Segment Reporting

6 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 18. SEGMENT REPORTING

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in unaudited condensed consolidated financial statements for detailing the Company’s business segments. 

The Company’s chief operating decision maker is the Chief Operating Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. As of December 31, 2022, the Company determined that it had two operating segments: (1) freight logistics services which include shipping and warehouse services  and (2) the sale  of crypto mining machines.

The following tables present summary information by segment for the three and six months ended December 31, 2022 and 2021, respectively:

	For the Three Months Ended December 31, 2022
	Freight Logistics Services			Crypto-mining equipment sales			Total
Net revenues	$	1,255,411		$	235,520		$	1,490,931
Cost of revenues	$	1,311,137		$	-		$	1,311,137
Gross profit	$	(55,726	)	$	235,520		$	179,794
Depreciation and amortization	$	76,704		$	13,471		$	76,704
Total capital expenditures	$	-		$	-		$	-
Gross margin%		(4.4	)%		100.0	%		12.1	%

	For the Three Months Ended December 31, 2021
	Freight Logistics Services			Crypto-mining equipment sales			Total
Net revenues	$	1,041,925		$	-		$	1,041,925
Cost of revenues	$	1,024,891		$	-		$	1,024,891
Gross profit	$	17,034		$	-		$	17,034
Depreciation and amortization	$	137,807		$	-		$	137,807
Total capital expenditures	$	6,939		$	-		$	6,939
Gross margin%		1.6	%		-	%		1.6	%

	For Six Months Ended December 31, 2022
	Freight Logistics Services			Crypto-mining equipment sales			Total
Net revenues	$	1,979,570		$	732,565		$	2,712,135
Cost of revenues	$	2,056,764		$	-		$	2,056,764
Gross profit	$	(77,194	)	$	732,565		$	655,371
Depreciation and amortization	$	155,649		$	20,729		$	155,649
Total capital expenditures	$	150,966		$	40,777		$	150,966
Gross margin%		(3.9	)%		100.0	%		24.2	%

	For the Six Months Ended December 31, 2021 (Restated)
	Freight Logistics Services			Crypto-mining equipment sales			Total
Net revenues	$	1,857,935		$	-		$	1,857,935
Cost of revenues	$	2,071,759		$	-		$	2,071,759
Gross profit	$	(213,824	)	$	-		$	(213,824	)
Depreciation and amortization	$	278,517		$	-		$	278,517
Total capital expenditures	$	624,086		$	-		$	624,086
Gross margin%		(11.5	)%		-	%		(11.5	)%

Total assets as of:

	December 31,		June 30,
	2022		2022
Freight Logistic Services		31,894,338		44,058,444
Sale of crypto mining machines		6,921,218		20,789,296
Total Assets	$	38,815,556	$	64,847,740

The Company’s operations are primarily based in the PRC and U.S, where the Company derives all of its revenues. Management also reviews consolidated financial results by business locations.

Disaggregated information of revenues by geographic locations are as follows:

	For the Three Months Ended				For the Six Months Ended (Restated)
	December 31,		December 31,		December 31,		December 31,
	2022		2021		2022		2021
PRC	$	912,611	$	868,255	$	1,160,821	$	1,593,332
U.S.		578,320		173,670		1,551,314		264,603
Total revenues	$	1,490,931	$	1,041,925	$	2,712,135	$	1,857,935