Cover
Cover - shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Entity Addresses [Line Items] | ||
Document Type | 20-F/A | |
Amendment Flag | true | |
Amendment Description | Amendment No.1 | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 001-38304 | |
Entity Registrant Name | Dogness (International) Corporation | |
Entity Central Index Key | 0001707303 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Address, Address Line One | Tongsha Industrial Estate | |
Entity Address, Address Line Two | East District | |
Entity Address, City or Town | Dongguan | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 523217 | |
Title of 12(b) Security | Common Shares, $0.002 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Auditor Name | Audit Alliance LLP | Prager Metis CPAs, LLC |
Auditor Location | Singapore | Hackensack, New Jersey |
Auditor Firm ID | 3481 | 273 |
Common Class A [Member] | ||
Entity Addresses [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,555,814 | |
Common Class B [Member] | ||
Entity Addresses [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,069,000 | |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | Tongsha Industrial Estate | |
Entity Address, City or Town | Dongguan | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 523217 | |
City Area Code | +1 | |
Local Phone Number | 214 463 6268 | |
Contact Personnel Name | Dr. Yunhao Chen | |
Contact Personnel Email Address | yunhaochen@dogness.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
CURRENT ASSETS | ||
Cash | $ 16,605,872 | $ 4,912,442 |
Restricted cash | 23,312 | |
Short-term investments | 52,255 | 549,895 |
Accounts receivable from third-party customers, net | 1,649,169 | 2,367,326 |
Accounts receivable from related parties | 1,094,855 | 515,193 |
Inventories, net | 3,369,885 | 4,203,163 |
Due from related parties | 105,403 | 32,528 |
Prepayments and other current assets | 477,237 | 1,662,272 |
Total current assets | 23,354,676 | 14,266,131 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 68,447,612 | 69,876,039 |
Right-of-use lease assets | 4,589,678 | 5,170,395 |
Intangible assets, net | 2,063,417 | 2,223,285 |
Long-term investments in equity investees | 1,642,300 | 1,703,900 |
Deferred tax assets | 699,039 | 605,658 |
Total non-current assets | 77,442,046 | 79,579,277 |
TOTAL ASSETS | 100,796,722 | 93,845,408 |
CURRENT LIABILITIES | ||
Short-term bank loans | 564,000 | 704,446 |
Current portion of long term bank loans | 1,386,160 | 796,416 |
Accounts payable | 1,033,476 | 847,151 |
Accounts payable – related parties | 393,625 | 350,199 |
Due to related parties | 130,468 | 2,001,940 |
Advances from customers | 151,462 | 209,508 |
Taxes payable | 1,557,661 | 4,443,192 |
Accrued expenses and other current liabilities | 1,083,469 | 11,737,680 |
Operating lease liabilities, current | 184,700 | 171,803 |
Total current liabilities | 6,485,021 | 21,262,335 |
NON-CURRENT LIABILITIES | ||
Long term bank loans | 4,934,374 | 6,557,608 |
Operating lease liabilities, non-current | 901,351 | 1,123,060 |
Total non-current liabilities | 5,835,725 | 7,680,668 |
TOTAL LIABILITIES | 12,320,746 | 28,943,003 |
Commitments and Contingencies | ||
EQUITY | ||
Additional paid-in capital | 84,096,866 | 60,355,278 |
Statutory reserve | 291,443 | 291,443 |
Retained earnings | 7,864,267 | 4,628,708 |
Accumulated other comprehensive loss | (4,152,577) | (960,285) |
Equity attributable to owners of the Company | 88,178,547 | 64,374,393 |
Non-controlling interest | 297,429 | 528,012 |
Total equity | 88,475,976 | 64,902,405 |
TOTAL LIABILITIES AND EQUITY | 100,796,722 | 93,845,408 |
Common Class A [Member] | ||
EQUITY | ||
Common stock value | 60,410 | 41,111 |
Common Class B [Member] | ||
EQUITY | ||
Common stock value | $ 18,138 | $ 18,138 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Jun. 30, 2021 | Apr. 26, 2017 | Jul. 11, 2016 |
Statement of Financial Position [Abstract] | ||||
Common stock, par value | $ 0.002 | $ 0.002 | $ 0.002 | $ 0.002 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 15,000,000 |
Common stock, shares issued | 39,274,259 | 29,624,814 | 15,000,000 | |
Common stock, shares outstanding | 39,274,259 | 29,624,814 | 15,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | |||
Revenues- third party customers | $ 24,882,618 | $ 23,112,435 | $ 18,261,707 |
Revenues – related parties | 2,212,579 | 1,207,686 | 909,651 |
Total Revenues | 27,095,197 | 24,320,121 | 19,171,358 |
Cost of revenues – third party customers | (15,654,952) | (14,501,166) | (16,146,856) |
Cost of revenues – related parties | (1,301,180) | (663,742) | (633,132) |
Total cost of revenues | (16,956,132) | (15,164,908) | (16,779,988) |
Gross Profit | 10,139,065 | 9,155,213 | 2,391,370 |
Operating expenses: | |||
Selling expenses | 2,077,174 | 1,815,771 | 2,336,229 |
General and administrative expenses | 6,742,687 | 4,941,036 | 5,746,812 |
Research and development expenses | 917,227 | 540,613 | 1,528,062 |
Loss from disposal of property, plant and equipment | 327,921 | 1,036,304 | |
Impairment of fixed assets | 281,680 | ||
Impairment loss of investment in equity investees | 177,750 | ||
Total operating expenses | 10,065,009 | 7,297,420 | 11,106,837 |
Income (loss) from operations | 74,056 | 1,857,793 | (8,715,467) |
Other income: | |||
Interest income (expense), net | (370,108) | (264,408) | 15,560 |
Foreign exchange transaction gain (loss) | 246,211 | (228,260) | 214,171 |
Other income, net | 115,016 | 215,233 | 23,937 |
Rental income from related parties, net | 173,089 | 354,968 | 89,411 |
Gain from disposition of a subsidiary | 5,162 | ||
Total other income | 164,208 | 82,695 | 343,079 |
Income (loss) before income taxes | 238,264 | 1,940,488 | (8,372,388) |
Income taxes benefit (expense) | (2,777,868) | 641,460 | 164,537 |
Net income (loss) | 3,016,132 | 1,299,028 | (8,536,925) |
Less: net loss attributable to non-controlling interest | (219,427) | (213,336) | (95,366) |
Net income (loss) attributable to Dogness (International) Corporation | 3,235,559 | 1,512,364 | (8,441,559) |
Other comprehensive income (loss): | |||
Foreign currency translation income (loss) | (3,203,448) | 4,879,315 | (1,896,934) |
Comprehensive income (loss) | (187,316) | 6,178,343 | (10,433,859) |
Less: comprehensive loss attributable to non-controlling interest | (230,583) | (161,701) | (98,635) |
Comprehensive income (loss) attributable to Dogness (International) Corporation | $ 43,267 | $ 6,340,044 | $ (10,335,224) |
Income (loss) earnings per share | |||
Basic | $ 0.10 | $ 0.05 | $ (0.33) |
Diluted | $ 0.10 | $ 0.05 | $ (0.33) |
Weighted Average Shares Outstanding | |||
Basic | 33,711,659 | 27,499,367 | 25,913,631 |
Diluted | 34,013,634 | 27,554,811 | 25,913,631 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] Common Class A [Member] | Common Stock [Member] Common Class B [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2019 | $ 33,689 | $ 18,138 | $ 52,827,145 | $ 191,716 | $ 11,657,630 | $ (3,894,300) | $ 117,486 | $ 60,951,504 |
Balance, shares at Jun. 30, 2019 | 16,844,631 | 9,069,000 | ||||||
Net income for the year | (8,441,559) | (95,366) | (8,536,925) | |||||
Options granted for services | 394,465 | 394,465 | ||||||
Capital contribution made by non-controlling shareholders | 595,818 | 595,818 | ||||||
Foreign currency translation loss | (1,893,665) | (3,269) | $ (1,896,934) | |||||
Share option exercised, shares | ||||||||
Balance at Jun. 30, 2020 | $ 33,689 | $ 18,138 | 53,221,610 | 191,716 | 3,216,071 | (5,787,965) | 614,669 | $ 51,507,928 |
Balance, shares at Jun. 30, 2020 | 16,844,631 | 9,069,000 | ||||||
Net income for the year | 1,512,364 | (213,336) | 1,299,028 | |||||
Options granted for services | 142,158 | 142,158 | ||||||
Capital contribution made by non-controlling shareholders | 104,190 | 104,190 | ||||||
Foreign currency translation loss | 4,827,680 | 51,635 | 4,879,315 | |||||
Disposition of a subsidiary | (29,146) | (29,146) | ||||||
Issuance shares for Private placement | $ 6,910 | 6,604,522 | 6,611,432 | |||||
Issuance shares for private placement, shares | 3,455,130 | |||||||
Issuance shares for services | $ 500 | 387,000 | 387,500 | |||||
Issuance shares for services, shares | 250,000 | |||||||
Share option exercised | $ 12 | (12) | ||||||
Share option exercised, shares | 6,053 | 10,000 | ||||||
Statutory reserve | 99,727 | (99,727) | ||||||
Balance at Jun. 30, 2021 | $ 41,111 | $ 18,138 | 60,355,278 | 291,443 | 4,628,708 | (960,285) | 528,012 | 64,902,405 |
Balance, shares at Jun. 30, 2021 | 20,555,814 | 9,069,000 | ||||||
Net income for the year | 3,235,559 | (219,427) | 3,016,132 | |||||
Options granted for services | 11,831 | 11,831 | ||||||
Foreign currency translation loss | (3,192,292) | (11,156) | (3,203,448) | |||||
Issuance shares for Private placement | $ 15,561 | 19,109,359 | 19,124,920 | |||||
Issuance shares for private placement, shares | 7,780,736 | |||||||
Share option exercised | $ 446 | 179,554 | $ 180,000 | |||||
Share option exercised, shares | 222,750 | 270,000 | ||||||
Exercise of warrants | $ 3,292 | 4,440,844 | $ 4,444,136 | |||||
Exercise of warrants, shares | 1,645,959 | |||||||
Balance at Jun. 30, 2022 | $ 60,410 | $ 18,138 | $ 84,096,866 | $ 291,443 | $ 7,864,267 | $ (4,152,577) | $ 297,429 | $ 88,475,976 |
Balance, shares at Jun. 30, 2022 | 30,205,259 | 9,069,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 3,016,132 | $ 1,299,028 | $ (8,536,925) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Amortization of right-of-use lease assets | 408,566 | 399,903 | 377,435 |
Depreciation and amortization | 3,458,347 | 3,106,082 | 2,264,957 |
(Gain) loss from disposition of property, plant and equipment | 327,921 | (85,899) | 1,036,304 |
Gain from disposition of a subsidiary | (5,162) | ||
Share-based compensation for services | 11,831 | 249,797 | 394,465 |
Change in inventory reserve | 117,703 | 1,165,044 | |
Change in bad debt allowance | (16,776) | 755,472 | |
Impairment of property, plant and equipment | 281,680 | ||
Impairment of long-term investment in equity investees | 177,750 | ||
Deferred tax (benefit) | (118,424) | (478,316) | 84,046 |
Accrued interest income | (1,320) | ||
Forgiveness of PPP loan | (73,300) | ||
Unrealized foreign exchange loss | 43,852 | 172,108 | |
Changes in operating assets and liabilities: | |||
Accounts receivables | 62,391 | (526,372) | 1,621,042 |
Inventories | 740,265 | (1,212,224) | 1,214,601 |
Prepayments and other current assets | 1,173,662 | 246,898 | (224,171) |
Accounts payables | 282,866 | 91,185 | (2,784,131) |
Advance from customers | (52,365) | 43,622 | (22,153) |
Taxes payable | (2,827,106) | 1,325,835 | (8,868) |
Accrued expenses and other liabilities | (137,457) | (619,179) | (36,955) |
Operating lease liabilities | (168,075) | (171,221) | (143,972) |
Net cash provided by (used in) operating activities | 6,160,458 | 3,752,232 | (2,212,271) |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (15,259,272) | (777,762) | (837,508) |
Proceeds from disposition of fixed assets | 22,213 | 184,760 | 38,661 |
Capital expenditures on construction-in-progress | (13,668,099) | (8,606,966) | |
Long-term investments in equity investees | (241,600) | (287,244) | |
Proceeds upon maturity (purchase) of short-term investments | 495,680 | 3,257,070 | 7,235,136 |
Net cash used in investing activities | (14,741,379) | (11,245,631) | (2,457,921) |
Cash flows from financing activities: | |||
Net proceeds from private placement | 19,124,920 | 6,611,432 | |
Capital contribution made by non-controlling shareholders | 104,190 | 595,818 | |
Net Proceeds from exercise of warrants | 4,444,136 | ||
Net Proceeds from exercise of options | 180,000 | ||
Proceeds from short-term bank loans | (944,446) | 349,771 | 5,211,000 |
Repayment of short-term bank loans | 804,000 | (5,075,325) | (2,889,000) |
Proceeds from long-term bank loan | 7,550,000 | 73,300 | |
Repayment of long-term bank loans | (796,416) | (381,133) | |
Proceeds from (repayment of) related party loans | (1,943,408) | 1,892,636 | 50,466 |
Net cash provided by financing activities | 20,868,786 | 11,051,571 | 3,041,584 |
Effect of exchange rate changes on cash | (617,747) | 110,709 | 345,329 |
Net increase (decrease) in cash | 11,670,118 | 3,668,881 | (1,283,279) |
Cash and restricted cash, beginning of year | 4,935,754 | 1,266,873 | 2,550,152 |
Cash and restricted cash, end of year | 16,605,872 | 4,935,754 | 1,266,873 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid (refunded) for income tax | 3,195 | (25,545) | 33,131 |
Cash paid for interest | 471,443 | 460,905 | 239,326 |
Non-Cash Investing Activities | |||
Right-of-assets obtained in exchange for operating lease obligations | 1,618,634 | ||
Transfer from construction-in-progress to fixed assets | 597,594 | 34,984,435 | 16,512,238 |
Additions to construction-in-progress through accounts payable and other payable | 10,528,918 | 3,269,263 | |
Transfer from prepayments to construction-in-progress | 99,771 | ||
Prepaid share-based compensation for services | 279,861 | ||
Transfer from accounts receivable to long-term investment | $ 302,000 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Dogness (International) Corporation (“Dogness” or the “Company”), is a company limited by shares established under the laws of the British Virgin Islands July 11, 2016 9,069,000 Reorganization A Reorganization of the legal structure was completed on January 9, 2017. The Reorganization involved the incorporation of Dogness, a BVI holding company; and Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”), a holding company established under the laws of the People’s Republic of China (“PRC”); and the transfer of Dogness (Hong Kong) Pet’s Products Co., Limited (“HK Dogness”), Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”), and Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”; collectively, the “Transferred Entities”) from the Controlling Shareholder to Dogness and Dongguan Dogness. Prior to the reorganization, the Transferred Entities’ equity interests were 100% controlled by the Controlling Shareholder. On November 24, 2016, the Controlling Shareholder transferred his 100 100 100 100 Since the Company and its wholly-owned subsidiaries are effectively controlled by the same Controlling Shareholder before and after the reorganization, they are considered under common control. The above-mentioned transactions were accounted for as a recapitalization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. On December 18, 2017, the Company completed its initial public offering (“IPO”) of 10,913,631 5.00 54.6 50.2 In January 2018, the Company formed a Delaware limited liability company, Dogness Group LLC (“Dogness Group”), with its operation focusing primarily on pet product sales in the U.S. In February 2018, Dogness Overseas Ltd (“Dogness Overseas”) was established in the British Virgin Islands as a holding company. Dogness Overseas owns all of the interests in Dogness Group. On March 16, 2018 (the “Acquisition Date”), the Company entered into a share purchase agreement to acquire 100 71 11.1 On July 6, 2018, Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) was incorporated under the laws of PRC in Guangzhou City of Guangdong Province in China with a total registered capital of RMB 80 11.9 58 42 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS (continued) On February 5, 2019, in order to expand into the Japanese market and expedite the development of new smart pet products, Dogness Japan Co. Ltd. (“Dogness Japan”) was incorporated in Japan. The Company invested $ 142,000 51 49 51 3.2 31,092 Immediately before the disposition, Dogness Japan’s total assets were $ 91,625 32,144 5,162 Dogness Pet Culture (Dongguan) Co., Ltd. (“Dogness Culture”) was incorporated on December 14, 2018 10 1.5 51.2 48.8 5.12 0.79 4.88 0.76 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The Company’s consolidated financial statements reflect the operating results of the following entities: SCHEDULE OF ENTITIES Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal Activities Dogness (International) Corporation (“Dogness” or the “Company”) July 11, 2016 BVI Parent, 100 % Holding Company Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”) March 10, 2009 Hong Kong 100 % Trading Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”) July 12, 2007 Hong Kong 100 % Trading Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”) October 26, 2016 Dongguan, China 100 % Holding Company Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”) May 15, 2009 Dongguan, China 100 % Development and manufacturing of pet leash products Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) July 9, 2009 Zhangzhou, China 100 % Manufacturing of pet leash products Dogness Overseas Ltd (“Dogness Overseas”) February 8, 2018 BVI 100 % Holding Company Dogness Group LLC (“Dogness Group”) January 23, 2018 Delaware, United States 100 % Pet products trading Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) July 6, 2018 Guangzhou, Chin 58 % Research and manufacturing of intelligent pet products Dogness Pet Culture (Dongguan) Co. Ltd. (“Dogness Culture”) December 14, 2018 Dongguan, Chin 51.2 % Developing and expanding pet food market Non-controlling interests As of June 30, 2022, non-controlling interests represent 42.0 % and 48.8 % non-controlling shareholders’ interests in Intelligence Guangzhou and Dogness Culture, respectively. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the operating results of the Company are presented on the face of the consolidated statements of comprehensive income (loss) as an allocation of the total income or loss between non-controlling interest holders and the shareholders of the Company. Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes 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 period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, inventories, advances to suppliers, useful lives of property, plant and equipment, intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, and realization of deferred tax assets. Actual results could differ from those estimates. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Short-term Investments The Company’s short-term investments consist of wealth management financial products purchased from PRC banks with maturities between one month to twelve months. The banks invest the Company’s fund in certain financial instruments including money market funds, bonds or mutual funds, with rates of return on these investments ranging from 2.6 % to 3.8 % per annum. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of comprehensive income (loss) over the contractual term of these investments. The Company had short-term investments of $ 52,255 549,895 1,385 48,058 243,661 Accounts Receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for uncollectible balances amounted to $ 6,872 26,272 Inventories, net Inventories are stated at net realizable value using the weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. Prepayment Prepayment primarily consists of advances to suppliers for purchasing of raw materials that have not been received, and prepayment to a landlord for lease of a piece of land in order to build a warehouse in the near future. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Useful life Buildings 10 50 Leasehold improvement Lesser of useful life and lease term Machinery equipment 5 10 Transportation vehicles 5 Office equipment and furniture 5 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of other comprehensive income (loss) in other income or expenses. Intangible Assets, net Intangible assets consist primarily of a customized software system purchased from a third-party vendor, used for accounting and production management and land use rights. Under PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Intangible assets are stated at cost less accumulated amortization. Customized software systems are amortized using the straight-line method over the estimated useful economic life of 10 50 Long-term Investments in Equity Investees On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 321 “Investments—Equity Securities” (“ASC 321”). In accordance with ASC 321, equity securities over which the Company has no significant influence (generally less than a 20 Nanjing Rootaya Intelligence Technology Co., Ltd. (“Nanjing Rootaya”) is an entity incorporated on March 25, 2015 in the PRC and is primarily engaged in development of smart pet products. In July 2018, the Company entered into an equity investment agreement with Nanjing Rootaya to invest RMB 1.25 186,625 10 90 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Long-term Investments in Equity Investees (continued) Dogness Network Technology Co., Ltd (“Dogness Network”) is an entity incorporated on November 17, 2017 in the PRC and is engaged in the development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Dogness Network to invest RMB 8.0 1,194,400 10 90 Linsun Smart Technology Co., Ltd (“Linsun”) is an entity incorporated on January 25, 2018 in the PRC and is engaged in development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Linsun to invest RMB 3.0 million ($ 447,900 ) for 13 % of the ownership interest in Linsun, with the remaining 87 % of the ownership interest owned by three unrelated shareholders. For the year ended June 30, 2022, the Company received dividends RMB 260,000 ($ 40,274 ) from Linsun. The purpose of entering into these equity investment agreements with Nanjing Rootaya, Dogness Network and Linsun was to establish cooperative business with these investees to jointly develop and distribute the Company’s intelligent smart pet products. The Company accounts for the above-mentioned investments using the measurement alternative in accordance with ASC 321. The Company records the cost method investments at historical cost and subsequently records any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees is evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Due to the fact that Nanjing Rootaya reported significant net loss and working capital deficit, and is unable to generate positive cash flow in the foreseeable future. A full impairment loss has been applied against this investment in fiscal 2020. For the Company’s investments in Dogness Network and Linsun, no material impairment indicator was noted because their operation results indicated net income and cash inflows. As of June 30, 2022 and 2021, the Company’s long-term investments in equity investees amounted to $ 1,642,300 and $ 1,703,900 , respectively. Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are 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 quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, short-term investments, accounts receivable, inventories, prepayments and other current assets, accounts payable, advance from customers, taxes payable, accrued expenses and other current liabilities, current portion of lease liabilities, and short-term bank loans approximate their fair values because of the short-term nature of these instruments. The Company’s long-term investments are accounted for using the measurement alternative in accordance with ASC 321, which also approximate their recorded values. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Long-lived assets impairment The Company reviews long-lived assets, including definitive-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. During the year ended June 30, 2020, the Company disposed approximately $ 1.2 million outdated and fully depreciated equipment and machinery (see Note 6). Given the Company’s net loss position in fiscal 2020, the Company further assessed that the expected future cash flow generated from certain machinery and equipment used to manufacture the Company’s low-end traditional pet products would not recover their carrying value, as a result, the Company recorded an additional impairment of $ 281,680 on these fixed assets for the year ended June 30, 2020. No impairment was recorded for the years ended June 30, 2022 and 2021. Leases The Company adopted ASU No. 2016-02—Leases (Topic 842) since July 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact our consolidated net earnings and cash flows. Rental income Rental revenues are recognized as earned in accordance with the terms of the respective lease agreement on a straight-line basis. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees and other fees are recognized as income when earned. Management reviews the tenant’s payment history and financial condition periodically in determining, in its judgment, whether any accrued rental income and unbilled rent receivable balances applicable to each specific property is collectable. Revenue Recognition On July 1, 2018, the Company adopted ASC 606 Revenue from Contracts with Customers, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (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 Revenue is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of contract terms occur with the transfer of title of the Company’s products to the customers. Net sale is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods to the wholesaler and retailers. The amount of consideration the Company expects to receive consists of the sales price adjusted for any incentives if applicable. Such incentives do not represent a standalone value and are accounted for as a reduction of revenue in accordance with ASC 606. For the years ended June 30, 2022, 2021 and 2020, the Company did not provide any sales incentives to its customers. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition (continued) Incidental promotional items that are immaterial in the context of the contract are recognized as expense. Fees charged to customers for shipping and handling are included in net sales and the related costs incurred by the Company are included in cost of goods sold. In applying judgment, the Company considered customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include any variable consideration. The Company’s revenue is primarily generated from the sales of pet products, including leashes, accessories, collars, harnesses and intelligent pet products, to wholesalers and retailers. Revenue is reported net of all value added taxes (“VAT”). The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. The Company also generates revenue by providing ribbon dyeing service and pet grooming services to customers. The Company utilizes its manufacturing capability and color dyeing technology to provide dyeing solutions to customers and apply dyes or pigments on ribbons made of textile materials such as fibers, yarns and fabrics to achieve customer desired color fastness and quality. The Company recognizes revenue at the point when dyeing solutions and related services are rendered, products after dyeing are delivered and accepted by the customers. The revenue from pet grooming services is recognized when the services are rendered. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of June 30, 2022 and 2021, other than accounts receivable and advances from customers, the Company had no other material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. Disaggregation of Revenues The Company disaggregates its revenue from contracts by product and service types and geographic areas, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the years ended June 30, 2022, 2021 and 2020 are disclosed in Note 15 of this consolidated financial statements. Research and development costs Research and development expenses include costs directly attributable to the conduct of research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. 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 income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded . Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2022, the years from fiscal 2020 to fiscal 2022 for the Company’s PRC subsidiaries remain open for statutory examination by PRC Tax authorities. For the Company’s Hong Kong subsidiaries, and U.S subsidiary, all tax years remain open for statutory examination by relevant tax authorities. Value added tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 1, 2018, VAT rate was lowered to 16%, and starting from April 1, 2019, VAT rate was further lowered to 13%), depending on the type of products sold . The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable or receivable net of payments in the accompanying consolidated financial statements. Further, when exporting goods, the exporter is entitled to some or all of the refund of the VAT paid or assessed. Since significant amount of the Company’s products are exported to the U.S. and Europe, the Company is eligible for VAT refunds when the Company completes all the required tax filing procedures. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Share-Based compensation The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Foreign Currency Translation The Company’s principal country of operations is the PRC. The financial position and results of the operations of HK Dogness, HK Jiasheng, Dongguan Dogness, Dongguan Jiasheng, Meijia, Intelligence Guangzhou and Dogness Culture are determined using RMB, the local currency, as the functional currency. Dogness Japan uses Japanese Yen as the functional currency, while Dogness Overseas and Dogness Group use U.S Dollar as their functional currency. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of comprehensive income (loss). The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATES June 30, 2022 June 30, 2021 June 30, 2020 Year-end spot rate US$1=RMB 6.6981 US$1=RMB 6.4566 US$1=JPY 111.1 US$1=RMB 7.0721 US$1=JPY 107.5 Average rate US$1=RMB 6.4554 US$1=RMB 6.6221 US$1=JPY 106.6 US$1=RMB 7.0323 US$1=JPY 107.5 Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currency. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported revenues, net income and cash flows. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments — Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after Dec. 15, 2019 for public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC. All other entities, ASU No. 2016-13 is effective for fiscal years beginning after Dec. 15, 2022. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of ASU 2019-12 does not have a material impact on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The adoption of ASU 2019-12 does not have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. As revised, ASC 310-20-35-33 requires that, for each reporting period, to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (i.e., the premium) should be amortized to the next call date, unless the guidance in A |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE As of June 30, 2022 As of June 30, 2021 Accounts receivable from third-party customers $ 1,656,041 $ 2,393,598 Less: allowance for doubtful accounts (6,872 ) (26,272 ) Total accounts receivable from third-party customers, net 1,649,169 2,367,326 Add: accounts receivable - related parties 1,094,855 515,193 Total accounts receivable, net $ 2,744,024 $ 2,882,519 For the years ended June 30, 2022, 2021 and 2020, the Company recorded a bad debt recovery of $ 16,776 , bad debt provision of $ Nil and $ 755,472 , respectively. Allowance for doubtful accounts amounted to $ 6,872 and $ 26,272 as of June 30, 2022 and 2021, respectively. Approximately RMB 7.5 1.1 67 In connection with the Company’s long-term investments in equity investees as disclosed in Note 3, the Company sold certain intelligent pet products to related parties Dogness Technology and Dogness Network. The outstanding accounts receivable from these related parties amounted to $ 1,094,855 as of June 30, 2022, of which $ 356,927 has been collected as of the date of this report (See Note 12). Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS As of June 30, 2022 As of June 30, 2021 Beginning balance $ 26,272 $ 23,982 Recovery (16,776 ) - Write off (2,366 ) - Foreign currency translation adjustments (258 ) 2,290 Ending balance $ 6,872 $ 26,272 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 4 – INVENTORIES, NET Inventories consisted of the following: SCHEDULE OF INVENTORY As of As of June 30, 2022 June 30, 2021 Raw materials $ 117,093 $ 218,090 Work in process 876,021 1,082,350 Finished goods 2,523,455 3,054,909 Inventory, gross 3,516,569 4,355,349 Less: inventory allowance (146,684 ) (152,186 ) Inventory, net $ 3,369,885 $ 4,203,163 Inventory includes raw materials, work in progress and finished goods. Finished goods include direct material costs, direct labor costs and manufacturing overhead. For the years ended June 30, 2022, 2021 and 2020, the Company recorded inventory markdown of $ Nil 117,703 1,165,044 During the year ended June 30, 2021, for certain obsolete, slow-moving and damaged fabric and leather raw materials and metal components or parts used in the manufacturing of the Company’s pet leash and other pet products, the Company disposed approximately $ 1.2 1,158,551 152,186 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of June 30, As of June 30, 2022 2021 Buildings $ 27,161,241 $ 28,128,416 Machinery and equipment 5,848,505 7,524,170 Office equipment and furniture 1,042,408 1,296,201 Automobiles 837,276 754,764 Leasehold improvements 44,384,670 41,095,980 Construction-in-progress (“CIP”) - 597,594 Total 79,274,100 79,397,125 Less: Accumulated depreciation (10,530,744 ) (9,214,249 ) Impairment of fixed assets (295,744 ) (306,837 ) Property, plant and equipment, net $ 68,447,612 $ 69,876,039 During the year ended June 30, 2020, the Company disposed approximately $ 1.2 1,036,304 281,680 No Depreciation expense was $ 3,375,875 3,025,686 2,189,863 6.3 5.4 0.6 The Company’s CIP primarily consisted of the following: The Company’s subsidiary Dongguan Jiasheng had a capital project to build new manufacturing and operating facilities, which include warehouse, workshops, office building, security gate, employee apartment building, electrical transformer station and exhibition hall, etc. The total budget is approximately RMB 263.5 39.3 261.5 39.0 2.0 0.3 The Company’s subsidiary Dogness Culture was also working on a project to decorate a pet themed retail store. Total cost is approximately RMB 2.2 million ($ 0.3 million). This project was fully completed during year ended June 30, 2021. As of June 30, 2022, the Company has paid approximately RMB 2.1 million ($ 0.3 million) for the project. As of June 30, 2022, future minimum capital expenditures on the Company’s construction-in-progress projects are estimated as follows: SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES Capital expenditure Capital expenditure Total 2023 $ 297,931 $ 15,071 $ 313,002 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 – PROPERTY, PLANT AND EQUIPMENT, NET (continued) Subsequently, from July 2022 to August 2022, the Company made payment of RMB 53,100 7,928 313,002 305,074 Capital expenditure Capital expenditure Total 2023 $ 290,003 $ 15,071 $ 305,074 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6 – INTANGIBLE ASSETS, NET Net intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of June 30, As of June 30, 2022 2021 Software $ 224,349 $ 232,764 Land use right 2,267,289 2,352,331 Less: accumulated amortization (428,221 ) (361,810 ) Intangible assets, net $ 2,063,417 $ 2,223,285 Amortization expense was $ 82,472 80,396 75,094 6.3 2.0 Estimated future amortization expense is as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE Twelve months ending June 30, Amortization expense 2023 $ 79,491 2024 67,473 2025 62,012 2026 61,366 Thereafter 1,793,075 Total $ 2,063,417 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | NOTE 7 – LEASES The Company has several operating leases for manufacturing facilities and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Rent expense for the years ended June 30, 2022, 2021 and 2020 was $ 477,268 487,763 562,894 Effective July 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated deficit as of July 1, 2019. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. Supplemental balance sheet information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION As of June 30, 2022 As of June 30, 2021 Right-of-use assets, net $ 4,589,678 $ 5,170,395 Operating lease liabilities - current $ 184,700 $ 171,803 Operating lease liabilities - non-current 901,351 1,123,060 Total operating lease liabilities $ 1,086,051 $ 1,294,863 The weighted average remaining lease terms was 13.78 The following is a schedule of maturities of lease liabilities are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Twelve months ending June 30, 2023 $ 241,248 2024 254,557 2025 254,992 2026 261,420 2027 233,689 Thereafter 2,276 Total future minimum lease payments 1,248,182 Less: imputed interest 162,131 Total $ 1,086,051 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
BANK LOANS
BANK LOANS | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 8 – BANK LOANS Short-term loans consisted of the following: SCHEDULE OF SHORT-TERM BANK LOANS As of June 30, As of June 30, 2022 2021 Cathay Bank Effective interest rate at 4.25 $ 564,000 $ 704,446 Total $ 564,000 $ 704,446 (1) On February 6, 2020, one of the Company’s U.S. subsidiaries, Dogness Group, obtained a line of credit from Cathay Bank, pursuant to which Dogness Group has the availability to borrow a maximum $ 1.2 As of June 30, 2022, the outstanding balance was $ 564,000 . The Company has extended the repayment date to February 2024 from the original due date of February 2022. Long-term loan consisted of the following: SCHEDULE OF LONG-TERM LOAN As of June 30, As of June 30, 2022 2021 Dongguan Rural Commercial Bank Effective interest rate at 6.15 6.55 6,320,534 7,354,024 Less: current portion of long-term loans (1,386,160 ) (796,416 ) Long-term loans $ 4,934,374 $ 6,557,608 On July 17, 2020, the Company entered into multiple loan agreements with Dongguan Rural Commercial Bank to borrow an aggregate of RMB 50 million ($ 7.5 million) of loans to support the working capital needs and the construction of the Company’s current CIP projects. The loans have tenure varying between three and eight years. The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points . The Company pledged the land use right of approximately $ 2.0 million and buildings of approximately $ 5.4 million from Meijia as collateral to secure total loans of RMB 30 million ($ 4.5 million). Mr. Silong Chen, the CEO of the Company, pledged personal property as collateral to secure the remaining loans of RMB 20 million ($ 3.0 million). Dongguan Dogness, Meijia and Mr. Silong Chen also provided guarantee for the loans. As of June 30, 2022, the outstanding balance was $ 6,320,534 . The Company further repaid RMB 2,370,129 ($ 353,860 ) subsequently. Interest expenses for the above-mentioned loans amounted to $ 471,443 460,905 239,326 The Company capitalized interest of $ 90,775 $ 145,620 Nil As of June 30, 2022, the Company’s short-term and long-term loans totaled approximately $ 6.9 SCHEDULE OF BANK LOANS REPAYMENT Twelve months ending June 30, Repayment 2023 $ 1,950,160 2024 3,200,187 2025 388,082 2026 413,984 2027 441,618 2028 471,065 2029 19,438 Total $ 6,884,534 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
TAXES
TAXES | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 9 – TAXES (a) Corporate Income Taxes (“CIT”) Dogness is incorporated in the BVI as an offshore holding company and is not subject to tax on income or capital gain under the laws of BVI. Under Hong Kong tax laws, subsidiaries in Hong Kong are subject to statutory income tax rate at 16.5 Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and Foreign Investment Enterprises (“FIEs”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. In October 2015, Dongguan Jiasheng, the Company’s main operating subsidiary in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% from 2015 to 2023 EIT is typically governed by the local tax authority in China. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate the local economy. The corporate income taxes for the six months ended December 31, 2021 and 2020 were reported at a reduced rate of 15 % as a result of Dongguan Jiasheng being approved as HNTE. The impact of the tax holidays noted above decreased foreign taxes by $ 100,210 , $ 117,514 and $ Nil for the years ended June 30, 2022, 2021 and 2020, respectively. The benefit of the tax holidays on net income (loss) per share (basic and diluted) was $ 0.00 , $ 0.00 and $ Nil for the years ended June 30, 2022, 2021 and 2020, respectively. As of June 30, 2022 all of the Company’s tax returns of its PRC subsidiaries, Hong Kong subsidiaries and U.S subsidiary remain open for statutory examination by relevant tax authorities. The following table reconciles the statutory rate to the Company’s effective tax: SCHEDULE OF RECONCILIATION EFFECTIVE TAX 2022 2021 2020 For the Years Ended June 30, 2022 2021 2020 Income tax expense computed based on PRC statutory rate $ 59,567 $ 485,121 $ (2,093,097 ) Effect of rate differential for Hong Kong and other outside PRC entities (223,665 ) (173,905 ) (24,016 ) Effect of PRC preferential tax rate 100,210 (117,514 ) 515,416 Change in valuation allowance 444,323 (223,729 ) 1,635,324 Surcharge on unpaid income tax - 669,650 - Income tax payable reserved (3,163,806 ) - - Permanent difference 5,503 30,030 130,910 Refund of prior years’ tax - (28,193 ) - Effective tax $ (2,777,868 ) $ 641,460 $ 164,537 The provision for income tax consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) 2022 2021 2020 For the Years Ended June 30, 2022 2021 2020 Current income tax (benefit) expense $ (2,659,444 ) $ 1,119,776 $ 25,423 Deferred income tax (benefit) expense (118,424 ) (478,316 ) 139,114 Total income tax (benefit) expense $ (2,777,868 ) $ 641,460 $ 164,537 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – TAXES (continued) The Company’s deferred tax assets consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of June 30, 2022 As of June 30, 2021 Deferred tax assets: Net operating losses $ 1,828,369 $ 1,223,699 Assets impairment reserve 451,538 471,634 Depreciation and others (45,537 ) 56,642 Valuation allowance (1,535,331 ) (1,146,317 ) Deferred tax assets, net $ 699,039 $ 605,658 (b) Taxes Payable The Company’s taxes payable consists of the following: SCHEDULE OF TAXES PAYABLE As of June 30, 2022 As of June 30, 2021 Corporate income tax payable $ 1,536,225 $ 4,256,487 Other tax payable 21,436 186,705 Total taxes payable $ 1,557,661 $ 4,443,192 The Company may be subject to challenges from various PRC taxing authorities regarding the amounts of taxes due, although the Company’s management believes the Company has paid or accrued for all taxes owed by the Company. As of June 30, 2022 and 2021, the Company had accrued (before adjustment) total income tax liabilities of approximately $ 4.6 million and $ 4.3 million, respectively. According to PRC taxation regulation and administrative practice and procedures, the statute of limitation on tax authority’s audit or examination of previously filed tax returns expires three years from the date they were filed. The Company also obtained a written statement from the local tax authority that no additional taxes are due as of June 30, 2022. Based on these facts, the Company reversed the accrued tax liabilities in the total amount of approximately $ 3.0 million (or RMB 20,424,826 ) relating to the tax liabilities accrued for the period from fiscal 2016 to fiscal 2018, resulting in the decrease of accrued income tax liabilities from approximately $ 4.6 million to approximately $ 1.5 million as of June 30, 2022. The Company continues to discuss with the local tax authority to try to settle the remaining tax liabilities as soon as practicable, mostly related to its unpaid income tax and business tax. Due to uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with the interest and penalties on these unpaid tax balances. The final outcome of this tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of status of limitation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES Contingencies The Company may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on the Company’s consolidated financial position or results of operations or liquidity. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10 – COMMITMENTS AND CONTINGENCIES (continued) Capital Investment Obligation Dogness Intelligence Technology Co., Ltd. On July 6, 2018, a new entity called Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”), was incorporated under the laws of the People’s Republic of China in Guangzhou City, Guangdong Province, with a total registered capital of RMB 80 11.9 46.4 6.9 58 58 0 Zhangzhou Meijia Metal Product Ltd. Meijia was incorporated under the laws of the People’s Republic of China with a total registered capital of RMB 60.0 9.0 42.7 6.4 As of the date of this report, pursuant to the articles of incorporation of Meijia, the Company is obligated to contribute the remaining RMB 17.3 2.6 Dongguan Jiasheng Enterprise Ltd. In December 2020, Dongguan Jiasheng amended its Article of Incorporation to increase its registered capital from RMB 50.0 7.5 55.0 8.2 55.0 8.2 Dogness Network As disclosed in Note 3 above, the Company is required to invest RMB 8.0 1.2 10 8.0 1.2 Capital Expenditure Commitment In connection with the Company’s construction projects on Dogness Culture and Dongguan Jiasheng, from July 2022 to August 2022, the Company made payments of RMB 53,100 ($ 7,928 ) on these projects. As a result, the future minimum capital expenditure commitment on these projects have decreased from $ 313,002 as of June 30, 2022 to $ 305,074 as of August 31, 2022 (see Note 5). DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS The relationship of related parties is summarized as follow: SCHEDULE OF RELATIONSHIP OF RELATED PARTIES Name of Related Party Relationship to the Company Silong Chen Chief Executive Officer; Chairman of the Board of Directors Junqiang Chen Relative of Mr. Silong Chen Linsun Smart Technology Co., Ltd (“Linsun”) Equity investee - 10 Dogness Network Technology Co., Ltd (“Dogness Network”) Equity investee - 13 Dogness Technology Co., Ltd (“Dogness Technology”) The legal representative is Junqiang Chen, the relative of Mr. Silong Chen (1) Due from related party Due from related parties consist of mainly rent receivables from the following: SCHEDULE OF DUE FROM RELATED PARTIES As of June 30, As of June 30, 2022 2021 Linsun $ 77,964 $ 32,118 Dogness Network 7,340 410 Dogness Technology 20,099 - Total $ 105,403 $ 32,528 (2) Due to related parties Due to related parties consist of the following: SCHEDULE OF DUE TO RELATED PARTIES As of June 30, As of June 30, 2022 2021 Mr. Silong Chen $ 130,468 $ 2,001,940 Total $ 130,468 $ 2,001,940 Mr. Silong Chen periodically provides working capital loans to support the Company’s operations when needed. Such advances are non-interest bearing and due on demand. (3) Loan guarantee provided by related parties In connection with the Company’s bank borrowings, Mr. Silong Chen pledged his personal assets as collateral and signed guarantee agreements to provide guarantee to the Company’s long-term bank loans. (See Note 8). (4) Sales to related parties Revenue from related parties consisted of the following: SCHEDULE OF REVENUE FROM RELATED PARTIES For the Years Ended June 30, Name 2022 2021 2020 Linsun $ - $ - $ 72,987 Dogness Network 1,806,732 1,207,686 836,664 Dogness Technology 405,847 - - Total $ 2,212,579 $ 1,207,686 $ 909,651 Cost of revenue associated with the sales to these related parties amounted to $ 1,301,180 663,742 633,132 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 11 – RELATED PARTY TRANSACTIONS (continued) (5) Accounts receivable from related party Accounts receivable from related party consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES As of June 30, As of June 30, 2022 2021 Accounts receivable - related party: Dogness Network $ 1,036,476 $ 515,193 Dogness Technology 58,379 - Total $ 1,094,855 $ 515,193 As of June 30, 2022, total accounts receivable from related parties amounted to $ 1,094,855 356,927 (6) Accounts payable to related parties Accounts payables to related parties consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES As of June 30, As of June 30, 2022 2021 Accounts payable - related parties: Linsun $ 393,625 $ 350,199 Total $ 393,625 $ 350,199 (7) Purchase from related parties During the years ended June 30, 2022 and 2021, the Company purchased certain pet product components and parts, such as smart pet water and food feeding devices from Linsun. For the year ended June 30, 2020, the Company also purchased from Dogness Network. Total purchases from Linsun and Dogness Network amounted to $ 3,199,833 3,015,442 2,191,458 (8) Lease arrangement with related parties On January 2, 2020, Dongguan Jiasheng signed a lease agreement with Linsun, which enabled Linsun to lease part of Dongguan Jiasheng’s new production facilities of approximately 8,460 ten years Annual lease payment from Linsun amounted to approximately $ 250,000 15 462,210 300,511 89,411 On August 1, 2020, Dongguan Jiasheng signed a lease agreement with Dogness Network, which enabled Dogness Network to lease part of Dongguan Jiasheng’s new production facilities of approximately 580 ten years Annual lease payment from Dogness Network amounted to approximately $ 37,000 15 78,251 52,796 Nil On August 1, 2020, Dongguan Jiasheng signed a lease agreement with Dogness Technology, which enabled Dogness Technology to lease part of Dongguan Jiasheng’s new production facilities of approximately 50 square meters for ten years . Annual lease payment from Dogness Technology amounted to $ 1,866 . For the years ended June 30, 2022, 2021 and 2020, the Company recorded rent income of $ 1,706 , $ 1,661 and $ Nil as other income through leasing the manufacturing facilities to Dogness Technology. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 12 – EQUITY Common Shares Dogness was established under the laws of BVI on July 11, 2016. The original authorized number of common shares was 15,000,000 0.002 100,000,000 0.002 15,000,000 Initial Public Offering On December 18, 2017, the Company completed its initial public offering (“IPO”) of 10,913,631 5.00 54.6 50.2 Public Offering Warrants In connection with and upon closing of the IPO on December 18, 2017, the Company agreed to issue 500,000 500,000 5 These warrants carry a term of three years 6.25 Equity Financing January 2021 equity financing On January 20, 2021, the Company closed a securities purchase agreement with certain institutional investors for the sale of 3,455,130 2.15 6.6 In addition, warrants carry a term of three years to purchase an aggregate of 1,727,565 common shares for $ 2.70 per share were issued to the investors and warrants to purchase an aggregate of 276,410 common shares for $ 2.70 per share were issued as commission to the placement agent in the offering. If fully exercised, the Company would receive aggregate gross proceeds from the warrants of approximately $ 5.4 million. These warrants were recorded at their fair value on the date of grant as a component of shareholders’ equity. 