effect at the time of the transaction. Generally, foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations. The Company translates the foreign currency financial statements in accordance with ASC 830-10, “Foreign Currency Matters”. Assets and liabilities are translated at current exchange rates quoted by the People’s Bank of China at the balance sheets’ dates and revenues and expenses are translated at average exchange rates in effect during the year. The resulting translation adjustments are recorded as other comprehensive loss and accumulated other comprehensive loss as a separate component of equity of the Company, and also included in non-controlling interests.

The exchange rates as of December 31, 2020 and June 30, 2020 and for the three and six months ended December 31, 2020 and 2019 are as follows:

	December 31, 2020		June 30, 2020		Three months ended December 31,				Six months ended December 31,
Foreign currency	Balance Sheet		Balance Sheet		2020 Profits/Loss		2019 Profits/Loss		2020 Profits/Loss		2019 Profits/Loss
RMB:1USD		6.5286		7.0651		6.6254		7.0446		6.7736		7.0296
AUD:1USD		1.2974		1.4514		1.3688		1.4630		1.3840		1.4611
HKD:1USD		7.7536		7.7505		7.7520		7.8256		7.7513		7.8278
CAD:1USD		1.2754		1.3617		1.3038		1.3200		1.3181		1.3200

Cash

(e) Cash

Cash consists of cash on hand and cash in bank which are unrestricted as to withdrawal or use. The Company maintains cash with various financial institutions mainly in the PRC, Australia, Hong Kong, Canada and the U.S. As of December 31, 2020 and June 30, 2020, cash balances of $4,462,063 and $126,720, respectively, were maintained at financial institutions. In China, the deposit insurance system only insured each depositor at one bank for a maximum of approximately $70,000 (RMB 500,000). For the balance maintained at U.S. financial institutions, the Federal Deposit Insurance Corporation as it only insured deposits up to $250,000. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2020 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $3,881,953 and $8,780, respectively.

Receivables and Allowance for Doubtful Accounts

(f) Receivables and Allowance for Doubtful Accounts

Accounts receivable are presented at net realizable value. The Company maintains allowances for doubtful accounts and for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual receivable balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balances, customers’ historical payment history, their current credit-worthiness and current economic trends. Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts. As the Company has focused its development in the shipping management segment, its customer base will be more from smaller privately owned companies that will pay more timely than state owned companies. The Company also considers the economic implications of COVID-19 on its estimates of the allowance and made additional $2,609 and $258,561 of allowance for doubtful accounts of accounts receivable for the three months ended December 31, 2020 and 2019, $33,418 and $1,282,492 of allowance for doubtful accounts of accounts receivable for the six months ended December 31, 2020 and 2019. The Company recovered nil and $22,869 of accounts receivable for the three months ended December 31, 2020 and 2019, respectively. The Company recovered $2,456 and $22,869 of accounts receivable for the six months ended December 31, 2020 and 2019, respectively. For the three and six months ended December 31, 2019 the Company wrote off nil and $99,366. There was no write off for the three and six months ended December 31, 2020. 

Other receivables represent mainly customer advances, prepaid employee insurance and welfare benefits, which will be subsequently deducted from the employee payroll, guarantee deposits on behalf of ship owners as well as office lease deposits. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables are written off against the allowances only after exhaustive collection efforts. The Company made $11,673 allowance for doubtful accounts of other receivables for the three and six months ended December 31, 2020. There was no allowance of other receivables for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2020, $11,673 was written off against other receivables. For the three and six months ended December 31, 2019, nil and $1,763 was written off against other receivables, respectively. The Company recovered $30,173 of other receivables for the three and six months ended December 31, 2020. There was no recovery against other receivables for the three and six months ended December 31, 2019.

Property and Equipment, net

(g) Property and Equipment, net

Property and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Buildings	20 years
Motor vehicles	3-10 years
Computer and office equipment	1-5 years
Furniture and fixtures	3-5 years
System software	5 years
Leasehold improvements	Shorter of lease term or useful lives

The carrying value of a long-lived asset is considered impaired by the Company when the anticipated undiscounted cash flows from such asset is less than its carrying value. If impairment is identified, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved or based on independent appraisals. There was no impairment for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, an impairment of nil and $127,177 were recorded, respectively.

Intangible Assets, net

(h) Intangible Assets, net

Intangible assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the following estimated useful lives:

Logistics platform 3 years

The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. There was no impairment for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, an impairment of nil and $200,455 were recorded, respectively.

Revenue Recognition

(i) Revenue Recognition

The Company recognizes revenue which represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company identifies contractual performance obligations and determines whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time.

The Company uses a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. The Company’s revenues are recognized at a point in time after all performance obligations are satisfied. 

Contract balances

The Company records receivables related to revenue when the Company has an unconditional right to invoice and receive payment.

Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized.

The Company’s disaggregated revenue streams are described as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Shipping and management agency services	$	-	$	500,000	$	206,845	$	1,000,000
Freight logistics services		1,884,440		1,503,500		2,814,394		2,745,641
Container trucking services		-		17,624		-		61,709
Total	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

● Revenues from shipping and management agency services are recognized upon completion of services, which coincides with the date of departure of the relevant vessel from port. Advance payments and deposits received from customers prior to the provision of services and recognition of the related revenues are presented as deferred revenue.

● Revenues from freight logistics services are recognized when the related contractual services are rendered.   For certain freight logistics contracts that the Company entered into with customers starting in the 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 this contracts are presented net of related costs. For the three months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $12.9 million and $12.0 million, respectively. For the six months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts amounted to approximately $22.0 million and $20.5 million, respectively. There was no such transaction for the three and six months ended December 31, 2020.

● Revenues from container trucking services are recognized when the related contractual services are rendered.

Disaggregated information of revenues by geographic locations are as follows:

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

Taxation

(j) Taxation

Because the Company and its subsidiaries and Sino-China were incorporated in different jurisdictions, they file separate income tax returns. The Company uses the asset and liability method of accounting for income taxes in accordance with U.S. GAAP. Deferred taxes, if any, are recognized for the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. A valuation allowance is provided against deferred tax assets if it is more likely than not that the asset will not be utilized in the future.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company had no uncertain tax positions as of December 31, 2020 and June 30, 2020.

Income tax returns for the years prior to 2017 are no longer subject to examination by U.S. tax authorities.

PRC Enterprise Income Tax

PRC enterprise income tax is calculated based on taxable income determined under the PRC Generally Accepted Accounting Principles (“PRC GAAP”) at 25%. Sino-China and Trans Pacific are registered in PRC and governed by the Enterprise Income Tax Laws of the PRC.

PRC Value Added Taxes and Surcharges

The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%. Entities that are VAT general taxpayers are allowed to offset qualified VAT paid to suppliers against their VAT liability. Net VAT liability is recorded in taxes payable on the unaudited condensed consolidated balance sheets.

In addition, under the PRC regulations, the Company’s PRC subsidiaries and affiliates are required to pay the city construction tax (7%) and education surcharges (3%) based on the net VAT payments.

