Document And Entity Information
Document And Entity Information | 6 Months Ended |
Dec. 31, 2021 | |
Document Information Line Items | |
Entity Registrant Name | POP CULTURE GROUP CO., LTD |
Document Type | 6-K |
Current Fiscal Year End Date | --06-30 |
Amendment Flag | false |
Entity Central Index Key | 0001807389 |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-40543 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
CURRENT ASSETS: | ||
Cash | $ 28,510,993 | $ 1,319,977 |
Accounts receivable, net | 26,566,497 | 25,537,236 |
Advance to suppliers | 6,452,036 | 1,999,876 |
Prepaid expenses and other current assets | 1,384,074 | 3,553,028 |
TOTAL CURRENT ASSETS | 62,913,600 | 32,410,117 |
Property and equipment, net | 105,068 | 48,393 |
Intangible asset, net | 1,545,488 | 1,635,321 |
Operating right-of-use asset | 155,359 | 194,747 |
Deferred tax assets | 403,302 | 140,757 |
Other non-current assets | 740,197 | |
TOTAL ASSETS | 65,863,014 | 34,429,335 |
CURRENT LIABILITIES: | ||
Short-term bank loans | 3,985,814 | 5,140,990 |
Accounts payable | 1,238,992 | 1,900,883 |
Deferred revenue | 393,874 | 1,648,847 |
Taxes payable | 4,544,132 | 4,232,391 |
Due to a related party | 225,000 | |
Accrued liabilities and other payables | 262,447 | 77,567 |
Operating lease liability - current | 96,227 | 98,427 |
TOTAL CURRENT LIABILITIES | 10,521,486 | 13,324,105 |
Long-term bank loans | 1,506,449 | 1,672,370 |
Operating lease liability - non-current | 50,583 | 104,755 |
TOTAL LIABILITIES | 12,078,518 | 15,101,230 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary Shares (par value $0.001 per share; 44,000,000 Class A Ordinary Shares authorized as of December 31, 2020 and 2021; 11,021,834 and 18,286,923 Class A Ordinary Shares issued and outstanding as of December 31, 2020 and 2021, respectively; 6,000,000 Class B Ordinary Shares authorized, 5,763,077 Class B Ordinary Shares issued and outstanding as of December 31 2020 and 2021, respectively) * | 24,050 | 17,850 |
Subscription receivable | (15,441) | (15,441) |
Additional paid-in capital | 40,706,356 | 6,643,118 |
Statutory reserve | 1,391,770 | 1,241,573 |
Retained earnings | 10,794,621 | 10,498,183 |
Accumulated other comprehensive (loss) income | 883,140 | 942,822 |
TOTAL POP CULTURE GROUP CO., LTD SHAREHOLDERS’ EQUITY | 53,784,496 | 19,328,105 |
Non-controlling interests | ||
TOTAL SHAREHOLDERS’ EQUITY | 53,784,496 | 19,328,105 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 65,863,014 | $ 34,429,335 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2020 |
Class A Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 44,000,000 | 44,000,000 | |
Ordinary shares, issued | 18,286,923 | 11,021,834 | |
Ordinary shares, outstanding | 18,286,923 | 11,021,834 | |
Class B Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | ||
Ordinary shares, authorized | 6,000,000 | 6,000,000 | |
Ordinary shares, issued | 5,763,077 | 5,763,077 | |
Ordinary shares, outstanding | 5,763,077 | 5,763,077 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUE, NET | $ 20,148,203 | $ 13,841,202 |
Cost of revenue | 16,031,295 | 9,958,765 |
GROSS PROFIT | 4,116,908 | 3,882,437 |
Selling and marketing | 193,720 | 104,961 |
General and administrative | 2,844,154 | 675,325 |
Total operating expenses | 3,037,874 | 780,286 |
INCOME FROM OPERATIONS | 1,079,034 | 3,102,151 |
Other (expenses) income: | ||
Interest expenses, net | (194,616) | (99,126) |
Other (expenses) income, net | 74,476 | 49,704 |
Total other expenses, net | (120,140) | (49,422) |
INCOME BEFORE INCOME TAX PROVISION | 958,894 | 3,052,729 |
PROVISION FOR INCOME TAXES | 512,259 | 686,102 |
NET INCOME | 446,635 | 2,366,627 |
Less: net income attributable to non-controlling interests | 164,468 | |
NET INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | 446,635 | 2,202,159 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (59,682) | 1,223,994 |
COMPREHENSIVE INCOME | 386,953 | 3,590,621 |
Less: comprehensive income attributable to non-controlling interest | 240,471 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | $ 386,953 | $ 3,350,150 |
Net income per share | ||
Basic and diluted (in Dollars per share) | $ 0.02 | $ 0.13 |
Weighted average shares used in calculating net income per share (in Shares) | 20,950,000 | 16,784,911 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - 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, 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 | 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) | 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 loss | (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 | 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) | 1,065,089 | ||||||||
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 loss | 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 | 17,850,000 | ||||||||
Acquisition of Non-controlling interests | $ 6,200 | 34,063,238 | 34,069,438 | 34,069,438 | |||||
Acquisition of Non-controlling interests (in Shares) | 6,200,000 | ||||||||
Net income for the period | 446,635 | 446,635 | 446,635 | ||||||
Appropriation of statutory reserve | (150,197) | 150,197 | |||||||
Foreign currency translation loss | (59,682) | (59,682) | (59,682) | ||||||
Balance at Dec. 31, 2021 | $ 24,050 | $ (15,441) | $ 40,706,356 | $ 10,794,621 | $ 1,391,770 | $ 883,140 | $ 53,784,496 | $ 53,784,496 | |
Balance (in Shares) at Dec. 31, 2021 | 24,050,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net Income | $ 446,635 | $ 2,366,627 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Allowance for doubtful accounts | 1,038,762 | 147,505 |
Depreciation and amortization | 129,203 | 117,086 |
Deferred tax benefit | 39,388 | (38,797) |
Non-cash lease expense | (1,105) | 62,813 |
Loss from disposal of property and equipment | (262,545) | |
Changes in assets and liabilities: | ||
Accounts receivable | (2,093,244) | (3,285,638) |
Advance to suppliers | (4,452,160) | 1,178,486 |
Amounts due from related parties | ||
Prepaid expenses and other current assets | 2,111,735 | (1,196,329) |
Other non-current assets | (740,197) | 257,493 |
Accounts payable | (661,891) | 317,130 |
Deferred revenue | (1,254,973) | (419,123) |
Taxes payable | 311,741 | 665,261 |
Accrued liabilities and other payables | 184,880 | (32,207) |
Due to a related party | (225,000) | |
Operating lease liability | (56,372) | (63,208) |
