Condensed financial information of the parent company (Tables)

12 Months Ended

Jun. 30, 2020

Condensed financial information of the parent company

Statement of balance sheets of parent company

	June 30, 2020		June 30, 2019
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	163,640	$	—
Prepayments		18,406		—
Other receivables		28,940		—
Intercompany receivables		9,963,384		6,623,561
Total current assets		10,174,370		6,623,561
OTHER ASSETS
Investment in subsidiary		19,713,942		18,554,729
Total assets	$	29,888,312	$	25,178,290
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Loan from third party	$	500,000	$	—
Other payable - related parties		423,416		257,384
Convertible debenture, net		4,768,312		—
Accrued expenses		390,122		167,765
Intercompany payables		—		227,927
Total current liabilities		6,081,850		653,076
Total liabilities		6,081,850		653,076
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Ordinary shares, $0.01 par value, 50,000,000 shares authorized, 23,971,084 and 21,964,027 share issued and outstanding as of June 30, 2020 and 2019, respectively		239,711		219,640
Additional paid-in capital		15,765,411		11,031,937
Deferred share compensation		(47,708)		—
Statutory reserves		1,670,367		1,496,642
Retained earnings		7,034,899		12,085,566
Accumulated other comprehensive loss		(856,218)		(308,571)
Total shareholders' equity		23,806,462		24,525,214
Total liabilities and shareholders' equity	$	29,888,312	$	25,178,290

Statement of income and comprehensive income of parent company

	For the Years Ended June 30,
	2020		2019		2018
OPERATING EXPENSES
General and administrative	$	(2,512,271)	$	(309,466)	$	(115,683)
Stock compensation expense		(930,223)		—		—
Total operating expenses		(3,442,494)		(309,466)		(115,683)
LOSS FROM OPERATIONS		(3,442,494)		(309,466)		(115,683)
OTHER INCOME (EXPENSE)
Interest expense		(123,212)		—		—
Other finance expenses		(359,187)		—		—
Equity (loss) income of subsidiaries		(952,049)		4,673,057		3,883,792
Total other (expenses) income, net		(1,434,448)		4,673,057		3,883,792
NET (LOSS) INCOME		(4,876,942)		4,363,591		3,768,109
FOREIGN CURRENCY TRANSLATION ADJUSTMENT		(547,647)		(267,546)		133,553
COMPREHENSIVE (LOSS) INCOME	$	(5,424,589)	$	4,096,045	$	3,901,662

Statement of cash flows of parent company

	For the Years Ended June 30,
	2020		2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(4,876,942)	$	4,363,591	$	3,768,109
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Equity loss (income) of subsidiary		952,049		(4,673,057)		(3,883,792)
Stock compensation expense		930,223		—		—
Late payment penalty expense		500,000		—		—
Amortization of convertible debenture issuance cost and discount		357,853		—		—
Change in operating assets and liabilities
Other receivables		(28,940)		—		—
Prepayments		(18,406)		—		—
Accrued expenses		269,521		126,213		41,552
Intercompany		(3,567,750)		—		—
Net cash used in operating activities		(5,482,392)		(183,253)		(74,131)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from other payables - related parties, net		166,032		183,253		74,131
Proceeds from convertible debentures, net of issuance costs		5,480,000		—		—
Net cash provided by financing activities		5,646,032		183,253		74,131
CHANGES IN CASH AND CASH EQUIVALENTS		163,640		—		—
CASH AND CASH EQUIVALENTS, beginning of year		—		—		—
CASH AND CASH EQUIVALENTS, end of year	$	163,640	$	—	$	—
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES
Issuance of ordinary shares with redemption rights of mezzanine equity	$	—	$	1,800,000	$	—
Issuance of ordinary shares for acquisition	$	2,658,909	$	—	$	—
Conversion of convertible debenture into ordinary shares	$	857,165	$	—	$	—