Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 12, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | DATASEA INC. | |
Trading Symbol | DTSS | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 38,073,234 | |
Amendment Flag | false | |
Entity Central Index Key | 0001631282 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38767 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 45-2019013 | |
Entity Address, Address Line One | 20th Floor | |
Entity Address, Address Line Two | Tower B | |
Entity Address, Address Line Three | Guorui Plaza 1 Ronghua South Road | |
Entity Address, City or Town | Technological Development Zone | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100176 | |
City Area Code | 86 | |
Local Phone Number | 10-56145240 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
CURRENT ASSETS | ||
Cash | $ 1,218,748 | $ 19,728 |
Accounts receivable | 22,158 | 255,725 |
Inventory, net | 242,789 | 241,380 |
Value-added tax prepayment | 70,115 | 71,261 |
Prepaid expenses and other current assets | 6,358,043 | 701,423 |
Total current assets | 7,911,853 | 1,289,517 |
NONCURRENT ASSETS | ||
Long-term investment | 55,713 | 55,358 |
Property and equipment, net | 67,700 | 85,930 |
Intangible assets, net | 715,079 | 1,185,787 |
Right-of-use assets, net | 65,854 | 137,856 |
Total noncurrent assets | 904,346 | 1,464,931 |
TOTAL ASSETS | 8,816,199 | 2,754,448 |
CURRENT LIABILITIES | ||
Accounts payable | 296,177 | 1,005,059 |
Short term loan | 496,035 | 594,906 |
Unearned revenue | 473,061 | 609,175 |
Accrued expenses and other payables | 642,294 | 1,409,939 |
Operating lease liabilities | 34,367 | 124,640 |
Loan payables - current | 2,032,920 | |
Total current liabilities | 4,469,781 | 4,906,575 |
NONCURRENT LIABILITIES | ||
Operating lease liabilities | 17,781 | 26,449 |
Loan payables - non-current | 20,560 | 1,401,521 |
Total noncurrent liabilities | 38,341 | 1,427,970 |
TOTAL LIABILITIES | 4,508,122 | 6,334,545 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Common stock, $0.001 par value, 375,000,000 shares authorized, 38,073,234 and 27,784,133 shares issued and outstanding as of September 30, 2023 and June 30, 2023, respectively | 38,073 | 27,784 |
Additional paid-in capital | 32,194,070 | 24,122,973 |
Accumulated comprehensive income | 232,036 | 393,252 |
Accumulated deficit | (28,085,314) | (28,063,258) |
TOTAL COMPANY STOCKHOLDERS’ EQUITY (DEFICIT) | 4,378,865 | (3,519,249) |
Noncontrolling interest | (70,788) | (60,848) |
TOTAL EQUITY (DEFICIT) | 4,308,077 | (3,580,097) |
TOTAL LIABILITIES AND EQUITY (DEFICIT) | 8,816,199 | 2,754,448 |
Related Party | ||
CURRENT LIABILITIES | ||
Due to related parties | $ 494,927 | $ 1,162,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 375,000,000 | 375,000,000 |
Common stock, shares issued | 38,073,234 | 27,784,133 |
Common stock, shares outstanding | 38,073,234 | 27,784,133 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 6,880,743 | |
Cost of goods sold | 6,806,008 | |
Gross profit | 74,735 | |
Operating expenses | ||
Selling | 84,447 | 104,114 |
General and administrative | 693,060 | 884,960 |
Research and development | 155,004 | 106,628 |
Total operating expenses | 932,511 | 1,095,702 |
Loss from operations | (857,776) | (1,095,702) |
Non-operating income (expenses) | ||
Other expenses | (7,864) | (1,239) |
Interest income | 106 | 64 |
Total non-operating expenses, net | (7,758) | (1,175) |
Loss before income tax | (865,534) | (1,096,877) |
Income tax | 8 | |
Loss before noncontrolling interest from continuing operation | (865,534) | (1,096,885) |
Loss before noncontrolling interest from discontinued operation | 833,546 | (337,062) |
Less: loss attributable to noncontrolling interest from continuing operation | (9,932) | 5,135 |
Less: loss attributable to noncontrolling interest from discontinued operation | (101,759) | |
Net loss attribute to noncontrolling interest | (9,932) | (96,624) |
Net loss to the Company from continuing operation | (855,602) | (1,102,020) |
Net loss to the Company from discontinued operation | 833,546 | (235,303) |
Net loss to the Company | (22,056) | (1,337,323) |
Other comprehensive item | ||
Foreign currency translation gain (loss) attributable to the Company | (161,216) | 12,338 |
Foreign currency translation gain (loss) attributable to noncontrolling interest | 29,734 | (3,690) |
Comprehensive loss attributable to the Company | (183,272) | (1,324,985) |
Comprehensive income (loss) attributable to noncontrolling interest | $ 19,802 | $ (100,314) |
Basic and diluted net loss per share (in Dollars per share) | $ 0 | $ (0.05) |
Weighted average shares used for computing basic and diluted loss per share (in Shares) | 29,445,992 | 24,324,633 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Diluted net loss per share | $ 0 | $ (0.05) |
Weighted average shares used for computing diluted loss per share | 29,445,992 | 24,324,633 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Noncontrolling Interest | Total |
Balance at Jun. 30, 2022 | $ 24,325 | $ 20,729,559 | $ (18,583,566) | $ 283,587 | $ (854,273) | $ 2,453,905 |
Balance (in Shares) at Jun. 30, 2022 | 24,324,633 | |||||
Net loss | (1,337,323) | (96,624) | (1,337,323) | |||
Shares issued for stock compensation expense | 116,250 | 116,250 | ||||
Foreign currency translation gain (loss) | 12,338 | (3,690) | 12,338 | |||
Balance at Sep. 30, 2022 | $ 24,325 | 20,845,809 | (19,920,889) | 295,925 | (954,587) | 1,245,170 |
Balance (in Shares) at Sep. 30, 2022 | 24,324,633 | |||||
Balance at Jun. 30, 2023 | $ 27,784 | 24,122,973 | (28,063,258) | 393,252 | (60,848) | $ (3,519,249) |
Balance (in Shares) at Jun. 30, 2023 | 27,784,133 | 27,784,133 | ||||
Net loss | (22,056) | (9,932) | $ (22,056) | |||
Issuance of common stock for equity financing | $ 10,289 | 8,050,997 | 8,061,286 | |||
Issuance of common stock for equity financing (in Shares) | 10,289,101 | |||||
Shares issued for stock compensation expense | 20,100 | 20,100 | ||||
Foreign currency translation gain (loss) | (161,216) | (8) | (161,216) | |||
Balance at Sep. 30, 2023 | $ 38,073 | $ 32,194,070 | $ (28,085,314) | $ 232,036 | $ (70,788) | $ 4,378,865 |
Balance (in Shares) at Sep. 30, 2023 | 38,073,234 | 38,073,234 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Loss including noncontrolling interest | $ (31,988) | $ (1,433,947) |
Adjustments to reconcile loss including noncontrolling interest to net cash used in operating activities: | ||
Gain on disposal of subsidiary | (833,546) | |
Depreciation and amortization | 137,873 | 189,764 |
Operating lease expense | 74,181 | 203,111 |
Stock compensation expense | 20,100 | 116,250 |
Changes in assets and liabilities: | ||
Accounts receivable | (21,436) | 93,511 |
Inventory | 137 | 5,100 |
Value-added tax prepayment | (14,121) | (8,165) |
Prepaid expenses and other current assets | (5,692,660) | 79,124 |
Accounts payable | (179,875) | 107,162 |
Unearned revenue | (45,332) | (142,623) |
Accrued expenses and other payables | (56,515) | 192,535 |
Payment on operating lease liabilities | (101,231) | (154,519) |
Net cash used in operating activities | (6,744,413) | (752,697) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (330) | (403) |
Acquisition of intangible assets | (73,154) | |
Cash disposed due to disposal of subsidiary | (35) | |
Long-term investment | (29,288) | |
Net cash used in investing activities | (365) | (102,845) |
Cash flows from financing activities: | ||
Due to related parties | (675,828) | (30,206) |
Proceeds from loan payables | 879,422 | 820,508 |
Repayment of loan payables | (184,425) | |
Net proceeds from issuance of common stock | 8,061,286 | |
Net cash provided by financing activities | 8,080,455 | 790,302 |
Effect of exchange rate changes on cash | (136,657) | (5,903) |
Net increase (decrease) in cash | 1,199,020 | (71,143) |
Cash, beginning of period | 19,728 | 164,217 |
Cash, end of period | 1,218,748 | 93,074 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 5,551 | |
Cash paid for income tax |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Sep. 30, 2023 | |
Organization and Description of Business [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Datasea Inc. (the “Company”, or “we”, “us”, “our”) was incorporated in the State of Nevada on September 26, 2014 under the name Rose Rock Inc. and changed its name to Datasea Inc. on May 27, 2015. On May 26, 2015, the Company’s founder, Xingzhong Sun, sold 6,666,667 shares of common stock, par value $0.001 per share, of the Company (the “Common Stock”) to Zhixin Liu (“Ms. Liu”), an owner of Shuhai Skill (HK) as defined below. On October 27, 2016, Mr. Sun sold his remaining 1,666,667 shares of Common Stock of the Company to Ms. Liu. As a holding company with no material operations, the Company conducts a majority of its business activities through organizations established in the People’s Republic of China (“PRC), primarily by variable interest entity (the “VIE”). The Company does not have any equity ownership of its VIE, instead it controls and receives economic benefits of the VIE’s business operations through certain contractual arrangements. On October 29, 2015, the Company entered into a share exchange agreement (the “Exchange Agreement”) with the shareholders (the “Shareholders”) of Shuhai Information Skill (HK) Limited (“Shuhai Skill (HK)”), a limited liability company (“LLC”) incorporated on May 15, 2015 under the laws of the Hong Kong Special Administrative Region of the People’s Republic of China (the “PRC”). Pursuant to the terms of the Exchange Agreement, the Shareholders, who own 100% of Shuhai Skill (HK), transferred all of the issued and outstanding ordinary shares of Shuhai Skill (HK) to the Company for 6,666,667 shares of Common Stock, causing Shuhai Skill (HK) and its wholly owned subsidiaries, Tianjin Information Sea Information Technology Co., Ltd. (“Tianjin Information” or “WOFE”), an LLC incorporated under the laws of the PRC, and Harbin Information Sea Information Technology Co., Ltd., an LLC incorporated under the laws of the PRC, to become wholly-owned subsidiaries of the Company; and Shuhai Information Technology Co., Ltd., also an LLC incorporated under the laws of the PRC (“Shuhai Beijing”), to become a VIE of the Company through a series of contractual agreements between Shuhai Beijing and Tianjin Information. The transaction was accounted for as a reverse merger, with Shuhai Skill (HK) and its subsidiaries being the accounting survivor. Accordingly, the historical financial statements presented are those of Shuhai Skill (HK) and its consolidated subsidiaries and VIE. Following the Share Exchange, the Shareholders, Zhixin Liu and her father, Fu Liu, owned approximately 82% of the Company’s outstanding shares of Common Stock. As of October 29, 2015, there were 18,333,333 shares of Common Stock issued and outstanding, 15,000,000 of which were beneficially owned by Zhixin Liu and Fu Liu. After the Share Exchange, the Company, through its consolidated subsidiaries and VIE provide smart security solutions primarily to schools, tourist or scenic attractions and public communities in China. On October 16, 2019, Shuhai Beijing incorporated a wholly owned subsidiary, Heilongjiang Xunrui Technology Co. Ltd. (“Xunrui”), which develops and markets the Company’s smart security system products. On December 3, 2019, Shuhai Beijing formed Nanjing Shuhai Equity Investment Fund Management Co. Ltd. (“Shuhai Nanjing”), a joint venture in PRC, in which Shuhai Beijing holds a 99% ownership interest with the remaining 1% held by Nanjing Fanhan Zhineng Technology Institute Co. Ltd, an unrelated party that was supported by both Nanjing Municipal Government and Beijing University of Posts and Telecommunications. Shuhai Nanjing was formed for gaining the easy access to government funding and private financing for the Company’s new technology development and new project initiation. In January 2020, the Company acquired ownership in three entities for no consideration from the Company’s management, which set up such entities on the Company’s behalf (described below). On January 3, 2020, Shuhai Beijing entered into two equity transfer agreements (the “Transfer Agreements”) with the President, and a Director of the Company. Pursuant to the Transfer Agreements, the Director and the President, each agreed, for no consideration, to (i) transfer his 51% and 49% respective ownership interests, in Guozhong Times (Beijing) Technology Ltd. (“Guozhong Times”) to Shuhai Beijing; and (ii) transfer his 51% and 49% respective ownership interests, in Guohao Century (Beijing) Technology Ltd. (“Guohao Century”) to Shuhai Beijing. Guozhong Times and Guohao Century were established to develop technology for electronic products, intelligence equipment and accessories, and provide software and information system consulting, installation and maintenance services. On January 7, 2020, Shuhai Beijing entered into another equity transfer agreement with the President, the Director described above and an unrelated individual. Pursuant to this equity transfer agreement, the Director, the President and the unrelated individual each agreed to transfer his 51%, 16%, 33% ownership interests, in Guozhong Haoze (Beijing) Technology Ltd. (“Guozhong Haoze”) to Shuhai Beijing for no consideration. Guozhong Haoze was formed to develop and market the smart security system products. On August 17, 2020, Beijing Shuhai formed a new wholly-owned subsidiary Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd (“Jingwei”), to expand the security oriented systems developing, consulting and marketing business overseas. On November 16, 2020, Guohao Century formed Hangzhou Zhangqi Business Management Limited Partnership (“Zhangqi”) with ownership of 99% as an ordinary partner. On November 19, 2020, Guohao Century formed a 51% owned subsidiary Hangzhou Shuhai Zhangxun Information Technology Co., Ltd (“Zhangxun”) for research and development of 5G message technology. Zhangqi owns 19% of Zhangxun; accordingly, Guohao Century ultimately owns 69.81% of Zhangxun. On December 20, 2022, Guohao Century acquired a 30% ownership interests of Zhangxun from Zhengmao Zhang at the price of $0.15 (RMB 1.00). After the transaction, Guohao Century owns 81% of Zhangxun, and Zhangqi owns 19% of Hangzhou Zhangxun; On February 15, 2023, Guohao Century acquired a 9% ownership interests of Zhangxun from the Zhangqi at the price of $130,434 (RMB 900,000). After the transaction, Guohao Century owns 90% of Zhangxun, and Zhangqi owns 10% of Hangzhou Zhangxun; as a result, Guohao Century ultimately owns 99.9 % of Zhangxun. On July 20, 2023, the Company sold Zhangxun to a third party for RMB 2 ($0.28). On February 16, 2022, Shuhai Jingwei formed Shenzhen Acoustic Effect Management Limited Partnership (“Shenzhen Acoustic MP”) with 99% ownership interest, the remaining 1% ownership interest is held by a third party. On February 16, 2022, Shuhai Jingwei formed Shuhai (Shenzhen) Acoustic Effect Technology Co., Ltd (“Shuhai Shenzhen Acoustic Effect”), a PRC Company, in which Shuhai Jingwei holds 60% ownership interest, 10% ownership interest is held by Shenzhen Acoustic MP, and remaining 30% ownership interest is held by a third party. On October 18, 2022, Shuhai Jingwei acquired 30% ownership interest of Shuhai Acoustic Effect, a PRC Company from the third party at the price of approximately $0.15 (RMB 1.00). After the transaction, Shuhai Jingwei owns 90% of Shuhai Shenzhen Effect, and Shenzhen Acoustic MP still owns 10% of Shuhai Shenzhen Effect; accordingly, Shuhai Jingwei ultimately owns 100% of Shuhai Acoustic Effect. The book value of 30% interest acquired from the third party was $(26,993) due to its accumulated deficit. On March 4, 2022, Shuhai Beijing formed Beijing Yirui Business Management Development Center (“Yirui”) with 99% ownership interest as an ordinary partner, the remaining 1% ownership interest is held by Zhixin Liu. On March 4, 2022, Shuhai Beijing formed Beijing Yiying Business Management Development Center (“Yiying”) with 99% ownership interest as an ordinary partner, the remaining 1% ownership interest is held by Zhixin Liu. On July 31, 2023, Datasea establish a wholly owned subsidiary Datasea Acoustic, LLC (“Datasea Acoustic”) in the state of Delaware for expanding the products to the market in North America. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GOING CONCERN The accompanying consolidated financial statements (“CFS”) were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the three months ended September 30, 2023 and 2022, the Company had a net loss of approximately $22,056 and $1.34 million, respectively. The Company had an accumulated deficit of approximately $28.09 million as of September 30, 2023, and negative cash flow from operating activities of approximately $6.74 million and $0.75 million for the three months ended September 30, 2023 and 2022, respectively. The historical operating results including recurring losses from operations raise doubt about the Company’s ability to continue as a going concern. On August 1, 2023, the Company entered into two separate subscription agreements with a certain non-U.S. investor, pursuant to which the Company sold an aggregate of 4,760,000 shares of common stock at a $1.2 per share purchase price to the investor. On September 21, 2023, the Company received full payment of RMB 40,000,000 ($5.71 million) from the investor. On August 15, 2023, the Company entered into a subscription agreement with another non-U.S. investor, pursuant to which the Company agreed to sell and the investor agreed to purchase an aggregate of 2,962,963 shares of common stock at a $1.35 per share purchase price, with a total subscription price of $4,000,000. The investor paid the amount of $714,286 to the Company and the Company issued 529,101 shares as of the date of this report, and has promised to pay the remaining balance in full by March 2024. On September 13, 2023, the Company closed an underwritten public offering of 5,000,000 shares of common stock at a public offering price of $0.40 per share. The gross proceeds to the Company from this offering are approximately $2 million, before deducting any fees or expenses. In September 2023, the Company received $1.6 million net proceeds from this offering. If deemed necessary, management could seek to raise additional funds by way of admitting strategic investors or. Private or public offerings, or by seeking to obtain loans from banks or others, to support the Company’s research and development (“R&D”), procurement, marketing and daily operation. While management of the Company believes in the viability of its strategy to generate sufficient revenues and its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern depends upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. There is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its initiatives or attain profitable operations. If the Company is unable to raise additional funding to meet its working capital needs in the future, it may be forced to delay, reduce or cease its operations. BASIS OF PRESENTATION AND CONSOLIDATION The CFS were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding CFS. In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments, unless otherwise indicated) considered necessary for a fair presentation of our financial position at such date and the operating results and cash flows for such periods. Operating results for the three months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023, previously filed with the Securities Exchange Commission (“SEC”) on September 27, 2023. The accompanying CFS include the financial statements of the Company and its 100% owned subsidiaries Shuhai Information Skill (HK) Limited (“Shuhai Skill (HK)”), and Shuhai Information Technology Co., Ltd. (“Tianjin Information”), and its VIE, Shuhai Beijing, and Shuhai Beijing’s 100% owned subsidiaries – Heilongjiang Xunrui Technology Co. Ltd. (“Xunrui”), Guozhong Times (Beijing) Technology Ltd. (“Guozhong Times”), Guohao Century (Beijing) Technology Ltd. (“Guohao Century”), Guozhong Haoze, and Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. (“Jingwei”), and Guohao Century’s 99% owned subsidiary – Hangzhou Zhangqi Business Management Partnership (“Zhangqi”, a limited partnership) and 99.81% owned subsidiary – Hangzhou Shuhai Zhangxun Information Technology Co., Ltd. (“Zhangxun”) which consisted of 90% ownership from Guohao Century and 10% ownership from Zhangqi, and Shuhai Beijing’s 99% owned subsidiary–- Nanjing Shuhai Equity Investment Fund Management Co. Ltd. (“Shuhai Nanjing”). During the year ended June 30, 2022, the Company incorporated two new subsidiaries Shuhai (Shenzhen) Acoustic Effect Technology Co., Ltd (“Shuhai Acoustic”) and Shenzhen Acoustic Effect Management Partnership (“Shenzhen Acoustic MP”). All significant inter-company transactions and balances were eliminated in consolidation. The chart below depicts the corporate structure of the Company as of September 30, 2023. VARIABLE INTEREST ENTITY Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its CFS, the financial statements of Shuhai Beijing, its VIE. ASC 810 requires a VIE to be consolidated if the Company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. A VIE is an entity in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards of such entity, and therefore the Company is the primary beneficiary of such entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. Shuhai Beijing’s actual stockholders do not hold any kick-out rights that affect the consolidation determination. Through the VIE agreements, Tianjin Information, an indirect subsidiary of Datasea is deemed the primary beneficiary of Shuhai Beijing and its subsidiaries. Accordingly, the results of Shuhai Beijing and its subsidiaries were included in the accompanying CFS. Shuhai Beijing has no assets that are collateral for or restricted solely to settle their obligations. The creditors of Shuhai Beijing do not have recourse to the Company’s general credit. VIE Agreements Operation and Intellectual Property Service Agreement Under the terms of the Operation and Intellectual Property Service Agreement, Shuhai Beijing entrusts Tianjin Information to manage its operations, manage and control its assets and financial matters, and provide intellectual property services, purchasing management services, marketing management services and inventory management services to Shuhai Beijing. Shuhai Beijing and its stockholders shall not make any decisions nor direct the activities of Shuhai Beijing without Tianjin Information’s consent. Stockholders’ Voting Rights Entrustment Agreement Equity Option Agreement Equity Pledge Agreement As of this report date, there were no dividends paid from the VIE to the U.S. parent company or the shareholders of the Company. There has been no change in facts and circumstances to consolidate the VIE. The following financial statement amounts and balances of the VIE were included in the accompanying CFS as of September 30, 2023 and June 30, 2023, and for the three months ended September 30, 2023 and 2022, respectively. September 30, June 30, Cash $ 198,224 $ 13,717 Accounts receivable 388,101 255,725 Inventory 250,711 241,380 Other current assets 590,607 649,433 Total current assets 1,427,643 1,160,255 Property and equipment, net 32,620 42,886 Intangible asset, net 379,793 757,700 Right-of-use asset, net 52,864 60,348 Other non-current assets 55,712 55,358 Total non-current assets 520,989 916,292 Total assets $ 1,948,632 $ 2,076,547 Accounts payable $ 512,451 $ 650,406 Accrued liabilities and other payables 650,978 1,480,947 Lease liability 30,798 39,223 Loans payable 2,375,747 594,906 Other current liabilities 830,579 1,639,410 Total current liabilities 4,400,553 4,404,892 Lease liability - noncurrent 15,557 26,449 Long term long payable 20,560 1,401,521 Total non-current liabilities 36,117 1,427,970 Total liabilities $ 4,436,670 $ 5,832,862 For the For the Revenues $ 6,880,743 $ 1,164,305 Gross profit $ 74,735 $ 150,198 Net loss $ (419,473 )* $ (757,146 )** * exclude the gain from disposal of Zhangxun of $0.83 million. ** include the operation of Zhangxun USE OF ESTIMATES The preparation of CFS in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The significant areas requiring the use of management estimates include, but are not limited to, the estimated useful life and residual value of property, plant and equipment, provision for staff benefits, recognition and measurement of deferred income taxes and the valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to the CFS. CONTINGENCIES Certain conditions may exist as of the date the CFS are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s CFS. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. As of September 30, 2023 and June 30, 2023, the Company has no such contingencies. CASH Cash includes cash on hand and demand deposits that are highly liquid in nature and have original maturities when purchased of three months or less. ACCOUNTS RECEIVABLE The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. The Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit losses on financial instruments later codified as Accounting Standard codification (“ASC”) 326 (“ASC 326”), on July 1, 2023. The guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. There was no significant impact on the date of adoption of ASC 326. Under ASC 326, Accounts receivable are recorded at the invoiced amount, net of allowance for expected credit losses. The Company’s primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the Accounts receivable balance to the estimated net realizable value. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company’s customers’ financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates. All provisions for the allowance for doubtful accounts are included as a component of general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered. As of September 30, 2023 and June 30, 2023, the Company had a $0 bad debt allowance for accounts receivable. INVENTORY Inventory is comprised principally of intelligent temperature measurement face recognition terminal and identity information recognition products, and is valued at the lower of cost or net realizable value. The value of inventory is determined using the first-in, first-out method. The Company periodically estimates an inventory allowance for estimated unmarketable inventories when necessary. Inventory amounts are reported net of such allowances. There were $53,254 and $52,915 allowances for slow-moving and obsolete inventory (mainly for Smart-Student Identification cards) as of September 30, 2023 and June 30, 2023, respectively. PROPERTY AND EQUIPMENT Property and equipment are stated at cost, less accumulated depreciation. Major repairs and improvements that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method over estimated useful lives as follows: Furniture and fixtures 3-5 years Office equipment 3-5 years Vehicles 5 years Leasehold improvement 3 years Leasehold improvements are depreciated utilizing the straight-line method over the shorter of their estimated useful lives or remaining lease term. INTANGIBLE ASSETS Intangible assets with finite lives are amortized using the straight-line method over their estimated period of benefit. Evaluation of the recoverability of intangible assets is made to take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of the Company’s intangible assets are subject to amortization. No impairment of intangible assets has been identified as of the balance sheet date. Intangible assets include licenses, certificates, patents and other technology and are amortized over their useful life of three years. FAIR VALUE (“FV”) OF FINANCIAL INSTRUMENTS The carrying value of the Company’s short-term financial instruments, such as cash, accounts receivable, prepaid expenses, accounts payable, unearned revenue, accrued expenses and other payables approximates their FV due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. FAIR VALUE MEASUREMENTS AND DISCLOSURES FASB ASC Topic 820, “Fair Value Measurements,” defines FV, and establishes a three-level valuation hierarchy for disclosures that enhances disclosure requirements for FV measures. The three levels are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include other than those in level 1 quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement. As of September 30, 2023 and June 30, 2023, the Company did not identify any assets or liabilities required to be presented on the balance sheet at FV on a recurring basis. IMPAIRMENT OF LONG-LIVED ASSETS In accordance with FASB ASC 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets”, long-lived assets such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its FV. FV generally is determined using the asset’s expected future undiscounted cash flows or market value, if readily determinable. Assets to be disposed of are reported at the lower of the carrying amount or FV less cost to sell. For the three months ended September 30, 2023 and 2022, there was no impairment loss recognized on long-lived assets. UNEARNED REVENUE The Company records payments received in advance from its customers or sales agents for the Company’s products as unearned revenue, mainly consisting of deposits or prepayment for 5G products from the Company’s sales agencies. These orders normally are delivered based upon contract terms and customer demand, and the Company will recognize it as revenue when the products are delivered to the end customers. LEASES The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842. Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2023 and June 30, 2023. REVENUE RECOGNITION The Company follows Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606). The core principle underlying FASB ASC 606 is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are identified when possession of goods and services is transferred to a customer. FASB ASC Topic 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies each performance obligation. The Company derives its revenues from product sales and 5G messaging service contracts with its customers, with revenues recognized upon delivery of services and products. Persuasive evidence of an arrangement is demonstrated via product sale contracts and professional service contracts, with performance obligations identified. The transaction price, such as product selling price, and the service price to the customer with corresponding performance obligations are fixed upon acceptance of the agreement. The Company recognizes revenue when it satisfies each performance obligation, the customer receives the products and passes the inspection and when professional service is rendered to the customer, collectability of payment is probable. These revenues are recognized at a point in time after each performance obligations is satisfied. Revenue is recognized net of returns and value-added tax charged to customers. The following table shows the Company’s revenue by revenue sources: For the For the 5G Messaging $ 6,880,463 $ - 5G messaging 6,880,463 - Cloud platform construction cooperation project - - Acoustic Intelligence Business 280 - Ultrasonic Sound Air Disinfection Equipment 280 - Smart City business - - Smart community - - Total revenue $ 6,880,743 $ - SEGMENT INFORMATION FASB ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the method a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined the Company’s current operations constitutes a single reportable segment in accordance with ASC 280. The Company’s only business and industry segment is high technology and advanced information systems (“TAIS”). TAIS include smart city solutions that meet the security needs of residential communities, schools and commercial enterprises, and 5G messaging services including 5G SMS, 5G MMCP and 5G multi-media video messaging. All of the Company’s customers are in the PRC and all revenues for the three months ended September 30, 2023 and 2022 were generated from the PRC. All identifiable assets of the Company are located in the PRC. Accordingly, no geographical segments are presented. INCOME TAXES The Company uses the asset and liability method of accounting for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. The Company follows FASB ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of FASB ASC Topic 740, when tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. As of September 30, 2023, the Company had no unrecognized tax positions and no charges during the three months ended September 30, 2023, and accordingly, the Company did not recognize any interest or penalties related to unrecognized tax benefits. The Company files a U.S. and PRC income tax return. With few exceptions, the Company’s U.S. income tax returns filed for the years ending on June 30, 2018 and thereafter are subject to examination by the relevant taxing authorities; the Company uses calendar year-end for its PRC income tax return filing, PRC income tax returns filed for the years ending on December 31, 2017 and thereafter are subject to examination by the relevant taxing authorities. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed in the period when incurred. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department, and fees paid to third parties. NONCONTROLLING INTERESTS The Company follows FASB ASC Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI (previously referred to as minority interests) be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to non-controlling interests even when such allocation might result in a deficit balance. The net income (loss) attributed to NCI was separately designated in the accompanying statements of operations and comprehensive income (loss). Losses attributable to NCI in a subsidiary may exceed a non-controlling interest’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. On December 20, 2022, Guohao Century acquired a 30% ownership noncontrolling interests of Zhangxun from Zhengmao Zhang at the price of $0.15 (RMB 1.00). The Company recognized a paid in capital deficit of $982,014 from this purchase due to continued loss of Zhangxun. Subsequent to this purchase, the Company ultimately holds a 99.9% ownership of Zhangxun. On July 20, 2023, the Company sold Zhangxun to a third party for RMB 2 ($0.28). As of September 30, 2023, Zhangqi was 1% owned by noncontrolling interest, Shuhai Nanjing was 1% owned by noncontrolling interest, Shenzhen Acoustic MP was 1% owned by noncontrolling interest, Shuhai Shenzhen Acoustic was 0.1% owned by noncontrolling interest, Guozhong Times was 0.091% owned by noncontrolling interest, and Guozhong Haoze was 0.091% owned by noncontrolling interest. During the three months ended September 30, 2023 and 2022, the Company had loss of $9,932 and $96,624 attributable to the noncontrolling interest, respectively. CONCENTRATION OF CREDIT RISK The Company maintains cash in accounts with state-owned banks within the PRC. Cash in state-owned banks less than RMB500,000 ($76,000) is covered by insurance. Should any institution holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in these bank accounts. Cash denominated in RMB with a U.S. dollar equivalent of $1,161,277 and $17,432 as of September 30, 2023 and June 30, 2023, respectively, was held in accounts at financial institutions located in the PRC‚ which is not freely convertible into foreign currencies. Cash held in accounts at U.S. financial institutions is insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations up to $250,000 per depositor. As of September 30, 2023 and June 30, 2023, cash of $56,227 and $1,487 was maintained at U.S. financial institutions. Cash was maintained at financial institutions in Hong Kong, and was insured by the Hong Kong Deposit Protection Board up to a limit of HK $500,000 ($64,000). As of September 30, 2023 and June 30, 2023, the cash b |
