Other Long-Term Assets – Deposits, Net (Tables)

9 Months Ended

Mar. 31, 2022

Other Long Term Assets Deposits [Abstract]

Schedule of other long-term assets – deposits

	March 31,			June 30,
	2022			2021
Rental and utilities deposits	$	93,544		$	111,352
Freight logistics deposits (1)		50,000			3,181,746
Total other long-term assets - deposits	$	143,544		$	3,293,098
Less: allowances for deposits		(9,331	)		(3,177,127	)
Other long-term assets- deposits, net	$	134,213		$	115,971

(1) On March 8, 2018, the Company entered into contract with BaoSteel Resources Co., Ltd (“BaoSteel”) to provide supply chain services for BaoSteel. The contract required the Company to pay approximately $3.1 million (RMB 20 million) of deposit. 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 term expires by March 2023 or the contract is terminated by either party. Due to impact of COVID-19 and recent rising freight costs, the Company has not been able to fulfill the contract to BaoSteel  and expect it may not be able to collect the full deposit, as such the Company provided full allowance for the $3.1 million deposit with BaoSteel in fiscal year 2019. The Company wrote off the $3.1 million deposit during the nine months ended March 31, 2022.

Schedule of movement of allowance for deposits

	March 31,			June 30,
	2022			2021
Beginning balance	$	3,177,127		$	-
Allowance for deposits		-			3,098,852
Less: Write-off		(3,173,408	)		-
Exchange rate effect		5,612			78,275
Ending balance	$	9,331		$	3,177,127