Organization and Nature of Business

12 Months Ended

Jun. 30, 2022

Organization and Nature of Business [Abstract]

ORGANIZATION AND NATURE OF BUSINESS

Note 1. ORGANIZATION AND NATURE OF BUSINESS

The Company is a global logistics integrated solution provider that was founded in the United States in 2001. On September 18, 2007, the Company amended the Article of Incorporation and Bylaws to merge into a new corporation, Sino-Global Shipping America, Ltd. in Virginia. The Company primarily focus on providing logistics and support to businesses in the PRC and United States. On January 3, 2022, the Company changed its corporate name from Sino-Global Shipping America, Ltd. to Singularity Future Technology Ltd. to reflect its expanded operations into the digital assets business.

The Company conducts its business primarily through its wholly-owned subsidiaries in the PRC (including Hong Kong) and the United States, where the majority of its clients are located. As of June 30, 2022, the Company operated in two segments: (1) freight logistics services which include shipping and warehouse services, which are operated by its subsidiaries in both the United States and PRC, and (2) sale of crypto-mining machines, which were operated by its subsidiaries in the United States. For the year ended June 30, 2021, the Company was also engaged in shipping agency and management services, which were carried out by its subsidiary in the U.S. The Company no longer operates in the shipping agency segment because it did not receive any new orders for its services due to the uncertainty of the shipping management market which was negatively impacted by the COVID-19 pandemic.

On March 2, 2021, the Company entered into a purchase agreement (the “Agreement”) with Hebei Yanghuai Technology Co., Ltd. (“Yanghuai”) for the purchase of 2,783 digital currency mining servers. The Company acquired approximately $0.9 million of crypto equipment from Yanghuai. Over the last two months of the Company’s 2021 fiscal year, national and local governments in China gradually restricted and banned cryptocurrency mining operations, causing owners of servers to cease operations. Based on an amended agreement signed by the Company and Yanghuai on September 17, 2021, the Company is not liable for the remainder of the contract price and has title to half of the cryptocurrency products. The Company recorded impairment for the mining equipment in the last quarter of 2021 in the amount of approximately $0.9 million.

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 both the VIE structure and Sino-China because Sino-China had 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 on December 26, 2021 as this subsidiary had no material operation, Inc. On March 14, 2022, the Company dissolved its subsidiary Sino-Global Shipping Canada, Inc. (See Note 3 for details).

The outbreak of the novel coronavirus (COVID-19) beginning in late January 2020 in the PRC has spread rapidly to many parts of the world. In March 2020, the World Health Organization declared the COVID-19 as a pandemic. This has resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities in China and the U.S. Given the rapidly expanding nature of the COVID-19 pandemic, and because majority of the Company’s freights logistic segments and its workforce are concentrated in China., the Company’s business, results of operations, and financial condition have been adversely affected for the year ended June 30, 2022 and 2021. In early December 2022, the Chinese government eased the strict control measure for COVID-19, which has led to a surge in increased infections and a disruption in our business operations. Any future impact of COVID-19 on the Company’s operation results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and resurgence of COVID-19 variants and the actions taken by government authorities to contain COVID-19 or treat its impact, almost all of which are beyond our control.

As of June 30, 2022, the Company’s subsidiaries included the following:

Name		Background	Ownership
Sino-Global Shipping New York Inc. (“SGS NY”)	● ● ●	A New York Corporation Incorporated on May 03, 2013 Primarily engaged in freight logistics services	100% owned by the Company
Sino-Global Shipping Australia Pty Ltd. (“SGS AUS”)	● ● ●	An Australian Corporation Incorporated on July 03, 2008 No material operations	100% owned by the Company Dissolved in November 2022
Sino-Global Shipping HK Ltd. (“SGS HK”)	● ● ●	A Hong Kong Corporation Incorporated on September 22, 2008  No material operations	100% owned by the Company
Thor Miner Inc. (“Thor Miner”)	● ● ●	A Delaware Corporation Incorporated on October 13, 2021  Primarily engaged in sales of crypto mining machines	51% owned by the Company
Trans Pacific Shipping Ltd. (“Trans Pacific Beijing”)	● ● ●	A PRC limited liability company Incorporated on November 13, 2007. Primarily engaged in freight logistics services	100% owned the Company
Trans Pacific Logistic Shanghai Ltd. (“Trans Pacific Shanghai”)	● ● ●	A PRC limited liability company Incorporated on May 31, 2009 Primarily engaged in freight logistics services	90% owned by Trans Pacific Beijing
Ningbo Saimeinuo Supply Chain Management Ltd. (“SGS Ningbo”)	● ● ●	A PRC limited liability company Incorporated on September 11,2017 Primarily engaged in freight logistics services	100% owned by SGS NY

