| Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
| Jun. 30, 2020 |
| 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 the United States generally accepted accounting principles ("U.S. GAAP"). The accompanying consolidated financial
statements include the financial statements of CLPS and its subsidiaries. All inter-company balances and transactions have been
eliminated upon consolidation. Results of subsidiaries and businesses acquired from third parties are consolidated from the date
on which control is transferred to the Company. |
| Use of estimates and assumptions | Use of estimates and assumptions In preparing the consolidated financial
statements in conformity with U.S. 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 consolidated 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, valuation of accounts receivable, prepayments, deposits and other assets, useful lives of property and equipment and intangible
assets, goodwill impairment, the impairment of long-lived assets and investments, purchase price allocation for business combination,
relative standalone selling price of the performance obligations in the IT solution services, provision for accrued expenses and
other current liabilities, valuation allowance of deferred tax assets, provision for uncertain tax positions, fair value measurements
of equity investments without readily determinable fair values and valuation for warrants and share-based compensation. Actual
results could differ from those estimates. |
| Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist
of cash and bank deposits, which are unrestricted as to withdrawal and use. 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 All highly liquid investments with original
maturities of greater than three months, but less than twelve months, are classified as short-term investments. Short-term investments
represent investments in wealth management products placed with certain financial institutions. The principal amounts of these
products are not guaranteed. The Company classifies these wealth management products as "trading". Dividend and interest
income are included in earnings. Any realized gains or losses on the sale of the short-term investments, are determined on a specific
identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. |
| Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are carried at net
realizable value. An allowance for doubtful accounts is recorded in the period when loss is probable. The Company determines the
adequacy of a reserve 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 customer exposures,
as well as the historical trends of collections. Delinquent account balances are written-off against the allowance for doubtful
accounts after management has determined that the likelihood of collection is not probable. |
| Prepayments, deposit and other assets | Prepayments, deposit and other assets Prepayment, deposit and other assets primarily
consists of advances and deposits to suppliers for purchasing goods or services that have not been received or provided and advances
to employees. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine
whether their carrying value has become impaired. An allowance for doubtful accounts is recorded in the period when loss is probable. |
| Long-term investments | Long-term investments The Company's long-term investments
consist of equity-method investments and equity investments without readily determinable fair values. Investments in entities in which the Company
can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method
of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures ("ASC 323") For equity investments without readily
determinable fair values, the Company elects to use the measurement alternative in accordance with ASC Topic 321 , Investments-Equity
securities ("ASC 321") No impairment loss was recognized in any
of the periods presented. |
| Business combination | Business combination The Company accounts for all business
combinations under the purchase method of accounting in accordance with ASC 805, Business Combinations Business Combinations (Topic 802): Clarifying the Definition of a Business The determination and allocation of fair
values to the identifiable net assets acquired, liabilities assumed and non-controlling interest is based on various assumptions
and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations
are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions
and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk
inherent in the acquiree's current business model and industry comparisons. Although the Company believes that the assumptions
applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ
from forecasted amounts and the differences could be material. |
| Non-controlling interests | Non-controlling interests 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 results of the Company are presented on the face of the consolidated statement of comprehensive income (loss) as an allocation
of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company. |
| Property and equipment, net | Property and equipment, net Property and equipment, net, are stated
at cost less accumulated depreciation. The straight-line method is used to compute depreciation over the estimated
useful lives of the assets, as follows:
Useful life
Leasehold improvements The shorter of lease terms or the estimated useful lives
Automobiles 5 years
Equipment and office furniture 3-5 years 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 which 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 charged to the statement of comprehensive
income (loss). Direct costs that are related to the construction
of property and equipment and incurred in connection with bringing the assets to their intended use are capitalized as construction
in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences
when the assets are ready for their intended use. |
| Intangible assets, net | Intangible assets, net Intangible assets, net, are carried at
cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized
as assets separate from goodwill if they satisfy either the "contractual-legal" or "separability" criterion,
and are measured at fair value upon acquisition. Amortization is computed using the straight-line
