Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 000-54485 | |
Entity Registrant Name | IONIX TECHNOLOGY, INC. | |
Entity Central Index Key | 0001528308 | |
Entity Tax Identification Number | 45-0713638 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Rm 608, Block B, Times Square No.50 People Road | |
Entity Address, Address Line Two | Zhongshan District | |
Entity Address, City or Town | Dalian City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 116001 | |
City Area Code | +86-411 | |
Local Phone Number | 88079120 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | IINX | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 194,489,058 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 501,547 | $ 731,819 |
Notes receivable | 150,393 | 76,743 |
Accounts receivable | 5,222,226 | 4,936,974 |
Inventory | 4,681,743 | 5,454,371 |
Advances to suppliers - non-related parties | 626,976 | 782,481 |
- related parties | 432,506 | 434,200 |
Prepaid expenses and other current assets | 463,039 | 478,830 |
Total Current Assets | 12,078,430 | 12,895,418 |
Property, plant and equipment, net | 6,642,452 | 6,792,315 |
Intangible assets, net | 1,494,557 | 1,508,583 |
Long-term prepaid expenses | 452,413 | 491,015 |
Deferred tax assets | 49,910 | 50,105 |
Total Assets | 20,717,762 | 21,737,436 |
Current Liabilities: | ||
Short-term bank loan | 1,541,925 | 904,832 |
Accounts payable | 3,648,770 | 4,942,881 |
Advance from customers | 284,835 | 334,101 |
Promissory notes payable, net of debt discount and loan cost | 735,142 | 533,316 |
Due to related parties | 2,540,740 | 3,053,818 |
Accrued expenses and other current liabilities | 654,433 | 117,450 |
Total Current Liabilities | 9,405,845 | 9,886,398 |
Total Liabilities | 9,405,845 | 9,886,398 |
Stockholders’ Equity: | ||
Preferred stock, $.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding | 500 | 500 |
Common stock, $.0001 par value, 395,000,000 shares authorized 165,383,058 and 164,041,058 shares issued and outstanding as of September 30, 2021 and June 30, 2021 respectively | 16,538 | 16,404 |
Additional paid in capital | 10,837,659 | 10,786,792 |
Retained earnings (accumulated deficit) | (684,608) | (144,409) |
Accumulated other comprehensive income (loss) | 699,867 | 749,790 |
Total Stockholders' Equity attributable to the Company | 10,869,956 | 11,409,077 |
Noncontrolling interest | 441,961 | 441,961 |
Total Stockholders’ Equity | 11,311,917 | 11,851,038 |
Total Liabilities and Stockholders’ Equity | $ 20,717,762 | $ 21,737,436 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 5,000,000 | 5,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 395,000,000 | |
Common Stock, Shares, Issued | 165,383,058 | 164,041,058 |
Common Stock, Shares, Outstanding | 165,383,058 | 164,041,058 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Revenues (See Note 2 and Note 10 for related party amounts) | $ 4,550,387 | $ 2,958,465 |
Cost of Revenues (See Note 10 for related party amounts) | 4,186,636 | 2,681,389 |
Gross profit | 363,751 | 277,076 |
Operating expenses | ||
Selling, general and administrative expense | 579,546 | 308,503 |
Research and development expense | 297,774 | 146,185 |
Total operating expenses | 877,320 | 454,688 |
Income (loss) from operations | (513,569) | (177,612) |
Other income (expense): | ||
Interest expense, net of interest income | (119,857) | (174,234) |
Subsidy income | 126,230 | 13,164 |
Change in fair value of derivative liability | (60,652) | |
Gain (loss) on extinguishment of debt | (149,231) | |
Total other income (expense) | 6,373 | (370,953) |
Income (loss) before income tax expense (benefit) | (507,196) | (548,565) |
Income tax expense (benefit) | 33,003 | (16,259) |
Net income (loss) | (540,199) | (532,306) |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | (49,923) | 430,281 |
Comprehensive loss | (590,122) | (102,025) |
Less: Comprehensive income attributable to noncontrolling interest | ||
Comprehensive loss attributable to common stockholders of the Company | $ (590,122) | $ (102,025) |
Earnings (Loss) Per Share - Basic | $ 0 | $ 0 |
Weighted average number of common shares outstanding - Basic | 138,966,542 | 114,787,847 |
Earnings (Loss) Per Share - Diluted | $ 0 | $ 0 |
Weighted average number of common shares outstanding - Diluted | 137,689,139 | 114,787,847 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 500 | $ 11,417 | $ 9,243,557 | $ 262,198 | $ (357,011) | $ 441,961 | $ 9,602,622 |
Balance at beginning (in shares) at Jun. 30, 2020 | 5,000,000 | 114,174,265 | |||||
Net income (loss) | (532,306) | (532,306) | |||||
Foreign currency translation adjustment | 430,281 | 430,281 | |||||
Ending balance, value at Sep. 30, 2020 | $ 500 | $ 11,650 | 9,634,325 | (270,108) | 73,270 | 441,961 | 9,891,598 |
Balance, end (in shares) at Sep. 30, 2020 | 5,000,000 | 116,500,917 | |||||
Issuance of common stock for conversion of convertible notes | $ 233 | 390,768 | 391,001 | ||||
Issurance of common stock for conversion of convertible notes (in shares) | 2,326,652 | ||||||
Beginning balance, value at Jun. 30, 2021 | $ 500 | $ 16,404 | 10,786,792 | (144,409) | 749,790 | 441,961 | 11,851,038 |
Balance at beginning (in shares) at Jun. 30, 2021 | 5,000,000 | 164,041,058 | |||||
Issuance of common stock as commitment shares for promissory note | $ 134 | 50,867 | 51,001 | ||||
Issuance of common stock as commitment shares for promissory note (in shares) | 1,342,000 | ||||||
Net income (loss) | (540,199) | (540,199) | |||||
Foreign currency translation adjustment | (49,923) | (49,923) | |||||
Ending balance, value at Sep. 30, 2021 | $ 500 | $ 16,538 | $ 10,837,659 | $ (684,608) | $ 699,867 | $ 441,961 | $ 11,311,917 |
Balance, end (in shares) at Sep. 30, 2021 | 5,000,000 | 165,383,058 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (540,199) | $ (532,306) |
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 183,564 | 172,526 |
Deferred taxes | 0 | (24,977) |
Change in fair value of derivative liability | 0 | 60,652 |
Loss (gain) on extinguishment of debt | 0 | 149,231 |
Non-cash interest | 103,262 | 114,214 |
Changes in operating assets and liabilities: | ||
Accounts receivable - non-related parties | (291,719) | 351,842 |
Inventory | 719,785 | 136,649 |
Advances to suppliers - non-related parties | 146,048 | 106,215 |
Advances to suppliers - related parties | 0 | (40,103) |
Prepaid expenses and other current assets | 48,483 | (9,301) |
Accounts payable | (1,221,273) | (772,948) |
Advance from customers | (45,947) | 161,885 |
Accrued expenses and other current liabilities | 514,863 | (132,277) |
Net cash provided by (used in) operating activities | (383,133) | (258,698) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property, plant and equipment | (203,308) | (148,835) |
Net cash used in investing activities | (203,308) | (148,835) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Notes receivable | (2,860) | 62,706 |
Repayment of bank loans | (2,034,736) | 949,645 |
Proceeds from bank loans | 2,648,445 | (1,151,941) |
Proceeds from issuance of promissory notes | 437,500 | 0 |
Repayment of promissory notes | (279,999) | |
Repayment of convertible notes payable | 0 | (167,747) |
Proceeds from (repayment of) loans from related parties | (480,110) | 589,989 |
Net cash provided by financing activities | 288,240 | 282,652 |
Effect of exchange rate changes on cash | 67,929 | 52,837 |
Net increase (decrease) in cash and cash equivalents | (230,272) | (72,044) |
Cash and cash equivalents, beginning of period | 731,819 | 1,285,373 |
Cash and cash equivalents, end of period | 501,547 | 1,213,329 |
Supplemental disclosure of cash flow information | ||
Cash paid for income tax | 10,751 | 2,003 |
Cash paid for interests | 66,820 | 51,347 |
Non-cash investing and financing activities | ||
Issuance of 2,326,652 shares of common stock for conversion of convertible notes | 0 | 391,001 |
Issuance of 1,342,000 shares of common stock as commitment shares for promissory note | $ 51,001 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) | 3 Months Ended |
Sep. 30, 2021shares | |
Statement of Cash Flows [Abstract] | |
Issuance of shares of common stock for conversion of convertible notes | 2,326,652 |
Issuance of shares of common stock as commitment shares for promissory note | 1,342,000 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS Ionix Technology, Inc. (the “Company” or “Ionix”), formerly known as Cambridge Projects Inc., is a Nevada corporation that was formed on March 11, 2011. The Company,together with New subsidiaries On February 7, 2021, the Board of Directors of the Company approved and ratified the incorporation of Shijirun (Yixing) Technology Co., Ltd. (“Shijirun”), a limited liability company formed under the laws of the Peoples Republic of China (PRC) on February 7, 2021. Well Best International Investment Limited, a limited liability company formed under the laws of Hong Kong Special Administrative Region (“Well Best”), and a wholly owned subsidiary of the Company, is the sole shareholder of Shijirun. As a result, Shijirun is an indirect, wholly-owned subsidiary of the Company. Shijirun will head up the Company’s advance into the new energy industry focusing on developing and producing high-end intelligent new energy equipment from Yixing City, Jiangsu Province, China. On March 30, 2021, the Board of Directors of the Company approved and ratified the incorporation of Huixiang Energy Technology (Suzhou) Co., Ltd. (“Huixiang Energy”), a limited liability company formed under the laws of the Peoples Republic of China (PRC) on March 18, 2021. Well Best is the sole shareholder of Huixiang Energy. As a result, Huixiang Energy is an indirect, wholly-owned subsidiary of the Company. Huixiang Energy conducts research and development of next generation advanced battery technologies, manufacture and sales of relevant battery products, including the solid-state rechargeable lithium ion battery for next generation energy storage systems. Huixiang Energy also on the operation of battery packs, battery systems and electric vehicles sharing business with its own internet sharing platform relating to the electric vehicles (online EV hailing services) and its relevant batteries and battery systems. Huixiang Energy will operate in Suzhou City, Jiangsu Province, China. Authorized share increase On May 6, 2021, the Board of Directors of the Company and the holders of the majority of issued and outstanding voting securities of the Company approved an amendment (the “Amendment”) to the Articles of Incorporation of the Company to increase the authorized number of shares of common stock of the Company from 200,000,000 to 400,000,000 shares consisting of: (i) 395,000,000 shares of common stock, par value $0.0001 per share (“Common Stock”); and (ii) 5,000,000 shares of preferred stock par value $0.0001 per share (“Preferred Stock”) (the “Authorized Share Increase”) and related Certificate of Amendment to Articles of Incorporation of the Company. The approval was made in accordance with Sections 78.320 and 78.390 of the Nevada Revised Statues, which provide that a corporation’s articles may be amended by written consent of the stockholders of the Company representing at least a majority of the voting power of the Company Acquisition On December 27, 2018, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with Jialin Liang and Xuemei Jiang, each of whom are shareholders of Changchun Fangguan Electronics Technology Co., Ltd. (“Fangguan Electronics”or the "VIE"). Pursuant to the terms of the Purchase Agreement, the Shareholders of the VIE, who together own 95.14 15,000,000 .0001 30 4.4 million 9.7 million 1.4 million Fangguan Electronics and receive 100% of the net profits or net losses derived from the business operations of Fangguan Electronics The Transaction was accounted for as a business combination using the acquisition method of accounting. The assets, liabilities and the operations of Fangguan Electronics subsequent to the Transaction date were included in the Company’s consolidated financial statements. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2– BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Group’s audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis of consolidation The consolidated financial statements include the accounts of Ionix, its wholly owned subsidiaries and an entity which the Company controls 95.14 100 The subsidiaries of ionix are as follows: Well Best International Investment Limited (the wholly-owned subsidiary) Welly Surplus International Limited (the wholly-owned subsidiary) Shijirun (Yixing) Technology Co., Ltd (the wholly-owned subsidiary) Huixiang Energy Technology (Suzhou) Co., Ltd (the wholly-owned subsidiary) Changchun Fangguan Photoelectric Display Technology Co. Ltd (the wholly-owned subsidiary) Dalian Shizhe New Energy Technology Co., Ltd (the wholly-owned subsidiary) Shenzhen Baileqi Electronic Technology Co., Ltd (the wholly-owned subsidiary) Lisite Science Technology (Shenzhen) Co., Ltd (the wholly-owned subsidiary) Changchun Fangguan Electronics Technology Co., Ltd ( the VIE) Noncontrolling Interest The Group follows FASB ASC Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs (previously referred to as minority interests) be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to NCIs even when such allocation might result in a deficit balance. The net income (loss) attributed to NCIs was separately designated in the accompanying statements of comprehensive income (loss). Losses attributable to NCIs in a subsidiary may exceed an NCI’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. The primary beneficiary receives 100% of the income and losses of the VIE as disclosed in Note 3, therefore no income or loss is allocated to NCI. Use of Estimates The Group’s consolidated financial statements have been prepared in accordance with US GAAP and this requires management 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 consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable and advance to suppliers, the valuation of inventory, provision for staff benefit, the useful lives of property and equipment and intangible assets, the impairment of long-lived assets, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements. Cash and cash equivalents Cash consists of cash on hand and cash in bank. Cash equivalents represent investment securities that are short-term, have high credit quality and are highly liquid. Cash equivalents are carried at fair market value and consist primarily of money market funds. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 90 to 180 days from shipment. Credit is extended based on evaluation of a customer's financial condition, the customer’s credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of each period, the Group specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Group will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions may be taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2021 and June 30, 2021, the Company has accounts receivable balance from non-related party of $ 5,222,226 4,936,974 152,398 152,995 Inventories Inventories consist of raw materials, working-in-process and finished goods. Inventories are valued at the lower of cost or net realizable value. The Group does determine cost on the basis of the weighted average method. The Group periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although the Group does believe that the assumptions the Group uses to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result. Advances to suppliers Advances to suppliers represent prepayments for merchandise, which were purchased but had not been received. The balance of the advances to suppliers is reduced and reclassified to inventories when the raw materials are received and pass quality inspection. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Repairs and maintenance costs are normally expensed as incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. 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 the statement of comprehensive income (loss) in the reporting period of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: Buildings 10 20 Machinery and equipment 5 10 Office equipment 3 5 Automobiles 5 Intangible assets Land use right is recorded as cost less accumulated amortization. Land use rights represent the prepayments for the use of the parcels of land in the PRC where the Group’s production facilities are located, and are charged to expense over their respective lease periods of 50 Purchased intangible assets are recognized and measured at fair value upon acquisition. Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Amortization for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives. Alternatively, intangible assets with indefinite useful lives are carried at cost less any subsequent accumulated impairment losses. The estimated useful lives of the intangible assets are as follows: Land use right 50 Computer software 2 5 Gains or losses arising from derecognition of the intangible asset are measured at the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of comprehensive income (loss) when the asset is disposed. Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Group are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. Revenue recognition The Group adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers, and all the related amendments (new revenue standard) to all contracts using the modified retrospective method beginning on July 1, 2018. The adoption did not result in an adjustment to the retained earnings as of June 30, 2018. The comparative information was not restated and continued to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard has no impact on either reported sales to customers or net earnings. The Group estimates return based on historical results, taking into consideration the type of customers, the type of transactions and the specifics of each arrangement. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Group expects to receive in exchange for those goods or services. The Group applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. Under these criteria, for revenues from sale of products, the Group generally recognizes revenue when its products are delivered to customers in accordance with the written sales terms. The control of the products is transferred to the customer upon receipt of goods by the customer. For service revenue, the Group recognizes revenue when services are performed and accepted by customers. The following tables disaggregate the Revenue of the Group by major source for the three months ended September 30, 2021 and 2020, respectively: For the three months ended September 30, 2021 2020 Sales of LCM and LCD screens - Non-related parties $ 4,550,387 $ 2,957,025 Sales of LCM and LCD screens - Related parties 0 0 Service contracts 0 1,440 Total $ 4,550,387 $ 2,958,465 All the operating entities of the Group are domiciled in the PRC. All the Group’s revenues are derived in the PRC during the three months ended September 30, 2021 and 2020. Cost of revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues. Related parties and transactions The Group identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Group has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Corporations are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it requires their disclosure nonetheless. Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and discloses in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. As of September 30, 2021 and June 30, 2021, the Group did not have any significant unrecognized uncertain tax positions. Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a corporation during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), change in unrealized gains (losses) on marketable securities classified as available-for-sale (net of tax), foreign currency translation adjustments, and share of change in other comprehensive income of equity investments one quarter in arrears. Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on balance sheet and disclose key information about the leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The new standard is effective for us on July 1, 2019, with early adoption permitted. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Group adopted the new standard on July 1, 2019 and use the effective date as our date of initial application. Consequently, financial information is not provided for the dates and periods before July 1, 2019. The new standard provides a number of optional expedients in transition. The Group elected the package of practical expedients which permits us not to reassess under the new standard the Group's prior conclusions about lease identification, lease classification and initial direct costs. The new standard has no material effect on the consolidated financial statements of the Group as the Group does not have a lease with a term longer than 12 months as of June 30, 2021 (See Note 5). Earnings (losses) per share Basic earnings (losses) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (losses) per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of convertible debt. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share or increase a net income per share. During the three months ended September 30, 2021,the Company had outstanding convertible notes and warrants which represent 68,750 shares of commons stock respectively. These shares of common stock were excluded from the computation of diluted earnings per share since their effect would have been antidilutive. During the three months ended September 30, 2020, the Company had outstanding convertible notes and warrants which represent 1,096,705 Foreign currencies translation The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss). The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2021 June 30, 2021 Balance sheet items, except for equity accounts 6.4854 6.4601 Three months ended September 30, 2021 2020 Items in statements of comprehensive income (loss) and cash flows 6.4728 6.9448 Fair Value of Financial Instruments The carrying value of the Group’s financial instruments: cash and cash equivalents, accounts receivable, inventory, prepayments and other receivables, accounts payable, income tax payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Group also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Group has the derivative liabilities measured at fair value on a recurring basis which are valued at level 3 measurement (See Note 13). Convertible Instruments The Group evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Group accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Group records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Group accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities. Common Stock Purchase Warrants The Group classifies as equity any contracts that require physical settlement or net-share settlement or provide a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to the Company's own stock as defined in ASC 815-40 ("Contracts in Entity's Own Equity"). The Group classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). Recent accounting pronouncements The Group considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for Calendar years beginning after December 15, 2019 and for interim periods within those Calendar years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Group is currently in the process of evaluating the impact of the adoption of this guidance on its consolidated financial statements. COVID-19 The Group’s operations are affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Group’s business has been negatively impacted by the COVID-19 coronavirus outbreak to certain extent. From late January 2020 to the middle of March 2020, the Company had to temporarily suspend our manufacturing activities due to government restrictions. During the temporary business closure period, the employees of the Group had very limited access to the manufacturing facilities of the Group, and the shipping companies were not available and as a result, the Group experienced difficulty delivering the products of the Group to the customers on a timely basis. In addition, due to the COVID-19 outbreak, some of the customers or suppliers may experience financial distress, delay or default on their payments, reduce the scale of their business, or suffer disruptions in their business due to the outbreak. As of the date of this filing, the COVID-19 coronavirus outbreak in China appears to have slowed down and most provinces and cities have resumed business activities under the guidance and support of the government. However, there is still significant uncertainty regarding the possibility of a second wave of infections, and the breadth and duration of business disruptions related to COVID-19, which could continue to have material impact to the Group’s operations. Moreover, the COVID-19 resurgence which occurred in September 2021 would cause one and off traffic restrictions and lockdowns and put numerous business negotiations and sales contracts signing on hold. It would also have adverse impacts on our supply chains. Currently we keep our continuous attention on the situation of the COVID-19, assess and react actively to its impacts on our future business continuity plans or whether material resource constraints in implementing these plans. Up to the date of this report, the assessment is still in progress. |
VARIABLE INTEREST ENTITY
VARIABLE INTEREST ENTITY | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
VARIABLE INTEREST ENTITY | NOTE 3 - VARIABLE INTEREST ENTITY The VIE contractual arrangements On December 27, 2018, the Company entered into VIE agreements with two shareholders of Fangguan Electronics to control 95.14 the ownership rights and receive 100% of the net profit or net losses derived from the business operations of Fangguan Electronics. 15 The transaction was accounted for as a business combination using the acquisition method of accounting. The assets, liabilities and the operations of Fangguan Electronics subsequent to the acquisition date were included in the Group’s consolidated financial statements. Through power of attorney, equity interest purchase agreement, and equity interest pledge agreement, 95.14% of the voting rights of Fangguan Electronics’ shareholders have been transferred to the Company so that the Company has effective control over Fangguan Electronics and has the power to direct the activities of Fangguan Electronics that most significantly impacts the Group's economic performance. Through business operation agreement with the Shareholders of Fangguan Electronics, the Company shall direct the business operations of Fangguan Electronics, including, but not limited to, adopting corporate policy regarding daily operations, financial management, and employment, and appointment of directors and senior officers of Fangguan Electronics. Through the exclusive technical support service agreement with the shareholders of Fangguan Electronics, the Company together with the relevant subsidiaries, shall provide Fangguan Electronics with necessary technical support and assistance as the exclusive provider. And at the request of the Company, Fangguan Electronics shall pay the performance fee, the depreciation and the service fee to the Company. The performance fee shall be equivalent to 5% of the total revenue of Fangguan Electronicsin any Calendar year. The depreciation amount on equipment shall be determined by accounting rules of China. The Company has the right to set and revise annually this service fee unilaterally with reference to the performance of Fangguan Electronics. The service fee that the Company is entitled to earn shall be the total business incomes of the whole year minus performance fee and equipment depreciation. This agreement allows the Company to collect 100% of the net profits of Fangguan Electronics. Except for technical support, the Company and its subsidiaries did not provide, nor does it intend to provide, any financial or other support either explicitly or implicitly during the periods presented to its variable interest entity. If facts and circumstances change such that the conclusion to consolidate the Fangguan Electronics has changed, the Group shall disclose the primary factors that caused the change and the effect on the Group’s financial statements in the periods when the change occurs. There are no restrictions on the consolidated Fangguan Electronics’s assets and on the settlement of its liabilities and all carrying amounts of Fangguan Electronics’s assets and liabilities are consolidated with the the financial statements of the Company and its subsidiaries. In addition, the net income of Fangguan Electronics after it became the VIE of the Company is free of restrictions for payment of dividends to the shareholders of the Company. Assets of Fangguan Electronics that are collateralized or pledged are not restricted to settle Fangguan Electronics' own obligations. The creditors of Fangguan Electronics do not have recourse to the general credit of the Company and its subsidiaries. Risks associated with the VIE structure The Company believes that the contractual arrangements with the VIE and the Shareholders of 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: · discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and its VIE; · limit the Group’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 Group’s use of the proceeds from public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its business through its VIE may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to exert effective control over its VIE and its respective shareholders and it may lose the ability to receive economic benefits from its VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries and its VIE. There has been no change in facts and circumstances to consolidate the VIE. The following financial statement amounts and balances of its VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: Balance as of Balance as of Cash and cash equivalents $ 486,864 $ 702,979 Notes receivable 150,393 76,743 Accounts receivable - non-related parties 3,895,111 3,638,354 Inventory 4,129,367 4,899,831 Advances to suppliers - non-related parties 165,915 749,975 Prepaid expenses and other current assets 26,044 62,251 Total Current Assets 8,853,694 10,130,133 Property, plant and equipment, net 6,637,681 6,787,525 Intangible assets, net 1, 494,557 1, 508,583 Deferred tax assets 49,909 50,105 Total Assets $ 17,035,841 $ 18,476,346 Short-term bank loan $ 1,541,925 $ 904,832 Accounts payable 2,631,425 3,960,792 Advance from customers 101,562 150,110 Due to related parties 1,877,775 2,349,518 Accrued expenses and other current liabilities 77,330 49,968 Total Current Liabilities 6,230,017 7,415,220 Total Liabilities $ 6,230,017 $ 7,415,220 Schedule of condensed statement cash flow For the Three Months Ended September 30, 2020 2021 Revenue ( * $2,821,243 $4,550,387 Net (loss) income (92,134) (212,565) Net cash provided by (293,271) (220,730) Net cash used in (23,267) (221,348) Net cash provided by 292,387 167,705 (*) Revenue generated by the VIE are primarily from manufacturing and trading LCM and LCD screens. During the three months ended September 30, 2021 and 2020, the VIE did not have any material related party transactions with other subsidiaries of the Company. Under the contractual arrangements with the VIE, the Company has the power to direct activities of the VIE and can have assets transferred out of the VIE under its control. Therefore, the Company considers that there is no asset in any of the VIE that can be used only to settle obligations of the VIE, except for registered capital and PRC statutory reserves. As all VIE are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIE do not have recourse to the general credit of the Company or its subsidiaries for any of the liabilities of the VIE. Currently, there is no contractual arrangement which requires the Company or its subsidiaries to provide additional financial support to the VIE. |
NOTE 4 - INVENTORIES
NOTE 4 - INVENTORIES | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
NOTE 4 - INVENTORIES | NOTE 4 - INVENTORIES Inventories are stated at the lower of cost (determined using the weighted average cost) or net realizable value. Inventories consist of the following: Balance as of September 30, 2021 Balance as of June 30, 2021 Raw materials $ 1,273,051 $ 1,314,020 Work-in-process 2,377,376 3,367,716 Finished goods 1,031,316 772,635 Total Inventories $ 4,681,743 $ 5,454,371 The Group recorded no inventory markdown for the three months ended September 30, 2021 and 2020. |
OPERATING LEASE
OPERATING LEASE | 3 Months Ended |
Sep. 30, 2021 | |
Operating Lease | |
OPERATING LEASE | NOTE 5- OPERATING LEASE For the three months ended September 30, 2021, the Group had one real estate operating leases for office and warehouse under the terms of one year. Lisite Science Technology (Shenzhen) Co., Ltd ("Lisite Science") leases office and warehouse space from Shenzhen Keenest Technology Co., Ltd. (“Keenest”), a related party, with annual rent of approximately $ 1,500 10,000 one year until July 20, 2020 one more year until July 20, 2021 1,500 10,000 one more year until July 20, 2022 295 2,000 The Group made an accounting policy election not to recognize lease assets and liabilities for the leases listed above as all lease terms are 12 months or shorter. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET The components of property, plant and equipment were as follows: September 30, 2021 June 30, 2021 Buildings $ 5,053,544 $ 5,073,335 Machinery and equipment 3,254,892 3,216,474 Office equipment 75,815 75,374 Automobiles 172,415 173,090 Subtotal 8,556,666 8,538,273 Less: Accumulated depreciation (1,914,214 ) (1,745,958 ) Property, plant and equipment, net $ 6,642,452 $ 6,792,315 Depreciation expense related to property, plant and equipment was $ 175,408 165,210 As of September 30, 2021 and June 30, 2021, buildings were pledged as collateral for bank loans (See Note 8) . |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7– INTANGIBLE ASSETS, NET Intangible assets consist of the following: September 30, 2021 June 30, 2021 Land use right $ 1,574,594 $ 1,580,761 Computer software 29,788 29,905 Subtotal 1,604,382 1,610,666 Less: Accumulated amortization (109,825 ) (102,083 ) Intangible assets, net $ 1,494,557 $ 1,508,583 Amortization expense related to intangible assets was $ 8,156 7,316 Fangguan Electronics acquired the land use right from the local government in August 2012 which expires on August 15, 2062. As of September 30, 2021 and June 30, 2021, land use right was pledged as collateral for bank loans (See Note 8). |
SHORT-TERM BANK LOAN
SHORT-TERM BANK LOAN | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOAN | NOTE 8 – SHORT-TERM BANK LOAN The Company’s short-term bank loans consist of the following: September 30, 2021 June 30, 2021 Loan payable to Industrial Bank, due October 2021 (2) $ 346,966 $ 348,924 Loan payable to Industrial Bank, due July 2022 (3) 554,337 0 Loan payable to Industrial Bank, due July 2022 (4) 640,622 0 Loan payable to Industrial Bank, due August 2021 (1) 0 556,508 Total $ 1,541,925 $ 904,832 (1) During August 2020, Fangguan Electronics issued a one-year commercial acceptance bill with amount of approximately US$ 556,508 595,096 August 6, 2021 During September 2020, Fangguan Electronics issued a six-month commercial acceptance bill with amount of approximately US$ 464,389 3,000,000 March 9, 2021 3.80 464,389 3,000,000 553,987 3,595,096 (2) During April 2021, Fangguan Electronics issued a six-month commercial acceptance bill with amount of approximately US$ 346,966 2,250,212 October 13, 2021 3.85 346,966 2,250,212 (3) On July 28, 2021, Fangguan Electronics entered into a short-term loan agreement with Industrial Bank to borrow approximately US$ 554,337 595,096 July 27, 2022 3.85 (4) On July 28, 2021, Fangguan Electronics entered into a short-term loan agreement with Industrial Bank to borrow approximately US$640,622(RMB4,154,692) for a year until July 27, 2022 with annual interest rate of 3.85%. The borrowing was collateralized by the Fangguan Electronics’s buildings and land use right. In addition, the borrowing was guaranteed by the Company’s shareholder and CEO of Fangguan Electronics, Mr. Jialin Liang, and his wife Ms. Dongjiao Su. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Sep. 30, 2021 | |
Stockholders’ Equity: | |
STOCKHOLDERS' EQUITY | NOTE 9 - STOCKHOLDERS' EQUITY Stock Issued for Conversion of Convertible Debt During the three months ended September 30, 2020, the Company issued a total of 2,326,652 189,826 149,231 Stock Issued as Commitment Shares for Promissory Note On July 5, 2021, the Company issued a self-amortization promissory note to FIRSTFIRE GLOBAL OPPORTUNITIES FUND, LLC in the aggregate principal amount of $ 500,000 July 6, 2022 5 6,562,500 437,500 12,500 58,333.33 In connection with the issuance of promissory note, on July 8 , 2021, the Company issued 300,000 1,042,000 51,000 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | NOTE 10 - RELATED PARTY TRANSACTIONS AND BALANCES Purchase from related party During the three months ended September 30, 2021 and 2020, the Group did not purchase from any related party. Advances to suppliers - related parties Lisite Science made advances of $ 434,506 434,200 Sales to related party During the three months ended September 30, 2021 and 2020, the Group did not sell to any related party. Lease from related party Lisite Science leases office and warehouse space from Keenest, a related party, with annual rent of approximately $ 1,500 10,000 one year until July 20, 2020 1,500 10,000 one more year until July 20, 2022 295 2,000 Baileqi Electronic leases office and warehouse space from Shenzhen Baileqi S&T, a related party, with monthly rent of approximately $ 2,500 17,525 June 1, 2019 to May 31, 2020 one more year until May 31, 2021 2,500 17,525 Due to related parties Due to related parties represents the certain advances to the Group by related parties. The amounts are non-interest bearing, unsecured and due on demand. September 30, 2021 June 30, 2021 Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (2) 299,294 352,236 Xin Sui (3) 2,016 2,016 Baozhen Deng (4) 45,100 45,276 Jialin Liang (6)(11) 1,375,083 1,844,857 Xuemei Jiang (7)(10) 552,009 554,171 Shikui Zhang (8) 64,975 58,961 Biao Shang (5) 19,727 19,804 Changyong Yang (9) 38,744 32,705 $ 2,540,740 $ 3,053,818 (1) Ben Wong was the former controlling shareholder (before April 20, 2017) of Shinning Glory, which holds majority shares in the Company. (2) Yubao Liu has been the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in the Company. He also serves as director of the Company. (3) Xin Sui serves as director of Welly Surplus. (4) Baozhen Deng is a stockholder of the Company, who owns approximately 0.7 (5) Biao Shang is a stockholder of the Company and serves as director of Fangguan Photoelectric. (6) Jialin Liang is a stockholder of the Company, serves as the president, CEO, and director of Fangguan Electronics and director of the Company. (7) Xuemei Jiang is a stockholder of the Company and serves as director of both Fangguan Electronics and the Company. (8) Shikui Zhang is a stockholder of the Company and serves as the general manager of Shizhe New Energy since May 2019. (9) Changyong Yang is a stockholder of the Company,who owns approximately 1.3 (10) The liability represents the advances to Fangguan Electronics by Xuemei Jiang at the acquisition date of Fangguan Electronics (December 27, 2018). Thereafter Ms.Jiang neither made any further advance nor was refunded. (11) At the acquisition date of Fangguan Electronics (December 27, 2018), the advances to Fangguan Electronics by Jialin Liang amounted to be approximately $ 5.8 million 39,581,883 4.4 million 30,000,000 During the three months ended September 30, 2021, the refund to Mr. Liang by Fangguan Electronics was $ 469,744 3,000,000 During the three months ended September 30, 2021, setting off the further advance by Mr Liu, the net refund to Mr Liu was approximately $ 52,942 During the three months ended September 30, 2021, Baozhen Deng was refunded $ 176 6,014 6,039 During the three months ended September 30, 2020, Yubao Liu advanced $ 395,558 234,945 1,600,000 During the three months ended September 30, 2020, Baileqi Electronic refunded $ 9,906 6,300 1,200 On September 23, 2020, Jialin Liang entered into a short-term loan agreement with Bank of Communications to borrow an individual loan of approximately US$ 441,000 3 3.85% |
CONCENTRATION
CONCENTRATION | 3 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION | NOTE 11– CONCENTRATION Major customers Customers who accounted for 10% or more of the Group’s revenues (goods sold and services) and its outstanding balance of accounts receivable are presented as follows For the Three Months Ended As of September 30, 2021 Revenue Percentage of Accounts Percentage of Customer A $ 1,195,569 26 % $ 421,869 8 % Customer B 760,285 17 % 190,178 4 % Total $ 1,955,854 43 % $ 612,047 12 % For the Three Months Ended As of September 30, 2020 Revenue Percentage of Accounts Percentage of Customer A $ 633,987 21 % $ 229,358 8 % Customer B 320,329 11 % 581,857 19 % Total $ 954,316 32 % $ 811,215 27 % All customers of the Group are located in the PRC. Major suppliers The suppliers who accounted for 10% or more of the Group’s total purchases (materials and services) and its outstanding balance of accounts payable are presented as follows For the Three Months Ended As of September 30, 2021 Purchase Percentage of Accounts Percentage of Supplier A $ 744,091 20 % $ 227,226 6 % Supplier B 527,488 14 % 111,259 3 % Total $ 1,271,579 34 % $ 338,485 9 % For the Three Months Ended As of September 30, 2020 Total Purchase Percentage of Accounts Percentage of Supplier A $ 295,598 12 % $ 0 0 % Supplier B 289,746 12 % 161,945 8 % Supplier C 287,297 12 % 145,338 7 % Total $ 872,641 36 % $ 307,283 15 % All suppliers of the Group are located in the PRC. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12- INCOME TAXES The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Group operates in United States of America, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate. United States of America The Company is registered in the State of Nevada and is subject to the tax laws of United States of America and subject to the corporate tax rate of 21% on its taxable income. For the three months ended September 30, 2021 and 2020, the Company did not generate income in United States of America and no provision for income tax was made. Under normal circumstances, the Internal Revenue Service is authorized to audit income tax returns during a three-year period after the returns are filed. In unusual circumstances, the period may be longer. Tax returns for the years ended June 30, 2016 and after were still open to audit as of September 30, 2021. Hong Kong The Company’s subsidiaries, Well Best and Welly Surplus, are registered in Hong Kong and subject to income tax rate of 16.5 The PRC The Company’s subsidiaries in China are subject to a unified income tax rate of 25 15 15 The reconciliation of income tax expense (benefit) at the U.S. statutory rate of 21% to the Group's effective tax rate is as follows For the three months ended September 30, 2021 2020 Tax (benefit) at U.S. statutory rate $ (106,511 ) $ (115,199 ) Tax rate difference between foreign operations and U.S. 10,390 12,766 Change in valuation allowance 204,353 41,924 Permanent difference (75,229 ) 44,250 Effective tax (benefit) $ 33,003 $ (16,259 ) The provisions for income taxes (benefits) are summarized as follows For the three months ended September 30, 2021 2020 Current $ 33,003 $ 8,718 Deferred 0 (24,977 ) Total $ 33,003 $ (16,259 ) As of September 30, 2021, the Group has approximately $ 3,711,778 2035 On December 22, 2017, the “Tax Cuts and Jobs Act” (“The 2017 Tax Act”) was enacted in the United States. Under the provisions of the Act, the U.S. corporate tax rate decreased from 34 21 100 Additionally, the 2017 Tax Act implemented a modified territorial tax system and imposing a tax on previously untaxed accumulated earnings and profits (“E&P”) of foreign subsidiaries (the “Toll Charge”). The Toll Charge is based in part on the amount of E&P held in cash and other specific assets as of December 31, 2017. The Toll Charge can be paid over an eight-year period, starting in 2018, and will not accrue interest. The 2017 Tax Act also imposed a global intangible low-taxed income tax (“GILTI”), which is a new tax on certain off-shore earnings at an effective rate of 10.5% for tax years beginning after December 31, 2017 (increasing to 13.125% for tax years beginning after December 31, 2025) with a partial offset for foreign tax credits The Company has determined that this one-time Toll Charge has no effect on the Company’s income tax expenses as the Company has no undistributed foreign earnings at either of the two testing dates of November 2, 2017 and December 31, 2017. For purposes of the inclusion of GILTI, the Company determined that the Company did not have tax liabilities resulting from GILTI for the three months ended September 30, 2021 and 2020 due to net operating loss carryforwards available in the U.S. Therefore, there was no accrual of GILTI liability as of September 30, 2021 and June 30, 2021. The extent of the Group’s operations involves dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state and international tax audits. The Group recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE DEBT | NOTE 13 - CONVERTIBLE DEBT Convertible notes Convertible notes payable balance was zero as of September 30 and June 30, 2021. For the three months ended September 30, 2021 and 2020, the Company recorded the amortization of debt discount of $ 0 114,214 Derivative liability Upon issuing of the convertible notes, the Company determined that the conversion feature embedded in the notes referred to above that contain a potential variable conversion amount constitutes a derivative which has been bifurcated from the note and accounted for as a derivative liability, with a corresponding discount recorded to the associated debt. The excess of the derivative value over the face amount of the note, if any, is recorded immediately to interest expense at inception. The derivative liability in connection with the conversion feature of the convertible debt is the only financial liability measured at fair value on a recurring basis. The change of derivative liabilities is as follows: Balance at July 1, 2020 $ 276,266 Converted (81,315 ) Debt settlement (39,973 ) Change in fair value recognized in operations 60,652 Balance at September 30, 2020 $ 215,630 There was no any movement for the change of derivative liabilities during the three months ended September 30, 2021, and the balance of derivative liabilities was $0 at September 30, 2021 The estimated fair value of the derivative instruments was valued using the Black-Scholes option pricing model during the three months ended September 30, 2020, using the following assumptions: Estimated dividends None Expected volatility 78.55 148.59 Risk free interest rate 0.61 0.69 Expected term 0 to 6 Warrants In connection with the issuance of the $165,000 convertible promissory note on September 11, 2019, FirstFire Global Opportunities Fund, LLC is entitled, upon the terms and subject to the limitations on exercise and the conditions set forth in the agreement, at any time on or after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.40, and the warrants can be exercised within 5 years which is before September 11, 2024 On December 21, 2020, the Company issued a total of 1,500,000 67,028 In connection with the issuance of the $ 55,000 after the date of issuance hereof to purchase from the Company up to 22,916 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before November 12, 2024 In December 2020, the Company paid a total of $ 82,500 In connection with the issuance of the $ 165,000 after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before November 20, 2024 In November 2020, the Company paid a total of $175,000 to fully settle the convertible note dated November 20, 2019 with Morningview Financial LLC, including all accrued and unpaid interest and unexercised warrants. After this settlement, Morningview Financial LLC is not entitled to any warrant to purchase shares. In connection with the issuance of the $ 146,850 The estimated fair value of the warrants was valued using the Black-Scholes option pricing model at grant date, using the following assumptions: Estimated dividends None Expected volatility 56.23 71.08 Risk free interest rate 1.73 1.92 Expected term 5 Since the warrants can be exercised at $ 2.4 2.8 147,492 The details of the outstanding warrants for the three months ended September 30, 2021 and 2020 are as follows: Number of shares Weighted Average Exercise Price Remaining Contractual Term Outstanding at July 1, 2021 68,750 $ 2.80 3.53 Granted 0 0 0 Exercised or settled 0 0 0 Cancelled or expired 0 0 0 Outstanding at September 30, 2021 68,750 2.8 3.28 Number of shares Weighted Average Exercise Price Remaining Contractual Term (years) Outstanding at July 1, 229,166 $2.68 4.20 4.53 Granted 0 0 0 Exercised or settled 0 0 0 Cancelled or expired 0 0 0 Outstanding at 229,166 $2.68 3.95 4.28 |
PROMISSORY NOTE
PROMISSORY NOTE | 3 Months Ended |
Sep. 30, 2021 | |
Promissory Note | |
PROMISSORY NOTE | NOTE 14– PROMISSORY NOTE Schedule of promissory note Note Balance Debt Discount Carrying Value Labrys Fund, LP (1) $90,000 $26,166 $63,834 Labrys Fund, LP (2) 325,000 67,554 257,446 FIRSTFIRE GLOBAL (3) 500,000 86,135 413,865 Total $915,000 $179,855 $735,145 (1) On December 21, 2020, the Company issued a self-amortization promissory note to Labrys Fund, L.P in the aggregate principal amount of $ 300,000 December 21, 2021 5 7,052,239 253,500 30,000 3,000 13,500 35,000 In connection with the issuance of promissory note, on December 31, 2020, the Company issued 447,762 1,119,402 68,060 (2) On March 10, 2021, the Company issued a self-amortization promissory note to Labrys Fund, L.P in the aggregate principal amount of $ 500,000 5 6,562,500 434,000 50,000 2,500 13,500 58,333.33 at each month beginning on July 9, 2021 through March 10, 2022 In connection with the issuance of promissory note, on March 10, 2021, the Company issued 417,000 1,042,000 87,153 (3) On July 5, 2021, the Company issued a self-amortization promissory note to FIRSTFIRE GLOBAL OPPORTUNITIES FUND, LLC in the aggregate principal amount of $ 500,000 5 6,562,500 437,500 50,000 12,500 58,333.33 at each month beginning November 9, 2021 through July 6, 2022 In connection with the issuance of promissory note, on July 8 , 2021, the Company issued 300,000 1,042,000 51,000 For the three months ended September 30, 2021, the Company recorded the amortization of debt discount of $ 95,326 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 15 – SEGMENT INFORMATION The Group’s business was classified by management into three reportable business segments (smart energy, photoelectric display and service contracts) before March 31,2021 and into four segments (smart energy, photoeletric display, service contract and lithium battery-related business )after March 31,2021 supported by the administrative function which conducts activities that are non-segment specific. The smart energy reportable segment derives revenue from the sales of portable power banks that is intended to be utilized as a power source for electronic devices such as the iphone, ipad, mp3/mp4 players, PSP gaming systems, and cameras. The photoelectric display reportable segment derives revenue from the sales of LCM and LCD screens manufactured for small devices such as video capable baby monitors, electronic devices such as tablets and cell phones, and for use in televisions or computer monitors. The service contracts reportable segment derives revenue from providing IT and solution-oriented services.The lithium battery -related business reportable segment derives revenue from trading lithium battery packs and furnace used in firing for lithium battery,etc. Unallocated items comprise of mainly corporate expenses and corporate assets. Although all of the Group’s revenue is generated from PRC, the Group is organizationally structured along business segments. The accounting policies of each operating segments are same and are described in Note 2, “Summary of Significant Accounting Policies”. The following tables provide the business segment information for the three months ended September 30, 2021 and 2020. For the three months ended September 30, 2021 Lithume Smart Photoelectric Service Unallocated Total Revenues $ 0 $ 0 $ 4,550,387 $ 0 $ 0 $ 4,550,387 Cost of Revenues 0 0 4,186,636 0 0 4,186,636 Gross profit (loss) 0 0 363,751 0 0 363,751 Operating expenses 11,781 2,410 678,573 6,300 178,256 877,320 Income (loss) from operations (11,781 ) (2,410 ) (396,283 ) (6,300 ) (178,256 ) (595,030 ) Net income (loss) $ (13,921 ) $ (2,491 ) $ (225,062 ) $ (6,300 ) $ (292,425 ) $ (540,199 ) For the three months ended September 30, 2020 Smart Photoelectric Service Unallocated Total Revenues $ 0 $ 2,957,025 $ 1,440 $ 0 $ 2,958,465 Cost of Revenues 0 2,671,405 9,984 0 2,681,389 Gross profit 0 285,620 (8,544 ) 0 277,076 Operating expenses 2,685 352,277 9,625 90,101 454,688 Income (loss) from operations 2,685 (66,657 ) (18,169 ) (90,101 ) (177,612 ) Net income (loss) $ (2,684 ) $ (88,484 ) $ (18,168 ) $ (422,970 ) $ (532,306 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16- COMMITMENTS AND CONTINGENCIES Lease commitment Lisite Science leases office and warehouse space from Keenest, a related party, with annual rent of approximately $ 295 2,000 The future minimum lease payments for non-cancelable operating leases held by the Group as of September 30, 2021 was $ 295 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17- SUBSEQUENT EVENTS On October 4, 2021, the Company issued a total of 29,106,000 3,492,720 On November 13, 2021, the Company and individual subscribers agreed to a voluntary unwinding of the forementioned transaction related to the subscription and purchase of an aggregate 29,106,000 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Group’s audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of Ionix, its wholly owned subsidiaries and an entity which the Company controls 95.14 100 The subsidiaries of ionix are as follows: Well Best International Investment Limited (the wholly-owned subsidiary) Welly Surplus International Limited (the wholly-owned subsidiary) Shijirun (Yixing) Technology Co., Ltd (the wholly-owned subsidiary) Huixiang Energy Technology (Suzhou) Co., Ltd (the wholly-owned subsidiary) Changchun Fangguan Photoelectric Display Technology Co. Ltd (the wholly-owned subsidiary) Dalian Shizhe New Energy Technology Co., Ltd (the wholly-owned subsidiary) Shenzhen Baileqi Electronic Technology Co., Ltd (the wholly-owned subsidiary) Lisite Science Technology (Shenzhen) Co., Ltd (the wholly-owned subsidiary) Changchun Fangguan Electronics Technology Co., Ltd ( the VIE) |
Noncontrolling Interest | Noncontrolling Interest The Group follows FASB ASC Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs (previously referred to as minority interests) be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to NCIs even when such allocation might result in a deficit balance. The net income (loss) attributed to NCIs was separately designated in the accompanying statements of comprehensive income (loss). Losses attributable to NCIs in a subsidiary may exceed an NCI’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. The primary beneficiary receives 100% of the income and losses of the VIE as disclosed in Note 3, therefore no income or loss is allocated to NCI. |
Use of Estimates | Use of Estimates The Group’s consolidated financial statements have been prepared in accordance with US GAAP and this requires management 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 consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable and advance to suppliers, the valuation of inventory, provision for staff benefit, the useful lives of property and equipment and intangible assets, the impairment of long-lived assets, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of cash on hand and cash in bank. Cash equivalents represent investment securities that are short-term, have high credit quality and are highly liquid. Cash equivalents are carried at fair market value and consist primarily of money market funds. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 90 to 180 days from shipment. Credit is extended based on evaluation of a customer's financial condition, the customer’s credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of each period, the Group specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Group will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions may be taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2021 and June 30, 2021, the Company has accounts receivable balance from non-related party of $ 5,222,226 4,936,974 152,398 152,995 |
Inventories | Inventories Inventories consist of raw materials, working-in-process and finished goods. Inventories are valued at the lower of cost or net realizable value. The Group does determine cost on the basis of the weighted average method. The Group periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although the Group does believe that the assumptions the Group uses to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result. |
Advances to suppliers | Advances to suppliers Advances to suppliers represent prepayments for merchandise, which were purchased but had not been received. The balance of the advances to suppliers is reduced and reclassified to inventories when the raw materials are received and pass quality inspection. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Repairs and maintenance costs are normally expensed as incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. 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 the statement of comprehensive income (loss) in the reporting period of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: Buildings 10 20 Machinery and equipment 5 10 Office equipment 3 5 Automobiles 5 |
