Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | E-Home Household Service Holdings Limited |
Trading Symbol | EJH |
Document Type | 20-F |
Current Fiscal Year End Date | --06-30 |
Entity Common Stock, Shares Outstanding | 44,247,198 |
Amendment Flag | false |
Entity Central Index Key | 0001769768 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40375 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | E-Home, 18/F, East Tower, Building B |
Entity Address, Address Line Two | Dongbai Center, Yangqiao Road |
Entity Address, Address Line Three | Gulou District |
Entity Address, City or Town | Fuzhou City |
Entity Address, Postal Zip Code | 350001 |
Entity Address, Country | CN |
Contact Personnel Name | Wenshan Xie |
Title of 12(b) Security | Ordinary Shares, par value $0.002 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 6706 |
Auditor Name | TPS Thayer, LLC |
Auditor Location | Sugar Land, Texas |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | E-Home, 18/F, East Tower, Building B |
Entity Address, Address Line Two | Dongbai Center, Yangqiao Road |
Entity Address, Address Line Three | Gulou District |
Entity Address, City or Town | Fuzhou City |
Entity Address, Postal Zip Code | 350001 |
Entity Address, Country | CN |
Contact Personnel Name | Wenshan Xie |
City Area Code | +86-591 |
Local Phone Number | 87590668 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 54,842,052 | $ 52,410,472 |
Accounts receivable | 877,931 | 826,683 |
Inventories | 11,058 | 246,778 |
Prepayments, deposits and other current assets | 11,265,410 | 12,282,665 |
Total current assets | 66,996,451 | 65,766,598 |
Non-current assets | ||
Property and equipment, net | 4,595,104 | 303,488 |
Intangible assets, net | 23,963 | 36,031 |
Long-term investment | 894,001 | |
Operating lease – right-of-use assets, net | 6,050,465 | 4,262,736 |
Finance lease – right-of-use assets, net | 1,117,502 | 1,346,728 |
Long-term prepayments and other non-current assets | 372,501 | 1,934,955 |
Deferred income tax assets | 442,322 | 704,262 |
Total non-current assets | 13,495,858 | 8,588,200 |
TOTAL ASSETS | 80,492,309 | 74,354,798 |
Current liabilities | ||
Accounts payable and accrued expenses | 4,598,076 | 4,357,553 |
Advance from customers | 2,251,072 | 2,993,656 |
Taxes payable | 505,674 | 2,220 |
Current maturities of operating lease liabilities | 778,742 | 87,103 |
Current maturities of finance lease liabilities | 59,736 | 59,098 |
Total current liabilities | 8,193,300 | 7,499,630 |
Long-term portion of operating lease liabilities | 1,473,093 | 2,147,252 |
Long-term portion of finance lease liabilities | 366,359 | 442,670 |
Convertible notes | 5,929,673 | |
TOTAL LIABILITIES | 15,962,425 | 10,089,552 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, $0.002 par value, 5,000,000,000 shares authorized; 2,212,360 and 1,679,078 shares issued and outstanding as of June 30, 2022 and 2021, respectively | 4,425 | 3,359 |
Additional paid-in capital | 33,452,332 | 25,542,531 |
Statutory reserve | 664,100 | 664,100 |
Retained earnings | 31,374,073 | 36,804,282 |
Accumulated other comprehensive (loss) income | (945,093) | 1,298,015 |
Total equity attributable to E-Home shareholders | 64,549,837 | 64,312,287 |
Non-controlling interest | (19,953) | (47,041) |
TOTAL SHAREHOLDERS’ EQUITY | 64,529,884 | 64,265,246 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 80,492,309 | $ 74,354,798 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.002 | $ 0.002 |
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, issued | 2,212,360 | 1,679,078 |
Ordinary shares, outstanding | 2,212,360 | 1,679,078 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | |||
Total revenues | $ 63,751,093 | $ 74,525,434 | $ 46,200,949 |
Cost of revenues | |||
Total cost of revenues | 44,394,575 | 48,311,398 | 30,101,072 |
Gross profit | 19,356,518 | 26,214,036 | 16,099,877 |
Operating expenses | |||
Sales and marketing expenses | 11,989,919 | 10,279,274 | 7,514,211 |
General and administrative expenses | 8,219,584 | 6,869,419 | 1,114,984 |
Total operating expenses | 20,209,503 | 17,148,693 | 8,629,195 |
Income (Loss) from operations | (852,985) | 9,065,343 | 7,470,682 |
Other income (expense) | |||
Interest income | 182,558 | 110,889 | 103,388 |
Interest expense | (257,766) | (25,509) | (26,447) |
Accretion of financing cost | (397,153) | ||
Fair value loss – Financial instruments | (1,996,249) | ||
Government subsidy | 7,733 | 908,051 | |
Foreign currency exchange income (loss) | (22,271) | 13,749 | (1,040) |
Total other income (loss) | (2,483,148) | 1,007,180 | 75,901 |
Income (Loss) before income taxes | (3,336,133) | 10,072,523 | 7,546,583 |
Income tax expense | (2,094,076) | (3,672,624) | (1,898,575) |
Net (loss) income | (5,430,209) | 6,399,899 | 5,648,008 |
Net (loss) income attributable to shareholders | (5,430,209) | 6,408,932 | 5,649,451 |
Net (loss) attributable to non-controlling interests | (9,033) | (1,443) | |
Net (loss) income | (5,430,209) | 6,399,899 | 5,648,008 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment, net of nil tax | (2,243,108) | 3,261,889 | (837,040) |
Total comprehensive (loss) income | $ (7,673,317) | $ 9,661,788 | $ 4,810,968 |
Net (loss) income per ordinary share - basic and diluted (in Dollars per share) | $ (2.95) | $ 4.47 | $ 3.44 |
Weighted average number of ordinary shares outstanding—basic and diluted (in Shares) | 1,838,398 | 1,432,532 | 1,400,000 |
Installation and maintenance | |||
Revenues | |||
Total revenues | $ 40,017,962 | $ 51,546,235 | $ 32,220,898 |
Cost of revenues | |||
Total cost of revenues | 26,791,434 | 32,209,179 | 19,484,927 |
Housekeeping | |||
Revenues | |||
Total revenues | 16,340,910 | 16,792,722 | 11,704,899 |
Cost of revenues | |||
Total cost of revenues | 13,411,221 | 13,435,869 | 8,901,973 |
Senior care services | |||
Revenues | |||
Total revenues | 7,392,221 | 6,038,814 | 2,060,833 |
Cost of revenues | |||
Total cost of revenues | 4,191,920 | 2,666,350 | 1,714,172 |
Sublease | |||
Revenues | |||
Total revenues | $ 147,663 | $ 214,319 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Other Comprehensive Income (Parentheticals) - $ / shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | |||
Net income per ordinary share - basic and diluted | $ (2.99) | $ 4.47 | $ 3.44 |
Weighted average number of ordinary shares outstanding—basic and diluted | 1,831,632 | 1,432,532 | 1,400,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Ordinary shares | Additional paid-in capital | Statutory reserve | Retained Earnings | Accumulated other comprehensive loss | Equity attributable to the Company’s shareholders | Non-controlling interest | Total equity |
Balance at Jun. 30, 2019 | $ 2,800 | $ 3,932,786 | $ 664,100 | $ 24,745,899 | $ (1,130,348) | $ 28,215,237 | $ (50,277) | $ 28,164,960 |
Balance (in Shares) at Jun. 30, 2019 | 1,400,000 | |||||||
Profit (loss) for the year | 5,649,451 | 5,649,451 | (1,443) | 5,648,008 | ||||
Foreign currency translation adjustment | (837,040) | (837,040) | (837,040) | |||||
Repayment to shareholders | (264,829) | (264,829) | (264,829) | |||||
Divestment of YLS | 17,226 | 17,226 | ||||||
Balance at Jun. 30, 2020 | $ 2,800 | 3,667,957 | 664,100 | 30,395,350 | (1,967,388) | 32,762,819 | (34,494) | 32,728,325 |
Balance (in Shares) at Jun. 30, 2020 | 1,400,000 | |||||||
Profit (loss) for the year | 6,408,932 | 6,408,932 | (9,033) | 6,399,899 | ||||
Foreign currency translation adjustment | 3,265,403 | 3,265,403 | (3,514) | 3,261,889 | ||||
Balance at Jun. 30, 2021 | $ 3,359 | 25,542,531 | 664,100 | 36,804,282 | 1,298,015 | 64,312,287 | (47,041) | 64,265,246 |
Balance (in Shares) at Jun. 30, 2021 | 1,679,078 | |||||||
Net Proceeds from the initial public offering | $ 558 | 21,660,735 | 21,661,293 | 21,661,293 | ||||
Net Proceeds from the initial public offering (in Shares) | 278,778 | |||||||
Shares issued to directors | $ 1 | 213,839 | 213,840 | 213,840 | ||||
Shares issued to directors (in Shares) | 300 | |||||||
Profit (loss) for the year | (5,430,209) | (5,430,209) | (5,430,209) | |||||
Foreign currency translation adjustment | (2,243,108) | (2,243,108) | (2,243,108) | |||||
Acquisition of former non-controlling interest in HAPPY | (481,446) | (481,446) | 14,558 | (466,888) | ||||
Disposal of 47% ownership in Fuzhou Fumao | 12,530 | 12,530 | ||||||
Potential acquisition of 60% ownership in Youyou | $ 270 | 1,999,821 | 2,000,091 | 2,000,091 | ||||
Potential acquisition of 60% ownership in Youyou (in Shares) | 135,141 | |||||||
Potential acquisition of 40% ownership in Lianbao | $ 582 | 3,742,676 | 3,743,258 | 3,743,258 | ||||
Potential acquisition of 40% ownership in Lianbao (in Shares) | 291,168 | |||||||
Shares issued to directors and consultants | $ 140 | 630,360 | 630,500 | 630,500 | ||||
Shares issued to directors and consultants (in Shares) | 70,000 | |||||||
Issuance of the convertible notes – equity portion | 1,472,987 | 1,472,987 | 1,472,987 | |||||
Issuance of the warrants | 345,477,000,000 | 345,477,000,000 | 345,477,000,000 | |||||
Issuance of shares for convertible note interest settlement | $ 74 | 199,926 | 200,000 | 200,000 | ||||
Issuance of shares for convertible note interest settlement (in Shares) | 36,973 | |||||||
Balance at Jun. 30, 2022 | $ 4,425 | $ 33,452,332 | $ 664,100 | $ 31,374,073 | $ (945,093) | $ 64,549,837 | $ (19,953) | $ 64,529,884 |
Balance (in Shares) at Jun. 30, 2022 | 2,212,360 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - Total equity | Jun. 30, 2022 |
Fuzhou Fumao | |
Ownership percentage | 47% |
Youyou | |
Ownership percentage | 60% |
Lianbao | |
Ownership percentage | 40% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net (loss) income | $ (5,430,209) | $ 6,399,899 | $ 5,648,008 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Income tax expense | 2,094,076 | 3,672,624 | 1,898,575 |
Interest expense | 257,767 | 25,509 | 26,447 |
Depreciation and amortization | 152,203 | 27,084 | 26,379 |
Amortization of right-of-use assets | 708,159 | 584,813 | 689,889 |
Loss on disposal of right-of-use assets | 489,178 | ||
Shares issued to directors and consultants | 630,500 | 213,840 | |
Convertible note - Accretion of financing cost | 397,153 | ||
Fair value loss – Financial instruments | 1,996,249 | ||
Changes in operating assets and liabilities | |||
Accounts receivables, net | (85,321) | 1,093,322 | (709,185) |
Inventories | 235,071 | (235,086) | |
Prepayments, deposits and other current assets | (19,980) | (4,968,939) | (772,764) |
Long-term prepayments and other non-current assets | 1,546,527 | 2,875,495 | 116,555 |
Accounts payable and accrued expenses | 3,218,541 | 2,482,455 | 174,233 |
Taxes payable | (1,326,931) | (3,989,279) | (3,281,651) |
Cash provided by operating activities | 4,373,806 | 8,670,915 | 3,816,486 |
Investing Activities | |||
Purchases of property and equipment | (4,607,297) | (261,843) | (1,600) |
Purchase of intangible assets | (42,678) | ||
Right-of-use-asset costs | (2,521,104) | (132,336) | (283,401) |
Long-term investment | (941,073) | ||
Lease principal refund | 80,531 | ||
Deposits for acquisition of land and properties | (1,816,102) | (711,308) | |
Cash paid to former non-controlling shareholders of HAPPY | (466,888) | ||
Refunds (Deposits) made for potential acquisitions | 1,136,042 | (3,400,000) | |
Cash used in provided by investing activities | (7,400,320) | (5,610,280) | (1,038,987) |
Financing Activities | |||
Net proceeds from initial public offering | 21,661,293 | ||
Distributions to shareholders | (264,829) | ||
Proceeds from convertible notes | 8,445,000 | ||
Payment of convertible notes issuance cost | (1,094,015) | ||
Cash provided by (used in) financing activities | 7,350,985 | 21,661,293 | (264,829) |
Net increase in cash and cash equivalents | 4,324,471 | 24,721,927 | 2,512,670 |
Effects of currency translation | (1,892,891) | 2,666,345 | (719,843) |
Cash and cash equivalents at beginning of year | 52,410,472 | 25,022,199 | 23,229,372 |
Cash and cash equivalents at end of year | 54,842,052 | 52,410,472 | 25,022,199 |
SUPPLEMENTAL DISCLOSURES | |||
Income taxes paid | 1,021,060 | 4,271,139 | 3,277,419 |
Interest paid | 23,250 | 25,509 | 26,447 |
Non-cash transactions | |||
Issuance of shares to directors and consultants | 630,500 | 213,840 | |
Issuance of shares for convertible note interest settlement | 200,000 | ||
Issuance of the warrants | 345,477 | ||
Youyou | |||
Non-cash transactions | |||
Issuance of shares for potential acquisition | 2,000,091 | ||
Lianbao | |||
Non-cash transactions | |||
Issuance of shares for potential acquisition | $ 3,743,258 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Jun. 30, 2022 | |
Youyou | |
Issuance of shares for acquisition of equity percentage | 60% |
Lianbao | |
Issuance of shares for acquisition of equity percentage | 40% |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS E-Home Household Service Holdings Limited (the “Company”) was incorporated as a limited company under the law of Cayman Islands on September 24, 2018. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries. The Company and its subsidiaries are hereinafter collectively referred to as “the Company”. The Company is principally engaged in the operation of household services, e.g. installation and maintenance of home appliances, housekeeping and senior care in the People’s Republic of China (the “PRC”) through on-line APP platform or call center. As described below, the Company, through a series of transactions which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented. Reorganization In preparation of its initial public offering in the United States (“IPO”), the following transactions were undertaken to reorganize the legal structure of the Company. The reorganization involved (i) the incorporation of the Company in the Cayman Islands as a holding company; (ii) the establishment of E-Home Household Service Holdings Limited (“E-Home Hong Kong”) as a wholly-owned subsidiary in Hong Kong, PRC; (iii) the establishment of E-Home Household Service Technology Co., Ltd. (“WOFE”), as a wholly-owned subsidiary of E-Home Hong Kong in Fujian, PRC; (iv) the entry by WFOE into contractual arrangements with Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (“E-Home Pingtan”) and Fuzhou Bangchang Technology Co. Ltd. (“Fuzhou Bangchang”) and their shareholders. The Company, E-Home Hong Kong and WFOE are all holding companies and had not commenced operation until this reorganization was complete. A reorganization of the Company’s legal structure was completed in February 2019. As all the entities involved in the process of the Reorganization are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interest with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. Dissolution of the Company’s variable interest entity structure On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, the company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company. Equity transfer agreements Acquisition of non-controlling interest in HAPPY On August 10, 2021, the Company’s PRC subsidiary, E-Home Pingtan entered into an equity transfer agreement to acquire the remaining 33% equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“HAPPY”) in consideration of $466,888 (RMB 3,000,000), with $54,462 (RMB 350,000) paid in August 2021 and $412,427 (RMB 2,650,000) paid in March 2022. The transaction to acquire the remaining 33% equity interests of HAPPY was closed in August 2021 and after the acquisition, E-Home Pingtan owns 100% of the equity interest of HAPPY. In USD Purchase consideration 466,888 Noncontrolling interests (14,558 ) Additional paid-in capital 481,446 466,888 Reverse stock split On October 3, 2022, the Company's board of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares (the “Reverse Stock Split”) with the market effective on October 4, 2022, such that the number of the Company's authorized preferred and ordinary shares remain unchanged, and the par value of each ordinary share is increased from US$0.0001 to US$0.002. As a result of the Reverse Stock Split, each twenty pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split. Each shareholder was entitled to receive one ordinary share in lieu of the fractional share that would have resulted from the reverse stock split. As of October 3, 2022 (immediately prior to the effective date), there were 109,042,123 ordinary shares outstanding, and the number of ordinary shares outstanding after the Reverse Stock Split was 5,453,106 shares, taking into account of the effect of rounding fractional shares into whole shares. In addition, all options and any other securities of the Company outstanding immediately prior to the Reverse Stock Split (to the extent they don’t provide otherwise) will be appropriately adjusted by dividing the number of ordinary shares into which the options and other securities are exercisable by 20 and multiplying the exercise price thereof by 20, as a result of the Reverse Stock Split. The number of ordinary shares outstanding as of June 30, 2022 and 2021 and for the years ended June 30, 2022, 2021 and 2020 were retrospectively adjusted for effect of reverse stock split on October 4, 2022. The Company’s major consolidated subsidiaries as of June 30, 2022 are as follows: Name Date of Incorporation Place of Organization % of Ownership E-Home Household Service Holdings Limited October 16, 2018 Hong Kong 100 % E-Home Household Service Technology Co., Ltd. December 5, 2018 PRC 100 % Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. April 1, 2014 PRC 100 % Fuzhou Bangchang Technology Co. Ltd. March 15, 2007 PRC 100 % Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”) October 12, 2004 PRC 100 % Fujian Happiness Yijia Family Service Co., Ltd. January 19, 2015 PRC 100 % Yaxing Human Resource Management (Pingtan)Co., Ltd. July 6, 2018 PRC 51 % Fuzhou Gulou Jiajiale Family Service Co. Ltd. February 28, 2019 PRC 100 % Yaxin Human Resource Management (Fuzhou) Co., Ltd. September 10, 2021 PRC 100 % The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES 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 accompanying consolidated financial statements include the financial statements of E-Home Household Service Holdings Limited and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation. 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 recoverability of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets and warrant valuation. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased. 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 the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts receivable Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible 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. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of June 30, 2022 and 2021, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $0 and $0. Inventories Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost and other costs related to selling the inventories. For the years ended June 30, 2022, 2021, and 2020, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets as follows: Useful Lives Buildings 20 Years Office Equipment 5 Years Electronic Equipment 5 Years Motor Vehicles 10 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 betterment 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 recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Intangible assets, net Intangible assets consist of acquired software and senior care service application developed by the Company. The Company has purchased software from third parties used for operation management and developed an application for its senior care service. Software is initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of five to ten years. Impairment of long-lived assets Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down to their estimated fair values. The carrying value of a long-lived asset is deemed not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the asset’s carrying value exceeds the sum of its undiscounted cash flows, a non-cash asset impairment charges equal to the excess of the asset’s carrying value over its estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. We measure fair value using market price indicators or, in the absence of such data, appropriate valuation technique. Leases Leases are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term. (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria meets, the lease shall be classified as an operating lease. For lessee, a lease is recognized as a right-of-use asset with a corresponding liability at lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement. The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced by any lease incentives received before lease commencement. The right-of-use asset itself is amortized on a straight-line basis unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842 effective as of the beginning of the first period presented by using a modified retrospective transition approach in the accompanying financial statements of the Company. The adoption of this standard had a material impact on the Company’s financial position, with no material impact on the results of operations and cash flows (see Note 9 and Note 10). Convertible note- cash conversion feature ASC 470, Debt Freestanding instruments-warrants Per ASC 470-20-30-2, when detachable warrants (detachable call options) are issued in conjunction with a debt instrument as consideration in purchase transactions, the amounts attributable to each class of instrument issued shall be determined separately, based on values at the time of issuance. (1) The first step in determining the proper accounting for warrants is to determine whether the equity-linked component is free standing financial instrument of embedded in a host instrument. According to the warrant agreement, the debt and warrant agreements were both entered into by the parties on December 20, 2021 and May 13,2022 warrants were issued as part of the subscription agreement with the note holders. The holder can transfer the warrant to any person or entity in accordance with the warrant agreement as long as there is a registration statement effective. The warrants can be exercised any time after issuance dates and prior to the expiration date. The debt can remain outstanding even after the warrants are exercised. Based on the above facts, the warrants should be considered as a freestanding instrument. (2) The next step is to determine whether the free-standing instrument is within the scope of ASC 480. The warrants are not within the scope of ASC 480 because the warrant is not considered a mandatorily redeemable financial instrument. The Company has no obligation to redeem the shares or settle the obligation by transferring assets. (3) The last step is to determine if the freestanding instrument should be accounted for as an equity instrument or liability within the guidance of ASC 815-40. The Company determines the value of the warrants using the Black- Scholes Option Pricing Model (“Black-Scholes”) using the stock price on the date of issuance, the risk-free interest rate associated with the life of the debt, and the volatility of the stock. Based on the above analysis, the Company concluded that the warrant shall be classified as equity and is recorded at fair value. Subsequent re-measurement is not required. Convertible debt – derivative treatment When the Company issues debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows: a) one or more underlying, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity. The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in shareholders’ equity in its statement of financial position. If the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the convertible debt derivative upon the date of issuance. If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt. The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the statement of operations. The debt discount is amortized through interest expense over the life of the debt. The Company did not identify any derivative in their convertible notes issued during the reporting period. Convertible debt – beneficial conversion feature If the conversion feature is not treated as a derivative, the Company assesses whether it is a beneficial conversion feature (“BCF”). A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible and is recorded as additional paid in capital and as a debt discount in the consolidated balance sheets. The Company amortizes the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statements of operations. The Company did not identify any BCF in their convertible notes issued during the reporting period. Fair Value of Financial Instruments The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, time deposits, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest. ASC 820 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 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of June 30, 2021 and 2020 owing to their short-term or immediate nature. Revenue Recognition The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers The Company generates revenues primarily from installation & maintenance services, housekeeping services, senior care services, sales of household appliance accessories and sales of E-watches. The Company sells its goods and services through a third-party service provider WeChat platform. The Company’s revenues are subject to value added tax (“VAT”). To record VAT payable, the Company uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606. The Company considers revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Installation& maintenance Installation and maintenance services mainly consisting of the following services: technical home installation and repair, maintenance and other after sale services. Revenues from installation and maintenance services are recognized at a point in time once the service is transferred to the customer. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price. The Company allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on the best estimate of selling price. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company acts as principal and has contracts with third-party service providers (i.e., service outlets) who acts as agents. The Company is responsible for market development and providing the customer information to the service provider, directing the outlet to provide services and coordination with the customer, while the service provider provides the door-to-door service. The price of services is set by the Company and the service provider is only responsible for collection of payments. When the Company’s end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay. If the customer is not satisfied with the chosen provider, the service provider can be re-selected. Regardless of the service provider’s performance, the Company is still liable to complete the orders. If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the end customer, the Company will communicate directly with the end customer. The service provider is not obligated to pay the Company. To minimize our risk, the service provider will remit payment of any outstanding receivables each month. Housekeeping services Housekeeping services refer to services including housecleaning and personnel staffing. Revenues from housekeeping are recognized at a point in time upon completion of services to the customer based on the relative selling price method. Senior care services Senior care services refer to services including BP, heart rate test, daily steps count, location, and track record, call for help by Wechat or phone, and other care services rendered to senior customers through an E-watch, which is given to the customers when they pay the annual fees. The customers sign a contract for the services with the Company. The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and the revenue of the services provided. Revenues from the E-watch sold are recognized at a point in time once customers receive the E-watch and the revenues from the services provided are recognized over the service period. Disaggregation of revenue from contracts with customers During the process of performing the installation and maintenance services, the Company also sells household appliance accessories such as air conditioner parts to its customers according to the customers’ needs. The Company did not sell these household appliance accessories separately. Consequently, the Company regards sales of household appliance accessories as a component of its installation and maintenance segment, but separates revenue generated from sale of household appliance accessories as a disaggregated revenue stream. The senior care services consist of the sale of E-watch and the care services. The E-watch cannot be sold to the customers solely without the care services, and the care services should be rendered by the E-watch. Consequently, the Company regards these operating activities as operating in one material segment, being the revenue of senior care services. Based on the above discussion, the Company disaggregated sales of household appliance accessories from installation and maintenance revenue and senior care services revenue into the sales of the E-watch and the care service. Sales of household appliance accessories and E-watches are recognized in revenue at a point in time while revenue from care service is recognized over a period of time. Sublease The Company subleases its operating leased right-of-use asset. For the years ended June 30, 2022, 2021 and 2020, the sublease income of operating lease right-of-use asset were $0 Cost of revenues Cost of revenues consists of service fees paid to staff, outlets, suppliers and the cost of accessories sold. Government subsidies Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies are recognized when received and all the conditions for their receipt have been met. For the years ended June 30, 2022, 2021 and 2020, the Company received government subsidies of $7,733, $908,051 and $0, respectively. The grants were recorded as other income in the consolidated financial statements. Income taxes Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be realized. Ordinary shares The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common shareholders’ equity. Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary 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 ordinary 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. There were no potentially dilutive ordinary shares during the fiscal years ended June 30, 2022, 2021 and 2020. Comprehensive income/(loss) ASC Topic 220 establishes standards for reporting comprehensive income and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events from non-owner sources. During the fiscal years ended June 30, 2022, 2021 and 2020, foreign currency translation gain (loss) adjustments of $(2,265,859), $3,261,889 and $(837,040), respectively, were recognized as a component of accumulated other comprehensive income (loss), respectively. Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The consolidated financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency 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 are included as a separate component of accumulated other comprehensive income (loss). The value of RMB against U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s consolidated financial condition in terms of U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements: June 30, June 30, June 30, Year-end spot rate US$1= 6.7114 RMB US$1= 6.4601 RMB US$1= 7.0795 RMB Average rate US$1= 6.4661 RMB US$1= 6.6076 RMB US$1= 7.0293 RMB Segment reporting Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Company’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Company’s various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. The Company’s three segments are installation & maintenance, housekeeping and senior care services. Operation of senior care services began in August 2019. The Company started generating revenue from this new segment in August 2019. Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies as of June 30, 2022 and 2021. Concentration of risks Exchange rate risks The Company’s Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of June 30, 2022 and 2021, the RMB denominated cash and cash equivalents amounted to $53,946,205 and $52,410,472, respectively. Currency convertibility risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. Risks and uncertainties The 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, this may not be indicative of future results. Recent accounting pronouncements The Company considers the applicability and impact of all 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”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Deri |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of June 30, 2022 and 2021: 2022 2021 Accounts receivable, gross $ 877,931 $ 826,683 Less: allowance for doubtful accounts - - Accounts receivable, net $ 877,931 $ 826,683 The Company recorded no allowance for doubtful accounts as of June 30, 2022 and 2021. The Company gives its customers credit periods from 30 days to 90 days and continually assesses the recoverability of uncollected accounts receivable. As of June 30, 2022 and 2021, the balances of the Company’s accounts receivable were all due within the credit periods. Management believes the balances of accounts receivable will be collected in full. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories as of June 30, 2022 and 2021 consisted of the following: 2022 2021 E-watches $ 11,058 $ 246,778 Total inventories, net $ 11,058 $ 246,778 |
Prepayments, Deposits and Other
Prepayments, Deposits and Other Current Assets | 12 Months Ended |
Jun. 30, 2022 | |
Prepayment And Other Current Assets Abstract | |
PREPAYMENTS, DEPOSITS AND OTHER CURRENT ASSETS | NOTE 5 – PREPAYMENTS, DEPOSITS AND OTHER CURRENT ASSETS Prepayments, deposits and other current assets as of June 30, 2022 and 2021 consisted of the following: 2022 2021 Deposits for potential acquisitions* $ 6,011,058 $ 3,400,000 Prepaid for marketing fee** 1,865,219 2,333,358 Performance deposits*** 2,086,003 2,167,149 Prepaid consulting services fee 545,732 2,110,000 Prepaid office deposit**** 14,006 1,931,107 Other current assets 743,392 - Prepaid income tax expenses - 315,015 Prepaid office rental fee - 26,006 Total prepayments, deposits and other current assets $ 11,265,410 $ 12,282,665 * On April 30, 2021, the Company entered into two agreements with Premium Bright Corporate Advisory Limited (“Premium”) in which Premium will find target companies for the Company to acquire in order to expand its business into financial lending services. The Company prepaid a retainer of $1,800,000 to Premium, who is still actively searching for target companies as of June 30, 2022. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in YouYou Cleaning Co., Ltd. (“Youyou”) in consideration of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). The Company paid the consideration on February 3, 2022 however, the legal formalities to transfer the control to the Company were not completed as of June 30, 2022 and recorded paid consideration of $2,464,049 as deposits paid for potential acquisition. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“Lianbao”) in consideration for 5,823,363 ordinary shares issued on March 2, 2022 of the Company at a fair value of $3,743,258 (par value of $582 and additional paid-in capital of $3,742,676). In June 2022, the Company reached an agreement with Lianbao and its controlling shareholders to terminate the acquisition since the financial position of Lianbao had changed after the equity transfer agreement being signed. In accordance with the termination agreement all related issued shares will be returned by December 31, 2022. Accordingly, the Company has recorded the $1,747,009 as other receivables based on the fair value of the shares as of June 30, 2022 to be received. For the year ended June 30, 2022, the Company recorded fair value adjustment of $1,996,249. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. The acquisition was terminated and Yuwin returned the deposit to the Company in July 2021. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the acquisition was terminated and South Pacific returned the deposit to the Company in April 2022. ** The Company entered into several agreements with its suppliers for designing, marketing, and branding services. Prepaid marketing fees are amortized during the contract periods which range from 1 year to 3 years. *** In January 2020, E-Home Pingtan entered into three agreements with three new outlets for business cooperation purposes. These refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets agreed to return the deposits to E-Home Pingtan in case of termination of the agreements. The Company terminated the agreement with one outlet and received refund of performance deposit from the outlet of $756,704 in April 2021. **** On June 20, 2021, E-Home Pingtan entered into an agreement with an unaffiliated individual to purchase an office for $4,416,120 (RMB 30,000,000). The Company prepaid $1,931,107 (RMB 12,000,000) to the individual in June 2021. The office was transferred to the Company in February 2022 and currently under renovation for daily operation use of the Company. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of June 30, 2022 and 2021: 2022 2021 Buildings $ 4,416,120 $ - Office equipment 10,266 10,665 Electronic equipment 75,466 74,845 Motor vehicles 323,490 315,964 Total property and equipment, at cost 4,825,342 401,474 Less: accumulated depreciation (230,238 ) (97,986 ) Property and equipment, net $ 4,595,104 $ 303,488 As of June 30, 2022 and 2021, there were not any pledged property or equipment. The Company recorded depreciation expense of $141,077, $16,196 and $16,856 during the years ended June 30, 2022, 2021 and 2020, respectively. For the years ended June 30, 2022, 2021 and 2020, the Company recorded no impairment losses for property and equipment. For the years ended June 30, 2022 and 2021, the Company purchased new property and equipment of $4,607,297 and $261,843, respectively. For the years ended June 30, 2022 and 2021, the Company recorded no disposal of property and equipment. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7 – INTANGIBLE ASSETS, NET Intangible assets consisted of the following as of June 30, 2022 and 2021: 2022 2021 Software $ 17,793 $ 18,485 Senior care service App 44,700 46,439 Less: accumulated amortization (38,530 ) (28,893 ) Intangible assets, net $ 23,963 $ 36,031 As of June 30, 2022 and 2021, there were no any pledged intangible assets to secure bank loans. The Company recorded amortization expense of $11,126, $10,888 and $9,523 during the years ended June 30, 2022, 2021 and 2020, respectively. For the years ended June 30, 2022, 2021 and 2020, the Company recorded no impairment losses for intangible assets. For the years ended June 30, 2022, 2021 and 2020, the Company recorded no disposal of intangible assets. Estimated future amortization expense is as follows as of June 30, 2022: Years ending June 30, Amortization 2023 $ 11,126 2024 11,126 2025 1,711 2026 - 2027 - Thereafter - $ 23,963 |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Jun. 30, 2022 | |
Long-Term Investment [Abstract] | |
LONG-TERM INVESTMENT | NOTE 8 – LONG-TERM INVESTMENT The Company initiated the divestment process during July 2021 and on September 15, 2021 formally reduced its ownership in Fuzhou Fumao from 67% to 20% by completing the registration process with local governmental authorities. As part of the divesture process, the Company made an investment in Fuzhou Fumao of RMB 6,000,000 to retain an equity percentage of 20%. As of September 15, 2021, Fuzhou Fumao had nominal operations and the Company had no significant influence, as the Company does not participate in Fuzhou Fumao’s management or daily operations. As of June 30, 2022, the Company carried the investment at its cost in the amount of $894,001. Fuzhou Fumao’s new management is principally engaged in the operation of senior care services and is cooperating with several local senior care centers and local government authorities to manage senior care centers and provide senior care related services to enhance operations. |
Operating Lease Right-of-Use As
Operating Lease Right-of-Use Assets, Net | 12 Months Ended |
Jun. 30, 2022 | |
Operating Lease Right -of-Use Assets [Abstract] | |
OPERATING LEASE RIGHT-OF-USE ASSETS, NET | NOTE 9 – OPERATING LEASE RIGHT-OF-USE ASSETS, NET Operating lease right -of-use assets, net were as follows as of June 30, 2022 and 2021: 2021 Increase/ Exchange Rate 2022 Shou Hill Valley Area $ 2,321,945 $ - $ (86,942 ) $ 2,235,003 Villas 2,291,798 - (85,814 ) 2,205,984 Base Station Tower 270,484 - (10,128 ) 260,356 Farmland* - 2,319,791 (84,788 ) 2,235,003 Office - 167,397 (6,118 ) 161,279 Total right-of-use assets, at cost 4,884,227 2,487,188 (273,790 ) 7,097,625 Less: accumulated amortization (621,491 ) (522,575 ) 96,906 (1,047,160 ) Right-of-use assets, net $ 4,262,736 $ 1,964,613 (176,884 ) $ 6,050,465 * On July 7, 2021, E-Home Pingtan entered into an agreement with an unaffiliated company and individual to obtain the right of use for farmland of 74 acers for $2,319,791 (RMB 15,000,000). The Company paid the installment of $2,319,791 (RMB 15,000,000) to the individual as of June 30, 2022. The Company recognized lease expense for the operating lease right-of-use assets Shou Hill Valley Area and Villas over the lease periods which are 20 years. The Company recognized lease expense for the operating lease right-of-use asset Base Station Tower over the lease period which is 10 years. The Company recognized lease expense for the operating lease right-of-use asset Farmland over the lease period which is 12.5 years. The Company recognized lease expense for the operating lease right-of-use asset Office over the lease period which is 3 years. |
Finance Lease Right-of-Use Asse
Finance Lease Right-of-Use Assets, Net | 12 Months Ended |
Jun. 30, 2022 | |