Net cash provided by (used in) operating activities | (5,485,143) | 77,099 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (74,411) | |
Net cash (used in) provided by investing activities | (74,411) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 1,569,218 | 4,200,348 |
Repayments of short-term bank loans | (2,981,515) | (1,448,396) |
Proceeds from long-term bank loans | (351,740) | |
Contribution from shareholders | 34,069,438 | |
Payment for deferred offering costs | 82,440 | (478,953) |
Net cash provided by financing activities | 32,387,841 | 2,272,999 |
Effect of exchange rate changes | 362,729 | 190,760 |
Net increase (decrease) in cash | 27,191,016 | 2,540,858 |
Cash at beginning of year | 1,319,977 | 1,359,137 |
Cash at end of year | 28,510,993 | 3,899,995 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Income tax paid | 418,718 | 8,883 |
Interest expense paid | $ 56,771 | $ 98,163 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Xiamen Pop Culture Co., Ltd (“Pop Culture”) was incorporated in Xiamen, China 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; ● Guangzhou Shuzhi Culture Communication Co., Ltd (“Guangzhou Shuzhi,” previously named “Zhongjing Pop (Guangzhou) Culture Media Co., Ltd.”), 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. Pop Culture also holds a 60% controlling interest in Shenzhen Jam box Technology Co., Ltd. a joint venture incorporated on November 18, 2021 in Shenzhen, China, while Shenzhen HipHopJust Information Technology Co., Ltd. owns a 20% interest and a third-party investor owns a 20% interest. 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”). 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, par value $0.001 per share (“Ordinary Shares”) 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 Guangzhou Shuzhi 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 Shenzhen Jam box Technology Co., Ltd. November 18, 2020 PRC 60% 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 its VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and its VIE; ● 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 its VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and its VIE 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 As of 2021 2021 Total assets $ 30,571,944 $ 33,067,159 Total liabilities $ 11,475,417 $ 14,874,342 For the 2021 2020 Total revenue $ 13,479,761 $ 13,212,653 Net income $ 1,090,050 $ 2,548,903 Net cash used in operating activities $ (4,277,567 ) $ 282,081 Net cash (used in) provided by investing activities $ 7,006,589 $ 600,000 Net cash provided by financing activities $ (1,153,376 ) $ 2,520,680 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 | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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. Recent accounting pronouncements Recently issued ASUs by the FASB 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 | 6 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET As of December 31, 2021 and June 30, 2021, accounts receivable consisted of the following: As of As of 2021 2021 Accounts receivable - gross $ 28,194,269 $ 26,101,025 Allowance for doubtful accounts (1,627,772 ) (563,789 ) Accounts receivable, net $ 26,566,497 $ 25,537,236 The Company recorded bad debt expenses of $1,063,983 and $147,505 for six months ended December 31, 2021 and six months ended December 31, 2020, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2021 and June 30, 2021, prepaid expenses and other current assets consisted of the following: As of December 31, As of 2021 2021 Deferred costs (1) $ 143,413 $ 2,331,826 Deferred offering costs 1,207,417 1,197,177 Other receivables 37,910 51,912 1,386,740 3,580,915 Allowance for doubtful accounts (2) (2,666 ) (27,887 ) $ 1,384,074 $ 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. (2) The Company reversed the bad debt expenses of $25,221 for other receivables for six months ended December 31, 2021 and $ nil |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT As of December 31, 2021 and June 30, 2021, property and equipment consisted of the following: As of As of 2021 2021 Leasehold improvement $ 121,881 $ 120,271 Office equipment 99,968 47,018 221,849 167,289 Less: accumulated depreciation (116,781 ) (118,896 ) $ 105,068 $ 48,393 Depreciation expenses were $18,841 and $13,966 for the six months ended December 31, 2021 and the six months ended December 31, 2020, respectively. |
Intangible Asset
Intangible Asset | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSET | 6. INTANGIBLE ASSET As of December 31, 2021 and June 30, 2021, intangible asset consisted of the following: As of As of 2021 2021 Production copyright $ 2,234,441 $ 2,204,928 Less: accumulated amortization (688,953 ) (569,607 ) $ 1,545,488 $ 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 six months ended December 31, 2021 and six months ended December 31, 2020, amortization expense amounted to $110,362 and $103,120, respectively. The following is a schedule, by fiscal years, of amortization amount of intangible asset as of December 31, 2021: 2022 $ 111,722 2023 223,444 2024 223,444 2025 223,444 2026 223,444 Thereafter 539,990 Total $ 1,545,488 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 6 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | 7. ACCRUED LIABILITIES AND OTHER PAYABLES As of December 31, 2021 and June 30, 2021, accrued liabilities and other payables consisted of the following: As of As of 2021 2021 Payroll payables $ 183,727 $ 60,347 Other payables 78,720 17,220 $ 262,447 $ 77,567 |
Taxes Payable
Taxes Payable | 6 Months Ended |
Dec. 31, 2021 | |
Taxes Payable [Abstract] | |
TAXES PAYABLE | 8. TAXES PAYABLE As of December 31, 2021 and June 30, 2021, taxes payable consisted of the following: As of As of 2021 2021 Corporate income tax $ 4,039,124 $ 3,632,709 Value-added tax (“VAT”) 503,360 585,979 Related surcharges on VAT payable 1,648 13,703 $ 4,544,132 $ 4,232,391 |
Bank Loans
Bank Loans | 6 Months Ended |
Dec. 31, 2021 | |
Bank Loans [Abstract] | |
