Business
Datasea Announces Second Quarter 2020 Financial Results
New York, Feb. 18, 2020 (GLOBE NEWSWIRE) -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a technology company engaged in providing smart security
About this update from Datasea Intelligent Technology Ltd.
[{"type":"text","content":"New York, Feb. 18, 2020 (GLOBE NEWSWIRE) -- Datasea Inc. (NASDAQ: DTSS) (\"Datasea\" or the \"Company\"), a technology company engaged in providing smart security solutions and developing education-related technologies in China, announced its financial results for the three months ended December 31, 2019.\n Advances from Customers On March 5, 2018, the Company entered into separate agreements with two sales agents. Pursuant to the agreements, the Company authorized the agents to market the Company’s Safe Campus Management System. The term of the agreements is for five years and will expire on March 6, 2023 and July 1, 2023, respectively. In accordance with ASU 2016-08, Principal versus Agent Considerations (ASC 606), the Company determined that it was the principal in these two contracts and as such, the Company recorded the payments received from the two sales agents as advances. The Company will recognize revenue from these contracts as the sales agents sell the products and services to third parties. As of December 31 and June 30, 2019, the Company recorded $1,300,638 and $1,318,897 of advances from the sales agents, respectively. Revenue The Company did not generate any revenue during three and six months ended December 31, 2019 and 2018. Selling, General and Administrative Expenses Selling expenses were $58,146 and $71,973 for the three months December 31, 2019 and 2018, respectively. Selling expenses were $109,321 and $148,852 for the six months December 31, 2019 and 2018, respectively. The decrease in selling expenses was primarily attributed to a decrease in salary expenses. General and administration expenses increased $362,575, or 131.6% from $275,582 during the three months ended December 31, 2018 to $638,157 during the same period in 2019. The increases were attributed to increases in rent expenses and approximately $285,000 of capitalized technology was expensed during three months ended December 31, 2019. General and administration expenses increased $443,263, or 88.2% from $502,153 during the six months ended December 31, 2018 to $945,416 during the same period in 2019. The increases were attributed to increases in rent expenses and approximately $285,000 of capitalized technology was expensed during three months ended December 31, 2019. The Company incurred research and development expenses of $69,158 and $120,36...