Finance Lease Right of Use Assets [Abstract] | |
FINANCE LEASE RIGHT-OF-USE ASSETS, NET | NOTE 10 – FINANCE LEASE RIGHT-OF-USE ASSETS, NET Finance lease right -of-use assets, net were as follows as of June 30, 2022 and 2021: 2021 Increase/ Exchange Rate 2022 Company vehicles $ 1,857,556 $ - $ (69,553 ) $ 1,788,003 Total right-of-use assets, at cost 1,857,556 - (69,553 ) 1,788,003 Less: accumulated amortization (510,828 ) (185,583 ) 25,910 (670,501 ) Right-of-use assets, net $ 1,346,728 $ (185,583 ) $ (43,643 ) $ 1,117,502 The finance lease right-of-use asset is amortized over a 10-year period. The amortization period is 10 years and the discount rate used is 4.9%. |
Long-Term Prepayments and Other
Long-Term Prepayments and Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2022 | |
Long-Term Prepayments and Other Non-Current Assets [Abstract] | |
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS | NOTE 11 – LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS Long-term prepayments and other non-current assets as of June 30, 2022 and 2021 consisted of the following: 2022 2021 Deposits paid for lease assets $ 372,501 $ 386,991 Deposits paid for land* - 1,547,964 Total $ 372,501 $ 1,934,955 * In 2019, E-Home Pingtan entered into an agreement with an unaffiliated company to purchase the right of use for land of 126 acers for RMB 80,000,000. The Company prepaid $1,547,964 (RMB 10,000,000) to the individual as of June 30, 2021. The agreement was terminated in 2022 and E-Home Pingtan received the deposit from the unaffiliated company. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Jun. 30, 2022 | |
Accounts Payable and Accrued Expenses [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 12 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following is a summary of accounts payable and accrued expenses as of June 30, 2022 and 2021: 2022 2021 Payable to suppliers $ 3,486,600 $ 3,657,700 Salary and welfare payables 412,444 614,355 Accrued expenses and other current liabilities 699,032 85,498 Total 4,598,076 4,357,553 |
Advance from Customers
Advance from Customers | 12 Months Ended |
Jun. 30, 2022 | |
Advance from Customers [Abstract] | |
ADVANCE FROM CUSTOMERS | NOTE 13 – ADVANCE FROM CUSTOMERS Advance from customers as of June 30, 2022 and 2021 consisted of the following: 2022 2021 Senior care services $ 481,783 $ 2,817,048 Housekeeping services 1,769,289 176,608 Total $ 2,251,072 $ 2,993,656 E-Home received annual fees from senior care services customers and recognized revenues over the contract period. The amounts advanced from customers from senior care services were $1,769,289 and $2,817,048 as of June 30, 2022 and 2021, respectively, which will be recognized as senior care services revenue within 12 months. E-Home received advance from housekeeping services customers and recognized revenues when services are provided. The amounts advanced from customers from housekeeping services were $481,783 and $176,608 as of June 30, 2022 and 2021, respectively, which will be recognized as housekeeping services revenue within 12 months. |
Operating Lease Liabilities
Operating Lease Liabilities | 12 Months Ended |
Jun. 30, 2022 | |
Operating Lease Liabilities Abstract | |
OPERATING LEASE LIABILITIES | NOTE 14 – OPERATING LEASE LIABILITIES Operating lease liabilities as of June 30, 2022 and 2021 consisted of the following: 2022 2021 Villas* $ 1,956,260 $ 1,951,867 Base Station Tower** 188,069 282,488 Office*** 107,506 - Total operating lease liabilities $ 2,251,835 $ 2,234,355 Analyzed for reporting purposes as: 2022 2021 Long-term portion of operating lease liabilities $ 1,473,093 $ 2,147,252 Current maturities of operating lease liabilities 778,742 87,103 Total $ 2,251,835 $ 2,234,355 The operating lease liabilities is the net present value of the remaining lease payments as of June 30, 2022 and 2021. The discount rates used for the Villas, Base Station Tower and Office were 4.1239%, 3.1365% and 2.4584%, respectively. The weighted average discount rate used for operating leases was 4.06%. The weighted average remaining lease terms for operating leases was 16.00 years. The incremental borrowing rate for the Company ranged from 3.7% to 4.8%. The Company recorded no operating lease liability for the operating lease of Shou Hill Valley Area as of June 30, 2022 and 2021, respectively, since the Company prepaid the total lease expense of $2,319,791 (RMB 15,000,000) in December 2017. The Company recorded no operating lease liability for the operating lease of Farmland as of June 30, 2022, since the Company paid the total lease expense of $2,321,945 (RMB 15,000,000) in October 2021. For the years ended June 30, 2022 and 2021, the operating lease expense were $596,988 and $2,599,697, respectively, which included the short-term operating lease expense were $259,996 and $1,589,089, respectively. * The lease agreement of Villas was entered into on December 22, 2017, bears interest at about 4.1239% and will be matured on December 31, 2037. Lease payments for this agreement are to be made every five years. As of June 30, 2022, the Company has paid $696,584 for the first installment to the lessee. ** The lease agreement of Base Station Tower was entered into on November 25, 2019, bears interest at about 3.1365% and will be matured on November 24, 2029. Lease payments for this agreement are to be made every year. As of June 30, 2022, the Company has paid $ 61,919 to the lessee. *** The lease agreement of Office was entered into on January 1, 2022, bears interest at about 2.4584% and will be matured on December 31, 2024. Lease payments for this agreement are to be made every year. As of June 30, 2022, the Company has paid $55,070 for the first installment to the lessee. Maturity analysis of operating lease liabilities as of June 30, 2022 is as follows: Operating lease payment Villas Base station tower Office Total undiscounted cash flows Discount rate at commencement 4.1239 % 3.1365 % 2.4584 % One year $ 737,551 $ 29,800 $ 55,070 $ 822,421 Two years - 29,800 55,070 84,870 Three years - 29,800 - 29,800 Four years - 29,800 - 29,800 Five years - 29,800 - 29,800 Beyond five years 1,703,743 59,600 - 1,763,343 Total undiscounted cash flows $ 2,441,294 $ 208,600 110,140 $ 2,760,034 Total financing lease liabilities 1,956,260 188,069 107,506 2,251,835 Difference between undiscounted cash flows and discounted cash flows 485,034 20,531 2,634 508,199 Maturity analysis of operating lease liabilities as of June 30, 2021 is as follows: Operating lease payment Villas Base station tower Total undiscounted cash flows Discount rate at commencement 4.1239 % 3.1365 % One year $ - $ 61,918 $ 30,959 Two years 766,242 30,959 797,201 Three years - 30,959 30,959 Four years - 30,959 30,959 Five years - 30,959 30,959 Beyond five years 1,770,020 123,836 1,862,897 Total undiscounted cash flows $ 2,536,262 $ 309,590 $ 2,783,934 Total financing lease liabilities 1,951,867 282,488 2,234,355 Difference between undiscounted cash flows and discounted cash flows 584,395 27,102 549,579 |
Finance Lease Liabilities
Finance Lease Liabilities | 12 Months Ended |
Jun. 30, 2022 | |
Finance Lease Liabilities [Abstract] | |
FINANCE LEASE LIABILITIES | NOTE 15 – FINANCE LEASE LIABILITIES Financing lease liabilities as of June 30, 2022 and 2021 consisted of the following: 2021 Increase/ (Decrease) Payment Exchange Rate Translation 2022 Company vehicles $ 425,375 $ - $ (82,292 ) $ (14,599 ) $ 328,484 Add: Unrecognized finance expense 76,393 23,250 - (2,032 ) 97,611 Total financing lease liabilities $ 501,768 $ 23,250 $ (82,292 ) $ (16,631 ) $ 426,095 Analyzed for reporting purposes as: 2022 2021 Long-term portion of finance lease liabilities $ 366,359 $ 442,670 Current maturities of finance lease liabilities 59,736 59,098 Total $ 426,095 $ 501,768 The lease agreement was entered into on September 11, 2017, bears interest at about 4.9% and will be matured on December 31, 2027. For the years ended June 30, 2022, 2021 and 2020, the amortization expense of financial lease right-of-use assets were $185,583, $181,610 and $170,714, respectively. For the years ended June 30, 2022, 2021 and 2020, the interest expense for financial lease were $26,068, $25,509 and $26,447, respectively. Maturity analysis of financial lease liabilities as of June 30, 2022 is as follows: Financial lease payments Company vehicles Discount rate at commencement 4.9 % One year $ 79,285 Two years 79,285 Three years 79,285 Four years 79,285 Five years 79,285 Beyond five years 99,106 Total undiscounted cash flows $ 495,531 Total financing lease liabilities 426,095 Difference between undiscounted cash flows and discounted cash flows 69,436 Maturity analysis of financial lease liabilities as of June 30, 2021 is as follows: Financial lease payments Company vehicles Discount rate at commencement 4.9 % One year $ 82,369 Two years 82,369 Three years 82,369 Four years 82,369 Five years 82,369 Beyond five years 185,330 Total undiscounted cash flows $ 597,175 Total financing lease liabilities 501,768 Difference between undiscounted cash flows and discounted cash flows 95,407 |
Convertible Notes
Convertible Notes | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 16 – CONVERTIBLE NOTES On December 20, 2021, the Company entered into a Securities Purchase Agreement with an institutional investor pursuant to which the Company issued an unsecured convertible promissory note with a two-year maturity (the “Convertible Note 2021”) to Investor. The Convertible Note 2021 has the original principal amount of $5,275,000 including the original issue discount of $250,000 and Investor’s legal and other transaction costs of $25,000. The Company anticipates using the proceeds for general working capital purposes. Material Terms of the Convertible Note 2021: ● Interest accrues on the outstanding balance of the Convertible Note at 8% per annum from the Purchase Price Date until the same is paid in full. All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily and shall be payable in accordance with the terms of this Convertible Note. ● Upon the occurrence of a Trigger Event, Investor may increase the outstanding balance payable under the Convertible Note by 12% or 5%, depending on the nature of such event. If the Company files to cure the Trigger Event within the required five trading days, the Triger Event will automatically become an event of default and interest will accrue at the lesser of 22% per annum or the maximum rate permitted by applicable law. The Company evaluated these trigger events and concluded to record no provision as of June 30, 2022. ● Investor may convert all or any part of the outstanding balance of the Convertible Note, at any time after six months from the issue date, into ordinary shares of the Company at a price equal to 85% multiplied by the lowest daily VWAP (Volume-Weighted Average Price) during the ten trading days immediately preceding the applicable conversion, subject to certain adjustments, an issuance cap pursuant to NASDAQ Listing Rule 5635(d) and ownership limitations specified in the Convertible Note. ● Joseph Stone Capital, LLC (“JSC”) acted as the exclusive placement agent in connection with the offering. The Company agreed to pay JSC a cash fee equal to 6.5% of the aggregate gross proceeds received by the Company in the offering as well as certain placement agent allowance and legal fees. In addition, the Company agreed to issue to JSC or its designee(s) warrants to purchase up to 157,934 ordinary shares of the Company (the “Warrants”). The Warrants have a term of five years and are exercisable at a price of $2.00 per share. ● Lender has the right at any time after the date that is six (6) months from the Purchase Price Date until the Outstanding Balance has been paid in full, at its election, to convert (“Conversion”) all or any portion of the Outstanding Balance into fully paid and non-assessable Ordinary Shares, par value $0.0001 (the “Ordinary Shares”), of Borrower (“Conversion Shares”) as per the following conversion formula: the number of Conversion Shares equals the amount being converted (the “Conversion Amount”) divided by the Conversion Price; provided, however, that in the event the Floor Price is higher than the Conversion Price, Borrower may, subject to applicable Nasdaq listing rules, either agree to lower the Floor Price (as defined below) to be equal to the applicable Conversion Price or satisfy the Conversion in cash. In accounting for the issuance of the Convertible Note 2021, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component of the Convertible Note 2021 and the warrants was $1,304,565 (equity component $1,092,460, warrants value $212,105). Equity component was determined by deducting the fair value of the liability component from the par value of the original Convertible Note 2021. Warrants value was determined with the Black Scholes model. Equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Convertible Note 2021. Debt issuance costs related to the original Convertible Note 2021 comprised of commissions paid to third party placement agent and lawyers of $667,920 which included original issue discount of $250,000, Investor’s legal and other transaction costs of $25,000 and commission of $392,920. The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2021 based on their relative values. Issuance costs attributable to the liability component were $697,771 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $182,255 and netted with the equity component in stockholders’ equity of $1,092,460 and warrant value of $212,105. On May 13, 2022, the Company entered into a Securities Purchase Agreement with an institutional investor pursuant to which the Company issued an unsecured convertible promissory note with a two-year maturity (the “Convertible Note 2022”) to Investor. The Convertible Note 2022 has the original principal amount of $3,170,000 including the original issue discount of $150,000 and Investor’s legal and other transaction costs of $20,000. The Company anticipates using the proceeds for general working capital purposes. Material Terms of the Convertible Note 2022: ● Interest accrues on the outstanding balance of the Convertible Note at 8% per annum from the Purchase Price Date until the same is paid in full. All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily and shall be payable in accordance with the terms of this Convertible Note. ● Upon the occurrence of a Trigger Event, Investor may increase the outstanding balance payable under the Convertible Note by 12% or 5%, depending on the nature of such event. If the Company files to cure the Trigger Event within the required five trading days, the Triger Event will automatically become an event of default and interest will accrue at the lesser of 22% per annum or the maximum rate permitted by applicable law. The Company evaluated these trigger events and concluded to record no provision as of June 30, 2022. ● Investor may convert all or any part of the outstanding balance of the Convertible Note, at any time after six months from the issue date, into ordinary shares of the Company at a price equal to 85% multiplied by the lowest daily VWAP (Volume-Weighted Average Price) during the ten trading days immediately preceding the applicable conversion, subject to certain adjustments, an issuance cap pursuant to NASDAQ Listing Rule 5635(d) and ownership limitations specified in the Convertible Note. ● Joseph Stone Capital, LLC (“JSC”) acted as the exclusive placement agent in connection with the offering. The Company agreed to pay JSC a cash fee equal to 6.5% of the aggregate gross proceeds received by the Company in the offering as well as certain placement agent allowance and legal fees. In addition, the Company agreed to issue to JSC or its designee(s) warrants to purchase up to 386,585 ordinary shares of the Company (the “Warrants”). The Warrants have a term of five years and are exercisable at a price of $0.49 per share. ● Lender has the right at any time after the date that is six (6) months from the Purchase Price Date until the Outstanding Balance has been paid in full, at its election, to convert (“Conversion”) all or any portion of the Outstanding Balance into fully paid and non-assessable Ordinary Shares, par value $0.0001 (the “Ordinary Shares”), of Borrower (“Conversion Shares”) as per the following conversion formula: the number of Conversion Shares equals the amount being converted (the “Conversion Amount”) divided by the Conversion Price; provided, however, that in the event the Floor Price is higher than the Conversion Price, Borrower may, subject to applicable Nasdaq listing rules, either agree to lower the Floor Price (as defined below) to be equal to the applicable Conversion Price or satisfy the Conversion in cash. In accounting for the issuance of the Convertible Note 2022, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component of the Convertible Note and the warrants was $816,765 (equity component $683,393, warrants value $133,372). Equity component was determined by deducting the fair value of the liability component from the par value of the original Convertible Note 2022. Warrants value was determined with the Black Scholes model. Equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Convertible Note 2022. Debt issuance costs related to the original Convertible Note 2022 comprised of commissions paid to third party placement agent and lawyers of $426,095 which includes original issue discount of $150,000, Investor’s legal and other transaction costs of $20,000 and commission of $256,095. The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2022 based on their relative values. Issuance costs attributable to the liability component were $438,856 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $120,611 and netted with the equity component in stockholders’ equity of $683,393 and warrant value of $133,372. Net carrying amount of the liability component Convertible Notes dated as of June 30, 2022 were as following: Principal outstanding Unamortized cost Net carrying Convertible Note 2021 $ 5,275,000 $ (1,405,654 ) $ 3,869,346 Convertible Note 2022 3,170,000 (1,109,673 ) 2,060,327 Convertible Notes - liability portion $ 8,445,000 $ (2,515,327 ) $ 5,929,673 Net carrying amount of the equity component of the Convertible Notes as of June 30, 2022 were as following: Amount allocated Issuance cost Equity net Convertible Note 2021 $ 1,092,460 $ (182,255 ) $ 910,205 Convertible Note 2022 683,393 (120,611 ) 562,782 Convertible Notes – equity portion $ 1,775,853 $ (302,866 ) $ 1,472,987 Amortization of issuance cost, debt discount and interest cost for the year ended June 30, 2022 were as follows: Issuance costs Convertible Total Convertible Note 2021 $ 384,577 $ 227,465 $ 612,042 Convertible Note 2022 12,576 7,051 19,627 Convertible Notes $ 397,543 $ 234,516 $ 631,669 The effective interest rate to d erive the liability component fair value were 33.10% and 34.51% for Convertible Note 2021 and Convertible Note 2022, respectively. |
Warrants
Warrants | 12 Months Ended |
Jun. 30, 2022 | |
Warrants [Abstract] | |
Warrants | Note 17- Warrants On December 20, 2021 and May 13, 2022, The Company issued warrants to settle the commission of the agent in connection with the issuance of the convertible notes during the year ended June 30, 2022. The warrants entitle the holder to purchase 157,934 ordinary shares of our common stock at an exercise price equal to $2 per share and 386,585 ordinary shares of our common stock at an exercise price equal to $0.49 per share, respectively, at any time within a term of five year after issuance. The Company determined that these warrants are free standing financial instruments that are legally detachable and separately exercisable from the common stock of the Company. In accordance with the accounting guidance, the outstanding warrants are recognized as additional paid in capital (APIC) on the balance sheet and are measured at their inception date fair value. For the years ended June 30, 2022 and 2021, the Company had approximately 544,529 and 0 warrants outstanding, respectively at an average exercise price between $0.49 and $2 and there were zero warrants exercised or repurchased. For the years ended June 30, 2022, 2021 and 2020 the Company recognized an accretion of debt discount related to warrants expense of approximately $345,477, 0 and 0, respectively. The 2021 warrants were valued using the Black-Scholes value option pricing model with the following inputs: volatility of 117%; risk-free interest rate of 2.04%; expected term of 5 years; exercise price $0.49 and 0% dividend yield. The 2022 warrants were valued using the Black-Scholes value option pricing model with the following inputs: volatility of 129%; risk-free interest rate of 0.27%; expected term of 5 years; exercise price $2 and 0% dividend yield. |
Taxes