BANK LOANS | 9. BANK LOANS Bank loans represent the amounts due to various banks. As of December 31, 2021 and June 30, 2021, short-term and current portion of long-term banks consisted of the following: Summary of short-term bank loans is as follows: Annual Interest As of As of Rate Maturities 2021 2021 Short-term loans: 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 Industrial Bank Co., Ltd. (2) 4.80 % December 20, 2022 1,569,218 - Xiamen Bank (1) 5.22 % June 18, 2022 470,765 464,548 Xiamen Bank (1) 5.22 % June 22, 2022 313,844 309,698 Bank of China Ltd. (3) 4.70 % June 1, 2022 1,255,375 1,238,793 Subtotal 3,609,202 4,955,172 Current portion of long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 94,153 46,454 Bank of China Ltd. (3) 4.15 % December 29, 2023 219,691 108,394 Bank of China Ltd. (3) 5.10 % April 15, 2024 62,768 30,970 Total $ 3,985,814 $ 5,140,990 Summary of long-term bank loans is as follows: Annual Interest As of As of Rate Maturities 2021 2021 Long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 $ 376,612 $ 418,093 Bank of China Ltd. (3) 4.15 % December 29, 2023 878,762 975,549 Bank of China Ltd. (3) 5.10 % April 15, 2024 251,075 278,728 Total $ 1,506,449 $ 1,672,370 The weighted average interest rate on short-term bank loans outstanding as of June 30, 2021 and December 31, 2021 was 5.58% and 4.80%, respectively. The effective interest rate for bank loans was approximately 7.21%, and 4.75% for the years ended June 30, 2021 and December 31, 2021, 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. (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 | 6 Months Ended |
Dec. 31, 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 was short-term in nature, non-interest bearing, and payable upon demand. It was returned on November 1, 2021. The Company had no other related party transactions for the period ended December 31, 2021 except for loan guarantees for the Company provided by Mr. Zhuoqin Huang and his spouse (see Note 9). |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2021 | |
Income Tax 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, Guangzhou Shuzhi, Shenzhen Pop, Xiamen Sikai, and Shenzhen Jam Box, 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. And in 2021, the preferential tax rate is reduced by half. During the fiscal year ended June 30, 2020, Pop Network, Shanghai Pudu, and Guangzhou Shuzhi were qualified as small-scale and low-profit enterprises, and during the six months ended December 31, 2021, Pop network was qualified as small-scale and low-profit enterprises. i) The components of the income tax provision are as follows: For the 2021 2020 Current income tax provision $ 769,748 $ 724,899 Deferred income tax benefit (257,489 ) (38,797 ) Total $ 512,259 $ 686,102 The following table reconciles the statutory rate to the Company’s effective tax rate for the six months ended December 31, 2021 and 2020: For the 2021 2020 China Statutory income tax rate 25.00 % 25.00 % Permanent difference 0.20 % 1.49 % Effect of favorable tax rates on small-scale and low-profit entities 0.01 % (4.01 )% Effective tax rate 25.21 % 22.48 % The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that gives rise to deferred tax asset as of December 31, 2021 and June 30, 2021 was as follows: As of As of 2021 2021 Deferred tax assets: Net operating loss carry forwards $ - $ 107 Allowance for doubtful accounts 403,302 140,650 Total deferred tax assets 403,302 140,757 Valuation allowance - - Total deferred tax assets, net $ 403,302 $ 140,757 |
Lease
Lease | 6 Months Ended |
Dec. 31, 2021 | |
Operating Leases Of Lessee Disclosures [Abstract] | |
LEASE | 12. LEASE Supplemental balance sheet information related to the operating lease was as follows: As of As of 2021 2021 Right-of-use assets $ 155,359 $ 194,747 Operating lease liabilities - current $ 96,227 $ 98,427 Operating lease liabilities - non-current 50,583 104,755 Total operating lease liabilities $ 146,810 $ 203,182 The weighted average remaining lease terms and discount rates for the operating lease as of December 31, 2021 were as follows: Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.67 Weighted average discount rate 6.92 % During the six months ended December 31, 2021 and December 31, 2020, the Company incurred total operating lease expenses of $45,196 and $47,345, respectively. As of December 31, 2021, the future minimum rent payable under the non-cancelable operating lease for fiscal years ended December 31 were: 2022 $ 51,291 2023 102,582 Thereafter - Total lease payments 153,873 Less: imputed interest (7,063 ) Present value of lease liabilities $ 146,810 |
Ordinary Shares
Ordinary Shares | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
ORDINARY SHARES | 13. ORDINARY SHARES On January 3, 2020, 9,165,000 Ordinary Shares were held by Joya Enterprises Limited. On February 22, 2020, the Company issued 3,760,911 Ordinary Shares, 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 | 6 Months Ended |
Dec. 31, 2021 | |
Statutory Reserve [Abstract] | |
STATUTORY RESERVE | 14. STATUTORY RESERVE WFOE, Pop Culture, Shanghai Pudu, Pop Network, Guangzhou Shuzhi, Shenzhen Pop, and Xiamen 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 six months ended December 31, 2020 and 2021, the Company provided statutory reserve as follows: Balance - June 30, 2020 $ 779,094 Appropriation to statutory reserve - Balance - December 31, 2020 779,094 Appropriation to statutory reserve 462,479 Balance - June 30, 2021 1,241,573 Appropriation to statutory reserve 150,197 Balance - December 31, 2021 $ 1,391,770 |
Restricted Net Assets
Restricted Net Assets | 6 Months Ended |
Dec. 31, 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 December 31, 2021 and June 30, 2021, the balance of restricted net assets was $13,978,402 and $6,778,206, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS The Company has evaluated events subsequent to the balance sheet date of December 31, 2021 through May 17, 2022, the date on which the consolidated financial statements were issued. On March 20, 2022, Xiamen ZhongPuShuYuan Digital Technology Co., Ltd. (“ZPSY”) was established with 51% owned by Pop Network. Other investors include Fujian Zhongshi Communication Co., Ltd., Ms. Wenxiu Yu, and Mr. Bo Lan, who own 35%, 10%, and 4% equity interests, respectively. Mr. Lan serves as the general manager of ZPSY and Ms. Yu will also join ZPSY in the future. The business scope of ZPSY involves in digital content production services and advertising design. In order to promote the digital copyright content of the Company’s Chinese entertainment sector, ZPSY will focus on the development of digital collection business. On April 5, 2022, the Company appointed WWC, P.C (“WWC”). as its independent registered public accounting firm, effective on the same day. WWC replaced Friedman LLP (“Friedman”), the former independent registered