XML 45 R6.htm IDEA: XBRL DOCUMENT v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net (loss) income $ (4,399,533) $ 4,363,591 $ 3,768,109
Net loss from discontinued operations 1,796,237 662,621 0
Net (loss) income from continuing operations (2,603,296) 5,026,212 3,768,109
Adjustments to reconcile net income to net cash (used in) provided by operating activities:      
Depreciation and amortization 508,354 521,925 542,189
Provision for doubtful accounts 1,488,629 743,986 2,425,718
Stock compensation expense 930,223 0 0
Late payment penalty expense 500,000 0 0
Amortization of operating lease right-of-use assets 73,346 0 0
Amortization of convertible debenture issuance cost and discount 357,853 0 0
Deferred tax (benefit) expense (166,673) 213,649 (126,936)
Change in operating assets and liabilities      
Accounts receivable 2,615,184 (16,864,582) (12,021,191)
Accounts receivable - related party 0 0 (40,780)
Other receivables 52,333 (157,440) (88,954)
Inventories 318,478 2,647 291,594
Prepayments (5,556,930) 93,508 209,777
Security deposits 1,388,179 (1,476,090) 0
Loan receivables - interest 0 727,338 (384,788)
Accounts payable (4,206,084) 5,852,139 68,175
Customer deposits (3,329,873) 73,946 554,889
Customer deposits - related party (1,421) (723) 32,049
Other payables and accrued liabilities 1,564,210 165,216 245,373
Operating lease liabilities (45,716) 0 0
Taxes payable 452,831 35,087 929,745
Net cash used in operating activities from continuing operations (5,660,373) (5,043,182) (3,595,031)
Net cash used in operating activities from discontinued operations (251,646) (224,079) 0
Net cash used in operating activities (5,912,019) (5,267,261) (3,595,031)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of plant and equipment (700,399) (20,635) (89,351)
Repayments from loan to third party 0 1,171,945 0
Cash received from acquisition of JMC 859,461 0 0
Net cash provided by (used in) investing activities from continuing operations 159,062 1,151,310 (89,351)
Net cash provided by investing activities from discontinued operations 0 42,234 0
Net cash provided by (used in) investing activities 159,062 1,193,544 (89,351)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Repayments from other receivables - related parties, net 0 741 2,736,001
(Repayments of) proceeds from other payables - related parties, net (2,028,451) 701,245 609,048
Proceeds from issuance of ordinary shares through private placements 0 200,000 0
Proceeds from issuance of ordinary shares through initial public offering, net 0 4,395,634 0
Proceeds from issuance of ordinary shares with redemption rights 0 0 1,800,000
Proceeds from short-term loans - banks 469,288 4,535,428 6,148,734
Repayments of short-term loans - banks (1,137,574) (4,755,264) (11,375,158)
Proceeds from short-term loans - third parties 770,906 1,174,453 11,134,708
Repayments of short-term loans - third parties (1,638,334) (322,285) (6,138,861)
Proceeds from short-term loans - related parties 0 331,075 0
Proceeds from long-term loan - banks 0 923,830 0
Repayments of long-term loan - banks (64,619) (1,004,659) 0
Proceeds from long-term loans - third parties 2,040,691 0 0
Repayment of long -term loans - Third Parties (2,844) 0 0
Proceeds from long-term loans - related parties 472,132 0 0
Repayments of long-term loans - related parties (76,793) 0 0
Repayment of note payable 0 0 (1,537,184)
Proceeds from convertiable debentures, net of issuance costs 5,480,000 0 0
Changes in security deposits (15,069) 648,828 615,426
Net cash provided by financing activities from continuing operations 4,269,333 6,829,026 3,992,714
Net cash used in financing activities from discontinued operations (192,325) (178,500) 0
Net cash provided by financing activities 4,077,008 6,650,526 3,992,714
EFFECT OF EXCHANGE RATE ON CASH (4,296) 320,103 (10,769)
CHANGES IN CASH (1,680,245) 2,896,912 297,563
CASH AND CASH EQUIVALENTS, beginning of year 3,216,005 319,093 21,530
CASH AND CASH EQUIVALENTS, end of year 1,535,760 3,216,005 319,093
LESS: CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS 2,523 19,015 0
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS 1,533,237 3,196,990 319,093
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid for income tax 0 0 0
Cash paid for interest 488,360 823,551 1,389,533
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES      
Other receivable - related party offset with other payable - related party upon execution of the tri-party offset agreement 1,195,585 439,479 50,627
Issuance of ordinary shares with redemption rights of mezzanine equity 0 1,800,000 0
Operating lease right-of-use assets obtained in exchange for operating lease liabilities 3,240,920 0 0
Issuance of ordinary shares for acquisition 2,658,909 0 0
Conversion of convertible debenture into ordinary shares $ 857,165 $ 0 $ 0