Property and Equipment
Property and Equipment | 3 Months Ended |
Sep. 30, 2023 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: September 30, June 30, Furniture and fixtures $ 85,267 $ 84,014 Vehicle 487 484 Leasehold improvement 218,322 216,932 Office equipment 235,232 261,658 Subtotal 539,308 563,088 Less: accumulated depreciation 471,608 477,158 Total $ 67,700 $ 85,930 Depreciation for the three months ended September 30, 2023 and 2022 was $10,662 and $40,861, respectively. The Company disposed $29,148 property and equipment with related accumulated depreciation of $19,136 resulting from the disposal of Zhangxun (see Note 13). |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 30, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 4 – INTANGIBLE ASSETS Intangible assets are summarized as follows: September 30, June 30, Software registration or using right $ 1,636,801 $ 1,635,307 Patent 14,620 14,527 Software and technology development costs 11,684 631,250 Value-added telecommunications business license 15,472 15,374 Subtotal 1,678,577 2,299,458 Less: Accumulated amortization 963,498 1,110,671 Total $ 715,079 $ 1,185,787 Software registration or using right represented the purchase cost of customized software with its source code from third party software developer. Software and technology development cost represented development costs incurred internally after the technological feasibility was established and a working model was produced and was recorded as intangible asset. Amortization for the three months ended September 30, 2023 and 2022 was $127,211 and $148,903, respectively. The amortization expense for the next five years as of September 30, 2023 will be $508,844, $206,235, $0, $0 and $0. The Company disposed $0.62 million intangible assets with related accumulated amortization of $0.28 million resulting from the disposal of Zhangxun (see Note 13). |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Current Asset [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: September 30, June 30, Security deposit $ 46,217 $ 15,615 Prepaid expenses 6,064,208 563,203 Other receivables – Heqin 463,801 460,850 Advance to third party individuals, no interest, payable upon demand 4,527 11,764 Others 243,091 110,841 Total 6,821,844 1,162,273 Less: allowance for other receivables – Heqin 463,801 460,850 Total $ 6,358,043 $ 701,423 As of September 30, 2023, prepaid expenses mainly consisted of prepaid marketing expense of $5,570,573, prepaid 5G Messaging service fee recharge of $446,228, prepaid rent and property management fee of $12,872 and other prepayments of $34,535. As of June 30, 2023, prepaid expenses mainly consisted of prepayment of 5G Messaging service fee recharge of $500,395, prepaid rent and property management fee of $48,200 and other prepayments of $14,608. Prepaid marketing expense On September 14, 2023, Tianjin Information entered into a service agreement with Beijing Guorui Innovation Enterprise Management Consulting Co., Ltd (“Guorui Innovation”) for a duration of three years from September 15, 2023 to September 14, 2026. Under this agreement, Guorui Innovation is responsible for generating annual revenue of at least RMB 200 million during the service period through various activities, including but not limited to, the sale of 5G message phone recharge, 5G message gas card recharge, 5G message digital products, and other related products. The total market developing fee is 2% of the revenue generated by Guorui Innovation. As of September 30, 2023, the Company made a prepayment of RMB 13,000,600 ($1,810,719) to Guorui Innovation, which is 32.5% of market developing fee of target annual revenue for the first year. However, on October 9, 2023, both parties mutually agreed to terminate this service agreement. As a result of this termination, parties enter into a debt transfer agreement, in which Guorui will return the prepayment to Mr. Wanli Kuai on Company’s behalf for settling the debt that the Company owed to Mr. Kuai (See Note 8). On September 16, 2023, Tianjin Information entered an Operation Cooperation Agreement with an unrelated company, Beijing Jincheng Haoda Construction Engineering Co., Ltd (“Jincheng Haoda”), for marketing and promoting the sale of acoustic intelligence series products in oversea market. The cooperation term is from September 16, 2023 through September 15, 2026. Jincheng Haoda is committed to complete RMB 200 million sales performance in the first year, RMB 300 million sales performance in the second year, and RMB 400 million sales performance in the third year. The Company will pay 25% of the sales amount to Jincheng Haoda as marketing fee upon receipt of the sales amount, on monthly basis. As of September 30, 2023, the Company made a prepayment of RMB 14,997,000 ($2,088,777) to Jincheng Haoda for facilitating the quick occupying the Company’s products to the market, the prepayment was the 30% of marketing service fee of first year’s target sales to be completed by Jincheng Haoda. During the service term, the Company will perform the annual assessment, if Jincheng Haoda was not able to achieve the target annual sales, and did not reach 30% of target annual sales amount, Jincheng Haoda shall return the Company’s prepayment after deducting the marketing service fee of the actual sales. In addition, under the circumstance Jincheng Haoda did not complete the 30% of the annual target sales, Jincheng Haoda will indemnify the Company 20% of marketing service fee of unachieved sales amount from the 30% of the annual target sales. On September 18, 2023, Tianjin Information entered an Operation Cooperation Agreement with an unrelated company, Beijing Jiajia Shengshi Trading Co., Ltd (‘Jiajia Shengshi”), for marketing and promoting the sale of acoustic intelligence series products in domestic market. The cooperation term is from September 18, 2023 through September 17, 2026. Jiajia Shengshi is committed to complete RMB 200 million sales performance in the first year, RMB 300 million sales performance in the second year, and RMB 500 million sales performance in the third year. The Company will pay 20% of the sales amount to Jiajia Shengshi as marketing fee upon receipt of the sales amount, on monthly basis. As of September 30, 2023, the Company made a prepayment of RMB 11,998,000 ($1,671,077) to Jiajia Shengshi for facilitating the quick occupying the Company’s products to the market, the prepayment was the 30% of marketing service fee of first year’s target sales to be completed by Jiajia Shengshi. During the service term, the Company will perform the annual assessment, if Jiajia Shengshi was not able to achieve the target annual sales, and did not reach 30% of target annual sales amount, Jiajia Shengshi shall return the Company’s prepayment after deducting the marketing service fee of the actual sales. In addition, under the circumstance Jiajia Shengshi did not complete the 30% of the annual target sales, Jiajia Shengshi will indemnify the Company 20% of marketing service fee of unachieved sales amount from the 30% of the annual target sales. Other receivables – Heqin On February 20, 2020, Guozhong Times entered an Operation Cooperation Agreement with an unrelated company, Heqin (Beijing) Technology Co, Ltd. (“Heqin”), for marketing and promoting the sale of Face Recognition Payment Processing equipment and related technical support, and other products of the Company including Epidemic Prevention and Control Systems. Heqin has a sales team which used to work with Fortune 500 companies and specializes in business marketing and sales channel establishment and expansion, especially in education industry and public area. The cooperation term is from February 20, 2020 through March 1, 2023; however, Heqin is the exclusive distributor of the Company’s face Recognition Payment Processing products for the period to July 30, 2020. During March and April 2020, Guozhong Times provided operating funds to Heqin, together with a credit line provided by Guozhong Times to Heqin from May 2020 through August 2020, for a total borrowing of RMB 10 million ($1.41 million) for Heqin’s operating needs. As of March 31, 2023, Guozhong Times had an outstanding receivable of RMB 3.53 million ($513,701) from Heqin and was recorded as other receivables. The Company would not charge Heqin any interest, except for two loans with RMB 200,000 ($28,250) each, due on June 30, 2020 and August 15, 2020, respectively, for which the Company charges 15% interest if Heqin did not repay by the due date. No profits will be allocated and distributed before full repayment of the borrowing. After Heqin pays in full the borrowing, Guozhong Times and Heqin will distribute profits of sale of Face Recognition Payment Processing equipment and related technical support at 30% and 70% of the net income, respectively. The profit allocation for the sale of other products of the Company are to be negotiated. Heqin will receive certain stock reward when it reaches the preset sales target under the performance compensation mechanism. In November 2022, Hangzhou Yuetianyun Data Technology Company Ltd (“Yuetianyun”) agreed and acknowledged a Debt Transfer Agreement, wherein Heqin transferred its debt from Yuetianyun to Guozhong Times in the amount of RMB 1,543,400 ($213,596). As of September 30, 2023 and June 30, 2023, Heqin made $48,438 (through Yuetianyun) and $48,438 repayment to the Company, and the Company made a bad debt allowance of $463,801 and $460,850 as of September 30, 2023 and June 30, 2023, respectively. |
Long Term Investment
Long Term Investment | 3 Months Ended |
Sep. 30, 2023 | |
Long Term Investment [Abstract] | |
LONG TERM INVESTMENT | NOTE 6 – LONG TERM INVESTMENT In November 2021, Shuhai Nanjing invested RMB 200,000 ($29,800) for 6.21% stock ownership of a high-tech company Nanjing Dutao Intelligence Technology Co., Ltd in Nanjing City specializing on internet security equipment. In August 2022, Shuhai Nanjing invested RMB 200,000 ($28,717) for 1% stock ownership of a high-tech company Nanjing Jinjizhihui Technology Co. Ltd in Nanjing City specializing on software and system development. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Payables [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 7 – ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consisted of the following: September 30, June 30, Other payables $ 183,910 $ 308,841 Due to third parties 163,796 175,354 Social security payable 216,525 537,964 Salary payable–- employees 78,063 387,780 Total $ 642,294 $ 1,409,939 Due to third parties were the short-term advance from third party individual or companies, bear no interest and payable upon demand. |
Loans Payable
Loans Payable | 3 Months Ended |
Sep. 30, 2023 | |
Loans Payable [Abstract] | |
LOANS PAYABLE | NOTE 8 – LOANS PAYABLE Loan from banks On December 12, 2022, Beijing Shuhai entered a loan agreement with Shenzhen Qianhai WeBank Co., Ltd for the amount of RMB 900,000 ($129,225) with a term of 24 months, the interest rate was 10.728% to be paid every 20 th On January 13, 2023, Shenzhen Jingwei entered a loan agreement with Shenzhen Qianhai WeBank Co., Ltd for the amount of RMB 100,000 ($14,552) with a term of 24 months, the interest rate was 8.6832%. For the three months ended September 30, 2023, the Company made a repayment of $1,992 to this loan. For the three months ended September 30, 2023, the Company recorded and paid $265 interest expense for this loan. As of September 30, 2023, $7,959 was recorded as current liabilities and $2,653 was recorded as non-current liabilities. On April 25, 2023, Shuhai information entered a loan agreement with China Bank Co., Ltd for the amount of RMB 2,990,000 ($435,118) with a term of 12 months with a preferential annual interest rate of 2.35% to be paid every 2 1s The following table summarizes the loan balance as of September 30, 2023: Loan Borrowing Loan term Interest Balance due Lender amount date in month rate Current Non-current Shenzhen Qianhai WeBank Co., Ltd 13,928 1/13/2023 24 8.68 % 7,959 2,653 Shenzhen Qianhai WeBank Co., Ltd 125,352 12/20/2022 24 10.73 % 71,630 17,907 China Bank Co., Ltd 416,446 4/25/2023 12 2.35 % 416,446 - Total 555,726 496,035 20,560 Loan from the unrelated parties On April 24, 2022, the Company entered a loan agreement with an unrelated party Mr. Wanli Kuai for $596,001, the loan had no interest, and was required to be repaid any time before December 31, 2022. The Company repaid $447,001 to the unrelated party by June 30, 2022. On July 1, 2022, the Company entered into a new loan agreement with the same unrelated party for RMB 5,603,000 ($789,177), the loan had no interest, and was required to be repaid any time before December 31, 2022, the Company didn’t make any payment as of December 31, 2022 and signed an extension agreement to extend the maturity date to June 30, 2023. On October 1, 2022, the Company entered into a new loan agreement with the same unrelated party for RMB 3,970,000 ($642,779), the loan had no interest, and was required to be repaid any time before June 30, 2023. On May 24, 2023, the Company entered into a loan extension agreement with the lender, wherein both parties agreed to settle the loan in full by December 31, 2024. During the three months ended September 30, 2023, the Company repaid $0.16 million to this unrelated party. As of September 30, 2023 and June 30, 2023, the outstanding loan balance to the unrelated party was $1,879,713 and $1,310,306, respectively as a result of the Company did not repay the loan in full at maturity. On October 9, 2023, the Company entered into a Debt Transfer and Offset Agreement with Mr. Wanli Kuai and Guorui Innovation. This agreement was resulted from the termination of a Marketing and Promotion agreement among the Company and Guorui Innovation, which Guorui Innovation needs to repay the Company in full for RMB 13,000,600 ($1,810,719) due to cancellation of the agreement. Following the negotiations, the Company, Mr. Wanli Kuai and Guorui Innovation agreed and entered a Debt Transfer and Offset Agreement, wherein Guorui Innovation will repay the prepayment of RMB 13,000,600 ($1,810,719) to Mr. Wanli Kuai for settling the debt that the Company owed to Mr. Kuai (See Note 5). On September 21, 2023, the Company entered a loan agreement with another unrelated party for $153,208, the loan had no interest, and was required to be repaid any time before December 31, 2024. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 – RELATED PARTY TRANSACTIONS On October 1, 2020, the Company’s CEO (also the president) entered into an office rental agreement with Xunrui. Pursuant to the agreement, the Company rents an office in Harbin city with a total payment of RMB 163,800 ($24,050) from October 1, 2020 through September 30, 2021. On October 1, 2021, Xunrui entered a new seven-month lease for this location with the Company’s CEO for total rent of RMB 94,500 ($14,690). The lease was expired on April 30, 2022. On May 1, 2022, Xunrui entered a new one-year lease agreement for this office with the Company’s CEO for an annual rent of RMB 235,710 ($35,120), the Company was required to pay the rent before April 30, 2023 but the Company did not pay it yet as of this report date. On May 1, 2023, Xunrui entered a new one-year lease agreement for this office location with the Company’s CEO for an annual rent of RMB 282,852 ($39,144), the Company is required to pay the rent before April 30, 2024. The rental expense for this office location was $9,963 and $8,629, respectively, for the three months ended September 30, 2023 and 2022. On July 1, 2021, the Company’s CEO entered into a car rental agreement with the Company for one year. Pursuant to the agreement, the Company rents a car from the Company’s CEO for a monthly rent of RMB 18,000 ($2,800), or total payment of $33,400, was paid in full at once. On July 1, 2022, the Company entered a new one-year lease for two cars with the Company’s CEO for each car’s monthly rent of RMB 18,000 ($2,636) and RMB 20,000 ($2,876), respectively. On July 1, 2023, the Company entered a new one-year lease for two cars with the Company’s CEO for each car’s monthly rent of RMB 18,000 ($2,491) and RMB 20,000 ($2,768), respectively. The rental expense for those agreements was $15,893 and $30,752, respectively, for the three months ended September 30, 2023 and 2022. On September 1, 2021, the Company renewed a one-year lease for senior officers’ dormitory in Beijing, the monthly rent is RMB 15,200 ($2,439), payable every six months in advance. On September 1, 2022, the Company entered a new six-month lease for a total rent of RMB 91,200 ($13,355), payable every three months in advance. On March 1, 2023, the Company entered a new six-month lease for a total rent of RMB 91,200 ($12,621), payable every three months in advance. On September 1, 2023, the Company entered a new one-year lease for a monthly rent of RMB 12,500 ($1,743), payable every three months in advance. The rental expense for this lease was $5,981 and $6,678 for the years ended September 30, 2023 and 2022, respectively. Due to related parties As of September 30, 2023 and June 30, 2023, the Company had due to related parties of $494,927 and $1,162,856, respectively, mainly was for the payable of an office lease from the Company’s CEO, accrued salary payable and certain expenses of the Company that were paid by the CEO and her father (one of the Company’s directors), due to related parties bore no interest and payable upon demand. |