Earnings (loss) per Share

(k) Earnings (loss) per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of common stock of the Company by the weighted average number of shares of common stock of the Company outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock of the Company were exercised or converted into common stock of the Company. Common stock equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive.

For the three and six months ended December 31, 2020 and 2019, there was no dilutive effect of potential shares of common stock of the Company because the Company generated a net loss.

Comprehensive Income (loss)

(l) Comprehensive Income (Loss)

The Company reports comprehensive income (loss) in accordance with the authoritative guidance issued by Financial Accounting Standards Board (the “FASB”) which establishes standards for reporting comprehensive income (loss) and its component in financial statements. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of Stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

Stock-based Compensation

(m) Stock-based Compensation

The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee’s requisite service period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received.  

Valuations of stock based compensation are based upon highly subjective assumptions about the future, including stock price volatility and exercise patterns. The fair value of share-based payment awards was estimated using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee terminations. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

Risks and Uncertainties

(n) Risks and Uncertainties

The Company’s business, financial position and results of operations may be influenced by the political, economic, health and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, health and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and the workforce are concentrated in China and United States, the Company’s business, results of operations, and financial condition have been adversely affected for the three months ended September 30, 2020. The situation remains highly uncertain for any further outbreak or resurgence of the COVID-19. It is therefore difficult for the Company to estimate the impact on the business or operating results that might be adversely affected by any further outbreak or resurgence of COVID-19.

Liquidity

(o) Liquidity

In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of December 31, 2020, the Company’s working capital was approximately $1.1 million and the Company had cash of approximately $4.5 million. The Company believes its revenues and operations will continue to grow and the current working capital is sufficient to support its operations and debt obligations as they become due one year through report date.

The Company expects to realize the balance of its current assets within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company had considered supplementing its available sources of funds through the following sources:

● the Company will continuously seek equity financing to support its working capital. On January 27, 2021, the Company entered into a securities purchase agreement with the non-U.S. persons to purchase 1,086,956 shares at a per share purchase price of $3.68 for aggregate proceeds of approximately $4.0 million. The Company has received the full amount of payment in January 2021. On February 6, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 1,998,500 shares at a per share purchase price of $6.805 for aggregate net proceeds of approximately $12.3 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021. On February 9, 2021, the Company entered into a securities purchase agreement with the investors to purchase an aggregate of 3,655,000 shares at a per share purchase price of $7.80 for aggregate net proceeds of approximately $26.2 million after deducting estimated offering expenses and placement agent fees. The Company has received the full amount of payment in February 2021;

● other available sources of financing from PRC banks and other financial institutions; and

● financial support and credit guarantee commitments from the Company’s shareholders and directors.

Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s future liquidity requirements for at least twelve months from issuance of these unaudited condensed consolidated financial statements.

Recent Accounting Pronouncements

(p) Recent Accounting Pronouncements

Pronouncements adopted

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted this ASU on July 1, 2020 and the adoption has no significant impact to the Company’s unaudited condensed consolidated financial statements as a whole.

Pronouncements not yet adopted

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after July 1, 2023, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on July 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The amendments in this Update to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 is effective for the Company for annual and interim reporting periods beginning July 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after July 1, 2021, including interim periods within those fiscal years. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed consolidated financial statements and related disclosures.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Sino-China's assets and liabilities

	December 31,		June 30,
	2020		2020
Current assets:
Cash	$	5,183	$	5,022
Total current assets		5,183		5,022
Deposits		1,740		1,608
Property and equipment, net		37,241		41,171
Total assets	$	44,164	$	47,801
Current liabilities:
Other payables and accrued liabilities	$	43,406	$	39,919
Total liabilities	$	43,406	$	39,919

Schedule of translation of foreign currency exchange rates

	December 31, 2020		June 30, 2020		Three months ended December 31,				Six months ended December 31,
Foreign currency	Balance Sheet		Balance Sheet		2020 Profits/Loss		2019 Profits/Loss		2020 Profits/Loss		2019 Profits/Loss
RMB:1USD		6.5286		7.0651		6.6254		7.0446		6.7736		7.0296
AUD:1USD		1.2974		1.4514		1.3688		1.4630		1.3840		1.4611
HKD:1USD		7.7536		7.7505		7.7520		7.8256		7.7513		7.8278
CAD:1USD		1.2754		1.3617		1.3038		1.3200		1.3181		1.3200

Schedule of estimated useful lives

Buildings	20 years
Motor vehicles	3-10 years
Computer and office equipment	1-5 years
Furniture and fixtures	3-5 years
System software	5 years
Leasehold improvements	Shorter of lease term or useful lives

Schedule of intangible assets estimated useful lives

Logistics platform 3 years

Schedule of revenues by segments

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Shipping and management agency services	$	-	$	500,000	$	206,845	$	1,000,000
Freight logistics services		1,884,440		1,503,500		2,814,394		2,745,641
Container trucking services		-		17,624		-		61,709
Total	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

Schedule of disaggregated information of revenues by geographic locations

	For the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

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Accounts Receivable, Net (Tables)

6 Months Ended

Dec. 31, 2020

Accounts Receivable Disclosure [Abstract]

Schedule of net accounts receivable

	December 31,			June 30,
	2020			2020
Trade accounts receivable	$	3,720,087		$	3,453,439
Less: allowances for doubtful accounts		(2,457,949	)		(2,297,491	)
Accounts receivable, net	$	1,262,138		$	1,155,948

Schedule of movement of allowance for doubtful accounts

	December 31, 2020		June 30, 2020
Beginning balance	$	2,297,491	$	5,670,274
Provision for doubtful accounts, net of recovery		30,962		4,896,640
Less: write-off		-		(8,220,754	)
Exchange rate effect		129,496		(48,669	)
Ending balance	$	2,457,949	$	2,297,491

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Other Receivables, Net (Tables)

6 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Schedule of other receivables

	December 31,			June 30,
	2020			2020
Advances to customers*	$	11,375,759		$	10,004,893
Employee business advances		4,241			51,334
Total		11,380,000			10,056,227
Less: allowances for doubtful accounts		(10,796,084	)		(10,005,193	)
Other receivables, net	$	583,916		$	51,034

* As of December 31, 2020 and 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 aforementioned 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 had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. On December 31, 2020, the Company entered another contract to advance $580,000 as deposit on behalf of customer and it will be repaid to the Company when the contract is fulfilled.

Schedule of movement of allowance for doubtful accounts

	December 31, 2020			June 30, 2020
Beginning balance	$	10,005,193		$	-
Provision for doubtful accounts, net of recovery		(18,500	)		10,055,203
Less: write-off		(11,673	)		(1,763	)
Exchange rate effect		821,064			(48,247	)
Ending balance	$	10,796,084		$	10,005,193

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Advances to Suppliers (Tables)

6 Months Ended

Dec. 31, 2020

Advances To Suppliers [Abstract]

Schedule of advances to suppliers – third parties

	December 31,		June 30,
	2020		2020
Freight fees (1)	$	80,804	$	48,875

(1) The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from January to March 2021.