Blumargo IT Solution Ltd. (“Blumargo”)	● ● ●	A New York Corporation Incorporated on December 14, 2020 No material operations	100% owned by SGS NY
Gorgeous Trading Ltd (“Gorgeous Trading”)	● ● ●	A Texas Corporation Incorporated on July 01, 2021 Primarily engaged in warehouse related services	100% owned by SGS NY
Brilliant Warehouse Service Inc. (“Brilliant Warehouse”)	● ● ●	A Texas Corporation Incorporated on April 19,2021 Primarily engaged in warehouse house related services	51% owned by SGS NY
Phi Electric Motor In. (“Phi”)	● ● ●	A New York Corporation Incorporated on August 30, 2021 No operations	51% owned by SGS NY
SG Shipping &Risk Solution Inc(“SGSR”)	● ● ●	A New York Corporation Incorporated on September 29, 2021 No material operations	100% owned by the Company
SG Link LLC (“SG Link”)	● ● ●	A New York Corporation Incorporated on December 23, 2021 No operations	100% owned by SG Shipping & Risk Solution Inc on January 25, 2022

Restatement of previously issued financial statements

From March to June 2019, the Company’s subsidiary Trans Pacific Logistic Shanghai Ltd (“Trans Pacific Shanghai”) received approximately $6.2 million (RMB 40 million) from a related party, Shanghai Baoyin Industrial Co., Ltd. (“Shanghai Baoyin”) which is 30% owned by Wang Qinggang, CEO and legal representative of Trans Pacific Shanghai, to pay for accounts receivables of 6 different customers totaled RMB 40 million. Trans Pacific Shanghai then paid RMB 20 million and RMB 10 million to Zhangjiakou Baoyu Trading Co. Ltd. (“Baoyu”) in April 2019 and July 2019, respectively and paid RMB 10 million to Hebei Baoxie Trading Co., Ltd.(“ Hebei Baoxie”), a third party in July 2019.

As such for fiscal year ended June 30, 2019, accounts receivable was understated by RMB 40 million and advance to supplier was overstated by RMB 20 million and other payable from related party Shanghai Baoyin was understated by RMB 20 million. There was an overstatement of RMB 20 million in total assets and understatement of total liabilities of RMB 20 million.

During the fiscal year ended June 30, 2021, Baoxie repaid RMB 10 million to Trans Pacific Shanghai and Trans Pacific Shanghai advanced the RMB 10 million to Shanghai Baoyin. The RMB 10 million paid to Shanghai Baoyin was recorded as other receivable and the advance to Baoyu of RMB 30 million was reclassified from advance to supplier to other receivable and the Company provided full allowance of its receivables totaled RMB 40 million. The Company evaluated the transaction and determined there is no impact on its assets, liabilities and retained earnings as of June 30, 2020.

During the fiscal year ended June 30, 2021, Baoyu repaid a total of RMB 30 million to Trans Pacific Shanghai. The RMB 30 million received was recorded as recovery of bad debt. Trans Pacific Shanghai then loaned the RMB 30 million to Shanghai Baoyin. Shanghai Baoyin subsequently repaid RMB 4 million to Trans Pacific Shanghai and Trans Pacific Shanghai loaned RMB 4 million to Wang Qinggang. The RMB 30 million received was recorded as recovery of bad debt for other receivable and the RMB 30 million paid was recorded as a related party loan receivable.

The Company analyzed the transaction and determined the RMB 30 million was originally from related party Shanghai Baoyin and eventually paid back to the same related parties, therefore recovery of bad debt and loan receivable related parties was overstated by RMB 30 million for fiscal year 2021.

Effects of the restatement is as follows:

	As Previously Reported		Adjustments			As Restated
Consolidate balance sheet as of June 30, 2021
Loan receivable - related parties	$	4,644,969	$	(4,644,969	)	$	-
Total assets	$	52,803,117	$	(4,644,969	)	$	48,158,148

	As Previously Reported			Adjustments			As Restated
Consolidate Statement of Stockholder’s Equity as of June 30, 2021
Accumulated deficit	$	(30,244,937	)	$	(4,076,825	)	$	(34,321,762	)
Accumulated other comprehensive income (loss)		(625,449	)		(103,647	)		(729,096	)
Non-controlling Interest		(6,951,134	)		(464,497	)		(7,415,631	)
Total equity	$	47,069,142		$	(4,644,969	)	$	42,424,173

	As Previously Reported			Adjustments			As Restated
Consolidated statement of oeprations for the year ended June 30, 2021
Recovery (provision) for doubtful accounts, net	$	321,168		$	(4,529,806	)	$	(4,208,638	)
Net loss	$	(6,773,047	)	$	(4,529,806	)	$	(11,302,853	)
Other comprehensive loss - foreign currency		(488	)		(115,163	)	$	(115,651	)
Comprehensive loss	$	(6,773,535	)	$	(4,644,969	)	$	(11,418,504	)

	As Previously Reported			Adjustments			As Restated
Consolidated statement of cash flow for the year ended June 30, 2021
Cash flows from operating activities:
Net loss	$	(6,773,047	)	$	(4,529,806	)	$	(11,302,853	)
Provision for doubtful accounts	$	(321,168	)	$	4,529,806		$	4,208,638
Other receivable	$	4,227,239		$	(4,529,806	)	$	(302,567	)
Cash flows from investing activities:
Loan receivable - related parties	$	(4,529,806	)	$	4,529,806		$	-