method over the following estimated useful lives:
Useful life
Customer contracts 3 – 10 years
Customer relationship 3 – 10 years
Software 5 years The Company does not have any indefinite-lived
intangibles other than goodwill. |
| Goodwill | Goodwill Goodwill represents the excess of the consideration
over the fair value of the net assets acquired at the date of acquisition. Goodwill is not amortized but rather tested for impairment
at least annually at the reporting unit level by applying a fair-value based test in accordance with accounting and disclosure
requirements for goodwill. This test is performed by management annually or more frequently if the Company believes impairment
indicators are present. The Company had only one reporting unit (that also represented the Company's single operating segment)
as of June 30, 2020 and 2019. Goodwill was allocated 100% to the single reporting unit as of June 30, 2020 and 2019. The Company
has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test in accordance
with ASC 350-20, Intangibles - Goodwill and Other In performing the two-step quantitative
impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based
on estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting
unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Company is not required to perform further
testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Company must perform
the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. The
fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation
in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater
than its implied fair value, the excess is recognized as an impairment loss in general and administrative expenses. No impairment loss was provided for the
years ended June 30, 2020, 2019 and 2018. |
| Impairment of long-lived assets | Impairment of long-lived assets The Company reviews its long-lived assets,
other than goodwill, including property and equipment and intangible assets with definite lives for impairment whenever events
or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur,
the Company measures impairment by comparing the carrying values of the long-lived assets to the estimated undiscounted future
cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted
cash flows is less than the carrying amounts of the assets, the Company would recognize an impairment loss based on the excess
of the carrying value over the fair value of the assets. Fair value is generally determined by discounting the cash flows expected
to be generated by the asset, when the market prices are not readily available. The adjusted carrying amount of the asset becomes
the new cost basis and depreciated over the asset's remaining useful live. Long-lived assets are grouped with other assets
and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets
and liabilities for the purpose of the impairment testing. No impairment loss was provided for the
years ended June 30, 2020, 2019 and 2018. |
| Revenue recognition | Revenue recognition Effective July 1, 2019, the Company adopted
ASU 2014-09 , Revenue from contracts with Customers (Topic 606) ("ASC 606") The Company provides a comprehensive range
of IT services and solutions, which primarily are on a time-and-expense basis, or fixed-price basis. Commencing on July 1, 2019,
revenue is recognized when control of promised goods or services is transferred to the Company's customers in an amount of
consideration to which an entity expects to be entitled to in exchange for those services. The cumulative effect of initially applying
the new revenue standard resulted in a decrease to opening retained earnings of $138,644, with the impact primarily related to
the Company's customized IT solution services. Under ASC 605, the IT solution services were recognized using the percentage
of completion method of accounting; while under ASC 606, the IT solution services are recognized at a point in time when the control
of service is obtained by the customer represented by the customer acceptance received by the Company. Whereas the Company has
the enforceable right to payment for performance completed to date, revenue is recognized over time, using the output method. The effect of the adoption of ASC 606 as
of June 30, 2019 was as follows:
As of June 30, 2019
Consolidated balance sheet As Balances Effect of
Current assets
Prepayments, deposits and other assets, net $ 1,028,154 $ 1,405,004 $ 376,850
Non-current assets
Deferred tax assets, net $ 338,221 $ 384,435 $ 46,214
Current liabilities
Deferred revenues $ 124,192 $ - $ (124,192 )
Contract liabilities $ - $ 685,900 $ 685,900
Shareholders' equity
Accumulated deficits $ (4,509,729 ) $ (4,648,373 ) $ (138,644 ) The effect of the adoption of ASC 606 for
the current year was as follows:
Year ended June 30, 2020
Consolidated statement of comprehensive income Balances Balances Effect of
Revenues $ 89,415,798 $ 88,986,532 $ 429,266
Cost of revenues $ (58,296,097 ) $ (57,937,842 ) $ (358,255 )
Income (loss) before income tax and share of income (loss) in equity investees $ 3,707,459 $ 3,636,448 $ 71,011
Provision (benefits) for income taxes $ 835,444 $ 824,792 $ 10,652
Income (loss) before share of income (loss) in equity investees $ 2,872,015 $ 2,811,656 $ 60,359
Net income (loss) $ 3,079,378 $ 3,019,019 $ 60,359
Net income (loss) attributable to CLPS Incorporation's shareholders $ 2,938,239 $ 2,877,880 $ 60,359
Basic earnings per common share $ 0.20 $ 0.20 $ -
Diluted earnings per common share $ 0.20 $ 0.20 $ -
As of June 30, 2020
Consolidated balance sheet Balances Balances Effect of
Current assets
Prepayments, deposits and other assets, net $ 1,280,967 $ 1,235,174 $ 45,793
Non-current Assets
Deferred tax assets $ 203,247 $ 167,685 $ 35,562
Current liabilities
Deferred revenue $ - $ 595,538 $ (595,538 )
Contract liabilities $ 755,178 $ - $ 755,178
Shareholders' equity
Accumulated deficits $ (2,680,143 ) $ (2,601,858 ) $ (78,285 ) The Company's revenue recognition
policies effective on the adoption date of ASC 606 are as follows: Time-and-expense basis contracts Prior to the adoption of ASC 606, revenues is considered realizable
and earned in accordance with ASC 605 when all of the following criteria are met: persuasive evidence of a sales arrangement exists;
delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured.
Accordingly, revenues from time-and-expense basis contracts are recognized as the related services are rendered assuming all other
basic revenue recognition criteria are met. The Company is reimbursed for actual hours incurred at pre-agreed negotiated hourly
billing rates. Customers may terminate the contracts at any time before the work is completed but are obligated to pay the actual
service hours incurred through the termination date at the contract billing rates. Under ASC 606, the series of IT services are
substantially the same from day to day, and each day of the service is considered to be distinct and separately identifiable as
it benefits the customer daily. Further, the uncertainty related to the service consideration is resolved on a daily basis as the
Company satisfies its obligation to perform IT service daily with enforceable right to payment for performance completed to date.
Thus, revenue is recognized as service is performed and the customer simultaneously receives and consumes the benefits from the
service daily. Fixed-price basis contracts Revenues from fixed-price customized solution
contracts require the Company to perform services for systems design, planning and integrating based on customers' specific
needs which requires significant production and customization. The required customization work period is generally less than one
year. Upon delivery of the services, customer acceptance is generally required. In the same contract, the Company is generally
required to provide post-contract customer support ("PCS') for a period from three months to one year ("PCS period")
after the customized application is delivered. The type of service for PCS clause is generally not specified in the contract or
stand-ready service on when-and-if-available basis. Prior to the adoption of ASC 606, the Company
recognizes revenue proportionally over the term of the contract in accordance with ASC 605. Revenue is recognized as the service
is performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the
basis of the percentage that total labor cost to date bears to the total expected labor costs. Under ASC 606, there are two performance
obligations identified in the fixed-price basis contracts: the delivery of customized IT solution service and the completion of
the PCS. The transaction price is allocated between the two performance obligations based on the relative standalone selling price,
estimated using the cost plus method. The Company recognizes revenue for
the delivery of customized IT solution service at a point in time when the system is implemented and accepted by the
customer. Where the Company has enforceable right to payment for performance completed to date, revenue is recognized over
time, using the output method. Revenue for PCS is recognized ratably over time as the customer simultaneously receive and
consume the benefits throughout the PCS period. Differences between the timing of billings and the recognition
of revenues are recorded as contract assets which is included in the prepayments, deposits and other assets, net, or contract liabilities
on the consolidated balance sheets. Contract assets are classified as current assets and the full balance is reclassified to accounts
receivables when the right to payment becomes unconditional. The opening and closing balances of contract assets arising
from contracts with customers as of June 30, 2020 were nil and $233,149, respectively, and the opening and closing balances of
deferred contract costs arising from contracts with customers as of June 30, 2020 were $477,359 and $106,734. The opening and closing
balances of contract liabilities arising from contracts with customers as of June 30, 2020 were $685,900 and $755,178, respectively.
Revenue recognized in the year ended June 30, 2020 that was included in the contract liability balance at the beginning of the
period was $631,851. This revenue was driven primarily by IT solution service performance obligations being satisfied. Costs incurred in advance of revenue recognition arising from
direct and incremental staff costs in respect of services provided under the fixed fee contracts according to the customer's
requirements prior to the delivery of services are recorded as deferred contract costs which is included in the prepayments, deposits
and other assets, net on the consolidated balance sheets. Such deferred contract costs are recognized upon the recognition
of the related revenues. Revenue includes reimbursements of travel
and out-of-pocket expense, with equivalent amounts of expense recorded in cost of revenues. The Company is subject to value added tax
(the "VAT") that is imposed on and concurrent with the revenues earned for services provided in the PRC. The Company's
applicable value added tax rate is 6%. VAT are recorded as reduction of revenues when incurred. |
| Cost of revenues | Cost of revenues Cost of revenues mainly consisted of compensation
expenses for the Company's IT professionals, travel expenses and material costs. |
| Research and development expenses | Research and development expenses Research and development expenses are
incurred in the development of new software modules and products in conjunction with anticipated customer
projects. Technological feasibility for the Company's software products is reached before the products are
released for sale. To date, expenditures incurred after technological feasibility was established and prior to
completion of software development have not been material, and accordingly, the Company has expensed all costs when
incurred. |
| Government subsidies | Government subsidies Government subsidies mainly represent
amounts granted by local government authorities as an incentive for companies to promote development of the local technology
industry. The Company also receives government subsidies related to government sponsored projects, and records such
government subsidies as a liability when it is received. The Company records government subsidies as other income when there
is no further performance obligation. |
| Advertising expenditures | Advertising expenditures Advertising expenditures are expensed
as incurred and such expenses were minimal for all the periods presented. Advertising expenditures have been included
as part of selling and marketing expenses. |
| Operating leases | Operating leases A lease for which substantially all the
benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases
of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over
the lease term. |
| Employee defined contribution plan | Employee defined contribution plan Full time employees of the Company in
the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits,
medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor
regulations require that the Company make contributions to the government for these benefits based on a certain percentage of
the employee's salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount
is expensed as incurred. |
| Income taxes | Income taxes The Company accounts for current income
taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes 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 to reduce deferred
tax assets to the amount expected to be realized, when it is more-likely-than-not that some portion, or all, of the deferred tax
assets will not be realized. The Company accounts for uncertainties
in income taxes in accordance with ASC 740. 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 consolidated statements of comprehensive income (loss) in the period incurred. No significant penalties
or interest relating to income taxes have been incurred during the years ended June 30, 2020, 2019 and 2018. All of the tax returns
of the Company's subsidiaries in China remain subject to examination by the tax authorities for five years from the date
of filing through year 2024, and the examination period was extended to 10 years for entities qualified as High and New Technology
Enterprises ("HNTEs") in 2018 and thereafter. |
| Warrants | Warrants The Company issued warrants to certain
consultants and underwriters in May 2018 in connection with the closing of the IPO. The warrants carry a term of five years expiring
in May 2023 and are exercisable during the five-year period. The warrants are classified as equity contracts and measured at the
grant date fair value. Subsequent changes in fair value are not recognized as long as the contract continues to be classified in
equity. The Company, with the assistance of an independent third-party valuation firm, used the Black-Scholes pricing model to
estimate the fair value of warrants. The determination of estimated fair value of warrants on the grant date was mainly affected
by the Company's stock price as well as assumptions regarding a number of subjective variables. These variables include the
Company's expected stock price volatility over the expected term of the awards, a risk-free interest rate and any expected
dividends. |
| Share-based payment | Share-based payment Share awards issued to employees and directors,
including employee stock option plans ("ESOPs") and restricted share units ("RSUs") are measured at fair
value at the grant date. The Company, with the assistance of an independent third-party valuation firm, determined the fair value
of the share options granted to employees. The Company uses the binomial lattice model to estimate the fair value of ESOPs, and
uses the closing stock price at the grant date to measure the fair value of RSUs. The Company recognizes compensation expenses,
net of forfeitures, using the accelerated method over the requisite service periods. Forfeitures are estimated at the time of
grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to
estimate pre-vesting ESOPs and RSUs' forfeitures and records share-based compensation expense only for those awards that
are expected to vest. A change in any of the terms or conditions
of share-based payment awards is accounted for as a modification of awards. The Company measures the incremental compensation cost
of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately
before its terms are modified, based on the share price and other pertinent factors at the modification date. For vested awards,
the Company recognizes incremental compensation cost in the period the modification occurred. For unvested awards, the Company
recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized
compensation cost for the original award on the modification date. |
| Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is computed
using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed
using the weighted average number of common shares and potential common shares outstanding during the period, which may include
RSUs, options and warrants. The computation of diluted earnings (loss) per share does not assume conversion, exercise, or contingent
issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts) on earnings (loss)
per share. |
| Foreign currency | Foreign currency The functional currency of the Company
is US$. The functional currencies of the Company's subsidiaries are the local currency of the country in which the subsidiary
operates, which is determined based on ASC topic 830 ("ASC 830"), Foreign Currency Matters Transactions denominated in foreign currencies
are re-measured into the functional currency at the exchange rates as set forth in the H.10 statistical release of the U.S. Federal
Reserve Board prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured
at the exchange rates prevailing at the balance sheet dates. Non-monetary items that are measured in terms of historical costs
in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses
are included in the consolidated statements of comprehensive income (loss). The Company's financial statements
are reported using US$. The financial statements of the Company's subsidiaries whose functional currencies are not US$ are
translated from the functional currency to the reporting currency. Assets and liabilities are translated at the exchange rates
at the balance sheet dates, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses
are translated using the average rate for the year. Translation adjustments are reported as accumulated comprehensive income (loss)
and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income
(loss). |
| Fair value of financial instruments | Fair value of financial instruments The Company applies ASC 820, Fair Value
Measurements and Disclosures ASC 820 establishes a three-tier fair value
hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect
quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that
are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which
are supported by little or no market activity. ASC 820 describes three main approaches
to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market
approach uses prices and other relevant information generated from market transactions involving identical or comparable assets
or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The
measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based
on the amount that would currently be required to replace an asset. Financial instruments of the Company primarily
consist of cash and cash equivalents, short-term investments, accounts receivable, escrow receivable, amounts due from related
parties, equity investments without readily determinable fair values, accounts payable and other current liabilities, short-term
bank loans and long-term bank loans. The carrying amounts of these financial instruments, except for short-term investments, equity
investments without readily determinable fair values and long-term bank loans approximate their fair values because of their generally
short maturities. The fair value of the Company's trading
securities is measured using the income approach, based on quoted market interest rates of similar instruments and other significant
inputs derived from or corroborated by observable market data. The carrying amount of long-term bank loans
approximates its fair value due to the fact that the related interest rates approximate market rates for similar debt instruments
of comparable maturities. The Company measures equity investments
without readily determinable fair values and elected to use the measurement alternative at fair value on a nonrecurring basis,
in the cases of an impairment charge is recognized, fair value of an investment is remeasured in an acquisition/a disposal, and
an orderly transaction for identical or similar investments of the same issuer is identified. The non-recurring fair value measurements
to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and
obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the
investment held by the Company. The valuation methodologies involved require management to use the observable transaction price
at the transaction date and other unobservable inputs (level 3) such as volatility of comparable companies and probability of
exit events as it relates to liquidation and redemption preferences.
Fair Value Measurements as of
Quoted Price in Significant Unobservable
Fair value measurements
Recurring
Short-term investments
Trading securities $ - $ 636,934 $ -
Fair Value Measurements as of
Quoted Price in Significant Unobservable
Fair value measurements
Recurring
Short-term investments
Trading securities $ - $ 1,791,697 $ - For the year ended June 30, 2020, the Company
recognized nil gain or loss for the equity investments using the measurement alternative. As of June 30, 2019, the Company had
no financial assets and liabilities measured and recorded at fair value on a non-recurring basis. |
| Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined
as the decrease in equity of the Company during a period from transactions and other events and circumstances excluding transactions
resulting from investments by owners and distributions to owners. Accumulated other comprehensive income (loss) of the Company
includes foreign currency translation adjustments related to the Company's subsidiaries whose functional currency is not
US$. |
| Statements of cash flows | Statements of cash flows In accordance with ASC 230,
Statement of Cash Flows |
| Concentrations and risks | Concentrations and risks - Foreign
currency risk A majority of the Company's expense
transactions are denominated in Renminbi ("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 as set forth
in the H.10 statistical release of the U.S. Federal Reserve Board. Remittances in currencies other than RMB by the Company in China
must be processed through the People's Bank of China ("PBOC") or other China foreign exchange regulatory bodies
which require certain supporting documentation in order to affect the remittance. The functional currency for
the Company's PRC subsidiaries is the RMB, and the financial statements are presented in U.S. dollars. The RMB
appreciated by 2.4% in fiscal 2018, depreciated by 3.7% in fiscal 2019 and depreciated by 2.9% in fiscal 2020, respectively.
