Quarterly report pursuant to Section 13 or 15(d)

GOING CONCERN

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GOING CONCERN
9 Months Ended
Mar. 31, 2019
Going Concern  
GOING CONCERN

NOTE 2 – GOING CONCERN  

 

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying unaudited condensed consolidated financial statements, the Company has generated no revenues during three and nine months ended March 31, 2019, has a deficit of approximately $5,410,000 at March 31, 2019, and continues to incur significant losses since inception. Management believes that these circumstances, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. 

 

The Company’s management recognizes that the Company must generate sales and additional resources to enable it to continue to develop its operations. Based on increased demand for internet services in China, including internet security and big data integration, the Company’s management team expects healthy growth in its business. On December 21, 2018, the company completed an underwritten initial public offering of Common Stock with net proceeds $5.2 million, after deducing placement agent’ commissions and other offering costs and $600,000 of offering net proceeds held in escrow, which provides the Company with working capital for its operations for calendar year 2019. The Company plans to transfer the offering net proceeds to China during the fourth quarter of fiscal year 2018. The Company expects to generate its revenue through continuing establishment and ultimate potential expansion its business and product innovation and development. If revenue is not generated or does not reach the level anticipated in the Company’s plans, in order to maintain working capital sufficient to support the Company’s operation and finance the future growth of it business, the Company expects to fund any cash flow shortfall through financial support commitment from the Company’s major stockholder and public or private issuance of securities. Additional cash resources may not be available to the Company on desirable terms, or at all, if and when needed by the Company, and if the Company is faced with a lack of financial resources, its prospects, business and results of operations will be adversely affected.