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Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of prepaid expenses and other assets

	December 31,		June 30,
	2020		2020
Prepaid income taxes	$	11,929	$	48,924
Other (including prepaid professional fees, rent, listing fees)		51,196		41,458
Total	$	63,125	$	90,382

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Other Long-Term Assets - Deposits (Tables)

6 Months Ended

Dec. 31, 2020

Other Longterm Assets Deposits [Abstract]

Schedule of other long term assets deposits

	December 31,		June 30,
	2020		2020
Rental and utilities deposits	$	56,478	$	64,663
Freight logistics deposits (1)		3,147,845		2,910,327
Total other long-term assets - deposits	$	3,204,323	$	2,974,990

(1) Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. 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. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company.

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Property and Equipment, Net (Tables)

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of net property and equipment

	December 31,			June 30,
	2020			2020
Buildings	$	206,174		$	190,518
Motor vehicles*		561,462			516,999
Computer equipment*		104,638			97,172
Office equipment*		47,169			43,587
Furniture and fixtures*		77,589			71,697
System software*		116,778			107,911
Leasehold improvements		851,398			786,745
Total		1,965,208			1,814,629
Less: Accumulated depreciation and amortization		(1,540,882	)		(1,291,339	)
Property and equipment, net	$	424,326		$	523,290

* For the three and six months ended December 31, 2019, an impairment of $127,177 was recorded due to continued decrease in revenues from the inland transportation management segment, no impairment was recorded for same period 2020.

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Intangible Assets, Net (Tables)

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

	December 31,			June 30,
	2020			2020
Full service logistics platforms	$	190,000		$	190,000
Less: Accumulated amortization		(190,000	)		(163,611	)
Intangible assets, net	$	-		$	26,389

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Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Schedule of accrued expenses and other current liabilities

	December 31,		June 30,
	2020		2020
Salary and reimbursement payable	$	504,022	$	795,855
Professional fees payable		345,631		629,524
Credit card payable		5,535		217,940
Total	$	855,188	$	1,643,319

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Loans Payable (Tables)

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of loan repayment

Twelve Months Ending December 31,	Loan Amount
2021	$	7,898
2022		3,092
2023		3,210
2024		3,332
2025		3,460
Thereafter		134,908
Total loan payments	$	155,900

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Leases (Tables)

6 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of lease obligations

Twelve Months Ending December 31,	Operating Lease Amount
2021	$	181,667
2022		81,596
Total lease payments		263,263
Less: Interest		(18,031	)
Present value of lease liabilities	$	245,232

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Equity (Tables)

6 Months Ended

Dec. 31, 2020

Stockholders' Equity Note [Abstract]

Schedule of status of warrants outstanding and exercisable

	Warrants		Weighted Average Exercise Price
Warrants outstanding, as of June 30, 2020		400,000	$	8.75
Issued		2,922,000		2.39
Exercised		-		-
Expired		-		-
Warrants outstanding, as of December 31, 2020		3,322,000	$	3.16
Warrants exercisable, as of December 31, 2020		3,322,000	$	3.16

Schedule of warrant outstanding

Warrants Outstanding	Warrants Exercisable		Weighted Average Exercise Price		Average Remaining Contractual Life
2018 Series A, 400,000		400,000	$	8.75	2.70 years
2020 warrants, 720,000		720,000	$	1.825	5.21 years
2020 warrants, 1,032,000		1,032,000	$	1.99	5.34 years
2020 warrants, 1,170,000		1,170,000	$	3.10	3.44 years

Schedule of options

	Options		Weighted Average Exercise Price
Options outstanding, as of June 30, 2020		17,000	$	6.05
Granted		-		-
Exercised		-		-
Cancelled, forfeited or expired		-		-
Options outstanding, as of December 31, 2020		17,000	$	6.05
Options exercisable, as of December 31, 2020		17,000	$	6.05

Schedule of status of options outstanding and exercisable

Outstanding Options					Exercisable Options
Exercise Price		Number		Average Remaining Contractual Life	Average Exercise Price		Number		Average Remaining Contractual Life
$	10.05		2,000	2.08 years	$	10.05		2,000	2.08 years
$	5.50		15,000	0.56 years	$	5.50		15,000	0.56 years
			17,000					17,000

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Non-controlling interest (Tables)

6 Months Ended

Dec. 31, 2020

Noncontrolling Interest [Abstract]

Schedule of non-controlling interest

	December 31,			June 30,
	2020			2020
Sino-China:
Original paid-in capital	$	356,400		$	356,400
Additional paid-in capital		1,044			1,044
Accumulated other comprehensive income		61,176			376,398
Accumulated deficit		(6,206,533	)		(6,199,188	)
		(5,787,913	)		(5,465,346	)
Trans Pacific Logistics Shanghai Ltd.		(1,163,405	)		(1,077,015	)
Total	$	(6,951,318	)	$	(6,542,361	)

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Income Taxes (Tables)

6 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income tax expenses

	For the three months Ended December 31						For the six months Ended December 31
	2020			2019			2020			2019
Current
U.S.	$	(3,450	)	$	-		$	(3,450	)	$	-
PRC		-			(14,747	)		-			(14,747	)
Total income tax expenses		(3,450	)		(14,747	)		(3,450	)		(14,747	)

Schedule of deferred tax assets

	December 31, 2020			June 30, 2020
Allowance for doubtful accounts
U.S.	$	1,332,000		$	1,329,000
PRC		3,118,000			2,888,000
Net operating loss
U.S.		2,220,000			1,756,000
PRC		1,492,000			1,490,000
Total deferred tax assets		8,162,000			7,463,000
Valuation allowance		(8,162,000	)		(7,463,000	)
Deferred tax assets, net - long-term	$	-		$	-

Schedule of income tax payable

	December 31,		June 30,
	2020		2020
VAT tax payable	$	1,139,486	$	1,037,620
Corporate income tax payable		2,353,113		2,180,727
Others		68,952		62,001
Total	$	3,561,551	$	3,280,348

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Segment Reporting (Tables)

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of information by segment

	For the Three Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	-		$	1,884,440		$	-		$	1,884,440
Cost of revenues	$	-		$	1,688,464		$	-		$	1,688,464
Gross profit	$	-		$	195,976		$	-		$	195,976
Depreciation and amortization	$	77,809		$	3,600		$	-		$	81,409
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		-	%		10.4	%		-	%		10.4	%

	For the Three Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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 the six Months Ended December 31, 2020
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net revenues	$	206,845		$	2,814,394		$	-		$	3,021,239
Cost of revenues	$	176,968		$	2,606,722		$	-		$	2,783,690
Gross profit	$	29,877		$	207,672		$	-		$	237,549
Depreciation and amortization	$	158,078		$	7,050		$	-		$	165,128
Total capital expenditures	$	-		$	-		$	-		$	-
Gross margin%		14.4	%		7.4	%		-	%		7.9	%

	For the Six Months Ended December 31, 2019
	Shipping Agency and Management Services			Freight Logistics Services			Container Trucking Services			Total
Net 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 the Three Months Ended				For the Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
PRC	$	1,884,440		1,503,500		2,814,394		2,745,641
U.S.		-		517,624		206,845		1,061,709
Total revenues	$	1,884,440	$	2,021,124	$	3,021,239	$	3,807,350

* 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. There was no such transaction for the three months ended December 31, 2020.