Common Stock and Warrants
Common Stock and Warrants | 3 Months Ended |
Sep. 30, 2023 | |
Common Stock and Warrants [Abstract] | |
COMMON STOCK AND WARRANTS | NOTE 10 – COMMON STOCK AND WARRANTS Registered Direct Offering and Concurrent Private Placement in July 2021 On July 20, 2021, the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which the Company agreed to sell to such investors an aggregate of 2,436,904 shares of the common stock of the Company at a purchase price of $3.48 per share. The offering of the common stock is pursuant to a shelf registration statement on Form S-3 (File No. 333-239183), which was declared effective by the SEC on June 25, 2020. Concurrently with the sale of the shares of the common stock, the Company also sold warrants to purchase 1,096,608 shares of common stock to such investors. The Company sold the shares of the common stock and the warrants for aggregate gross proceeds of approximately $8,480,426, before commissions and expenses. Subject to certain beneficial ownership limitations, the warrants were immediately exercisable at an exercise price equal to $4.48 per share, and will terminate on the two- and one-half-year anniversary following the initial exercise date of the warrants. The warrants issued in this financing was classified as equity instruments. The Company accounted for the warrants issued in this financing based on the FV method under FASB ASC Topic 505, and the FV of the warrants was calculated using the Black-Scholes model under the following assumptions: life of 2.5 years, volatility of 150%, risk-free interest rate of 0.37% and dividend yield of 0%. The FV of the warrants issued at grant date was $1,986,880. In addition, the Company has also agreed to issue to its placement agent for offering above warrants to purchase a number of shares of the common stock equal to 5.0% of the aggregate number of shares of the common stock sold in this offering (121,845 warrants), the warrants have an exercise price of $4.48 per share and will terminate on the two and one-half-year anniversary of the closing of the offering. The Company accounted for the warrants issued based on the FV method under FASB ASC Topic 505, and the FV of the warrants was calculated using the Black-Scholes model under the following assumptions: life of 2.5 years, volatility of 150%, risk-free interest rate of 0.37% and dividend yield of 0%. The FV of the warrants issued at grant date was $225,964. The warrants issued in this financing was classified as equity instruments. The closing of the sales of these securities under the securities purchase agreement took place on July 22, 2021. The net proceeds from the transactions were approximately $7,640,000, after deducting certain fees due to the placement agent and the Company’s estimated transaction expenses, and has been used for working capital and general corporate purposes, and for the repayment of debt. Registered Direct Offering in August and September 2023 On August 1, 2023, the Company entered into two separate subscription agreements with a certain non-U.S. investor, pursuant to which the Company sold aggregate of 4,760,000 shares of common stock at a $1.2 per share purchase price. On September 21, 2023, the Company received full payment of RMB 40,000,000 ($5.71 million) from the investor. On August 15, 2023, the Company entered into a subscription agreement with another non-U.S. investor, pursuant to which the Company agreed to sell and the investor agreed to purchase an aggregate of 2,962,963 shares of common stock at a $1.35 per share purchase price, with a total subscription price of $4,000,000. The investor paid the amount of $714,286 to the Company and the Company issued 529,101 shares as of the date of this report, and promised to pay the remaining balance in full by March 2024. On September 13, 2023, the Company closed an underwritten public offering of 5,000,000 shares of common stock at a public offering price of $0.40 per share. The gross proceeds to the Company from this offering are approximately $2 million, before deducting any fees or expenses. The Company received $1.6 million net proceeds from this offering. Following is a summary of the activities of warrants for the period ended September 30, 2023: Number of Average Weighted Outstanding as of June 30, 2023 1,319,953 $ 4.60 0.63 Exercisable as of June 30, 2023 1,319,953 $ 4.60 0.63 Granted - - - Exercised - - - Forfeited - - - Expired - - - Outstanding as of September 30, 2023 1,319,953 $ 4.60 0.38 Exercisable as of September 30, 2023 1,319,953 $ 4.60 0.38 Shares to Independent Directors as Compensation During the three months ended September 30, 2023 and 2022, the Company recorded $4,500 and $4,500 stock compensation expense to independent directors through the issuance of shares of the Company’s common stock at the market price of the stock issuance date, pursuant to the 2018 Equity Incentive Plan. Shares to Officers as Compensation On September 24, 2021, under the 2018 Equity Inventive plan, the Company’s Board of Directors granted 15,000 shares of the Company’s common stock to its CEO each month and 10,000 shares to one of the board members each month starting from July 1, 2021, payable quarterly with the aggregate number of shares for each quarter being issued on the first day of the next quarter at a per share price of the closing price of the day prior to the issuance. During the three months ended September 30, 2023 and 2022, the Company recorded $15,600 and $111,750 stock compensation expense to the Company’s CEO and one of the board members for the quarter. Shares to Employee and consultants under the 2018 Equity Incentive Plan During the year ended June 30, 2023, the Company issued 3,459,500 shares of the Company’s common stock to the Company’s employees and consultants for the services that were provided, the share issuance was fully vested and approved by Compensation Committee (the “Committee”) of the Board of Directors under the 2018 Equity Incentive Plan. The fair value of 3,459,500 shares at issuance date was $3,976,362 and was recorded as the Company’s stock compensation expense during the year ended June 30, 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 11 – INCOME TAXES The Company is subject to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled. The Company’s PRC subsidiaries file their income tax returns online with PRC tax authorities. The Company conducts all of its businesses through its subsidiaries and affiliated entities, principally in the PRC. The Company’s U.S. parent company is subject to U.S. income tax rate of 21% and files U.S. federal income tax return. As of September 30, 2023 and June 30, 2023, the U.S. entity had net operating loss (“NOL”) carry forwards for income tax purposes of $6.72 million and $6.51 million. The NOL arising in tax years beginning after 2017 may reduce 80% of a taxpayer’s taxable income, and be carried forward indefinitely. However, the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”) passed in March 2020, provides tax relief to both corporate and noncorporate taxpayers by adding a five-year carryback period and temporarily repealing the 80% limitation for NOLs arising in 2018, 2019 and 2020. Management believes the realization of benefits from these losses remains uncertain due to the parent Company’s limited operating history and continuing losses. Accordingly, a 100% deferred tax asset valuation allowance was provided. The Company’s offshore subsidiary, Shuhai Skill (HK), a HK holding company is subject to 16.5% corporate income tax in HK. Shuhai Beijing received a tax holiday with a 15% corporate income tax rate since it qualified as a high-tech company. Tianjin Information, Xunrui, Guozhong Times, Guozhong Haoze, Guohao Century, Jingwei, Shuhai Nanjing, Zhangxun are subject to the regular 25% PRC income tax rate. As of September 30, 2023 and June 30, 2023, the Company has approximately $16.05 million and $17.10 million of NOL from its HK holding company, PRC subsidiaries and VIEs that expire in calendar years 2021 through 2025. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends upon the Company’s future generation of taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance as of September 30, 2023 and June 30, 2023. The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three months ended September 30, 2023 and 2022: 2023 2022 US federal statutory rates (21.0 )% (21.0 )% Tax rate difference – current provision (2.1 )% (3.5 )% Effect of PRC tax holiday 2.7 % 3.2 % Valuation allowance 20.4 % 21.3 % Effective tax rate - % - % The Company’s net deferred tax assets as of September 30, 2023 and June 30, 2023 is as follows: September 30, June 30, Deferred tax asset Net operating loss $ 3,722,696 $ 3,986,827 R&D expense 123,750 123,750 Depreciation and amortization 76,754 180,522 Bad debt expense 116,063 119,932 Social security and insurance accrual 47,472 149,196 Inventory impairment 13,326 13,771 ROU, net of lease liabilities 3,430 20,171 Total 4,103,491 4,594,168 Less: valuation allowance (4,103,491 ) (4,594,168 ) Net deferred tax asset $ - $ - |
Commitments
Commitments | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 12 – COMMITMENTS Leases On July 30, 2019, the Company entered into an operating lease for its office in Beijing. Pursuant to the lease, the delivery date of the property was August 8, 2019 but the lease term started on October 8, 2019 and expires on October 7, 2022, and has a monthly rent of RMB 207,269 without value added tax (“VAT”) (or $29,250). The lease required a security deposit of three months’ rent of RMB 677,769 (or $96,000). The Company received a six-month rent abatement, which was considered in calculating the present value of the lease payments to determine the ROU asset which is being amortized over the term of the lease. On October 8, 2022, the Company renewed this lease for another year but for half space of the previous lease, with a monthly rent of RMB 107,714 ($15,787). The Company received a one-month rent abatement. On July 30, 2019, the Company entered into a property service agreement for its office in Beijing (described above). Pursuant to the property service agreement, the agreement commenced on August 9, 2019 and will expire on October 8, 2022, and has a quarterly fee of RMB 202,352 (or $29,000). The deposit was RMB 202,352 (or $29,000). On October 8, 2022, the Company renewed this service agreement for its office in Beijing for another year, with a quarterly fee of RMB 96,476 ($14,128). The new deposit was RMB 96,476 (or $14,128). On August 28, 2019, the Company entered an operating lease for senior officers’ dormitory in Beijing. The lease has a term of two years with expiration on August 31, 2021, the monthly rent was RMB 14,500 ($2,045), payable every six months in advance. The lease was renewed for another year from September 1, 2021 to August 31, 2022 at a monthly rent of RMB 15,200 ($2,350), payable every six months in advance. On September 1, 2022, the Company entered a new six-month lease for a total rent of RMB 91,200 ($13,355), payable every three months in advance. On March 1, 2023, the Company renewed this lease for six-month for a total rent of RMB 91,200 ($13,272), payable every three months in advance. In August 2020, the Company entered into a lease for an office in Shenzhen City, China for three years from August 8, 2020 through August 7, 2023, with a monthly rent of RMB 209,911 ($29,651) for the first year. The rent will increase by 3% each year starting from the second year. On August 26, 2020, Tianjin Information entered into a lease for the office in Hangzhou City, China from September 11, 2020 to October 5, 2022. The first year rent is RMB 1,383,970 ($207,000). The second-year rent is RMB 1,425,909 ($202,800). The security deposit is RMB 115,311 ($16,400). The total rent for the lease period is to be paid in four installments. On October 6, 2022, Hangzhou took over and renewed this lease for one year, the total rent is RMB 1,178,463 ($172,575), payable every six months in advance. In May 2023, the lease was terminated. The total rent expense was RMB 848,620 ($122,253) for the year ended June 30, 2023. On May 10, 2023, Guo Hao Century entered into a lease for the office in Hangzhou City, China from May 10, 2023 to May 9, 2025. The security deposit is RMB 115,311 ($7,670). The quarterly rent is as follows: Start Date End Date Rent expense RMB USD 5/10/2023 8/9/2023 43,786 $ 6,060 8/10/2023 11/9/2023 66,038 9,139 11/10/2023 2/9/2024 66,038 9,139 2/10/2024 5/9/2024 64,602 8,940 5/10/2024 8/9/2024 66,038 9,139 8/10/2024 11/9/2024 66,038 9,139 11/10/2024 2/9/2025 66,038 9,139 2/10/2025 5/9/2025 63,884 $ 8,841 The Company adopted FASB ASC Topic 842 on July 1, 2019. The components of lease costs, lease term and discount rate with respect of the Company’s office lease and the senior officers’ dormitory lease with an initial term of more than 12 months are as follows: Three Months Three Months Operating lease expense $ 74,181 $ 203,111 September 30, June 30, Right-of-use assets $ 65,854 $ 137,856 Lease liabilities - current 34,367 126,640 Lease liabilities - noncurrent 17,781 26,449 Weighted average remaining lease term 0.36 years 0.67 years Weighted average discount rate 6.25 % 6.25 % The following is a schedule, by years, of maturities of the operating lease liabilities as of September 30, 2023: 12 Months Ending September 30, Minimum 2023 $ 36,591 2024 18,096 Total undiscounted cash flows 54,687 Less: imputed interest (2,539 ) Present value of lease liabilities $ 52,148 |
Disposal of Subsidiary
Disposal of Subsidiary | 3 Months Ended |
Sep. 30, 2023 | |
Disposal of Subsidiary [Abstract] | |
DISPOSAL OF SUBSIDIARY | NOTE 13 – On July 20, 2023, the Company’s shareholders decided to sell Zhangxun to a third party at a price of RMB 2 (US $0.28). There was no material transactions for Zhangxun for the period from July 1, 2023 through July 20, 2023, and for the purpose of complying with the Company’s monthly accounting cut-off date, the Company used Zhangxun’s financial statements as of June 30, 2023 as the date of disposal. The Company recorded $0.83 million gain on disposal of the subsidiary, which was the difference between the selling price of US$0.28 and the carrying value of the negative net assets of $2.35 million of the disposal entity, which includes $1.52 million of inter-company payables. The gain is calculated after netting off these inter-company receivables from Zhangxun of $1.52 million, due to uncertainty of the repayment from Zhangxun. The following table summarizes the carrying value of the assets and liabilities of Zhangxun at June 30, 2023. Cash $ 34 Accounts receivable 254,988 Other current assets 50,406 Fixed assets, net 10,012 Intangible assets, net 344,629 Total assets 660,069 Accounts payable 530,260 Advance from customers 94,126 Accrued liability and other payables 749,156 Loan payables 153,045 Total liabilities 1,526,587 The following tables shows the results of operations relating to discontinued operations Zhangxun for the three months ended September 30, 2023 and 2022, respectively. THREE MONTHS ENDED 2023 2022 Revenues $ - $ 1,164,305 Cost of goods sold - 1,014,108 Gross profit - 150,197 Operating expenses Selling - 188,950 General and administrative - 165,485 Research and development - 156,704 Total operating expenses - 511,139 Loss from operations - (360,942 ) Gain on disposal 833,546 0 Other income, net - 23,880 Gain (loss) before income tax 833,546 (337,062 ) Income tax - - Gain (loss) before noncontrolling interest 833,546 (337,062 ) Less: loss attributable to noncontrolling interest - (101,759 ) Net gain (loss) to the Company $ 833,546 $ (235,303 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company had no material subsequent events to be disclosed. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
GOING CONCERN | GOING CONCERN The accompanying consolidated financial statements (“CFS”) were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the three months ended September 30, 2023 and 2022, the Company had a net loss of approximately $22,056 and $1.34 million, respectively. The Company had an accumulated deficit of approximately $28.09 million as of September 30, 2023, and negative cash flow from operating activities of approximately $6.74 million and $0.75 million for the three months ended September 30, 2023 and 2022, respectively. The historical operating results including recurring losses from operations raise doubt about the Company’s ability to continue as a going concern. On August 1, 2023, the Company entered into two separate subscription agreements with a certain non-U.S. investor, pursuant to which the Company sold an aggregate of 4,760,000 shares of common stock at a $1.2 per share purchase price to the investor. On September 21, 2023, the Company received full payment of RMB 40,000,000 ($5.71 million) from the investor. On August 15, 2023, the Company entered into a subscription agreement with another non-U.S. investor, pursuant to which the Company agreed to sell and the investor agreed to purchase an aggregate of 2,962,963 shares of common stock at a $1.35 per share purchase price, with a total subscription price of $4,000,000. The investor paid the amount of $714,286 to the Company and the Company issued 529,101 shares as of the date of this report, and has promised to pay the remaining balance in full by March 2024. On September 13, 2023, the Company closed an underwritten public offering of 5,000,000 shares of common stock at a public offering price of $0.40 per share. The gross proceeds to the Company from this offering are approximately $2 million, before deducting any fees or expenses. In September 2023, the Company received $1.6 million net proceeds from this offering. If deemed necessary, management could seek to raise additional funds by way of admitting strategic investors or. Private or public offerings, or by seeking to obtain loans from banks or others, to support the Company’s research and development (“R&D”), procurement, marketing and daily operation. While management of the Company believes in the viability of its strategy to generate sufficient revenues and its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern depends upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. There is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its initiatives or attain profitable operations. If the Company is unable to raise additional funding to meet its working capital needs in the future, it may be forced to delay, reduce or cease its operations. |