public accounting firm of the Company, which the Company dismissed on April 5, 2022. The appointment of WWC and the dismissal of Friedman were made after careful consideration and evaluation process by the Company and were approved by the audit committee of the board of directors of the Company. The Company’s decision to make this change was not the result of any disagreement between the Company and Friedman on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The audit report of Friedman on the consolidated financial statements of the Company as of June 30, 2020 and 2021 and for the fiscal years ended June 30, 2020 and 2021 did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, scope of accounting principles. On April 14, 2022, Pop Culture established a wholly-owned subsidiary, Hualiu Digital Entertainment (Beijing) International Cultural Media Co., Ltd. (“HLDE”). HLDE intends to develop the entertainment segment among the three major business units. Its main business involves music, performing arts agent, advertising design, digital copyright, and metaverse. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 6 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 17. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY 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 December 31, 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. PARENT COMPANY BALANCE SHEETS As of As of 2021 2021 ASSETS Cash $ 25,256,901 $ 4,260 Prepaid expenses and other current assets 1,207,417 679,266 Due from related party 71 - TOTAL CURRENT ASSETS 26,464,389 683,526 Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries 27,390,107 18,869,579 TOTAL ASSETS 53,854,496 19,553,105 LIABILITIES AND SHAREHOLDERS’ EQUITY Other Payable $ 70,000 $ - Due to a related party - 225,000 TOTAL CURRENT LIABILITIES $ 70,000 $ 225,000 TOTAL LIABILITIES 70,000 225,000 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) * 24,050 17,850 Subscription receivable (15,441 ) (15,441 ) Additional paid-in capital 40,706,356 6,643,118 Retained earnings 12,186,391 11,739,756 Accumulated other comprehensive (loss) income 883,140 942,822 TOTAL SHAREHOLDERS’ EQUITY 53,784,496 19,328,105 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 53,714,496 $ 19,553,105 * Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME For the 2021 2020 General and administrative expenses $ 1,052,619 $ 234,000 Financial expenses (43 ) 911 Loss from operation 1,052,576 234,911 Other income: Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries 1,499,211 2,437,070 Income before income tax expense 446,635 2,202,159 Income tax expense - Net income $ 446,635 $ 2,202,159 Other Comprehensive loss Foreign currency translation (loss) income (59,682 ) 1,147,991 Total comprehensive income $ 386,953 $ 3,350,150 PARENT COMPANY 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 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 Acquisition of Non-controlling interests 6,200,000 6,200 - 34,063,238 - - 34,069,438 Net income for the period - - - - 446,635 - 446,635 Foreign currency translation adjustment - - - - - (59,682 ) (59,682 ) Balance as of December 31, 2021 24,050,000 $ 24,050 $ (15,411 ) $ 40,706,356 $ 12,186,391 $ 883,140 $ 53,784,496 * Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). PARENT COMPANY STATEMENTS OF CASH FLOWS For the 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (1,207,576 ) (204,982 ) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in a subsidiary (7,081,000 ) (600,000 ) Net cash used in investing activities (7,081,000 ) (600,000 ) CASH FLOWS FROM FINANCING ACTIVITIES: Contribution from shareholders 34,069,438 - Payment for deferred offering costs (528,221 ) (247,681 ) Net cash provided by (used in) financing activities 33,541,217 (247,681 ) Effect of exchange rate changes - Net increase (decrease) in cash 25,252,641 (1,052,663 ) Cash at beginning of period 4,260 1,139,229 Cash at end of period $ 25,256,901 86,566 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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 | 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. |
Recent accounting pronouncements | Recent accounting pronouncements Recently issued ASUs by the FASB 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) | 6 Months Ended |
Dec. 31, 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 Guangzhou Shuzhi 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 Shenzhen Jam box Technology Co., Ltd. November 18, 2020 PRC 60% owned by VIE Event planning and execution |
Schedule of financial statement amounts and balances of the VIE and its subsidiaries | As of As of 2021 2021 Total assets $ 30,571,944 $ 33,067,159 Total liabilities $ 11,475,417 $ 14,874,342 |
Schedule of income and cash flows | For the 2021 2020 Total revenue $ 13,479,761 $ 13,212,653 Net income $ 1,090,050 $ 2,548,903 Net cash used in operating activities $ (4,277,567 ) $ 282,081 Net cash (used in) provided by investing activities $ 7,006,589 $ 600,000 Net cash provided by financing activities $ (1,153,376 ) $ 2,520,680 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | As of As of 2021 2021 Accounts receivable - gross $ 28,194,269 $ 26,101,025 Allowance for doubtful accounts (1,627,772 ) (563,789 ) Accounts receivable, net $ 26,566,497 $ 25,537,236 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of prepaid expenses and other current assets | As of December 31, As of 2021 2021 Deferred costs (1) $ 143,413 $ 2,331,826 Deferred offering costs 1,207,417 1,197,177 Other receivables 37,910 51,912 1,386,740 3,580,915 Allowance for doubtful accounts (2) (2,666 ) (27,887 ) $ 1,384,074 $ 3,553,028 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of As of 2021 2021 Leasehold improvement $ 121,881 $ 120,271 Office equipment 99,968 47,018 221,849 167,289 Less: accumulated depreciation (116,781 ) (118,896 ) $ 105,068 $ 48,393 |
Intangible Asset (Tables)
Intangible Asset (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset | As of As of 2021 2021 Production copyright $ 2,234,441 $ 2,204,928 Less: accumulated amortization (688,953 ) (569,607 ) $ 1,545,488 $ 1,635,321 |
Schedule of amortization amount of intangible asset by fiscal years | 2022 $ 111,722 2023 223,444 2024 223,444 2025 223,444 2026 223,444 Thereafter 539,990 Total $ 1,545,488 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables [Abstract] | |
