Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | Pop Culture Group Co., Ltd |
Trading Symbol | CPOP |
Document Type | 20-F |
Current Fiscal Year End Date | --06-30 |
Amendment Flag | false |
Entity Central Index Key | 0001807389 |
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, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40543 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Room 102 |
Entity Address, Address Line Two | 23-1 Wanghai RoadXiamen Software Park Phase 2Siming District |
Entity Address, City or Town | Xiamen City |
Entity Address, Country | CN |
Title of 12(b) Security | Class A Ordinary Shares |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Address, Postal Zip Code | 00000 |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 12,086,923 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 5,763,077 |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | Room 102, |
Entity Address, Address Line Two | Wanghai RoadXiamen Software Park Phase 2Siming District |
Entity Address, City or Town | Xiamen City |
Entity Address, Country | CN |
Contact Personnel Name | Zhuoqin Huang, |
Contact Personnel Email Address | huangzhuoqin@520pop.com |
City Area Code | 86-592 |
Entity Address, Postal Zip Code | 00000 |
Local Phone Number | 5968189 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
CURRENT ASSETS: | |||
Cash | $ 1,319,977 | $ 1,359,137 | |
Accounts receivable, net | 25,537,236 | 14,810,146 | |
Advance to suppliers | 1,999,876 | 3,176,527 | |
Prepaid expenses and other current assets | 3,553,028 | 1,177,947 | |
TOTAL CURRENT ASSETS | 32,410,117 | 20,523,757 | |
Property and equipment, net | 48,393 | 71,281 | |
Intangible asset, net | 1,635,321 | 1,695,215 | |
Operating right-of-use asset | 194,747 | 278,260 | |
Deferred tax assets | 140,757 | 83,795 | |
Other non-current assets | 251,464 | ||
TOTAL ASSETS | 34,429,335 | 22,903,772 | |
CURRENT LIABILITIES: | |||
Short-term bank loans | 5,140,990 | 1,838,833 | |
Accounts payable | 1,900,883 | 2,795,508 | |
Deferred revenue | 1,648,847 | 1,764,608 | |
Taxes payable | 4,232,391 | 2,374,093 | |
Due to a related party | 225,000 | ||
Accrued liabilities and other payables | 77,567 | 119,573 | |
Operating lease liability - current | 98,427 | 96,357 | |
TOTAL CURRENT LIABILITIES | 13,324,105 | 8,988,972 | |
Long-term bank loans | 1,672,370 | ||
Operating lease liability - non-current | 104,755 | 189,994 | |
TOTAL LIABILITIES | 15,101,230 | 9,178,966 | |
Commitments and contingencies | |||
SHAREHOLDERS’ EQUITY | |||
Ordinary shares (par value $0.001 per share; 44,000,000 Class A ordinary shares authorized as of June 30, 2020 and 2021; 11,021,834 and 12,086,923 Class A ordinary shares issued and outstanding as of June 30, 2020 and 2021, respectively; 6,000,000 Class B ordinary shares authorized, 5,763,077 Class B ordinary shares issued and outstanding as of June 30 2020 and 2021, respectively) | [1] | 17,850 | 16,785 |
Subscription receivable | (15,441) | (15,441) | |
Additional paid-in capital | 6,643,118 | 5,813,745 | |
Statutory reserve | 1,241,573 | 779,094 | |
Retained earnings | 10,498,183 | 6,693,120 | |
Accumulated other comprehensive (loss) income | 942,822 | (367,581) | |
TOTAL POP CULTURE GROUP CO., LTD SHAREHOLDERS’ EQUITY | 19,328,105 | 12,919,722 | |
Non-controlling interests | 805,084 | ||
TOTAL SHAREHOLDERS’ EQUITY | 19,328,105 | 13,724,806 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 34,429,335 | $ 22,903,772 | |
[1] | Certain shares are related to the reorganization for the founding shareholders and are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Class A Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 44,000,000 | 44,000,000 |
Ordinary shares, shares issued | 12,086,923 | 11,021,834 |
Ordinary shares, shares outstanding | 12,086,923 | 11,021,834 |
Class B Ordinary Shares | ||
Ordinary shares, shares authorized | 6,000,000 | 6,000,000 |
Ordinary shares, shares issued | 5,763,077 | 5,763,077 |
Ordinary shares, shares outstanding | 5,763,077 | 5,763,077 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Income Statement [Abstract] | ||||
REVENUE, NET | $ 25,526,557 | $ 15,688,080 | $ 19,031,766 | |
Cost of revenue | 18,302,494 | 11,158,847 | 13,158,537 | |
GROSS PROFIT | 7,224,063 | 4,529,233 | 5,873,229 | |
Selling and marketing | 133,387 | 110,132 | 133,332 | |
General and administrative | 1,258,750 | 1,256,954 | 492,733 | |
Total operating expenses | 1,392,137 | 1,367,086 | 626,065 | |
INCOME FROM OPERATIONS | 5,831,926 | 3,162,147 | 5,247,164 | |
Other (expenses) income: | ||||
Interest expenses, net | (243,458) | (125,560) | (123,833) | |
Other (expenses) income, net | 95,946 | 46,235 | (2,591) | |
Total other expenses, net | (147,512) | (79,325) | (126,424) | |
INCOME BEFORE INCOME TAX PROVISION | 5,684,414 | 3,082,822 | 5,120,740 | |
PROVISION FOR INCOME TAXES | 1,416,872 | 457,005 | 1,288,982 | |
NET INCOME | 4,267,542 | 2,625,817 | 3,831,758 | |
Less: net income attributable to non-controlling interests | 189,996 | 247,244 | ||
NET INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | 4,267,542 | 2,435,821 | 3,584,514 | |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | 1,335,757 | (241,839) | (162,850) | |
COMPREHENSIVE INCOME | 5,603,299 | 2,383,978 | 3,668,908 | |
Less: comprehensive income attributable to non-controlling interest | 174,392 | 236,737 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | $ 5,603,299 | $ 2,209,586 | $ 3,432,171 | |
Net income per share | ||||
Basic and diluted (in Dollars per share) | $ 0.25 | $ 0.16 | $ 0.27 | |
Weighted average shares used in calculating net income per share * | ||||
Basic and diluted (in Shares) | [1] | 17,228,698 | 14,881,478 | 13,425,911 |
[1] | Certain shares are related to the reorganization for the founding shareholders and are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary shares | Subscription receivable | Additional paid-in capital | Retained earnings | Statutory reserve | Accumulated other comprehensive (loss) income | Total Pop Culture Group Co., Ltd’s Shareholders' Equity | Non-Controlling Interests | Total | |
Balance at Jun. 30, 2018 | $ 13,426 | $ (13,426) | $ 2,142,518 | $ 1,306,691 | $ 145,188 | $ 10,997 | $ 3,605,394 | $ 248,684 | $ 3,854,078 | |
Balance (in Shares) at Jun. 30, 2018 | [1] | 13,425,911 | ||||||||
Net income for the period | 3,584,514 | 3,584,514 | 247,244 | 3,831,758 | ||||||
Appropriation of statutory reserve | (358,452) | 358,452 | ||||||||
Foreign currency translation adjustment | (152,343) | (152,343) | (10,507) | (162,850) | ||||||
Balance at Jun. 30, 2019 | $ 13,426 | (13,426) | 2,142,518 | 4,532,753 | 503,640 | (141,346) | 7,037,565 | 485,421 | 7,522,986 | |
Balance (in Shares) at Jun. 30, 2019 | [1] | 13,425,911 | ||||||||
Issuance of additional shares | $ 3,359 | (2,015) | 3,671,227 | 3,672,571 | 145,271 | 3,817,842 | ||||
Issuance of additional shares (in Shares) | [1] | 3,359,000 | ||||||||
Net income for the period | 2,435,821 | 2,435,821 | 189,996 | 2,625,817 | ||||||
Appropriation of statutory reserve | (275,454) | 275,454 | ||||||||
Foreign currency translation adjustment | (226,235) | (226,235) | (15,604) | (241,839) | ||||||
Balance at Jun. 30, 2020 | $ 16,785 | (15,441) | 5,813,745 | 6,693,120 | 779,094 | (367,581) | 12,919,722 | 805,084 | 13,724,806 | |
Balance (in Shares) at Jun. 30, 2020 | [1] | 16,784,911 | ||||||||
Shares issued for acquisition of non-controlling interests | $ 1,065 | 829,373 | (25,354) | 805,084 | (805,084) | |||||
Shares issued for acquisition of non-controlling interests (in Shares) | [1] | 1,065,089 | ||||||||
Net income for the period | 4,267,542 | 4,267,542 | 4,267,542 | |||||||
Appropriation of statutory reserve | (462,479) | 462,479 | ||||||||
Foreign currency translation adjustment | 1,335,757 | 1,335,757 | 1,335,757 | |||||||
Balance at Jun. 30, 2021 | $ 17,850 | $ (15,441) | $ 6,643,118 | $ 10,498,183 | $ 1,241,573 | $ 942,822 | $ 19,328,105 | $ 19,328,105 | ||
Balance (in Shares) at Jun. 30, 2021 | [1] | 17,850,000 | ||||||||
[1] | Certain shares are related to the reorganization for the founding shareholders and are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | |||
Net Income | $ 4,267,542 | $ 2,625,817 | $ 3,831,758 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Allowance for doubtful accounts | 195,187 | 324,345 | 24,227 |
Depreciation and amortization | 243,905 | 233,353 | 159,352 |
Deferred tax benefit | (47,802) | (84,246) | (8,053) |
Non-cash lease expense | 107,139 | 89,977 | 86,047 |
Loss from disposal of property and equipment | 19,300 | 21,596 | |
Changes in assets and liabilities: | |||
Accounts receivable | (9,259,862) | (5,672,992) | (6,123,120) |
Advance to suppliers | 1,440,794 | (2,531,334) | (630,184) |
Amounts due from related parties | 153,586 | (158,279) | |
Prepaid expenses and other current assets | (1,504,345) | (44,002) | 395,198 |
Other non-current assets | 268,433 | (252,816) | |
Accounts payable | (1,130,593) | 49,588 | 2,166,329 |
Deferred revenue | (275,888) | 1,762,730 | (247,929) |
Taxes payable | 1,592,715 | 721,743 | 1,376,248 |
Accrued liabilities and other payables | (52,007) | 54,234 | 14,057 |
Due to a related party | 225,000 | ||
Operating lease liability | (107,550) | (54,112) | (86,047) |
Net cash provided by (used in) operating activities | (4,037,332) | (2,604,829) | 821,200 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (1,716) | (11,436) | |
Proceed from disposal of property and equipment | 4,977 | 20,957 | |
Purchase of intangible asset | (2,086,819) | ||
Net cash (used in) provided by investing activities | 3,261 | (2,077,298) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term bank loans | 6,341,729 | 1,838,833 | 1,905,209 |
Repayments of short-term bank loans | (3,472,851) | (1,981,799) | (316,930) |
Proceeds from long-term bank loans | 1,811,922 | ||
Repayments of long-term bank loans | (89,195) | ||
Proceeds from issuance of shares | 3,817,842 | ||
Payment for deferred offering costs | (729,977) | (409,743) | |
Net cash provided by financing activities | 3,950,823 | 3,265,133 | 1,499,084 |
Effect of exchange rate changes | 47,349 | 40,083 | (16,984) |
Net increase (decrease) in cash | (39,160) | 703,648 | 226,002 |
Cash at beginning of year | 1,359,137 | 655,489 | 429,487 |
Cash at end of year | 1,319,977 | 1,359,137 | 655,489 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Income tax paid | 34,765 | 17,408 | 45,805 |
Interest expense paid | $ 235,361 | $ 126,095 | $ 122,153 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Xiamen Pop Culture Co., Ltd (“Pop Culture”) was incorporated in Xiamen on March 29, 2007 under the laws of the People’s Republic of China (the “PRC” or “China”). Pop Culture hosts entertainment events and provides event planning and execution services and marketing services to corporate clients. Pop Culture has four wholly-owned subsidiaries in the PRC as follows: ● Shanghai Pudu Culture Communication Co., Ltd. (“Shanghai Pudu”), a company incorporated on March 30, 2017 in Shanghai, China; ● Xiamen Pop Network Technology Co., Ltd. (“Pop Network”), a company incorporated on June 6, 2017 in Xiamen, China; ● Zhongjing Pop (Guangzhou) Culture Media Co., Ltd. (“Zhongjing Pop”), a company incorporated on December 19, 2018 in Guangzhou, China; and ● Shenzhen Pop Culture Co., Ltd. (“Shenzhen Pop”), a company incorporated on January 17, 2020 in Shenzhen, China. Xiamen Pop Sikai Interactive Technology Co., Ltd. (“Xiamen Sikai”), a company incorporated on August 18, 2020 in Xiamen, China, is 51% owned by Pop Network. Reorganization On January 3, 2020, Pop Culture Group Co., Ltd (“Pop Group” or the “Company”) was incorporated as an exempted company with limited liability under the laws of the Cayman Islands. On January 20, 2020, Pop Culture (HK) Holding Limited (“Pop HK”) was established as a wholly-owned subsidiary of Pop Group formed in accordance with laws and regulations of Hong Kong. Pop HK is a holding company and holds all the equity interests of Heliheng Culture Co., Ltd. (“WFOE”), which was established in the PRC on March 13, 2020. On March 30, 2020, WFOE entered into a series of agreements with Pop Culture and the shareholders of Pop Culture who collectively held 93.55% of the shares in Pop Culture, including an Exclusive Services Agreement, an Exclusive Option Agreement, a Share Pledge Agreement, Powers of Attorney, and Spousal Consents (collectively the “VIE Agreements”).These agreements are designed to provide WFOE with the power, rights, and obligations equivalent in all material respects to those it would possess as the principal equity holder of Pop Culture, including majority control rights and the rights to the assets, property, and revenue of Pop Culture. All the above contractual arrangements obligate WFOE to absorb a majority of the risk of loss from business activities of Pop Culture and entitle WFOE to receive a majority of its residual returns. In essence, WFOE has gained effective control over Pop Culture. Therefore, the Company believes that Pop Culture should be considered as a Variable Interest Entity (“VIE”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation.” Between February and May 2020, the Company and its shareholders undertook a series of corporation actions, including share issuances in February 2020, re-designation of ordinary shares of the Company into Class A and Class B ordinary shares in April 2020, and share issuances and transfers in May 2020. See “Note 13—Ordinary Shares.” The above-mentioned transactions, including the incorporation of Pop Group, Pop HK, and WFOE, the entry into the VIE Agreements, the share issuances, share re-designation, and share transfers, were considered a reorganization of the Company (the “Reorganization”). After the Reorganization, Pop Group ultimately owns 100% equity interests of Pop HK and WFOE, which further has the effective control over the operating entities, Pop Culture and its subsidiaries through the VIE Agreements. In accordance with ASC 805-50-25, the Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholder controls all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries and VIE have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Furthermore, ASC 805-50-45-5 indicates that the financial statements and financial information presented for prior years shall also be retrospectively adjusted to furnish comparative information. Acquisition of non-controlling interest in VIE On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 13—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE gained 100% control over Pop Culture. WFOE is obliged to absorb all risk of loss from business activities of Pop Culture and entitled to receive all its residual returns. Upon the above transactions, the Company consummated the acquisition of non-controlling interest in Pop Culture, and Pop Culture does not have any non-controlling interests anymore. The consolidated financial statements of the Company included the following entities: Date of Place of Percentage Principal activities The Company January 3, 2020 Cayman 100% Parent Holding Wholly owned subsidiaries Pop HK January 20, 2020 Hong Kong 100% Investment holding WFOE March 13, 2020 PRC 100% WFOE, consultancy and information technology support VIE Pop Culture March 29, 2007 PRC VIE Event planning, execution, and hosting VIE’s subsidiaries Shanghai Pudu March 30, 2017 PRC 100% owned by VIE Event planning and execution Pop Network June 6, 2017 PRC 100% owned by VIE Marketing Zhongjing Pop December 19, 2018 PRC 100% owned by VIE Event planning and execution Shenzhen Pop January 17, 2020 PRC 100% owned by VIE Event planning and execution Xiamen Sikai August 18, 2020 PRC 51% owned by VIE Event planning and execution Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIE and the respective shareholders of its VIE are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions: As of June 30, 2020 2021 Total assets $ 21,514,514 $ 33,067,159 Total liabilities $ 9,178,871 $ 14,874,342 For the years ended 2019 2020 2021 Total revenue $ 19,031,766 $ 15,688,080 $ 24,871,302 Net income $ 3,831,758 $ 2,944,550 $ 4,571,795 Net cash used in operating activities $ 821,200 $ (2,255,959 ) $ (3,310,074 ) Net cash (used in) provided by investing activities $ (2,077,298 ) $ 3,261 $ - Net cash provided by financing activities $ 1,499,084 $ 1,777,271 $ 4,378,228 The Company believes that there are no assets in Pop Culture that can be used only to settle specific obligations of Pop Culture except for the registered capital of Pop Culture and non-distributable statutory reserves. As Pop Culture is incorporated as limited liability companies under the PRC Company Law, creditors of Pop Culture do not have recourse to the general credit of the Company for any of the liabilities of Pop Culture. There are no terms in any arrangements, explicitly or implicitly, requiring the Company or its subsidiaries to provide financial support to Pop Culture. However, if Pop Culture were ever to need financial support, the Company may, at its discretion and subject to statutory limits and restrictions, provide financial support to Pop Culture through loans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE, and subsidiaries of its VIE. All inter-company transactions and balances have been eliminated upon consolidation. (b) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates. (c) Fair value measurements The Company applies ASC Topic 820, Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value, and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible for considering the carrying amount of cash, accounts receivable, advance to suppliers, prepaid expenses and other current assets, short-term bank loans, accounts payable, deferred revenue, taxes payable, and accrued liabilities and other payables based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. (d) Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in China. As of June 30, 2020 and 2021, cash balances were $1,359,137 and $1,319,977, respectively. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. (e) Accounts receivable, net Accounts receivable represent the amounts that the Company has an unconditional right to consideration when the Company has satisfied its performance obligation. The Company does not have any contract assets since revenue is recognized when the promised services are provided and the payment from customers is not contingent on a future event. The Company maintains allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debt, customer concentrations, customer credit worthiness, current economic trends, and changes in customer payment patterns to estimate the allowance. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. (f) Advance to suppliers Advance to suppliers primarily consists of the prepayments to the service and materials suppliers for the Company’s event hosting, planning, and execution. The Company maintains an allowance for doubtful accounts to state prepayments at their estimated realizable value based on a variety of factors, including the possibility of releasing the prepayments into services and materials, significant one-time events, and historical experience. (g) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Office equipment 3 - 5 Years Motor vehicles 10 Years Leasehold improvement Shorter of useful life or lease term (h) Intangible asset, net Intangible asset is stated at cost less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The balance of intangible asset represents a production copyright that the Company purchased externally and is amortized straight-line over 10 years in accordance with the way the Company estimates to generate economic benefits from such copyright. (i) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the years ended June 30, 2019, 2020 and 2021. (j) Right-of-use assets The Company has one operating lease for office, including an option to renew which is not at the Company’s sole discretion. The renewal to extend the lease term is not included in the Company’s right-of-use (“ROU”) assets and lease liability as they are not reasonably certain of exercise. The Company regularly evaluates the renewal option, and, when it is reasonably certain of exercise, the Company will include the renewal period in its lease term. New lease modifications result in re-measurement of the ROU assets and lease liability. The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. Effective July 1, 2017, the Company adopted ASC 842, Leases using a modified retrospective transition method. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. Adoption of ASC 842 resulted in the recording of operating lease ROU assets and corresponding operating lease liability as disclosed in Note 12 and had no impact on accumulated profit as of July 1, 2017. ROU assets and related lease obligation are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company’s lease is classified as operating lease for the office space. Operating lease ROU assets are presented within non-current assets on the consolidated balance sheet and the operating lease liability is classified as current and non-current on the consolidated balance sheet. (k) Value added tax (“VAT”) The Company’s affiliated entities in the PRC, including WFOE, Pop Culture, and subsidiaries of Pop Culture, are subject to PRC VAT for providing services. The applicable VAT rate for these companies was 6% for the years ended June 30, 2019, 2020 and 2021. The amount of VAT liability is determined by applying the applicable tax rates to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company reports revenue net of PRC VAT for all the periods presented in the consolidated statements of operations. (l) Operating lease liability Lease where substantially all the reward and risk of ownership of asset remain with the leasing company is accounted for as operating lease. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease period. (m) Revenue recognition On July 1, 2017, the Company adopted ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. The adoption of ASC 606 did not have a material impact on the Company’ s consolidated financial statements. ASC 606 establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the Company’s contracts to provide services to customers. The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to the performance obligations in the contract; and Step 5: Recognize revenue when the company satisfies a performance obligation. The Company mainly generates revenue from event hosting, event planning and execution, and marketing, which includes brand promotion and other services. Event hosting - Event planning and execution - Brand promotion - Other services - The Company accounts for a contract of event hosting, event planning and execution, or brand promotion when it has legally enforceable rights and obligations and collectability of consideration is probable. Each contract typically contains one single performance obligation, which is to deliver a successful event, activity, qualified online program or video, or brand solution, and the contract price is fixed. Contract terms typically include a customary requirement for payment within 180 days after the Company successfully provides services, which is indicated by the customer’s signed acknowledgement of completion on such event, activity, online program, or brand solution by providing the Company with completion confirmation forms. For event hosting, event planning and execution, and brand promotion, revenue is recognized at a point of time when services are successfully provided (e.g., upon successful carryout of an event), which is indicated by customer’s acknowledgement of completion on such event, activity, online program or video, or brand solution, as the customer neither simultaneously receives and consumes the benefits provided by the Company’s performance nor controls an increasingly enhanced asset or an asset with an alternative use to the customer as the Company performs. Event hosting, event planning and execution, and brand promotion projects are generally short term, which usually take less than three months. For distribution of advertisements, the Company satisfies its performance obligation over time by measuring the progress based on time elapsed, as the customer simultaneously receives and consumes the benefit of service provided, during the period of time when the advertisement is displayed. Payment is usually required within 180 days after the completion of distribution. The Company reports revenue on a gross basis for event hosting, event planning and execution, and brand promotion, as the Company takes risk and control of the event, activities, online program, or brand solution before they are transferred to customers. While in terms of advertisement distribution (other services), the Company reports revenue on a net basis since it only arranges the distribution of advertisements, instead of taking the risk and control of the distribution resources. The Company applies a practical expedient to make no adjustment for the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised service to a customer and when the customer pays for that service will be one year or less. The following table identifies the disaggregation of the Company’s revenue for the years ended June 30, 2019, 2020, and 2021, respectively: For the years ended June 30, 2019 2020 2021 Revenue from operations: Event hosting $ 6,532,438 $ 7,630,377 $ 14,978,643 Event planning and execution 9,952,530 5,493,851 9,196,773 Brand promotion 2,432,720 2,241,869 750,315 Other services 114,078 321,983 600,826 Total revenue $ 19,031,766 $ 15,688,080 $ 25,526,557 Contract liability The Company presents the consideration that a customer pays before the Company transfers a service to the customer as a contract liability (deferred revenue) when the payment is made. Deferred revenue is the Company’s obligation to transfer services to a customer for which the Company has received consideration from the customer. As of June 30, 2020 and 2021 the balance of deferred revenue amounted to $1,764,608 and $1,648,847, respectively, and the movement of deferred revenue was as below. Amount June 30,2020 $ 1,764,608 Addition 8,070,036 Recognized as revenue within the year ended June 30, 2021 (8,185,797 ) June 30,2021 $ 1,648,847 The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. (n) Cost of revenue Cost of revenue consists primarily of event design costs, online program production costs, salary and benefits expenses, materials costs, and other related expenses. (o) Selling and marketing costs All costs related to selling and marketing are expensed as incurred. For the years ended June 30, 2019, 2020, and 2021, selling and marketing costs amounted to $133,332, $110,132, and $133,387, respectively. (p) Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of June 30, 2020 and 2021. The Company’s affiliated entities in the PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 ($14,563). In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. As of June 30, 2021, the tax years ended December 31, 2015 through December 31, 2020 for the Company’s affiliated entities in the PRC remain open for statutory examination by PRC tax authorities. (q) Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s affiliated entities located in China is the Renminbi (“RMB”). For the entities whose functional currency is RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in determining comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The consolidated balance sheet amounts, with the exception of equity, at June 30, 2020 and 2021 were translated at RMB7.0697 to $1.00 and at RMB6.4579 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the years ended June 30, 2019, 2020, and 2021 were RMB6.8234 to $1.00, RMB7.0319 to $1.00, and RMB6.6228 to $1.00, respectively. (r) Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (for example, convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The Company had no dilutive securities as of and for the years ended June 30, 2019, 2020, and 2021. (s) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. (t) Commitments and contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. (u) Concentration and credit risk 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 require submitting a payment application form together with suppliers’ invoices, shipping documents, and signed contracts. The Company maintains certain bank accounts in the PRC, where under the Deposit Insurance System in China, Hong Kong, and Cayman Islands. In China, a company’s deposits at one bank are insured for a maximum of RMB500,000 in the event of bank failure. In Hong Kong and Cayman Islands, deposits are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. As of June 30, 2020 and 2021, $219,767 and $1,314,910 of the Company’s cash were on deposit at financial institutions in the PRC, and $1,139,229 and $5,067 of the Company’s cash were on deposit at financial institutions in Hong Kong. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenue and accounts receivable with specific customers. For the fiscal year ended June 30, 2019, three major customers accounted for approximately 12%, 11%, and 10% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2020, three major customers accounted for approximately 18%, 9%, and 9% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2021, three major customers accounted for approximately 23%, 12%, and 8% of the Company’s total revenue, respectively. As of June 30, 2020, the top five customers accounted for 66% of net accounts receivable as of June 30, 2020, with each customer representing 22%, 15%, 10%, 10%, and 9% of the net accounts receivable balance, respectively. As of June 30, 2021, the top five customers accounted for 58% of net accounts receivable as of June 30, 2021, with each customer representing 16%, 15%, 10%, 9%, and 8% of the net accounts receivable balance, respectively. For the years ended June 30, 2019 and 2020, the Company purchased approximately 14% and 16% of its services from one major supplier. For the fiscal year ended June 30, 2021, the Company purchased approximately 14%, 13%, and 12% of its services from three major suppliers, respectively. (v) Segment reporting The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources, and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company’s CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical segments are presented. (w) Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management, and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in Note 10. (x) Non-controlling interests A non-controlling interest in the VIE of the Company represents the portion of the equity (net assets) in the VIE that has not been pledged to WFOE, consequently not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests respectively. On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 13—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE gained 100% control over Pop Culture. Upon this transaction, the Company consummated the acquisition of non-controlling interest in Pop Culture, and Pop Culture no longer have any non-controlling interest. On August 18, 2020, Xiamen Sikai was incorporated, 49% of which represented a non-controlling interest. Since Xiamen Sikai had no profit or loss during the fiscal year ended June 30, 2021, no net income or net loss was allocated to non-controlling interest. (y) Recent accounting pronouncements In June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For all other entities including emerging growth companies, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted ASU 2016-13 since July 1, 2021, the impact of which on the Company’s consolidated financial statements was immaterial. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Jun. 30, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET As of June 30, 2020 and 2021, accounts receivable consisted of the following: As of June 30, 2020 2021 Accounts receivable - gross $ 15,156,143 $ 26,101,025 Allowance for doubtful accounts (345,997 ) (563,789 ) Accounts receivable, net $ 14,810,146 $ 25,537,236 The Company recorded bad debt expenses of $324,345 and $180,408 for the years ended June 30, 2020 and 2021, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of June 30, 2020 and 2021, prepaid expenses and other current assets consisted of the following: As of June 30, 2020 2021 Deferred costs (1) $ 709,293 $ 2,331,826 Deferred offering costs 409,743 1,197,177 Rental deposits 27,582 - Other receivables 31,329 51,912 1,177,947 3,580,915 Allowance for doubtful accounts (2) - (27,887 ) $ 1,177,947 $ 3,553,028 (1) Deferred costs represent the costs incurred to fulfill a contract with a customer which relates directly to a contract that the Company can specifically identify, generate, or enhance resources of the Company that will be used in satisfying performance obligations in the future as well as are expected to be recovered. As of June 30, 2021, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances carried out subsequently in July and August 2021. (2) The Company recorded bad debt expenses of $ nil nil |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT As of June 30, 2020 and 2021, property and equipment consisted of the following: As of June 30, 2020 2021 Leasehold improvement $ 109,863 $ 120,271 Office equipment 42,949 47,018 152,812 167,289 Less: accumulated depreciation (81,531 ) (118,896 ) $ 71,281 $ 48,393 For the years ended June 30, 2019, 2020, and 2021, depreciation expenses amounted to $37,621, $30,859, and $28,902, respectively. |
Intangible Asset
Intangible Asset | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSET | 6. INTANGIBLE ASSET As of June 30, 2020 and 2021, intangible asset consisted of the following: As of June 30, 2020 2021 Production copyright $ 2,014,117 $ 2,204,928 Less: accumulated amortization (318,902 ) (569,607 ) $ 1,695,215 $ 1,635,321 The production copyright was purchased from a third-party production provider in November 2018 for a total cash consideration of approximately $2,086,819, and entitled “Move it.” The content of the production copyright includes but is not limited to music content, stage design, and screen design. The Company has exclusive reproduction rights, distribution rights, rental rights, and other rights in China (including mainland China, Hong Kong, Macau, and Taiwan). The Company acquired only the production copyright from the seller, not the operation or equity interest of the seller. Thus, the Company determined that the acquisition constituted an acquisition of assets for financial statement purposes, rather than an acquisition of a business. For the years ended June 30, 2019, 2020 and 2021, amortization expense amounted to $121,731, $202,494 and $215,003, respectively. The following is a schedule, by fiscal years, of amortization amount of intangible asset as of June 30, 2021: 2022 $ 220,493 2023 220,493 2024 220,493 2025 220,493 2026 220,493 Thereafter 532,856 Total $ 1,635,321 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Jun. 30, 2021 | |
AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | |
ACCRUED LIABILITIES AND OTHER PAYABLES | 7. ACCRUED LIABILITIES AND OTHER PAYABLES As of June 30, 2020 and 2021, accrued liabilities and other payables consisted of the following: As of June 30, 2020 2021 Payroll payables $ 42,755 $ 60,347 Other payables 76,818 17,220 $ 119,573 $ 77,567 |
Taxes Payable
Taxes Payable | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES PAYABLE | 8. TAXES PAYABLE As of June 30, 2020 and 2021, taxes payable consisted of the following: As of June 30, 2020 2021 Corporate income tax (1) $ 1,951,921 $ 3,632,709 Value-added tax (“VAT”) 421,766 585,979 Related surcharges on VAT payable 406 13,703 $ 2,374,093 $ 4,232,391 (1) The Company initially expected to settle the unpaid income tax liabilities in May 2021 when the 2020 annual income tax returns were filed with local tax authorities. Due to limited cash on hand in May 2021, however, the Company negotiated with local tax authorities to postpone the payment of income taxes. Accordingly, as of June 30, 2021, the Company had accrued interest of overdue payment of $37,473 for the unsettled corporate income tax according to PRC taxation regulation. As of October 2021, the Company has settled corporate income tax of $404,108 and expects to settle the remaining corporate income tax liabilities within one year. |
Bank Loans
Bank Loans | 12 Months Ended |
Jun. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
BANK LOANS | 9. BANK LOANS Bank loans represent the amounts due to various banks. As of June 30, 2020 and 2021, short-term and current portion of long-term banks consisted of the following: a) Summary of short-term bank loans is as follows: Annual Interest As of June 30, Rate Maturities 2020 2021 Short-term loans: Xiamen Bank (1) 5.66 % July 18, 2020 $ 424,346 $ - Xiamen Bank (1) 5.65 % May 26, 2021 424,346 - Xiamen International Bank (1) 8.00 % October 31, 2020 990,141 - Industrial Bank Co., Ltd. (2) 5.00 % September 30, 2021 - 1,548,491 Xiamen International Bank (1) 8.00 % October 29, 2021 - 1,083,944 Xiamen Bank (4) 5.22 % August 10, 2021 - 309,698 Xiamen Bank (1) 5.22 % June 18, 2022 - 464,548 Xiamen Bank (1) 5.22 % June 22, 2022 - 309,698 Bank of China Ltd. (3) 4.70 % June 1, 2022 - 1,238,793 Subtotal 1,838,833 4,955,172 Current portion of long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 - 46,454 Bank of China Ltd. (3) 4.15 % December 29, 2023 - 108,394 Bank of China Ltd. (3) 5.10 % April 15, 2024 - 30,970 Total $ 1,838,833 $ 5,140,990 b) Summary of long-term bank loans is as follows: Annual Interest As of June 30, Rate Maturities 2020 2021 Long-term loans: Bank of China Ltd. (3) 3.80 % November 26,2023 $ - $ 418,093 Bank of China Ltd. (3) 4.15 % December 29, 2023 - 975,549 Bank of China Ltd. (3) 5.10 % April 15, 2024 - 278,728 Total $ - $ 1,672,370 The weighted average interest rate on short-term bank loans outstanding as of June 30, 2020 and 2021 was 6.92% and 5.58%, respectively. The effective interest rate for bank loans was approximately 9.89%, 7.21%, and 6.26% for the years ended June 30, 2019, 2020, and 2021, respectively. For the years ended June 30, 2019, 2020, and 2021, interest expenses related to bank loans amounted to $123,205, $125,186, and $228,806, respectively. (1) Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. On October 29, 2021, the Company repaid the one-year bank loan of RMB7,000,000 (equivalent to $1,083,944) with Xiamen International Bank with an annual interest rate of 8%. (2) On February 4, 2021, Pop Culture entered into a factoring agreement with Industrial Bank Co., Ltd. and received a total of RMB10,000,000 (equivalent to $1,548,491) on February 4, 2021 by factoring the receivables due from customers of RMB13,000,000 (equivalent to $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. (3) Loans from Bank of China were guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company. (4) This loan was jointly guaranteed by Mr. Zhuoqin Huang and his spouse, and Taiping General Insurance Co., Ltd. Xiamen Branch. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS As of June 30, 2021, the Company temporarily borrowed $225,000 from the Company’s Chief Financial Officer for working capital use, which is short-term in nature, non-interest bearing and payable upon demand. The Company had no other related party transactions for the years ended June 30, 2019, 2020, and 2021 except for loan guarantees for the Company provided by Mr. Zhuoqin Huang and his spouse (see Note 9). |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES Cayman Islands The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%. PRC Generally, WFOE, Pop Culture, Shanghai Pudu, Pop Network, Zhongjing Pop, Shenzhen Pop, and Pop Sikai, which were incorporated in PRC, are subject to enterprise income tax on their taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. According to Taxation 2019 No. 13 which was effective from January 1, 2019 to December 31, 2021, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3 million. A small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of 5% on its taxable income below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million. During the fiscal year ended June 30, 2020, Pop Network, Shanghai Pudu, and Zhongjing Pop were qualified as small-scale and low-profit enterprises, and during the fiscal year ended June 30, 2021, WFOE, Shanghai Pudu, and Shenzhen Pop were qualified as small-scale and low-profit enterprises. The impact of the tax holidays noted above decreased current income taxes by $247,387 and $44,894 for the years ended June 30, 2020 and 2021, respectively. The benefit of the tax holidays on net income per share (basic and diluted) was $0.017 and $0.003 for the years ended June 30, 2020 and 2021, respectively. i) The components of the income tax provision are as follows: For the years ended 2019 2020 2021 Current income tax provision $ 1,297,035 $ 541,251 $ 1,464,674 Deferred income tax benefit (8,053 ) (84,246 ) (47,802 ) Total $ 1,288,982 $ 457,005 $ 1,416,872 The following table reconciles the statutory rate to the Company’s effective tax rate for the years ended June 30, 2019, 2020 and 2021: For the years ended 2019 2020 2021 China Statutory income tax rate 25.00 % 25.00 % 25.00 % Permanent difference 0.17 % (2.15 )% 0.71 % Effect of favorable tax rates on small-scale and low-profit entities - % (8.03 )% (0.79 )% Effective tax rate 25.17 % 14.82 % 24.92 % The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that gives rise to deferred tax asset as of June 30, 2020 and 2021 was as follows: As of June 30, 2020 2021 Deferred tax assets: Net operating loss carry forwards $ 121 $ 107 Allowance for doubtful accounts 83,698 140,650 Total deferred tax assets 83,819 140,757 Valuation allowance (24) - Total deferred tax assets, net $ 83,795 $ 140,757 |
Lease
Lease | 12 Months Ended |
Jun. 30, 2021 | |
Operating Leases Of Lessee Disclosures [Abstract] | |
LEASE | 12. LEASE Supplemental balance sheet information related to the operating lease was as follows: As of June 30, 2020 2021 Right-of-use assets $ 278,260 $ 194,747 Operating lease liabilities - current $ 96,357 $ 98,427 Operating lease liabilities - non-current 189,994 104,755 Total operating lease liabilities $ 286,351 $ 203,182 The weighted average remaining lease terms and discount rates for the operating lease as of June 30, 2021 were as follows: Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.15 Weighted average discount rate 6.92 % During the years ended June 30, 2019, 2020, and 2021, the Company incurred total operating lease expenses of $115,464, $89,977, and $107,139, respectively. As of June 30, 2021, the future minimum rent payable under the non-cancelable operating lease for fiscal years ended June 30 were: 2022 $ 101,227 2023 101,227 Thereafter 16,871 Total lease payments 219,325 Less: imputed interest (16,143 ) Present value of lease liabilities $ 203,182 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
ORDINARY SHARES | 13. ORDINARY SHARES On January 3, 2020, 9,165,000 ordinary shares, par value $0.001 per share, were held by Joya Enterprises Limited. On February 22, 2020, the Company issued 3,760,911 ordinary shares, par value $0.001 per share, to certain founding shareholders, and 2,015,400 ordinary shares to two new shareholders who made the capital injection of $2,557,654 in October 2019. On April 28, 2020, shareholders of the Company approved the re-designation of 5,763,077 of the Company’s issued ordinary shares held by Joya Enterprises Limited into 5,763,077 Class B ordinary shares and an aggregate of 9,178,234 of the Company’s issued ordinary shares held by Joya Enterprises Limited and certain other shareholders into 9,178,234 Class A ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. In respect of matters requiring a shareholder vote, each holder of Class A ordinary shares will be entitled to one vote per one Class A ordinary share and each holder of Class B ordinary shares will be entitled to seven votes per one Class B ordinary share. The Class A ordinary shares are not convertible into shares of any other class. The Class B ordinary shares are convertible into Class A ordinary shares at any time after issuance at the option of the holder on a one-to-one basis. On May 30, 2020, the Company issued 500,000 Class A ordinary shares to two original shareholders of Pop Culture for a nominal cash consideration of $500 as part of the Reorganization. The shares and per share data as of June 30, 2019 are presented on a retroactive basis to reflect the above share issuances and re-designation. On May 30, 2020, the Company also issued an aggregate of 1,343,600 Class A ordinary shares to five new investors for a cash consideration of $1,707,893 pursuant to certain share purchase agreements entered into on September 30, 2019. This share issuance is presented on a prospective basis. On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture, which resulted in Pop Culture becoming a VIE fully controlled by the Company. The Company has accounted this acquisition of non-controlling interest as an equity transaction with no gain or loss recognized in accordance with ASC 810-10-45. The subscription receivable presents the receivable for the issuance of ordinary shares of the Company and is reported as a deduction of equity. Subscription receivable has no payment terms nor any interest receivable accrual. |
Statutory Reserve
Statutory Reserve | 12 Months Ended |
Jun. 30, 2021 | |
Statutory Reserve [Abstarct] | |
STATUTORY RESERVE | 14. STATUTORY RESERVE WFOE, Pop Culture, Shanghai Pudu, Pop Network, Zhongjing Pop, Shenzhen Pop, and Pop Sikai are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital, which was $2,663,330 and $2,663,330 as of June 30, 2020 and 2021, respectively. This statutory reserve is not distributable in the form of cash dividends. For the years ended June 30, 2020 and 2021, the Company provided statutory reserve as follows: Balance - June 30, 2019 $ 503,640 Appropriation to statutory reserve 275,454 Balance - June 30, 2020 779,094 Appropriation to statutory reserve 462,479 Balance - June 30, 2021 $ 1,241,573 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2021 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 15. RESTRICTED NET ASSETS Relevant PRC laws and regulations restrict WFOE, Pop Culture, and subsidiaries of Pop Culture from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital, additional paid-in-capital and statutory reserves to the Company in the form of loans, advances, or cash dividends. Relevant PRC statutory laws and regulations permit the payments of dividends by WFOE, Pop Culture, and subsidiaries of Pop Culture from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. As of June 30, 2020 and 2021, the balance of restricted net assets was $4,886,290 and $6,778,206, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS The Company has evaluated events subsequent to the balance sheet date of June 30, 2021 through November 10, 2021, the date on which the consolidated financial statements were issued. On July 2, 2021, the Company closed its initial public offering (“IPO”) of 6,200,000 Class A ordinary shares. The Class A ordinary shares were priced at $6.00 per share, and the offering was conducted on a firm commitment basis. The Company received an aggregate amount of $34,839,398 representing payment in full to the Company of the purchase price for 6,200,000 shares in the aggregate amount of $37,200,000 less underwriting discounts and expenses pursuant to the underwriting agreement dated June 30, 2021. Because of the significant uncertainties surrounding the COVID-19 pandemic and a possible new wave of infections, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. The COVID-19 pandemic has prompted the Company to accelerate its online business development. The COVID-19 pandemic, in some degree, slowed down the Company’s collection of accounts receivable, but the Company has made every effort to collect its accounts receivable. As of October 22, 2021, the Company had collected $10,381,816, or 40.65%, of the net accounts receivable balance as of June 30, 2021. On August 10, 2021, the Company repaid a one-year bank loan of RMB2,000,000 (equivalent to $309,698) with Xiamen Bank with an annual interest rate of 5.22%, which was guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company and his spouse, and Taiping General Insurance Co., Ltd. Xiamen Branch. On September 17, 2021, the Company repaid the loan of RMB10,000,000 (equivalent to $1,548,491) from Industrial Bank Co., Ltd, with the collections of receivables due from customers. On October 29, 2021, the Company repaid the one-year bank loan of RMB7,000,000 (equivalent to $1,083,944) with Xiamen International Bank with an annual interest rate of 8%, which was guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company and his spouse. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 17. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The Company performed a test on the restricted net assets of its consolidated subsidiaries, VIE, and VIE’s subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only. The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. As of June 30, 2021, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements. Condensed Balance Sheets As of June 30, 2020 2021 ASSETS Cash $ 1,139,229 $ 4,260 Advance to suppliers 30,000 - Prepaid expenses and other current assets 220,031 679,266 TOTAL CURRENT ASSETS 1,389,260 683,526 Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries 11,530,462 18,869,579 TOTAL ASSETS 12,919,722 19,553,105 LIABILITIES AND SHAREHOLDERS’ EQUITY Due to a related party $ - $ 225,000 TOTAL CURRENT LIABILITIES $ - $ 225,000 TOTAL LIABILITIES - 225,000 SHAREHOLDERS’ EQUITY Ordinary shares (par value $0.001 per share; 44,000,000 Class A ordinary shares authorized as of June 30, 2020 and 2021; 11,021,834 and 12,086,923 Class A ordinary shares issued and outstanding as of June 30, 2020 and 2021 respectively; 6,000,000 Class B ordinary shares authorized, 5,763,077 Class B ordinary shares issued and outstanding as of June 30 2020 and 2021 respectively.) * 16,785 17,850 Subscription receivable (15,441 ) (15,441 ) Additional paid-in capital 5,813,745 6,643,118 Retained earnings 7,472,214 11,739,756 Accumulated other comprehensive (loss) income (367,581 ) 942,822 TOTAL SHAREHOLDERS’ EQUITY 12,919,722 19,328,105 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 12,919,722 $ 19,553,105 * Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). Condensed Statements of Income and Comprehensive Income For the years ended 2019 2020 2021 General and administrative expenses $ - $ 318,634 $ 330,734 Loss from operation - 318,634 330,734 Other income: Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries 3,584,514 2,754,455 4,598,276 Income before income tax expense 3,584,514 2,435,821 4,267,542 Income tax expense - - - Net income $ 3,584,514 $ 2,435,821 $ 4,267,542 Other Comprehensive loss Foreign currency translation (loss) income (152,343 ) (226,235 ) 1,335,757 Total comprehensive income $ 3,432,171 $ 2,209,586 $ 5,603,299 Condensed Statements of Changes in Shareholders’ Equity Ordinary shares Subscription Additional paid-in Retained Accumulated Total Shares* Amount receivable capital earnings (loss) income Equity Balance as of July 1, 2018 13,425,911 $ 13,426 $ (13,426 ) $ 2,142,518 $ 1,451,879 $ 10,997 $ 3,605,394 Net income - - - - 3,584,514 - 3,584,514 Foreign currency translation adjustment - - - - - (152,343 ) (152,343 ) Balance as of June 30, 2019 13,425,911 $ 13,426 $ (13,426 ) $ 2,142,518 $ 5,036,393 $ (141,346 ) $ 7,037,565 Issuance of additional shares 3,359,000 3,359 (2,015 ) 3,671,227 - - 3,672,571 Net income - - - - 2,435,821 - 2,435,821 Foreign currency translation adjustment - - - - (226,235 ) (226,235 ) Balance as of June 30, 2020 16,784,911 $ 16,785 $ (15,441 ) $ 5,813,745 $ 7,472,214 $ (367,581 ) $ 12,919,722 Acquisition of Non-controlling interests 1,065,089 1,065 829,373 - (25,354 ) 805,084 Net income for the period - - - - 4,267,542 - 4,267,542 Foreign currency translation adjustment - - - - - 1,335,757 1,335,757 Balance as of June 30, 2021 17,850,000 $ 17,850 $ (15,441 ) $ 6,643,118 $ 11,739,756 $ 942,822 $ 19,328,105 * Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). Condensed Statements of Cash Flows For the years ended June 30, 2019 2020 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ - $ (348,870 ) $ (75,805 ) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in a subsidiary - - (600,000 ) Net cash used in investing activities - - (600,000 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of shares - 1,707,893 - Payment for deferred offering costs - (220,031 ) (459,164 ) Net cash provided by (used in) financing activities - 1,487,862 (459,164 ) Effect of exchange rate changes - 237 - Net increase (decrease) in cash - 1,139,229 (1,134,969 ) Cash at beginning of period - - 1,139,229 Cash at end of period $ - $ 1,139,229 $ 4,260 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE, and subsidiaries of its VIE. All inter-company transactions and balances have been eliminated upon consolidation. |
Use of estimates | (b) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates. |
Fair value measurements | (c) Fair value measurements The Company applies ASC Topic 820, Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value, and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible for considering the carrying amount of cash, accounts receivable, advance to suppliers, prepaid expenses and other current assets, short-term bank loans, accounts payable, deferred revenue, taxes payable, and accrued liabilities and other payables based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. |
Cash | (d) Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in China. As of June 30, 2020 and 2021, cash balances were $1,359,137 and $1,319,977, respectively. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. |
Accounts receivable, net | (e) Accounts receivable, net Accounts receivable represent the amounts that the Company has an unconditional right to consideration when the Company has satisfied its performance obligation. The Company does not have any contract assets since revenue is recognized when the promised services are provided and the payment from customers is not contingent on a future event. The Company maintains allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debt, customer concentrations, customer credit worthiness, current economic trends, and changes in customer payment patterns to estimate the allowance. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. |
Advance to suppliers | (f) Advance to suppliers Advance to suppliers primarily consists of the prepayments to the service and materials suppliers for the Company’s event hosting, planning, and execution. The Company maintains an allowance for doubtful accounts to state prepayments at their estimated realizable value based on a variety of factors, including the possibility of releasing the prepayments into services and materials, significant one-time events, and historical experience. |
Property and equipment, net | (g) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Office equipment 3 - 5 Years Motor vehicles 10 Years Leasehold improvement Shorter of useful life or lease term |
Intangible asset, net | (h) Intangible asset, net Intangible asset is stated at cost less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The balance of intangible asset represents a production copyright that the Company purchased externally and is amortized straight-line over 10 years in accordance with the way the Company estimates to generate economic benefits from such copyright. |
Impairment of long-lived assets | (i) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the years ended June 30, 2019, 2020 and 2021. |
Right-of-use assets | (j) Right-of-use assets The Company has one operating lease for office, including an option to renew which is not at the Company’s sole discretion. The renewal to extend the lease term is not included in the Company’s right-of-use (“ROU”) assets and lease liability as they are not reasonably certain of exercise. The Company regularly evaluates the renewal option, and, when it is reasonably certain of exercise, the Company will include the renewal period in its lease term. New lease modifications result in re-measurement of the ROU assets and lease liability. The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. Effective July 1, 2017, the Company adopted ASC 842, Leases using a modified retrospective transition method. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. Adoption of ASC 842 resulted in the recording of operating lease ROU assets and corresponding operating lease liability as disclosed in Note 12 and had no impact on accumulated profit as of July 1, 2017. ROU assets and related lease obligation are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company’s lease is classified as operating lease for the office space. Operating lease ROU assets are presented within non-current assets on the consolidated balance sheet and the operating lease liability is classified as current and non-current on the consolidated balance sheet. |
Value added tax (“VAT”) | (k) Value added tax (“VAT”) The Company’s affiliated entities in the PRC, including WFOE, Pop Culture, and subsidiaries of Pop Culture, are subject to PRC VAT for providing services. The applicable VAT rate for these companies was 6% for the years ended June 30, 2019, 2020 and 2021. The amount of VAT liability is determined by applying the applicable tax rates to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company reports revenue net of PRC VAT for all the periods presented in the consolidated statements of operations. |
Operating lease liability | (l) Operating lease liability Lease where substantially all the reward and risk of ownership of asset remain with the leasing company is accounted for as operating lease. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease period. |
Revenue recognition | (m) Revenue recognition On July 1, 2017, the Company adopted ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. The adoption of ASC 606 did not have a material impact on the Company’ s consolidated financial statements. ASC 606 establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the Company’s contracts to provide services to customers. The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to the performance obligations in the contract; and Step 5: Recognize revenue when the company satisfies a performance obligation. The Company mainly generates revenue from event hosting, event planning and execution, and marketing, which includes brand promotion and other services. Event hosting - Event planning and execution - Brand promotion - Other services - The Company accounts for a contract of event hosting, event planning and execution, or brand promotion when it has legally enforceable rights and obligations and collectability of consideration is probable. Each contract typically contains one single performance obligation, which is to deliver a successful event, activity, qualified online program or video, or brand solution, and the contract price is fixed. Contract terms typically include a customary requirement for payment within 180 days after the Company successfully provides services, which is indicated by the customer’s signed acknowledgement of completion on such event, activity, online program, or brand solution by providing the Company with completion confirmation forms. For event hosting, event planning and execution, and brand promotion, revenue is recognized at a point of time when services are successfully provided (e.g., upon successful carryout of an event), which is indicated by customer’s acknowledgement of completion on such event, activity, online program or video, or brand solution, as the customer neither simultaneously receives and consumes the benefits provided by the Company’s performance nor controls an increasingly enhanced asset or an asset with an alternative use to the customer as the Company performs. Event hosting, event planning and execution, and brand promotion projects are generally short term, which usually take less than three months. For distribution of advertisements, the Company satisfies its performance obligation over time by measuring the progress based on time elapsed, as the customer simultaneously receives and consumes the benefit of service provided, during the period of time when the advertisement is displayed. Payment is usually required within 180 days after the completion of distribution. The Company reports revenue on a gross basis for event hosting, event planning and execution, and brand promotion, as the Company takes risk and control of the event, activities, online program, or brand solution before they are transferred to customers. While in terms of advertisement distribution (other services), the Company reports revenue on a net basis since it only arranges the distribution of advertisements, instead of taking the risk and control of the distribution resources. The Company applies a practical expedient to make no adjustment for the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised service to a customer and when the customer pays for that service will be one year or less. The following table identifies the disaggregation of the Company’s revenue for the years ended June 30, 2019, 2020, and 2021, respectively: For the years ended June 30, 2019 2020 2021 Revenue from operations: Event hosting $ 6,532,438 $ 7,630,377 $ 14,978,643 Event planning and execution 9,952,530 5,493,851 9,196,773 Brand promotion 2,432,720 2,241,869 750,315 Other services 114,078 321,983 600,826 Total revenue $ 19,031,766 $ 15,688,080 $ 25,526,557 Contract liability The Company presents the consideration that a customer pays before the Company transfers a service to the customer as a contract liability (deferred revenue) when the payment is made. Deferred revenue is the Company’s obligation to transfer services to a customer for which the Company has received consideration from the customer. As of June 30, 2020 and 2021 the balance of deferred revenue amounted to $1,764,608 and $1,648,847, respectively, and the movement of deferred revenue was as below. Amount June 30,2020 $ 1,764,608 Addition 8,070,036 Recognized as revenue within the year ended June 30, 2021 (8,185,797 ) June 30,2021 $ 1,648,847 The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. |
Cost of revenue | (n) Cost of revenue Cost of revenue consists primarily of event design costs, online program production costs, salary and benefits expenses, materials costs, and other related expenses. |
Selling and marketing costs | (o) Selling and marketing costs All costs related to selling and marketing are expensed as incurred. For the years ended June 30, 2019, 2020, and 2021, selling and marketing costs amounted to $133,332, $110,132, and $133,387, respectively. |
Income taxes | (p) Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of June 30, 2020 and 2021. The Company’s affiliated entities in the PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 ($14,563). In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. As of June 30, 2021, the tax years ended December 31, 2015 through December 31, 2020 for the Company’s affiliated entities in the PRC remain open for statutory examination by PRC tax authorities. |
Foreign currency translation | (q) Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s affiliated entities located in China is the Renminbi (“RMB”). For the entities whose functional currency is RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in determining comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The consolidated balance sheet amounts, with the exception of equity, at June 30, 2020 and 2021 were translated at RMB7.0697 to $1.00 and at RMB6.4579 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the years ended June 30, 2019, 2020, and 2021 were RMB6.8234 to $1.00, RMB7.0319 to $1.00, and RMB6.6228 to $1.00, respectively. |
Earnings per share | (r) Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (for example, convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The Company had no dilutive securities as of and for the years ended June 30, 2019, 2020, and 2021. |
Comprehensive income | (s) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. |
Commitments and contingencies | (t) Commitments and contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
Concentration and credit risk | (u) Concentration and credit risk 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 require submitting a payment application form together with suppliers’ invoices, shipping documents, and signed contracts. The Company maintains certain bank accounts in the PRC, where under the Deposit Insurance System in China, Hong Kong, and Cayman Islands. In China, a company’s deposits at one bank are insured for a maximum of RMB500,000 in the event of bank failure. In Hong Kong and Cayman Islands, deposits are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. As of June 30, 2020 and 2021, $219,767 and $1,314,910 of the Company’s cash were on deposit at financial institutions in the PRC, and $1,139,229 and $5,067 of the Company’s cash were on deposit at financial institutions in Hong Kong. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenue and accounts receivable with specific customers. For the fiscal year ended June 30, 2019, three major customers accounted for approximately 12%, 11%, and 10% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2020, three major customers accounted for approximately 18%, 9%, and 9% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2021, three major customers accounted for approximately 23%, 12%, and 8% of the Company’s total revenue, respectively. As of June 30, 2020, the top five customers accounted for 66% of net accounts receivable as of June 30, 2020, with each customer representing 22%, 15%, 10%, 10%, and 9% of the net accounts receivable balance, respectively. As of June 30, 2021, the top five customers accounted for 58% of net accounts receivable as of June 30, 2021, with each customer representing 16%, 15%, 10%, 9%, and 8% of the net accounts receivable balance, respectively. |
Segment reporting | (v) Segment reporting The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources, and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company’s CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical segments are presented. |
Related parties | (w) Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management, and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in Note 10. |
Non-controlling interests | (x) Non-controlling interests A non-controlling interest in the VIE of the Company represents the portion of the equity (net assets) in the VIE that has not been pledged to WFOE, consequently not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests respectively. On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 13—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE gained 100% control over Pop Culture. Upon this transaction, the Company consummated the acquisition of non-controlling interest in Pop Culture, and Pop Culture no longer have any non-controlling interest. On August 18, 2020, Xiamen Sikai was incorporated, 49% of which represented a non-controlling interest. Since Xiamen Sikai had no profit or loss during the fiscal year ended June 30, 2021, no net income or net loss was allocated to non-controlling interest. |
Recent accounting pronouncements | (y) Recent accounting pronouncements In June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For all other entities including emerging growth companies, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted ASU 2016-13 since July 1, 2021, the impact of which on the Company’s consolidated financial statements was immaterial. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements | Date of Place of Percentage Principal activities The Company January 3, 2020 Cayman 100% Parent Holding Wholly owned subsidiaries Pop HK January 20, 2020 Hong Kong 100% Investment holding WFOE March 13, 2020 PRC 100% WFOE, consultancy and information technology support VIE Pop Culture March 29, 2007 PRC VIE Event planning, execution, and hosting VIE’s subsidiaries Shanghai Pudu March 30, 2017 PRC 100% owned by VIE Event planning and execution Pop Network June 6, 2017 PRC 100% owned by VIE Marketing Zhongjing Pop December 19, 2018 PRC 100% owned by VIE Event planning and execution Shenzhen Pop January 17, 2020 PRC 100% owned by VIE Event planning and execution Xiamen Sikai August 18, 2020 PRC 51% owned by VIE Event planning and execution |
Schedule of financial statement amounts and balances of the VIE and its subsidiaries | As of June 30, 2020 2021 Total assets $ 21,514,514 $ 33,067,159 Total liabilities $ 9,178,871 $ 14,874,342 |
Schedule of income and cash flows | For the years ended 2019 2020 2021 Total revenue $ 19,031,766 $ 15,688,080 $ 24,871,302 Net income $ 3,831,758 $ 2,944,550 $ 4,571,795 Net cash used in operating activities $ 821,200 $ (2,255,959 ) $ (3,310,074 ) Net cash (used in) provided by investing activities $ (2,077,298 ) $ 3,261 $ - Net cash provided by financing activities $ 1,499,084 $ 1,777,271 $ 4,378,228 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment are stated at cost less accumulated depreciation and depreciated | Estimated Useful Life Office equipment 3 - 5 Years Motor vehicles 10 Years Leasehold improvement Shorter of useful life or lease term |
Schedule of the disaggregation of the company’s revenue | For the years ended June 30, 2019 2020 2021 Revenue from operations: Event hosting $ 6,532,438 $ 7,630,377 $ 14,978,643 Event planning and execution 9,952,530 5,493,851 9,196,773 Brand promotion 2,432,720 2,241,869 750,315 Other services 114,078 321,983 600,826 Total revenue $ 19,031,766 $ 15,688,080 $ 25,526,557 |
Schedule of deferred revenue | Amount June 30,2020 $ 1,764,608 Addition 8,070,036 Recognized as revenue within the year ended June 30, 2021 (8,185,797 ) June 30,2021 $ 1,648,847 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | As of June 30, 2020 2021 Accounts receivable - gross $ 15,156,143 $ 26,101,025 Allowance for doubtful accounts (345,997 ) (563,789 ) Accounts receivable, net $ 14,810,146 $ 25,537,236 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of prepaid expenses and other current assets | As of June 30, 2020 2021 Deferred costs (1) $ 709,293 $ 2,331,826 Deferred offering costs 409,743 1,197,177 Rental deposits 27,582 - Other receivables 31,329 51,912 1,177,947 3,580,915 Allowance for doubtful accounts (2) - (27,887 ) $ 1,177,947 $ 3,553,028 (1) Deferred costs represent the costs incurred to fulfill a contract with a customer which relates directly to a contract that the Company can specifically identify, generate, or enhance resources of the Company that will be used in satisfying performance obligations in the future as well as are expected to be recovered. As of June 30, 2021, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances carried out subsequently in July and August 2021. (2) The Company recorded bad debt expenses of $ nil nil |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of June 30, 2020 2021 Leasehold improvement $ 109,863 $ 120,271 Office equipment 42,949 47,018 152,812 167,289 Less: accumulated depreciation (81,531 ) (118,896 ) $ 71,281 $ 48,393 |
Intangible Asset (Tables)
Intangible Asset (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset | As of June 30, 2020 2021 Production copyright $ 2,014,117 $ 2,204,928 Less: accumulated amortization (318,902 ) (569,607 ) $ 1,695,215 $ 1,635,321 |
Schedule of amortization amount of intangible asset by fiscal years | 2022 $ 220,493 2023 220,493 2024 220,493 2025 220,493 2026 220,493 Thereafter 532,856 Total $ 1,635,321 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
AccountsPayableAndAccruedLiabilities | |
Schedule of accrued liabilities and other payables | As of June 30, 2020 2021 Payroll payables $ 42,755 $ 60,347 Other payables 76,818 17,220 $ 119,573 $ 77,567 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes payable | As of June 30, 2020 2021 Corporate income tax (1) $ 1,951,921 $ 3,632,709 Value-added tax (“VAT”) 421,766 585,979 Related surcharges on VAT payable 406 13,703 $ 2,374,093 $ 4,232,391 (1) The Company initially expected to settle the unpaid income tax liabilities in May 2021 when the 2020 annual income tax returns were filed with local tax authorities. Due to limited cash on hand in May 2021, however, the Company negotiated with local tax authorities to postpone the payment of income taxes. Accordingly, as of June 30, 2021, the Company had accrued interest of overdue payment of $37,473 for the unsettled corporate income tax according to PRC taxation regulation. As of October 2021, the Company has settled corporate income tax of $404,108 and expects to settle the remaining corporate income tax liabilities within one year. |
Bank Loans (Tables)
Bank Loans (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Schedule of short-term bank loans | Annual Interest As of June 30, Rate Maturities 2020 2021 Short-term loans: Xiamen Bank (1) 5.66 % July 18, 2020 $ 424,346 $ - Xiamen Bank (1) 5.65 % May 26, 2021 424,346 - Xiamen International Bank (1) 8.00 % October 31, 2020 990,141 - Industrial Bank Co., Ltd. (2) 5.00 % September 30, 2021 - 1,548,491 Xiamen International Bank (1) 8.00 % October 29, 2021 - 1,083,944 Xiamen Bank (4) 5.22 % August 10, 2021 - 309,698 Xiamen Bank (1) 5.22 % June 18, 2022 - 464,548 Xiamen Bank (1) 5.22 % June 22, 2022 - 309,698 Bank of China Ltd. (3) 4.70 % June 1, 2022 - 1,238,793 Subtotal 1,838,833 4,955,172 Current portion of long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 - 46,454 Bank of China Ltd. (3) 4.15 % December 29, 2023 - 108,394 Bank of China Ltd. (3) 5.10 % April 15, 2024 - 30,970 Total $ 1,838,833 $ 5,140,990 Annual Interest As of June 30, Rate Maturities 2020 2021 Long-term loans: Bank of China Ltd. (3) 3.80 % November 26,2023 $ - $ 418,093 Bank of China Ltd. (3) 4.15 % December 29, 2023 - 975,549 Bank of China Ltd. (3) 5.10 % April 15, 2024 - 278,728 Total $ - $ 1,672,370 (1) Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. On October 29, 2021, the Company repaid the one-year bank loan of RMB7,000,000 (equivalent to $1,083,944) with Xiamen International Bank with an annual interest rate of 8%. (2) On February 4, 2021, Pop Culture entered into a factoring agreement with Industrial Bank Co., Ltd. and received a total of RMB10,000,000 (equivalent to $1,548,491) on February 4, 2021 by factoring the receivables due from customers of RMB13,000,000 (equivalent to $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. (3) Loans from Bank of China were guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company. (4) This loan was jointly guaranteed by Mr. Zhuoqin Huang and his spouse, and Taiping General Insurance Co., Ltd. Xiamen Branch. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes Disclosure [Abstract] | |
Schedule of components of income tax | For the years ended 2019 2020 2021 Current income tax provision $ 1,297,035 $ 541,251 $ 1,464,674 Deferred income tax benefit (8,053 ) (84,246 ) (47,802 ) Total $ 1,288,982 $ 457,005 $ 1,416,872 |
Schedule of reconciles the statutory rate to the Company’s effective tax rate | For the years ended 2019 2020 2021 China Statutory income tax rate 25.00 % 25.00 % 25.00 % Permanent difference 0.17 % (2.15 )% 0.71 % Effect of favorable tax rates on small-scale and low-profit entities - % (8.03 )% (0.79 )% Effective tax rate 25.17 % 14.82 % 24.92 % |
Schedule of Accounting for Income Taxes | As of June 30, 2020 2021 Deferred tax assets: Net operating loss carry forwards $ 121 $ 107 Allowance for doubtful accounts 83,698 140,650 Total deferred tax assets 83,819 140,757 Valuation allowance (24) - Total deferred tax assets, net $ 83,795 $ 140,757 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Operating Leases Of Lessee Disclosures [Abstract] | |
Schedule of supplemental balance sheet information related to operating lease | As of June 30, 2020 2021 Right-of-use assets $ 278,260 $ 194,747 Operating lease liabilities - current $ 96,357 $ 98,427 Operating lease liabilities - non-current 189,994 104,755 Total operating lease liabilities $ 286,351 $ 203,182 |
Schedule of weighted average remaining lease terms and discount rates for the operating lease | Weighted average remaining lease term (years) 2.15 Weighted average discount rate 6.92 % |
Schedule of future minimum rent payable under non-cancelable operating leases | 2022 $ 101,227 2023 101,227 Thereafter 16,871 Total lease payments 219,325 Less: imputed interest (16,143 ) Present value of lease liabilities $ 203,182 |
Statutory Reserve (Tables)
Statutory Reserve (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Statutory Reserve [Abstarct] | |
Schedule of statutory reserve | Balance - June 30, 2019 $ 503,640 Appropriation to statutory reserve 275,454 Balance - June 30, 2020 779,094 Appropriation to statutory reserve 462,479 Balance - June 30, 2021 $ 1,241,573 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | As of June 30, 2020 2021 ASSETS Cash $ 1,139,229 $ 4,260 Advance to suppliers 30,000 - Prepaid expenses and other current assets 220,031 679,266 TOTAL CURRENT ASSETS 1,389,260 683,526 Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries 11,530,462 18,869,579 TOTAL ASSETS 12,919,722 19,553,105 LIABILITIES AND SHAREHOLDERS’ EQUITY Due to a related party $ - $ 225,000 TOTAL CURRENT LIABILITIES $ - $ 225,000 TOTAL LIABILITIES - 225,000 SHAREHOLDERS’ EQUITY Ordinary shares (par value $0.001 per share; 44,000,000 Class A ordinary shares authorized as of June 30, 2020 and 2021; 11,021,834 and 12,086,923 Class A ordinary shares issued and outstanding as of June 30, 2020 and 2021 respectively; 6,000,000 Class B ordinary shares authorized, 5,763,077 Class B ordinary shares issued and outstanding as of June 30 2020 and 2021 respectively.) * 16,785 17,850 Subscription receivable (15,441 ) (15,441 ) Additional paid-in capital 5,813,745 6,643,118 Retained earnings 7,472,214 11,739,756 Accumulated other comprehensive (loss) income (367,581 ) 942,822 TOTAL SHAREHOLDERS’ EQUITY 12,919,722 19,328,105 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 12,919,722 $ 19,553,105 * Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Schedule of condensed statements of income and comprehensive income | For the years ended 2019 2020 2021 General and administrative expenses $ - $ 318,634 $ 330,734 Loss from operation - 318,634 330,734 Other income: Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries 3,584,514 2,754,455 4,598,276 Income before income tax expense 3,584,514 2,435,821 4,267,542 Income tax expense - - - Net income $ 3,584,514 $ 2,435,821 $ 4,267,542 Other Comprehensive loss Foreign currency translation (loss) income (152,343 ) (226,235 ) 1,335,757 Total comprehensive income $ 3,432,171 $ 2,209,586 $ 5,603,299 |
Schedule of condensed statements of changes in shareholders' equity | Ordinary shares Subscription Additional paid-in Retained Accumulated Total Shares* Amount receivable capital earnings (loss) income Equity Balance as of July 1, 2018 13,425,911 $ 13,426 $ (13,426 ) $ 2,142,518 $ 1,451,879 $ 10,997 $ 3,605,394 Net income - - - - 3,584,514 - 3,584,514 Foreign currency translation adjustment - - - - - (152,343 ) (152,343 ) Balance as of June 30, 2019 13,425,911 $ 13,426 $ (13,426 ) $ 2,142,518 $ 5,036,393 $ (141,346 ) $ 7,037,565 Issuance of additional shares 3,359,000 3,359 (2,015 ) 3,671,227 - - 3,672,571 Net income - - - - 2,435,821 - 2,435,821 Foreign currency translation adjustment - - - - (226,235 ) (226,235 ) Balance as of June 30, 2020 16,784,911 $ 16,785 $ (15,441 ) $ 5,813,745 $ 7,472,214 $ (367,581 ) $ 12,919,722 Acquisition of Non-controlling interests 1,065,089 1,065 829,373 - (25,354 ) 805,084 Net income for the period - - - - 4,267,542 - 4,267,542 Foreign currency translation adjustment - - - - - 1,335,757 1,335,757 Balance as of June 30, 2021 17,850,000 $ 17,850 $ (15,441 ) $ 6,643,118 $ 11,739,756 $ 942,822 $ 19,328,105 * Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Schedule of condensed statements of cash flows | For the years ended June 30, 2019 2020 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ - $ (348,870 ) $ (75,805 ) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in a subsidiary - - (600,000 ) Net cash used in investing activities - - (600,000 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of shares - 1,707,893 - Payment for deferred offering costs - (220,031 ) (459,164 ) Net cash provided by (used in) financing activities - 1,487,862 (459,164 ) Effect of exchange rate changes - 237 - Net increase (decrease) in cash - 1,139,229 (1,134,969 ) Cash at beginning of period - - 1,139,229 Cash at end of period $ - $ 1,139,229 $ 4,260 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - shares | 12 Months Ended | ||||
Jun. 30, 2021 | Feb. 19, 2021 | Feb. 09, 2021 | Aug. 18, 2020 | Mar. 30, 2020 | |
Organization and Principal Activities (Details) [Line Items] | |||||
Percentage of shares | 51.00% | 93.55% | |||
Owns equity interests | 100.00% | ||||
Non-controlling interests | 6.45% | ||||
WFOE gained | 100.00% | ||||
Class A Ordinary Shares [Member] | |||||
Organization and Principal Activities (Details) [Line Items] | |||||
Non-controlling shareholders (in Shares) | 1,065,089 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of consolidated financial statements | 12 Months Ended |
Jun. 30, 2021 | |
The Company [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Jan. 3, 2020 |
Place of incorporation | Cayman Islands |
Percentage of ownership | 100% |
Principal activities | Parent Holding |
Pop HK [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Jan. 20, 2020 |
Place of incorporation | Hong Kong |
Percentage of ownership | 100% |
Principal activities | Investment holding |
WFOE [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Mar. 13, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 100% |
Principal activities | WFOE, consultancy and information technology support |
Pop Culture [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Mar. 29, 2007 |
Place of incorporation | PRC |
Percentage of ownership | VIE |
Principal activities | Event planning, execution, and hosting |
Shanghai Pudu [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Mar. 30, 2017 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Event planning and execution |
Pop Network [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Jun. 6, 2017 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Marketing |
Zhongjing Pop [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Dec. 19, 2018 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Event planning and execution |
Shenzhen Pop [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Jan. 17, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Event planning and execution |
Xiamen Sikai [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Date of incorporation | Aug. 18, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 51% owned by VIE |
Principal activities | Event planning and execution |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of financial statement amounts and balances of the VIE and its subsidiaries - USD ($) | Jun. 30, 2021 | Jun. 30, 2019 |
Schedule of financial statement amounts and balances of the VIE and its subsidiaries [Abstract] | ||
Total assets | $ 33,067,159 | $ 21,514,514 |
Total liabilities | $ 14,874,342 | $ 9,178,871 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of income and cash flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of income and cash flows [Abstract] | |||
Total revenue | $ 24,871,302 | $ 15,688,080 | $ 19,031,766 |
Net income | 4,571,795 | 2,944,550 | 3,831,758 |
Net cash used in operating activities | (3,310,074) | (2,255,959) | 821,200 |
Net cash (used in) provided by investing activities | 3,261 | (2,077,298) | |
Net cash provided by financing activities | $ 4,378,228 | $ 1,777,271 | $ 1,499,084 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Feb. 19, 2021 | Feb. 09, 2021shares | Aug. 18, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash (in Dollars) | $ 1,319,977 | $ 1,359,137 | |||||
Amortized straight line method | 10 years | 10 years | |||||
VAT rate percentage | 6.00% | 6.00% | 6.00% | ||||
Deferred revenue (in Dollars) | $ 1,648,847 | $ 1,764,608 | |||||
Selling and marketing costs (in Dollars) | 133,387 | 110,132 | $ 133,332 | ||||
Underpayment of taxes | $ (14,563) | ¥ 100,000 | |||||
Statute limitation | 10 years | 10 years | |||||
Exception of equity, description | The consolidated balance sheet amounts, with the exception of equity, at June 30, 2020 and 2021 were translated at RMB7.0697 to $1.00 and at RMB6.4579 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the years ended June 30, 2019, 2020, and 2021 were RMB6.8234 to $1.00, RMB7.0319 to $1.00, and RMB6.6228 to $1.00, respectively. | The consolidated balance sheet amounts, with the exception of equity, at June 30, 2020 and 2021 were translated at RMB7.0697 to $1.00 and at RMB6.4579 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the years ended June 30, 2019, 2020, and 2021 were RMB6.8234 to $1.00, RMB7.0319 to $1.00, and RMB6.6228 to $1.00, respectively. | |||||
Company deposits (in Yuan Renminbi) | ¥ | ¥ 500,000 | ||||||
Deposits (in Dollars) | $ 1,314,910 | 219,767 | |||||
Payments for deposits (in Dollars) | $ 5,067 | $ 1,139,229 | |||||
Accounts receivable percentage | 58.00% | 66.00% | |||||
Purchase rate percentage | 16.00% | 14.00% | |||||
Non-controlling interests | 6.45% | 49.00% | |||||
WFOE gained | 100.00% | ||||||
Beijing Dayu Play Culture Media Co., Ltd [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Aggregation, Policy [Policy Text Block] | 14% | 14% | |||||
Xiamen Liubenmu Culture Media Co., Ltd [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Aggregation, Policy [Policy Text Block] | 13% | 13% | |||||
Xiamen Lanjie Culture Media Co., Ltd [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Aggregation, Policy [Policy Text Block] | 12% | 12% | |||||
Customer 1 [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Accounts receivable percentage | 16.00% | 22.00% | |||||
Customer 2 [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Accounts receivable percentage | 15.00% | 15.00% | |||||
Customer 3 [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Accounts receivable percentage | 10.00% | 10.00% | |||||
Customer 5 [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Accounts receivable percentage | 9.00% | 10.00% | |||||
Customer 4 [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Accounts receivable percentage | 8.00% | 9.00% | |||||
Heng’an (China) Paper Industry Company Ltd. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue percentage | 8.00% | 12.00% | |||||
Guangzhou Taiji Advertising Co., Ltd. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue percentage | 18.00% | 11.00% | |||||
Xiamen Many Idea Interactive Co., Ltd. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue percentage | 23.00% | 9.00% | 10.00% | ||||
Fujian Maibo Culture Communication Co., Ltd. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue percentage | 9.00% | ||||||
Fuzhou New Civic Culture Communication Co. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue percentage | 12.00% | ||||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Limitations of underpayment | 3 years | 3 years | |||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Limitations of underpayment | 5 years | 5 years | |||||
Class A ordinary shares [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ordinary shares issued (in Shares) | shares | 1,065,089 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation and depreciated | 12 Months Ended |
Jun. 30, 2021 | |
Motor vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Leasehold improvement [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | Shorter of useful life or lease term |
Minimum [Member] | Office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of the disaggregation of the company’s revenue - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from operations: | |||
Total revenue | $ 25,526,557 | $ 15,688,080 | $ 19,031,766 |
Event hosting [Member] | |||
Revenue from operations: | |||
Total revenue | 14,978,643 | 7,630,377 | 6,532,438 |
Event planning and execution [Member] | |||
Revenue from operations: | |||
Total revenue | 9,196,773 | 5,493,851 | 9,952,530 |
Brand promotion [Member] | |||
Revenue from operations: | |||
Total revenue | 750,315 | 2,241,869 | 2,432,720 |
Other services [Member] | |||
Revenue from operations: | |||
Total revenue | $ 600,826 | $ 321,983 | $ 114,078 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Schedule of deferred revenue [Abstract] | |
June 30,2020 | $ 1,764,608 |
Addition | 8,070,036 |
Recognized as revenue within the year ended June 30, 2021 | (8,185,797) |
June 30,2021 | $ 1,648,847 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Credit Loss, Additional Improvements [Abstract] | ||
Bad debt expenses | $ 180,408 | $ 324,345 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable - gross | $ 26,101,025 | $ 15,156,143 |
Allowance for doubtful accounts | (563,789) | (345,997) |
Accounts receivable, net | $ 25,537,236 | $ 14,810,146 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |||
Bad debt expenses | $ 27,887 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of prepaid expenses and other current assets [Abstract] | |||
Deferred costs | [1] | $ 2,331,826 | $ 709,293 |
Deferred offering costs | 1,197,177 | 409,743 | |
Rental deposits | 27,582 | ||
Other receivables | 51,912 | 31,329 | |
Total | 3,580,915 | 1,177,947 | |
Allowance for doubtful accounts | [2] | (27,887) | |
Total allowance net | $ 3,553,028 | $ 1,177,947 | |
[1] | Deferred costs represent the costs incurred to fulfill a contract with a customer which relates directly to a contract that the Company can specifically identify, generate, or enhance resources of the Company that will be used in satisfying performance obligations in the future as well as are expected to be recovered. As of June 30, 2021, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances carried out subsequently in July and August 2021. | ||
[2] | The Company recorded bad debt expenses of $ nil nil |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses amounted | $ 28,902 | $ 30,859 | $ 37,621 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 167,289 | $ 152,812 |
Less: accumulated depreciation | (118,896) | (81,531) |
Property and equipment, net | 48,393 | 71,281 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 120,271 | 109,863 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 47,018 | $ 42,949 |
Intangible Asset (Details)
Intangible Asset (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Cash consideration amount | $ 2,086,819 | |||
Amortization expense | $ 215,003 | $ 202,494 | $ 121,731 |
Intangible Asset (Details) - Sc
Intangible Asset (Details) - Schedule of intangible asset - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of intangible asset [Abstract] | ||
Production copyright | $ 2,204,928 | $ 2,014,117 |
Less: accumulated amortization | (569,607) | (318,902) |
Total intangible assets | $ 1,635,321 | $ 1,695,215 |
Intangible Asset (Details) - _2
Intangible Asset (Details) - Schedule of amortization amount of intangible asset by fiscal years | Jun. 30, 2021USD ($) |
Schedule of amortization amount of intangible asset by fiscal years [Abstract] | |
2022 | $ 220,493 |
2023 | 220,493 |
2024 | 220,493 |
2025 | 220,493 |
2026 | 220,493 |
Thereafter | 532,856 |
Total | $ 1,635,321 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of accrued liabilities and other payables - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of accrued liabilities and other payables [Abstract] | ||
Payroll payables | $ 60,347 | $ 42,755 |
Other payables | 17,220 | 76,818 |
Total | $ 77,567 | $ 119,573 |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | ||
Penalty amount | $ 37,473 | |
Corporate income tax | $ 404,108 | |
Income tax liability year | 1 year |
Taxes Payable (Details) - Sched
Taxes Payable (Details) - Schedule of taxes payable - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of taxes payable [Abstract] | |||
Corporate income tax | [1] | $ 3,632,709 | $ 1,951,921 |
Value-added tax (“VAT”) | 585,979 | 421,766 | |
Related surcharges on VAT payable | 13,703 | 406 | |
Total | $ 4,232,391 | $ 2,374,093 | |
[1] | The Company initially expected to settle the unpaid income tax liabilities in May 2021 when the 2020 annual income tax returns were filed with local tax authorities. Due to limited cash on hand in May 2021, however, the Company negotiated with local tax authorities to postpone the payment of income taxes. Accordingly, as of June 30, 2021, the Company had accrued interest of overdue payment of $37,473 for the unsettled corporate income tax according to PRC taxation regulation. As of October 2021, the Company has settled corporate income tax of $404,108 and expects to settle the remaining corporate income tax liabilities within one year. |
Bank Loans (Details)
Bank Loans (Details) | Feb. 04, 2021USD ($) | Feb. 04, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Federal Home Loan Banks [Abstract] | |||||
Short-term bank loans outstanding | 5.58% | 6.92% | |||
Interest rate for bank loans | 6.26% | 7.21% | 9.89% | ||
Bank loans | $ 228,806 | $ 125,186 | $ 123,205 | ||
Chief executive officer, description | Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. On October 29, 2021, the Company repaid the one-year bank loan of RMB7,000,000 (equivalent to $1,083,944) with Xiamen International Bank with an annual interest rate of 8%. | ||||
Total received | $ 1,548,491 | ¥ 10,000,000 | |||
Factoring the receivables due from customers | $ 2,013,038 | ¥ 13,000,000 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Short-term loans: | |||
Total | $ 1,672,370 | ||
Total | 5,140,990 | 1,838,833 | |
Subtotal | $ 4,955,172 | 1,838,833 | |
Bank of China Ltd [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 3.80% | |
Maturities | [1] | Nov. 26, 2023 | |
Total | [1] | $ 46,454 | |
Bank of China Ltd One [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 4.15% | |
Maturities | [1] | Dec. 29, 2023 | |
Total | [1] | $ 108,394 | |
Bank of China Ltd Two [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 5.10% | |
Maturities | [1] | Apr. 15, 2024 | |
Total | [1] | $ 30,970 | |
Bank of China Ltd Three [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 3.80% | |
Maturities | [1] | Nov. 26, 2023 | |
Total | [1] | $ 418,093 | |
Bank of China Ltd Four [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 4.15% | |
Maturities | [1] | Dec. 29, 2023 | |
Total | [1] | $ 975,549 | |
Bank of China Ltd Five [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 5.10% | |
Maturities | [1] | Apr. 15, 2024 | |
Total | [1] | $ 278,728 | |
Xiamen Bank [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 5.66% | |
Maturities | [2] | Jul. 18, 2020 | |
Total | [2] | 424,346 | |
Xiamen Bank One [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 5.65% | |
Maturities | [2] | May 26, 2021 | |
Total | [2] | 424,346 | |
Xiamen International Bank [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 8.00% | |
Maturities | [2] | Oct. 31, 2020 | |
Total | [2] | 990,141 | |
Industrial Bank Co. Ltd [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [3] | 5.00% | |
Maturities | [3] | Sep. 30, 2021 | |
Total | [3] | $ 1,548,491 | |
Xiamen International Bank One [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 8.00% | |
Maturities | [2] | Oct. 29, 2021 | |
Total | [2] | $ 1,083,944 | |
Xiamen Bank Two [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [4] | 5.22% | |
Maturities | [4] | Aug. 10, 2021 | |
Total | [4] | $ 309,698 | |
Xiamen Bank Three [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 5.22% | |
Maturities | [2] | Jun. 18, 2022 | |
Total | [2] | $ 464,548 | |
Xiamen Bank Four [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 5.22% | |
Maturities | [2] | Jun. 22, 2022 | |
Total | [2] | $ 309,698 | |
Bank of China Ltd [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 4.70% | |
Maturities | [1] | Jun. 1, 2022 | |
Total | [1] | $ 1,238,793 | |
[1] | Loans from Bank of China were guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company. | ||
[2] | Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. On October 29, 2021, the Company repaid the one-year bank loan of RMB7,000,000 (equivalent to $1,083,944) with Xiamen International Bank with an annual interest rate of 8%. | ||
[3] | On February 4, 2021, Pop Culture entered into a factoring agreement with Industrial Bank Co., Ltd. and received a total of RMB10,000,000 (equivalent to $1,548,491) on February 4, 2021 by factoring the receivables due from customers of RMB13,000,000 (equivalent to $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. | ||
[4] | This loan was jointly guaranteed by Mr. Zhuoqin Huang and his spouse, and Taiping General Insurance Co., Ltd. Xiamen Branch. |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Related Party Transactions [Abstract] | |
Working capital | $ 225,000 |
Income Taxes (Details)
Income Taxes (Details) $ / shares in Units, ¥ in Millions, $ in Millions | Mar. 21, 2018HKD ($) | Dec. 31, 2021CNY (¥) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2021CNY (¥) | Jun. 30, 2020USD ($)$ / shares |