* 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. There was no such transaction for the six months ended December 31, 2020.

Schedule of segment reporting total assets

	December 31,		June 30,
	2020		2020
Shipping Agency and Management Services	$	6,809,748	$	2,531,074
Freight Logistic Services		3,830,485		3,176,165
Container Trucking Services		22,247		30,863
Total Assets	$	10,662,480	$	5,738,102

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Related Party Transactions (Tables)

6 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Schedule of outstanding amounts due from related party

	December 31,			June 30,
	2020			2020
Tianjin Zhiyuan Investment Group Co., Ltd.	$	384,331		$	484,331
Less: allowance for doubtful accounts		(38,433	)		(48,433	)
Total	$	345,898		$	435,898

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Organization and Nature of Business (Details)	6 Months Ended
	Dec. 31, 2020	Dec. 14, 2020
Organization and Nature of Business (Details) [Line Items]
Reverse stock split, description	After the close of the stock market on July 7, 2020, the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the Company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market.
Blumargo IT Solution Ltd [Member]
Organization and Nature of Business (Details) [Line Items]
Ownership and joint venture equity, percentage		80.00%

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Summary of Significant Accounting Policies (Details)					3 Months Ended		6 Months Ended
	Feb. 09, 2021 USD ($) $ / shares shares	Feb. 06, 2021 USD ($) $ / shares shares	Jan. 27, 2021 USD ($) $ / shares shares	Dec. 08, 2020 shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2020 USD ($)
Summary of Significant Accounting Policies (Details) [Line Items]
Cash balance at U.S. financial institutions, not insured by the FDIC					$ 4,462,063		$ 4,462,063			$ 126,720
Insured each depositor at one bank					70,000		70,000		¥ 500,000
Federal deposit insurance corporation expenses							$ 250,000
Compensation expenses, description							Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2020 and June 30, 2020, amount of deposits the Company had not covered by insurance amounted to $3,881,953 and $8,780, respectively.
Description of receivables and allowance for doubtful accounts							Receivables are generally considered past due after 180 days. The Company reserves 25%-50% of the customers balance aged between 181 days to 1 year, 50%-100% of the customers balance over 1 year and 100% of the customers balance over 2 years. Accounts receivable are written off against the allowances only after exhaustive collection efforts.
Allowance for doutfull accounts					2,609	$ 258,561	$ 33,418	$ 1,282,492
Accounts receivable						22,869	2,456	22,869
No write off					99,366		99,366
Allowance for doubtful accounts of other receivables					11,673		11,673
Written off against other receivables					11,673		11,673	1,763
Other receivables						30,173		30,173
Impairment						127,177		127,177
Impairment of intangible assets						$ 200,455		$ 200,455
Gross revenue description							For the three months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts not presented in the table above amounted to approximately $12.9 million and $12.0 million, respectively. For the six months ended December 31, 2019, gross revenue and gross cost of revenue related to these contracts amounted to approximately $22.0 million and $20.5 million, respectively. There was no such transaction for the three and six months ended December 31, 2020.
Percentage Of Income Tax							25.00%
VAT rate, description							The Company is subject to value added tax (“VAT”). Revenue from services provided by the Company’s PRC subsidiaries and affiliates, including Sino-China and Trans Pacific are subject to VAT at rates ranging from 9% to 13%.
Percentage of construction taxes							7.00%
Percentage of education surcharges							3.00%
Working capital					(1,100,000)		$ (1,100,000)
Cash					$ 4,500,000		$ 4,500,000
Purchase shares (in Shares) | shares				1,560,000
Subsequent Event [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Purchase shares (in Shares) | shares	3,655,000	1,998,500	1,086,956
Purchase price per share (in Dollars per share) | $ / shares	$ 7.80	$ 6.805	$ 3.68
Aggregate proceeds	$ 26,200,000	$ 12,300,000	$ 4,000,000

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Summary of Significant Accounting Policies (Details) - Schedule of Sino-China's assets and liabilities - Sino - China [Member] - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Current assets:
Cash	$ 5,183	$ 5,022
Total current assets	5,183	5,022
Deposits	1,740	1,608
Property and equipment, net	37,241	41,171
Total assets	44,164	47,801
Current liabilities:
Other payables and accrued liabilities	43,406	39,919
Total liabilities	$ 43,406	$ 39,919

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Summary of Significant Accounting Policies (Details) - Schedule of translation of foreign currency exchange rates	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
RMD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	6.7736	7.0296
AUD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	1.3840	1.4611
HKD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	7.7513	7.8278
CAD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	1.3181	1.3200
Balance sheet [Member] | RMD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	6.5286
Foreign currency, exchange rates, Profits/Loss	6.6254
Balance sheet [Member] | AUD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	1.2974
Foreign currency, exchange rates, Profits/Loss	1.3688
Balance sheet [Member] | HKD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	7.7536
Foreign currency, exchange rates, Profits/Loss	7.7520
Balance sheet [Member] | CAD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet	1.2754
Foreign currency, exchange rates, Profits/Loss	1.3038
Profits/Loss [Member] | RMD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet			7.0651
Foreign currency, exchange rates, Profits/Loss		7.0446
Profits/Loss [Member] | AUD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet			1.4514
Foreign currency, exchange rates, Profits/Loss		1.4630
Profits/Loss [Member] | HKD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet			7.7505
Foreign currency, exchange rates, Profits/Loss		7.8256
Profits/Loss [Member] | CAD;1USD [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency, exchange rates, balance sheet			1.3617
Foreign currency, exchange rates, Profits/Loss		1.3200

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Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives	6 Months Ended
	Dec. 31, 2020
Buildings [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	20 years
Motor vehicles [Member] | Minimum [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	3 years
Motor vehicles [Member] | Maximum [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	10 years
Computer and office equipment [Member] | Minimum [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	1 year
Computer and office equipment [Member] | Maximum [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	5 years
Furniture and fixtures [Member] | Minimum [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	3 years
Furniture and fixtures [Member] | Maximum [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	5 years
System software [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment, net	5 years
Leasehold improvements [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives for property and equipment	Shorter of lease term or useful lives

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Summary of Significant Accounting Policies (Details) - Schedule of intangible assets estimated useful lives	6 Months Ended
	Dec. 31, 2020
Logistics Platform [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	3 years

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Summary of Significant Accounting Policies (Details) - Schedule of revenues by segments - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Schedule of revenues by segments [Abstract]
Shipping and management agency services		$ 500,000	$ 206,845	$ 1,000,000
Freight logistics services	$ 1,884,440	1,503,500	2,814,394	2,745,641
Container trucking services		17,624		61,709
Total	$ 1,884,440	$ 2,021,124	$ 3,021,239	$ 3,807,350