Schedule of accrued liabilities and other payables | As of As of 2021 2021 Payroll payables $ 183,727 $ 60,347 Other payables 78,720 17,220 $ 262,447 $ 77,567 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Taxes Payable [Abstract] | |
Schedule of taxes payable | As of As of 2021 2021 Corporate income tax $ 4,039,124 $ 3,632,709 Value-added tax (“VAT”) 503,360 585,979 Related surcharges on VAT payable 1,648 13,703 $ 4,544,132 $ 4,232,391 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Bank Loans [Abstract] | |
Schedule of short-term bank loans | Annual Interest As of As of Rate Maturities 2021 2021 Short-term loans: 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 Industrial Bank Co., Ltd. (2) 4.80 % December 20, 2022 1,569,218 - Xiamen Bank (1) 5.22 % June 18, 2022 470,765 464,548 Xiamen Bank (1) 5.22 % June 22, 2022 313,844 309,698 Bank of China Ltd. (3) 4.70 % June 1, 2022 1,255,375 1,238,793 Subtotal 3,609,202 4,955,172 Current portion of long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 94,153 46,454 Bank of China Ltd. (3) 4.15 % December 29, 2023 219,691 108,394 Bank of China Ltd. (3) 5.10 % April 15, 2024 62,768 30,970 Total $ 3,985,814 $ 5,140,990 Annual Interest As of As of Rate Maturities 2021 2021 Long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 $ 376,612 $ 418,093 Bank of China Ltd. (3) 4.15 % December 29, 2023 878,762 975,549 Bank of China Ltd. (3) 5.10 % April 15, 2024 251,075 278,728 Total $ 1,506,449 $ 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. (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) | 6 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision | For the 2021 2020 Current income tax provision $ 769,748 $ 724,899 Deferred income tax benefit (257,489 ) (38,797 ) Total $ 512,259 $ 686,102 |
Schedule of reconciles the statutory rate to the company’s effective tax rate | For the 2021 2020 China Statutory income tax rate 25.00 % 25.00 % Permanent difference 0.20 % 1.49 % Effect of favorable tax rates on small-scale and low-profit entities 0.01 % (4.01 )% Effective tax rate 25.21 % 22.48 % |
Schedule of accounting for income taxes | As of As of 2021 2021 Deferred tax assets: Net operating loss carry forwards $ - $ 107 Allowance for doubtful accounts 403,302 140,650 Total deferred tax assets 403,302 140,757 Valuation allowance - - Total deferred tax assets, net $ 403,302 $ 140,757 |
Lease (Tables)
Lease (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Lease [Abstract] | |
Schedule of supplemental balance sheet information related to operating lease | As of As of 2021 2021 Right-of-use assets $ 155,359 $ 194,747 Operating lease liabilities - current $ 96,227 $ 98,427 Operating lease liabilities - non-current 50,583 104,755 Total operating lease liabilities $ 146,810 $ 203,182 |
Schedule of future minimum rent payable under non-cancelable operating leases | Weighted average remaining lease term (years) 2.67 Weighted average discount rate 6.92 % |
Schedule of future minimum rent payable under non-cancelable operating leases | 2022 $ 51,291 2023 102,582 Thereafter - Total lease payments 153,873 Less: imputed interest (7,063 ) Present value of lease liabilities $ 146,810 |
Statutory Reserve (Tables)
Statutory Reserve (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Statutory Reserve [Abstract] | |
Schedule of statutory reserve | Balance - June 30, 2020 $ 779,094 Appropriation to statutory reserve - Balance - December 31, 2020 779,094 Appropriation to statutory reserve 462,479 Balance - June 30, 2021 1,241,573 Appropriation to statutory reserve 150,197 Balance - December 31, 2021 $ 1,391,770 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company balance sheets | As of As of 2021 2021 ASSETS Cash $ 25,256,901 $ 4,260 Prepaid expenses and other current assets 1,207,417 679,266 Due from related party 71 - TOTAL CURRENT ASSETS 26,464,389 683,526 Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries 27,390,107 18,869,579 TOTAL ASSETS 53,854,496 19,553,105 LIABILITIES AND SHAREHOLDERS’ EQUITY Other Payable $ 70,000 $ - Due to a related party - 225,000 TOTAL CURRENT LIABILITIES $ 70,000 $ 225,000 TOTAL LIABILITIES 70,000 225,000 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) * 24,050 17,850 Subscription receivable (15,441 ) (15,441 ) Additional paid-in capital 40,706,356 6,643,118 Retained earnings 12,186,391 11,739,756 Accumulated other comprehensive (loss) income 883,140 942,822 TOTAL SHAREHOLDERS’ EQUITY 53,784,496 19,328,105 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 53,714,496 $ 19,553,105 |
Schedule of parent company statements of comprehensive income | For the 2021 2020 General and administrative expenses $ 1,052,619 $ 234,000 Financial expenses (43 ) 911 Loss from operation 1,052,576 234,911 Other income: Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries 1,499,211 2,437,070 Income before income tax expense 446,635 2,202,159 Income tax expense - Net income $ 446,635 $ 2,202,159 Other Comprehensive loss Foreign currency translation (loss) income (59,682 ) 1,147,991 Total comprehensive income $ 386,953 $ 3,350,150 |
Schedule of parent company 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 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 Acquisition of Non-controlling interests 6,200,000 6,200 - 34,063,238 - - 34,069,438 Net income for the period - - - - 446,635 - 446,635 Foreign currency translation adjustment - - - - - (59,682 ) (59,682 ) Balance as of December 31, 2021 24,050,000 $ 24,050 $ (15,411 ) $ 40,706,356 $ 12,186,391 $ 883,140 $ 53,784,496 |
Schedule of parent company statements of cash flows | For the 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (1,207,576 ) (204,982 ) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in a subsidiary (7,081,000 ) (600,000 ) Net cash used in investing activities (7,081,000 ) (600,000 ) CASH FLOWS FROM FINANCING ACTIVITIES: Contribution from shareholders 34,069,438 - Payment for deferred offering costs (528,221 ) (247,681 ) Net cash provided by (used in) financing activities 33,541,217 (247,681 ) Effect of exchange rate changes - Net increase (decrease) in cash 25,252,641 (1,052,663 ) Cash at beginning of period 4,260 1,139,229 Cash at end of period $ 25,256,901 86,566 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - $ / shares | Feb. 09, 2021 | Feb. 19, 2021 | Dec. 31, 2021 | Nov. 18, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 30, 2020 |
Organization and Principal Activities (Details) [Line Items] | |||||||