Intangible assets | Intangible assets Land use right is recorded as cost less accumulated amortization. Land use rights represent the prepayments for the use of the parcels of land in the PRC where the Group’s production facilities are located, and are charged to expense over their respective lease periods of 50 Purchased intangible assets are recognized and measured at fair value upon acquisition. Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Amortization for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives. Alternatively, intangible assets with indefinite useful lives are carried at cost less any subsequent accumulated impairment losses. The estimated useful lives of the intangible assets are as follows: Land use right 50 Computer software 2 5 Gains or losses arising from derecognition of the intangible asset are measured at the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of comprehensive income (loss) when the asset is disposed. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Group are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. |
Revenue recognition | Revenue recognition The Group adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers, and all the related amendments (new revenue standard) to all contracts using the modified retrospective method beginning on July 1, 2018. The adoption did not result in an adjustment to the retained earnings as of June 30, 2018. The comparative information was not restated and continued to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard has no impact on either reported sales to customers or net earnings. The Group estimates return based on historical results, taking into consideration the type of customers, the type of transactions and the specifics of each arrangement. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Group expects to receive in exchange for those goods or services. The Group applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. Under these criteria, for revenues from sale of products, the Group generally recognizes revenue when its products are delivered to customers in accordance with the written sales terms. The control of the products is transferred to the customer upon receipt of goods by the customer. For service revenue, the Group recognizes revenue when services are performed and accepted by customers. The following tables disaggregate the Revenue of the Group by major source for the three months ended September 30, 2021 and 2020, respectively: For the three months ended September 30, 2021 2020 Sales of LCM and LCD screens - Non-related parties $ 4,550,387 $ 2,957,025 Sales of LCM and LCD screens - Related parties 0 0 Service contracts 0 1,440 Total $ 4,550,387 $ 2,958,465 All the operating entities of the Group are domiciled in the PRC. All the Group’s revenues are derived in the PRC during the three months ended September 30, 2021 and 2020. |
Cost of revenues | Cost of revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues. |
Related parties and transactions | Related parties and transactions The Group identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Group has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Corporations are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it requires their disclosure nonetheless. |
Income taxes | Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and discloses in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. As of September 30, 2021 and June 30, 2021, the Group did not have any significant unrecognized uncertain tax positions. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a corporation during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), change in unrealized gains (losses) on marketable securities classified as available-for-sale (net of tax), foreign currency translation adjustments, and share of change in other comprehensive income of equity investments one quarter in arrears. |
Leases | Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on balance sheet and disclose key information about the leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The new standard is effective for us on July 1, 2019, with early adoption permitted. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Group adopted the new standard on July 1, 2019 and use the effective date as our date of initial application. Consequently, financial information is not provided for the dates and periods before July 1, 2019. The new standard provides a number of optional expedients in transition. The Group elected the package of practical expedients which permits us not to reassess under the new standard the Group's prior conclusions about lease identification, lease classification and initial direct costs. The new standard has no material effect on the consolidated financial statements of the Group as the Group does not have a lease with a term longer than 12 months as of June 30, 2021 (See Note 5). |
Earnings (losses) per share | Earnings (losses) per share Basic earnings (losses) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (losses) per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of convertible debt. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share or increase a net income per share. During the three months ended September 30, 2021,the Company had outstanding convertible notes and warrants which represent 68,750 shares of commons stock respectively. These shares of common stock were excluded from the computation of diluted earnings per share since their effect would have been antidilutive. During the three months ended September 30, 2020, the Company had outstanding convertible notes and warrants which represent 1,096,705 |
Foreign currencies translation | Foreign currencies translation The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss). The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2021 June 30, 2021 Balance sheet items, except for equity accounts 6.4854 6.4601 Three months ended September 30, 2021 2020 Items in statements of comprehensive income (loss) and cash flows 6.4728 6.9448 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Group’s financial instruments: cash and cash equivalents, accounts receivable, inventory, prepayments and other receivables, accounts payable, income tax payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Group also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Group has the derivative liabilities measured at fair value on a recurring basis which are valued at level 3 measurement (See Note 13). |
Convertible Instruments | Convertible Instruments The Group evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Group accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Group records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Group accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities. |
Common Stock Purchase Warrants | Common Stock Purchase Warrants The Group classifies as equity any contracts that require physical settlement or net-share settlement or provide a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to the Company's own stock as defined in ASC 815-40 ("Contracts in Entity's Own Equity"). The Group classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). |
Recent accounting pronouncements | Recent accounting pronouncements The Group considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for Calendar years beginning after December 15, 2019 and for interim periods within those Calendar years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Group is currently in the process of evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
COVID-19 | COVID-19 The Group’s operations are affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Group’s business has been negatively impacted by the COVID-19 coronavirus outbreak to certain extent. From late January 2020 to the middle of March 2020, the Company had to temporarily suspend our manufacturing activities due to government restrictions. During the temporary business closure period, the employees of the Group had very limited access to the manufacturing facilities of the Group, and the shipping companies were not available and as a result, the Group experienced difficulty delivering the products of the Group to the customers on a timely basis. In addition, due to the COVID-19 outbreak, some of the customers or suppliers may experience financial distress, delay or default on their payments, reduce the scale of their business, or suffer disruptions in their business due to the outbreak. As of the date of this filing, the COVID-19 coronavirus outbreak in China appears to have slowed down and most provinces and cities have resumed business activities under the guidance and support of the government. However, there is still significant uncertainty regarding the possibility of a second wave of infections, and the breadth and duration of business disruptions related to COVID-19, which could continue to have material impact to the Group’s operations. Moreover, the COVID-19 resurgence which occurred in September 2021 would cause one and off traffic restrictions and lockdowns and put numerous business negotiations and sales contracts signing on hold. It would also have adverse impacts on our supply chains. Currently we keep our continuous attention on the situation of the COVID-19, assess and react actively to its impacts on our future business continuity plans or whether material resource constraints in implementing these plans. Up to the date of this report, the assessment is still in progress. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: | Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: Buildings 10 20 Machinery and equipment 5 10 Office equipment 3 5 Automobiles 5 |
The estimated useful lives of the intangible assets are as follows: | Purchased intangible assets are recognized and measured at fair value upon acquisition. Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Amortization for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives. Alternatively, intangible assets with indefinite useful lives are carried at cost less any subsequent accumulated impairment losses. The estimated useful lives of the intangible assets are as follows: Land use right 50 Computer software 2 5 |
The following tables disaggregate the Revenue of the Group by major source for the three months ended September 30, 2021 and 2020, respectively: | The following tables disaggregate the Revenue of the Group by major source for the three months ended September 30, 2021 and 2020, respectively: For the three months ended September 30, 2021 2020 Sales of LCM and LCD screens - Non-related parties $ 4,550,387 $ 2,957,025 Sales of LCM and LCD screens - Related parties 0 0 Service contracts 0 1,440 Total $ 4,550,387 $ 2,958,465 |
The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: | The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2021 June 30, 2021 Balance sheet items, except for equity accounts 6.4854 6.4601 Three months ended September 30, 2021 2020 Items in statements of comprehensive income (loss) and cash flows 6.4728 6.9448 |
VARIABLE INTEREST ENTITY (Table
VARIABLE INTEREST ENTITY (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
The following financial statement amounts and balances of its VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: | The Group’s ability to conduct its business through its VIE may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to exert effective control over its VIE and its respective shareholders and it may lose the ability to receive economic benefits from its VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries and its VIE. There has been no change in facts and circumstances to consolidate the VIE. The following financial statement amounts and balances of its VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: Balance as of Balance as of Cash and cash equivalents $ 486,864 $ 702,979 Notes receivable 150,393 76,743 Accounts receivable - non-related parties 3,895,111 3,638,354 Inventory 4,129,367 4,899,831 Advances to suppliers - non-related parties 165,915 749,975 Prepaid expenses and other current assets 26,044 62,251 Total Current Assets 8,853,694 10,130,133 Property, plant and equipment, net 6,637,681 6,787,525 Intangible assets, net 1, 494,557 1, 508,583 Deferred tax assets 49,909 50,105 Total Assets $ 17,035,841 $ 18,476,346 Short-term bank loan $ 1,541,925 $ 904,832 Accounts payable 2,631,425 3,960,792 Advance from customers 101,562 150,110 Due to related parties 1,877,775 2,349,518 Accrued expenses and other current liabilities 77,330 49,968 Total Current Liabilities 6,230,017 7,415,220 Total Liabilities $ 6,230,017 $ 7,415,220 |
Schedule of condensed statement cash flow | Schedule of condensed statement cash flow For the Three Months Ended September 30, 2020 2021 Revenue ( * $2,821,243 $4,550,387 Net (loss) income (92,134) (212,565) Net cash provided by (293,271) (220,730) Net cash used in (23,267) (221,348) Net cash provided by 292,387 167,705 (*) Revenue generated by the VIE are primarily from manufacturing and trading LCM and LCD screens. |
NOTE 4 - INVENTORIES (Tables)
NOTE 4 - INVENTORIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories are stated at the lower of cost (determined using the weighted average cost) or net realizable value. Inventories consist of the following: | Inventories are stated at the lower of cost (determined using the weighted average cost) or net realizable value. Inventories consist of the following: Balance as of September 30, 2021 Balance as of June 30, 2021 Raw materials $ 1,273,051 $ 1,314,020 Work-in-process 2,377,376 3,367,716 Finished goods 1,031,316 772,635 Total Inventories $ 4,681,743 $ 5,454,371 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
The components of property, plant and equipment were as follows: | The components of property, plant and equipment were as follows: September 30, 2021 June 30, 2021 Buildings $ 5,053,544 $ 5,073,335 Machinery and equipment 3,254,892 3,216,474 Office equipment 75,815 75,374 Automobiles 172,415 173,090 Subtotal 8,556,666 8,538,273 Less: Accumulated depreciation (1,914,214 ) (1,745,958 ) Property, plant and equipment, net $ 6,642,452 $ 6,792,315 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets consist of the following: | Intangible assets consist of the following: September 30, 2021 June 30, 2021 Land use right $ 1,574,594 $ 1,580,761 Computer software 29,788 29,905 Subtotal 1,604,382 1,610,666 Less: Accumulated amortization (109,825 ) (102,083 ) Intangible assets, net $ 1,494,557 $ 1,508,583 |
SHORT-TERM BANK LOAN (Tables)
SHORT-TERM BANK LOAN (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