Income Taxes (Details) [Line Items] | |||||
Profits tax rates (in Dollars) | $ | $ 2 | ||||
Tax percentage | 8.25% | ||||
Taxed percentage | 16.50% | ||||
Accounting standards rate | 25.00% | ||||
Taxable income (in Yuan Renminbi) | ¥ 3 | ¥ 1 | |||
Decreased current income taxes (in Dollars) | $ | $ 44,894 | $ 247,387 | |||
Net income per share (in Dollars per share) | $ / shares | $ 0.003 | $ 0.017 | |||
Minimum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Taxable income (in Yuan Renminbi) | ¥ 1 | ||||
Preferential tax rate | 5.00% | ||||
Maximum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Taxable income (in Yuan Renminbi) | ¥ 3 | ||||
Preferential tax rate | 10.00% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of income tax - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of components of income tax [Abstract] | |||
Current income tax provision | $ 1,464,674 | $ 541,251 | $ 1,297,035 |
Deferred income tax benefit | (47,802) | (84,246) | (8,053) |
Total | $ 1,416,872 | $ 457,005 | $ 1,288,982 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciles the statutory rate to the Company’s effective tax rate | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of reconciles the statutory rate to the Company’s effective tax rate [Abstract] | |||
China Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Permanent difference | 0.71% | (2.15%) | 0.17% |
Effect of favorable tax rates on small-scale and low-profit entities | (0.79%) | (8.03%) | |
Effective tax rate | 24.92% | 14.82% | 25.17% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Accounting for Income Taxes - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 107 | $ 121 |
Allowance for doubtful accounts | 140,650 | 83,698 |
Total deferred tax assets | 140,757 | 83,819 |
Valuation allowance | (24) | |
Total deferred tax assets, net | $ 140,757 | $ 83,795 |
Lease (Details)
Lease (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Leases Of Lessee Disclosures [Abstract] | |||
Operating lease expense | $ 107,139 | $ 89,977 | $ 115,464 |
Lease (Details) - Schedule of s
Lease (Details) - Schedule of supplemental balance sheet information related to operating lease - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of supplemental balance sheet information related to operating lease [Abstract] | ||
Right-of-use assets | $ 194,747 | $ 278,260 |
Operating lease liabilities - current | 98,427 | 96,357 |
Operating lease liabilities - non-current | 104,755 | 189,994 |
Total operating lease liabilities | $ 203,182 | $ 286,351 |
Lease (Details) - Schedule of w
Lease (Details) - Schedule of weighted average remaining lease terms and discount rates for the operating lease | Jun. 30, 2021 |
Schedule of weighted average remaining lease terms and discount rates for the operating lease [Abstract] | |
Weighted average remaining lease term (years) | 2 years 1 month 24 days |
Weighted average discount rate | 6.92% |
Lease (Details) - Schedule of f
Lease (Details) - Schedule of future minimum rent payable under non-cancelable operating leases | Jun. 30, 2021USD ($) |
Schedule of future minimum rent payable under non-cancelable operating leases [Abstract] | |
2022 | $ 101,227 |
2023 | 101,227 |
Thereafter | 16,871 |
Total lease payments | 219,325 |
Less: imputed interest | (16,143) |
Present value of lease liabilities | $ 203,182 |
Ordinary Shares (Details)
Ordinary Shares (Details) - USD ($) | Feb. 09, 2021 | Jan. 03, 2020 | May 30, 2020 | Apr. 28, 2020 | Feb. 22, 2020 | Oct. 31, 2019 |
Ordinary Shares (Details) [Line Items] | ||||||
Ordinary shares issued | 3,760,911 | |||||
Per share (in Dollars per share) | $ 0.001 | |||||
Ordinary shares issued (in Dollars per share) | $ 2,015,400 | |||||
Capital injection (in Dollars) | $ 2,557,654 | |||||
Redesignation, description | the re-designation of 5,763,077 of the Company’s issued ordinary shares held by Joya Enterprises Limited into 5,763,077 Class B ordinary shares and an aggregate of 9,178,234 of the Company’s issued ordinary shares held by Joya Enterprises Limited and certain other shareholders into 9,178,234 Class A ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. In respect of matters requiring a shareholder vote, each holder of Class A ordinary shares will be entitled to one vote per one Class A ordinary share and each holder of Class B ordinary shares will be entitled to seven votes per one Class B ordinary share. The Class A ordinary shares are not convertible into shares of any other class. The Class B ordinary shares are convertible into Class A ordinary shares at any time after issuance at the option of the holder on a one-to-one basis. | |||||
Joya Enterprises Limited [Member] | ||||||
Ordinary Shares (Details) [Line Items] | ||||||
Ordinary shares issued | 9,165,000 | |||||
Per share (in Dollars per share) | $ 0.001 | |||||
Class A Ordinary Shares [Member] | ||||||
Ordinary Shares (Details) [Line Items] | ||||||
Ordinary shares issued | 1,065,089 | 500,000 | ||||
Nominal cash consideration (in Dollars) | $ 500 | |||||
Aggregate share issued | 1,343,600 | |||||
Investors for cash consideration (in Dollars) | $ 1,707,893 | |||||
Non controlling interests | 6.45% |
Statutory Reserve (Details)
Statutory Reserve (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Insurance [Abstract] | ||
Net profit after income tax percentage | 10.00% | |
Registered capital percentage | 50.00% | |
Registered capital amount | $ 2,663,330 | $ 2,663,330 |
Statutory Reserve (Details) - S
Statutory Reserve (Details) - Schedule of statutory reserve - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of statutory reserve [Abstract] | ||
Balance | $ 779,094 | $ 503,640 |
Appropriation to statutory reserve | 462,479 | 275,454 |
Balance | $ 1,241,573 | $ 779,094 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Restricted Net Assets [Abstract] | ||
Restricted net assets | $ 6,778,206 | $ 4,886,290 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 02, 2021shares | Jun. 30, 2021USD ($)$ / sharesshares | Oct. 29, 2021USD ($) | Oct. 29, 2021CNY (¥) | Oct. 22, 2021USD ($) | Sep. 17, 2021USD ($) | Sep. 17, 2021CNY (¥) | Aug. 10, 2021USD ($) | Aug. 10, 2021CNY (¥) |
Subsequent Events (Details) [Line Items] | |||||||||
Aggregrate amount | $ 34,839,398 | ||||||||
Purchased shares (in Shares) | shares | 6,200,000 | ||||||||
Underwriting discounts and expenses | $ 37,200,000 | ||||||||
Accounts receivable, percentage | 40.65% | ||||||||
Interest rate percentage | 8.00% | 8.00% | |||||||
Xiamen Bank [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Interest rate percentage | 5.22% | 5.22% | |||||||
Xiamen Bank [Member] | Subsequent Event [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Repaid bank loan | $ 309,698 | ¥ 2,000,000 | |||||||
Forecast [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Accounts receivable | $ 10,381,816 | ||||||||
Forecast [Member] | Industrial Bank Co. Ltd [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Repaid bank loan | $ 1,548,491 | ¥ 10,000,000 | |||||||
Forecast [Member] | Xiamen International Bank [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Repaid bank loan | $ 1,083,944 | ¥ 7,000,000 | |||||||
Class A Ordinary Shares [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Price per share (in Dollars per share) | $ / shares | $ 6 | ||||||||
Class A Ordinary Shares [Member] | Initial Public Offering [Member] | Subsequent Event [Member] | |||||||||
Subsequent Events (Details) [Line Items] | |||||||||
Shares issued (in Shares) | shares | 6,200,000 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed balance sheets - Parent Company [Member] - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
ASSETS | |||
Cash | $ 4,260 | $ 1,139,229 | |
Advance to suppliers | 30,000 | ||
Prepaid expenses and other current assets | 679,266 | 220,031 | |
TOTAL CURRENT ASSETS | 683,526 | 1,389,260 | |
Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries | 18,869,579 | 11,530,462 | |
TOTAL ASSETS | 19,553,105 | 12,919,722 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Due to a related party | 225,000 | ||
TOTAL CURRENT LIABILITIES | 225,000 | ||
TOTAL LIABILITIES | 225,000 | ||
SHAREHOLDERS’ EQUITY | |||
Ordinary shares (par value $0.001 per share; 44,000,000 Class A ordinary shares authorized as of June 30, 2020 and 2021; 11,021,834 and 12,086,923 Class A ordinary shares issued and outstanding as of June 30, 2020 and 2021 respectively; 6,000,000 Class B ordinary shares authorized, 5,763,077 Class B ordinary shares issued and outstanding as of June 30 2020 and 2021 respectively.) | [1] | 17,850 | 16,785 |
Subscription receivable | (15,441) | (15,441) | |
Additional paid-in capital | 6,643,118 | 5,813,745 | |
Retained earnings | 11,739,756 | 7,472,214 | |
Accumulated other comprehensive (loss) income | 942,822 | (367,581) | |
TOTAL SHAREHOLDERS’ EQUITY | 19,328,105 | 12,919,722 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 19,553,105 | $ 12,919,722 | |
[1] | Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Class A ordinary shares [Member] | ||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed balance sheets (Parentheticals) [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 44,000,000 | 44,000,000 |
Ordinary shares, shares issued | 12,086,923 | 11,021,834 |
Ordinary shares, shares outstanding | 12,086,923 | 11,021,834 |
Class B ordinary shares [Member] | ||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed balance sheets (Parentheticals) [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 6,000,000 | 6,000,000 |
Ordinary shares, shares issued | 5,763,077 | 5,763,077 |
Ordinary shares, shares outstanding | 5,763,077 | 5,763,077 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of income and comprehensive income - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
General and administrative expenses | $ 330,734 | $ 318,634 | |
Loss from operation | 330,734 | 318,634 | |
Other income: | |||
Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries | 4,598,276 | 2,754,455 | 3,584,514 |
Income before income tax expense | 4,267,542 | 2,435,821 | 3,584,514 |
Income tax expense | |||
Net income | 4,267,542 | 2,435,821 | 3,584,514 |
Other Comprehensive loss | |||
Foreign currency translation (loss) income | 1,335,757 | (226,235) | (152,343) |
Total comprehensive income | $ 5,603,299 | $ 2,209,586 | $ 3,432,171 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity - Parent Company [Member] - USD ($) | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity [Line Items] | ||||
Balance | $ 12,919,722 | $ 7,037,565 | $ 3,605,394 | |
Issuance of additional shares | 3,672,571 | |||
Acquisition of Non-controlling interests | 805,084 | |||
Net income | 4,267,542 | 2,435,821 | 3,584,514 | |
Foreign currency translation adjustment | 1,335,757 | (226,235) | (152,343) | |
Balance | $ 19,328,105 | $ 12,919,722 | $ 7,037,565 | |
Ordinary shares [Member] | ||||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity [Line Items] | ||||
Balance (in Shares) | [1] | 16,784,911 | 13,425,911 | 13,425,911 |
Balance | $ 16,785 | $ 13,426 | $ 13,426 | |
Issuance of additional shares (in Shares) | [1] | 3,359,000 | ||
Issuance of additional shares | $ 3,359 | |||
Acquisition of Non-controlling interests (in Shares) | [1] | 1,065,089 | ||
Acquisition of Non-controlling interests | $ 1,065 | |||
Net income | ||||
Foreign currency translation adjustment | ||||
Balance (in Shares) | [1] | 17,850,000 | 16,784,911 | 13,425,911 |
Balance | $ 17,850 | $ 16,785 | $ 13,426 | |
Subscription receivable [Member] | ||||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity [Line Items] | ||||
Balance | (15,441) | (13,426) | (13,426) | |
Issuance of additional shares | (2,015) | |||
Net income | ||||
Foreign currency translation adjustment | ||||
Balance | (15,441) | (15,441) | (13,426) | |
Additional paid-in capital [Member] | ||||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity [Line Items] | ||||
Balance | 5,813,745 | 2,142,518 | 2,142,518 | |
Issuance of additional shares | 3,671,227 | |||
Acquisition of Non-controlling interests | 829,373 | |||
Net income | ||||
Foreign currency translation adjustment | ||||
Balance | 6,643,118 | 5,813,745 | 2,142,518 | |
Retained earnings [Member] | ||||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity [Line Items] | ||||
Balance | 7,472,214 | 5,036,393 | 1,451,879 | |
Issuance of additional shares | ||||
Acquisition of Non-controlling interests | ||||
Net income | 4,267,542 | 2,435,821 | 3,584,514 | |
Foreign currency translation adjustment | ||||
Balance | 11,739,756 | 7,472,214 | 5,036,393 | |
Accumulated other comprehensive (loss) income [Member] | ||||
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of changes in shareholders' equity [Line Items] | ||||
Balance | (367,581) | (141,346) | 10,997 | |
Issuance of additional shares | ||||
Acquisition of Non-controlling interests | (25,354) | |||
Net income | ||||
Foreign currency translation adjustment | 1,335,757 | (226,235) | (152,343) | |
Balance | $ 942,822 | $ (367,581) | $ (141,346) | |
[1] | Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Parent Company Only Condensed_7
Parent Company Only Condensed Financial Information (Details) - Schedule of condensed statements of cash flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash used in operating activities | $ (75,805) | $ (348,870) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Investment in a subsidiary | (600,000) | ||
Net cash used in investing activities | (600,000) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of shares | 1,707,893 | ||
Payment for deferred offering costs | (459,164) | (220,031) | |
Net cash provided by (used in) financing activities | (459,164) | 1,487,862 | |
Effect of exchange rate changes | 237 | ||
Net increase (decrease) in cash | (1,134,969) | 1,139,229 | |
Cash at beginning of period | 1,139,229 | ||
Cash at end of period | $ 4,260 | $ 1,139,229 |