Credit Facilities (Tables)

12 Months Ended

Jun. 30, 2020

Summary of outstanding balances on short-term bank loans

Outstanding balances on short-term bank loans consisted of the following:


		Weighted
		average
Lenders	Maturities	interest rate		Collateral/Guarantee	June 30, 2020		June 30, 2019

Shanghai Pudong Development ("SPD") Bank Chongqing Nanbing Road Branch	April 22, 2020 (Fully repaid by October 2020)	6.09	%	A security deposit of $109,221 and guaranteed by the CEO and certain members of the family and affiliate	$	1,273,794	$	1,456,187
Chongqing Rural Commercial Bank	November 25, 2020	6.74	%	Guaranteed by the CEO and certain members of the family and affiliate		1,839,928		2,694,122
Chongqing Beibei Chouzhou Bank Co., Ltd. (Chouzhou Bank)	March 20, 2020 – in default*	6.96	%	Guaranteed by GA Yongpeng's properties recorded at RMB 36,626,600 (approximately $5.2 million) and Zeshu Dai's 6.25% of stock right of GA Yongpeng recorded at RMB 1,250,000 (approximately $0.2 million)		336,845		364,071
The Agriculture Bank of China Chongqing Yubei Branch	June 27, 2021	3.85	%	Guaranteed by the properties of JMC's CEO and CFO recorded at RMB 5,517,400 (approximately $0.8 million)		467,058		—
China Zheshang Bank Chongqing Branch	May 5, 2021	5.35	%	Guaranteed by the properties of JMC's CEO and CFO recorded at RMB 12,090,000 (approximately $1.7 million)		778,430		—
Total					$	4,696,055	$	4,514,380
Less: short term loans - banks - discontinued operations						(336,845)		(364,071)
Short term loans - banks - continuing operations					$	4,359,210	$	4,150,309

On September 25, 2020, the Chongqing Beibei District People’s Court issued a civil mediation letter, according to which CQ Pengmei shall repay Chouzhou Bank the principal and the interest. Approximately $16,000 (RMB 110,000) of principal and approximately $13,000 (RMB 93,466) of the interest will be due before October 21, 2020, all the remaining balance should be repaid for at least approximately $14,000 (RMB 100,000) on the 21th of each month since November 2020, and the repayment shall be completed no later than May 21, 2022. Since November 2020 to May 2022, the interest rate rises by 50%, which should be paid before 21th of each month. Wang Penglin, Wang Mingwen, Dai Zeshu, Chongqing Education Financing Guarantee Co., Ltd. and CQ Penglin shall bear joint and several liability for the above repayment. As of the date of this report, CQ Pengmei has paid off approximately $16,000 (RMB 114,939) to Chouzhou Bank as part of the repayment.

Summary of outstanding balances of short term third-party loans

Outstanding balances of short term third-party loans consisted of the following:


		Weighted
		average
Lenders	Maturities	interest rate		Collateral/Guarantee	June 30, 2020		June 30, 2019

Sichuan Toucu Financial Information Services Co., Ltd	September 3, 2020 (Fully repaid in September 2020)	9.0	%	None	$	63,554	$	407,758
Chongqing Puluosi Small Mortgage Co., Ltd.	Various amounts due between November 2018 and January 2019 – in default*	12.0	%	Guaranteed by the CEO and certain members of the family and affiliate		4,183,248		4,805,734
Gang Hu	September 4, 2022	7.13	%	None		120,303		—
Chongqing Reassurance Co., Ltd.	Due upon request	17.4	%	None		273,294		—
Chongqing Zhouyang Shipping Co., Ltd	December 28, 2019	18.0	%	None		—		72,814
Mei Yang	October 10, 2020 (Fully repaid by the date of this report)	24.0	%	None		7,077		43,688
Ping Wang	September 17, 2021	10.8	%	None		43,875		48,057
Yuzhu Hu	November 30, 2020	14.4	%	None		—		160,191
Yixuan Liu	September 11, 2020 (Renewed and to be due on September 11, 2022)	12.0	%	None		84,920		87,377
Shuming Yang	September 20, 2020 (Renewed and to be due on September 20, 2022)	12.0	%	None		169,839		174,754
Chunlan Zhuo	March 22, 2021	18.0	%	None		63,911		—
Qin Cao	October 22, 2020 (Fully repaid in October 2020)	24.0	%	None		30,005		72,814
Maohua Xia	Various amounts due between August 2020 and September 2020 (Fully repaid by the date of this report)	24.0	%	None		33,561		223,848
Chongqing Shouqing Trading Co., Ltd.	September 7, 2021	12.0	%	None		382,139		—
Shengli Huang	April 23, 2022	24.0	%	None		99,073		—
Xiaofen Ai	June 17, 2021	24.0	%	None		28,307		—
Chongqing Haobangshou Ecommerce Co., Ltd.	March 24, 2023	6.0	%	None		1,415,328		—
Bangwei Zhu	May 2, 2020	12.0	%	None		—		36,407
Mei Zhang	July 20, 2020 (Fully repaid by the date of this report)	24.0	%	None		49,536		72,814
Feng Zhou	February 28, 2022	12.0	%	None		14,153		—
Xiaolin Cao	November 30, 2020	—	%	None		500,000		—
Total loans from third parties					$	7,562,123	$	6,206,256
Total non-current loans from third parties						(2,074,871)		(3,131,007)
Total current loans from third parties					$	5,487,252	$	3,075,249
Less: current loans from third parties - discontinued operations						(474,135)		(626,201)
Current loans from third parties - continuing operations					$	5,013,117	$	2,449,048

*The Company received three complaints related to an approximately $1.4 million (RMB 10,000,000) loan that was due on November 13, 2018, an approximately $0.4 million (RMB 3,000,000) loan due on December 21, 2018, and an approximately $2.8 million (RMB 20,000,000) loan due on January 2, 2019. The following amounts have been accrued in the accompanying consolidated financial statements for the year ended June 30, 2020: (a) interest at a default interest rate of 18% totaling approximately $781,000 up to June 30, 2020 and (c) estimated legal cost of approximately $129,000. As of the date of this report, the Company has paid approximately $0.5 million (RMB 3,411,544) of the total repayment. On October 27, 2020, Chongqing Yubei District People’s Court froze CQ Penglin bank accounts with a total balance of approximately $26,000 (RMB 181,573). As of the date of this report, the accounts are still frozen.

Summary of outstanding balances of long term bank loan

The outstanding balance of long term bank loan consisted of the following:

Weighted

average

Lender

Maturity

interest rate

Collateral/Guarantee

June 30, 2020

June 30, 2019

Chongqing Dadukou Rongxing Village & Township Bank

September 20, 2020 (Subsequently in default*)

12.0

Guaranteed by CQ Penglin, CQ Pengmei, GA Yongpeng, CQ Mingwen, the CEO and certain members of the family

777,558

866,231

*On August 12, 2020, Chongqing Dadukou Rongxing Village & Township Bank (“Dadukou Rongxing”) sued CQ Penglin to repay the loan of Dadukou Rongxing approximately $0.9 million (RMB 6,629,447), which consists of principal of approximately $0.8 million (RMB 5,493,839) and approximately $0.1 million (RMB 1,135,608), in the Chongqing Dadukou District People’s Court. CQ Penglin, CQ Pengmei, GA Yongpeng, CQ Mingwen, the CEO and certain members of the family guaranteed the loan shall bear joint and several lability for the repayment. As of the date of this report, the Chongqing Dadukou District People’s Court has not held a trial.