Percentage of shares | 93.55% | ||||||
Owns equity interests | 100.00% | ||||||
Non-controlling interests | 6.45% | ||||||
WFOE gained | 100.00% | ||||||
Shenzhen Jam box Technology Co., Ltd. [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Interest percentage | 60.00% | ||||||
HIT [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Interest percentage | 20.00% | ||||||
Investor [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Interest percentage | 20.00% | ||||||
Class A Ordinary Shares [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Non-controlling shareholders (in Shares) | 1,065,089 | ||||||
Class B Ordinary Shares [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of consolidated financial statements | 6 Months Ended |
Dec. 31, 2021 | |
The Company [Member] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [Line Items] | |
Date of incorporation | Jan. 3, 2020 |
Place of incorporation | Cayman Islands |
Percentage of ownership | 100% |
Principal activities | Parent Holding |
Pop HK [Member] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [Line Items] | |
Date of incorporation | Jan. 20, 2020 |
Place of incorporation | Hong Kong |
Percentage of ownership | 100% |
Principal activities | Investment holding |
WFOE [Member] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [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 |
Shenzhen Jam box Technology Co., Ltd. [Member] | |
Organization and Principal Activities (Details) - Schedule of consolidated financial statements [Line Items] | |
Date of incorporation | Nov. 18, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 60% 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 ($) | Dec. 31, 2021 | Jun. 30, 2020 |
Schedule of financial statement amounts and balances of the VIE and its subsidiaries [Abstract] | ||
Total assets | $ 30,571,944 | $ 33,067,159 |
Total liabilities | $ 11,475,417 | $ 14,874,342 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of income and cash flows - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of income and cash flows [Abstract] | ||
Total revenue | $ 13,479,761 | $ 13,212,653 |
Net income | 1,090,050 | 2,548,903 |
Net cash used in operating activities | (4,277,567) | 282,081 |
Net cash (used in) provided by investing activities | 7,006,589 | 600,000 |
Net cash provided by financing activities | $ (1,153,376) | $ 2,520,680 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | ||
Bad debt expenses | $ 1,063,983 | $ 147,505 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable - gross | $ 28,194,269 | $ 26,101,025 |
Allowance for doubtful accounts | (1,627,772) | (563,789) |
Accounts receivable, net | $ 26,566,497 | $ 25,537,236 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | ||
Bad debt expenses | $ 25,221 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | |
Schedule of prepaid expenses and other current assets [Abstract] | |||
Deferred costs | [1] | $ 143,413 | $ 2,331,826 |
Deferred offering costs | 1,207,417 | 1,197,177 | |
Other receivables | 37,910 | 51,912 | |
Prepaid expenses and other current assets, gross | 1,386,740 | 3,580,915 | |
Allowance for doubtful accounts | [2] | (2,666) | (27,887) |
Prepaid expenses and other current assets | $ 1,384,074 | $ 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. | ||
[2] | The Company reversed the bad debt expenses of $25,221 for other receivables for six months ended December 31, 2021 and $nil bad debt expense recorded for other receivables for six months ended December 31, 2020. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses amounted | $ 18,841 | $ 13,966 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 221,849 | $ 167,289 |
Less: accumulated depreciation | (116,781) | (118,896) |
Property and equipment, net | 105,068 | 48,393 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 121,881 | 120,271 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 99,968 | $ 47,018 |
Intangible Asset (Details)
Intangible Asset (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Cash consideration amount | $ 2,086,819 | ||
Amortization expense | $ 110,362 | $ 103,120 |
Intangible Asset (Details) - Sc
Intangible Asset (Details) - Schedule of intangible asset - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Schedule of intangible asset [Abstract] | ||
Production copyright | $ 2,234,441 | $ 2,204,928 |
Less: accumulated amortization | (688,953) | (569,607) |
Total intangible assets | $ 1,545,488 | $ 1,635,321 |
Intangible Asset (Details) - _2
Intangible Asset (Details) - Schedule of amortization amount of intangible asset by fiscal years | Dec. 31, 2021USD ($) |
Schedule of amortization amount of intangible asset by fiscal years [Abstract] | |
2022 | $ 111,722 |
2023 | 223,444 |
2024 | 223,444 |
2025 | 223,444 |
2026 | 223,444 |
Thereafter | 539,990 |
Total | $ 1,545,488 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of accrued liabilities and other payables - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Schedule of accrued liabilities and other payables [Abstract] | ||
Payroll payables | $ 183,727 | $ 60,347 |
Other payables | 78,720 | 17,220 |
Total | $ 262,447 | $ 77,567 |
Taxes Payable (Details) - Sched
Taxes Payable (Details) - Schedule of taxes payable - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Schedule of taxes payable [Abstract] | ||
Corporate income tax | $ 4,039,124 | $ 3,632,709 |
Value-added tax (“VAT”) | 503,360 | 585,979 |
Related surcharges on VAT payable | 1,648 | 13,703 |
Total | $ 4,544,132 | $ 4,232,391 |
Bank Loans (Details)
Bank Loans (Details) | Dec. 31, 2021 | Jun. 30, 2021 | Feb. 04, 2021USD ($) | Feb. 04, 2021CNY (¥) |
Bank Loans [Abstract] | ||||
Interest rate outstanding | 4.80% | 5.58% | ||
Effective interest rate | 4.75% | 7.21% | ||
Total loan recieved | $ 1,548,491 | ¥ 10,000,000 | ||
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 | Dec. 31, 2021 | ||
Short-Term Debt [Line Items] | |||
Total | $ 1,672,370 | $ 1,506,449 | |
Total | 5,140,990 | 3,985,814 | |
Subtotal | $ 4,955,172 | $ 3,609,202 | |
Xiamen Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 5.22% | |
Maturities | [1] | Aug. 10, 2021 | |
Short-term loans | [1] | $ 309,698 | |
Industrial Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [2] | 4.80% | |
Maturities | [2] | Dec. 20, 2022 | |
Short-term loans | [2] | $ 1,569,218 | |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 3.80% | |
Maturities | [3] | Nov. 26, 2023 | |
