RELATED PARTY TRANSACTIONS
|9 Months Ended|
Mar. 31, 2019
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
Note 8 – related party transactions
The Company’s President, Zhixin Liu, has paid certain operating expenses on behalf of the Company. As of March 31, 2019 and June 30, 2018, the amounts due to the President were $11,174 and $27,058, respectively. These amounts are interest-free, unsecured and due on demand. The Company has not received any demand for payment.
On January 1, 2016, the Company’s President entered into a car rental agreement with the Company. Pursuant to the agreement, the Company rents a car from the Company’s President for a monthly rent of approximately $750. The agreement was renewed and expires on December 31, 2020.
The rent paid under this agreement was $2,197 and $2,291 for the three months ended March 31, 2019 and 2018, respectively. The rent paid under this agreement was $6,591 and $6,872 for the nine months ended March 31, 2019 and 2018, respectively.
On November 11, 2017, the Company bought a used car for $2,916 from Harbin Jinfenglvyuan Biotechnology Co., Ltd, a related entity owned by Mr. Fu Liu, a director and significant shareholder of the Company.
In April 2017, the Company’s President entered into an apartment rental agreement with the Company. Pursuant to the agreement, the Company rents an apartment from the Company’s President with an annual rent of approximately $2,930. The agreement was renewed and the term was extended to April 30, 2020. Rent expense for the three and nine months ended March 31, 2019 was $733 and $2,197, respectively. Rent expense for the three and nine months ended March 31, 2018 was $764 and $2,290, respectively.
In March and April 2018, the Company entered into six membership service agreements with five entities and one individual, three of which are stockholders of the Company, and eleven agency agreements with eleven individuals, nine of which are stockholders of the Company. Pursuant to the membership service agreements, the Company offers member management services through the Company’s Xin Platform APP and charges the entering parties a service fee of RMB1,000 (approximately $150) per member. Pursuant to the agency agreements, the agents are authorized as agents to market Xin Platform APP in specific areas of China. Each agent is required to pay a Xin Platform APP usage fee of $750 and deposit $750 in financial products offered by China Minsheng Bank via the Xin Platform APP. Each agent will receive $8 for each customer that applies for a credit card of China Minsheng Bank via the Xin Platform APP. This project was suspended due to the change of product policy with China Minsheng Bank.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef