ADVANCE TO SUPPLIERS

9 Months Ended

Mar. 31, 2021

NOTE 7 - ADVANCE TO SUPPLIERS

Advance to suppliers consisted of the following:

	March 31,		June 30,
	2021		2020

Giveaway goods inventory	$	572,561	$	401,593
Marketing services		336,814		1,858,265
Multimedia tablets		5,129,589		—
Multimedia demonstration machines		—		268,111
Other services		1,047,493		—
Total, net	$	7,086,457	$	2,527,969

The Company is required to make advance payments to the suppliers for the customized multimedia tablets to be manufactured and for firmware updates and maintenance services covering a period of three years to be provided by the supplier. According to the agreement, the remaining balance is due upon delivery of the tablets, and the advances are non-refundable while only defective goods can be exchanged.

The Company is required to make advance payments to the suppliers to purchase the customized multimedia demonstration machines to be manufactured by the supplier. According to the agreement, the remaining balance is due upon delivery of the machines, the advances are non-refundable while only defective goods can be exchanged.

Cang Bao Tian Xia International Art Trade Center, Inc. 10-Q