Short-term loans | [3] | $ 46,454 | $ 94,153 |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 4.15% | |
Maturities | [3] | Dec. 29, 2023 | |
Short-term loans | [3] | $ 108,394 | $ 219,691 |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 5.10% | |
Maturities | [3] | Apr. 15, 2024 | |
Short-term loans | [3] | $ 30,970 | $ 62,768 |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 3.80% | |
Maturities | [3] | Nov. 26, 2023 | |
Short-term loans | [3] | $ 418,093 | $ 376,612 |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 4.15% | |
Maturities | [3] | Dec. 29, 2023 | |
Short-term loans | [3] | $ 975,549 | $ 878,762 |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 5.10% | |
Maturities | [3] | Apr. 15, 2024 | |
Short-term loans | [3] | $ 278,728 | $ 251,075 |
Industrial Bank Co., Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [2] | 5.00% | |
Maturities | [2] | Sep. 30, 2021 | |
Short-term loans | [2] | $ 1,548,491 | |
Xiamen International Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [4] | 8.00% | |
Maturities | [4] | Oct. 29, 2021 | |
Short-term loans | [4] | $ 1,083,944 | |
Xiamen Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [4] | 5.22% | |
Maturities | [4] | Jun. 18, 2022 | |
Short-term loans | [4] | $ 464,548 | $ 470,765 |
Xiamen Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [4] | 5.22% | |
Maturities | [4] | Jun. 22, 2022 | |
Short-term loans | [4] | $ 309,698 | $ 313,844 |
Bank of China Ltd. [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [3] | 4.70% | |
Maturities | [3] | Jun. 1, 2022 | |
Short-term loans | [3] | $ 1,238,793 | $ 1,255,375 |
[1] | This loan was jointly guaranteed by Mr. Zhuoqin Huang and his spouse, and Taiping General Insurance Co., Ltd. Xiamen Branch. | ||
[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 $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. | ||
[3] | Loans from Bank of China were guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company. | ||
[4] | Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. |
Related Party Transactions (Det
Related Party Transactions (Details) | Jun. 30, 2021USD ($) |
Chief Financial Officer [Member] | |
Related Party Transactions (Details) [Line Items] | |
Due to related party | $ 225,000 |
Income Taxes (Details)
Income Taxes (Details) | 1 Months Ended | 6 Months Ended |
Mar. 21, 2018 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax rate, description | 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%. | |
Accounting standards rate | 25.00% | |
Preferential tax rate, description | 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. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of income tax provision - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of components of income tax provision [Abstract] | ||
Current income tax provision | $ 769,748 | $ 724,899 |
Deferred income tax benefit | (257,489) | (38,797) |
Total | $ 512,259 | $ 686,102 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciles the statutory rate to the company’s effective tax rate | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of reconciles the statutory rate to the company’s effective tax rate [Abstract] | ||
China Statutory income tax rate | 25.00% | 25.00% |
Permanent difference | 0.20% | 1.49% |
Effect of favorable tax rates on small-scale and low-profit entities | 0.01% | (4.01%) |
Effective tax rate | 25.21% | 22.48% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of accounting for income taxes - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 107 | |
Allowance for doubtful accounts | 403,302 | 140,650 |
Total deferred tax assets | 403,302 | 140,757 |
Valuation allowance | ||
Total deferred tax assets, net | $ 403,302 | $ 140,757 |
Lease (Details)
Lease (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leases Of Lessee Disclosures [Abstract] | ||
Operating lease expense | $ 45,196 | $ 47,345 |
Lease (Details) - Schedule of s
Lease (Details) - Schedule of supplemental balance sheet information related to operating lease - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Schedule of supplemental balance sheet information related to operating lease [Abstract] | ||
Right-of-use assets | $ 155,359 | $ 194,747 |
Operating lease liabilities - current | 96,227 | 98,427 |
Operating lease liabilities - non-current | 50,583 | 104,755 |
Total operating lease liabilities | $ 146,810 | $ 203,182 |
Lease (Details) - Schedule of w
Lease (Details) - Schedule of weighted average remaining lease terms and discount rates for the operating lease | Dec. 31, 2021 |
Schedule of weighted average remaining lease terms and discount rates for the operating lease [Abstract] | |
Weighted average remaining lease term (years) | 2 years 8 months 1 day |
Weighted average discount rate | 6.92% |
Lease (Details) - Schedule of f
Lease (Details) - Schedule of future minimum rent payable under non-cancelable operating leases - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Schedule of future minimum rent payable under non-cancelable operating leases [Abstract] | ||
2022 | $ 51,291 | |
2023 | 102,582 | |
Thereafter | ||
Total lease payments | 153,873 | |
Less: imputed interest | (7,063) | |
Present value of lease liabilities | $ 146,810 | $ 203,182 |
Ordinary Shares (Details)
Ordinary Shares (Details) - USD ($) | Feb. 09, 2021 | May 30, 2020 | Apr. 28, 2020 | Feb. 22, 2020 | Oct. 31, 2019 | Jan. 03, 2020 |
Ordinary Shares (Details) [Line Items] | ||||||
Ordinary shares issued | 3,760,911 | |||||
Ordinary shareholders | 2,015,400 | |||||
Capital injection (in Dollars) | $ 2,557,654 | |||||
Re-designation, 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 | |||||
Class A Ordinary Shares [Member] | ||||||
Ordinary Shares (Details) [Line Items] | ||||||
Ordinary shares issued | 500,000 | |||||
Nominal cash consideration (in Dollars) | $ 500 | |||||
Aggregate share issued | 1,343,600 | |||||
Investors for cash consideration (in Dollars) | $ 1,707,893 | |||||
Insurance of new investors | 1,065,089 | |||||
Non controlling interests | 6.45% |
Statutory Reserve (Details)
Statutory Reserve (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Statutory Reserve [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 ($) | 6 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of statutory reserve [Abstract] | |||
Balance | $ 1,241,573 | $ 779,094 | $ 779,094 |
Appropriation to statutory reserve | 150,197 | 462,479 | |