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Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations [Line Items]
Total revenues	$ 1,884,440	$ 2,021,124	$ 3,021,239	$ 3,807,350
PRC [Member]
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations [Line Items]
Total revenues	1,884,440	1,503,500	2,814,394	2,745,641
U.S. [Member]
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues by geographic locations [Line Items]
Total revenues		$ 517,624	$ 206,845	$ 1,061,709

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Accounts Receivable, Net (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Accounts Receivable Disclosure [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	$ 2,609	$ 258,561	$ 33,418	$ 1,282,492
Accounts receivable			$ 2,456	$ 76,497

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Accounts Receivable, Net (Details) - Schedule of net accounts receivable - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Schedule of net accounts receivable [Abstract]
Trade accounts receivable	$ 3,720,087	$ 3,453,439
Less: allowances for doubtful accounts	(2,457,949)	(2,297,491)
Accounts receivable, net	$ 1,262,138	$ 1,155,948

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Accounts Receivable, Net (Details) - Schedule of movement of allowance for doubtful accounts - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2020
Schedule of movement of allowance for doubtful accounts [Abstract]
Beginning balance	$ 2,297,491	$ 5,670,274
Provision for doubtful accounts, net of recovery	30,962	4,896,640
Less: write-off		(8,220,754)
Exchange rate effect	129,496	(48,669)
Ending balance	$ 2,457,949	$ 2,297,491

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Other Receivables, Net (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Receivables [Abstract]
Allowance for doubtful debt	$ 11,000,000
Contract to advance	580,000		$ 580,000
Allowances for doubtful accounts	11,673		30,173
Wrote off other receivables	$ 11,673		$ 11,673	$ 1,763	$ 1,763

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Other Receivables, Net (Details) - Schedule of other receivables - USD ($)		Dec. 31, 2020	Jun. 30, 2020	Jun. 30, 2019
Schedule of other receivables [Abstract]
Advances to customers	[1]	$ 11,375,759	$ 10,004,893
Employee business advances		4,241	51,334
Total		11,380,000	10,056,227
Less: allowances for doubtful accounts		(10,796,084)	(10,005,193)
Other receivables, net		$ 583,916	$ 51,034

[1] As of December 31, 2020 and 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 aforementioned 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 had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. On December 31, 2020, the Company entered another contract to advance $580,000 as deposit on behalf of customer and it will be repaid to the Company when the contract is fulfilled.

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Other Receivables, Net (Details) - Schedule of movement of allowance for doubtful accounts - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Schedule of movement of allowance for doubtful accounts [Abstract]
Beginning balance			$ 10,005,193
Provision for doubtful accounts, net of recovery			(18,500)		10,055,203
Less: write-off	$ (11,673)		(11,673)	$ (1,763)	(1,763)
Exchange rate effect			821,064		(48,247)
Ending balance	$ 10,796,084		$ 10,796,084		$ 10,005,193

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Advances to Suppliers (Details) - Schedule of advances to suppliers – third parties - USD ($)		6 Months Ended	12 Months Ended
		Dec. 31, 2020	Jun. 30, 2020
Schedule of advances to suppliers – third parties [Abstract]
Freight fees	[1]	$ 80,804	$ 48,875

[1] The advanced freight fee is the Company’s prepayment made for various shipping costs for shipments from January to March 2021.

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Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other assets - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Schedule of prepaid expenses and other assets [Abstract]
Prepaid income taxes	$ 11,929	$ 48,924
Other (including prepaid professional fees, rent, listing fees)	51,196	41,458
Total	$ 63,125	$ 90,382

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Other Long-Term Assets - Deposits (Details) - 6 months ended Dec. 31, 2020 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Other Longterm Assets Deposits [Abstract]
Deposits are refundable amount	$ 3.1	¥ 20

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Other Long-Term Assets - Deposits (Details) - Schedule of other long term assets deposits - USD ($)		Dec. 31, 2020	Jun. 30, 2020
Schedule of other long term assets deposits [Abstract]
Rental and utilities deposits		$ 56,478	$ 64,663
Freight logistics deposits	[1]	3,147,845	2,910,327
Total other long-term assets - deposits		$ 3,204,323	$ 2,974,990

[1] Certain customers require the Company to pay certain deposits for the security of shipments and merchandise. These deposits are refundable at the end of their respective contract term. Approximately $3.1 million (RMB 20 million) of the balance was paid to BaoSteel Resources Co., Ltd. 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. The restricted deposit is expected be repaid to the Company when either the contract terms are expired by March 2023 or the contract is terminated by the Company.

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Property and Equipment, Net (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 70,853	$ 66,601	$ 138,739	$ 187,121
Impairment		$ 127,177		$ 127,177

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Property and Equipment, Net (Details) - Schedule of net property and equipment - USD ($)		Dec. 31, 2020	Jun. 30, 2020
Property, Plant and Equipment [Line Items]
Total		$ 1,965,208	$ 1,814,629
Less: Accumulated depreciation and amortization		(1,540,882)	(1,291,339)
Property and equipment, net		424,326	523,290
Buildings [Member]
Property, Plant and Equipment [Line Items]
Total		206,174	190,518
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Total	[1]	561,462	516,999
Computer equipment [Member]
Property, Plant and Equipment [Line Items]
Total	[1]	104,638	97,172
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Total	[1]	47,169	43,587
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Total	[1]	77,589	71,697
System software [Member]
Property, Plant and Equipment [Line Items]
Total	[1]	116,778	107,911
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total		$ 851,398	$ 786,745

[1] For the three and six months ended December 31, 2019, an impairment of $127,177 was recorded due to continued decrease in revenues from the inland transportation management segment, no impairment was recorded for same period 2020.

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Intangible Assets, Net (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 10,556	$ 15,833	$ 26,389	$ 49,890
Impairment of Intangible Assets, Finite-lived		$ 200,455		$ 200,455

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Intangible Assets, Net (Details) - Schedule of intangible assets net - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Schedule of intangible assets net [Abstract]
Full service logistics platforms	$ 190,000	$ 190,000
Less: Accumulated amortization	(190,000)	(163,611)
Intangible assets, net		$ 26,389

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Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Schedule of accrued expenses and other current liabilities [Abstract]
Salary and reimbursement payable	$ 504,022	$ 795,855
Professional fees payable	345,631	629,524
Credit card payable	5,535	217,940
Total	$ 855,188	$ 1,643,319

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Loans Payable (Details) - USD ($)		1 Months Ended
	May 11, 2020	May 26, 2020	Dec. 31, 2020
Debt Disclosure [Abstract]
Loan proceeds	$ 124,570
Loan payable, description	The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended 24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels.
Loan payable remaining outstanding			$ 124,570
Advance amount		$ 155,900
Description of loans payable		the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter. The SBA loans are scheduled to mature on May 22, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable including principal and interest, of $731 commencing on May 22, 2021. The balance of principal and interest will be payable 30 years from the date of May 22, 2020. $5,900 of the loan will be forgiven. As of December 31, 2020, $155,900 of loan payable remains outstanding. Interest expense for the three and six months ended December 31, 2020 for this loan was $1,418 and $2,820, respectively.