It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB
and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the
Company's financial results reported in the U.S. dollar terms without giving effect to any underlying changes in its
business or results of operations. Currently, the majority of the Company's assets, liabilities, revenues and costs are
denominated in RMB. To the extent that the Company needs to
convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against
U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company
decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments
or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available
to the Company. - Concentration of credit risk Financial instruments that potentially subject the Company to
significant concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, account receivables,
escrow receivable, note receivables, amounts due from related parties and equity investments without readily determined fair values.
As of June 30, 2020 and 2019, $11,027,764 and $1,891,584 of the Company's cash and cash equivalents was on deposit at financial
institutions in the PRC where there currently is no rule or regulation requiring such financial institutions to maintain insurance
to cover bank deposits in the event of bank failure. As of June 30, 2020, the Company and its subsidiaries had $11,027,764, $940,854,
$8,350, $516,816, $1,496, $58,789 and $98,051 of cash and cash equivalents on deposit at financial institutions in mainland China,
Singapore, Australia, Hong Kong, India, Malaysia and Japan, respectively. As of June 30, 2019, the Company had $450,388, $25,444
and $4,233,919 of cash and cash equivalents on deposit at financial institutions in Singapore, Australia and Hong Kong, respectively.
The Company continues to monitor the financial strength of the financial institutions. There has been no recent history of default
in relation to these financial institutions. The Company conducts credit evaluations
on its customers and generally does not require collateral or other security from such customers. The Company periodically evaluates
the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of
the receivables and factors surrounding the credit risk of specific customers. - Significant customers For the years ended June 30, 2020, 2019
and 2018, one customer with its affiliates accounted for 21.5%, 25.7% and 30.8% of the Company's total revenues, respectively.
For the years ended June 30, 2020 and 2019, one customer and its affiliates accounted for 30.1% and 30.0% of the Company's
total accounts receivable balance, respectively. |
| Risks and uncertainties | Risks and uncertainties The significant operations of the Company
are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced
by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's
results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company
has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including
its organization and structure disclosed in Note 1, may not be indicative of future results. |
| Recent accounting pronouncements | Recent accounting pronouncements The Jumpstart Our Business Startups Act
("JOBS Act") provides that an emerging growth company ("EGC") as defined therein can take advantage of
an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain
accounting standards until those standards would otherwise apply to private companies. The Company has adopted the extended transition
period. In February 2016, the FASB issued ASU
No. 2016-02, Leases Codification Improvements to Topic 842, Leases Leases Targeted Improvements Leases Revenue from Contracts with Customers (Topic 606) Leases (Topic 842): Effective Dates for Certain Entities, which amended the effective date of Topic 842, Leases In June 2016, the FASB issued ASU No.
2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU
2016-13 , Codification
Improvements to Topic 326, Financial Instruments—Credit Losses , Leases ("ASC 842") instead of , Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging
(Topic 815) Leases (Topic 842): Effective Dates In December 2019, the FASB issued ASU 2019-12,
Simplifying the Accounting for Income Taxes In January 2017, the FASB issued ASU
2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13,
Fair Value Measurement (Topic 820) – Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement
("ASU 2018-13") In January 2020, the
FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures
(Topic 323), and Derivatives and Hedging (Topic 815) The Company does not believe other recently
issued but not yet effective accounting statements, if recently adopted, would have a material effect on the Company's consolidated
balance sheets, statements of comprehensive income (loss) and statements of cash flows. |