BASIS OF PRESENTATION AND CONSOLIDATION | BASIS OF PRESENTATION AND CONSOLIDATION The CFS were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding CFS. In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments, unless otherwise indicated) considered necessary for a fair presentation of our financial position at such date and the operating results and cash flows for such periods. Operating results for the three months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023, previously filed with the Securities Exchange Commission (“SEC”) on September 27, 2023. The accompanying CFS include the financial statements of the Company and its 100% owned subsidiaries Shuhai Information Skill (HK) Limited (“Shuhai Skill (HK)”), and Shuhai Information Technology Co., Ltd. (“Tianjin Information”), and its VIE, Shuhai Beijing, and Shuhai Beijing’s 100% owned subsidiaries – Heilongjiang Xunrui Technology Co. Ltd. (“Xunrui”), Guozhong Times (Beijing) Technology Ltd. (“Guozhong Times”), Guohao Century (Beijing) Technology Ltd. (“Guohao Century”), Guozhong Haoze, and Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. (“Jingwei”), and Guohao Century’s 99% owned subsidiary – Hangzhou Zhangqi Business Management Partnership (“Zhangqi”, a limited partnership) and 99.81% owned subsidiary – Hangzhou Shuhai Zhangxun Information Technology Co., Ltd. (“Zhangxun”) which consisted of 90% ownership from Guohao Century and 10% ownership from Zhangqi, and Shuhai Beijing’s 99% owned subsidiary–- Nanjing Shuhai Equity Investment Fund Management Co. Ltd. (“Shuhai Nanjing”). During the year ended June 30, 2022, the Company incorporated two new subsidiaries Shuhai (Shenzhen) Acoustic Effect Technology Co., Ltd (“Shuhai Acoustic”) and Shenzhen Acoustic Effect Management Partnership (“Shenzhen Acoustic MP”). All significant inter-company transactions and balances were eliminated in consolidation. The chart below depicts the corporate structure of the Company as of September 30, 2023. |
VIE Agreements | VARIABLE INTEREST ENTITY Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its CFS, the financial statements of Shuhai Beijing, its VIE. ASC 810 requires a VIE to be consolidated if the Company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. A VIE is an entity in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards of such entity, and therefore the Company is the primary beneficiary of such entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. Shuhai Beijing’s actual stockholders do not hold any kick-out rights that affect the consolidation determination. Through the VIE agreements, Tianjin Information, an indirect subsidiary of Datasea is deemed the primary beneficiary of Shuhai Beijing and its subsidiaries. Accordingly, the results of Shuhai Beijing and its subsidiaries were included in the accompanying CFS. Shuhai Beijing has no assets that are collateral for or restricted solely to settle their obligations. The creditors of Shuhai Beijing do not have recourse to the Company’s general credit. VIE Agreements Operation and Intellectual Property Service Agreement Under the terms of the Operation and Intellectual Property Service Agreement, Shuhai Beijing entrusts Tianjin Information to manage its operations, manage and control its assets and financial matters, and provide intellectual property services, purchasing management services, marketing management services and inventory management services to Shuhai Beijing. Shuhai Beijing and its stockholders shall not make any decisions nor direct the activities of Shuhai Beijing without Tianjin Information’s consent. Stockholders’ Voting Rights Entrustment Agreement Equity Option Agreement Equity Pledge Agreement As of this report date, there were no dividends paid from the VIE to the U.S. parent company or the shareholders of the Company. There has been no change in facts and circumstances to consolidate the VIE. The following financial statement amounts and balances of the VIE were included in the accompanying CFS as of September 30, 2023 and June 30, 2023, and for the three months ended September 30, 2023 and 2022, respectively. September 30, June 30, Cash $ 198,224 $ 13,717 Accounts receivable 388,101 255,725 Inventory 250,711 241,380 Other current assets 590,607 649,433 Total current assets 1,427,643 1,160,255 Property and equipment, net 32,620 42,886 Intangible asset, net 379,793 757,700 Right-of-use asset, net 52,864 60,348 Other non-current assets 55,712 55,358 Total non-current assets 520,989 916,292 Total assets $ 1,948,632 $ 2,076,547 Accounts payable $ 512,451 $ 650,406 Accrued liabilities and other payables 650,978 1,480,947 Lease liability 30,798 39,223 Loans payable 2,375,747 594,906 Other current liabilities 830,579 1,639,410 Total current liabilities 4,400,553 4,404,892 Lease liability - noncurrent 15,557 26,449 Long term long payable 20,560 1,401,521 Total non-current liabilities 36,117 1,427,970 Total liabilities $ 4,436,670 $ 5,832,862 For the For the Revenues $ 6,880,743 $ 1,164,305 Gross profit $ 74,735 $ 150,198 Net loss $ (419,473 )* $ (757,146 )** * exclude the gain from disposal of Zhangxun of $0.83 million. ** include the operation of Zhangxun |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of CFS in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The significant areas requiring the use of management estimates include, but are not limited to, the estimated useful life and residual value of property, plant and equipment, provision for staff benefits, recognition and measurement of deferred income taxes and the valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to the CFS. |
CONTINGENCIES | CONTINGENCIES Certain conditions may exist as of the date the CFS are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s CFS. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. As of September 30, 2023 and June 30, 2023, the Company has no such contingencies. |
CASH | CASH Cash includes cash on hand and demand deposits that are highly liquid in nature and have original maturities when purchased of three months or less. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. The Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit losses on financial instruments later codified as Accounting Standard codification (“ASC”) 326 (“ASC 326”), on July 1, 2023. The guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. There was no significant impact on the date of adoption of ASC 326. Under ASC 326, Accounts receivable are recorded at the invoiced amount, net of allowance for expected credit losses. The Company’s primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the Accounts receivable balance to the estimated net realizable value. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company’s customers’ financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates. All provisions for the allowance for doubtful accounts are included as a component of general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered. As of September 30, 2023 and June 30, 2023, the Company had a $0 bad debt allowance for accounts receivable. |
INVENTORY | INVENTORY Inventory is comprised principally of intelligent temperature measurement face recognition terminal and identity information recognition products, and is valued at the lower of cost or net realizable value. The value of inventory is determined using the first-in, first-out method. The Company periodically estimates an inventory allowance for estimated unmarketable inventories when necessary. Inventory amounts are reported net of such allowances. There were $53,254 and $52,915 allowances for slow-moving and obsolete inventory (mainly for Smart-Student Identification cards) as of September 30, 2023 and June 30, 2023, respectively. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at cost, less accumulated depreciation. Major repairs and improvements that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method over estimated useful lives as follows: Furniture and fixtures 3-5 years Office equipment 3-5 years Vehicles 5 years Leasehold improvement 3 years Leasehold improvements are depreciated utilizing the straight-line method over the shorter of their estimated useful lives or remaining lease term. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets with finite lives are amortized using the straight-line method over their estimated period of benefit. Evaluation of the recoverability of intangible assets is made to take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of the Company’s intangible assets are subject to amortization. No impairment of intangible assets has been identified as of the balance sheet date. Intangible assets include licenses, certificates, patents and other technology and are amortized over their useful life of three years. |
FAIR VALUE (“FV”) OF FINANCIAL INSTRUMENTS | FAIR VALUE (“FV”) OF FINANCIAL INSTRUMENTS The carrying value of the Company’s short-term financial instruments, such as cash, accounts receivable, prepaid expenses, accounts payable, unearned revenue, accrued expenses and other payables approximates their FV due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. |
FAIR VALUE MEASUREMENTS AND DISCLOSURES | FAIR VALUE MEASUREMENTS AND DISCLOSURES FASB ASC Topic 820, “Fair Value Measurements,” defines FV, and establishes a three-level valuation hierarchy for disclosures that enhances disclosure requirements for FV measures. The three levels are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include other than those in level 1 quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement. As of September 30, 2023 and June 30, 2023, the Company did not identify any assets or liabilities required to be presented on the balance sheet at FV on a recurring basis. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS In accordance with FASB ASC 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets”, long-lived assets such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its FV. FV generally is determined using the asset’s expected future undiscounted cash flows or market value, if readily determinable. Assets to be disposed of are reported at the lower of the carrying amount or FV less cost to sell. For the three months ended September 30, 2023 and 2022, there was no impairment loss recognized on long-lived assets. |
UNEARNED REVENUE | UNEARNED REVENUE The Company records payments received in advance from its customers or sales agents for the Company’s products as unearned revenue, mainly consisting of deposits or prepayment for 5G products from the Company’s sales agencies. These orders normally are delivered based upon contract terms and customer demand, and the Company will recognize it as revenue when the products are delivered to the end customers. |
LEASES | LEASES The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842. Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2023 and June 30, 2023. |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company follows Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606). The core principle underlying FASB ASC 606 is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are identified when possession of goods and services is transferred to a customer. FASB ASC Topic 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies each performance obligation. The Company derives its revenues from product sales and 5G messaging service contracts with its customers, with revenues recognized upon delivery of services and products. Persuasive evidence of an arrangement is demonstrated via product sale contracts and professional service contracts, with performance obligations identified. The transaction price, such as product selling price, and the service price to the customer with corresponding performance obligations are fixed upon acceptance of the agreement. The Company recognizes revenue when it satisfies each performance obligation, the customer receives the products and passes the inspection and when professional service is rendered to the customer, collectability of payment is probable. These revenues are recognized at a point in time after each performance obligations is satisfied. Revenue is recognized net of returns and value-added tax charged to customers. The following table shows the Company’s revenue by revenue sources: For the For the 5G Messaging $ 6,880,463 $ - 5G messaging 6,880,463 - Cloud platform construction cooperation project - - Acoustic Intelligence Business 280 - Ultrasonic Sound Air Disinfection Equipment 280 - Smart City business - - Smart community - - Total revenue $ 6,880,743 $ - |
SEGMENT INFORMATION | SEGMENT INFORMATION FASB ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the method a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined the Company’s current operations constitutes a single reportable segment in accordance with ASC 280. The Company’s only business and industry segment is high technology and advanced information systems (“TAIS”). TAIS include smart city solutions that meet the security needs of residential communities, schools and commercial enterprises, and 5G messaging services including 5G SMS, 5G MMCP and 5G multi-media video messaging. All of the Company’s customers are in the PRC and all revenues for the three months ended September 30, 2023 and 2022 were generated from the PRC. All identifiable assets of the Company are located in the PRC. Accordingly, no geographical segments are presented. |
INCOME TAXES | INCOME TAXES The Company uses the asset and liability method of accounting for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. The Company follows FASB ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of FASB ASC Topic 740, when tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. As of September 30, 2023, the Company had no unrecognized tax positions and no charges during the three months ended September 30, 2023, and accordingly, the Company did not recognize any interest or penalties related to unrecognized tax benefits. The Company files a U.S. and PRC income tax return. With few exceptions, the Company’s U.S. income tax returns filed for the years ending on June 30, 2018 and thereafter are subject to examination by the relevant taxing authorities; the Company uses calendar year-end for its PRC income tax return filing, PRC income tax returns filed for the years ending on December 31, 2017 and thereafter are subject to examination by the relevant taxing authorities. |
RESEARCH AND DEVELOPMENT EXPENSES | RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed in the period when incurred. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department, and fees paid to third parties. |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS The Company follows FASB ASC Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI (previously referred to as minority interests) be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to non-controlling interests even when such allocation might result in a deficit balance. The net income (loss) attributed to NCI was separately designated in the accompanying statements of operations and comprehensive income (loss). Losses attributable to NCI in a subsidiary may exceed a non-controlling interest’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. On December 20, 2022, Guohao Century acquired a 30% ownership noncontrolling interests of Zhangxun from Zhengmao Zhang at the price of $0.15 (RMB 1.00). The Company recognized a paid in capital deficit of $982,014 from this purchase due to continued loss of Zhangxun. Subsequent to this purchase, the Company ultimately holds a 99.9% ownership of Zhangxun. On July 20, 2023, the Company sold Zhangxun to a third party for RMB 2 ($0.28). As of September 30, 2023, Zhangqi was 1% owned by noncontrolling interest, Shuhai Nanjing was 1% owned by noncontrolling interest, Shenzhen Acoustic MP was 1% owned by noncontrolling interest, Shuhai Shenzhen Acoustic was 0.1% owned by noncontrolling interest, Guozhong Times was 0.091% owned by noncontrolling interest, and Guozhong Haoze was 0.091% owned by noncontrolling interest. During the three months ended September 30, 2023 and 2022, the Company had loss of $9,932 and $96,624 attributable to the noncontrolling interest, respectively. |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK The Company maintains cash in accounts with state-owned banks within the PRC. Cash in state-owned banks less than RMB500,000 ($76,000) is covered by insurance. Should any institution holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in these bank accounts. Cash denominated in RMB with a U.S. dollar equivalent of $1,161,277 and $17,432 as of September 30, 2023 and June 30, 2023, respectively, was held in accounts at financial institutions located in the PRC‚ which is not freely convertible into foreign currencies. Cash held in accounts at U.S. financial institutions is insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations up to $250,000 per depositor. As of September 30, 2023 and June 30, 2023, cash of $56,227 and $1,487 was maintained at U.S. financial institutions. Cash was maintained at financial institutions in Hong Kong, and was insured by the Hong Kong Deposit Protection Board up to a limit of HK $500,000 ($64,000). As of September 30, 2023 and June 30, 2023, the cash balance of $1,245 and $809 was maintained at financial institutions in Hong Kong. The Company, its subsidiaries and VIE have not experienced any losses in such accounts and do not believe the cash is exposed to any significant risk. |