The Company’s short-term bank loans consist of the following: | The Company’s short-term bank loans consist of the following: September 30, 2021 June 30, 2021 Loan payable to Industrial Bank, due October 2021 (2) $ 346,966 $ 348,924 Loan payable to Industrial Bank, due July 2022 (3) 554,337 0 Loan payable to Industrial Bank, due July 2022 (4) 640,622 0 Loan payable to Industrial Bank, due August 2021 (1) 0 556,508 Total $ 1,541,925 $ 904,832 (1) During August 2020, Fangguan Electronics issued a one-year commercial acceptance bill with amount of approximately US$ 556,508 595,096 August 6, 2021 During September 2020, Fangguan Electronics issued a six-month commercial acceptance bill with amount of approximately US$ 464,389 3,000,000 March 9, 2021 3.80 464,389 3,000,000 553,987 3,595,096 (2) During April 2021, Fangguan Electronics issued a six-month commercial acceptance bill with amount of approximately US$ 346,966 2,250,212 October 13, 2021 3.85 346,966 2,250,212 (3) On July 28, 2021, Fangguan Electronics entered into a short-term loan agreement with Industrial Bank to borrow approximately US$ 554,337 595,096 July 27, 2022 3.85 (4) On July 28, 2021, Fangguan Electronics entered into a short-term loan agreement with Industrial Bank to borrow approximately US$640,622(RMB4,154,692) for a year until July 27, 2022 with annual interest rate of 3.85%. The borrowing was collateralized by the Fangguan Electronics’s buildings and land use right. In addition, the borrowing was guaranteed by the Company’s shareholder and CEO of Fangguan Electronics, Mr. Jialin Liang, and his wife Ms. Dongjiao Su. |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Due to related parties represents the certain advances to the Group by related parties. The amounts are non-interest bearing, unsecured and due on demand. | Due to related parties represents the certain advances to the Group by related parties. The amounts are non-interest bearing, unsecured and due on demand. September 30, 2021 June 30, 2021 Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (2) 299,294 352,236 Xin Sui (3) 2,016 2,016 Baozhen Deng (4) 45,100 45,276 Jialin Liang (6)(11) 1,375,083 1,844,857 Xuemei Jiang (7)(10) 552,009 554,171 Shikui Zhang (8) 64,975 58,961 Biao Shang (5) 19,727 19,804 Changyong Yang (9) 38,744 32,705 $ 2,540,740 $ 3,053,818 |
CONCENTRATION (Tables)
CONCENTRATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Customers who accounted for 10% or more of the Group’s revenues (goods sold and services) and its outstanding balance of accounts receivable are presented as follows | Customers who accounted for 10% or more of the Group’s revenues (goods sold and services) and its outstanding balance of accounts receivable are presented as follows For the Three Months Ended As of September 30, 2021 Revenue Percentage of Accounts Percentage of Customer A $ 1,195,569 26 % $ 421,869 8 % Customer B 760,285 17 % 190,178 4 % Total $ 1,955,854 43 % $ 612,047 12 % For the Three Months Ended As of September 30, 2020 Revenue Percentage of Accounts Percentage of Customer A $ 633,987 21 % $ 229,358 8 % Customer B 320,329 11 % 581,857 19 % Total $ 954,316 32 % $ 811,215 27 % |
The suppliers who accounted for 10% or more of the Group’s total purchases (materials and services) and its outstanding balance of accounts payable are presented as follows | The suppliers who accounted for 10% or more of the Group’s total purchases (materials and services) and its outstanding balance of accounts payable are presented as follows For the Three Months Ended As of September 30, 2021 Purchase Percentage of Accounts Percentage of Supplier A $ 744,091 20 % $ 227,226 6 % Supplier B 527,488 14 % 111,259 3 % Total $ 1,271,579 34 % $ 338,485 9 % For the Three Months Ended As of September 30, 2020 Total Purchase Percentage of Accounts Percentage of Supplier A $ 295,598 12 % $ 0 0 % Supplier B 289,746 12 % 161,945 8 % Supplier C 287,297 12 % 145,338 7 % Total $ 872,641 36 % $ 307,283 15 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
The reconciliation of income tax expense (benefit) at the U.S. statutory rate of 21% to the Group's effective tax rate is as follows | The reconciliation of income tax expense (benefit) at the U.S. statutory rate of 21% to the Group's effective tax rate is as follows For the three months ended September 30, 2021 2020 Tax (benefit) at U.S. statutory rate $ (106,511 ) $ (115,199 ) Tax rate difference between foreign operations and U.S. 10,390 12,766 Change in valuation allowance 204,353 41,924 Permanent difference (75,229 ) 44,250 Effective tax (benefit) $ 33,003 $ (16,259 ) |
The provisions for income taxes (benefits) are summarized as follows | The provisions for income taxes (benefits) are summarized as follows For the three months ended September 30, 2021 2020 Current $ 33,003 $ 8,718 Deferred 0 (24,977 ) Total $ 33,003 $ (16,259 ) |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
The change of derivative liabilities is as follows: | The change of derivative liabilities is as follows: Balance at July 1, 2020 $ 276,266 Converted (81,315 ) Debt settlement (39,973 ) Change in fair value recognized in operations 60,652 Balance at September 30, 2020 $ 215,630 |
The estimated fair value of the derivative instruments was valued using the Black-Scholes option pricing model during the three months ended September 30, 2020, using the following assumptions: | The estimated fair value of the derivative instruments was valued using the Black-Scholes option pricing model during the three months ended September 30, 2020, using the following assumptions: Estimated dividends None Expected volatility 78.55 148.59 Risk free interest rate 0.61 0.69 Expected term 0 to 6 |
The estimated fair value of the warrants was valued using the Black-Scholes option pricing model at grant date, using the following assumptions: | The estimated fair value of the warrants was valued using the Black-Scholes option pricing model at grant date, using the following assumptions: Estimated dividends None Expected volatility 56.23 71.08 Risk free interest rate 1.73 1.92 Expected term 5 |
The details of the outstanding warrants for the three months ended September 30, 2021 and 2020 are as follows: | The details of the outstanding warrants for the three months ended September 30, 2021 and 2020 are as follows: Number of shares Weighted Average Exercise Price Remaining Contractual Term Outstanding at July 1, 2021 68,750 $ 2.80 3.53 Granted 0 0 0 Exercised or settled 0 0 0 Cancelled or expired 0 0 0 Outstanding at September 30, 2021 68,750 2.8 3.28 Number of shares Weighted Average Exercise Price Remaining Contractual Term (years) Outstanding at July 1, 229,166 $2.68 4.20 4.53 Granted 0 0 0 Exercised or settled 0 0 0 Cancelled or expired 0 0 0 Outstanding at 229,166 $2.68 3.95 4.28 |
PROMISSORY NOTE (Tables)
PROMISSORY NOTE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Promissory Note | |
Schedule of promissory note | Schedule of promissory note Note Balance Debt Discount Carrying Value Labrys Fund, LP (1) $90,000 $26,166 $63,834 Labrys Fund, LP (2) 325,000 67,554 257,446 FIRSTFIRE GLOBAL (3) 500,000 86,135 413,865 Total $915,000 $179,855 $735,145 (1) On December 21, 2020, the Company issued a self-amortization promissory note to Labrys Fund, L.P in the aggregate principal amount of $ 300,000 December 21, 2021 5 7,052,239 253,500 30,000 3,000 13,500 35,000 In connection with the issuance of promissory note, on December 31, 2020, the Company issued 447,762 1,119,402 68,060 (2) On March 10, 2021, the Company issued a self-amortization promissory note to Labrys Fund, L.P in the aggregate principal amount of $ 500,000 5 6,562,500 434,000 50,000 2,500 13,500 58,333.33 at each month beginning on July 9, 2021 through March 10, 2022 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
The following tables provide the business segment information for the three months ended September 30, 2021 and 2020. | The following tables provide the business segment information for the three months ended September 30, 2021 and 2020. For the three months ended September 30, 2021 Lithume Smart Photoelectric Service Unallocated Total Revenues $ 0 $ 0 $ 4,550,387 $ 0 $ 0 $ 4,550,387 Cost of Revenues 0 0 4,186,636 0 0 4,186,636 Gross profit (loss) 0 0 363,751 0 0 363,751 Operating expenses 11,781 2,410 678,573 6,300 178,256 877,320 Income (loss) from operations (11,781 ) (2,410 ) (396,283 ) (6,300 ) (178,256 ) (595,030 ) Net income (loss) $ (13,921 ) $ (2,491 ) $ (225,062 ) $ (6,300 ) $ (292,425 ) $ (540,199 ) For the three months ended September 30, 2020 Smart Photoelectric Service Unallocated Total Revenues $ 0 $ 2,957,025 $ 1,440 $ 0 $ 2,958,465 Cost of Revenues 0 2,671,405 9,984 0 2,681,389 Gross profit 0 285,620 (8,544 ) 0 277,076 Operating expenses 2,685 352,277 9,625 90,101 454,688 Income (loss) from operations 2,685 (66,657 ) (18,169 ) (90,101 ) (177,612 ) Net income (loss) $ (2,684 ) $ (88,484 ) $ (18,168 ) $ (422,970 ) $ (532,306 ) |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) - USD ($) | May 06, 2021 | Dec. 27, 2017 |
V I E Agreements [Member] | Fangguan Electronics 1 [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 95.14% | |
Number of shares issue | 15,000,000 | |
Number of shares issue, par value (in dollars per share) | $ 0.0001 | |
Shareholder loan | $ 4,400,000 | |
Cash | $ 1,400,000 | |
Description of ownership right acquire | Fangguan Electronics and receive 100% of the net profits or net losses derived from the business operations of Fangguan Electronics | |
V I E Agreements [Member] | Fangguan Electronics 1 [Member] | China, Yuan Renminbi | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Shareholder loan | $ 30,000,000 | |
Cash | $ 9,700,000 | |
Board of Directors Chairman [Member] | Common Stock [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Description of majority voting | common stock of the Company from 200,000,000 to 400,000,000 shares consisting of: (i) 395,000,000 shares of common stock, par value $0.0001 per share (“Common Stock”); and (ii) 5,000,000 shares of preferred stock par value $0.0001 per share (“Preferred Stock”) (the “Authorized Share Increase”) and related Certificate of Amendment to Articles of Incorporation of the Company. The approval was made in accordance with Sections 78.320 and 78.390 of the Nevada Revised Statues, which provide that a corporation’s articles may be amended by written consent of the stockholders of the Company representing at least a majority of the voting power of the Company |
Depreciation is calculated on a
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: (Details) | 3 Months Ended |
Sep. 30, 2021 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 10 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 5 years |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of tangible assets | 5 years |
The estimated useful lives of t
The estimated useful lives of the intangible assets are as follows: (Details) | 3 Months Ended |
Sep. 30, 2021 | |
Use Rights [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 50 years |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 2 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 5 years |
The following tables disaggrega
The following tables disaggregate the Revenue of the Group by major source for the three months ended September 30, 2021 and 2020, respectively: (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | ||
Total Revenues | $ 4,550,387 | $ 2,958,465 |
Non Related Parties [Member] | ||
Product Information [Line Items] | ||
Total Revenues | 4,550,387 | 2,957,025 |
Service [Member] | ||
Product Information [Line Items] | ||
Total Revenues | $ 0 | $ 1,440 |
The exchange rates used to tran
The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: (Details) | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 |
Income And Cash Flow [Member] | |||
Exchange rate | 6.4728 | 6.9448 | |
Balance Sheet [Member] | |||
Exchange rate | 6.4854 | 6.4601 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 27, 2017 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Outstanding warrants | 68,750 | 1,096,705 | ||
Use Rights [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Estimated useful life of intangible assets | 50 years | |||
Non Related Party [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Account receivable | $ 5,222,226 | $ 4,936,974 | ||
Net of allowance for doubtful accounts | $ 152,398 | $ 152,995 | ||
V I E Agreements [Member] | Fangguan Electronics 1 [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 95.14% | |||
Percentage of recieve net income or net loss | 100.00% |
The following financial stateme
The following financial statement amounts and balances of its VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Cash and cash equivalents | $ 501,547 | $ 731,819 | $ 1,213,329 | $ 1,285,373 |
Notes receivable | 150,393 | 76,743 | ||
Inventory | 4,681,743 | 5,454,371 | ||
Advances to suppliers - non-related parties | 626,976 | 782,481 | ||
Prepaid expenses and other current assets | 463,039 | 478,830 | ||
Total Current Assets | 12,078,430 | 12,895,418 | ||
Property, plant and equipment, net | 6,642,452 | 6,792,315 | ||
Intangible assets, net | 1,494,557 | 1,508,583 | ||
Total Assets | 20,717,762 | 21,737,436 | ||
Short-term bank loan | 1,541,925 | 904,832 | ||
Accounts payable | 3,648,770 | 4,942,881 | ||
Advance from customers | 284,835 | 334,101 | ||
Due to related parties | 2,540,740 | 3,053,818 | ||
Accrued expenses and other current liabilities | 654,433 | 117,450 | ||
Total Current Liabilities | 9,405,845 | 9,886,398 | ||
Total Liabilities | 9,405,845 | 9,886,398 | ||
Consolidated Entity, Excluding Consolidated VIE [Member] | ||||
Cash and cash equivalents | 486,864 | 702,979 | ||
Notes receivable | 150,393 | 76,743 | ||
Accounts receivable - non-related parties | 3,895,111 | 3,638,354 | ||
Inventory | 4,129,367 | 4,899,831 | ||
Advances to suppliers - non-related parties | 165,915 | 749,975 | ||
Prepaid expenses and other current assets | 26,044 | 62,251 | ||
Total Current Assets | 8,853,694 | 10,130,133 | ||
Property, plant and equipment, net | 6,637,681 | 6,787,525 | ||
Intangible assets, net | 1 | 1 | ||
Deferred tax assets | 49,909 | 50,105 | ||
Total Assets | 17,035,841 | 18,476,346 | ||
Short-term bank loan | 1,541,925 | 904,832 | ||
Accounts payable | 2,631,425 | 3,960,792 | ||
Advance from customers | 101,562 | 150,110 | ||
Due to related parties | 1,877,775 | 2,349,518 | ||
Accrued expenses and other current liabilities | 77,330 | 49,968 | ||
Total Current Liabilities | 6,230,017 | 7,415,220 | ||
Total Liabilities | $ 6,230,017 | $ 7,415,220 |
Schedule of condensed statement
Schedule of condensed statement cash flow (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenue () | $ 4,550,387 | $ 2,958,465 | |
Net (loss) income | (540,199) | (532,306) | |
Net cash provided by (used in) operating activities | (383,133) | (258,698) | |
Net cash used in investing activities | (203,308) | (148,835) | |
Net cash provided by financing activities | 288,240 | 282,652 | |
Consolidated Entity, Excluding Consolidated VIE [Member] | |||