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Loans Payable (Details) - Schedule of loan repayment	Dec. 31, 2020 USD ($)
Schedule of loan repayment [Abstract]
2021	$ 7,898
2022	3,092
2023	3,210
2024	3,332
2025	3,460
Thereafter	134,908
Total loan payments	$ 155,900

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Leases (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Leases (Details) [Line Items]
Lease liability	$ 200,000		$ 200,000
Weighted average discount rate	9.38%		9.38%
Right-of-use assets	$ 224,950		$ 224,950		$ 300,114
Lease labilities	245,232		245,232
Lease liabilities current portion	166,572		166,572
Lease liabilities noncurrent	78,660		$ 78,660		$ 132,699
Expiration term			1 year 178 days
Rent expense	$ 81,000	$ 80,000	$ 157,000	$ 160,000
Minimum [Member]
Leases (Details) [Line Items]
Lease term	2 years		2 years
Maximum [Member]
Leases (Details) [Line Items]
Lease term	3 years		3 years

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Leases (Details) - Schedule of lease obligations	Dec. 31, 2020 USD ($)
Schedule of lease obligations [Abstract]
2021	$ 181,667
2022	81,596
Total lease payments	263,263
Less: Interest	(18,031)
Present value of lease liabilities	$ 245,232

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Equity (Details) - USD ($)							1 Months Ended							3 Months Ended		6 Months Ended
	Dec. 08, 2020	Dec. 09, 2019	Oct. 14, 2019	Oct. 03, 2019	Apr. 08, 2019	Jun. 07, 2018	Sep. 17, 2020	Jul. 07, 2020	Jul. 22, 2019	Jul. 02, 2019	Jul. 02, 2019	Mar. 22, 2017	Jan. 30, 2016	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Nov. 03, 2020	Nov. 02, 2020	Jun. 30, 2020
Equity (Details) [Line Items]
Aggregate shares of common stock (in Shares)	1,560,000
Net proceeds of offering							$ 1,050,000
Exercise price (in Dollars per share)							$ 1.825
Warrants to purchase of common stock (in Shares)																		1,032,000	1,032,000
Offering cost																		$ 1,430,000
Warrants exercise price (in Dollars per share)																		$ 1.99
Common stock price per share (in Dollars per share)																		$ 5.97
Common stock issued (in Shares)														5,998,788		5,998,788		60,000		3,718,788
Purchase price (in Shares)	3.10
Aggregate gross proceeds	$ 4,836,000															$ 5,433,399	$ 500,500
Exercise price (in Dollars per share)	$ 3.10
Cancellation of treasury shares (in Shares)		35,099
Common stock, Description								the Company effected a l-for-5 reverse stock split of its common stock in order to satisfy continued listing requirements of its common stock on the NASDAQ Capital Market. The reverse stock split was approved by the Company’s board of directors and stockholders and was intended to allow the company to meet the minimum share price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market. As a result all common stock share amounts included in this filing have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five. Amounts affected include common stock outstanding, including those that have resulted from the stock options, and warrants that convert to common stock.
Consulting fees															$ 52,709		105,417
Consulting services agreement , description											The scope of services primarily covers business consultation for one year from July 1, 2019 to June 30, 2020. The Company can terminate the agreement if they are not satisfy with the performance of the consulting firm and the consulting firm should return all the issued shares. The Company recorded compensation expense of $108,000 and $216,000 for the three and six months ended December 31, 2019, respectively.
Authorized grants, description													Included in a Board resolution dated January 30, 2016, the Company’s CEO is authorized to grant to the employees up to one million shares under the Plan.
Compensation expense															111,000		111,000
Issuance of common stock														$ 1,427,600
Stock-based compensation															491,609		906,317
Warrants expire term																5 years 6 months
Term expire																3 years 6 months
Securities Purchase Agreements [Member]
Equity (Details) [Line Items]
Aggregate shares of common stock (in Shares)	1,170,000			230,000			720,000
Service Agreements [Member]
Equity (Details) [Line Items]
Restricted share price (in Dollars per share)			$ 222,000
Issuance of common stock shares (in Shares)						80,000
Fair value of common stock						$ 508,000
Consulting services agreement , description						The scope of services primarily covers legal consultation in PRC during the two-year service period from July 2018 to June 2020. The consulting entity is entitled to be granted the common stock on a quarterly basis in eight equal installments.
Legal expense															63,500		127,000
Issuance of common stock			$ 300,000
Consulting services agreement [Member]
Equity (Details) [Line Items]
Consulting services agreement , description					the Company entered into a consulting services agreement with a consulting entity, which provides management consulting and advisory services. The scope of services primarily covered advising on business development, strategic planning and compliance during the six months service period from April 8, 2019 to October 7, 2019. The Company issued 60,000 shares of common stock as remuneration for the services, which were issued as restricted shares at $4.25 per share on April 16, 2019 to the consulting entity. These shares were valued at $255,000. The Company recorded compensation expense of $0 and $127,500 for the three and six months ended December 31, 2019, respectively.
Restricted Stock [Member]
Equity (Details) [Line Items]
Restricted common shares (in Shares)									18,000	120,000
Restricted common shares fair value									$ 63,000	$ 432,000
Restricted per share value (in Dollars per share)									$ 3.50
Warrant [Member]
Equity (Details) [Line Items]
Purchase of warrants (in Shares)				0.68			720,000
Purchase price per share (in Dollars per share)				$ 156,400			$ 1.46
Description of warrant rights							The warrants will expire on March 16, 2026. The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions. The warrants contain a mandatory exercise right for the Company to force exercise the warrants if the Company’s common stock trades at or above $4.38 for 20 consecutive trading days, provided, among other things, that the shares issuable upon exercise of the are registered or may be sold pursuant to Rule 144 and the daily trading volume exceeds 60,000 shares of common stock per trading day on each trading day in a period of 20 consecutive trading days prior to the applicable date.
Compensation expense															156,400		156,400
Consultants [Member]
Equity (Details) [Line Items]
Common stock issued for services, shares (in Shares)												50,000
Restricted share price (in Dollars per share)												$ 12.65
Restricted common stock value issued																	632,500
Chief Executive Officer [Member]
Equity (Details) [Line Items]
Compensation expense															$ 0		$ 63,000
Series A Convertible Preferred Stock [Member]
Equity (Details) [Line Items]
Aggregate issued shares (in Shares)																		860,000	860,000
Series A Preferred Stock [Member]
Equity (Details) [Line Items]
Warrants price per share (in Dollars per share)																		$ 1.66