1,727,565 warrants to the investors were exercised during year ended June 30, 2022. July 2021 equity financing On July 19, 2021, the Company closed a securities purchase agreement with certain institutional investors for the sale of 2,178,120 Class A common shares in a registered offering at the price of $ 1.82 per common share. After payment of expenses, the Company received approximately $ 3.5 million in net proceeds from the sale of the common shares. Additionally, The Company also issued warrants to purchase 174,249 common shares to the placement agent exercisable at $ 1.82 per share with expiration date on July 15, 2024. No warrants were exercised during year ended June 30, 2022. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 – EQUITY (continued) Equity Financing (continued) February 2022 equity financing On February 24, 2022, the Company closed a securities purchase agreement with certain institutional investors for the sale of 1,966,251 2.88 4.7 June 2022 equity financing On June 3, 2022, the Company closed a securities purchase agreement with certain institutional investors for the sale of 3,636,365 Class A common shares in a registered offering at the price of $ 3.30 per common share. After payment of expenses, the Company received approximately $ 10.9 million in net proceeds from the sale of the common shares. Additionally, The Company also issued warrants to purchase 2,181,81 common shares to the investors at $ 4.20 per share with expiration date on June 3, 2024. No warrants were exercised during year ended June 30, 2022. Common Shares Issued for Service On April 15, 2021, the Company signed a consulting agreement with Real Miracle Investments Limited (“Real Miracle’) to provide strategic business and marketing consulting services to the Company for nine months from April 15, 2021. As the consideration for the service, Real Miracle is entitled to receive 250,000 387,500 As of June 30, 2022, the Company had an aggregate of 39,274,259 30,205,259 9,069,000 29,624,814 20,555,814 9,069,000 As of June 30, 2022, 2,632,478 3.88 2.72 Statutory Reserve The Company’s subsidiaries located in mainland China are required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC regulations until the reserve is equal to 50% of the entity’s registered capital Nil 99,727 Nil 291,443 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2022 | |
Income (loss) earnings per share | |
EARNINGS PER SHARE | NOTE 13 – EARNINGS PER SHARE For the years ended June 30, 2022, the effect of potential shares of common stock from the unexercised options was dilutive since the exercise prices for the options were lower than the average market price. As a result, a total of 301,975 For the years ended June 30, 2021, the effect of potential shares of common stock from the unexercised options was dilutive since the exercise prices for the options were lower than the average market price. As a result, a total of 55,444 For the years ended June 30, 2020, potential shares of common stock from the unexercised options and unexercised options are excluded from diluted net (loss) per share as such amounts are anti-dilutive. The following table presents a reconciliation of basic and diluted net income (loss) per share: SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED 2022 2021 2020 For the Years Ended June 30, 2022 2021 2020 Net income (loss) attributable to the Company $ 3,235,559 $ 1,512,364 $ (8,441,559 ) Weighted average number of common shares outstanding - Basic 33,711,659 27,499,367 25,913,631 Dilutive securities -unexercised warrants and options 301,975 55,444 - Weighted average number of common shares outstanding – diluted 34,013,634 27,554,811 25,913,631 Earnings (loss) per share - Basic $ 0.10 $ 0.05 $ (0.33 ) Earnings (loss) per share – Diluted $ 0.10 $ 0.05 $ (0.33 ) |
OPTIONS
OPTIONS | 12 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OPTIONS | NOTE 14 – OPTIONS On November 10, 2017, the Company signed a consulting agreement to engage TJ Capital Management, L.P. (“TJ Capital”) to provide strategic consulting services to the Company in matters relating to investor relations, capital markets and shareholder value creation strategy. As the part of the agreement, TJ Capital was granted options to purchase 160,000 1.50 60,000 7 50,000 10 50,000 15 On May 23, 2019, the Company signed a service termination agreement with TJ Capital to terminate the consulting agreement previously entered on November 10, 2017. As a result, the options granted under the original service agreement were also cancelled. No share-based compensation expenses were accrued up to the date of the termination of this agreement, because TJ Capital had not provided the services. On July 30, 2019, the Company negotiated and signed a new Corporate and Executive Service Agreement with TJ Capital to provide strategic consulting services to the Company relating to services such as investor relations, capital markets and shareholder value creation strategy. The consulting service period is for two years, unless sooner terminated by either party or extended by the agreement of both parties. Pursuant to the agreement, as the compensation for the services, TJ Capital will be granted options to purchase 160,000 1.50 6,667 284,300 2.90 1.85 2 1.50 77.0 Nil DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 14 – OPTIONS (continued) Pursuant to the consulting agreement signed between TJ Capital and the Company, TJ Capital opted to exercise 10,000 6,053 60,000 60,000 10,000 36,440 41,928 24,382 On May 28, 2017, the Company signed an employment agreement with Dr. Yunhao Chen, the Chief Financial Officer of the Company. As part of the compensation, the Company agreed to grant Ms. Chen options to purchase up to 120,000 1.50 5,000 The aggregate fair value of the options granted to Dr. Yunhao Chen, the CFO, was $ 440,840 . The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying Class A common shares of $ 5.00 ; risk free rate of 1.84 %; expected term of 2 years; exercise price of the options of $ 1.50 ; volatility of 69.5 %; and expected future dividends of $ Nil . On January 18, Dr. Yunhao Chen opted to exercise 120,000 shares options at the exercise price of $ 1.50 and the Company issued 120,000 common shares to Dr. Yunhao Chen. On May 28, 2017, the Company signed an employment agreement with Mr. Silong Chen, the Chief Executive Officer of the Company. As the part of the compensation, the Company agrees to grant Mr. Chen options to purchase up to 360,000 1.50 10,000 140,000 The aggregate fair value of the options granted to Mr. Silong Chen was $ 1,385,500 Black-Scholes pricing model 5.00 1.94 3 1.50 74.7 Nil no 220,000 The Company recorded $ 11,831 529,658 394,465 The following table summarized the Company’s share option activity: SCHEDULE OF SHARE OPTION ACTIVITY Number of Weighted Average Weighted Average Remaining Life in Years Outstanding June 30, 2019 480,000 $ 1.50 1.22 Exercisable, June 30, 2019 270,000 $ 1.50 1.14 Granted 160,000 - - Cancelled (140,000 ) - - Exercised - - - Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Granted - - - Cancelled - - - Exercised (10,000 ) - - Outstanding June 30, 2021 490,000 $ 1.50 0.03 Exercisable, June 30, 2021 483,341 $ 1.50 0.03 Outstanding June 30, 2021 490,000 $ 1.50 0.03 Exercisable, June 30, 2021 483,341 $ 1.50 0.03 Granted - - - Cancelled - - - Exercised (270,000 ) - - Outstanding June 30, 2022 220,000 $ 1.50 - Exercisable, June 30, 2022 220,000 $ 1.50 - DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SEGMENT
SEGMENT | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT | NOTE 15 – SEGMENT An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment. The management of the Company concludes that it has only one Revenue by products and services The summary of total revenues by product and service categories consisted of the following: SCHEDULE OF REVENUES BY PRODUCT CATEGORIES For the Years Ended June 30, Products 2022 2021 2020 Traditional pet products $ 11,433,159 $ 14,331,492 $ 13,208,764 Intelligent pet products 13,492,076 7,801,070 4,328,918 Climbing hooks and others 1,761,341 1,340,686 1,633,676 Total revenue from product sales 26,686,576 23,473,248 19,171,358 Services: Dyeing services 342,561 817,145 - Other services 66,060 29,728 - Total revenue from services 408,621 846,873 - Total revenue $ 27,095,197 $ 24,320,121 $ 19,171,358 Revenue by geographic area Geographic information about the revenues, which are classified based on customers, is set out as follows: SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION For the Years Ended June 30, Geographic location 2022 2021 2020 Sales to international markets $ 14,542,323 $ 10,627,253 $ 9,399,228 Sales in China domestic market 12,552,874 13,692,868 9,772,130 Total revenue $ 27,095,197 $ 24,320,121 $ 19,171,358 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND CREDIT RISK | NOTE 16 – CONCENTRATIONS AND CREDIT RISK A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to effect the remittance. As of June 30, 2022, and 2021, $ 423,172 1,118,118 As of June 30, 2022, two customers aggregately accounted for 57.4 37.7 19.7 45.2 17.7 14.5 13.0 As of June 30, 2022 and 2021, one related party supplier, Linsun, accounted for 27.6 29.2 For the years ended June 30, 2022, 2021 and 2020, sales to the customers outside of China accounted for 53.7 43.7 49.0 23.4 6.7 6.7 5.7 32.0 9.1 6.9 27.6 6.5 4.4 For the year ended June 30, 2022, one related party Linsun accounted for 30.9 % of the Company’s total raw materials purchases. For the year ended June 30, 2021, one related party Linsun accounted for 26.9 % of the Company’s total raw materials purchases. For the year ended June 30, 2020, two suppliers accounted for 35.1 % of the Company’s total raw materials purchases, with related party supplier Linsun and a third-party supplier accounting for 23.3 % and 11.8 % of the Company’s total raw material purchases, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS Lease agreement On August 30 2022, Dongguan Jiasheng signed a lease agreement with Dongguan Yuepeng Property Management Co., Ltd to lease logistics center of 13,600 81,000 15 Disposition of subsidiary Due to the fact that Intelligence Guangzhou has no business activities since the incorporation and Dongguan Jiasheng has not made the capital contribution, in August 2022, the Board approved to sell the Company’s 58 The Company has evaluated subsequent events through September 30, 2022, the date these consolidated financial statements were available for issuance. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The Company’s consolidated financial statements reflect the operating results of the following entities: SCHEDULE OF ENTITIES Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal Activities Dogness (International) Corporation (“Dogness” or the “Company”) July 11, 2016 BVI Parent, 100 % Holding Company Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”) March 10, 2009 Hong Kong 100 % Trading Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”) July 12, 2007 Hong Kong 100 % Trading Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”) October 26, 2016 Dongguan, China 100 % Holding Company Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”) May 15, 2009 Dongguan, China 100 % Development and manufacturing of pet leash products Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) July 9, 2009 Zhangzhou, China 100 % Manufacturing of pet leash products Dogness Overseas Ltd (“Dogness Overseas”) February 8, 2018 BVI 100 % Holding Company Dogness Group LLC (“Dogness Group”) January 23, 2018 Delaware, United States 100 % Pet products trading Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) July 6, 2018 Guangzhou, Chin 58 % Research and manufacturing of intelligent pet products Dogness Pet Culture (Dongguan) Co. Ltd. (“Dogness Culture”) December 14, 2018 Dongguan, Chin 51.2 % Developing and expanding pet food market |
Non-controlling interests | Non-controlling interests As of June 30, 2022, non-controlling interests represent 42.0 % and 48.8 % non-controlling shareholders’ interests in Intelligence Guangzhou and Dogness Culture, respectively. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the operating results of the Company are presented on the face of the consolidated statements of comprehensive income (loss) as an allocation of the total income or loss between non-controlling interest holders and the shareholders of the Company. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes 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 period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, inventories, advances to suppliers, useful lives of property, plant and equipment, intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, and realization of deferred tax assets. Actual results could differ from those estimates. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Cash | Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Short-term Investments | Short-term Investments The Company’s short-term investments consist of wealth management financial products purchased from PRC banks with maturities between one month to twelve months. The banks invest the Company’s fund in certain financial instruments including money market funds, bonds or mutual funds, with rates of return on these investments ranging from 2.6 % to 3.8 % per annum. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of comprehensive income (loss) over the contractual term of these investments. The Company had short-term investments of $ 52,255 549,895 1,385 48,058 243,661 |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for uncollectible balances amounted to $ 6,872 26,272 |
Inventories, net | Inventories, net Inventories are stated at net realizable value using the weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. |
Prepayment | Prepayment Prepayment primarily consists of advances to suppliers for purchasing of raw materials that have not been received, and prepayment to a landlord for lease of a piece of land in order to build a warehouse in the near future. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Useful life Buildings 10 50 Leasehold improvement Lesser of useful life and lease term Machinery equipment 5 10 Transportation vehicles 5 Office equipment and furniture 5 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of other comprehensive income (loss) in other income or expenses. |
Intangible Assets, net | Intangible Assets, net Intangible assets consist primarily of a customized software system purchased from a third-party vendor, used for accounting and production management and land use rights. Under PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Intangible assets are stated at cost less accumulated amortization. Customized software systems are amortized using the straight-line method over the estimated useful economic life of 10 50 |
Long-term Investments in Equity Investees | Long-term Investments in Equity Investees On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 321 “Investments—Equity Securities” (“ASC 321”). In accordance with ASC 321, equity securities over which the Company has no significant influence (generally less than a 20 Nanjing Rootaya Intelligence Technology Co., Ltd. (“Nanjing Rootaya”) is an entity incorporated on March 25, 2015 in the PRC and is primarily engaged in development of smart pet products. In July 2018, the Company entered into an equity investment agreement with Nanjing Rootaya to invest RMB 1.25 186,625 10 90 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Long-term Investments in Equity Investees (continued) Dogness Network Technology Co., Ltd (“Dogness Network”) is an entity incorporated on November 17, 2017 in the PRC and is engaged in the development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Dogness Network to invest RMB 8.0 1,194,400 10 90 Linsun Smart Technology Co., Ltd (“Linsun”) is an entity incorporated on January 25, 2018 in the PRC and is engaged in development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Linsun to invest RMB 3.0 million ($ 447,900 ) for 13 % of the ownership interest in Linsun, with the remaining 87 % of the ownership interest owned by three unrelated shareholders. For the year ended June 30, 2022, the Company received dividends RMB 260,000 ($ 40,274 ) from Linsun. The purpose of entering into these equity investment agreements with Nanjing Rootaya, Dogness Network and Linsun was to establish cooperative business with these investees to jointly develop and distribute the Company’s intelligent smart pet products. The Company accounts for the above-mentioned investments using the measurement alternative in accordance with ASC 321. The Company records the cost method investments at historical cost and subsequently records any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees is evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Due to the fact that Nanjing Rootaya reported significant net loss and working capital deficit, and is unable to generate positive cash flow in the foreseeable future. A full impairment loss has been applied against this investment in fiscal 2020. For the Company’s investments in Dogness Network and Linsun, no material impairment indicator was noted because their operation results indicated net income and cash inflows. As of June 30, 2022 and 2021, the Company’s long-term investments in equity investees amounted to $ 1,642,300 and $ 1,703,900 , respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are 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 quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, short-term investments, accounts receivable, inventories, prepayments and other current assets, accounts payable, advance from customers, taxes payable, accrued expenses and other current liabilities, current portion of lease liabilities, and short-term bank loans approximate their fair values because of the short-term nature of these instruments. The Company’s long-term investments are accounted for using the measurement alternative in accordance with ASC 321, which also approximate their recorded values. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Long-lived assets impairment | Long-lived assets impairment The Company reviews long-lived assets, including definitive-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. During the year ended June 30, 2020, the Company disposed approximately $ 1.2 million outdated and fully depreciated equipment and machinery (see Note 6). Given the Company’s net loss position in fiscal 2020, the Company further assessed that the expected future cash flow generated from certain machinery and equipment used to manufacture the Company’s low-end traditional pet products would not recover their carrying value, as a result, the Company recorded an additional impairment of $ 281,680 on these fixed assets for the year ended June 30, 2020. No impairment was recorded for the years ended June 30, 2022 and 2021. |
Leases | Leases The Company adopted ASU No. 2016-02—Leases (Topic 842) since July 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact our consolidated net earnings and cash flows. |
Rental income | Rental income Rental revenues are recognized as earned in accordance with the terms of the respective lease agreement on a straight-line basis. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees and other fees are recognized as income when earned. Management reviews the tenant’s payment history and financial condition periodically in determining, in its judgment, whether any accrued rental income and unbilled rent receivable balances applicable to each specific property is collectable. |
Revenue Recognition | Revenue Recognition On July 1, 2018, the Company adopted ASC 606 Revenue from Contracts with Customers, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (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 Revenue is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of contract terms occur with the transfer of title of the Company’s products to the customers. Net sale is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods to the wholesaler and retailers. The amount of consideration the Company expects to receive consists of the sales price adjusted for any incentives if applicable. Such incentives do not represent a standalone value and are accounted for as a reduction of revenue in accordance with ASC 606. For the years ended June 30, 2022, 2021 and 2020, the Company did not provide any sales incentives to its customers. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition (continued) Incidental promotional items that are immaterial in the context of the contract are recognized as expense. Fees charged to customers for shipping and handling are included in net sales and the related costs incurred by the Company are included in cost of goods sold. In applying judgment, the Company considered customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include any variable consideration. The Company’s revenue is primarily generated from the sales of pet products, including leashes, accessories, collars, harnesses and intelligent pet products, to wholesalers and retailers. Revenue is reported net of all value added taxes (“VAT”). The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. The Company also generates revenue by providing ribbon dyeing service and pet grooming services to customers. The Company utilizes its manufacturing capability and color dyeing technology to provide dyeing solutions to customers and apply dyes or pigments on ribbons made of textile materials such as fibers, yarns and fabrics to achieve customer desired color fastness and quality. The Company recognizes revenue at the point when dyeing solutions and related services are rendered, products after dyeing are delivered and accepted by the customers. The revenue from pet grooming services is recognized when the services are rendered. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of June 30, 2022 and 2021, other than accounts receivable and advances from customers, the Company had no other material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. Disaggregation of Revenues The Company disaggregates its revenue from contracts by product and service types and geographic areas, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the years ended June 30, 2022, 2021 and 2020 are disclosed in Note 15 of this consolidated financial statements. |
Research and development costs | Research and development costs Research and development expenses include costs directly attributable to the conduct of research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Income Taxes | Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred income taxes assets and liabilities are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. 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 income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded . Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2022, the years from fiscal 2020 to fiscal 2022 for the Company’s PRC subsidiaries remain open for statutory examination by PRC Tax authorities. For the Company’s Hong Kong subsidiaries, and U.S subsidiary, all tax years remain open for statutory examination by relevant tax authorities. |
Value added tax (“VAT”) | Value added tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 1, 2018, VAT rate was lowered to 16%, and starting from April 1, 2019, VAT rate was further lowered to 13%), depending on the type of products sold . The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable or receivable net of payments in the accompanying consolidated financial statements. Further, when exporting goods, the exporter is entitled to some or all of the refund of the VAT paid or assessed. Since significant amount of the Company’s products are exported to the U.S. and Europe, the Company is eligible for VAT refunds when the Company completes all the required tax filing procedures. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Earnings per Share | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Share-Based compensation | Share-Based compensation The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee share-based awards. For employee share-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Foreign Currency Translation | Foreign Currency Translation The Company’s principal country of operations is the PRC. The financial position and results of the operations of HK Dogness, HK Jiasheng, Dongguan Dogness, Dongguan Jiasheng, Meijia, Intelligence Guangzhou and Dogness Culture are determined using RMB, the local currency, as the functional currency. Dogness Japan uses Japanese Yen as the functional currency, while Dogness Overseas and Dogness Group use U.S Dollar as their functional currency. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of comprehensive income (loss). The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATES June 30, 2022 June 30, 2021 June 30, 2020 Year-end spot rate US$1=RMB 6.6981 US$1=RMB 6.4566 US$1=JPY 111.1 US$1=RMB 7.0721 US$1=JPY 107.5 Average rate US$1=RMB 6.4554 US$1=RMB 6.6221 US$1=JPY 106.6 US$1=RMB 7.0323 US$1=JPY 107.5 |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currency. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported revenues, net income and cash flows. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments — Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after Dec. 15, 2019 for public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC. All other entities, ASU No. 2016-13 is effective for fiscal years beginning after Dec. 15, 2022. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of ASU 2019-12 does not have a material impact on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The adoption of ASU 2019-12 does not have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. As revised, ASC 310-20-35-33 requires that, for each reporting period, to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (i.e., the premium) should be amortized to the next call date, unless the guidance in ASC 310-20-35-26 is applied to consider estimated prepayments. For purposes of this guidance, the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. If there is no remaining premium or if there are no further call dates, the entity should reset the effective yield using the payment terms of the debt security. For public business entities, ASU 2020-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. For all other entities, ASU 2020-08 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the effect of adopting this ASU on the Company’s financial statements. In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial statements |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ENTITIES | The Company’s consolidated financial statements reflect the operating results of the following entities: SCHEDULE OF ENTITIES Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal Activities Dogness (International) Corporation (“Dogness” or the “Company”) July 11, 2016 BVI Parent, 100 % Holding Company Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”) March 10, 2009 Hong Kong 100 % Trading Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”) July 12, 2007 Hong Kong 100 % Trading Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”) October 26, 2016 Dongguan, China 100 % Holding Company Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”) May 15, 2009 Dongguan, China 100 % Development and manufacturing of pet leash products Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) July 9, 2009 Zhangzhou, China 100 % Manufacturing of pet leash products Dogness Overseas Ltd (“Dogness Overseas”) February 8, 2018 BVI 100 % Holding Company Dogness Group LLC (“Dogness Group”) January 23, 2018 Delaware, United States 100 % Pet products trading Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) July 6, 2018 Guangzhou, Chin 58 % Research and manufacturing of intelligent pet products Dogness Pet Culture (Dongguan) Co. Ltd. (“Dogness Culture”) December 14, 2018 Dongguan, Chin 51.2 % Developing and expanding pet food market |
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE | SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Useful life Buildings 10 50 Leasehold improvement Lesser of useful life and lease term Machinery equipment 5 10 Transportation vehicles 5 Office equipment and furniture 5 |
SCHEDULE OF CURRENCY EXCHANGE RATES | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATES June 30, 2022 June 30, 2021 June 30, 2020 Year-end spot rate US$1=RMB 6.6981 US$1=RMB 6.4566 US$1=JPY 111.1 US$1=RMB 7.0721 US$1=JPY 107.5 Average rate US$1=RMB 6.4554 US$1=RMB 6.6221 US$1=JPY 106.6 US$1=RMB 7.0323 US$1=JPY 107.5 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE As of June 30, 2022 As of June 30, 2021 Accounts receivable from third-party customers $ 1,656,041 $ 2,393,598 Less: allowance for doubtful accounts (6,872 ) (26,272 ) Total accounts receivable from third-party customers, net 1,649,169 2,367,326 Add: accounts receivable - related parties 1,094,855 515,193 Total accounts receivable, net $ 2,744,024 $ 2,882,519 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS As of June 30, 2022 As of June 30, 2021 Beginning balance $ 26,272 $ 23,982 Recovery (16,776 ) - Write off (2,366 ) - Foreign currency translation adjustments (258 ) 2,290 Ending balance $ 6,872 $ 26,272 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventories consisted of the following: SCHEDULE OF INVENTORY As of As of June 30, 2022 June 30, 2021 Raw materials $ 117,093 $ 218,090 Work in process 876,021 1,082,350 Finished goods 2,523,455 3,054,909 Inventory, gross 3,516,569 4,355,349 Less: inventory allowance (146,684 ) (152,186 ) Inventory, net $ 3,369,885 $ 4,203,163 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT, NET | Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of June 30, As of June 30, 2022 2021 Buildings $ 27,161,241 $ 28,128,416 Machinery and equipment 5,848,505 7,524,170 Office equipment and furniture 1,042,408 1,296,201 Automobiles 837,276 754,764 Leasehold improvements 44,384,670 41,095,980 Construction-in-progress (“CIP”) - 597,594 Total 79,274,100 79,397,125 Less: Accumulated depreciation (10,530,744 ) (9,214,249 ) Impairment of fixed assets (295,744 ) (306,837 ) Property, plant and equipment, net $ 68,447,612 $ 69,876,039 |
SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES | As of June 30, 2022, future minimum capital expenditures on the Company’s construction-in-progress projects are estimated as follows: SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES Capital expenditure Capital expenditure Total 2023 $ 297,931 $ 15,071 $ 313,002 Capital expenditure Capital expenditure Total 2023 $ 290,003 $ 15,071 $ 305,074 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS, NET | Net intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of June 30, As of June 30, 2022 2021 Software $ 224,349 $ 232,764 Land use right 2,267,289 2,352,331 Less: accumulated amortization (428,221 ) (361,810 ) Intangible assets, net $ 2,063,417 $ 2,223,285 |
SCHEDULE OF FUTURE AMORTIZATION EXPENSE | Estimated future amortization expense is as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE Twelve months ending June 30, Amortization expense 2023 $ 79,491 2024 67,473 2025 62,012 2026 61,366 Thereafter 1,793,075 Total $ 2,063,417 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION | Supplemental balance sheet information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION As of June 30, 2022 As of June 30, 2021 Right-of-use assets, net $ 4,589,678 $ 5,170,395 Operating lease liabilities - current $ 184,700 $ 171,803 Operating lease liabilities - non-current 901,351 1,123,060 Total operating lease liabilities $ 1,086,051 $ 1,294,863 |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | The following is a schedule of maturities of lease liabilities are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Twelve months ending June 30, 2023 $ 241,248 2024 254,557 2025 254,992 2026 261,420 2027 233,689 Thereafter 2,276 Total future minimum lease payments 1,248,182 Less: imputed interest 162,131 Total $ 1,086,051 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM BANK LOANS | Short-term loans consisted of the following: SCHEDULE OF SHORT-TERM BANK LOANS As of June 30, As of June 30, 2022 2021 Cathay Bank Effective interest rate at 4.25 $ 564,000 $ 704,446 Total $ 564,000 $ 704,446 (1) On February 6, 2020, one of the Company’s U.S. subsidiaries, Dogness Group, obtained a line of credit from Cathay Bank, pursuant to which Dogness Group has the availability to borrow a maximum $ 1.2 As of June 30, 2022, the outstanding balance was $ 564,000 . The Company has extended the repayment date to February 2024 from the original due date of February 2022. |
SCHEDULE OF LONG-TERM LOAN | Long-term loan consisted of the following: SCHEDULE OF LONG-TERM LOAN As of June 30, As of June 30, 2022 2021 Dongguan Rural Commercial Bank Effective interest rate at 6.15 6.55 6,320,534 7,354,024 Less: current portion of long-term loans (1,386,160 ) (796,416 ) Long-term loans $ 4,934,374 $ 6,557,608 |
SCHEDULE OF BANK LOANS REPAYMENT | SCHEDULE OF BANK LOANS REPAYMENT Twelve months ending June 30, Repayment 2023 $ 1,950,160 2024 3,200,187 2025 388,082 2026 413,984 2027 441,618 2028 471,065 2029 19,438 Total $ 6,884,534 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF RECONCILIATION EFFECTIVE TAX | The following table reconciles the statutory rate to the Company’s effective tax: SCHEDULE OF RECONCILIATION EFFECTIVE TAX 2022 2021 2020 For the Years Ended June 30, 2022 2021 2020 Income tax expense computed based on PRC statutory rate $ 59,567 $ 485,121 $ (2,093,097 ) Effect of rate differential for Hong Kong and other outside PRC entities (223,665 ) (173,905 ) (24,016 ) Effect of PRC preferential tax rate 100,210 (117,514 ) 515,416 Change in valuation allowance 444,323 (223,729 ) 1,635,324 Surcharge on unpaid income tax - 669,650 - Income tax payable reserved (3,163,806 ) - - Permanent difference 5,503 30,030 130,910 Refund of prior years’ tax - (28,193 ) - Effective tax $ (2,777,868 ) $ 641,460 $ 164,537 |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | The provision for income tax consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) 2022 2021 2020 For the Years Ended June 30, 2022 2021 2020 Current income tax (benefit) expense $ (2,659,444 ) $ 1,119,776 $ 25,423 Deferred income tax (benefit) expense (118,424 ) (478,316 ) 139,114 Total income tax (benefit) expense $ (2,777,868 ) $ 641,460 $ 164,537 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The Company’s deferred tax assets consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of June 30, 2022 As of June 30, 2021 Deferred tax assets: Net operating losses $ 1,828,369 $ 1,223,699 Assets impairment reserve 451,538 471,634 Depreciation and others (45,537 ) 56,642 Valuation allowance (1,535,331 ) (1,146,317 ) Deferred tax assets, net $ 699,039 $ 605,658 |
SCHEDULE OF TAXES PAYABLE | The Company’s taxes payable consists of the following: SCHEDULE OF TAXES PAYABLE As of June 30, 2022 As of June 30, 2021 Corporate income tax payable $ 1,536,225 $ 4,256,487 Other tax payable 21,436 186,705 Total taxes payable $ 1,557,661 $ 4,443,192 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATIONSHIP OF RELATED PARTIES | The relationship of related parties is summarized as follow: SCHEDULE OF RELATIONSHIP OF RELATED PARTIES Name of Related Party Relationship to the Company Silong Chen Chief Executive Officer; Chairman of the Board of Directors Junqiang Chen Relative of Mr. Silong Chen Linsun Smart Technology Co., Ltd (“Linsun”) Equity investee - 10 Dogness Network Technology Co., Ltd (“Dogness Network”) Equity investee - 13 Dogness Technology Co., Ltd (“Dogness Technology”) The legal representative is Junqiang Chen, the relative of Mr. Silong Chen |
SCHEDULE OF DUE FROM RELATED PARTIES | Due from related parties consist of mainly rent receivables from the following: SCHEDULE OF DUE FROM RELATED PARTIES As of June 30, As of June 30, 2022 2021 Linsun $ 77,964 $ 32,118 Dogness Network 7,340 410 Dogness Technology 20,099 - Total $ 105,403 $ 32,528 |
SCHEDULE OF DUE TO RELATED PARTIES | Due to related parties consist of the following: SCHEDULE OF DUE TO RELATED PARTIES As of June 30, As of June 30, 2022 2021 Mr. Silong Chen $ 130,468 $ 2,001,940 Total $ 130,468 $ 2,001,940 |
SCHEDULE OF REVENUE FROM RELATED PARTIES | Revenue from related parties consisted of the following: SCHEDULE OF REVENUE FROM RELATED PARTIES For the Years Ended June 30, Name 2022 2021 2020 Linsun $ - $ - $ 72,987 Dogness Network 1,806,732 1,207,686 836,664 Dogness Technology 405,847 - - Total $ 2,212,579 $ 1,207,686 $ 909,651 |
SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES | Accounts receivable from related party consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES As of June 30, As of June 30, 2022 2021 Accounts receivable - related party: Dogness Network $ 1,036,476 $ 515,193 Dogness Technology 58,379 - Total $ 1,094,855 $ 515,193 |
SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES | Accounts payables to related parties consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES As of June 30, As of June 30, 2022 2021 Accounts payable - related parties: Linsun $ 393,625 $ 350,199 Total $ 393,625 $ 350,199 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income (loss) earnings per share | |
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED | The following table presents a reconciliation of basic and diluted net income (loss) per share: SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED 2022 2021 2020 For the Years Ended June 30, 2022 2021 2020 Net income (loss) attributable to the Company $ 3,235,559 $ 1,512,364 $ (8,441,559 ) Weighted average number of common shares outstanding - Basic 33,711,659 27,499,367 25,913,631 Dilutive securities -unexercised warrants and options 301,975 55,444 - Weighted average number of common shares outstanding – diluted 34,013,634 27,554,811 25,913,631 Earnings (loss) per share - Basic $ 0.10 $ 0.05 $ (0.33 ) Earnings (loss) per share – Diluted $ 0.10 $ 0.05 $ (0.33 ) |
OPTIONS (Tables)
OPTIONS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
SCHEDULE OF SHARE OPTION ACTIVITY | The following table summarized the Company’s share option activity: SCHEDULE OF SHARE OPTION ACTIVITY Number of Weighted Average Weighted Average Remaining Life in Years Outstanding June 30, 2019 480,000 $ 1.50 1.22 Exercisable, June 30, 2019 270,000 $ 1.50 1.14 Granted 160,000 - - Cancelled (140,000 ) - - Exercised - - - Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Granted - - - Cancelled - - - Exercised (10,000 ) - - Outstanding June 30, 2021 490,000 $ 1.50 0.03 Exercisable, June 30, 2021 483,341 $ 1.50 0.03 Outstanding June 30, 2021 490,000 $ 1.50 0.03 Exercisable, June 30, 2021 483,341 $ 1.50 0.03 Granted - - - Cancelled - - - Exercised (270,000 ) - - Outstanding June 30, 2022 220,000 $ 1.50 - Exercisable, June 30, 2022 220,000 $ 1.50 - |
SEGMENT (Tables)
SEGMENT (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUES BY PRODUCT CATEGORIES | The summary of total revenues by product and service categories consisted of the following: SCHEDULE OF REVENUES BY PRODUCT CATEGORIES For the Years Ended June 30, Products 2022 2021 2020 Traditional pet products $ 11,433,159 $ 14,331,492 $ 13,208,764 Intelligent pet products 13,492,076 7,801,070 4,328,918 Climbing hooks and others 1,761,341 1,340,686 1,633,676 Total revenue from product sales 26,686,576 23,473,248 19,171,358 Services: Dyeing services 342,561 817,145 - Other services 66,060 29,728 - Total revenue from services 408,621 846,873 - Total revenue $ 27,095,197 $ 24,320,121 $ 19,171,358 |
SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION | Geographic information about the revenues, which are classified based on customers, is set out as follows: SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION For the Years Ended June 30, Geographic location 2022 2021 2020 Sales to international markets $ 14,542,323 $ 10,627,253 $ 9,399,228 Sales in China domestic market 12,552,874 13,692,868 9,772,130 Total revenue $ 27,095,197 $ 24,320,121 $ 19,171,358 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) $ / shares in Units, ¥ in Thousands, ¥ in Millions | 12 Months Ended | ||||||||||||||||||
Nov. 28, 2020 USD ($) | Nov. 28, 2020 JPY (¥) | Jan. 15, 2020 USD ($) | Jan. 15, 2020 CNY (¥) | Mar. 16, 2018 USD ($) | Mar. 16, 2018 CNY (¥) | Dec. 18, 2017 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | Nov. 27, 2020 USD ($) | Jan. 15, 2020 CNY (¥) | Feb. 05, 2019 USD ($) | Dec. 14, 2018 USD ($) | Dec. 14, 2018 CNY (¥) | Jul. 06, 2018 USD ($) | Jul. 06, 2018 CNY (¥) | Apr. 26, 2017 shares | Jan. 09, 2017 | Nov. 24, 2016 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Common stock, shares outstanding | shares | 39,274,259 | 29,624,814 | 15,000,000 | ||||||||||||||||
Assets | $ 100,796,722 | $ 93,845,408 | |||||||||||||||||
Liabilities | $ 12,320,746 | 28,943,003 | |||||||||||||||||
Long Kai (Shenzheng) Industrial Co Ltd [Member] | Share Purchase Agreement [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Cash consideration | ¥ | ¥ 71,000 | ||||||||||||||||||
Dogness Intelligence Technology Co., Ltd. [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Capital contributions | $ 11,900,000 | ¥ 80,000 | |||||||||||||||||
Dongguan Jiasheng [Member] | Dongguan Dogness [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 100% | ||||||||||||||||||
Dongguan Jiasheng [Member] | Dogness Intelligence Technology Co., Ltd. [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 58% | 58% | |||||||||||||||||
HK Dogness [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 100% | ||||||||||||||||||
Dogness [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 100% | ||||||||||||||||||
Dogness Intelligence Technology Co., Ltd. [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 100% | ||||||||||||||||||
Dogness Intelligence Technology Co., Ltd. [Member] | TwoUnrelated Entities [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 42% | 42% | |||||||||||||||||
Zhangzhou Meijia Metal Product Co Ltd [Member] | Share Purchase Agreement [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Acquisition cost ratio | 100% | 100% | |||||||||||||||||
Cash consideration | $ 11,100,000 | ||||||||||||||||||
Dogness Japan Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 51% | 51% | 51% | ||||||||||||||||
Cash consideration | $ 31,092 | ¥ 3.2 | |||||||||||||||||
Investments | $ 142,000 | ||||||||||||||||||
Description on disposition | Immediately before the disposition, Dogness Japan’s total assets were $91,625, accounting for only 0.1% of the Company’s consolidated total assets; and total liabilities were approximately $32,144, accounting for only 0.1% of the Company’s consolidated total liabilities | Immediately before the disposition, Dogness Japan’s total assets were $91,625, accounting for only 0.1% of the Company’s consolidated total assets; and total liabilities were approximately $32,144, accounting for only 0.1% of the Company’s consolidated total liabilities | |||||||||||||||||
Assets | $ 91,625 | ||||||||||||||||||
Liabilities | $ 32,144 | ||||||||||||||||||
Gain (Loss) on Disposition of Business | $ 5,162 | ||||||||||||||||||
Dogness Japan Co Ltd [Member] | Unrelated Individual [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 49% | ||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Capital contributions | $ 1,500,000 | ¥ 10,000 | |||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | Mr Silong Chen [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 51.20% | 51.20% | |||||||||||||||||
Cash consideration | $ 790,000 | ¥ 5,120 | |||||||||||||||||
Capital contributions | $ 760,000 | ¥ 4,880 | |||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | Two Third Parties [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 48.80% | 48.80% | |||||||||||||||||
Common Class B [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Common stock, shares outstanding | shares | 9,069,000 | 9,069,000 | |||||||||||||||||
Common Class A [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Common stock, shares outstanding | shares | 30,205,259 | 20,555,814 | |||||||||||||||||
Common Class A [Member] | IPO [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Number of shares issued under public offering | shares | 10,913,631 | ||||||||||||||||||
Shares issued, price per share | $ / shares | $ 5 | ||||||||||||||||||
Proceeds from issuance or sale of equity | $ 54,600,000 | ||||||||||||||||||
Proceeds from issuance of common stock | $ 50,200,000 | ||||||||||||||||||
Ms. Yunhao Chen [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Entity incorporation, state country name | British Virgin Islands | ||||||||||||||||||
Entity incorporation, date of incorporation | Jul. 11, 2016 | ||||||||||||||||||
Shareholder [Member] | Dongguan Jiasheng [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Ownership interest percentage | 100% | ||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Entity incorporation, date of incorporation | Dec. 14, 2018 |
SCHEDULE OF ENTITIES (Details)
SCHEDULE OF ENTITIES (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Dogness (International) Corporation [Member] | |
Date of Incorporation | Jul. 11, 2016 |
Place of Incorporation | BVI |
% of Ownership | 100% |
Principal Activities | Holding Company |
Dogness (Hongkong) Pet's Products Co., Limited [Member] | |
Date of Incorporation | Mar. 10, 2009 |
Place of Incorporation | Hong Kong |
% of Ownership | 100% |
Principal Activities | Trading |
Jiasheng Enterprise (Hong Kong) Co., Limited [Member] | |
Date of Incorporation | Jul. 12, 2007 |
Place of Incorporation | Hong Kong |
% of Ownership | 100% |
Principal Activities | Trading |
Dogness Intelligence Technology (Dongguan) Co., Ltd. [Member] | |
Date of Incorporation | Oct. 26, 2016 |
Place of Incorporation | Dongguan, China |
% of Ownership | 100% |
Principal Activities | Holding Company |
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |
Date of Incorporation | May 15, 2009 |
Place of Incorporation | Dongguan, China |
% of Ownership | 100% |
Principal Activities | Development and manufacturing of pet leash products |
Zhangzhou Meijia Metal Product Co Ltd [Member] | |
Date of Incorporation | Jul. 09, 2009 |
Place of Incorporation | Zhangzhou, China |
% of Ownership | 100% |
Principal Activities | Manufacturing of pet leash products |
Dogness Overseas Ltd [Member] | |
Date of Incorporation | Feb. 08, 2018 |
Place of Incorporation | BVI |
% of Ownership | 100% |
Principal Activities | Holding Company |
Dogness Group LLC [Member] | |
Date of Incorporation | Jan. 23, 2018 |
Place of Incorporation | Delaware, United States |
% of Ownership | 100% |
Principal Activities | Pet products trading |
Dogness Intelligence Technology Co., Ltd. [Member] | |
Date of Incorporation | Jul. 06, 2018 |
Place of Incorporation | Guangzhou, Chin |
% of Ownership | 58% |
Principal Activities | Research and manufacturing of intelligent pet products |
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | |
Date of Incorporation | Dec. 14, 2018 |
Place of Incorporation | Dongguan, Chin |
% of Ownership | 51.20% |
Principal Activities | Developing and expanding pet food market |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 50 years |
Leaseholds and Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Lesser of useful life and lease term |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
SCHEDULE OF CURRENCY EXCHANGE R
SCHEDULE OF CURRENCY EXCHANGE RATES (Details) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Year-End Spot Rate : US$1 Exchange Rate=RMB [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 6.6981 | 6.4566 | 7.0721 |
Year-End Spot Rate : US$1 Exchange Rate= JPY [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 111.1 | 107.5 | |
Average Rate US$1=RMB [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 6.4554 | 6.6221 | 7.0323 |
Average Rate US$1=JPY [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 106.6 | 107.5 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | ||||||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | Jun. 30, 2022 CNY (¥) | Nov. 30, 2018 USD ($) | Nov. 30, 2018 CNY (¥) | Jul. 31, 2018 USD ($) | Jul. 31, 2018 CNY (¥) | Jul. 02, 2018 | |
Property, Plant and Equipment [Line Items] | |||||||||
Short-term investments | $ 52,255 | $ 549,895 | |||||||
Interest income | 1,385 | 48,058 | $ 243,661 | ||||||
Allowances for accounts receivable | 6,872 | 26,272 | |||||||
Long-term investments | 1,642,300 | 1,703,900 | |||||||
Gain (Loss) on Disposition of Property Plant Equipment | 1,200,000 | ||||||||
Long-lived assets impairment | $ 281,680 | ||||||||
Income Tax Examination, Likelihood of Unfavorable Settlement | The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded | ||||||||
[custom:ValueAddedTaxesRateDescription] | Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 1, 2018, VAT rate was lowered to 16%, and starting from April 1, 2019, VAT rate was further lowered to 13%), depending on the type of products sold | ||||||||
Nanjing Rootaya Intelligence Technology Co Ltd [Member] | Equity Investment Agreement [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 10% | 10% | |||||||
Long-term investments | $ 186,625 | ¥ 1,250,000 | |||||||
Three Unrelated Shareholders [Member] | Equity Investment Agreement [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 90% | 90% | |||||||
Dogness Network Technology Co Ltd [Member] | Equity Investment Agreement [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 10% | 10% | |||||||
Long-term investments | $ 1,194,400 | ¥ 8,000,000 | |||||||
Unrelated Shareholder [Member] | Equity Investment Agreement [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 90% | 90% | |||||||
Linsun Smart Technology Co Ltd [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 10% | 10% | |||||||
Linsun Smart Technology Co Ltd [Member] | Equity Investment Agreement [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 13% | 13% | |||||||
Long-term investments | $ 40,274 | ¥ 260,000 | $ 447,900 | ¥ 3,000,000 | |||||
Linsun Smart Technology Co Ltd [Member] | Equity Investment Agreement [Member] | Three Unrelated Shareholders [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 87% | 87% | |||||||
