Cover
Cover | 12 Months Ended |
Jun. 30, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --06-30 |
Entity File Number | 001-38304 |
Entity Registrant Name | Dogness (International) Corporation |
Entity Central Index Key | 0001707303 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | Tongsha Industrial Estate |
Entity Address, Address Line Two | East District |
Entity Address, City or Town | Dongguan |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 523217 |
Title of 12(b) Security | Common Shares, $0.002 par value per share |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Common Class A [Member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 20,555,814 |
Common Class B [Member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 9,069,000 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Tongsha Industrial Estate |
Entity Address, City or Town | Dongguan |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 523217 |
City Area Code | +1 |
Local Phone Number | 214 463 6268 |
Contact Personnel Name | Dr. Yunhao Chen |
Contact Personnel Email Address | yunhaochen@dogness.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
CURRENT ASSETS | ||
Cash | $ 4,912,442 | $ 1,266,873 |
Restricted cash | 23,312 | |
Short-term investments | 549,895 | 3,551,968 |
Accounts receivable from third-party customers, net | 2,367,326 | 1,916,840 |
Accounts receivable – related parties | 515,193 | 559,465 |
Inventories, net | 4,203,163 | 2,860,700 |
Due from related parties | 32,528 | |
Prepayments and other current assets | 1,662,272 | 1,471,612 |
Total current assets | 14,266,131 | 11,627,458 |
Property, plant and equipment, net | 69,876,039 | 43,533,512 |
Right-of-use lease assets | 5,170,395 | 5,123,898 |
Intangible assets, net | 2,223,285 | 2,104,803 |
Long-term investments in equity investees | 1,703,900 | 1,046,360 |
Deferred tax assets | 605,658 | 115,230 |
TOTAL ASSETS | 93,845,408 | 63,551,261 |
CURRENT LIABILITIES | ||
Short-term bank loans | 704,446 | 5,142,000 |
Current portion of long-term loan | 796,416 | |
Accounts payable | 847,151 | 705,223 |
Accounts payable – related parties | 350,199 | 305,215 |
Due to a related party | 2,001,940 | 25,462 |
Advance from customers | 209,508 | 152,299 |
Taxes payable | 4,443,192 | 2,814,411 |
Accrued liabilities and other payable | 11,737,680 | 1,452,408 |
Operating lease liabilities, current | 171,803 | 172,716 |
Total current liabilities | 21,262,335 | 10,769,734 |
Long term bank loan | 6,557,608 | 73,300 |
Operating lease liabilities, non-current | 1,123,060 | 1,200,299 |
TOTAL LIABILITIES | 28,943,003 | 12,043,333 |
Commitments | ||
EQUITY | ||
Additional paid-in capital | 60,355,278 | 53,221,610 |
Statutory reserve | 291,443 | 191,716 |
Retained earnings | 4,628,708 | 3,216,071 |
Accumulated other comprehensive loss | (960,285) | (5,787,965) |
Total Dogness (International) Corporation stockholders’ equity | 64,374,393 | 50,893,259 |
Noncontrolling interest | 528,012 | 614,669 |
Total equity | 64,902,405 | 51,507,928 |
TOTAL LIABILITIES AND EQUITY | 93,845,408 | 63,551,261 |
Common Class A [Member] | ||
EQUITY | ||
Common stock | 41,111 | 33,689 |
Common Class B [Member] | ||
EQUITY | ||
Common stock | $ 18,138 | $ 18,138 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par or stated value per share | $ 0.002 | $ 0.002 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 29,624,814 | 25,913,631 |
Common stock, shares outstanding | 29,624,814 | 25,913,631 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | |||
Revenues- third party customers | $ 23,112,435 | $ 18,261,707 | $ 25,887,948 |
Revenues – related parties | 1,207,686 | 909,651 | 328,567 |
Total Revenues | 24,320,121 | 19,171,358 | 26,216,515 |
Cost of revenues – third party customers | (14,501,166) | (16,146,856) | (16,583,904) |
Cost of revenues – related parties | (663,742) | (633,132) | (202,606) |
Total cost of revenues | (15,164,908) | (16,779,988) | (16,786,510) |
Gross Profit | 9,155,213 | 2,391,370 | 9,430,005 |
Operating expenses: | |||
Selling expenses | 1,815,771 | 2,336,229 | 2,101,403 |
General and administrative expenses | 4,941,036 | 5,746,812 | 6,015,901 |
Research and development expenses | 540,613 | 1,528,062 | 673,131 |
Loss from disposal of fixed assets | 1,036,304 | ||
Impairment of fixed assets | 281,680 | ||
