Other Receivables, Net

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	December 31,			June 30,
	2021			2021
Advances to customers*	$	4,159,512		$	6,025,670
Project advance**		3,299,815			-
Employee business advances		190,702			1,154
Total		7,650,029			6,026,824
Less: allowances for doubtful accounts		(4,157,197	)		(6,024,266	)
Other receivables, net	$	3,492,832		$	2,558

*

As of December 31, 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, the Company had provided an allowance due to contract delay and recorded allowances of approximately $6.0 million and $10.0 million as of December 31, 2021 and June 30, 2021, respectively. For the three and six months ended December 31, 2021 and 2020, the Company recovered $1,941,054 and $nil, respectively.

**

As of December 31, 2021, the Company entered into a project cooperation agreement with Rich Trading Co. Ltd USA (“Rich Trading”) for trading of computer equipment. According to the agreement, the Company is to invest $4.5 million in the trading business operated by Rich Trading and the Company will be entitled to 90% of profit generated by the trading business. As of December 31, 2021, the Company has advanced $3,299,815 for this project.

Movement of allowance for doubtful accounts are as follows:

	December 31,			June 30,
	2021			2021
Beginning balance	$	6,024,266		$	10,005,193
Recovery for doubtful accounts		(1,941,054	)		(4,786,814	)
Less: write-off		-			(11,665	)
Exchange rate effect		73,985			817,552
Ending balance	$	4,157,197		$	6,024,266