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Equity (Details) - Schedule of status of warrants outstanding and exercisable - Warrant [Member]	6 Months Ended
	Dec. 31, 2020 $ / shares shares
Equity (Details) - Schedule of status of warrants outstanding and exercisable [Line Items]
Warrants outstanding, beginning | shares	400,000
Warrants outstanding, weighted average exercise price, beginning | $ / shares	$ 8.75
Warrants outstanding, ending | shares	3,322,000
Warrants outstanding, weighted average exercise price, ending | $ / shares	$ 3.16
Warrants exercisable | shares	3,322,000
Warrants exercisable | $ / shares	$ 3.16
Issued | shares	2,922,000
Issued | $ / shares	$ 2.39
Exercised | shares
Exercised | $ / shares
Expired | shares
Expired | $ / shares

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Equity (Details) - Schedule of warrants outstanding	6 Months Ended
	Dec. 31, 2020 $ / shares shares
2020 warrants [Member]
Equity (Details) - Schedule of warrants outstanding [Line Items]
Warrants Exercisable | shares	720,000
Weighted Average Exercise Price | $ / shares	$ 1.825
Average Remaining Contractual Life	5 years 76 days
2020 warrants [Member]
Equity (Details) - Schedule of warrants outstanding [Line Items]
Warrants Exercisable | shares	1,032,000
Weighted Average Exercise Price | $ / shares	$ 1.99
Average Remaining Contractual Life	5 years 124 days
2020 warrants [Member]
Equity (Details) - Schedule of warrants outstanding [Line Items]
Warrants Exercisable | shares	1,170,000
Weighted Average Exercise Price | $ / shares	$ 3.10
Average Remaining Contractual Life	3 years 160 days
2018 Series A [Member]
Equity (Details) - Schedule of warrants outstanding [Line Items]
Warrants Exercisable | shares	400,000
Weighted Average Exercise Price | $ / shares	$ 8.75
Average Remaining Contractual Life	2 years 255 days

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Equity (Details) - Schedule of outstanding options - Stock Incentive Plan [Member]	6 Months Ended
	Dec. 31, 2020 $ / shares shares
Equity (Details) - Schedule of outstanding options [Line Items]
Options outstanding, Beginning | shares	17,000
Weighted Average Exercise Price, Options outstanding, Beginning | $ / shares	$ 6.05
Options outstanding, ending | shares	17,000
Weighted Average Exercise Price, Options outstanding, ending | $ / shares	$ 6.05
Options exercisable | shares	17,000
Weighted Average Exercise Price, Options exercisable | $ / shares	$ 6.05
Granted | shares
Weighted Average Exercise Price, Granted | $ / shares
Exercised | shares
Weighted Average Exercise Price, Exercised | $ / shares
Cancelled, forfeited or expired | shares
Weighted Average Exercise Price, Cancelled, forfeited or expired | $ / shares

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Equity (Details) - Schedule of status of options outstanding and exercisable - Equity Option [Member]	6 Months Ended
	Dec. 31, 2020 $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding Options, Number	17,000
Exercisable Options, Number	17,000
Exercise Price Range One [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding Options, Exercise Price (in Dollars per share) | $ / shares	$ 10.05
Outstanding Options, Number	2,000
Outstanding Options, Average Remaining Contractual Life	2 years 29 days
Exercisable Options, Average Exercise Price (in Dollars per share) | $ / shares	$ 10.05
Exercisable Options, Number	2,000
Exercisable Options, Average Remaining Contractual Life	2 years 29 days
Exercise Price Range Two [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding Options, Exercise Price (in Dollars per share) | $ / shares	$ 5.50
Outstanding Options, Number	15,000
Outstanding Options, Average Remaining Contractual Life	204 days
Exercisable Options, Average Exercise Price (in Dollars per share) | $ / shares	$ 5.50
Exercisable Options, Number	15,000
Exercisable Options, Average Remaining Contractual Life	204 days

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Non-controlling interest (Details) - Schedule of non-controlling interest - Noncontrolling Interest [Member] - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Redeemable Noncontrolling Interest [Line Items]
Total	$ (6,951,318)	$ (6,542,361)
Sino - China [Member]
Redeemable Noncontrolling Interest [Line Items]
Original paid-in capital	356,400	356,400
Additional paid-in capital	1,044	1,044
Accumulated other comprehensive income	61,176	376,398
Accumulated deficit	(6,206,533)	(6,199,188)
Total	(5,787,913)	(5,465,346)
Trans Pacific Logistics Shanghai Ltd. [Member]
Redeemable Noncontrolling Interest [Line Items]
Total	$ (1,163,405)	$ (1,077,015)

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Commitments and Contingencies (Details)	6 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies, description	As of December 31, 2020 and June 30, 2020, the Company has estimated its severance payments of approximately $101,000 and $84,000, respectively, which have not been reflected in its unaudited condensed consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future.
Employment agreements, description	In such case during the initial term of the agreement, the Company would need to pay such executive (i) the remaining salary through the date of December 31, 2023, (ii) two times of the then applicable annual salary if there has been no change in control, as defined in the employment agreements or three-and-half times of the then applicable annual salary if there is a change in control.

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Income Taxes (Details) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2020	Jun. 30, 2020
Income Taxes (Details) [Line Items]
Operating loss carryforwards			$ 6,456,000
Additional net operating loss	$ 1,147,000	$ 241,000
Tax benefit derived from such NOL	1,696,000	356,000
Future taxable income	677,000	677,000
Federal taxable income net operating loss	$ 1,400,000	1,400,000
Taxable income		$ 5,968,000
Allowance of DTA	100.00%	100.00%
The net increase in valuation deferred tax assets	$ 429,000	$ 699,000
UNITED STATES [Member]
Income Taxes (Details) [Line Items]
Future taxable income	8,152,000	8,152,000
PRC [Member]
Income Taxes (Details) [Line Items]
Operating loss carryforwards			$ 5,961,000
Additional net operating loss	4,000	1,000
Tax benefit derived from such NOL	$ 7,000	$ 2,000

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Income Taxes (Details) - Schedule of income tax expenses - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Current
Total income tax expenses	$ (3,450)	$ (14,747)	$ (3,450)	$ (14,747)
U.S. [Member]
Current
Current income tax expenses	(3,450)		(3,450)
PRC [Member]
Current
Current income tax expenses		$ (14,747)		$ (14,747)

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Income Taxes (Details) - Schedule of deferred tax assets - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Net operating loss
Total deferred tax assets	$ 8,162,000	$ 7,463,000
Valuation allowance	(8,162,000)	(7,463,000)
Deferred tax assets, net - long-term
U.S. [Member]
Allowance for doubtful accounts
Allowance for doubtful accounts	1,332,000	1,329,000
Net operating loss
Net operating loss	2,220,000	1,756,000
PRC [Member]
Allowance for doubtful accounts
Allowance for doubtful accounts	3,118,000	2,888,000
Net operating loss
Net operating loss	$ 1,492,000	$ 1,490,000

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Income Taxes (Details) - Schedule of income tax payable - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Schedule of income tax payable [Abstract]
VAT tax payable	$ 1,139,486	$ 1,037,620
Corporate income tax payable	2,353,113	2,180,727
Others	68,952	62,001
Total	$ 3,561,551	$ 3,280,348