Taxes | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 18 – TAXES The Company is registered in the Cayman Islands. The Company generated substantially all of its income/ (loss) from its PRC operations for the years ended June 30, 2022, 2021 and 2 Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong E-Home Hong Kong is not subject to tax on income or capital gain since there has no operations in Hong Kong for the years ended June 30, 2022, 2021 and 2020. PRC Income Tax On March 16, 2007, the National People’s Congress of PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to enterprise income tax (“EIT”) at a uniform rate of 25%. The EIT Law became effective on January 1, 2008. 25% tax rates apply to all the PRC operation subsidiaries in the Company. The PRC State Taxation Administration has examined the Company’s income tax returns through the year ended on June 30, 2022. However, the Company’s enterprise income tax is subject to examination by the PRC State Taxation Administration as needed after it is filed. The provision for income tax for the years ended June 30, 2022, 2021 and 2020, consisted of the following: 2022 2021 2020 Current income tax provision $ 1,849,570 $ 2,968,362 $ 2,251,672 Deferred income tax provision 244,506 704,262 353,097 Total $ 2,094,076 $ 3,672,624 $ 1,898,575 The following table sets forth reconciliation between the statutory EIT rate and the effective tax for the years ended June 30, 2022, 2021 and 2020, respectively: 2022 2021 2020 Income before income taxes $ 8,335,041 $ 10,072,523 $ 7,546,583 Provision for income taxes at statutory tax rate in the PRC 2,083,760 3,660,090 1,886,646 Effect of expense for which no income tax is deductible 10,316 12,534 11,929 Income tax expense $ 2,094,076 $ 3,672,624 $ 1,898,575 The significant components of deferred tax assets as of June 30, 2022 and 2021 were as follows: 2022 2021 Deferred tax assets Advanced from customers $ 442,322 704,262 Total $ 442,322 704,262 Value Added Tax (“VAT”) Business tax changed to VAT in China since May 1, 2016. The Company’s revenue of installation is subject to a VAT rate of 11%. The maintenance and accessories sales were subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019. According to the regulations (Fiscal and Tax [2016] 36), no VAT will be levied if an enterprise provides employee-based household services. E-Home Pingtan applied for the tax exemption in July 2017 and was approved by the State Administration of Taxation (China), so the VAT rate of installation, maintenance, after-sales and cleaning service is nil Taxes payable The Company’s taxes payable as of June 30, 2022 and 2021, consisted of the following: 2022 2021 Income tax payable $ 495,009 $ - VAT payable 9,725 332 Other tax payables 940 1,888 Total $ 505,674 $ 2,220 |
Equity
Equity | 12 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 19 - EQUITY Ordinary Shares At the reorganization event described in Note 1, the Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in E-Home Pingtan from the former shareholders to WFOE. Prior to the reorganization, the Company had $3,620,757 and $3,885,586 in contributed ownership as of June 30, 2019 and 2018, respectively. The reorganization has been accounted for at historical cost and prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company. On May 23, 2019, the Company split its 50,000 ordinary shares into 500,000,000 ordinary shares. The authorized ordinary shares became 500,000,000 shares and the par value changed from US$1 to US$0.0001. As part of its reorganization and on May 23, 2019, the Company surrendered 472,000,000 ordinary shares. As a result, the Company has 28,000,000 ordinary shares issued and outstanding. On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, the company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company. On May 18, 2021, the Company completed the closing of its initial public offering of 5,575,556 ordinary shares at a public offering price of $4.50 per ordinary share, including 20,000 ordinary shares issued upon the partial exercise of the over-allotment option by Joseph Stone Capital, LLC, who acted as the representative of underwriters for the initial public offering. The total gross proceed from the initial public offering was approximately $25.1 million before underwriting commissions and offering expenses. The total net proceed from the initial public offering was $21,661,293 (par value of $558 and additional paid-in capital of $21,660,735) after deducting the financing expenses directly related to the initial public offering. On June 21, 2021, the Company granted 6,000 ordinary shares to three of its independent directors (2,000 shares for each director) as their compensations at a fair value of $213,840 (par value of $1 and additional paid-in capital of $213,839). On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in Youyou in consideration of in consideration for the sum of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company. On February 3, 2022, the Company issued 2,702,826 ordinary shares to the former controlling shareholders of Youyou at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Lianbao in consideration of in consideration for 5,823,363 ordinary shares of the Company. On March 2, 2022, the Company issued 5,823,363 ordinary shares to the former controlling shareholders of Lianbao. On March 18, 2022, the Company granted 400,000 ordinary shares to its consultants as their compensations at a fair value of $308,000 (par value of $40 and additional paid-in capital of $307,960). On June 22, 2022, the Company granted 1,000,000 ordinary shares to its directors as their compensations at a fair value of $322,500 (par value of $100 and additional paid-in capital of $322,400). Statutory Reserve The Company is 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 GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The reserved amounts as determined pursuant to PRC statutory laws totaled $664,100 and $664,100 as of June 30, 2022 and 2021. Dividends Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with US GAAP. The Company’s ability to pay dividends is primarily from cash received from its operating activities in PRC. For the years ended June 30, 2022 and 2021, there were no Company dividend declared. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 20 –REVENUE The Company disaggregated sales of household appliance accessories from installation and maintenance revenue and senior care services revenue into the sales of the E-watch and the care service. Sales of household appliance accessories and E-watches are recognized in revenue at a point in time while revenue from care service is recognized over a period of time. Deferred portion of senior care service is recorded as a liability (advances from customers) in the company’s balance sheet. 2022 2021 Installation and maintenance $ 37,531,466 $ 48,164,931 Sales of household appliance accessories 2,486,496 3,381,304 Housekeeping 16,340,910 16,792,722 Senior care services 5,259,977 4,710,645 Sales of E-watch 2,132,244 1,328,169 Sublease - 147,663 Total $ 63,751,093 $ 74,525,434 |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 21 – SEGMENT INFORMATION Operating segments are reported in a manner consistent with the internal reporting provided to the management for decision making. Management has identified three operating segments which are installation and maintenance, housekeeping and senior care services. Operations for senior care services began in August 2019. The Company started generating revenue from this new segment in August 2019. These operating segments are monitored and strategic decisions are made on the basis of segmental profit margins. Segment profit is defined as net sales reduced by cost of revenue and other related operating expenses. The results are shown as follows for the years ended June 30, 2022, 2021 and 2020: Revenue 2022 2021 2020 Installation and Maintenance $ 40,017,962 $ 51,546,235 $ 32,220,898 Housekeeping 16,340,910 16,792,722 11,704,899 Senior care services 7,392,221 6,038,814 2,060,833 Sublease - 147,663 214,319 Total $ 63,751,093 $ 74,525,434 $ 46,200,949 Cost of revenue 2022 2021 2020 Installation and Maintenance $ 26,791,434 $ 32,209,179 $ 19,484,927 Housekeeping 13,411,221 13,435,869 8,901,973 Senior care services 4,191,920 2,666,350 1,714,172 Sublease - - - Total $ 44,394,575 $ 48,311,398 $ 30,101,072 Gross profit 2022 2021 2020 Installation and Maintenance $ 13,226,528 $ 19,337,056 $ 12,735,971 Housekeeping 2,929,689 3,356,853 2,802,926 Senior care services 3,200,301 3,372,464 346,661 Sublease - 147,663 214,319 Total $ 19,356,518 $ 26,214,036 $ 16,099,877 Sales and marketing expenses 2022 2021 2020 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 9,221,124 10,279,274 7,514,211 Total $ 9,221,124 $ 10,279,274 $ 7,514,211 General and administrative expenses 2022 2021 2020 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 10,073,654 6,869,419 1,114,984 Total $ 10,073,654 $ 6,869,419 $ 1,114,984 Current assets 2022 2021 Installation and Maintenance $ - $ - Housekeeping - - Senior care services - - Sublease - - Unallocated current assets 67,864,923 65,766,598 Total $ 67,864,923 $ 65,766,598 Non-current assets 2022 2021 Installation and Maintenance $ - $ - Housekeeping - - Senior care services 4,301,543 4,966,998 Sublease - - Unallocated non-current assets 7,138,112 3,621,202 Total $ 11,439,655 $ 8,588,200 On account of the Company’s business model, assets, operating expense, profit or loss, liabilities and other material items could not be separated into each operating segment. As the Company’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 22 – COMMITMENTS AND CONTINGENCIES As of June 30, 2022, the Company had following lease commitments under non-cancelable agreements: Future Lease Payments Operating Lease Finance Lease Total July 2022 to June 2023 $ 822,421 $ 79,285 $ 901,706 July 2023 to June 2024 84,870 79,285 164,155 July 2024 to June 2025 29,800 79,285 109,085 July 2025 to June 2026 29,800 79,285 109,085 July 2026 to June 2027 29,800 79,285 109,085 Thereafter 1,763,343 99,106 1,862,449 Total $ 2,760,034 $ 495,531 $ 3,255,565 |
Customer and Supplier Concentra
Customer and Supplier Concentration | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER AND SUPPLIER CONCENTRATION | NOTE 23 – CUSTOMER AND SUPPLIER CONCENTRATION Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchase. The Company’s sales are made to customers that are located primarily in China. For the years ended June 30, 2022, 2021 and 2020, no individual customer or supplier accounted for more than 10% of the Company’s total revenues or purchase. As of June 30, 2022, 2021 and 2020, no individual customer or supplier accounted for more than 10% of the total outstanding accounts receivable or accounts payable balance. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 24 – RELATED PARTY BALANCES AND TRANSACTIONS As of June 30, 2022 and 2021, the Company had $108,761 and $30,925 payable balances to Mr. Wenshan Xie, one of its major shareholders, for purchase of goods and services. During the year ended June 30, 2022, Mr. Xie made payment of $419,619 for purchase of goods and services for the Company and the Company repaid $337,629 to Mr. Xie. During the year ended June 30, 2021, Mr. Xie made payment of $63,975 for purchase of goods and services for the Company and the Company repaid $24,575 to Mr. Xie. During the year ended June 30, 2020, the Company paid $8,475 in advance to Mr. Xie for purchase of goods and services. On June 22, 2022, the Company granted 1,000,000 ordinary shares to its directors as their compensations at a fair value of $322,500 (par value of $100 and additional paid-in capital of $322,400). On June 21, 2021, the Company granted 6,000 ordinary shares to three of its independent directors (2,000 shares for each director) as their compensations at a fair value of $213,840 (par value of $1 and additional paid-in capital of $213,839). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 – SUBSEQUENT EVENTS Equity transfer agreements On June 14, 2022, the Company and its wholly owned Hong Kong subsidiary, E-Home Household Service Holdings Limited (“E-Home Hong Kong”) entered into an equity transfer agreement with Zhongrun (Fujian) Pharmaceutical Co., Ltd., a limited liability company established in China (“Zhongrun”) and Ms. Ling Chen, the sole shareholder of Zhongrun, pursuant to which Ms. Chen agreed to transfer 55% of the equity interests in Zhongrun to E-Home Hong Kong, in consideration for the sum of (i) RMB3 million (approximately $0.45 million) in cash and (ii) 28,041,992 ordinary shares of the Company. On July 8, 2022, the Company issued 28,041,992 ordinary shares according to the equity transfer agreement at a fair value of $8,496,724 (par value of $2,804 and additional paid-in capital of $8,493,919). As of the date of these consolidated financial statements, the Company is still evaluating the purchase price allocation for this business combination . Reverse stock split On September 23, 2022, the Company's board of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares (the “Reverse Stock Split”) with the market effective on October 4, 2022, such that the number of the Company's authorized preferred and ordinary shares remain unchanged, and the par value of each ordinary share is increased from US$0.0001 to US$0.002. As a result of the Reverse Stock Split, each twenty pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split. Each shareholder was entitled to receive one ordinary share in lieu of the fractional share that would have resulted from the reverse stock split. As of October 3, 2022 (immediately prior to the effective date), there were 109,042,123 ordinary shares outstanding, and the number of ordinary shares outstanding after the Reverse Stock Split was 5,453,106 shares, taking into account of the effect of rounding fractional shares into whole shares. In addition, all options and any other securities of the Company outstanding immediately prior to the Reverse Stock Split (to the extent they don’t provide otherwise) will be appropriately adjusted by dividing the number of ordinary shares into which the options and other securities are exercisable by 20 and multiplying the exercise price thereof by 20, as a result of the Reverse Stock Split. Other subsequent events On July 30, 2022, the Company’s board of directors approved proposal per Mr. Xie to acquire 100% of the equity interests of Fujian Chuangying Business Science and Technology Co., Ltd. (“Chuangying”) and Fuzhou Funeng Enterprise Management Consulting Co., Ltd. and Fujian Weizhixing Technology Co., Ltd (“the Chuangying’s Subsidiaries”) from Lin Jianying (“Mr.Lin”). The acquisition has not happened as of the report date, while the details of the acquisitions were still under discussion between the Company and the acquiree. On August 15, 2022, the Company’s board of directors approved proposal per Mr.Xie regarding financing by the Company in the amount of $3,600,000.00 through the issuance and sale to Multi Rise Holdings Limited, a British Virgin Islands company, of 16,363,636 ordinary shares of the Company, par value $0.0001 per share, at a per share purchase price of $0.22, pursuant to a securities purchase agreement. The financing has not happened as of the report date. On September 19, 2022, the Company’s board of directors approved proposal per Mr.Xie for issuance and sale of the Company's ordinary shares up to an aggregate offering price of US$12,300,000' that the Company may sell to White Lion Capital LLC from time to time at the Company's sole discretion over the commitment period, plus an aggregate of 1,329,729 of Ordinary Shares issuable to the Investor as commitment fee pursuant to the Purchase Agreement. The Company entered into an ordinary share purchase agreement with the Investor dated September 14, 2022, a copy of which had been distributed to the Directors before the meeting. The purchase and issuance have not happened as of the report date. In accordance with ASC 855-10, the Company evaluated all events and transactions that occurred after June 30, 2022 up through the date the Company issued these financial statements on November 4, 2022 and concluded that no other material subsequent events except for the disclosed above. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of consolidation | 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 accompanying consolidated financial statements include the financial statements of E-Home Household Service Holdings Limited and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation. |
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 recoverability of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets and warrant valuation. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased. 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 the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts receivable | Accounts receivable Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible 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. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of June 30, 2022 and 2021, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $0 and $0. |
Inventories | Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost and other costs related to selling the inventories. For the years ended June 30, 2022, 2021, and 2020, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets as follows: Useful Lives Buildings 20 Years Office Equipment 5 Years Electronic Equipment 5 Years Motor Vehicles 10 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 betterment 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 recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Intangible assets, net | Intangible assets, net Intangible assets consist of acquired software and senior care service application developed by the Company. The Company has purchased software from third parties used for operation management and developed an application for its senior care service. Software is initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of five to ten years. |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down to their estimated fair values. The carrying value of a long-lived asset is deemed not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the asset’s carrying value exceeds the sum of its undiscounted cash flows, a non-cash asset impairment charges equal to the excess of the asset’s carrying value over its estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. We measure fair value using market price indicators or, in the absence of such data, appropriate valuation technique. |
Leases | Leases Leases are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term. (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria meets, the lease shall be classified as an operating lease. For lessee, a lease is recognized as a right-of-use asset with a corresponding liability at lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement. The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced by any lease incentives received before lease commencement. The right-of-use asset itself is amortized on a straight-line basis unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842 effective as of the beginning of the first period presented by using a modified retrospective transition approach in the accompanying financial statements of the Company. The adoption of this standard had a material impact on the Company’s financial position, with no material impact on the results of operations and cash flows (see Note 9 and Note 10). |
Convertible note- cash conversion feature | Convertible note- cash conversion feature ASC 470, Debt |
Freestanding instruments-warrants | Freestanding instruments-warrants Per ASC 470-20-30-2, when detachable warrants (detachable call options) are issued in conjunction with a debt instrument as consideration in purchase transactions, the amounts attributable to each class of instrument issued shall be determined separately, based on values at the time of issuance. (1) The first step in determining the proper accounting for warrants is to determine whether the equity-linked component is free standing financial instrument of embedded in a host instrument. According to the warrant agreement, the debt and warrant agreements were both entered into by the parties on December 20, 2021 and May 13,2022 warrants were issued as part of the subscription agreement with the note holders. The holder can transfer the warrant to any person or entity in accordance with the warrant agreement as long as there is a registration statement effective. The warrants can be exercised any time after issuance dates and prior to the expiration date. The debt can remain outstanding even after the warrants are exercised. Based on the above facts, the warrants should be considered as a freestanding instrument. (2) The next step is to determine whether the free-standing instrument is within the scope of ASC 480. The warrants are not within the scope of ASC 480 because the warrant is not considered a mandatorily redeemable financial instrument. The Company has no obligation to redeem the shares or settle the obligation by transferring assets. (3) The last step is to determine if the freestanding instrument should be accounted for as an equity instrument or liability within the guidance of ASC 815-40. The Company determines the value of the warrants using the Black- Scholes Option Pricing Model (“Black-Scholes”) using the stock price on the date of issuance, the risk-free interest rate associated with the life of the debt, and the volatility of the stock. Based on the above analysis, the Company concluded that the warrant shall be classified as equity and is recorded at fair value. Subsequent re-measurement is not required. |
Convertible debt – derivative treatment | Convertible debt – derivative treatment When the Company issues debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows: a) one or more underlying, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity. The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in shareholders’ equity in its statement of financial position. If the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the convertible debt derivative upon the date of issuance. If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt. The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the statement of operations. The debt discount is amortized through interest expense over the life of the debt. The Company did not identify any derivative in their convertible notes issued during the reporting period. |
Convertible debt – beneficial conversion feature | Convertible debt – beneficial conversion feature If the conversion feature is not treated as a derivative, the Company assesses whether it is a beneficial conversion feature (“BCF”). A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible and is recorded as additional paid in capital and as a debt discount in the consolidated balance sheets. The Company amortizes the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statements of operations. The Company did not identify any BCF in their convertible notes issued during the reporting period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, time deposits, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest. ASC 820 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 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of June 30, 2021 and 2020 owing to their short-term or immediate nature. |
Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers The Company generates revenues primarily from installation & maintenance services, housekeeping services, senior care services, sales of household appliance accessories and sales of E-watches. The Company sells its goods and services through a third-party service provider WeChat platform. The Company’s revenues are subject to value added tax (“VAT”). To record VAT payable, the Company uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606. The Company considers revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Installation& maintenance Installation and maintenance services mainly consisting of the following services: technical home installation and repair, maintenance and other after sale services. Revenues from installation and maintenance services are recognized at a point in time once the service is transferred to the customer. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price. The Company allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on the best estimate of selling price. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company acts as principal and has contracts with third-party service providers (i.e., service outlets) who acts as agents. The Company is responsible for market development and providing the customer information to the service provider, directing the outlet to provide services and coordination with the customer, while the service provider provides the door-to-door service. The price of services is set by the Company and the service provider is only responsible for collection of payments. When the Company’s end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay. If the customer is not satisfied with the chosen provider, the service provider can be re-selected. Regardless of the service provider’s performance, the Company is still liable to complete the orders. If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the end customer, the Company will communicate directly with the end customer. The service provider is not obligated to pay the Company. To minimize our risk, the service provider will remit payment of any outstanding receivables each month. Housekeeping services Housekeeping services refer to services including housecleaning and personnel staffing. Revenues from housekeeping are recognized at a point in time upon completion of services to the customer based on the relative selling price method. Senior care services Senior care services refer to services including BP, heart rate test, daily steps count, location, and track record, call for help by Wechat or phone, and other care services rendered to senior customers through an E-watch, which is given to the customers when they pay the annual fees. The customers sign a contract for the services with the Company. The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and the revenue of the services provided. Revenues from the E-watch sold are recognized at a point in time once customers receive the E-watch and the revenues from the services provided are recognized over the service period. Disaggregation of revenue from contracts with customers During the process of performing the installation and maintenance services, the Company also sells household appliance accessories such as air conditioner parts to its customers according to the customers’ needs. The Company did not sell these household appliance accessories separately. Consequently, the Company regards sales of household appliance accessories as a component of its installation and maintenance segment, but separates revenue generated from sale of household appliance accessories as a disaggregated revenue stream. The senior care services consist of the sale of E-watch and the care services. The E-watch cannot be sold to the customers solely without the care services, and the care services should be rendered by the E-watch. Consequently, the Company regards these operating activities as operating in one material segment, being the revenue of senior care services. Based on the above discussion, the Company disaggregated sales of household appliance accessories from installation and maintenance revenue and senior care services revenue into the sales of the E-watch and the care service. Sales of household appliance accessories and E-watches are recognized in revenue at a point in time while revenue from care service is recognized over a period of time. Sublease The Company subleases its operating leased right-of-use asset. For the years ended June 30, 2022, 2021 and 2020, the sublease income of operating lease right-of-use asset were $0 |
Cost of revenues | Cost of revenues Cost of revenues consists of service fees paid to staff, outlets, suppliers and the cost of accessories sold. |
Government subsidies | Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies are recognized when received and all the conditions for their receipt have been met. For the years ended June 30, 2022, 2021 and 2020, the Company received government subsidies of $7,733, $908,051 and $0, respectively. The grants were recorded as other income in the consolidated financial statements. |
Income taxes | Income taxes Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be realized. |
Ordinary shares | Ordinary shares The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common shareholders’ equity. |
Related parties | Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary 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 ordinary 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. There were no potentially dilutive ordinary shares during the fiscal years ended June 30, 2022, 2021 and 2020. |
Comprehensive income/(loss) | Comprehensive income/(loss) ASC Topic 220 establishes standards for reporting comprehensive income and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events from non-owner sources. During the fiscal years ended June 30, 2022, 2021 and 2020, foreign currency translation gain (loss) adjustments of $(2,265,859), $3,261,889 and $(837,040), respectively, were recognized as a component of accumulated other comprehensive income (loss), respectively. |
Foreign currency translation | Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The consolidated financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency 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 are included as a separate component of accumulated other comprehensive income (loss). The value of RMB against U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s consolidated financial condition in terms of U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements: June 30, June 30, June 30, Year-end spot rate US$1= 6.7114 RMB US$1= 6.4601 RMB US$1= 7.0795 RMB Average rate US$1= 6.4661 RMB US$1= 6.6076 RMB US$1= 7.0293 RMB |
Segment reporting | Segment reporting Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Company’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Company’s various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. The Company’s three segments are installation & maintenance, housekeeping and senior care services. Operation of senior care services began in August 2019. The Company started generating revenue from this new segment in August 2019. |
Commitments and contingencies | Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies as of June 30, 2022 and 2021. |
Concentration of risks | Exchange rate risks The Company’s Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of June 30, 2022 and 2021, the RMB denominated cash and cash equivalents amounted to $53,946,205 and $52,410,472, respectively. Currency convertibility risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. |
Risks and Uncertainties | Risks and uncertainties The 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, this may not be indicative of future results. |
Recent accounting pronouncements | Recent accounting pronouncements The Company considers the applicability and impact of all 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”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning July 1, 2022. Early adoption is permitted. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity, and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. Early adoption is permitted. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. 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. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of acquisition of non-controlling interest | In USD Purchase consideration 466,888 Noncontrolling interests (14,558 ) Additional paid-in capital 481,446 466,888 |
Schedule of major consolidated subsidiaries | Name Date of Incorporation Place of Organization % of Ownership E-Home Household Service Holdings Limited October 16, 2018 Hong Kong 100 % E-Home Household Service Technology Co., Ltd. December 5, 2018 PRC 100 % Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. April 1, 2014 PRC 100 % Fuzhou Bangchang Technology Co. Ltd. March 15, 2007 PRC 100 % Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”) October 12, 2004 PRC 100 % Fujian Happiness Yijia Family Service Co., Ltd. January 19, 2015 PRC 100 % Yaxing Human Resource Management (Pingtan)Co., Ltd. July 6, 2018 PRC 51 % Fuzhou Gulou Jiajiale Family Service Co. Ltd. February 28, 2019 PRC 100 % Yaxin Human Resource Management (Fuzhou) Co., Ltd. September 10, 2021 PRC 100 % |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of the assets | Useful Lives Buildings 20 Years Office Equipment 5 Years Electronic Equipment 5 Years Motor Vehicles 10 Years |
Schedule of outlines the currency exchange rates | June 30, June 30, June 30, Year-end spot rate US$1= 6.7114 RMB US$1= 6.4601 RMB US$1= 7.0795 RMB Average rate US$1= 6.4661 RMB US$1= 6.6076 RMB US$1= 7.0293 RMB |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | 2022 2021 Accounts receivable, gross $ 877,931 $ 826,683 Less: allowance for doubtful accounts - - Accounts receivable, net $ 877,931 $ 826,683 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | 2022 2021 E-watches $ 11,058 $ 246,778 Total inventories, net $ 11,058 $ 246,778 |
Prepayments, Deposits and Oth_2
Prepayments, Deposits and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Prepayment And Other Current Assets Abstract | |
Schedule of prepayments, deposits and other current assets | 2022 2021 Deposits for potential acquisitions* $ 6,011,058 $ 3,400,000 Prepaid for marketing fee** 1,865,219 2,333,358 Performance deposits*** 2,086,003 2,167,149 Prepaid consulting services fee 545,732 2,110,000 Prepaid office deposit**** 14,006 1,931,107 Other current assets 743,392 - Prepaid income tax expenses - 315,015 Prepaid office rental fee - 26,006 Total prepayments, deposits and other current assets $ 11,265,410 $ 12,282,665 * On April 30, 2021, the Company entered into two agreements with Premium Bright Corporate Advisory Limited (“Premium”) in which Premium will find target companies for the Company to acquire in order to expand its business into financial lending services. The Company prepaid a retainer of $1,800,000 to Premium, who is still actively searching for target companies as of June 30, 2022. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in YouYou Cleaning Co., Ltd. (“Youyou”) in consideration of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). The Company paid the consideration on February 3, 2022 however, the legal formalities to transfer the control to the Company were not completed as of June 30, 2022 and recorded paid consideration of $2,464,049 as deposits paid for potential acquisition. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“Lianbao”) in consideration for 5,823,363 ordinary shares issued on March 2, 2022 of the Company at a fair value of $3,743,258 (par value of $582 and additional paid-in capital of $3,742,676). In June 2022, the Company reached an agreement with Lianbao and its controlling shareholders to terminate the acquisition since the financial position of Lianbao had changed after the equity transfer agreement being signed. In accordance with the termination agreement all related issued shares will be returned by December 31, 2022. Accordingly, the Company has recorded the $1,747,009 as other receivables based on the fair value of the shares as of June 30, 2022 to be received. For the year ended June 30, 2022, the Company recorded fair value adjustment of $1,996,249. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. The acquisition was terminated and Yuwin returned the deposit to the Company in July 2021. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the acquisition was terminated and South Pacific returned the deposit to the Company in April 2022. ** The Company entered into several agreements with its suppliers for designing, marketing, and branding services. Prepaid marketing fees are amortized during the contract periods which range from 1 year to 3 years. *** In January 2020, E-Home Pingtan entered into three agreements with three new outlets for business cooperation purposes. These refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets agreed to return the deposits to E-Home Pingtan in case of termination of the agreements. The Company terminated the agreement with one outlet and received refund of performance deposit from the outlet of $756,704 in April 2021. **** On June 20, 2021, E-Home Pingtan entered into an agreement with an unaffiliated individual to purchase an office for $4,416,120 (RMB 30,000,000). The Company prepaid $1,931,107 (RMB 12,000,000) to the individual in June 2021. The office was transferred to the Company in February 2022 and currently under renovation for daily operation use of the Company. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and equipment | 2022 2021 Buildings $ 4,416,120 $ - Office equipment 10,266 10,665 Electronic equipment 75,466 74,845 Motor vehicles 323,490 315,964 Total property and equipment, at cost 4,825,342 401,474 Less: accumulated depreciation (230,238 ) (97,986 ) Property and equipment, net $ 4,595,104 $ 303,488 |
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 | 2022 2021 Software $ 17,793 $ 18,485 Senior care service App 44,700 46,439 Less: accumulated amortization (38,530 ) (28,893 ) Intangible assets, net $ 23,963 $ 36,031 |
Schedule of estimated future amortization expense | Years ending June 30, Amortization 2023 $ 11,126 2024 11,126 2025 1,711 2026 - 2027 - Thereafter - $ 23,963 |
Operating Lease Right-of-Use _2
Operating Lease Right-of-Use Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Schedule of operating lease right -of-use assets | 2021 Increase/ Exchange Rate 2022 Shou Hill Valley Area $ 2,321,945 $ - $ (86,942 ) $ 2,235,003 Villas 2,291,798 - (85,814 ) 2,205,984 Base Station Tower 270,484 - (10,128 ) 260,356 Farmland* - 2,319,791 (84,788 ) 2,235,003 Office - 167,397 (6,118 ) 161,279 Total right-of-use assets, at cost 4,884,227 2,487,188 (273,790 ) 7,097,625 Less: accumulated amortization (621,491 ) (522,575 ) 96,906 (1,047,160 ) Right-of-use assets, net $ 4,262,736 $ 1,964,613 (176,884 ) $ 6,050,465 * On July 7, 2021, E-Home Pingtan entered into an agreement with an unaffiliated company and individual to obtain the right of use for farmland of 74 acers for $2,319,791 (RMB 15,000,000). The Company paid the installment of $2,319,791 (RMB 15,000,000) to the individual as of June 30, 2022. |
Finance Lease Right-of-Use As_2
Finance Lease Right-of-Use Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Finance Lease Right of Use Assets Table [Abstract] | |
Schedule of finance lease right -of-use assets | 2021 Increase/ Exchange Rate 2022 Company vehicles $ 1,857,556 $ - $ (69,553 ) $ 1,788,003 Total right-of-use assets, at cost 1,857,556 - (69,553 ) 1,788,003 Less: accumulated amortization (510,828 ) (185,583 ) 25,910 (670,501 ) Right-of-use assets, net $ 1,346,728 $ (185,583 ) $ (43,643 ) $ 1,117,502 |
Long-Term Prepayments and Oth_2
Long-Term Prepayments and Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Long-Term Prepayments and Other Non-Current Assets Table [Abstract] | |
Schedule of long-term prepayments and other non-current assets | 2022 2021 Deposits paid for lease assets $ 372,501 $ 386,991 Deposits paid for land* - 1,547,964 Total $ 372,501 $ 1,934,955 * In 2019, E-Home Pingtan entered into an agreement with an unaffiliated company to purchase the right of use for land of 126 acers for RMB 80,000,000. The Company prepaid $1,547,964 (RMB 10,000,000) to the individual as of June 30, 2021. The agreement was terminated in 2022 and E-Home Pingtan received the deposit from the unaffiliated company. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounts Payable and Accrued Expenses [Abstract] | |
Schedule of accounts payable and accrued expenses | 2022 2021 Payable to suppliers $ 3,486,600 $ 3,657,700 Salary and welfare payables 412,444 614,355 Accrued expenses and other current liabilities 699,032 85,498 Total 4,598,076 4,357,553 |
Advance from Customers (Tables)
Advance from Customers (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Advance from Customers Table [Abstract] | |
Schedule of advance from customer | 2022 2021 Senior care services $ 481,783 $ 2,817,048 Housekeeping services 1,769,289 176,608 Total $ 2,251,072 $ 2,993,656 |
Operating Lease Liabilities (Ta
Operating Lease Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Operating Lease Liabilities Abstract | |
Schedule of operating lease liabilities | 2022 2021 Villas* $ 1,956,260 $ 1,951,867 Base Station Tower** 188,069 282,488 Office*** 107,506 - Total operating lease liabilities $ 2,251,835 $ 2,234,355 * The lease agreement of Villas was entered into on December 22, 2017, bears interest at about 4.1239% and will be matured on December 31, 2037. Lease payments for this agreement are to be made every five years. As of June 30, 2022, the Company has paid $696,584 for the first installment to the lessee. ** The lease agreement of Base Station Tower was entered into on November 25, 2019, bears interest at about 3.1365% and will be matured on November 24, 2029. Lease payments for this agreement are to be made every year. As of June 30, 2022, the Company has paid $ 61,919 to the lessee. *** The lease agreement of Office was entered into on January 1, 2022, bears interest at about 2.4584% and will be matured on December 31, 2024. Lease payments for this agreement are to be made every year. As of June 30, 2022, the Company has paid $55,070 for the first installment to the lessee. |
Schedule of analyzed for reporting purposes | 2022 2021 Long-term portion of operating lease liabilities $ 1,473,093 $ 2,147,252 Current maturities of operating lease liabilities 778,742 87,103 Total $ 2,251,835 $ 2,234,355 |