FOREIGN CURRENCY TRANSLATION AND COMPREHENSIVE INCOME (LOSS) | FOREIGN CURRENCY TRANSLATION AND COMPREHENSIVE INCOME (LOSS) The accounts of the Company’s Chinese entities are maintained in RMB and the accounts of the U.S. parent company are maintained in United States dollar (“USD”). The financial statements of the Chinese entities were translated into USD in accordance with FASB ASC Topic 830 “Foreign Currency Matters.” All assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and the statements of operations and cash flows are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income (loss) in accordance with FASB ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from foreign currency transactions are reflected in the statements of operations. The Company follows FASB ASC Topic”220-10, “Comprehensive Income (loss).” Comprehensive income (loss) comprises net income (loss) and all changes to the statements of changes in stockholders’ equity, except those due to investments by stockholders, changes in additional paid-in capital and distributions to stockholders. The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the CFS were as follows: September 30, September 30, June 30, 2023 2022 2023 Period-end date USD: RMB exchange rate 7.1798 7.0998 7.2258 Average USD for the reporting period: RMB exchange rate 7.1729 6.8287 6.9415 |
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (EPS) | BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (EPS) Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. For the three months ended September 30, 2023 and 2022, the Company’s basic and diluted loss per share are the same as a result of the Company’s net loss. 1,319,953 warrants were anti-dilutive and was therefore excluded from EPS for the three months ended September 30, 2023 and 2022, respectively. |
STATEMENT OF CASH FLOWS | STATEMENT OF CASH FLOWS In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts shown on the statement of cash flows may not necessarily agree with changes in the corresponding asset and liability on the balance sheet. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this guidance on July 1, 2023, there was no significant impact on the date of adoption of ASC 326. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets Information | The following financial statement amounts and balances of the VIE were included in the accompanying CFS as of September 30, 2023 and June 30, 2023, and for the three months ended September 30, 2023 and 2022, respectively. September 30, June 30, Cash $ 198,224 $ 13,717 Accounts receivable 388,101 255,725 Inventory 250,711 241,380 Other current assets 590,607 649,433 Total current assets 1,427,643 1,160,255 Property and equipment, net 32,620 42,886 Intangible asset, net 379,793 757,700 Right-of-use asset, net 52,864 60,348 Other non-current assets 55,712 55,358 Total non-current assets 520,989 916,292 Total assets $ 1,948,632 $ 2,076,547 Accounts payable $ 512,451 $ 650,406 Accrued liabilities and other payables 650,978 1,480,947 Lease liability 30,798 39,223 Loans payable 2,375,747 594,906 Other current liabilities 830,579 1,639,410 Total current liabilities 4,400,553 4,404,892 Lease liability - noncurrent 15,557 26,449 Long term long payable 20,560 1,401,521 Total non-current liabilities 36,117 1,427,970 Total liabilities $ 4,436,670 $ 5,832,862 |
Schedule of Condensed Consolidating Statements of Income Information | For the For the Revenues $ 6,880,743 $ 1,164,305 Gross profit $ 74,735 $ 150,198 Net loss $ (419,473 )* $ (757,146 )** * exclude the gain from disposal of Zhangxun of $0.83 million. ** include the operation of Zhangxun |
Schedule of Straight-Line Method Over Estimated Useful Lives | Depreciation of property and equipment is provided using the straight-line method over estimated useful lives as follows: Furniture and fixtures 3-5 years Office equipment 3-5 years Vehicles 5 years Leasehold improvement 3 years |
Schedule of Revenue Sources | The following table shows the Company’s revenue by revenue sources: For the For the 5G Messaging $ 6,880,463 $ - 5G messaging 6,880,463 - Cloud platform construction cooperation project - - Acoustic Intelligence Business 280 - Ultrasonic Sound Air Disinfection Equipment 280 - Smart City business - - Smart community - - Total revenue $ 6,880,743 $ - |
Schedule of Exchange Rates used to Translate Amounts | The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the CFS were as follows: September 30, September 30, June 30, 2023 2022 2023 Period-end date USD: RMB exchange rate 7.1798 7.0998 7.2258 Average USD for the reporting period: RMB exchange rate 7.1729 6.8287 6.9415 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are summarized as follows: September 30, June 30, Furniture and fixtures $ 85,267 $ 84,014 Vehicle 487 484 Leasehold improvement 218,322 216,932 Office equipment 235,232 261,658 Subtotal 539,308 563,088 Less: accumulated depreciation 471,608 477,158 Total $ 67,700 $ 85,930 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets are summarized as follows: September 30, June 30, Software registration or using right $ 1,636,801 $ 1,635,307 Patent 14,620 14,527 Software and technology development costs 11,684 631,250 Value-added telecommunications business license 15,472 15,374 Subtotal 1,678,577 2,299,458 Less: Accumulated amortization 963,498 1,110,671 Total $ 715,079 $ 1,185,787 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Current Asset [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: September 30, June 30, Security deposit $ 46,217 $ 15,615 Prepaid expenses 6,064,208 563,203 Other receivables – Heqin 463,801 460,850 Advance to third party individuals, no interest, payable upon demand 4,527 11,764 Others 243,091 110,841 Total 6,821,844 1,162,273 Less: allowance for other receivables – Heqin 463,801 460,850 Total $ 6,358,043 $ 701,423 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Payables [Abstract] | |
Schedule of Accrued Expenses and Other Payables | Accrued expenses and other payables consisted of the following: September 30, June 30, Other payables $ 183,910 $ 308,841 Due to third parties 163,796 175,354 Social security payable 216,525 537,964 Salary payable–- employees 78,063 387,780 Total $ 642,294 $ 1,409,939 |
Loans Payable (Tables)
Loans Payable (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Loans Payable [Abstract] | |
Schedule of Summarizes the Loan Balance | The following table summarizes the loan balance as of September 30, 2023: Loan Borrowing Loan term Interest Balance due Lender amount date in month rate Current Non-current Shenzhen Qianhai WeBank Co., Ltd 13,928 1/13/2023 24 8.68 % 7,959 2,653 Shenzhen Qianhai WeBank Co., Ltd 125,352 12/20/2022 24 10.73 % 71,630 17,907 China Bank Co., Ltd 416,446 4/25/2023 12 2.35 % 416,446 - Total 555,726 496,035 20,560 |
Common Stock and Warrants (Tabl
Common Stock and Warrants (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Common Stock and Warrants [Abstract] | |
Schedule of Activities of Warrants | Following is a summary of the activities of warrants for the period ended September 30, 2023: Number of Average Weighted Outstanding as of June 30, 2023 1,319,953 $ 4.60 0.63 Exercisable as of June 30, 2023 1,319,953 $ 4.60 0.63 Granted - - - Exercised - - - Forfeited - - - Expired - - - Outstanding as of September 30, 2023 1,319,953 $ 4.60 0.38 Exercisable as of September 30, 2023 1,319,953 $ 4.60 0.38 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Income Tax [Abstract] | |
Schedule of Reconciles the U.S. Statutory Rates to the Company’s Effective Tax Rate | The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three months ended September 30, 2023 and 2022: 2023 2022 US federal statutory rates (21.0 )% (21.0 )% Tax rate difference – current provision (2.1 )% (3.5 )% Effect of PRC tax holiday 2.7 % 3.2 % Valuation allowance 20.4 % 21.3 % Effective tax rate - % - % |
Schedule of Net Deferred Tax Assets | The Company’s net deferred tax assets as of September 30, 2023 and June 30, 2023 is as follows: September 30, June 30, Deferred tax asset Net operating loss $ 3,722,696 $ 3,986,827 R&D expense 123,750 123,750 Depreciation and amortization 76,754 180,522 Bad debt expense 116,063 119,932 Social security and insurance accrual 47,472 149,196 Inventory impairment 13,326 13,771 ROU, net of lease liabilities 3,430 20,171 Total 4,103,491 4,594,168 Less: valuation allowance (4,103,491 ) (4,594,168 ) Net deferred tax asset $ - $ - |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City | On May 10, 2023, Guo Hao Century entered into a lease for the office in Hangzhou City, China from May 10, 2023 to May 9, 2025. The security deposit is RMB 115,311 ($7,670). The quarterly rent is as follows: Start Date End Date Rent expense RMB USD 5/10/2023 8/9/2023 43,786 $ 6,060 8/10/2023 11/9/2023 66,038 9,139 11/10/2023 2/9/2024 66,038 9,139 2/10/2024 5/9/2024 64,602 8,940 5/10/2024 8/9/2024 66,038 9,139 8/10/2024 11/9/2024 66,038 9,139 11/10/2024 2/9/2025 66,038 9,139 2/10/2025 5/9/2025 63,884 $ 8,841 |
Schedule of Components of Lease Costs | The components of lease costs, lease term and discount rate with respect of the Company’s office lease and the senior officers’ dormitory lease with an initial term of more than 12 months are as follows: Three Months Three Months Operating lease expense $ 74,181 $ 203,111 September 30, June 30, Right-of-use assets $ 65,854 $ 137,856 Lease liabilities - current 34,367 126,640 Lease liabilities - noncurrent 17,781 26,449 Weighted average remaining lease term 0.36 years 0.67 years Weighted average discount rate 6.25 % 6.25 % |
Schedule of Maturities of the Operating Lease Liabilities | The following is a schedule, by years, of maturities of the operating lease liabilities as of September 30, 2023: 12 Months Ending September 30, Minimum 2023 $ 36,591 2024 18,096 Total undiscounted cash flows 54,687 Less: imputed interest (2,539 ) Present value of lease liabilities $ 52,148 |
Disposal of Subsidiary (Tables)
Disposal of Subsidiary (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Disposal of Subsidiary [Abstract] | |
Scheule of Write-off of the Company and Existing Subsidiaries | The following table summarizes the carrying value of the assets and liabilities of Zhangxun at June 30, 2023 Cash $ 34 Accounts receivable 254,988 Other current assets 50,406 Fixed assets, net 10,012 Intangible assets, net 344,629 Total assets 660,069 Accounts payable 530,260 Advance from customers 94,126 Accrued liability and other payables 749,156 Loan payables 153,045 Total liabilities 1,526,587 |
Schedule of Results Operations Relating to Discontinued Operations Zhangxun | The following tables shows the results of operations relating to discontinued operations Zhangxun for the three months ended September 30, 2023 and 2022, respectively. THREE MONTHS ENDED 2023 2022 Revenues $ - $ 1,164,305 Cost of goods sold - 1,014,108 Gross profit - 150,197 Operating expenses Selling - 188,950 General and administrative - 165,485 Research and development - 156,704 Total operating expenses - 511,139 Loss from operations - (360,942 ) Gain on disposal 833,546 0 Other income, net - 23,880 Gain (loss) before income tax 833,546 (337,062 ) Income tax - - Gain (loss) before noncontrolling interest 833,546 (337,062 ) Less: loss attributable to noncontrolling interest - (101,759 ) Net gain (loss) to the Company $ 833,546 $ (235,303 ) |
Organization and Description _2
Organization and Description of Business (Details) | 1 Months Ended | 3 Months Ended | ||||||||||||||||
Mar. 04, 2022 | Feb. 16, 2022 USD ($) | Dec. 03, 2019 | May 26, 2015 $ / shares shares | Feb. 15, 2023 USD ($) | Feb. 15, 2023 CNY (¥) | Oct. 27, 2016 shares | Sep. 30, 2023 USD ($) $ / shares shares | Jul. 20, 2023 $ / shares | Jul. 20, 2023 ¥ / shares | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 20, 2022 $ / shares | Dec. 20, 2022 ¥ / shares | Oct. 18, 2022 $ / shares | Oct. 18, 2022 ¥ / shares | Nov. 19, 2020 | Nov. 16, 2020 | Oct. 29, 2015 shares | |
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||||||
Common stock shares issued (in Shares) | 38,073,234 | 27,784,133 | 18,333,333 | |||||||||||||||
Common stock shares outstanding (in Shares) | 38,073,234 | 27,784,133 | 15,000,000 | |||||||||||||||
Price of ownership interest | $ 130,434 | ¥ 900,000 | ||||||||||||||||
Interest acquired | 30% | |||||||||||||||||
Accumulated deficit (in Dollars) | $ | $ (26,993) | $ (28,085,314) | $ (28,063,258) | |||||||||||||||
Shuhai Skill (HK) [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 100% | |||||||||||||||||
Shuhai Beijing [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 99% | |||||||||||||||||
Nanjing Fanhan Zhineng Technology Institute [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Remaining ownership interest | 1% | |||||||||||||||||
Guohao Century formed Hangzhou Zhangqi Business Management Limited Partnership [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 81% | 81% | 99% | |||||||||||||||
Zhangxun [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 90% | 90% | 90% | |||||||||||||||
Price per share | (per share) | $ 0.28 | ¥ 2 | $ 0.15 | ¥ 1 | ||||||||||||||
Hangzhou Zhangxun [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 10% | 10% | 19% | 19% | ||||||||||||||
Zhangqi [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 9% | 9% | 10% | |||||||||||||||
Guohao Century [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 99.90% | 99.90% | 99% | |||||||||||||||
Shuhai Jingwei formed Shenzhen Acoustic Effect Management Limited Partnership [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 99% | 30% | 30% | |||||||||||||||
Price per share | (per share) | $ 0.15 | ¥ 1 | ||||||||||||||||
Ownership Interest [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 1% | |||||||||||||||||
Shuhai Jingwei [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 60% | 90% | 90% | |||||||||||||||
Shenzhen Acoustic MP [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 10% | 10% | 10% | |||||||||||||||
Yirui [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 99% | |||||||||||||||||
Remaining ownership interest | 1% | |||||||||||||||||
Yiying [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 99% | |||||||||||||||||
Remaining ownership interest | 1% | |||||||||||||||||
Zhixin Liu [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership percentage | 82% | |||||||||||||||||
Xingzhong Sun [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Number of new share issued (in Shares) | 6,666,667 | |||||||||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | |||||||||||||||||
Shuhai Skill (HK) [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Number of new share issued (in Shares) | 6,666,667 | |||||||||||||||||
Shuhai Beijing [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Equity description | Pursuant to the Transfer Agreements, the Director and the President, each agreed, for no consideration, to (i) transfer his 51% and 49% respective ownership interests, in Guozhong Times (Beijing) Technology Ltd. (“Guozhong Times”) to Shuhai Beijing; and (ii) transfer his 51% and 49% respective ownership interests, in Guohao Century (Beijing) Technology Ltd. (“Guohao Century”) to Shuhai Beijing. Guozhong Times and Guohao Century were established to develop technology for electronic products, intelligence equipment and accessories, and provide software and information system consulting, installation and maintenance services. | |||||||||||||||||
Equity transfer agreements, description | Pursuant to this equity transfer agreement, the Director, the President and the unrelated individual each agreed to transfer his 51%, 16%, 33% ownership interests, in Guozhong Haoze (Beijing) Technology Ltd. (“Guozhong Haoze”) to Shuhai Beijing for no consideration. Guozhong Haoze was formed to develop and market the smart security system products. | |||||||||||||||||
Hangzhou Shuhai Zhangxun Information Technology Co., Ltd [Member] | Guohao Century formed Hangzhou Zhangqi Business Management Limited Partnership [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 51% | |||||||||||||||||
Zhangqi [Member] | Guohao Century formed Hangzhou Zhangqi Business Management Limited Partnership [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 19% | |||||||||||||||||
Zhangxun [Member] | Guohao Century formed Hangzhou Zhangqi Business Management Limited Partnership [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 30% | 30% | 69.81% | |||||||||||||||
Third Party [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Remaining ownership interest | 30% | |||||||||||||||||
Shenzhen Acoustic MP [Member] | Shuhai Jingwei [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Ownership interest percentage | 100% | 100% | ||||||||||||||||
Ms. Liu [Member] | ||||||||||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||||||||||