Balance | $ 1,391,770 | $ 1,241,573 | $ 779,094 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Restricted Net Assets [Abstract] | ||
Restricted net assets | $ 13,978,402 | $ 6,778,206 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Mar. 20, 2022 |
Xiamen Pop Network Technology Co., Ltd. [Member] | |
Subsequent Events (Details) [Line Items] | |
Ownership interests percentage | 51.00% |
Fujian Zhongshi Communication Co., Ltd. [Member] | |
Subsequent Events (Details) [Line Items] | |
Ownership interests percentage | 35.00% |
Ms. Wenxiu Yv [Member] | |
Subsequent Events (Details) [Line Items] | |
Ownership interests percentage | 10.00% |
Mr. Bo Lan [Member] | |
Subsequent Events (Details) [Line Items] | |
Ownership interests percentage | 4.00% |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company balance sheets - Parent Company [Member] - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | |
ASSETS | |||
Cash | $ 25,256,901 | $ 4,260 | |
Prepaid expenses and other current assets | 1,207,417 | 679,266 | |
Due from related party | 71 | ||
TOTAL CURRENT ASSETS | 26,464,389 | 683,526 | |
Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries | 27,390,107 | 18,869,579 | |
TOTAL ASSETS | 53,854,496 | 19,553,105 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Other Payable | 70,000 | ||
Due to a related party | 225,000 | ||
TOTAL CURRENT LIABILITIES | 70,000 | 225,000 | |
TOTAL LIABILITIES | 70,000 | 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] | 24,050 | 17,850 |
Subscription receivable | (15,441) | (15,441) | |
Additional paid-in capital | 40,706,356 | 6,643,118 | |
Retained earnings | 12,186,391 | 11,739,756 | |
Accumulated other comprehensive (loss) income | 883,140 | 942,822 | |
TOTAL SHAREHOLDERS’ EQUITY | 53,784,496 | 19,328,105 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 53,714,496 | $ 19,553,105 | |
[1] | Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Class A ordinary shares | ||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company 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 | ||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company 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 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of comprehensive income - Parent Company [Member] - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statement of Income Captions [Line Items] | ||
General and administrative expenses | $ 1,052,619 | $ 234,000 |
Financial expenses | (43) | 911 |
Loss from operation | 1,052,576 | 234,911 |
Other income: | ||
Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries | 1,499,211 | 2,437,070 |
Income before income tax expense | 446,635 | 2,202,159 |
Income tax expense | ||
Net income | 446,635 | 2,202,159 |
Other Comprehensive loss | ||
Foreign currency translation (loss) income | (59,682) | 1,147,991 |
Total comprehensive income | $ 386,953 | $ 3,350,150 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity - Parent Company [Member] - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||
Balance | $ 19,328,105 | $ 12,919,722 | $ 7,037,565 | |
Balance | $ 53,784,496 | $ 19,328,105 | 12,919,722 | |
Issuance of additional shares | 3,672,571 | |||
Acquisition of Non-controlling interests (in Shares) | 34,069,438 | 805,084 | ||
Net income for the period | $ 446,635 | $ 4,267,542 | 2,435,821 | |
Foreign currency translation adjustment | $ (59,682) | $ 1,335,757 | $ (226,235) | |
Ordinary shares [Member] | ||||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||
Balance (in Shares) | [1] | 17,850,000 | 16,784,911 | 13,425,911 |
Balance | $ 17,850 | $ 16,785 | $ 13,426 | |
Balance (in Shares) | [1] | 24,050,000 | 17,850,000 | 16,784,911 |
Balance | $ 24,050 | $ 17,850 | $ 16,785 | |
Issuance of additional shares (in Shares) | [1] | 3,359,000 | ||
Issuance of additional shares | $ 3,359 | |||
Acquisition of Non-controlling interests | [1] | $ 6,200,000 | $ 1,065,089 | |
Acquisition of Non-controlling interests (in Shares) | 6,200 | 1,065 | ||
Net income for the period | ||||
Foreign currency translation adjustment | ||||
Subscription receivable [Member] | ||||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||
Balance | $ (15,441) | (15,441) | (13,426) | |
Balance | (15,411) | (15,441) | (15,441) | |
Issuance of additional shares | (2,015) | |||
Net income for the period | ||||
Foreign currency translation adjustment | ||||
Additional paid-in capital [Member] | ||||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||
Balance | 6,643,118 | 5,813,745 | 2,142,518 | |
Balance | $ 40,706,356 | $ 6,643,118 | 5,813,745 | |
Issuance of additional shares | 3,671,227 | |||
Acquisition of Non-controlling interests (in Shares) | 34,063,238 | 829,373 | ||
Net income for the period | ||||
Foreign currency translation adjustment | ||||
Retained earnings [Member] | ||||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||
Balance | $ 11,739,756 | 7,472,214 | 5,036,393 | |
Balance | 12,186,391 | 11,739,756 | 7,472,214 | |
Issuance of additional shares | ||||
Net income for the period | 446,635 | 4,267,542 | 2,435,821 | |
Foreign currency translation adjustment | ||||
Accumulated other comprehensive (loss) income [Member] | ||||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||
Balance | 942,822 | (367,581) | (141,346) | |
Balance | 883,140 | $ 942,822 | (367,581) | |
Issuance of additional shares | ||||
Acquisition of Non-controlling interests (in Shares) | (25,354) | |||
Net income for the period | ||||
Foreign currency translation adjustment | $ (59,682) | $ 1,335,757 | $ (226,235) | |
[1] | Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13). |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of cash flows - Parent Company [Member] - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash used in operating activities | $ (1,207,576) | $ (204,982) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in a subsidiary | (7,081,000) | (600,000) |
Net cash used in investing activities | (7,081,000) | (600,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Contribution from shareholders | 34,069,438 | |
Payment for deferred offering costs | (528,221) | (247,681) |
Net cash provided by (used in) financing activities | 33,541,217 | (247,681) |
Effect of exchange rate changes | ||
Net increase (decrease) in cash | 25,252,641 | (1,052,663) |
Cash at beginning of period | 4,260 | 1,139,229 |
Cash at end of period | $ 25,256,901 | $ 86,566 |