Schedule of maturity analysis of operating lease liabilities | Operating lease payment Villas Base station tower Office Total undiscounted cash flows Discount rate at commencement 4.1239 % 3.1365 % 2.4584 % One year $ 737,551 $ 29,800 $ 55,070 $ 822,421 Two years - 29,800 55,070 84,870 Three years - 29,800 - 29,800 Four years - 29,800 - 29,800 Five years - 29,800 - 29,800 Beyond five years 1,703,743 59,600 - 1,763,343 Total undiscounted cash flows $ 2,441,294 $ 208,600 110,140 $ 2,760,034 Total financing lease liabilities 1,956,260 188,069 107,506 2,251,835 Difference between undiscounted cash flows and discounted cash flows 485,034 20,531 2,634 508,199 Operating lease payment Villas Base station tower Total undiscounted cash flows Discount rate at commencement 4.1239 % 3.1365 % One year $ - $ 61,918 $ 30,959 Two years 766,242 30,959 797,201 Three years - 30,959 30,959 Four years - 30,959 30,959 Five years - 30,959 30,959 Beyond five years 1,770,020 123,836 1,862,897 Total undiscounted cash flows $ 2,536,262 $ 309,590 $ 2,783,934 Total financing lease liabilities 1,951,867 282,488 2,234,355 Difference between undiscounted cash flows and discounted cash flows 584,395 27,102 549,579 |
Finance Lease Liabilities (Tabl
Finance Lease Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Finance Lease Liabilities Abstract | |
Schedule of financing lease liabilities | 2021 Increase/ (Decrease) Payment Exchange Rate Translation 2022 Company vehicles $ 425,375 $ - $ (82,292 ) $ (14,599 ) $ 328,484 Add: Unrecognized finance expense 76,393 23,250 - (2,032 ) 97,611 Total financing lease liabilities $ 501,768 $ 23,250 $ (82,292 ) $ (16,631 ) $ 426,095 |
Schedule of financing lease liabilities for reporting purposes | 2022 2021 Long-term portion of finance lease liabilities $ 366,359 $ 442,670 Current maturities of finance lease liabilities 59,736 59,098 Total $ 426,095 $ 501,768 |
Schedule of maturity analysis of financial lease liabilities | Financial lease payments Company vehicles Discount rate at commencement 4.9 % One year $ 79,285 Two years 79,285 Three years 79,285 Four years 79,285 Five years 79,285 Beyond five years 99,106 Total undiscounted cash flows $ 495,531 Total financing lease liabilities 426,095 Difference between undiscounted cash flows and discounted cash flows 69,436 Financial lease payments Company vehicles Discount rate at commencement 4.9 % One year $ 82,369 Two years 82,369 Three years 82,369 Four years 82,369 Five years 82,369 Beyond five years 185,330 Total undiscounted cash flows $ 597,175 Total financing lease liabilities 501,768 Difference between undiscounted cash flows and discounted cash flows 95,407 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of amortization of issuance cost, debt discount and interest cost | Principal outstanding Unamortized cost Net carrying Convertible Note 2021 $ 5,275,000 $ (1,405,654 ) $ 3,869,346 Convertible Note 2022 3,170,000 (1,109,673 ) 2,060,327 Convertible Notes - liability portion $ 8,445,000 $ (2,515,327 ) $ 5,929,673 |
Schedule of amortization of issuance cost, debt discount and interest cost | Amount allocated Issuance cost Equity net Convertible Note 2021 $ 1,092,460 $ (182,255 ) $ 910,205 Convertible Note 2022 683,393 (120,611 ) 562,782 Convertible Notes – equity portion $ 1,775,853 $ (302,866 ) $ 1,472,987 |
Schedule of amortization of issuance cost, debt discount and interest cost | Issuance costs Convertible Total Convertible Note 2021 $ 384,577 $ 227,465 $ 612,042 Convertible Note 2022 12,576 7,051 19,627 Convertible Notes $ 397,543 $ 234,516 $ 631,669 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income tax | 2022 2021 2020 Current income tax provision $ 1,849,570 $ 2,968,362 $ 2,251,672 Deferred income tax provision 244,506 704,262 353,097 Total $ 2,094,076 $ 3,672,624 $ 1,898,575 |
Schedule of statutory EIT rate and the effective tax | 2022 2021 2020 Income before income taxes $ 8,335,041 $ 10,072,523 $ 7,546,583 Provision for income taxes at statutory tax rate in the PRC 2,083,760 3,660,090 1,886,646 Effect of expense for which no income tax is deductible 10,316 12,534 11,929 Income tax expense $ 2,094,076 $ 3,672,624 $ 1,898,575 |
Schedule of deferred tax asset | 2022 2021 Deferred tax assets Advanced from customers $ 442,322 704,262 Total $ 442,322 704,262 |
Schedule of taxes payable | 2022 2021 Income tax payable $ 495,009 $ - VAT payable 9,725 332 Other tax payables 940 1,888 Total $ 505,674 $ 2,220 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue | 2022 2021 Installation and maintenance $ 37,531,466 $ 48,164,931 Sales of household appliance accessories 2,486,496 3,381,304 Housekeeping 16,340,910 16,792,722 Senior care services 5,259,977 4,710,645 Sales of E-watch 2,132,244 1,328,169 Sublease - 147,663 Total $ 63,751,093 $ 74,525,434 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of operating segments information | Revenue 2022 2021 2020 Installation and Maintenance $ 40,017,962 $ 51,546,235 $ 32,220,898 Housekeeping 16,340,910 16,792,722 11,704,899 Senior care services 7,392,221 6,038,814 2,060,833 Sublease - 147,663 214,319 Total $ 63,751,093 $ 74,525,434 $ 46,200,949 Cost of revenue 2022 2021 2020 Installation and Maintenance $ 26,791,434 $ 32,209,179 $ 19,484,927 Housekeeping 13,411,221 13,435,869 8,901,973 Senior care services 4,191,920 2,666,350 1,714,172 Sublease - - - Total $ 44,394,575 $ 48,311,398 $ 30,101,072 Gross profit 2022 2021 2020 Installation and Maintenance $ 13,226,528 $ 19,337,056 $ 12,735,971 Housekeeping 2,929,689 3,356,853 2,802,926 Senior care services 3,200,301 3,372,464 346,661 Sublease - 147,663 214,319 Total $ 19,356,518 $ 26,214,036 $ 16,099,877 Sales and marketing expenses 2022 2021 2020 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 9,221,124 10,279,274 7,514,211 Total $ 9,221,124 $ 10,279,274 $ 7,514,211 General and administrative expenses 2022 2021 2020 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 10,073,654 6,869,419 1,114,984 Total $ 10,073,654 $ 6,869,419 $ 1,114,984 Current assets 2022 2021 Installation and Maintenance $ - $ - Housekeeping - - Senior care services - - Sublease - - Unallocated current assets 67,864,923 65,766,598 Total $ 67,864,923 $ 65,766,598 Non-current assets 2022 2021 Installation and Maintenance $ - $ - Housekeeping - - Senior care services 4,301,543 4,966,998 Sublease - - Unallocated non-current assets 7,138,112 3,621,202 Total $ 11,439,655 $ 8,588,200 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease commitments under non-cancelable agreements | Future Lease Payments Operating Lease Finance Lease Total July 2022 to June 2023 $ 822,421 $ 79,285 $ 901,706 July 2023 to June 2024 84,870 79,285 164,155 July 2024 to June 2025 29,800 79,285 109,085 July 2025 to June 2026 29,800 79,285 109,085 July 2026 to June 2027 29,800 79,285 109,085 Thereafter 1,763,343 99,106 1,862,449 Total $ 2,760,034 $ 495,531 $ 3,255,565 |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) - $ / shares | Oct. 03, 2022 | Feb. 03, 2022 | Aug. 10, 2021 |
Organization and Nature of Operations (Details) [Line Items] | |||
Acquisition of interest, description | , E-Home Pingtan entered into an equity transfer agreement to acquire the remaining 33% equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“HAPPY”) in consideration of $466,888 (RMB 3,000,000), with $54,462 (RMB 350,000) paid in August 2021 and $412,427 (RMB 2,650,000) paid in March 2022. The transaction to acquire the remaining 33% equity interests of HAPPY was closed in August 2021 and after the acquisition, E-Home Pingtan owns 100% of the equity interest of HAPPY. In USD Purchase consideration 466,888 Noncontrolling interests (14,558) Additional paid-in capital 481,446 466,888 Reverse stock split On October 3, 2022, the Company's board of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares (the “Reverse Stock Split”) with the market effective on October 4, 2022, such that the number of the Company's authorized preferred and ordinary shares remain unchanged, and the par value of each ordinary share is increased from US$0.0001 to US$0.002. As a result of the Reverse Stock Split, each twenty pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split. Each shareholder was entitled to receive one ordinary share in lieu of the fractional share that would have resulted from the reverse stock split. As of October 3, 2022 (immediately prior to the effective date), there were 109,042,123 ordinary shares outstanding, and the number of ordinary shares outstanding after the Reverse Stock Split was 5,453,106 shares, taking into account of the effect of rounding fractional shares into whole shares. In addition, all options and any other securities of the Company outstanding immediately prior to the Reverse Stock Split (to the extent they don’t provide otherwise) will be appropriately adjusted by dividing the number of ordinary shares into which the options and other securities are exercisable by 20 and multiplying the exercise price thereof by 20, as a result of the Reverse Stock Split. The number of ordinary shares outstanding as of June 30, 2022 and 2021 and for the years ended June 30, 2022, 2021 and 2020 were retrospectively adjusted for effect of reverse stock split on October 4, 2022. The Company’s major consolidated subsidiaries as of June 30, 2022 are as follows: Name Date of Incorporation Place of Organization % of Ownership E-Home Household Service Holdings Limited October 16, 2018 Hong Kong 100% E-Home Household Service Technology Co., Ltd. December 5, 2018 PRC 100% Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. April 1, 2014 PRC 100% Fuzhou Bangchang Technology Co. Ltd. March 15, 2007 PRC 100% Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”) October 12, 2004 PRC 100% Fujian Happiness Yijia Family Service Co., Ltd. January 19, 2015 PRC 100% Yaxing Human Resource Management (Pingtan)Co., Ltd. July 6, 2018 PRC 51% Fuzhou Gulou Jiajiale Family Service Co. Ltd. February 28, 2019 PRC 100% Yaxin Human Resource Management (Fuzhou) Co., Ltd. September 10, 2021 PRC 100% | ||
Ordinary shares outstanding | 109,042,123 | ||
Reverse stock split, shares | 5,453,106 | ||
Minimum [Member] | |||
Organization and Nature of Operations (Details) [Line Items] | |||
Ordinary share, par value (in Dollars per share) | $ 0.0001 | ||
Maximum [Member] | |||
Organization and Nature of Operations (Details) [Line Items] | |||
Ordinary share, par value (in Dollars per share) | $ 0.002 | ||
Acquisition of 60% ownership in Youyou [Member] | |||
Organization and Nature of Operations (Details) [Line Items] | |||
Issued and outstanding of ordinary share | 1 | ||
Ordinary share | 1 |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of acquisition of non-controlling interest - USD ($) | Jun. 30, 2022 | Mar. 18, 2022 |
Schedule Of Acquisition Of Non Controlling Interest [Abstract] | ||
Purchase consideration | $ 466,888 | |
Noncontrolling interests | (14,558) | |
Additional paid-in capital | 481,446 | $ 307,960 |
Total | $ 466,888 |
Organization and Nature of Op_5
Organization and Nature of Operations (Details) - Schedule of major consolidated subsidiaries | 12 Months Ended |
Jun. 30, 2022 | |
E-Home Household Service Holdings Limited [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Oct. 16, 2018 |
Place of Organization | Hong Kong |
% of Ownership | 100% |
E-Home Household Service Technology Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Dec. 05, 2018 |
Place of Organization | PRC |
% of Ownership | 100% |
Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Apr. 01, 2014 |
Place of Organization | PRC |
% of Ownership | 100% |
Fuzhou Bangchang Technology Co. Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Mar. 15, 2007 |
Place of Organization | PRC |
% of Ownership | 100% |
Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Oct. 12, 2004 |
Place of Organization | PRC |
% of Ownership | 100% |
Fujian Happiness Yijia Family Service Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Jan. 19, 2015 |
Place of Organization | PRC |
% of Ownership | 100% |
Yaxing Human Resource Management (Pingtan)Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Jul. 06, 2018 |
Place of Organization | PRC |
% of Ownership | 51% |
Fuzhou Gulou Jiajiale Family Service Co. Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Feb. 28, 2019 |
Place of Organization | PRC |
% of Ownership | 100% |
Yaxin Human Resource Management (Fuzhou) Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Incorporation | Sep. 10, 2021 |
Place of Organization | PRC |
% of Ownership | 100% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Significant Accounting Policies (Details) [Line Items] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Total revenue | 63,751,093 | 74,525,434 | $ 46,200,949 |
Company received government subsidies | 7,733 | 908,051 | 0 |
Foreign currency translation gain (loss) adjustment | $ (2,265,859) | 3,261,889 | (837,040) |
Number of segments | 3 | ||
Minimum [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful lives | 5 years | ||
Maximum [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful lives | 10 years | ||
Sublease [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Total revenue | $ 147,663 | $ 214,319 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets | 12 Months Ended |
Jun. 30, 2020 | |
Buildings [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 20 years |
Office Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 5 years |
Electronic Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 5 years |
Motor Vehicles [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of outlines the currency exchange rates | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule Of Outlines The Currency Exchange Rates [Abstract] | |||
Year-end spot rate | 6.7114 | 6.4601 | 7.0795 |
Average rate | 6.4661 | 6.6076 | 7.0293 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Accounts Receivable [Abstract] | ||
Accounts receivable, gross | $ 877,931 | $ 826,683 |
Less: allowance for doubtful accounts | ||
Accounts receivable, net | $ 877,931 | $ 826,683 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Inventories Abstract | ||
E-watches | $ 11,058 | $ 246,778 |
Total inventories, net | $ 11,058 | $ 246,778 |
Prepayments, Deposits and Oth_3
Prepayments, Deposits and Other Current Assets (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Mar. 02, 2022 USD ($) shares | Mar. 18, 2022 USD ($) | Jan. 20, 2022 | Apr. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 22, 2022 shares | Jun. 30, 2021 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 20, 2021 USD ($) | Jun. 20, 2021 CNY (¥) | Jun. 01, 2021 USD ($) | May 28, 2021 | |
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | ||||||||||||
Number of agreements | 2 | |||||||||||
Prepaid deposit for acquisitions | $ 1,800,000 | $ 1,000,000 | $ 600,000 | |||||||||
Equity transfer agreement, description | On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in YouYou Cleaning Co., Ltd. (“Youyou”) in consideration of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). The Company paid the consideration on February 3, 2022 however, the legal formalities to transfer the control to the Company were not completed as of June 30, 2022 and recorded paid consideration of $2,464,049 as deposits paid for potential acquisition. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“Lianbao”) in consideration for 5,823,363 ordinary shares issued on March 2, 2022 of the Company at a fair value of $3,743,258 (par value of $582 and additional paid-in capital of $3,742,676). In June 2022, the Company reached an agreement with Lianbao and its controlling shareholders to terminate the acquisition since the financial position of Lianbao had changed after the equity transfer agreement being signed. In accordance with the termination agreement all related issued shares will be returned by December 31, 2022. Accordingly, the Company has recorded the $1,747,009 as other receivables based on the fair value of the shares as of June 30, 2022 to be received. For the year ended June 30, 2022, the Company recorded fair value adjustment of $1,996,249. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. | |||||||||||
Deposits paid for acquisition | $ 2,464,049 | |||||||||||
Ordinary shares issued (in Shares) | shares | 5,823,363 | 386,585 | 1,000,000 | |||||||||
Fair value amount | $ 3,743,258 | |||||||||||
Ordinary shares amount | 582 | |||||||||||
Additional paid-in capital | $ 3,742,676 | |||||||||||
Fair value of the issued shares | $ 308,000 | $ 1,747,009 | ||||||||||
Fair value loss | $ 1,996,249 | |||||||||||
Contract period, description | Prepaid marketing fees are amortized during the contract periods which range from 1 year to 3 years. | |||||||||||
Deposit from the outlet | $ 756,704 | |||||||||||
Purchase an office | $ 4,416,120 | ¥ 30,000,000 | ||||||||||
Prepaid amount | $ 1,547,964 | ¥ 10,000,000 | $ 1,931,107 | ¥ 12,000,000 | ||||||||
Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd [Member] | ||||||||||||
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | ||||||||||||
Ownership percentage | 40% | |||||||||||
Fujian Ruiquan Care Services Co., Ltd. [Member] | ||||||||||||
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | ||||||||||||
Ownership percentage | 55% | |||||||||||
South Pacific [Member] | ||||||||||||
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | ||||||||||||
Ownership percentage | 30% |
Prepayments, Deposits and Oth_4
Prepayments, Deposits and Other Current Assets (Details) - Schedule of prepayments, deposits and other current assets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Prepayments Deposits And Other Current Assets Abstract | |||
Deposits for potential acquisitions | [1] | $ 6,011,058 | $ 3,400,000 |
Prepaid for marketing fee | [2] | 1,865,219 | 2,333,358 |
Performance deposits | [3] | 2,086,003 | 2,167,149 |
Prepaid consulting services fee | 545,732 | 2,110,000 | |
Prepaid office deposit | [4] | 14,006 | 1,931,107 |
Other current assets | 743,392 | ||
Prepaid income tax expenses | 315,015 | ||
Prepaid office rental fee | 26,006 | ||
Total prepayments, deposits and other current assets | $ 11,265,410 | $ 12,282,665 | |
[1]On April 30, 2021, the Company entered into two agreements with Premium Bright Corporate Advisory Limited (“Premium”) in which Premium will find target companies for the Company to acquire in order to expand its business into financial lending services. The Company prepaid a retainer of $1,800,000 to Premium, who is still actively searching for target companies as of June 30, 2022. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in YouYou Cleaning Co., Ltd. (“Youyou”) in consideration of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). The Company paid the consideration on February 3, 2022 however, the legal formalities to transfer the control to the Company were not completed as of June 30, 2022 and recorded paid consideration of $2,464,049 as deposits paid for potential acquisition. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“Lianbao”) in consideration for 5,823,363 ordinary shares issued on March 2, 2022 of the Company at a fair value of $3,743,258 (par value of $582 and additional paid-in capital of $3,742,676). In June 2022, the Company reached an agreement with Lianbao and its controlling shareholders to terminate the acquisition since the financial position of Lianbao had changed after the equity transfer agreement being signed. In accordance with the termination agreement all related issued shares will be returned by December 31, 2022. Accordingly, the Company has recorded the $1,747,009 as other receivables based on the fair value of the shares as of June 30, 2022 to be received. For the year ended June 30, 2022, the Company recorded fair value adjustment of $1,996,249. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. The acquisition was terminated and Yuwin returned the deposit to the Company in July 2021. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the acquisition was terminated and South Pacific returned the deposit to the Company in April 2022. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in YouYou Cleaning Co., Ltd. (“Youyou”) in consideration of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). The Company paid the consideration on February 3, 2022 however, the legal formalities to transfer the control to the Company were not completed as of June 30, 2022 and recorded paid consideration of $2,464,049 as deposits paid for potential acquisition. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“Lianbao”) in consideration for 5,823,363 ordinary shares issued on March 2, 2022 of the Company at a fair value of $3,743,258 (par value of $582 and additional paid-in capital of $3,742,676). In June 2022, the Company reached an agreement with Lianbao and its controlling shareholders to terminate the acquisition since the financial position of Lianbao had changed after the equity transfer agreement being signed. In accordance with the termination agreement all related issued shares will be returned by December 31, 2022. Accordingly, the Company has recorded the $1,747,009 as other receivables based on the fair value of the shares as of June 30, 2022 to be received. For the year ended June 30, 2022, the Company recorded fair value adjustment of $1,996,249. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. The acquisition was terminated and Yuwin returned the deposit to the Company in July 2021. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the acquisition was terminated and South Pacific returned the deposit to the Company in April 2022. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in YouYou Cleaning Co., Ltd. (“Youyou”) in consideration of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821). The Company paid the consideration on February 3, 2022 however, the legal formalities to transfer the control to the Company were not completed as of June 30, 2022 and recorded paid consideration of $2,464,049 as deposits paid for potential acquisition. On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“Lianbao”) in consideration for 5,823,363 ordinary shares issued on March 2, 2022 of the Company at a fair value of $3,743,258 (par value of $582 and additional paid-in capital of $3,742,676). In June 2022, the Company reached an agreement with Lianbao and its controlling shareholders to terminate the acquisition. In accordance with the termination agreement all related issued shares will be returned by December 31, 2022. Accordingly, the Company has recorded the $1,747,009 as other receivables based on the fair value of the shares as of June 30, 2022 to be received. For the year ended June 30, 2022, the Company recorded fair value adjustment of $1,996,249. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. The acquisition was terminated and Yuwin returned the deposit to the Company in July 2021. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the acquisition was terminated and South Pacific returned the deposit to the Company in April 2022.[2] The Company entered into several agreements with its suppliers for designing, marketing, and branding services. Prepaid marketing fees are amortized during the contract periods which range from 1 year to 3 years. In January 2020, E-Home Pingtan entered into three agreements with three new outlets for business cooperation purposes. These refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets agreed to return the deposits to E-Home Pingtan in case of termination of the agreements. The Company terminated the agreement with one outlet and received refund of performance deposit from the outlet of $756,704 in April 2021. On June 20, 2021, E-Home Pingtan entered into an agreement with an unaffiliated individual to purchase an office for $4,416,120 (RMB 30,000,000). The Company prepaid $1,931,107 (RMB 12,000,000) to the individual in June 2021. The office was transferred to the Company in February 2022 and currently under renovation for daily operation use of the Company. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 141,077 | $ 16,196 | $ 16,856 |