Number of new share issued (in Shares) | 1,666,667 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 13, 2023 USD ($) $ / shares shares | Aug. 15, 2023 USD ($) $ / shares shares | Dec. 20, 2020 USD ($) $ / shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2023 USD ($) ¥ / shares shares | Sep. 30, 2022 USD ($) shares | Jun. 30, 2023 USD ($) shares | Sep. 30, 2023 CNY (¥) shares | Sep. 30, 2023 HKD ($) shares | Sep. 21, 2023 USD ($) | Sep. 21, 2023 CNY (¥) | Aug. 01, 2023 $ / shares shares | Jul. 20, 2023 $ / shares | Jul. 20, 2023 ¥ / shares | Feb. 15, 2023 | Dec. 20, 2022 $ / shares | Dec. 20, 2022 ¥ / shares | Oct. 18, 2022 | Feb. 16, 2022 | Dec. 20, 2020 ¥ / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Net loss | $ 22,056 | $ 1,340,000 | ||||||||||||||||||
Accumulated deficit | 28,090,000 | $ 28,090,000 | ||||||||||||||||||
Negative cash flow from operating activities | 6,740,000 | 750,000 | ||||||||||||||||||
Aggregate of common stock shares (in Shares) | shares | 4,760,000 | |||||||||||||||||||
Sale of common stock per share (in Dollars per share) | $ / shares | $ 0.4 | $ 1.35 | $ 1.2 | |||||||||||||||||
Investor payment | $ 5,710,000 | ¥ 40,000,000 | ||||||||||||||||||
Shares issued (in Shares) | shares | 3,459,500 | |||||||||||||||||||
Total subscription price | $ 4,000,000 | |||||||||||||||||||
Investor payment | $ 714,286 | |||||||||||||||||||
Shares issued (in Shares) | shares | 529,101 | |||||||||||||||||||
Other expenses | $ 2,000,000 | |||||||||||||||||||
Received amount | $ 1,600,000 | |||||||||||||||||||
Agreement period | 10 years | |||||||||||||||||||
Disposal from gain | $ 830,000 | |||||||||||||||||||
Bad debt allowance for accounts receivable | 0 | 0 | $ 0 | |||||||||||||||||
Allowances for slow-moving and obsolete inventory | $ 53,254 | $ 53,254 | 52,915 | |||||||||||||||||
Amortized over their useful life | 3 years | 3 years | 3 years | 3 years | ||||||||||||||||
Tax benefit percentage | 50% | |||||||||||||||||||
Ownership noncontrolling interests | 30% | |||||||||||||||||||
Ownership price per share | (per share) | $ 0.15 | ¥ 1 | ||||||||||||||||||
Paid in capital deficit | $ 982,014 | |||||||||||||||||||
Ownership percentage | 99.90% | |||||||||||||||||||
Net income (loss) of noncontrolling interest | $ 9,932 | $ 96,624 | ||||||||||||||||||
Cash in state-owned banks | 76,000 | $ 76,000 | ¥ 500,000 | |||||||||||||||||
Cash denominated | 1,161,277 | 17,432 | ||||||||||||||||||
Federal deposit insurance corporation | 250,000 | |||||||||||||||||||
Cash | 56,227 | 56,227 | 1,487 | |||||||||||||||||
Deposit protection | 64,000 | 64,000 | $ 500,000 | |||||||||||||||||
Cash balance at financial institution | $ 1,245 | $ 1,245 | $ 809 | |||||||||||||||||
Anti-dilutive warrants (in Shares) | shares | 1,319,953 | 1,319,953 | 1,319,953 | 1,319,953 | 1,319,953 | |||||||||||||||
Shuhai Information Skill (HK) Limited [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 100% | 100% | 100% | 100% | ||||||||||||||||
Guohao Century [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 99% | 99% | 99% | 99% | 99.90% | |||||||||||||||
Hangzhou Zhangqi Business Management Partnership [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 99.81% | 99.81% | 99.81% | 99.81% | ||||||||||||||||
Zhangxun [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 90% | 90% | 90% | 90% | 90% | |||||||||||||||
Sales to third party per share | (per share) | $ 0.28 | ¥ 2 | $ 0.15 | ¥ 1 | ||||||||||||||||
Zhangqi [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 10% | 10% | 10% | 10% | 9% | |||||||||||||||
Shuhai Beijing’s [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 99% | 99% | 99% | 99% | ||||||||||||||||
Shenzhen Acoustic MP [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 10% | 10% | ||||||||||||||||||
Guozhong Times [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Non-controlling interest percentage | 0.091% | 0.091% | 0.091% | 0.091% | ||||||||||||||||
Guozhong Haoze [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Non-controlling interest percentage | 0.091% | 0.091% | 0.091% | 0.091% | ||||||||||||||||
Underwritten Public Offering [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Sale of common stock per share (in Dollars per share) | $ / shares | $ 0.4 | |||||||||||||||||||
Shares of common stock (in Shares) | shares | 5,000,000 | |||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Shares issued (in Shares) | shares | 2,962,963 | |||||||||||||||||||
Noncontrolling Interest [Member] | Zhangqi [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 1% | 1% | 1% | 1% | ||||||||||||||||
Noncontrolling Interest [Member] | Shuhai Nanjing [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 1% | 1% | 1% | 1% | ||||||||||||||||
Noncontrolling Interest [Member] | Shenzhen Acoustic MP [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 1% | 1% | 1% | 1% | ||||||||||||||||
Noncontrolling Interest [Member] | Zhangxun [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 0.10% | 0.10% | 0.10% | 0.10% | ||||||||||||||||
Shuhai Beijing’s [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Price per share (in Yuan Renminbi per share) | ¥ / shares | $ 0.001 | |||||||||||||||||||
Capital Contribution (in Yuan Renminbi per share) | ¥ / shares | $ 1 | |||||||||||||||||||
Shuhai Beijing’s [Member] | Heilongjiang Xunrui Technology Co. Ltd [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Subsidiary, ownership percentage | 100% | 100% | 100% | 100% | ||||||||||||||||
Tianjin [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Price per share (in Yuan Renminbi per share) | ¥ / shares | $ 1 | |||||||||||||||||||
Zhangxun [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Sales to third party per share | (per share) | 0.28 | ¥ 2 | ||||||||||||||||||
Zhangxun [Member] | ||||||||||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||||||||||
Sales to third party per share | $ / shares | $ 0.28 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Condensed Consolidating Balance Sheets Information - Parent Company [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Jun. 30, 2023 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash | $ 198,224 | $ 13,717 |
Accounts receivable | 388,101 | 255,725 |
Inventory | 250,711 | 241,380 |
Other current assets | 590,607 | 649,433 |
Total current assets | 1,427,643 | 1,160,255 |
Property and equipment, net | 32,620 | 42,886 |
Intangible asset, net | 379,793 | 757,700 |
Right-of-use asset, net | 52,864 | 60,348 |
Other non-current assets | 55,712 | 55,358 |
Total non-current assets | 520,989 | 916,292 |
Total assets | 1,948,632 | 2,076,547 |
Accounts payable | 512,451 | 650,406 |
Accrued liabilities and other payables | 650,978 | 1,480,947 |
Lease liability | 30,798 | 39,223 |
Loans payable | 2,375,747 | 594,906 |
Other current liabilities | 830,579 | 1,639,410 |
Total current liabilities | 4,400,553 | 4,404,892 |
Lease liability - noncurrent | 15,557 | 26,449 |
Long term long payable | 20,560 | 1,401,521 |
Total non-current liabilities | 36,117 | 1,427,970 |
Total liabilities | $ 4,436,670 | $ 5,832,862 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Condensed Consolidating Statements of Income Information - Parent Company [Member] - USD ($) | 3 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | |||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 6,880,743 | $ 1,164,305 | ||
Gross profit | 74,735 | 150,198 | ||
Net loss | $ (419,473) | [1] | $ (757,146) | [2] |
[1]exclude the gain from disposal of Zhangxun of $0.83 million.[2] include the operation of Zhangxun |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives | Sep. 30, 2023 |
Furniture and fixtures [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives [Line Items] | |
Estimated useful life | 5 years |
Office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives [Line Items] | |
Estimated useful life | 3 years |
Office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives [Line Items] | |
Estimated useful life | 5 years |
Vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvement [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Straight-Line Method over Estimated Useful Lives [Line Items] | |
Estimated useful life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | $ 6,880,743 | |
5G Messaging [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | 6,880,463 | |
5G messaging one [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | 6,880,463 | |
Cloud platform construction cooperation project [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | ||
Acoustic Intelligence Business [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | 280 | |
Ultrasonic Sound Air Disinfection Equipment [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | 280 | |
Smart City business [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue | ||
Smart agriculture [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Sources [Line Items] | ||
Total revenue |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of Exchange Rates used to Translate Amounts - RMB [Member] | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Summary of Significant Accounting Policies (Details) - Schedule of Exchange Rates used to Translate Amounts [Line Items] | |||
Period-end date USD: RMB exchange rate | 7.1798 | 7.2258 | 7.0998 |
Average USD for the reporting period: RMB exchange rate | 7.1729 | 6.9415 | 6.8287 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | |
Property and Equipment (Details) [Line Items] | |||
Depreciation expense | $ 10,662 | $ 40,861 | |
Property and equipment, disposals | 29,148 | ||
Property and equipment with related accumulated depreciation | 471,608 | $ 477,158 | |
Zhangxun [Member] | |||
Property and Equipment (Details) [Line Items] | |||
Property and equipment with related accumulated depreciation | $ 19,136 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 539,308 | $ 563,088 | |
Less: accumulated depreciation | 471,608 | 477,158 | |
Total | 67,700 | $ 85,930 | 85,930 |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 85,267 | 84,014 | |
Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 487 | 484 | |
Leasehold improvement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 218,322 | 216,932 | |
Office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 235,232 | $ 261,658 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets (Details) [Line Items] | ||
Amortization expense | $ 127,211 | $ 148,903 |
Amortization expense year one | 508,844 | |
Amortization expense year two | 206,235 | |
Amortization expense year three | 0 | |
Amortization expense year four | 0 | |
Amortization expense year five | 0 | |
Disposal of intangible asset | 620,000 | |
Zhangxun [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Disposal of intangible asset with related accumulated amortization | $ 280,000 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Subtotal | $ 1,678,577 | $ 2,299,458 |
Less: Accumulated amortization | 963,498 | 1,110,671 |
Total | 715,079 | 1,185,787 |
Software registration or using right [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Subtotal | 1,636,801 | 1,635,307 |
Patent [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Subtotal | 14,620 | 14,527 |
Software and technology development costs [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Subtotal | 11,684 | 631,250 |
Value-added telecommunications business license [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Subtotal | $ 15,472 | $ 15,374 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 18, 2023 USD ($) | Sep. 16, 2023 | Sep. 14, 2023 USD ($) | Aug. 15, 2020 CNY (¥) | Aug. 15, 2020 USD ($) | Jun. 30, 2020 CNY (¥) | Nov. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Jun. 30, 2020 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 18, 2023 CNY (¥) | Sep. 14, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Aug. 31, 2020 USD ($) | Aug. 31, 2020 CNY (¥) | |
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Other prepayments | $ 34,535 | ||||||||||||||||||
Market developing fee rate | 2% | 30% | |||||||||||||||||
Unachieved rate in annual sales | 30% | 30% | |||||||||||||||||
Total borrowing amount | $ 1,410,000 | ¥ 10,000,000 | |||||||||||||||||
Outstanding receivable | $ 513,701 | ¥ 3,530,000 | |||||||||||||||||
Interest expenses | ¥ 200,000 | $ 28,250 | ¥ 200,000 | $ 28,250 | |||||||||||||||
Interest rate | 15% | 15% | 15% | 15% | |||||||||||||||
Debt transfer amount | $ 213,596 | ¥ 1,543,400 | |||||||||||||||||
Repayment amount | $ 48,438 | $ 48,438 | |||||||||||||||||
Bad debt allowance | 460,850 | $ 463,801 | |||||||||||||||||
Jincheng Haoda First Year [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Sales performance | $ 200,000,000 | ||||||||||||||||||
Jincheng Haoda Second Year [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Sales performance | 300,000,000 | ||||||||||||||||||
Jincheng Haoda Third Year [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Sales performance | 400,000,000 | ||||||||||||||||||
Jiajia Shengshi First Year [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Sales performance | 200,000,000 | ||||||||||||||||||
Jiajia Shengshi Second Year [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Sales performance | 300,000,000 | ||||||||||||||||||
Jiajia Shengshi Third Year[Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Sales performance | 500,000,000 | ||||||||||||||||||
Prepaid Marketing Fee [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Prepaid expenses | 5,570,573 | ||||||||||||||||||
Prepaid Rent and Property Management Fee [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Prepaid expenses | 446,228 | 48,200 | |||||||||||||||||
Other Prepayments [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Prepaid expenses | $ 12,872 | 14,608 | |||||||||||||||||
5G Messaging Service Fee [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Prepaid expenses | $ 500,395 | ||||||||||||||||||
Minimum [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Profits of sale of face recognition payment, percent | 30% | ||||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Profits of sale of face recognition payment, percent | 70% | ||||||||||||||||||
Guorui Innovation [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Market developing fee rate | 32.50% | ||||||||||||||||||
Prepayment | $ 1,810,719 | ¥ 13,000,600 | |||||||||||||||||
Jincheng Haoda [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Market developing fee rate | 20% | 25% | |||||||||||||||||
Prepayment | $ 2,088,777 | ¥ 14,997,000 | |||||||||||||||||
Unachieved rate in annual sales | 30% | 30% | |||||||||||||||||
Jiajia Shengshi [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Market developing fee rate | 20% | 30% | |||||||||||||||||
Prepayment | $ 1,671,077 | ¥ 11,998,000 | |||||||||||||||||
Unachieved rate in annual sales | 30% | 30% | |||||||||||||||||
Marketing service fee, percentage | 20% | ||||||||||||||||||
Guorui Innovation [Member] | |||||||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||||||
Annual revenue | $ 200,000,000 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule Of Prepaid Expenses And Other Current Assets Abstract | |||
Security deposit | $ 46,217 | $ 15,615 | |
Prepaid expenses | 6,064,208 | 563,203 | |
Other receivables – Heqin | 463,801 | 460,850 | |
Total | 6,358,043 | $ 701,423 | 701,423 |
Advance to third party individuals, no interest, payable upon demand | 4,527 | 11,764 | |
Others | 243,091 | 110,841 | |
Total | 6,821,844 | 1,162,273 | |
Less: allowance for other receivables – Heqin | $ 463,801 | $ 460,850 |
Long Term Investment (Details)
Long Term Investment (Details) | 1 Months Ended | |||
Aug. 31, 2022 USD ($) | Aug. 31, 2022 CNY (¥) | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | |
Long Term Investment (Details) [Line Items] | ||||
Stock ownership invested | $ (28,717) | ¥ 200,000 | ||
Stock ownership percentage | 1% | 1% | ||
Internet Security Equipment [Member] | ||||
Long Term Investment (Details) [Line Items] | ||||
Stock ownership invested | $ (29,800) | ¥ 200,000 | ||
Stock ownership percentage | 6.21% | 6.21% |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($) | Sep. 30, 2023 | Jun. 30, 2022 |
Payables and Accruals [Abstract] | ||
Other payables | $ 183,910 | $ 308,841 |
Due to third parties | 163,796 | 175,354 |
Social security payable | 216,525 | 537,964 |
Salary payable–- employees | 78,063 | 387,780 |
Total | $ 642,294 | $ 1,409,939 |
Loans Payable (Details)
Loans Payable (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 | Apr. 25, 2023 USD ($) | Apr. 25, 2023 CNY (¥) | Jan. 13, 2023 USD ($) | Jan. 13, 2023 CNY (¥) | Dec. 24, 2022 USD ($) | Dec. 12, 2022 USD ($) | Dec. 12, 2022 CNY (¥) | Oct. 01, 2022 USD ($) | Oct. 01, 2022 CNY (¥) | Jul. 01, 2022 USD ($) | Jul. 01, 2022 CNY (¥) | Apr. 24, 2022 USD ($) | |
Loans Payable (Details) [Line Items] | |||||||||||||||||
Loan payable to bank | $ 435,118 | ¥ 2,990,000 | |||||||||||||||
Interest expense | $ 2,503 | ||||||||||||||||
Current liabilities | 416,446 | ||||||||||||||||
Non-current liabilities | 17,907 | ||||||||||||||||
Loan agreement with unrelated party | $ 642,779 | ¥ 3,970,000 | $ 789,177 | ¥ 5,603,000 | $ 596,001 | ||||||||||||
Repaid unrelated party loan | $ 447,001 | 1,810,719 | ¥ 13,000,600 | $ 160,000 | |||||||||||||
Other receivable | 1,879,713 | $ 1,310,306 | |||||||||||||||
Loan from bank [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Interest rate percentage | 2.35% | 2.35% | |||||||||||||||
Loans [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Extend loan maturity date | Jun. 30, 2023 | ||||||||||||||||
Beijing Shuhai [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Loan payable to bank | $ 129,225 | ¥ 900,000 | |||||||||||||||
Interest rate percentage | 10.728% | 10.728% | |||||||||||||||
Repayment loan amount | 17,925 | ||||||||||||||||
