Related Party Balance and Transactions

9 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

RELATED PARTY BALANCE AND TRANSACTIONS

Note 20. RELATED PARTY BALANCE AND TRANSACTIONS

Advance to suppliers-related party

The Company’s advances to suppliers – related party are as follows:

	March 31,		June 30,
	2022		2021
Bitcoin mining hardware and other equipment (1)	$	21,446,649	$	-
Total Advances to suppliers-related party	$	21,446,649	$	-

(1) On January 10, 2022, the Company’s joint venture, Thor Miner, entered into a Purchase Agreement with HighSharp. Pursuant to the Purchase Agreement, Thor Miner agreed to purchase certain cryptocurrency mining hardware and other equipment. Thor Miner and HighSharp agreed that Thor Miner shall make payment equal to 30% of the total purchase price within 10 days after the execution of the Purchase Agreement, and the remaining 70% for each order shall be paid before the shipment. On January 12, 2022, Thor Miner made a prepayment of $21,446,649 for the first order. 

Due from related party, net

As of March 31, 2022 and June 30, 2021, the outstanding amounts due from related parties consist of the following:

	March 31,			June 30,
	2022			2021
Tianjin Zhiyuan Investment Group Co., Ltd. (1)	$	-		$	384,331
Zhejiang Jinbang Fuel Energy Co., Ltd (2)		438,886			430,902
Shanghai Baoyin Industrial Co., Ltd (3)		1,379,808			-
LSM Trading Ltd (4)		570,000			-
Rich Trading Co. Ltd (5)		3,299,815			-
Less: allowance for doubtful accounts		(2,488,509	)		(384,331	)
Total	$	3,200,000		$	430,902

(1) In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (“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. Zhong Zhang, a former 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. Starting in late 2020, Mr. Zhang started selling off his shares of the Company and does not own shares of the Company as of June 30, 2021 and no longer a related party. Management’s reassessed the collectability and decided to provide full allowance for doubtful accounts as of June 30, 2021. The Company wrote off the balance for the three and nine months ended March 31, 2022.

(2) The Company advanced $477,278 to Zhejiang Jinbang Fuel Energy Co., Ltd (“Zhejiang Jinbang”) which is owned by Mr. Wang Qinggang, CEO and legal representative of Trans Pacific Shanghai Ltd. and Zhejiang Jinbang returned $39,356 for the year ended June 30, 2021. The advance is non-interest bearing and due on demand. There has been no change in the balance other than changes as a result of changes in exchange rates. Management’s reassessed the collectability and decided to provide full allowance for doubtful accounts as of March 31, 2022.

(3) The Company advanced $1,619119 to Shanghai Baoyin Industrial Co., Ltd. which is 30% owned by Wang Qinggang, CEO and legal representative of Trans Pacific Shanghai for the nine months end March 31, 2022. Shanghai Baoyin Industrial Co., Ltd repaid $239,311. The advance is non-interest bearing and due on demand. Management’s reassessed the collectability and decided to provide full allowance for doubtful accounts as of March 31, 2022.

(4) The Company advanced $570,000 to LSM Trading Ltd, which is 40% owned by the Company for the nine months ended March 31, 2022. The advance is non-interest bearing and due on demand. Management’s reassessed the collectability and decided to provide full allowance for doubtful accounts as of March 31, 2022.

(5) As of March 31, 2022, the Company entered into a project cooperation agreement with Rich Trading Co. Ltd USA (“Rich Trading”) for the trading of computer equipment. Rich Trading’s bank account was controlled by now-terminated members of the Company’s management and was, at the time, an undisclosed related party. According to the agreement, the Company was  to invest $4.5 million in the trading business operated by Rich Trading and the Company would  be entitled to 90% of profit generated by the trading business. As of March 31, 2022, the Company has advanced $3,299,815 for this project. As of the date of the report, $3,200,000 has been returned to the Company and the Company expects the remaining amount to be uncollectible and decided to provide allowance for doubtful accounts as of March 31, 2022.

Other payable - related party

As of March 31, 2022, the Company had payable to its then Chief Financial Officer of $2,000 which were included in other payable. As of June 30, 2021, the Company had payable to former Chief Executive Officer of $11,303 and to its former Chief Financial Officer of $2,516 which were included in other current liabilities. These payments were made on behalf of the Company for the daily business operational activities.

Revenue - related parties

For the three and nine months ended March 31, 2022, revenue from related party Zhejiang Jinbang amounted to $224,690 and nil, respectively. There is no related party revenue for the three and nine months ended March 31, 2021.