Revenue () | [1] | 4,550,387 | 2,821,243 |
Net (loss) income | (212,565) | (92,134) | |
Net cash provided by (used in) operating activities | (220,730) | (293,271) | |
Net cash used in investing activities | (221,348) | (23,267) | |
Net cash provided by financing activities | $ 167,705 | $ 292,387 | |
[1] | Revenue generated by the VIE are primarily from manufacturing and trading LCM and LCD screens. |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details Narrative) - V I E Agreements [Member] - Changchun Fangguan Electronics Technology Co Ltd 1 [Member] shares in Millions | Dec. 27, 2018shares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Percentage of voting interests acquired | 95.14% |
Description of ownership right acquire | the ownership rights and receive 100% of the net profit or net losses derived from the business operations of Fangguan Electronics. |
Number of shares issue | 15 |
Inventories are stated at the l
Inventories are stated at the lower of cost (determined using the weighted average cost) or net realizable value. Inventories consist of the following: (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,273,051 | $ 1,314,020 |
Work-in-process | 2,377,376 | 3,367,716 |
Finished goods | 1,031,316 | 772,635 |
Total Inventories | $ 4,681,743 | $ 5,454,371 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - Shenzhen Keenest Technology Co Ltd [Member] - Office And Warehouse [Member] - USD ($) | Jul. 20, 2021 | Jul. 20, 2020 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Monthly rent | $ 1,500 | $ 1,500 | |
Description of debt maturity terms | one more year until July 20, 2021 | one year until July 20, 2020 | |
Subsequent Event [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Monthly rent | $ 295 | ||
Description of debt maturity terms | one more year until July 20, 2022 | ||
China, Yuan Renminbi | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Monthly rent | $ 10,000 | $ 10,000 | |
China, Yuan Renminbi | Subsequent Event [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Monthly rent | $ 2,000 |
The components of property, pla
The components of property, plant and equipment were as follows: (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 8,556,666 | $ 8,538,273 |
Less: Accumulated depreciation | (1,914,214) | (1,745,958) |
Property, plant and equipment, net | 6,642,452 | 6,792,315 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 5,053,544 | 5,073,335 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 3,254,892 | 3,216,474 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 75,815 | 75,374 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 172,415 | $ 173,090 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 175,408 | $ 165,210 |
Intangible assets consist of th
Intangible assets consist of the following: (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 1,604,382 | $ 1,610,666 |
Less: Accumulated amortization | (109,825) | (102,083) |
Intangible assets, net | 1,494,557 | 1,508,583 |
Use Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 1,574,594 | 1,580,761 |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 29,788 | $ 29,905 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to intangible assets | $ 8,156 | $ 7,316 |
The Company_s short-term bank l
The Company’s short-term bank loans consist of the following: (Details) - USD ($) | Jul. 27, 2021 | Oct. 31, 2021 | Aug. 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Aug. 31, 2020 | Sep. 30, 2021 | Jul. 28, 2021 | Jun. 30, 2021 | Apr. 13, 2021 | Sep. 10, 2020 | Aug. 11, 2020 |
Short-term Debt [Line Items] | |||||||||||||
Total | $ 1,541,925 | $ 904,832 | |||||||||||
Fangguan Electronics [Member] | Short Term Loan Agreement [Member] | Industrial Bank [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt maturity date | Jul. 27, 2022 | ||||||||||||
Interest rate | 3.85% | ||||||||||||
Borrowed amount | $ 554,337 | ||||||||||||
Fangguan Electronics [Member] | China, Yuan Renminbi | Short Term Loan Agreement [Member] | Industrial Bank [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Borrowed amount | $ 595,096 | ||||||||||||
Notes Payable to Banks [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Total | 346,966 | 348,924 | |||||||||||
Notes Payable To Banks One [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Total | 554,337 | 0 | |||||||||||
Notes Payable To Banks Two [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Total | 640,622 | 0 | |||||||||||
Notes Payable To Banks Three [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Total | $ 0 | $ 556,508 | |||||||||||
Commercial Loan [Member] | Fangguan Electronics [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Proceeds from Issuance of Commercial Paper | $ 346,966 | $ 464,389 | $ 556,508 | ||||||||||
Debt maturity date | Oct. 13, 2021 | Mar. 9, 2021 | Aug. 6, 2021 | ||||||||||
Interest rate | 3.85% | 3.80% | 3.80% | ||||||||||
Repayments of Bank Debt | $ 346,966 | $ 553,987 | $ 464,389 | ||||||||||
Commercial Loan [Member] | Fangguan Electronics [Member] | China, Yuan Renminbi | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Proceeds from Issuance of Commercial Paper | $ 2,250,212 | $ 3,000,000 | $ 595,096 | ||||||||||
Repayments of Bank Debt | $ 2,250,212 | $ 3,595,096 | $ 3,000,000 |
SHORT-TERM BANK LOAN (Details N
SHORT-TERM BANK LOAN (Details Narrative) - Fangguan Electronics [Member] - Commercial Loan [Member] - USD ($) | 1 Months Ended | ||||||||
Oct. 31, 2021 | Aug. 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Aug. 31, 2020 | Apr. 13, 2021 | Sep. 10, 2020 | Aug. 11, 2020 | |
Short-term Debt [Line Items] | |||||||||
Proceeds from Issuance of Commercial Paper | $ 346,966 | $ 464,389 | $ 556,508 | ||||||
Debt Instrument, Maturity Date | Oct. 13, 2021 | Mar. 9, 2021 | Aug. 6, 2021 | ||||||
Interest rate | 3.85% | 3.80% | 3.80% | ||||||
Repayment of bank loan | $ 346,966 | $ 553,987 | $ 464,389 | ||||||
China, Yuan Renminbi | |||||||||
Short-term Debt [Line Items] | |||||||||
Proceeds from Issuance of Commercial Paper | $ 2,250,212 | $ 3,000,000 | $ 595,096 | ||||||
Repayment of bank loan | $ 2,250,212 | $ 3,595,096 | $ 3,000,000 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | Jul. 15, 2021 | Jul. 08, 2021 | Jul. 05, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Gain on extinguishment of debt | $ (149,231) | ||||
Convertible Debt [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of shares issued for conversion of convertible debt | 2,326,652 | ||||
Promissory Note [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Principal amount | $ 189,826 | ||||
Cas received | $ 437,500 | ||||
Other cost | $ 12,500 | ||||
Amortization expense | $ 58,333.33 | ||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Principal amount | $ 500,000 | ||||
Debt maturity date | Jul. 6, 2022 | ||||
Interest rate | 5.00% | ||||
Number of shares reserve for issuance | 6,562,500 | ||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | Common Stock First Commitment Shares [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock Issued During Period, Shares, Issued for Service | 300,000 | ||||
Debt Instrument, Unamortized Discount | $ 51,000 | ||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | Common Stock Second Commitment Shares [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock Issued During Period, Shares, Issued for Service | 1,042,000 |
Due to related parties represen
Due to related parties represents the certain advances to the Group by related parties. The amounts are non-interest bearing, unsecured and due on demand. (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 2,540,740 | $ 3,053,818 |
Ben Wong [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 143,792 | 143,792 |
Yubao Liu [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 299,294 | 352,236 |
Xin Sui [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,016 | 2,016 |
Baozhen Deng [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 45,100 | 45,276 |
Jialin Liang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 1,375,083 | 1,844,857 |
Xuemei Jiang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 552,009 | 554,171 |
Shikui Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 64,975 | 58,961 |
Biao Shang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 19,727 | 19,804 |
Changyong Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 38,744 | $ 32,705 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($) | Jul. 20, 2021 | Jul. 20, 2020 | Jun. 05, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Sep. 23, 2021 | Dec. 27, 2018 |
Related Party Transaction [Line Items] | ||||||||
Advances to related party | $ 2,540,740 | $ 3,053,818 | ||||||
Lisite Science [Member] | Office And Warehouse Spaces [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Annual rent | $ 1,500 | $ 1,500 | ||||||
Lease renewal term | one year until July 20, 2020 | |||||||
Lisite Science [Member] | Office And Warehouse Spaces [Member] | Subsequent Event [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Annual rent | $ 295 | |||||||
Lease renewal term | one more year until July 20, 2022 | |||||||
Lisite Science [Member] | Office And Warehouse Spaces [Member] | China, Yuan Renminbi | ||||||||
Related Party Transaction [Line Items] | ||||||||
Annual rent | 10,000 | $ 10,000 | ||||||
Lisite Science [Member] | Office And Warehouse Spaces [Member] | China, Yuan Renminbi | Subsequent Event [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Annual rent | $ 2,000 | |||||||
Baileqi Electronic [Member] | Office And Warehouse Spaces [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Lease renewal term | one more year until May 31, 2021 | June 1, 2019 to May 31, 2020 | ||||||
Baozhen Deng [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 0.70% | |||||||
Repayment of amount | $ 176 | $ 9,906 | ||||||
Changyong Yang [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advances from related parties | $ 6,039 | 1,200 | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.30% | |||||||
Jialin Liang [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loan from bank | $ 441,000 | |||||||
Interest rate percentage | 3.85% | |||||||
Jialin Liang [Member] | Fangguan Electronics [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to Related Parties | $ 4,400,000 | $ 5,800,000 | ||||||
Jialin Liang [Member] | China, Yuan Renminbi | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loan from bank | $ 3,000,000 | |||||||
Jialin Liang [Member] | China, Yuan Renminbi | Fangguan Electronics [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to Related Parties | 30,000,000 | $ 39,581,883 | ||||||
Linga [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repayment of amount | 469,744 | |||||||
Linga [Member] | China, Yuan Renminbi | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repayment of amount | 3,000,000 | |||||||
Liu [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repayment of amount | 52,942 | |||||||
Shikui Zhang [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advances from related parties | 6,014 | 6,300 | ||||||
Yubao Liu [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advances from related parties | 395,558 | |||||||
Advances to related party | $ 234,945 | |||||||
Yubao Liu [Member] | China, Yuan Renminbi | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advances to related party | 1,600,000 | |||||||
Keenest [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advances from related parties | 434,506 | $ 434,200 | ||||||
Baileqi Electronic [Member] | Office And Warehouse Space [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Monthly rent | $ 2,500 | 2,500 | ||||||
Baileqi Electronic [Member] | Office And Warehouse Space [Member] | China, Yuan Renminbi | ||||||||
Related Party Transaction [Line Items] | ||||||||
Monthly rent | $ 17,525 | $ 17,525 |
Customers who accounted for 10%
Customers who accounted for 10% or more of the Group’s revenues (goods sold and services) and its outstanding balance of accounts receivable are presented as follows (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | |||
Revenues | $ 4,550,387 | $ 2,958,465 | |
Accounts Recievable | 5,222,226 | $ 4,936,974 | |
Revenues, Total | 4,550,387 | 2,958,465 | |
Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 1,955,854 | $ 954,316 | |
Percentage of total accounts receivable | 43.00% | 32.00% | |
Revenues, Total | $ 1,955,854 | $ 954,316 | |
Sales [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 1,195,569 | $ 633,987 | |
Percentage of total accounts receivable | 26.00% | 21.00% | |
Revenues, Total | $ 1,195,569 | $ 633,987 | |
Sales [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 760,285 | $ 320,329 | |
Percentage of total accounts receivable | 17.00% | 11.00% | |
Revenues, Total | $ 760,285 | $ 320,329 | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts receivable | 12.00% | 27.00% | |
Accounts Recievable | $ 612,047 | $ 811,215 | |
Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts receivable | 8.00% | 8.00% | |
Accounts Recievable | $ 421,869 | $ 229,358 | |
Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts receivable | 4.00% | 19.00% | |
Accounts Recievable | $ 190,178 | $ 581,857 |
The suppliers who accounted for
The suppliers who accounted for 10% or more of the Group’s total purchases (materials and services) and its outstanding balance of accounts payable are presented as follows (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | |||
Accounts Payable | $ 3,648,770 | $ 4,942,881 | |
Purchases [Member] | |||
Concentration Risk [Line Items] | |||
Purchase | $ 1,271,579 | $ 872,641 | |
Percentage of total accounts payable | 34.00% | 36.00% | |
Purchases [Member] | Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Purchase | $ 744,091 | $ 295,598 | |
Percentage of total accounts payable | 20.00% | 12.00% | |
Purchases [Member] | Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Purchase | $ 527,488 | $ 289,746 | |
Percentage of total accounts payable | 14.00% | 12.00% | |
Purchases [Member] | Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Purchase | $ 287,297 | ||
Percentage of total accounts payable | 12.00% | ||
Accounts Payable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts payable | 9.00% | 15.00% | |
Accounts Payable | $ 338,485 | $ 307,283 | |
Accounts Payable [Member] | Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts payable | 6.00% | 0.00% | |
Accounts Payable | $ 227,226 | $ 0 | |
Accounts Payable [Member] | Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts payable | 3.00% | 8.00% | |
Accounts Payable | $ 111,259 | $ 161,945 | |
Accounts Payable [Member] | Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total accounts payable | 7.00% | ||
