Other Receivables, Net

3 Months Ended

Sep. 30, 2022

Other Receivables, Net [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	September 30,			June 30,
	2022			2022
Advances to customers*	$	4,052,528		$	3,943,547
Employee business advances		21,810			23,768
Total		4,074,338			3,967,315
Less: allowances for credit losses		(4,052,528	)		(3,942,258	)
Other receivables, net	$	21,810		$	25,057

* In fiscal year 2019 and 2020, the Company entered into certain contracts with customers (state-owned entities in China) 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 expire or the contracts are terminated by either party. 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 full allowance during the fiscal year ended June 30, 2020.

Movement of allowance for credit losses are as follows:

	September 30,		June 30,
	2022		2022
Beginning balance	$	3,942,258	$	6,024,266
Recovery for credit losses		-		(1,934,619	)
Exchange rate effect		110,270		(147,389	)
Ending balance	$	4,052,528	$	3,942,258