Zhangxun [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Loan payable to bank | $ 153,208 | ||||||||||||||||
Interest expense | 2,783 | ||||||||||||||||
Current liabilities | 7,959 | ||||||||||||||||
Non-current liabilities | 2,653 | ||||||||||||||||
Shenzhen Qianhai WeBank Co., Ltd [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Current liabilities | 71,630 | ||||||||||||||||
Shenzhen Jingwei [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Loan payable to bank | $ 14,552 | ¥ 100,000 | |||||||||||||||
Interest rate percentage | 8.6832% | 8.6832% | |||||||||||||||
Zhangxun One [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Repayment loan amount | 1,992 | ||||||||||||||||
Interest expense | 265 | ||||||||||||||||
Guorui Innovation [Member] | |||||||||||||||||
Loans Payable (Details) [Line Items] | |||||||||||||||||
Repaid unrelated party loan | $ 1,810,719 | ¥ 13,000,600 |
Loans Payable (Details) - Sched
Loans Payable (Details) - Schedule of Summarizes the Loan Balance | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Loan amount | $ 555,726 |
Current | 496,035 |
Non- current | 20,560 |
Shenzhen Qianhai WeBank Co., Ltd One [Member] | |
Debt Instrument [Line Items] | |
Loan amount | $ 13,928 |
Borrowing date | Jan. 13, 2023 |
Loan term | 24 months |
Interest rate | 8.68% |
Current | $ 7,959 |
Non- current | 2,653 |
Shenzhen Qianhai WeBank Co., Ltd Three [Member] | |
Debt Instrument [Line Items] | |
Loan amount | $ 125,352 |
Borrowing date | Dec. 20, 2022 |
Loan term | 24 months |
Interest rate | 10.73% |
Current | $ 71,630 |
Non- current | 17,907 |
China Bank Co., Ltd [Member] | |
Debt Instrument [Line Items] | |
Loan amount | $ 416,446 |
Borrowing date | Apr. 25, 2023 |
Loan term | 12 months |
Interest rate | 2.35% |
Current | $ 416,446 |
Non- current |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 01, 2023 USD ($) | Sep. 01, 2023 CNY (¥) | May 01, 2023 USD ($) | May 01, 2023 CNY (¥) | Mar. 01, 2023 USD ($) | Mar. 01, 2023 CNY (¥) | Sep. 01, 2022 USD ($) | Sep. 01, 2022 CNY (¥) | Jul. 01, 2022 USD ($) | Jul. 01, 2022 CNY (¥) | May 01, 2022 USD ($) | May 01, 2022 CNY (¥) | Oct. 01, 2021 USD ($) | Oct. 01, 2021 CNY (¥) | Sep. 01, 2021 USD ($) | Sep. 01, 2021 CNY (¥) | Jul. 01, 2021 USD ($) | Jul. 01, 2021 CNY (¥) | Oct. 01, 2020 USD ($) | Oct. 01, 2020 CNY (¥) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rent payment | $ 1,743 | ¥ 12,500 | $ 39,144 | ¥ 282,852 | $ 12,621 | ¥ 91,200 | $ 13,355 | ¥ 91,200 | $ 35,120 | ¥ 235,710 | $ 33,400 | |||||||||||||||
Rental expense | $ 5,981 | $ 6,678 | ||||||||||||||||||||||||
Due to related parties | $ 494,927 | $ 1,162,856 | $ 494,927 | $ 1,162,856 | ||||||||||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rent payment | $ 2,800 | ¥ 18,000 | $ 24,050 | ¥ 163,800 | ||||||||||||||||||||||
Rental expense | 15,893 | 30,752 | ||||||||||||||||||||||||
Senior officers [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rental expense | $ 9,963 | $ 8,629 | ||||||||||||||||||||||||
Apartment Rental Agreement [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rent payment | $ 14,690 | ¥ 94,500 | ||||||||||||||||||||||||
Beijing [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rent payment | $ 2,439 | ¥ 15,200 | ||||||||||||||||||||||||
Car One [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rent payment | $ 2,636 | ¥ 18,000 | $ 2,491 | ¥ 18,000 | ||||||||||||||||||||||
Car Two [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Details) [Line Items] | ||||||||||||||||||||||||||
Rent payment | $ 2,876 | ¥ 20,000 | $ 2,768 | ¥ 20,000 |
Common Stock and Warrants (Deta
Common Stock and Warrants (Details) | 3 Months Ended | ||||||||
Sep. 13, 2023 USD ($) $ / shares shares | Aug. 15, 2023 USD ($) $ / shares shares | Aug. 01, 2023 $ / shares shares | Jul. 20, 2021 $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 21, 2023 USD ($) | Sep. 21, 2023 CNY (¥) | Jun. 30, 2023 USD ($) shares | |
Common Stock and Warrants (Details) [Line Items] | |||||||||
Aggregate shares of common stock (in Shares) | shares | 2,436,904 | ||||||||
Purchase shares of common stock (in Shares) | shares | 1,096,608 | ||||||||
Aggregate gross proceeds | $ 8,480,426 | ||||||||
Expected term life | 2 years 6 months | ||||||||
Volatility percentage | 150% | ||||||||
Risk-free interest rate | 0.37% | ||||||||
Dividend yield percentage | 0% | ||||||||
Warrants issued | $ 1,986,880 | ||||||||
Description of warrants issued | In addition, the Company has also agreed to issue to its placement agent for offering above warrants to purchase a number of shares of the common stock equal to 5.0% of the aggregate number of shares of the common stock sold in this offering (121,845 warrants), the warrants have an exercise price of $4.48 per share and will terminate on the two and one-half-year anniversary of the closing of the offering. The Company accounted for the warrants issued based on the FV method under FASB ASC Topic 505, and the FV of the warrants was calculated using the Black-Scholes model under the following assumptions: life of 2.5 years, volatility of 150%, risk-free interest rate of 0.37% and dividend yield of 0%. The FV of the warrants issued at grant date was $225,964. | ||||||||
Purchase price per share (in Dollars per share) | $ / shares | $ 1.2 | ||||||||
Full payment received | $ 5,710,000 | ¥ 40,000,000 | |||||||
Company shares issued (in Shares) | shares | 2,962,963 | ||||||||
Payment for salary payable | $ 4,000,000 | ||||||||
cash paid by investor | $ 714,286 | $ 1,218,748 | $ 19,728 | ||||||
Shares issued (in Shares) | shares | 529,101 | ||||||||
Public offering (in Shares) | shares | 5,000,000 | ||||||||
Price per share (in Dollars per share) | $ / shares | $ 0.4 | $ 1.35 | $ 1.2 | ||||||
Gross proceeds | $ 2,000,000 | ||||||||
Net proceeds | $ 1,600,000 | ||||||||
Stock compensation expense | $ 20,100 | $ 116,250 | |||||||
Equity inventive plan, description | On September 24, 2021, under the 2018 Equity Inventive plan, the Company’s Board of Directors granted 15,000 shares of the Company’s common stock to its CEO each month and 10,000 shares to one of the board members each month starting from July 1, 2021, payable quarterly with the aggregate number of shares for each quarter being issued on the first day of the next quarter at a per share price of the closing price of the day prior to the issuance. During the three months ended September 30, 2023 and 2022, the Company recorded $15,600 and $111,750 stock compensation expense to the Company’s CEO and one of the board members for the quarter. | ||||||||
Shares of common stock (in Shares) | shares | 3,459,500 | ||||||||
Fair value | $ 3,976,362 | ||||||||
Warrant [Member] | |||||||||
Common Stock and Warrants (Details) [Line Items] | |||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 4.48 | ||||||||
Director [Member] | |||||||||
Common Stock and Warrants (Details) [Line Items] | |||||||||
Stock compensation expense | $ 4,500 | $ 4,500 | |||||||
Non US Investor [Member] | |||||||||
Common Stock and Warrants (Details) [Line Items] | |||||||||
Aggregate shares of common stock (in Shares) | shares | 4,760,000 | ||||||||
Securities Purchase Agreement [Member] | |||||||||
Common Stock and Warrants (Details) [Line Items] | |||||||||
Purchase price per share (in Dollars per share) | $ / shares | $ 3.48 | ||||||||
Net proceeds | $ 7,640,000 | ||||||||
Equity Incentive Plan Two Thousand and Eighteen [Member] | |||||||||
Common Stock and Warrants (Details) [Line Items] | |||||||||
Shares of common stock (in Shares) | shares | 3,459,500 |
Common Stock and Warrants (De_2
Common Stock and Warrants (Details) - Schedule of Activities of Warrants - Warrants [Member] | 3 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Schedule of Activities of Warrants [Abstract] | |
Number of Warrants Outstanding, Beginning Balance | shares | 1,319,953 |
Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 4.6 |
Weighted Average Remaining Contractual Term in Years Outstanding, Beginning Balance | 7 months 17 days |
Number of Warrants Outstanding, Exercisable Beginning Balance | shares | 1,319,953 |
Average Exercise Price Outstanding, Exercisable Beginning Balance | $ / shares | $ 4.6 |
Weighted Average Remaining Contractual Term in Years Outstanding, Exercisable Beginning Balance | 7 months 17 days |
Number of Warrants, Exercised | shares | |
Average Exercise Price, Exercised | $ / shares | |
Number of Warrants, Forfeited | shares | |
Average Exercise Price, Forfeited | $ / shares | |
Number of Warrants, Expired | shares | |
Average Exercise Price, Expired | $ / shares | |
Number of Warrants Outstanding, Ending Balance | shares | 1,319,953 |
Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 4.6 |
Weighted Average Remaining Contractual Term in Years Outstanding, Ending Balance | 4 months 17 days |
Number of Warrants Outstanding, Exercisable Ending Balance | shares | 1,319,953 |
Average Exercise Price Outstanding, Exercisable Ending Balance | $ / shares | $ 4.6 |
Weighted Average Remaining Contractual Term in Years Outstanding, Exercisable Ending Balance | 4 months 17 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes [Line Items] | |||
U.S. income tax rate | 21% | ||
Net operating loss (in Dollars) | $ 16,050 | $ 17,100 | |
Reduce of taxpayer’s taxable income | 80% | ||
Description of income tax limitations | However, the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”) passed in March 2020, provides tax relief to both corporate and noncorporate taxpayers by adding a five-year carryback period and temporarily repealing the 80% limitation for NOLs arising in 2018, 2019 and 2020. | ||
Percentage of differed tax asset | 100% | ||
Shuhai Skill [Member] | |||
Income Taxes [Line Items] | |||
Corporate income tax rate | 16.50% | ||
Shuhai Beijing [Member] | |||
Income Taxes [Line Items] | |||
Corporate income tax rate | 15% | ||
Zhangxun [Member] | |||
Income Taxes [Line Items] | |||
Corporate income tax rate | 25% | ||
NOL [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss (in Dollars) | $ 6,720 | $ 6,510 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Reconciles the U.S. Statutory Rates to the Company’s Effective Tax Rate | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Reconciles the US Statutory Rates to the Company’s Effective Tax Rate [Abstract] | ||
US federal statutory rates | (21.00%) | (21.00%) |
Tax rate difference – current provision | (2.10%) | (3.50%) |
Effect of PRC tax holiday | 2.70% | 3.20% |
Valuation allowance | 20.40% | 21.30% |
Effective tax rate |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Net Deferred Tax Assets - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Deferred tax asset | ||
Net operating loss | $ 3,722,696 | $ 3,986,827 |
R&D expense | 123,750 | 123,750 |
Depreciation and amortization | 76,754 | 180,522 |
Bad debt expense | 116,063 | 119,932 |
Social security and insurance accrual | 47,472 | 149,196 |
Inventory impairment | 13,326 | 13,771 |
ROU, net of lease liabilities | 3,430 | 20,171 |
Total | 4,103,491 | 4,594,168 |
Less: valuation allowance | (4,103,491) | (4,594,168) |
Net deferred tax asset |
Commitments (Details)
Commitments (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
May 10, 2023 USD ($) | May 10, 2023 CNY (¥) | Oct. 08, 2022 USD ($) | Oct. 08, 2022 CNY (¥) | Jul. 30, 2019 USD ($) | Jul. 30, 2019 CNY (¥) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 01, 2023 USD ($) | Mar. 01, 2023 CNY (¥) | Oct. 06, 2022 USD ($) | Oct. 06, 2022 CNY (¥) | Sep. 01, 2022 USD ($) | Sep. 01, 2022 CNY (¥) | Aug. 31, 2020 USD ($) | Aug. 31, 2020 CNY (¥) | |
Commitments (Details) [Line Items] | ||||||||||||||||||||||
Expires date | Oct. 08, 2022 | Oct. 08, 2022 | ||||||||||||||||||||
Monthly rent | $ 15,787 | ¥ 107,714 | $ 2,045 | ¥ 14,500 | $ 2,350 | ¥ 15,200 | ||||||||||||||||
Deposit amount | $ 16,400 | ¥ 115,311 | ||||||||||||||||||||
Quarterly fee | 14,128 | 96,476 | $ 29,000 | ¥ 202,352 | ||||||||||||||||||
New deposit | $ 14,128 | ¥ 96,476 | ||||||||||||||||||||
Total rent | $ 122,253 | ¥ 848,620 | $ 13,272 | ¥ 91,200 | $ 13,355 | ¥ 91,200 | $ 29,651 | ¥ 209,911 | ||||||||||||||
Increase in rent percentage | 3% | 3% | ||||||||||||||||||||
Annual rent first year | $ 207,000 | ¥ 1,383,970 | ||||||||||||||||||||
Annual rent second year | 202,800 | 1,425,909 | ||||||||||||||||||||
Security deposit | $ 7,670 | ¥ 115,311 | ||||||||||||||||||||
Operating Lease [Member] | ||||||||||||||||||||||
Commitments (Details) [Line Items] | ||||||||||||||||||||||
Expires date | Oct. 07, 2022 | Oct. 07, 2022 | ||||||||||||||||||||
Monthly rent | $ 29,250 | ¥ 207,269 | ||||||||||||||||||||
Deposit amount | $ 96,000 | ¥ 677,769 | ||||||||||||||||||||
Property Service Agreement [Member] | ||||||||||||||||||||||
Commitments (Details) [Line Items] | ||||||||||||||||||||||
Deposit amount | $ 29,000 | ¥ 202,352 | ||||||||||||||||||||
Hangzhou [Member] | ||||||||||||||||||||||
Commitments (Details) [Line Items] | ||||||||||||||||||||||
Total rent | $ 172,575 | ¥ 1,178,463 |
Commitments (Details) - Schedul
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City | 3 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | |
5/10/2023 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 5/10/2023 | 5/10/2023 |
End Date | 8/9/2023 | 8/9/2023 |
Rent expense | $ 6,060 | ¥ 43,786 |
8/10/2023 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 8/10/2023 | 8/10/2023 |
End Date | 11/9/2023 | 11/9/2023 |
Rent expense | $ 9,139 | ¥ 66,038 |
11/10/2023 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 11/10/2023 | 11/10/2023 |
End Date | 2/9/2024 | 2/9/2024 |
Rent expense | $ 9,139 | ¥ 66,038 |
2/10/2024 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 2/10/2024 | 2/10/2024 |
End Date | 5/9/2024 | 5/9/2024 |
Rent expense | $ 8,940 | ¥ 64,602 |
5/10/2024 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 5/10/2024 | 5/10/2024 |
End Date | 8/9/2024 | 8/9/2024 |
Rent expense | $ 9,139 | ¥ 66,038 |
8/10/2024 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 8/10/2024 | 8/10/2024 |
End Date | 11/9/2024 | 11/9/2024 |
Rent expense | $ 9,139 | ¥ 66,038 |
11/10/2024 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 11/10/2024 | 11/10/2024 |
End Date | 2/9/2025 | 2/9/2025 |
Rent expense | $ 9,139 | ¥ 66,038 |
2/10/2025 [Member] | ||
Commitments (Details) - Schedule of Guo Hao Century Entered into a Lease for the Office in Hangzhou City [Line Items] | ||
Start Date | 2/10/2025 | 2/10/2025 |
End Date | 5/9/2025 | 5/9/2025 |
Rent expense | $ 8,841 | ¥ 63,884 |
Commitments (Details) - Sched_2
Commitments (Details) - Schedule of Components of Lease Costs - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Commitments (Details) - Schedule of Components of Lease Costs [Line Items] | |||
Operating lease expense | $ 74,181 | $ 203,111 | |
Right-of-use assets | 65,854 | $ 137,856 | |
Lease liabilities - noncurrent | 17,781 | $ 26,449 | |
Commitments [Member] | |||
Commitments (Details) - Schedule of Components of Lease Costs [Line Items] | |||
Right-of-use assets | 65,854 | 137,856 | |
Lease liabilities - current | 34,367 | 126,640 | |
Lease liabilities - noncurrent | $ 17,781 | $ 26,449 | |
Weighted average remaining lease term | 4 months 9 days | 8 months 1 day | |
Weighted average discount rate | 6.25% | 6.25% |
Commitments (Details) - Sched_3
Commitments (Details) - Schedule of Maturities of the Operating Lease Liabilities | Sep. 30, 2023 USD ($) |
Schedule of Maturities of the Operating Lease Liabilities [Abstract] | |
2023 | $ 36,591 |
2024 | 18,096 |
Total undiscounted cash flows | 54,687 |
Less: imputed interest | (2,539) |
Present value of lease liabilities | $ 52,148 |
Disposal of Subsidiary (Details
Disposal of Subsidiary (Details) | 3 Months Ended | |||
Sep. 30, 2023 USD ($) $ / shares | Jul. 20, 2023 $ / shares | Jul. 20, 2023 ¥ / shares | Jun. 30, 2023 USD ($) | |
Disposal of Subsidiary (Details) [Line Items] | ||||
Gain on disposal | $ 830,000 | |||
Selling price (in Dollars per share) | $ / shares | $ 0.28 | |||
Existing subsidiaries outstanding | $ 1,879,713 | $ 1,310,306 | ||
Zhangxun [Member] | ||||
Disposal of Subsidiary (Details) [Line Items] | ||||
Sales to third party | (per share) | $ 0.28 | ¥ 2 | ||
Gain on disposal | 1,520,000 | |||
Net assets | 2,350,000 | |||
Existing subsidiaries outstanding | $ 1,520,000 |
Disposal of Subsidiary (Detai_2
Disposal of Subsidiary (Details) - Scheule of Write-off of the Company and Existing Subsidiaries | Sep. 30, 2023 USD ($) |
Scheule of Write-off of the Company and Existing Subsidiaries [Abstract] | |
Cash | $ 34 |
Accounts receivable | 254,988 |
Other current assets | 50,406 |
Fixed assets, net | 10,012 |
Intangible assets, net | 344,629 |
Total assets | 660,069 |
Accounts payable | 530,260 |
Advance from customers | 94,126 |
Accrued liability and other payables | 749,156 |
Loan payables | 153,045 |
Total liabilities | $ 1,526,587 |
Disposal of Subsidiary (Detai_3
Disposal of Subsidiary (Details) - Schedule of Results Operations Relating to Discontinued Operations Zhangxun - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Results Operations Relating to Discontinued Operations Zhangxun [Abstract] | ||
Revenues | $ 1,164,305 | |
Cost of goods sold | 1,014,108 | |
Gross profit | 150,197 | |
Operating expenses | ||
Selling | 188,950 | |
General and administrative | 165,485 | |
Research and development | 156,704 | |
Total operating expenses | 511,139 | |
Loss from operations | (360,942) | |
Gain on disposal | 833,546 | 0 |
Other income, net | 23,880 | |
Gain (loss) before income tax | 833,546 | (337,062) |
Income tax | ||
Gain (loss) before noncontrolling interest | 833,546 | (337,062) |
Less: loss attributable to noncontrolling interest | (101,759) | |
Net gain (loss) to the Company | $ 833,546 | $ (235,303) |