Property and equipment | $ 4,607,297 | $ 261,843 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and equipment - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 4,825,342 | $ 401,474 |
Less: accumulated depreciation | (230,238) | (97,986) |
Property and equipment, net | 4,595,104 | 303,488 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | 4,416,120 | |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | 10,266 | 10,665 |
Electronic Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | 75,466 | 74,845 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 323,490 | $ 315,964 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses of intangible assets | $ 11,126 | $ 10,888 | $ 9,523 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets, net - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (38,530) | $ (28,893) |
Intangible assets, net | 23,963 | 36,031 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 17,793 | 18,485 |
Senior care service App [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 44,700 | $ 46,439 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Estimated Future Amortization Expense Abstract | ||
2023 | $ 11,126 | |
2024 | 11,126 | |
2025 | 1,711 | |
2026 | ||
2027 | ||
Thereafter | ||
Total | $ 23,963 | $ 36,031 |
Long-Term Investment (Details)
Long-Term Investment (Details) | Jun. 30, 2022 USD ($) | Jun. 14, 2022 | Sep. 30, 2021 CNY (¥) | Sep. 15, 2021 |
Long-Term Investment (Details) [Line Items] | ||||
Percentage of equity investment | 100% | 55% | 20% | 20% |
Investment amount | $ 894,001 | ¥ 6,000,000 | ||
Fuzhou Fumao [Member] | ||||
Long-Term Investment (Details) [Line Items] | ||||
Percentage of equity investment | 67% |
Operating Lease Right-of-Use _3
Operating Lease Right-of-Use Assets, Net (Details) | 12 Months Ended | ||||
Jul. 07, 2021 USD ($) m² | Jul. 07, 2021 CNY (¥) m² | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Dec. 31, 2019 m² | |
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | |||||
Acers (in Square Meters) | 74 | 74 | 126 | ||
Obtain right of use amount | $ 2,319,791 | ¥ 15,000,000 | |||
Paid installment | $ 2,319,791 | ¥ 15,000,000 | |||
Shou Hill Valley Area and Villas [Member] | Maximum [Member] | |||||
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | |||||
Number of operating leases right-of-use assets | 20 years | 20 years | |||
Shou Hill Valley Area and Villas [Member] | Minimum [Member] | |||||
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | |||||
Number of operating leases right-of-use assets | 12 years 6 months | 12 years 6 months | |||
Base Station Tower [Member] | Maximum [Member] | |||||
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | |||||
Number of operating leases right-of-use assets | 10 years | 10 years | |||
Base Station Tower [Member] | Minimum [Member] | |||||
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | |||||
Number of operating leases right-of-use assets | 3 years | 3 years |
Operating Lease Right-of-Use _4
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets | 12 Months Ended | |
Jun. 30, 2022 USD ($) | ||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | ||
Beginning balance of total right-of-use assets, at cost | $ 4,884,227 | |
Increase/(Decrease) in right-of-use assets, at cost | 2,487,188 | |
Exchange rate translation of right-of-use assets, at cost | (273,790) | |
Ending balance of total right-of-use assets, at cost | 7,097,625 | |
Beginning balance of accumulated amortization | (621,491) | |
Increase /(Decrease) in accumulated amortization | (522,575) | |
Less: accumulated amortization exchange rate translation of right-of-use assets, at cost | 96,906 | |
Ending balance of accumulated amortization | (1,047,160) | |
Beginning balance of right-of-use assets, net | 4,262,736 | |
Increase /(Decrease) in right-of-use assets, net | 1,964,613 | |
Exchange rate translation of right-of-use assets, net | (176,884) | |
Ending balance of right-of-use assets, net | 6,050,465 | |
Shou Hill Valley Area [Member] | ||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | ||
Beginning balance of total right-of-use assets, at cost | 2,321,945 | |
Exchange rate translation of right-of-use assets, at cost | (86,942) | |
Ending balance of total right-of-use assets, at cost | 2,235,003 | |
Villas Member | ||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | ||
Beginning balance of total right-of-use assets, at cost | 2,291,798 | |
Exchange rate translation of right-of-use assets, at cost | (85,814) | |
Ending balance of total right-of-use assets, at cost | 2,205,984 | |
Base Station Tower [Member] | ||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | ||
Beginning balance of total right-of-use assets, at cost | 270,484 | |
Exchange rate translation of right-of-use assets, at cost | (10,128) | |
Ending balance of total right-of-use assets, at cost | 260,356 | |
Farmland [Member] | ||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | ||
Beginning balance of total right-of-use assets, at cost | [1] | |
Increase/(Decrease) in right-of-use assets, at cost | 2,319,791 | [1] |
Exchange rate translation of right-of-use assets, at cost | (84,788) | [1] |
Ending balance of total right-of-use assets, at cost | 2,235,003 | [1] |
Office [Member] | ||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | ||
Increase/(Decrease) in right-of-use assets, at cost | 167,397 | |
Exchange rate translation of right-of-use assets, at cost | (6,118) | |
Ending balance of total right-of-use assets, at cost | $ 161,279 | |
[1] On July 7, 2021, E-Home Pingtan entered into an agreement with an unaffiliated company and individual to obtain the right of use for farmland of 74 acers for $2,319,791 (RMB 15,000,000). The Company paid the installment of $2,319,791 (RMB 15,000,000) to the individual as of June 30, 2022. |
Finance Lease Right-of-Use As_3
Finance Lease Right-of-Use Assets, Net (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Finance Lease Right of Use Assets (Textual) | |
Term of right of use asset of financial lease | 10 years |
Percentage of financial lease discount rate | 4.90% |
Finance Lease Right-of-Use As_4
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of finance lease right -of-use assets | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of finance lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | $ 1,857,556 |
Increase /(Decrease) of total right-of-use assets, at cost | |
Exchange Rate Translation of total right-of-use assets, at cost | (69,553) |
Ending balance of total right-of-use assets, at cost | 1,788,003 |
Beginning balance of accumulated amortization | (510,828) |
Increase /(Decrease) of accumulated amortization | (185,583) |
Exchange Rate Translation of accumulated amortization | 25,910 |
Ending balance of accumulated amortization | (670,501) |
Beginning balance of right-of-use assets, net | 1,346,728 |
Increase /(Decrease) of right-of-use assets, net | (185,583) |
Exchange Rate Translation of right-of-use assets, net | (43,643) |
Ending balance of right-of-use assets, net | 1,117,502 |
Company vehicles [Member] | |
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of finance lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | 1,857,556 |
Increase /(Decrease) of total right-of-use assets, at cost | |
Exchange Rate Translation of total right-of-use assets, at cost | (69,553) |
Ending balance of total right-of-use assets, at cost | $ 1,788,003 |
Long-Term Prepayments and Oth_3
Long-Term Prepayments and Other Non-Current Assets (Details) | Dec. 31, 2019 CNY (¥) m² | Jul. 07, 2021 m² | Jun. 30, 2021 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 20, 2021 USD ($) | Jun. 20, 2021 CNY (¥) |
Long Term Prepaymentsand Other Non Current Assets Abstract | ||||||
Area of land (in Square Meters) | m² | 126 | 74 | ||||
Right of use for land | ¥ | ¥ 80,000,000 | |||||
Prepaid | $ 1,547,964 | ¥ 10,000,000 | $ 1,931,107 | ¥ 12,000,000 |
Long-Term Prepayments and Oth_4
Long-Term Prepayments and Other Non-Current Assets (Details) - Schedule of long-term prepayments and other non-current assets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Long Term Prepayments And Other Non Current Assets Abstract | |||
Deposits paid for lease assets | $ 372,501 | $ 386,991 | |
Deposits paid for land | [1] | 1,547,964 | |
Total | $ 372,501 | $ 1,934,955 | |
[1] In 2019, E-Home Pingtan entered into an agreement with an unaffiliated company to purchase the right of use for land of 126 acers for RMB 80,000,000. The Company prepaid $1,547,964 (RMB 10,000,000) to the individual as of June 30, 2021. The agreement was terminated in 2022 and E-Home Pingtan received the deposit from the unaffiliated company. |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Accounts Payable And Accrued Expenses Abstract | ||
Payable to suppliers | $ 3,486,600 | $ 3,657,700 |
Salary and welfare payables | 412,444 | 614,355 |
Accrued expenses and other current liabilities | 699,032 | 85,498 |
Total | $ 4,598,076 | $ 4,357,553 |
Advance from Customers (Details
Advance from Customers (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Senior Care Services [Member] | ||
Advance from Customers (Details) [Line Items] | ||
Advances from customers | $ 1,769,289 | $ 2,817,048 |
Housekeeping Services [Member] | ||
Advance from Customers (Details) [Line Items] | ||
Advances from customers | $ 481,783 | $ 176,608 |
Advance from Customers (Detai_2
Advance from Customers (Details) - Schedule of advance from customer - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Advance from Customers (Details) - Schedule of advance from customer [Line Items] | ||
Advance from customers total | $ 2,251,072 | $ 2,993,656 |
Senior care services [Member] | ||
Advance from Customers (Details) - Schedule of advance from customer [Line Items] | ||
Advance from customers total | 481,783 | 2,817,048 |
Housekeeping services [Member] | ||
Advance from Customers (Details) - Schedule of advance from customer [Line Items] | ||
Advance from customers total | $ 1,769,289 | $ 176,608 |
Operating Lease Liabilities (De
Operating Lease Liabilities (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2022 USD ($) | Dec. 22, 2017 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2021 CNY (¥) | Nov. 25, 2019 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2017 CNY (¥) | Dec. 22, 2017 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Operating Lease Liabilities (Details) [Line Items] | ||||||||||
Weighted average discount rate | 4.06% | |||||||||
Weighted average remaining operating leases | 16 years | |||||||||
Operating lease expense | $ 2,319,791 | ¥ 15,000,000 | $ 596,988 | $ 2,599,697 | ||||||
Total lease expense | $ 2,321,945 | ¥ 15,000,000 | ||||||||
Short-term operating lease expense | $ 259,996 | $ 1,589,089 | ||||||||
Operating lease liabilities Interest rate | 3.1365% | 4.1239% | ||||||||
Lease expiration date | December 31, 2024 | November 24, 2029 | December 31, 2037 | |||||||
Installments paid duration | 5 years | |||||||||
Operating lease first installment | $ 55,070 | $ 696,584 | $ 61,919 | |||||||
Villas [Member] | ||||||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||||||
Discount rate of lease liabilities | 4.1239% | |||||||||
Base Station Tower [Member] | ||||||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||||||
Discount rate of lease liabilities | 3.1365% | |||||||||
Officer [Member] | ||||||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||||||
Discount rate of lease liabilities | 2.4584% | 2.4584% | ||||||||
Minimum [Member] | ||||||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||||||
Incremental borrowing rate | 3.70% | |||||||||
Maximum [Member] | ||||||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||||||
Incremental borrowing rate | 4.80% |
Operating Lease Liabilities (_2
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Total operating lease liabilities | $ 2,251,835 | $ 2,234,355 | |
Villas [Member] | |||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Operating lease liabilities | [1] | 1,956,260 | 1,951,867 |
Base Station Tower [Member] | |||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Operating lease liabilities | [2] | 188,069 | 282,488 |
Office [Member] | |||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Operating lease liabilities | [3] | $ 107,506 | |
[1] The lease agreement of Villas was entered into on December 22, 2017, bears interest at about 4.1239% and will be matured on December 31, 2037. Lease payments for this agreement are to be made every five years. As of June 30, 2022, the Company has paid $696,584 for the first installment to the lessee. The lease agreement of Base Station Tower was entered into on November 25, 2019, bears interest at about 3.1365% and will be matured on November 24, 2029. Lease payments for this agreement are to be made every year. As of June 30, 2022, the Company has paid $ 61,919 to the lessee. The lease agreement of Office was entered into on January 1, 2022, bears interest at about 2.4584% and will be matured on December 31, 2024. Lease payments for this agreement are to be made every year. As of June 30, 2022, the Company has paid $55,070 for the first installment to the lessee. |
Operating Lease Liabilities (_3
Operating Lease Liabilities (Details) - Schedule of analyzed for reporting purposes - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Analyzed For Reporting Purposes Abstract | ||
Long-term portion of operating lease liabilities | $ 1,473,093 | $ 2,147,252 |
Current maturities of operating lease liabilities | 778,742 | 87,103 |
Total | $ 2,251,835 | $ 2,234,355 |
Operating Lease Liabilities (_4
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Villas [Member] | ||
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | ||
Discount rate at commencement | 4.1239% | 4.1239% |
One year | $ 737,551 | |
Two years | 766,242 | |
Three years | ||
Four years | ||
Five years | ||
Beyond five years | 1,703,743 | 1,770,020 |
Total undiscounted cash flows | 2,441,294 | 2,536,262 |
Total financing lease liabilities | 1,956,260 | 1,951,867 |
Difference between undiscounted cash flows and discounted cash flows | $ 485,034 | $ 584,395 |
Base station tower [Member] | ||
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | ||
Discount rate at commencement | 3.1365% | 3.1365% |
One year | $ 29,800 | $ 61,918 |
Two years | 29,800 | 30,959 |
Three years | 29,800 | 30,959 |
Four years | 29,800 | 30,959 |
Five years | 29,800 | 30,959 |
Beyond five years | 59,600 | 123,836 |
Total undiscounted cash flows | 208,600 | 309,590 |
Total financing lease liabilities | 188,069 | 282,488 |
Difference between undiscounted cash flows and discounted cash flows | $ 20,531 | 27,102 |
Office [Member] | ||
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | ||
Discount rate at commencement | 2.4584% | |
One year | $ 55,070 | |
Two years | 55,070 | |
Three years | ||
Four years | ||
Five years | ||
Beyond five years | ||
Total undiscounted cash flows | 110,140 | |
Total financing lease liabilities | 107,506 | |
Difference between undiscounted cash flows and discounted cash flows | 2,634 | |
Total undiscounted cash flows [Member] | ||
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | ||
One year | 822,421 | 30,959 |
Two years | 84,870 | 797,201 |
Three years | 29,800 | 30,959 |
Four years | 29,800 | 30,959 |
Five years | 29,800 | 30,959 |
Beyond five years | 1,763,343 | 1,862,897 |
Total undiscounted cash flows | 2,760,034 | 2,783,934 |
Total financing lease liabilities | 2,251,835 | 2,234,355 |
Difference between undiscounted cash flows and discounted cash flows | $ 508,199 | $ 549,579 |
Finance Lease Liabilities (Deta
Finance Lease Liabilities (Details) - USD ($) | 12 Months Ended | |||
Sep. 11, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finance Lease Liabilities Abstract | ||||
The rate of financial lease liability interest | 4.90% | |||
Date of maturity of financial lease agreement | Dec. 31, 2027 | |||
Amortization expense of financial lease right-of-use assets | $ 185,583 | $ 181,610 | $ 170,714 | |
Interest expense for financial lease | $ 26,068 | $ 25,509 | $ 26,447 |
Finance Lease Liabilities (De_2
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities [Line Items] | |
Beginning balance of unrecognized finance expense | $ 76,393 |
Increase/ (Decrease) in unrecognized finance expense | 23,250 |
Payment for unrecognized finance expense | |
Exchange rate translation of unrecognized finance expense | (2,032) |
Ending balance of unrecognized finance expense | 97,611 |
Beginning balance of total financing lease liabilities | 501,768 |
Increase/ (Decrease) in total financing lease liabilities | 23,250 |
Payment for total financing lease liabilities | (82,292) |
Exchange rate translation of total financing lease liabilities | (16,631) |
Ending balance of total financing lease liabilities | 426,095 |
Company vehicles [Member] | |
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities [Line Items] | |
Beginning balance of financing lease liabilities | 425,375 |
Increase/ (Decrease) in financing lease liabilities | |
Payment for financing lease liabilities | (82,292) |
Exchange rate translation of financing lease liabilities | (14,599) |
Ending balance of financing lease liabilities | $ 328,484 |
Finance Lease Liabilities (De_3
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities for reporting purposes - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Financing Lease Liabilities For Reporting Purposes Abstract | ||
Long-term portion of finance lease liabilities | $ 366,359 | $ 442,670 |
Current maturities of finance lease liabilities | 59,736 | 59,098 |
Total | $ 426,095 | $ 501,768 |
Finance Lease Liabilities (De_4
Finance Lease Liabilities (Details) - Schedule of maturity analysis of financial lease liabilities - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Maturity Analysis Of Financial Lease Liabilities Abstract | ||
Discount rate at commencement | 4.90% | 4.90% |
One year | $ 79,285 | $ 82,369 |
Two years | 79,285 | 82,369 |
Three years | 79,285 | 82,369 |
Four years | 79,285 | 82,369 |
Five years | 79,285 | 82,369 |
Beyond five years | 99,106 | 185,330 |
Total undiscounted cash flows | 495,531 | 597,175 |
Total financing lease liabilities | 426,095 | 501,768 |
Difference between undiscounted cash flows and discounted cash flows | $ 69,436 | $ 95,407 |
Convertible Notes (Details)