Software [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Intangible asset, useful life | 10 years | ||||||||
Land [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Intangible asset, useful life | 50 years | ||||||||
Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
[custom:InvestmentsPercentage] | 2.60% | ||||||||
Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
[custom:InvestmentsPercentage] | 3.80% | ||||||||
Maximum [Member] | Investments Equity Securities [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Ownership percentage | 20% | ||||||||
Dogness Intelligence Technology Co., Ltd. [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
[custom:MinorityInterestOwnershipPercentageByNoncontrollingOwner-0] | 42% | 42% | |||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
[custom:MinorityInterestOwnershipPercentageByNoncontrollingOwner-0] | 48.80% | 48.80% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | ||
Accounts receivable from third-party customers | $ 1,656,041 | $ 2,393,598 |
Less: allowance for doubtful accounts | (6,872) | (26,272) |
Total accounts receivable from third-party customers, net | 1,649,169 | 2,367,326 |
Add: accounts receivable - related parties | 1,094,855 | 515,193 |
Total accounts receivable, net | $ 2,744,024 | $ 2,882,519 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Receivables [Abstract] | ||
Beginning balance | $ 26,272 | $ 23,982 |
Recovery | (16,776) | |
Write off | (2,366) | |
Foreign currency translation adjustments | (258) | 2,290 |
Ending balance | $ 6,872 | $ 26,272 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details Narrative) ¥ in Millions | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | Jun. 30, 2022 CNY (¥) | Oct. 16, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for bad debt | $ (16,776) | $ 755,472 | |||
Accounts Receivable, Allowance for Credit Loss | 6,872 | $ 26,272 | |||
Accounts Receivable, Related Parties | $ 1,094,855 | $ 356,927 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Third Party Customers [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk percentage | 67% | ||||
Third Party Customers [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, Related Parties | $ 1,100,000 | ¥ 7.5 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 117,093 | $ 218,090 |
Work in process | 876,021 | 1,082,350 |
Finished goods | 2,523,455 | 3,054,909 |
Inventory, gross | 3,516,569 | 4,355,349 |
Less: inventory allowance | (146,684) | (152,186) |
Inventory, net | $ 3,369,885 | $ 4,203,163 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |||
Inventory markdown | $ 117,703 | $ 1,165,044 | |
Change in inventory reserve | $ 1,200,000 | ||
Inventory write down | $ 152,186 | $ 1,158,551 |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Buildings | $ 27,161,241 | $ 28,128,416 |
Machinery and equipment | 5,848,505 | 7,524,170 |
Office equipment and furniture | 1,042,408 | 1,296,201 |
Automobiles | 837,276 | 754,764 |
Leasehold improvements | 44,384,670 | 41,095,980 |
Construction-in-progress (“CIP”) | 597,594 | |
Total | 79,274,100 | 79,397,125 |
Less: Accumulated depreciation | (10,530,744) | (9,214,249) |
Impairment of fixed assets | (295,744) | (306,837) |
Property, plant and equipment, net | $ 68,447,612 | $ 69,876,039 |
SCHEDULE OF FUTURE MINIMUM CAPI
SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES (Details) - USD ($) | Aug. 31, 2022 | Jun. 30, 2022 |
2023 | $ 313,002 | |
Subsequent Event [Member] | ||
2023 | $ 305,074 | |
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | ||
2023 | 297,931 | |
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Subsequent Event [Member] | ||
2023 | 290,003 | |
Dogness Culture [Member] | ||
2023 | $ 15,071 | |
Dogness Culture [Member] | Subsequent Event [Member] | ||
2023 | $ 15,071 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) | 12 Months Ended | 14 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 3,375,875 | $ 3,025,686 | $ 2,189,863 | |||
Loss from disposition of fixed assets | 1,036,304 | |||||
Impairment of fixed assets | 281,680 | |||||
Payments to acquire construction in progress | 313,002 | |||||
Subsequent Event [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Payments to acquire assets | $ 7,928 | ¥ 53,100 | ||||
Payments to acquire construction in progress | $ 305,074 | |||||
Cathay Bank [Membeer] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Secured loans | 600,000 | |||||
Dongguan Rural Commercial Bank [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Long-term bank loans borrowed | 6,300,000 | |||||
Secured loans | 5,400,000 | |||||
Dongguan Jiasheng [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated budgeted costs | 39,300,000 | ¥ 263,500,000 | ||||
Payments to acquire assets | 39,000,000 | 261,500,000 | ||||
Dogness Culture [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated budgeted costs | 300,000 | 2,200,000 | ||||
Business Combination, Consideration Transferred | 300,000 | 2,100,000 | ||||
Machinery and Equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 1,200,000 | |||||
Warehouse Construction [Member] | Dongguan Jiasheng [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Payments to acquire assets | $ 300,000 | ¥ 2,000,000 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, NET (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Software | $ 224,349 | $ 232,764 |
Land use right | 2,267,289 | 2,352,331 |
Less: accumulated amortization | (428,221) | (361,810) |
Intangible assets, net | $ 2,063,417 | $ 2,223,285 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSE (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 79,491 | |
2024 | 67,473 | |
2025 | 62,012 | |
2026 | 61,366 | |
Thereafter | 1,793,075 | |
Intangible assets, net | $ 2,063,417 | $ 2,223,285 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Past Due [Line Items] | |||
Amortization of intangible assets | $ 82,472 | $ 80,396 | $ 75,094 |
Intangible Assets [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loan from bank | 6,300,000 | ||
Collateral to secure loan | $ 2,000,000 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Leases | ||
Right-of-use assets, net | $ 4,589,678 | $ 5,170,395 |
Operating lease liabilities - current | 184,700 | 171,803 |
Operating lease liabilities - non-current | 901,351 | 1,123,060 |
Total operating lease liabilities | $ 1,086,051 | $ 1,294,863 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Leases | ||
2023 | $ 241,248 | |
2024 | 254,557 | |
2025 | 254,992 | |
2026 | 261,420 | |
2027 | 233,689 | |
Thereafter | 2,276 | |
Total future minimum lease payments | 1,248,182 | |
Less: imputed interest | 162,131 | |
Total | $ 1,086,051 | $ 1,294,863 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases | |||
Rent expense | $ 477,268 | $ 487,763 | $ 562,894 |
Weighted average remaining lease terms | 13 years 9 months 10 days |
SCHEDULE OF SHORT-TERM BANK LOA
SCHEDULE OF SHORT-TERM BANK LOANS (Details) (Parenthetical) - Cathay Bank [Membeer] - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 06, 2020 |
Line of Credit Facility [Line Items] | |||
Effective interest rate | 4.25% | 4.25% | |
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum line of credit | $ 1.2 |
SCHEDULE OF SHORT-TERM BANK L_2
SCHEDULE OF SHORT-TERM BANK LOANS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Line of Credit Facility [Line Items] | |||
Short-term Debt | $ 564,000 | $ 704,446 | |
Cathay Bank [Membeer] | |||
Line of Credit Facility [Line Items] | |||
Short-term Debt | [1] | $ 564,000 | $ 704,446 |
[1]On February 6, 2020, one of the Company’s U.S. subsidiaries, Dogness Group, obtained a line of credit from Cathay Bank, pursuant to which Dogness Group has the availability to borrow a maximum $ 1.2 |
SCHEDULE OF LONG-TERM LOAN (Det
SCHEDULE OF LONG-TERM LOAN (Details) (Parenthetical) | Jun. 30, 2022 | Jun. 30, 2021 |
Dongguan Rural Commercial Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective interest rate | 6.15% | 6.55% |
SCHEDULE OF LONG-TERM LOAN (D_2
SCHEDULE OF LONG-TERM LOAN (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Line of Credit Facility [Line Items] | ||
Less: current portion of long-term loans | $ (1,386,160) | $ (796,416) |
Long-term loans | 4,934,374 | 6,557,608 |
Dongguan Rural Commercial Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans payable to bank | $ 6,320,534 | $ 7,354,024 |
SCHEDULE OF BANK LOANS REPAYMEN
SCHEDULE OF BANK LOANS REPAYMENT (Details) | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 1,950,160 |
2024 | 3,200,187 |
2025 | 388,082 |
2026 | 413,984 |
2027 | 441,618 |
2028 | 471,065 |
2029 | 19,438 |
Total | $ 6,884,534 |
BANK LOANS (Details Narrative)
BANK LOANS (Details Narrative) | 12 Months Ended | ||||||
Jul. 17, 2020 USD ($) | Jul. 17, 2020 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | Jul. 17, 2020 CNY (¥) | |
Line of Credit Facility [Line Items] | |||||||
Operating Lease, Right-of-Use Asset | $ 4,589,678 | $ 5,170,395 | |||||
Repayments of Debt | 353,860 | ¥ 2,370,129 | |||||
Interest expense | 471,443 | 460,905 | $ 239,326 | ||||
Capitalized interest | 90,775 | 145,620 | |||||
Long term debt | 6,884,534 | ||||||
Dongguan Rural Commercial Bank [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Proceeds from Loans | $ 7,500,000 | ¥ 50,000,000 | |||||
Debt Instrument, Description | The loans have tenure varying between three and eight years. The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points | The loans have tenure varying between three and eight years. The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points | |||||
Loans Payable to Bank | 6,320,534 | $ 7,354,024 | |||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Cathay Bank [Membeer] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Face Amount | $ 564,000 | ||||||
Meijia [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
[custom:LoansReceivableCollateralForSecuredBorrowings-0] | $ 4,500,000 | ¥ 30,000,000 | |||||
Meijia [Member] | Mr Silong Chen [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
[custom:LoansReceivableCollateralForSecuredBorrowings-0] | 3,000,000 | ¥ 20,000,000 | |||||
Meijia [Member] | Land [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Operating Lease, Right-of-Use Asset | 2,000,000 | ||||||
Meijia [Member] | Building [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Operating Lease, Right-of-Use Asset | $ 5,400,000 |
SCHEDULE OF RECONCILIATION EFFE
SCHEDULE OF RECONCILIATION EFFECTIVE TAX (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed based on PRC statutory rate | $ 59,567 | $ 485,121 | $ (2,093,097) |
Effect of rate differential for Hong Kong and other outside PRC entities | (223,665) | (173,905) | (24,016) |
Effect of PRC preferential tax rate | 100,210 | (117,514) | 515,416 |
Change in valuation allowance | 444,323 | (223,729) | 1,635,324 |
Surcharge on unpaid income tax | 669,650 | ||
Income tax payable reserved | (3,163,806) | ||
Permanent difference | 5,503 | 30,030 | 130,910 |
Refund of prior years’ tax | (28,193) | ||
Effective tax | $ (2,777,868) | $ 641,460 | $ 164,537 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current income tax (benefit) expense | $ (2,659,444) | $ 1,119,776 | $ 25,423 |
Deferred income tax (benefit) expense | (118,424) | (478,316) | 139,114 |
Total income tax (benefit) expense | $ (2,777,868) | $ 641,460 | $ 164,537 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 1,828,369 | $ 1,223,699 |
Assets impairment reserve | 451,538 | 471,634 |
Depreciation and others | (45,537) | 56,642 |
Valuation allowance | (1,535,331) | (1,146,317) |
Deferred tax assets, net | $ 699,039 | $ 605,658 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Corporate income tax payable | $ 1,536,225 | $ 4,256,487 |
Other tax payable | 21,436 | 186,705 |
Total taxes payable | $ 1,557,661 | $ 4,443,192 |
TAXES (Details Narrative)
TAXES (Details Narrative) | 12 Months Ended | |||
Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2020 USD ($) $ / shares | Jun. 30, 2022 CNY (¥) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Statutory income tax rate | 15% | |||
Description on tax rate | Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and Foreign Investment Enterprises (“FIEs”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. In October 2015, Dongguan Jiasheng, the Company’s main operating subsidiary in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% from 2015 to 2023 | |||
Foreign taxes | $ 100,210 | $ 117,514 | ||
Income Tax Holiday, Income Tax Benefits Per Share | $ / shares | $ 0 | $ 0 | ||
Accrued Income Taxes | $ 4,600,000 | $ 4,300,000 | ||
Accrued Liabilities | 3,000,000 | ¥ 20,424,826 | ||
Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Accrued Liabilities | 4,600,000 | |||
Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Accrued Liabilities | $ 1,500,000 | |||
HONG KONG | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Statutory income tax rate | 16.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 2 Months Ended | 14 Months Ended | |||||||||||||
Aug. 10, 2022 USD ($) | Jul. 06, 2018 USD ($) | Jul. 06, 2018 CNY (¥) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Jul. 06, 2018 CNY (¥) | Mar. 16, 2018 USD ($) | Mar. 16, 2018 CNY (¥) | |
Loss Contingencies [Line Items] | |||||||||||||||
[custom:CapitalExpendituresFutureMinimumPaymentsDue-0] | $ 313,002 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital investment | $ 0 | ||||||||||||||
Payments to Acquire Productive Assets | $ 7,928 | ¥ 53,100 | |||||||||||||
[custom:CapitalExpendituresFutureMinimumPaymentsDue-0] | $ 305,074 | $ 305,074 | |||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | $ 6,900,000 | ¥ 46,400,000 | |||||||||||||
Zhangzhou Meijia Metal Product Co., Ltd ('Meijia') [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | $ 6,400,000 | ¥ 42,700,000 | $ 9,000,000 | ¥ 60,000,000 | |||||||||||
Zhangzhou Meijia Metal Product Co., Ltd ('Meijia') [Member] | December 30, 2025 [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | 2,600,000 | 17,300,000 | |||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | 8,200,000 | 55,000,000 | |||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Minimum [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | $ 7,500,000 | ¥ 50,000,000 | |||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Maximum [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | $ 8,200,000 | ¥ 55,000,000 | |||||||||||||
Meijia and Dongguan Jiasheng [Member] | Subsequent Event [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Payments to Acquire Productive Assets | $ 7,928 | ¥ 53,100 | |||||||||||||
Dogness Intelligence Technology Co., Ltd. [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | $ 11,900,000 | ¥ 80,000,000 | |||||||||||||
Ownership percentage | 58% | 58% | |||||||||||||
Dogness Network Technology Co Ltd [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Capital | $ 1,200,000 | ¥ 8,000,000 | |||||||||||||
Ownership percentage | 10% | 13% | 10% | ||||||||||||
Capital contribution | $ 1,200,000 | ¥ 8,000,000 |
SCHEDULE OF RELATIONSHIP OF REL
SCHEDULE OF RELATIONSHIP OF RELATED PARTIES (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Mr Silong Chen [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Chief Executive Officer; Chairman of the Board of Directors |
Junqiang Chen and Caiyuan He [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Relative of Mr. Silong Chen |
Linsun Smart Technology Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Equity investee -10% of the ownership |
Dogness Network Technology Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Equity investee - 13% of the ownership |
Guangdong Dogness Technology Co., Ltd. (Dogness Technology) [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | The legal representative is Junqiang Chen, the relative of Mr. Silong Chen |
SCHEDULE OF RELATIONSHIP OF R_2
SCHEDULE OF RELATIONSHIP OF RELATED PARTIES (Details) (Parenthetical) | Jun. 30, 2022 | Jul. 06, 2018 |
Linsun Smart Technology Co Ltd [Member] | ||
Equity ownership percentage | 10% | |
Dogness Network Technology Co Ltd [Member] | ||
Equity ownership percentage | 13% | 10% |
SCHEDULE OF DUE FROM RELATED PA
SCHEDULE OF DUE FROM RELATED PARTIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 105,403 | $ 32,528 |
Linsun [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 77,964 | 32,118 |
Dogness Network Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 7,340 | 410 |
Dogness Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | $ 20,099 |
SCHEDULE OF DUE TO RELATED PART
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Due to related party | $ 130,468 | $ 2,001,940 |
Mr Silong Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | $ 130,468 | $ 2,001,940 |
SCHEDULE OF REVENUE FROM RELATE
SCHEDULE OF REVENUE FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | |||
Total | $ 2,212,579 | $ 1,207,686 | $ 909,651 |
Linsun Smart Technology Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Total | 72,987 | ||
