Disposal of Vie and Subsidiairies

12 Months Ended

Jun. 30, 2022

Disposal of Vie and Subsidiairies [Abstract]

DISPOSAL OF VIE AND SUBSIDIAIRIES

Note 3. DISPOSAL OF VIE AND SUBSIDIAIRIES

On December 31, 2021, the Company entered into a series of agreements to terminate its variable interest entity (“VIE”) structure and deconsolidated its formerly controlled entity Sino-Global Shipping Agency Ltd. (“Sino-China”). The Company controlled Sino-China through its wholly owned subsidiary Trans Pacific Shipping Limited (“Trans Pacific Beijing”). The Company made the decision to dissolve the VIE structure and Sino-China because Sino-China has no active operations and the Company wanted to remove any potential risks associated with any VIE structures. In addition, the Company dissolved its subsidiary Sino-Global Shipping LA, Inc. On March 14, 2022, the company discontinued its subsidiary Sino-Global Shipping Canada, Inc., no gain or loss was recognized in the deconsolidation.

Since the disposal did not represent any strategic change of the Company’s operation, the disposal was not presented as discontinued operations.

Net assets of the entities disposed and loss on disposal was as follows:

	For the Year Ended
	June 30, 2021
	VIE		Subsidiaries		Total
Total current assets	$	83,573	$	20.898	$	104.471
Total other assets		8,723		-		8,723
Total assets		92,296		20,898		113.194
Total current liabilities		41,608		1,100		42.708
Total net assets		50,688		19,798		70,486
Noncontrolling interests		5,919,050		-		5,919,050
Exchange rate effect		142,080		-		142,080
Total loss on disposal	$	6,111,818	$	19,798	$	6,131,616