Convertible Notes (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 13, 2021 | Dec. 20, 2021 | Jun. 30, 2022 | Jun. 14, 2022 | |
Convertible Notes (Details) [Line Items] | ||||
Ordinary shares price equal percentage | 85% | |||
Purchase ordinary shares (in Shares) | 28,041,992 | |||
Warrants term | 5 years | |||
Price per share (in Dollars per share) | $ 0.49 | |||
Original issue discount | $ 150,000 | |||
Commission | 256,095 | |||
Business Combination [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Other transaction costs | $ 20,000 | |||
Convertible Note 2021 [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Original principal amount | $ 5,275,000 | |||
Original issue discount | 250,000 | |||
Other transaction costs | $ 25,000 | |||
Outstanding balance per annum percentage | 8% | |||
Ordinary shares price equal percentage | 85% | |||
Equity component | $ 1,092,460 | |||
Warrants value | $ 212,105 | |||
Debt issuance costs description. | Debt issuance costs related to the original Convertible Note 2021 comprised of commissions paid to third party placement agent and lawyers of $667,920 which included original issue discount of $250,000, Investor’s legal and other transaction costs of $25,000 and commission of $392,920. The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2021 based on their relative values. Issuance costs attributable to the liability component were $697,771 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $182,255 and netted with the equity component in stockholders’ equity of $1,092,460 and warrant value of $212,105. | |||
Liability component fair value percentage | 33.10% | |||
Convertible Note 2021 [Member] | Ordinary shares [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||
Convertible Note 2021 [Member] | Note Warrant [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Equity component | $ 1,304,565 | |||
Convertible Note 2021 [Member] | Trigger Event [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Accrue lesser per annum percentage | 22% | |||
Convertible Note 2021 [Member] | Trigger Event [Member] | Maximum [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Outstanding balance payable percentage | 12% | |||
Convertible Note 2021 [Member] | Trigger Event [Member] | Minimum [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Outstanding balance payable percentage | 5% | |||
Convertible Note 2021 [Member] | Joseph Stone Capital, LLC [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Cash fee equal | 6.50% | |||
Purchase ordinary shares (in Shares) | 157,934 | |||
Warrants term | 5 years | |||
Price per share (in Dollars per share) | $ 2 | |||
Convertible Note 2022 [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Original principal amount | $ 3,170,000 | |||
Original issue discount | 150,000 | |||
Other transaction costs | $ 20,000 | |||
Outstanding balance per annum percentage | 8% | |||
Equity component | $ 683,393 | |||
Warrants value | $ 133,372 | |||
Debt issuance costs description. | The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2022 based on their relative values. Issuance costs attributable to the liability component were $438,856 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $120,611 and netted with the equity component in stockholders’ equity of $683,393 and warrant value of $133,372. | |||
Liability component fair value percentage | 34.51% | |||
Convertible Note 2022 [Member] | Ordinary shares [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||
Convertible Note 2022 [Member] | Note Warrant [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Equity component | $ 816,765 | |||
Convertible Note 2022 [Member] | Trigger Event [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Accrue lesser per annum percentage | 22% | |||
Convertible Note 2022 [Member] | Trigger Event [Member] | Maximum [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Outstanding balance payable percentage | 12% | |||
Convertible Note 2022 [Member] | Trigger Event [Member] | Minimum [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Outstanding balance payable percentage | 5% | |||
Convertible Note 2022 [Member] | Joseph Stone Capital, LLC [Member] | ||||
Convertible Notes (Details) [Line Items] | ||||
Cash fee equal | 6.50% | |||
Purchase ordinary shares (in Shares) | 386,585 | |||
Warrants term | 5 years | |||
Price per share (in Dollars per share) | $ 0.49 |
Convertible Notes (Details) - S
Convertible Notes (Details) - Schedule of net carrying amount of the liability component convertible notes | Jun. 30, 2022 USD ($) |
Principal outstanding [Member] | |
Convertible Notes (Details) - Schedule of net carrying amount of the liability component convertible notes [Line Items] | |
Convertible Note 2021 | $ 5,275,000 |
Convertible Note 2022 | 3,170,000 |
Convertible Notes - liability portion | 8,445,000 |
Unamortized issuance cost [Member] | |
Convertible Notes (Details) - Schedule of net carrying amount of the liability component convertible notes [Line Items] | |
Convertible Note 2021 | (1,405,654) |
Convertible Note 2022 | (1,109,673) |
Convertible Notes - liability portion | (2,515,327) |
Net carrying value [Member] | |
Convertible Notes (Details) - Schedule of net carrying amount of the liability component convertible notes [Line Items] | |
Convertible Note 2021 | 3,869,346 |
Convertible Note 2022 | 2,060,327 |
Convertible Notes - liability portion | $ 5,929,673 |
Convertible Notes (Details) -_2
Convertible Notes (Details) - Schedule of net carrying amount of the equity component | Jun. 30, 2022 USD ($) |
Amount allocated to conversion option [Member] | |
Convertible Notes (Details) - Schedule of net carrying amount of the equity component [Line Items] | |
Convertible Note 2021 | $ 1,092,460 |
Convertible Note 2022 | 683,393 |
Convertible Notes – equity portion | 1,775,853 |
Issuance cost [Member] | |
Convertible Notes (Details) - Schedule of net carrying amount of the equity component [Line Items] | |
Convertible Note 2021 | (182,255) |
Convertible Note 2022 | (120,611) |
Convertible Notes – equity portion | (302,866) |
Equity component, net [Member] | |
Convertible Notes (Details) - Schedule of net carrying amount of the equity component [Line Items] | |
Convertible Note 2021 | 910,205 |
Convertible Note 2022 | 562,782 |
Convertible Notes – equity portion | $ 1,472,987 |
Convertible Notes (Details) -_3
Convertible Notes (Details) - Schedule of amortization of issuance cost, debt discount and interest cost | Jun. 30, 2022 USD ($) |
Issuance costs and debt discount [Member] | |
Debt Conversion [Line Items] | |
Convertible Note 2021 | $ 384,577 |
Convertible Note 2022 | 12,576 |
Convertible Notes | 397,543 |
Convertible note interest [Member] | |
Debt Conversion [Line Items] | |
Convertible Note 2021 | 227,465 |
Convertible Note 2022 | 7,051 |
Convertible Notes | 234,516 |
Total [Member] | |
Debt Conversion [Line Items] | |
Convertible Note 2021 | 612,042 |
Convertible Note 2022 | 19,627 |
Convertible Notes | $ 631,669 |
Warrants (Details)
Warrants (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 22, 2022 | Mar. 02, 2022 | |
Warrants (Details) [Line Items] | |||||
Common stock shares | 386,585 | 1,000,000 | 5,823,363 | ||
Shares Issued, Price Per Share | $ 0.49 | ||||
Warrants issuance terms | 5 years | ||||
Warrants outstanding | 544,529 | 0 | |||
Warrants exercised | 0 | ||||
Accretion of debt discount related to warrants expense | $ 345,477 | $ 0 | $ 0 | ||
Volatility | 129% | 117% | |||
Risk-free interest rate | 0.27% | 2.04% | |||
Expected term | 5 years | 5 years | |||
Exercise price | $ 2 | $ 0.49 | |||
Dividend yield | 0% | 0% | |||
Warrant [Member] | |||||
Warrants (Details) [Line Items] | |||||
Common stock shares | 157,934 | ||||
Shares Issued, Price Per Share | $ 2 | ||||
Minimum [Member] | |||||
Warrants (Details) [Line Items] | |||||
Average exercise price | $ 0.49 | ||||
Maximum [Member] | |||||
Warrants (Details) [Line Items] | |||||
Average exercise price | $ 2 |
Taxes (Details)
Taxes (Details) | 1 Months Ended | 12 Months Ended | ||
May 01, 2016 | Jul. 31, 2017 | Mar. 16, 2007 | Jun. 30, 2022 | |
Taxes (Details) [Line Items] | ||||
VAT percentage | 11% | |||
Value added tax, description | The maintenance and accessories sales were subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019. | |||
After sales and cleaning service | ||||
EIT [Member] | ||||
Taxes (Details) [Line Items] | ||||
Percentage of uniform rate | 25% | |||
Effective tax rate | 25% |
Taxes (Details) - Schedule of p
Taxes (Details) - Schedule of provision for income tax - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Provision For Income Tax Abstract | |||
Current income tax provision | $ 1,849,570 | $ 2,968,362 | $ 2,251,672 |
Deferred income tax provision | 244,506 | 704,262 | 353,097 |
Total | $ 2,094,076 | $ 3,672,624 | $ 1,898,575 |
Taxes (Details) - Schedule of s
Taxes (Details) - Schedule of statutory EIT rate and the effective tax - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Statutory Eit Rate And The Effective Tax Abstract | |||
Income before income taxes | $ 8,335,041 | $ 10,072,523 | $ 7,546,583 |
Provision for income taxes at statutory tax rate in the PRC | 2,083,760 | 3,660,090 | 1,886,646 |
Effect of expense for which no income tax is deductible | 10,316 | 12,534 | 11,929 |
Income tax expense | $ 2,094,076 | $ 3,672,624 | $ 1,898,575 |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax asset - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Deferred Tax Asset Abstract | ||
Deferred tax assets | ||
Advanced from customers | 442,322 | 704,262 |
Total | $ 442,322 | $ 704,262 |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Taxes Payable Abstract | ||
Income tax payable | $ 495,009 | |
VAT payable | 9,725 | 332 |
Other tax payables | 940 | 1,888 |
Total | $ 505,674 | $ 2,220 |
Equity (Details)
Equity (Details) $ / shares in Units, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Feb. 03, 2022 USD ($) shares | Jun. 22, 2022 USD ($) shares | Mar. 18, 2022 USD ($) shares | Jun. 21, 2021 USD ($) shares | May 18, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Mar. 02, 2022 shares | Jan. 20, 2022 USD ($) shares | Jan. 20, 2022 CNY (¥) shares | Jun. 30, 2020 USD ($) | Jun. 30, 2019 USD ($) | May 23, 2019 $ / shares shares | Jun. 30, 2018 USD ($) | |
Equity (Details) [Line Items] | ||||||||||||||
Ordinary, shares issued (in Shares) | 2,212,360 | 1,679,078 | ||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.002 | $ 0.002 | ||||||||||||
Contributed ownership | $ | $ 3,620,757 | $ 3,885,586 | ||||||||||||
Ordinary shares authorized (in Shares) | 500,000,000 | 500,000,000 | ||||||||||||
Ordinary shares outstanding (in Shares) | 2,212,360 | 1,679,078 | ||||||||||||
Par value of shares | $ | $ 270 | $ 100 | $ 1 | |||||||||||
Additional paid in capital | $ | 1,999,821 | 322,400 | $ 33,452,332 | $ 25,542,531 | ||||||||||
Ordinary shares were granted (in Shares) | 6,000 | |||||||||||||
Compensations at a fair value | $ | $ 213,840 | |||||||||||||
Shares issued to directors | $ | 1 | |||||||||||||
Equity interest percentage | 60% | 60% | ||||||||||||
Cash | $ 600,000 | ¥ 4 | ||||||||||||
Shareholders fair value | $ | $ 2,000,091 | $ 322,500 | ||||||||||||
Ordinary share granted (in Shares) | 400,000 | |||||||||||||
Fair value | $ | $ 308,000 | 1,747,009 | ||||||||||||
Par value | $ | 40 | |||||||||||||
Additional paid-in capital | $ | $ 307,960 | $ 481,446 | ||||||||||||
Statutory reserve description | 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 GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. | |||||||||||||
Statutory surplus reserve | $ | $ 664,100 | 664,100 | $ 664,100 | |||||||||||
Additional Paid-in Capital [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Shares issued to directors | $ | $ 213,839 | $ 213,839 | ||||||||||||
Minimum [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0001 | |||||||||||||
Ordinary stock split (in Shares) | 50,000 | |||||||||||||
Maximum [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 1 | |||||||||||||
Ordinary stock split (in Shares) | 500,000,000 | |||||||||||||
E-Home Pingtan [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Ordinary, shares issued (in Shares) | 50,000 | 5,823,363 | 5,823,363 | 5,823,363 | ||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 1 | |||||||||||||
Equity interest percentage | 40% | 40% | ||||||||||||
Youyou [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Ordinary, shares issued (in Shares) | 2,702,826 | 2,702,826 | 2,702,826 | |||||||||||
Initial Public Offering [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Ordinary, shares issued (in Shares) | 5,575,556 | |||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 4.5 | |||||||||||||
Total gross proceed | $ | $ 25,100,000 | |||||||||||||
Net proceed | $ | 21,661,293 | |||||||||||||
Par value of shares | $ | 558 | |||||||||||||
Additional paid in capital | $ | $ 21,660,735 | |||||||||||||
Over-Allotment Option [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Additional ordinary shares (in Shares) | 20,000 | |||||||||||||
Ordinary Shares [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Ordinary, shares issued (in Shares) | 1,000,000 | 28,000,000 | ||||||||||||
Ordinary shares authorized (in Shares) | 500,000,000 | |||||||||||||
Ordinary shares surrendered (in Shares) | 472,000,000 | |||||||||||||
Ordinary shares outstanding (in Shares) | 28,000,000 | |||||||||||||
Three Directors [Member] | ||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||
Independent directors of share compensations (in Shares) | 2,000 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of revenue - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 63,751,093 | $ 74,525,434 |
Installation and maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 37,531,466 | 48,164,931 |
Sales of household appliance accessories [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 2,486,496 | 3,381,304 |
Housekeeping [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 16,340,910 | 16,792,722 |
Senior care services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 5,259,977 | 4,710,645 |
Sales of E-watch [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 2,132,244 | 1,328,169 |
Sublease [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 147,663 |
Segment Information (Details) -
Segment Information (Details) - Schedule of operating segments information - Segment Information [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Total Revenue | $ 63,751,093 | $ 74,525,434 | $ 46,200,949 |
Total Cost of revenue | 44,394,575 | 48,311,398 | 30,101,072 |
Total Gross profit | 19,356,518 | 26,214,036 | 16,099,877 |
Total Sales and marketing expenses | 9,221,124 | 10,279,274 | 7,514,211 |
Total General and administrative expenses | 10,073,654 | 6,869,419 | 1,114,984 |
Total Current assets | 67,864,923 | 65,766,598 | |
Total Non-current assets | 11,439,655 | 8,588,200 | |
Installation and Maintenance [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 40,017,962 | 51,546,235 | 32,220,898 |
Total Cost of revenue | 26,791,434 | 32,209,179 | 19,484,927 |
Total Gross profit | 13,226,528 | 19,337,056 | 12,735,971 |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | |||
Housekeeping [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 16,340,910 | 16,792,722 | 11,704,899 |
Total Cost of revenue | 13,411,221 | 13,435,869 | 8,901,973 |
Total Gross profit | 2,929,689 | 3,356,853 | 2,802,926 |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | |||
Senior care services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 7,392,221 | 6,038,814 | 2,060,833 |
Total Cost of revenue | 4,191,920 | 2,666,350 | 1,714,172 |
Total Gross profit | 3,200,301 | 3,372,464 | 346,661 |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | 4,301,543 | 4,966,998 | |
Sublease [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 147,663 | 214,319 | |
Total Cost of revenue | |||
Total Gross profit | 147,663 | 214,319 | |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | |||
Unallocated [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Sales and marketing expenses | 9,221,124 | 10,279,274 | 7,514,211 |
Total General and administrative expenses | 10,073,654 | 6,869,419 | $ 1,114,984 |
Unallocated current assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Current assets | 67,864,923 | 65,766,598 | |
Unallocated non-current assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Non-current assets | $ 7,138,112 | $ 3,621,202 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Schedule of lease commitments under non-cancelable agreements | Jun. 30, 2022 USD ($) |
Commitments and Contingencies (Details) - Schedule of lease commitments under non-cancelable agreements [Line Items] | |
July 2022 to June 2023 | $ 901,706 |
July 2023 to June 2024 | 164,155 |
July 2024 to June 2025 | 109,085 |
July 2025 to June 2026 | 109,085 |
July 2026 to June 2027 | 109,085 |
Thereafter | 1,862,449 |
Total | 3,255,565 |
Operating Lease [Member] | |
Commitments and Contingencies (Details) - Schedule of lease commitments under non-cancelable agreements [Line Items] | |
July 2022 to June 2023 | 822,421 |
July 2023 to June 2024 | 84,870 |
July 2024 to June 2025 | 29,800 |
July 2025 to June 2026 | 29,800 |
July 2026 to June 2027 | 29,800 |
Thereafter | 1,763,343 |
Total | 2,760,034 |
Finance Lease [Member] | |
Commitments and Contingencies (Details) - Schedule of lease commitments under non-cancelable agreements [Line Items] | |
July 2022 to June 2023 | 79,285 |
July 2023 to June 2024 | 79,285 |
July 2024 to June 2025 | 79,285 |
July 2025 to June 2026 | 79,285 |
July 2026 to June 2027 | 79,285 |
Thereafter | 99,106 |
Total | $ 495,531 |
Customer and Supplier Concent_2
Customer and Supplier Concentration (Details) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 10% | ||
Accounts Receivable [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 10% | 10% | 10% |
Sales Revenue [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 10% | 10% | 10% |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 22, 2022 | Jun. 21, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 02, 2022 | Feb. 03, 2022 | |
Related Party Balances and Transactions (Details) [Line Items] | ||||||
Amount payable | $ 108,761 | $ 30,925 | ||||
Receivable from shareholder | 419,619 | 24,575 | ||||
Repaid amount | 337,629 | |||||
Borrowed amount | 63,975 | |||||
Payment to related party | $ 8,475 | |||||
Granted shares (in Shares) | 1,000,000 | 386,585 | 5,823,363 | |||
Compensations fair value | $ 322,500 | |||||
Ordinary shares amount (in Shares) | 100 | |||||
Additional paid in capital | $ 322,400 | $ 33,452,332 | 25,542,531 | $ 1,999,821 | ||
Ordinary shares were granted (in Shares) | 6,000 | |||||
Compensations at a fair value | $ 213,840 | |||||
Shares issued to directors | 1 | |||||
Additional Paid-in Capital [Member] | ||||||
Related Party Balances and Transactions (Details) [Line Items] | ||||||
Shares issued to directors | $ 213,839 | $ 213,839 | ||||
Three Directors [Member] | ||||||
Related Party Balances and Transactions (Details) [Line Items] | ||||||
Independent directors of share compensations (in Shares) | 2,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, ¥ in Millions | 1 Months Ended | ||||||||||
Oct. 03, 2022 $ / shares shares | Sep. 19, 2022 USD ($) shares | Aug. 15, 2022 USD ($) $ / shares shares | Jul. 08, 2022 USD ($) shares | Jun. 14, 2022 USD ($) shares | Jun. 14, 2022 CNY (¥) shares | Feb. 03, 2022 USD ($) | Jun. 22, 2022 USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 15, 2021 | |
Subsequent Events (Details) [Line Items] | |||||||||||
Equity interest percentage | 55% | 55% | 100% | 20% | 20% | ||||||
Consideration amount | $ 450,000 | ¥ 3 | |||||||||
Ordinary shares | 28,041,992 | 28,041,992 | |||||||||
Fair value (in Dollars) | $ | $ 2,000,091 | $ 322,500 | |||||||||
Reverse stock split shares | 5,453,106 | ||||||||||
Minimum [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.0001 | ||||||||||
Maximum [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.002 | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares | 28,041,992 | ||||||||||
Fair value (in Dollars) | $ | $ 8,496,724 | ||||||||||
Ordinary shares, value (in Dollars) | $ | 2,804 | ||||||||||
Additional paid-in capital (in Dollars) | $ | $ 8,493,919 | ||||||||||
Issuane of ordinary shares value (in Dollars) | $ | $ 12,300,000 | $ 3,600,000 | |||||||||
Issuane of ordinary shares | 1,329,729 | 16,363,636 | |||||||||
Subsequent Event [Member] | Minimum [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.0001 | ||||||||||
Subsequent Event [Member] | Maximum [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.22 | ||||||||||
Forecast [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares | 109,042,123 | ||||||||||
Issued and outstanding of ordinary share | 1 | ||||||||||
Reverse stock split shares | 5,453,106 | ||||||||||
Forecast [Member] | Minimum [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.0001 | ||||||||||
Forecast [Member] | Maximum [Member] | |||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.002 |