Dogness Network Technology Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Total | 1,806,732 | 1,207,686 | 836,664 |
Dogness Technology [Member] | |||
Related Party Transaction [Line Items] | |||
Total | $ 405,847 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 1,094,855 | $ 515,193 |
Dogness Network Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 1,036,476 | 515,193 |
Dogness Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 58,379 |
SCHEDULE OF ACCOUNTS PAYABLE TO
SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | $ 393,625 | $ 350,199 |
Linsun Smart Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | $ 393,625 | $ 350,199 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 12 Months Ended | ||||
Aug. 02, 2020 USD ($) ft² | Jan. 02, 2020 USD ($) ft² | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Related Party Transaction [Line Items] | |||||
Cost of revenue to related parties | $ 1,301,180 | $ 663,742 | $ 633,132 | ||
Accounts receivable related parties | 1,094,855 | 515,193 | |||
Proceeds from receivables from related parties | 356,927 | ||||
Linsun Smart Technology Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party debt | 3,199,833 | 3,015,442 | 2,191,458 | ||
Linsun Smart Technology Co Ltd [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of land | ft² | 8,460 | ||||
Lease term | 10 years | ||||
Lease description | Annual lease payment from Linsun amounted to approximately $250,000 and is subject to 15% increase every three years | ||||
Annual lease receivable | $ 250,000 | ||||
Operating leases percentage | 15% | ||||
Rental income | 462,210 | 300,511 | |||
Other income | 89,411 | ||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of land | ft² | 580 | ||||
Lease term | 10 years | ||||
Lease description | Annual lease payment from Dogness Network amounted to approximately $37,000 and is subject to 15% increase every three years | ||||
Annual lease receivable | $ 37,000 | ||||
Operating leases percentage | 15% | ||||
Rental income | 78,251 | 52,796 | |||
Other income | |||||
Guangdong Dogness Biotechnology Co., Ltd., [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of land | ft² | 50 | ||||
Lease term | 10 years | ||||
Annual lease receivable | $ 1,866 | ||||
Gongdong Technology [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Rental income | $ 1,706 | $ 1,661 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 12 Months Ended | |||||||||||
Jun. 03, 2022 | Feb. 24, 2022 | Jul. 19, 2021 | Apr. 15, 2021 | Jan. 20, 2021 | Dec. 18, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 26, 2017 | Jul. 11, 2016 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 15,000,000 | ||||||||
Common stock, par value | $ 0.002 | $ 0.002 | $ 0.002 | $ 0.002 | ||||||||
Common stock, shares issued | 39,274,259 | 29,624,814 | 15,000,000 | |||||||||
Common stock, shares outstanding | 39,274,259 | 29,624,814 | 15,000,000 | |||||||||
Proceeds from Issuance of Warrants | $ 4,444,136 | |||||||||||
Number of shares issued, value | $ 387,500 | |||||||||||
Weighted average exercise price | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | ||||||||
Statutory reserve description | Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC regulations until the reserve is equal to 50% of the entity’s registered capital | |||||||||||
Allocation to statutory reserve | $ 99,727 | |||||||||||
Restricted reserve | $ 291,443 | $ 291,443 | ||||||||||
Securities Purchase Agreement [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Proceeds from Issuance of Warrants | $ 5,400,000 | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Exercised | 1,727,565 | |||||||||||
Securities Purchase Agreement [Member] | Investor [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Shares issued price per share | $ 2.70 | |||||||||||
Warrants to purchase common stock | 2,181.81 | 1,727,565 | ||||||||||
Warrants exercise price | $ 4.20 | |||||||||||
Securities Purchase Agreement [Member] | Placement Agent [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Shares issued price per share | $ 276,410 | |||||||||||
Warrants to purchase common stock | 174,249 | 2.70 | ||||||||||
Warrants exercise price | $ 1.82 | |||||||||||
Public Offering Warrants [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Warrants issue | 500,000 | |||||||||||
Warrant [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Warrants issue | 2,632,478 | |||||||||||
Weighted average exercise price | $ 3.88 | |||||||||||
Warrants term | 2 years 8 months 19 days | |||||||||||
Common Class A [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Common stock, shares outstanding | 30,205,259 | 20,555,814 | ||||||||||
Common Class A [Member] | Real Miracle Investments Limited [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Number of shares issued | 250,000 | |||||||||||
Number of shares issued, value | $ 387,500 | |||||||||||
Common Class A [Member] | Securities Purchase Agreement [Member] | Investor [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Shares issued price per share | $ 3.30 | $ 2.88 | $ 1.82 | $ 2.15 | ||||||||
Number of shares issuance of sales | 3,636,365 | 1,966,251 | 2,178,120 | 3,455,130 | ||||||||
Proceeds from sale of common shares | $ 10,900,000 | $ 4,700,000 | $ 3,500,000 | $ 6,600,000 | ||||||||
Common Class A [Member] | Public Offering Warrants [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Warrants to purchase common stock | 500,000 | |||||||||||
Percentage for common stock sold for offering | 5% | |||||||||||
Warrants term | 3 years | |||||||||||
Warrants exercise price | $ 6.25 | |||||||||||
Common Class B [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Common stock, shares outstanding | 9,069,000 | 9,069,000 | ||||||||||
IPO [Member] | Common Class A [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Shares issued, shares | 10,913,631 | |||||||||||
Shares issued price per share | $ 5 | |||||||||||
Gross from initial public offering | $ 54,600,000 | |||||||||||
Proceeds from initial public offering | 50,200,000 | |||||||||||
Proceeds from sale of common shares | $ 50,200,000 |
SCHEDULE OF EARNINGS PER SHARE,
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income (loss) earnings per share | |||
Net income (loss) attributable to the Company | $ 3,235,559 | $ 1,512,364 | $ (8,441,559) |
Weighted average number of common shares outstanding - Basic | 33,711,659 | 27,499,367 | 25,913,631 |
Dilutive securities -unexercised warrants and options | 301,975 | 55,444 | |
Weighted average number of common shares outstanding – diluted | 34,013,634 | 27,554,811 | 25,913,631 |
Earnings (loss) per share - Basic | $ 0.10 | $ 0.05 | $ (0.33) |
Earnings (loss) per share – Diluted | $ 0.10 | $ 0.05 | $ (0.33) |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income (loss) earnings per share | |||
Antidilutive securities excluded from computation of earnings per share, amount | 301,975 | 55,444 |
SCHEDULE OF SHARE OPTION ACTIVI
SCHEDULE OF SHARE OPTION ACTIVITY (Details) - $ / shares | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | ||||
Number of Options Outstanding, Beginning Balance | 490,000 | 500,000 | 480,000 | |
Weighted Average Exercise Price, Beginning Balance | $ 1.50 | $ 1.50 | $ 1.50 | |
Weighted Average Remaining Life in Years, Outstanding Term | 10 days | 4 months 6 days | 1 year 2 months 19 days | |
Number of Option Outstanding Exercisable, Beginning Balance | 483,341 | 413,337 | 270,000 | |
Weighted Average Exercise Price Exercisable, Beginning Balance | $ 1.50 | $ 1.50 | $ 1.50 | |
Weighted Average Remaining Life in Years, Exercisable Term | 10 days | 2 months 8 days | 1 year 1 month 20 days | |
Number of Options, Granted | 160,000 | |||
Weighted Average Price, Granted | ||||
Number of Options, Cancelled | (140,000) | |||
Weighted Average Exercise Price, Cancelled | ||||
Number of Options, Exercised | (270,000) | (10,000) | ||
Weighted Average Exercise Price, Exercised | ||||
Number of Options Outstanding, Ending Balance | 220,000 | 490,000 | 500,000 | 480,000 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 |
Number of Option Outstanding Exercisable, Ending Balance | 220,000 | 483,341 | 413,337 | 270,000 |
Weighted Average Exercise Price Exercisable, Ending Balance | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 |
OPTIONS (Details Narrative)
OPTIONS (Details Narrative) - USD ($) | 12 Months Ended | |||||||||||||
Jan. 18, 2022 | Jan. 03, 2022 | Dec. 01, 2021 | Nov. 04, 2021 | Feb. 18, 2021 | Jul. 30, 2019 | Dec. 18, 2017 | Nov. 10, 2017 | May 28, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 31, 2019 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Stock options exercise purchase price | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | ||||||||||
Options exercised | 270,000 | 10,000 | ||||||||||||
Share-based compensation for services | $ 11,831 | $ 529,658 | $ 394,465 | |||||||||||
IPO [Member] | Common Class A [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Issuance shares for private placement, shares | 10,913,631 | |||||||||||||
TJ Capital Management, L.P [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Stock options grants to purchase | 160,000 | |||||||||||||
Stock options exercise purchase price | $ 1.50 | |||||||||||||
TJ Capital Management, L.P [Member] | Corporate and Executive Service Agreement [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Stock options grants to purchase | 160,000 | |||||||||||||
Stock options exercise purchase price | $ 1.50 | |||||||||||||
Share-based payment award fair value assumptions expected term | 2 years | |||||||||||||
Options vested | 6,667 | |||||||||||||
Aggregated fair value of options granted | $ 284,300 | |||||||||||||
Share price | $ 2.90 | |||||||||||||
Share-based payment award, fair value assumptions, risk free interest rate | 1.85% | |||||||||||||
Share-based payment award, fair value assumptions, exercise price | $ 1.50 | |||||||||||||
Share-based payment award, fair value assumptions, expected volatility rate | 77% | |||||||||||||
Share-based payment award, fair value assumptions, expected dividend payments | ||||||||||||||
TJ Capital Management, L.P [Member] | Consulting Agreement [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Options exercised | 10,000 | 60,000 | ||||||||||||
Issuance shares for private placement, shares | 24,382 | 41,928 | 36,440 | 6,053 | ||||||||||
Stock options on cashless basis, shares | 60,000 | |||||||||||||
TJ Capital Management, L.P [Member] | Consulting Agreement [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Stock options on cashless basis, shares | 10,000 | |||||||||||||
TJ Capital Management, L.P [Member] | IPO One [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Options vested | 60,000 | |||||||||||||
Share-based payment award fair value assumptions expected term | 7 months | |||||||||||||
TJ Capital Management, L.P [Member] | IPO Two [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Share-based payment award fair value assumptions expected term | 10 months | |||||||||||||
Options vested | 50,000 | |||||||||||||
TJ Capital Management, L.P [Member] | IPO Three [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Share-based payment award fair value assumptions expected term | 15 months | |||||||||||||
Options vested | 50,000 | |||||||||||||
Dr. Yunhao Chen [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Share-based payment award fair value assumptions expected term | 2 years | |||||||||||||
Aggregated fair value of options granted | $ 440,840 | |||||||||||||
Share price | $ 5 | |||||||||||||
Share-based payment award, fair value assumptions, risk free interest rate | 1.84% | |||||||||||||
Share-based payment award, fair value assumptions, exercise price | $ 1.50 | $ 1.50 | ||||||||||||
Share-based payment award, fair value assumptions, expected volatility rate | 69.50% | |||||||||||||
Share-based payment award, fair value assumptions, expected dividend payments | ||||||||||||||
Options exercised | 120,000 | |||||||||||||
Issuance shares for private placement, shares | 120,000 | |||||||||||||
Share-based payment award, fair value assumptions, method used | Black-Scholes pricing model | |||||||||||||
Dr. Yunhao Chen [Member] | Employment Agreement [Member] | Common Class A [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Stock options grants to purchase | 120,000 | |||||||||||||
Stock options exercise purchase price | $ 1.50 | |||||||||||||
Dr. Yunhao Chen [Member] | IPO [Member] | Employment Agreement [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Options vested | 5,000 | |||||||||||||
Mr Silong Chen [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Share-based payment award fair value assumptions expected term | 3 years | |||||||||||||
Options vested | 220,000 | |||||||||||||
Aggregated fair value of options granted | $ 1,385,500 | |||||||||||||
Share price | $ 5 | |||||||||||||
Share-based payment award, fair value assumptions, risk free interest rate | 1.94% | |||||||||||||
Share-based payment award, fair value assumptions, exercise price | $ 1.50 | |||||||||||||
Share-based payment award, fair value assumptions, expected volatility rate | 74.70% | |||||||||||||
Share-based payment award, fair value assumptions, expected dividend payments | ||||||||||||||
Options exercised | 0 | |||||||||||||
Share-based payment award, fair value assumptions, method used | Black-Scholes pricing model | |||||||||||||
Stock options non vested shares | 140,000 | |||||||||||||
Mr Silong Chen [Member] | Common Class A [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Stock options grants to purchase | 360,000 | |||||||||||||
Stock options exercise purchase price | $ 1.50 | |||||||||||||
Mr Silong Chen [Member] | IPO [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Options vested | 10,000 |
SCHEDULE OF REVENUES BY PRODUCT
SCHEDULE OF REVENUES BY PRODUCT CATEGORIES (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 27,095,197 | $ 24,320,121 | $ 19,171,358 |
Traditional Pet Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 11,433,159 | 14,331,492 | 13,208,764 |
Intelligent Pet Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 13,492,076 | 7,801,070 | 4,328,918 |
Climbing Hooks and Others [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,761,341 | 1,340,686 | 1,633,676 |
Product [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 26,686,576 | 23,473,248 | 19,171,358 |
Dyeing Services [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 342,561 | 817,145 | |
Service, Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 66,060 | 29,728 | |
Service [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 408,621 | $ 846,873 |
SCHEDULE OF REVENUES BY GEOGRAP
SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 27,095,197 | $ 24,320,121 | $ 19,171,358 |
International Market [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 14,542,323 | 10,627,253 | 9,399,228 |
China Market [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 12,552,874 | $ 13,692,868 | $ 9,772,130 |
SEGMENT (Details Narrative)
SEGMENT (Details Narrative) | 12 Months Ended |
Jun. 30, 2022 Integer | |
Segment Reporting [Abstract] | |
Number of reporting segment | 1 |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 423,172 | $ 1,118,118 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Dogness Network [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 37.70% | 17.70% | |
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 57.40% | ||
Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.70% | ||
Three Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 45.20% | ||
Customers One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.50% | ||
Customers One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.40% | 32% | 27.60% |
Customers Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13% | ||
Customers Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 6.70% | 9.10% | 6.50% |
Supplier One [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 27.60% | 29.20% | |
Supplier One [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.30% | ||
Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 53.70% | 43.70% | 49% |
Customers Three [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 6.70% | 6.90% | 4.40% |
Customers Four [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 5.70% | ||
One Related Party [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 30.90% | ||
One Suppliers [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.90% | ||
Two Suppliers [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 35.10% | ||
Suppliers Two [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.80% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Lease Agreement [Member] | Aug. 30, 2022 USD ($) ft² |
Subsequent Event [Line Items] | |
Area of land | ft² | 13,600 |
Annual rent | $ | $ 81,000 |
Operating lesae percentage | 15% |
Dongguan Jiasheng [Member] | |
Subsequent Event [Line Items] | |
Ownership percentage | 58% |