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Concentrations (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Concentrations (Details) [Line Items]
Gross accounts receivable percentage		93.10%		93.10%
Revenue Benchmark [Member]
Concentrations (Details) [Line Items]
Number of customer	1		1
Number of Suppliers	2	4		5
Revenues [Member]
Concentrations (Details) [Line Items]
Number of customer	2		2
Number of Suppliers			2
Major Customer One [Member] | Revenue Benchmark [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage	99.90%	39.00%	92.90%
Major Customer One [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage	79.20%		79.20%	38.30%
Major Customer Two [Member] | Revenue Benchmark [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage		33.60%
Major Customer Two [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage	20.70%		20.70%	32.00%
Major Customer Three [Member] | Revenue Benchmark [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage		24.70%
Major Customer Three [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Number of customer		3		3
Concentrations risks, percentage				26.20%
Major Supplier One [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage				39.90%
Major Supplier One [Member] | Revenue Benchmark [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage	44.30%		46.30%
Major Supplier One [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage		27.00%
Major Supplier Two [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage			37.40%	14.20%
Major Supplier Two [Member] | Revenue Benchmark [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage	42.10%
Major Supplier Two [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage		23.00%
Major Supplier Three [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage				12.10%
Major Supplier Three [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage		15.80%
Major Supplier Four [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage				11.30%
Major Supplier Four [Member] | Revenues [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage		13.00%
Major Supplier Five [Member]
Concentrations (Details) [Line Items]
Concentrations risks, percentage				11.10%

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Segment Reporting (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Segment Reporting [Abstract]
Gross revenue	$ 12.9	$ 22.0
Gross cost of revenue	$ 12.0	$ 20.5

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Segment Reporting (Details) - Schedule of information by segment - USD ($)	3 Months Ended			6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019		Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net revenues	$ 1,884,440	$ 2,021,124		$ 3,021,239	$ 3,807,350
Cost of revenues	1,688,464	755,645		2,783,690	1,439,049
Gross profit	195,976	1,265,479		237,549	2,368,301
Depreciation and amortization	81,409	82,533		165,128	237,011
Total capital expenditures		$ 2,482			$ 7,020
Gross margin%	10.40%	62.60%		7.90%	62.20%
Total revenues	$ 1,884,440	$ 2,021,124		$ 3,021,239	$ 3,807,350
Freight Logistics Services [Member]
Segment Reporting Information [Line Items]
Net revenues	1,884,440	1,503,500	[1]	2,814,394	2,745,641	[2]
Cost of revenues	1,688,464	673,646	[1]	2,606,722	1,221,329	[2]
Gross profit	195,976	$ 829,854		207,672	1,524,312
Depreciation and amortization	3,600			$ 7,050	7,686
Total capital expenditures
Gross margin%	10.40%	55.20%		7.40%	55.50%
Container Trucking Services [Member]
Segment Reporting Information [Line Items]
Net revenues		$ 17,624			$ 61,709
Cost of revenues		15,415			55,314
Gross profit		2,209			6,395
Depreciation and amortization		$ 3,389			47,407
Total capital expenditures
Gross margin%		12.50%			10.40%
Shipping Agency and Management Services [Member]
Segment Reporting Information [Line Items]
Net revenues		$ 500,000		206,845	$ 1,000,000
Cost of revenues		66,584		176,968	162,406
Gross profit		433,416		29,877	837,594
Depreciation and amortization	$ 77,809	79,144		$ 158,078	181,918
Total capital expenditures		$ 2,482			$ 7,020
Gross margin%		86.70%		14.40%	83.80%
PRC [Member]
Segment Reporting Information [Line Items]
Total revenues	$ 1,884,440	$ 1,503,500		$ 2,814,394	$ 2,745,641
UNITED STATES
Segment Reporting Information [Line Items]
Total revenues		$ 517,624		$ 206,845	$ 1,061,709

[1] 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. There was no such transaction for the three months ended December 31, 2020.

[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. There was no such transaction for the six months ended December 31, 2020.

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Segment Reporting (Details) - Schedule of segment reporting total assets - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 10,662,480	$ 5,738,102
Shipping Agency and Management Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	6,809,748	2,531,074
Freight Logistic Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	3,830,485	3,176,165
Container Trucking Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 22,247	$ 30,863

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Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Related Party Transactions (Details) [Line Items]
Allowance for doubtful accounts		$ 4,091	$ 10,000	$ 41,341
Other payable of related party	2,132		2,132		$ 26,570
Other payables to broker-dealers and clearing organizations					$ 6,279
Zhiyuan Investment Group [Member]
Related Party Transactions (Details) [Line Items]
Amount due from Zhiyuan Investment Group	$ 384,331		$ 384,331
Allowance for doubtful accounts, percentage	10.00%		10.00%

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Related Party Transactions (Details) - Schedule of outstanding amounts due from related party - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Related Party Transactions (Details) - Schedule of outstanding amounts due from related party [Line Items]
Total	$ 345,898	$ 435,898
Less: allowance for doubtful accounts	(38,433)	(48,433)
Tianjin Zhiyuan Investment Group Co., Ltd. [Member]
Related Party Transactions (Details) - Schedule of outstanding amounts due from related party [Line Items]
Total	$ 384,331	$ 484,331

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Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions	Feb. 09, 2021	Feb. 06, 2021	Jan. 27, 2021
Subsequent Events (Details) [Line Items]
Aggregate share			1,086,956
Gross proceeds		$ 13.6	$ 4.0
Purchase price of five warrant			$ 3.68
Exercise price of warrant			$ 5.00
Purchase shares	3,655,000	1,998,500	1,086,956
Purchase price per share	$ 7.80	$ 6.805	$ 3.68
Warrant description	the Company entered into a securities purchase agreement with the investors pursuant to which the Company agreed to sell to the investors, and the Investors agreed to purchase from the Company, in a registered direct offering, an aggregate of 3,655,000 shares of the common stock of the Company, no par value per share, at a purchase price of $7.80 per share, for aggregate gross proceeds to the Company of $28,509,000. The Company also agreed to sell to the Investors warrants to purchase up to an aggregate of 3,655,000 shares of common stock at an exercise price of $7.80 per share. The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $26.2 million. The offering is closed on February 11, 2021. The Company has received the full amount of payment in February 2021.	The warrants shall be initially exercisable upon issuance and expire five and a half (5.5) years from the date of issuance. The exercise price and the number of shares of common stock issuable upon exercise of the warrants are subject to adjustment in the event of stock splits or dividends, or other similar transactions, but not as a result of future securities offerings at lower prices. Net proceeds to the Company from the sale of the shares and the warrants, after deducting estimated offering expenses and placement agent fees, are approximately $12.3 million. The offering is closed on February 10, 2021. The Company has received the full amount of payment in February 2021.
Warrant [Member]
Subsequent Events (Details) [Line Items]
Aggregate share			5,434,780
Purchase shares		1,998,500
Purchase price per share		$ 6.805