Accounts Payable | $ 145,338 |
The reconciliation of income ta
The reconciliation of income tax expense (benefit) at the U.S. statutory rate of 21% to the Group's effective tax rate is as follows (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax (benefit) at U.S. statutory rate | $ (106,511) | $ (115,199) |
Tax rate difference between foreign operations and U.S. | 10,390 | 12,766 |
Change in valuation allowance | 204,353 | 41,924 |
Permanent difference | (75,229) | 44,250 |
Effective tax (benefit) | $ 33,003 | $ (16,259) |
The provisions for income taxes
The provisions for income taxes (benefits) are summarized as follows (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 33,003 | $ 8,718 |
Deferred | 0 | (24,977) |
Effective tax (benefit) | $ 33,003 | $ (16,259) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% |
Description of income tax rate on foreign subsidiary | The Company’s subsidiaries in China are subject to a unified income tax rate of 25%. Fangguan Electronics was certified as high-tech enterprises for three calendar years from 2016 to 2019 and is taxed at a unified income tax rate of 15%. Fangguan Electronics has renewed the high-tech enterprise certificate which granted it the tax rate of 15% for the three whole calendar years of 2019 to 2021 |
Unified income tax rate | 15.00% |
Renewed unified income tax rate | 15.00% |
Operating Loss Carryforwards | $ 3,711,778 |
Expiration year | 2035 |
Previously corporate tax rate | 34.00% |
Corporate tax rate | 21.00% |
Valuation allowancealuation allowance tax rate | 100.00% |
Description of territorial tax | earnings at an effective rate of 10.5% for tax years beginning after December 31, 2017 (increasing to 13.125% for tax years beginning after December 31, 2025) with a partial offset for foreign tax credits |
Inland Revenue, Hong Kong [Member] | |
Operating Loss Carryforwards [Line Items] | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 16.50% |
The change of derivative liabil
The change of derivative liabilities is as follows: (Details) | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Balance at July 1, 2020 | $ 276,266 |
Converted | (81,315) |
Debt settlement | (39,973) |
Change in fair value recognized in operations | 60,652 |
Derivative Liability, Current | $ 215,630 |
The estimated fair value of the
The estimated fair value of the derivative instruments was valued using the Black-Scholes option pricing model during the three months ended September 30, 2020, using the following assumptions: (Details) | 3 Months Ended |
Sep. 30, 2020Number | |
Measurement Input Expected Volatility [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Measurement Input | 78.55 |
Measurement Input Expected Volatility [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Measurement Input | 148.59 |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Measurement Input | 0.61 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Measurement Input | 0.69 |
Measurement Input, Maturity [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
DebtInstrumentTerm | 6 months |
The estimated fair value of t_2
The estimated fair value of the warrants was valued using the Black-Scholes option pricing model at grant date, using the following assumptions: (Details) | Sep. 30, 2021Number |
Measurement Input Expected Volatility [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 56.23 |
Measurement Input Expected Volatility [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 71.08 |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 1.73 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 1.92 |
Measurement Input, Maturity [Member] | |
Debt Instrument [Line Items] | |
Warrant maturity terms | 5 years |
The details of the outstanding
The details of the outstanding warrants for the three months ended September 30, 2021 and 2020 are as follows: (Details) - $ / shares | 3 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Outstanding at ending | 68,750 | 1,096,705 | ||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding at beginning | 147,492 | |||
Outstanding at ending | 147,492 | |||
Outstanding at ending | $ 2.4 | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding at ending | $ 2.8 | |||
Warrant [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding at beginning | 68,750 | 229,166 | ||
Outstanding at beginning | $ 2.80 | $ 2.68 | ||
Outstanding at ending | 3 years 3 months 11 days | 3 years 6 months 10 days | ||
Granted | 0 | 0 | ||
Granted | $ 0 | $ 0 | ||
Exercised or settled | 0 | 0 | ||
Exercised or settled | $ 0 | $ 0 | ||
Cancelled or expired | 0 | 0 | ||
Cancelled or expired | $ 0 | $ 0 | ||
Outstanding at ending | 68,750 | 68,750 | 229,166 | 229,166 |
Outstanding at ending | $ 2.8 | $ 2.80 | $ 2.68 | $ 2.68 |
Warrant [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding at ending | 3 years 11 months 12 days | 4 years 2 months 12 days | ||
Warrant [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding at ending | 4 years 3 months 11 days | 4 years 6 months 10 days |
CONVERTIBLE DEBT (Details Narra
CONVERTIBLE DEBT (Details Narrative) - USD ($) | Dec. 21, 2020 | Nov. 20, 2019 | Nov. 12, 2019 | Sep. 11, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | Jan. 10, 2020 |
Debt Instrument [Line Items] | |||||||||
Outstanding warrants | 68,750 | 1,096,705 | |||||||
Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.4 | ||||||||
Outstanding warrants | 147,492 | ||||||||
Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.8 | ||||||||
F I R S T F I R E G L O B A L O P P O R T U N I T I E S [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 1,500,000 | ||||||||
Issuance of common stock for exercise of warrants | $ 67,028 | ||||||||
Securities Purchase Agreement [Member] | Convertible Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization of debt discount | $ 0 | $ 114,214 | |||||||
Convertible Promissory Note [Member] | Convertible Debt 8 [Member] | Firstfire Global Opportunities Fund L L C [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of conversion feature | In connection with the issuance of the $165,000 convertible promissory note on September 11, 2019, FirstFire Global Opportunities Fund, LLC is entitled, upon the terms and subject to the limitations on exercise and the conditions set forth in the agreement, at any time on or after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.40, and the warrants can be exercised within 5 years which is before September 11, 2024 | ||||||||
Convertible Promissory Note [Member] | Convertible Debt 8 [Member] | Morningview Financial L L C [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of conversion feature | after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before November 20, 2024 | ||||||||
Borrowed amount | $ 165,000 | ||||||||
Convertible Promissory Note [Member] | Convertible Debt 8 [Member] | L A B R Y S F U N D L P [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowed amount | $ 146,850 | ||||||||
Convertible Promissory Note [Member] | Convertible Debt 9 [Member] | Crown Bridge Partners L L C [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of conversion feature | after the date of issuance hereof to purchase from the Company up to 22,916 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before November 12, 2024 | ||||||||
Borrowed amount | $ 55,000 | ||||||||
Remaining principal balance amount | $ 82,500 |
Schedule of promissory note (De
Schedule of promissory note (Details) - USD ($) | Jul. 05, 2021 | Mar. 10, 2021 | Mar. 19, 2021 | Dec. 21, 2020 | Mar. 19, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Promissory Note [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Note Balance | $ 189,826 | ||||||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Debt Instrument, Fee Amount | $ 500,000 | $ 300,000 | |||||||
Debt Instrument, Maturity Date | Dec. 21, 2021 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||
Number of shares reserve for issuance | 6,562,500 | 7,052,239 | |||||||
Proceeds from Notes Payable | $ 434,000 | $ 253,500 | |||||||
OriginalIssueDiscount | 30,000 | $ 50,000 | |||||||
Legal Fees | 3,000 | 2,500 | |||||||
OtherCosts | 13,500 | 13,500 | |||||||
PromissoryNoteAmortizationSchedulePaymentAmount | $ 35,000 | $ 58,333.33 | |||||||
[custom:DescriptionOfAmortizationScheduleOfPromissoryNote] | at each month beginning on July 9, 2021 through March 10, 2022 | ||||||||
L A B R Y S F U N D L P [Member] | Promissory Note [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Note Balance | $ 500,000 | ||||||||
Debt Instrument, Maturity Date | Jul. 6, 2022 | ||||||||
Number of shares reserve for issuance | 6,562,500 | ||||||||
Promissory Note 1 [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Note Balance | $ 915,000 | ||||||||
Debt discount | 179,855 | ||||||||
Carrying Value | 735,145 | ||||||||
Promissory Note 1 [Member] | L A B R Y S F U N D L P [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Note Balance | 90,000 | ||||||||
Debt discount | 26,166 | ||||||||
Carrying Value | 63,834 | ||||||||
Promissory Note 2 [Member] | L A B R Y S F U N D L P [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Note Balance | 325,000 | ||||||||
Debt discount | 67,554 | ||||||||
Carrying Value | 257,446 | ||||||||
Promissory Note 3 [Member] | F I R S T F I R E G L O B A L O P P O R T U N I T I E S [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Note Balance | 500,000 | ||||||||
Debt discount | 86,135 | ||||||||
Carrying Value | $ 413,865 |
PROMISSORY NOTE (Details Narrat
PROMISSORY NOTE (Details Narrative) - USD ($) | Jul. 15, 2021 | Jul. 05, 2021 | Mar. 10, 2021 | Jul. 08, 2021 | Mar. 19, 2021 | Mar. 10, 2021 | Dec. 31, 2020 | Dec. 21, 2020 | Mar. 19, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||||||||||||
Value of shares issued | $ 391,001 | |||||||||||
Common Stock [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Value of shares issued | $ 233 | |||||||||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Debt Instrument, Fee Amount | $ 500,000 | $ 500,000 | $ 300,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | |||||||||
Number of shares reserve for issuance | 6,562,500 | 7,052,239 | ||||||||||
Proceeds from Notes Payable | $ 434,000 | $ 253,500 | ||||||||||
OriginalIssueDiscount | 30,000 | $ 50,000 | ||||||||||
OtherCosts | 13,500 | 13,500 | ||||||||||
PromissoryNoteAmortizationSchedulePaymentAmount | $ 35,000 | $ 58,333.33 | ||||||||||
[custom:DescriptionOfAmortizationScheduleOfPromissoryNote] | at each month beginning on July 9, 2021 through March 10, 2022 | |||||||||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | Common Stock First Commitment Shares [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Number of shares issued | 417,000 | 447,762 | ||||||||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | Common Stock Second Commitment Shares [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Number of shares issued | 1,042,000 | 1,119,402 | ||||||||||
Promissory Note [Member] | L A B R Y S F U N D L P [Member] | Common Stock [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Value of shares issued | $ 87,153 | $ 68,060 | ||||||||||
Promissory Note [Member] | F I R S T F I R E G L O B A L O P P O R T U N I T I E S [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Debt Instrument, Fee Amount | $ 500,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||
Number of shares reserve for issuance | 6,562,500 | |||||||||||
Proceeds from Notes Payable | $ 437,500 | |||||||||||
OriginalIssueDiscount | 50,000 | |||||||||||
OtherCosts | 12,500 | |||||||||||
PromissoryNoteAmortizationSchedulePaymentAmount | $ 58,333.33 | |||||||||||
[custom:DescriptionOfAmortizationScheduleOfPromissoryNote] | at each month beginning November 9, 2021 through July 6, 2022 | |||||||||||
Amortization of debt discount | $ 95,326 | |||||||||||
Promissory Note [Member] | F I R S T F I R E G L O B A L O P P O R T U N I T I E S [Member] | Common Stock First Commitment Shares [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Number of shares issued | 300,000 | |||||||||||
Promissory Note [Member] | F I R S T F I R E G L O B A L O P P O R T U N I T I E S [Member] | Common Stock Second Commitment Shares [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Number of shares issued | 1,042,000 | |||||||||||
Promissory Note [Member] | F I R S T F I R E G L O B A L O P P O R T U N I T I E S [Member] | Common Stock [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Value of shares issued | $ 51,000 |
The following tables provide th
The following tables provide the business segment information for the three months ended September 30, 2021 and 2020. (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 4,550,387 | $ 2,958,465 |
Cost of Revenues | 4,186,636 | 2,681,389 |
Gross profit | 363,751 | 277,076 |
Operating expenses | 877,320 | 454,688 |
Income (loss) from operations | (595,030) | (177,612) |
Net income (loss) | (540,199) | (532,306) |
Lithume Battery Related [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | |
Cost of Revenues | 0 | |
Gross profit | 0 | |
Operating expenses | 11,781 | |
Income (loss) from operations | (11,781) | |
Net income (loss) | (13,921) | |
Smart Energy [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Cost of Revenues | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses | 2,410 | 2,685 |
Income (loss) from operations | (2,410) | 2,685 |
Net income (loss) | (2,491) | (2,684) |
Photoelectric Display [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,550,387 | 2,957,025 |
Cost of Revenues | 4,186,636 | 2,671,405 |
Gross profit | 363,751 | 285,620 |
Operating expenses | 678,573 | 352,277 |
Income (loss) from operations | (396,283) | (66,657) |
Net income (loss) | (225,062) | (88,484) |
Service Contracts [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 1,440 |
Cost of Revenues | 0 | 9,984 |
Gross profit | 0 | (8,544) |
Operating expenses | 6,300 | 9,625 |
Income (loss) from operations | (6,300) | (18,169) |
Net income (loss) | (6,300) | (18,168) |
Unallocated Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Cost of Revenues | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses | 178,256 | 90,101 |
Income (loss) from operations | (178,256) | (90,101) |
Net income (loss) | $ (292,425) | $ (422,970) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Operating Leases, Rent Expense, Net | $ 295 |
Operating Leases, Future Minimum Payments Due | 295 |
China, Yuan Renminbi | |
Operating Leases, Rent Expense, Net | $ 2,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($) | Nov. 13, 2021 | Oct. 04, 2021 |
Subsequent Event [Line Items] | ||
Restricted shares | 29,106,000 | 29,106,000 |
Purchase price | $ 3,492,720 |