Loan Receivable – Related Party	3 Months Ended
Sep. 30, 2021
Loan Receivable Related Party
Loan Receivable – Related Party	Note 4 - Loan Receivable – Related Party On October 25, 2020, the Company signed an agreement with a related party, which is also the Company’s major customer. The Company agreed to loan the customer the $9,311,854 (RMB60,000,000) at an annual interest rate of 7.2%. The actual loan amount shall prevail within the total amount. The loan is guaranteed by a Company’s supplier and due on October 25, 2021. The borrower is required to pay all the principal and the relevant interest in full amount on the due date. The Company has recorded an allowance for uncollectible amount of $2,167,448 as of September 30, 2021. The total loan receivable, net of allowance amounted $6,430,497 and $6,417,350 as of September 30, 2021 and June 30, 2021, respectively. The Company assessed the implication on ASC 606, Revenue from Contracts with Customers, and determined that the terms of the loan are at the fair market value and does not impact the revenue recognition of the Company.

Loan Receivable – Related Party

3 Months Ended

Sep. 30, 2021

Note 4 - Loan Receivable – Related Party

On October 25, 2020, the Company signed an agreement with a related party, which is also the Company’s major customer. The Company agreed to loan the customer the $9,311,854 (RMB60,000,000) at an annual interest rate of 7.2%. The actual loan amount shall prevail within the total amount. The loan is guaranteed by a Company’s supplier and due on October 25, 2021. The borrower is required to pay all the principal and the relevant interest in full amount on the due date. The Company has recorded an allowance for uncollectible amount of $2,167,448 as of September 30, 2021. The total loan receivable, net of allowance amounted $6,430,497 and $6,417,350 as of September 30, 2021 and June 30, 2021, respectively.

The Company assessed the implication on ASC 606, Revenue from Contracts with Customers, and determined that the terms of the loan are at the fair market value and does not impact the revenue recognition of the Company.