Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.19.3
Intangible Assets
3 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 4 – intangible assets

 

Intangible assets are summarized as follows:

 

    September 30,
2019
(Unaudited)
 

June 30,

2019

Software registration right   $ 36,352     $ 37,843  
Patent     14,684       15,286  
Value-added telecommunications business license     11,218       11,678  
Technology development     2 ,183,343       500,000  
Subtotal     2,245,597       564,807  
Less: Accumulated amortization     10,363       8,996  
Total   $ 2,235,234     $ 555,811  

  

Amortization expense for the three months ended September 30, 2019 and 2018 were $1,753 and $717, respectively.

 

On May 28, 2019, the Company entered into an agreement  with SDT Trade Co., Ltd., an unaffiliated party ("SDT"). SDT will assist the Company with technical development work related to the Company's security-related software and systems. Pursuant to the agreement, SDT will complete certain development work within twelve months and thereafter maintain the system for thirty-six months. The total amount to be paid under the agreement is $1,200,000. As of September 30, 2019, the Company paid SDT $1,000,000 recorded as intangible assets. However, the development has not commenced yet since the Company has not finalized the technology specifications.

 

On July 2, 2019, the Company entered into a technology development service agreement  with HW (HK) Limited, an unaffiliated party. Pursuant to the agreement, the Company appointed HW (HK) Limited to develop an eye protection technical system for a two period ending July 1, 2021. The total payments to made under the agreement is $1,200,000. As of September 30, 2019, the Company paid HW (HK) Limited $900,000 and the technology development is in process.

 

On July 16, 2019, the Company entered into an agreement with Beijing Chuangyan Zhixing Education Technology Co., Ltd., an unaffiliated party, to develop and promote an essential-qualities-oriented education (the so-called Suzhi education) platform. The Company plans to introduce this platform to schools across China. Pursuant to the agreement, the Company will pay RMB 2,000,000 (approximately $285,000) as fund to purchase the product needed. As of September 30, 2019, the Company paid $283,343 recorded as intangible assets.