Other Receivables, Net

3 Months Ended

Sep. 30, 2021

Receivables [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	September 30,			June 30,
	2021			2021
Advances to customers*	$	4,100,308		$	6,025,670
Employee business advances		129,453			1,154
Total		4,229,761			6,026,824
Less: allowances for doubtful accounts		(4,098,496	)		(6,024,266	)
Other receivables, net – continuing operations	$	131,265		$	2,558

* As of September30, 2021 and June 30, 2021, 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 $10.0 million as of June 30, 2021. For the three months ended September 30, 2021 and 2020, the Company recovered $1,929,715 and $nil, respectively.

Movement of allowance for doubtful accounts are as follows:

	September 30,			June 30,
	2021			2021
Beginning balance	$	6,024,266		$	10,005,193
Provision (Recovery) for doubtful accounts		(1,929,715	)		(4,786,814	)
Less: write-off		-			(11,665	)
Exchange rate effect		3,945			817,550
Ending balance	$	4,098,496		$	6,024,266