Impairment loss of investment in equity investees | 177,750 | ||
Total operating expenses | 7,297,420 | 11,106,837 | 8,790,435 |
Income (loss) from operations | 1,857,793 | (8,715,467) | 639,570 |
Other income (expenses): | |||
Interest income (expense), net | (264,408) | 15,560 | 616,878 |
Foreign exchange transaction gain (loss) | (228,260) | 214,171 | 503,528 |
Other income (expenses), net | 215,233 | 23,937 | 23,498 |
Rental income from related parties | 354,968 | 89,411 | |
Gain from disposition of a subsidiary | 5,162 | ||
Total other income (expense) | 82,695 | 343,079 | 1,143,904 |
Income (loss) before income taxes | 1,940,488 | (8,372,388) | 1,783,474 |
Provision for income taxes | 641,460 | 164,537 | 380,296 |
Net income (loss) | 1,299,028 | (8,536,925) | 1,403,178 |
Less: net loss attributable to noncontrolling interest | (213,336) | (95,366) | (18,603) |
Net income (loss) attributable to Dogness (International) Corporation | 1,512,364 | (8,441,559) | 1,421,781 |
Other comprehensive income (loss): | |||
Foreign currency translation income (loss) | 4,879,315 | (1,896,934) | (2,010,170) |
Comprehensive income (loss) | 6,178,343 | (10,433,859) | (606,992) |
Less: comprehensive loss attributable to noncontrolling interest | (161,701) | (98,635) | (19,224) |
Comprehensive income (loss) attributable to Dogness (International) Corporation | $ 6,340,044 | $ (10,335,224) | $ (587,768) |
Income (loss) earnings Per share | |||
Basic | $ 0.05 | $ (0.33) | $ 0.05 |
Diluted | $ 0.05 | $ (0.33) | $ 0.05 |
Weighted Average Shares Outstanding | |||
Basic | 27,499,367 | 25,913,631 | 25,913,631 |
Diluted | 27,554,811 | 25,913,631 | 25,941,606 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2018 | $ 33,689 | $ 18,138 | $ 52,144,891 | $ 164,367 | $ 10,263,198 | $ (1,884,751) | $ 60,739,532 | |
Balance, shares at Jun. 30, 2018 | 16,844,631 | 9,069,000 | ||||||
Net income (loss) for the year | 1,421,781 | (18,603) | $ 1,403,178 | |||||
Stock option exercised, shares | ||||||||
Options granted for services | 682,254 | $ 682,254 | ||||||
Options granted for services shares | ||||||||
Capital contribution made by noncontrolling shareholders | 136,710 | 136,710 | ||||||
Statutory reserve | 27,349 | (27,349) | ||||||
Foreign currency translation gain (loss) | (2,009,549) | (621) | (2,010,170) | |||||
Balance at Jun. 30, 2019 | $ 33,689 | $ 18,138 | 52,827,145 | 191,716 | 11,657,630 | (3,894,300) | 117,486 | 60,951,504 |
Balance, shares at Jun. 30, 2019 | 16,844,631 | 9,069,000 | ||||||
Net income (loss) for the year | (8,441,559) | (95,366) | $ (8,536,925) | |||||
Stock option exercised, shares | ||||||||
Options granted for services | 394,465 | $ 394,465 | ||||||
Options granted for services shares | ||||||||
Capital contribution made by noncontrolling shareholders | 595,818 | 595,818 | ||||||
Foreign currency translation gain (loss) | (1,893,665) | (3,269) | (1,896,934) | |||||
Balance at Jun. 30, 2020 | $ 33,689 | $ 18,138 | 53,221,610 | 191,716 | 3,216,071 | (5,787,965) | 614,669 | 51,507,928 |
Balance, shares at Jun. 30, 2020 | 16,844,631 | 9,069,000 | ||||||
Net income (loss) for the year | 1,512,364 | (213,336) | 1,299,028 | |||||
Disposition of a subsidiary | (29,146) | (29,146) | ||||||
Issuance shares for private placement | $ 6,910 | 6,604,522 | 6,611,432 | |||||
Issuance shares for private placement, shares | 3,455,130 | |||||||
Issuance shares for services | $ 500 | 387,000 | 387,500 | |||||
Issuance shares for services, shares | 250,000 | |||||||
Stock option exercised | $ 12 | (12) | ||||||
Stock option exercised, shares | 6,053 | 10,000 | ||||||
Options granted for services | 142,158 | $ 142,158 | ||||||
Options granted for services shares | ||||||||
Capital contribution made by noncontrolling shareholders | 104,190 | 104,190 | ||||||
Statutory reserve | 99,727 | (99,727) | ||||||
Foreign currency translation gain (loss) | 4,827,680 | 51,635 | 4,879,315 | |||||
Balance at Jun. 30, 2021 | $ 41,111 | $ 18,138 | $ 60,355,278 | $ 291,443 | $ 4,628,708 | $ (960,285) | $ 528,012 | $ 64,902,405 |
Balance, shares at Jun. 30, 2021 | 20,555,814 | 9,069,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,299,028 | $ (8,536,925) | $ 1,403,178 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Amortization of the Right-of-use assets | 399,903 | 377,435 | |
Depreciation and amortization | 3,106,082 | 2,264,957 | 1,466,522 |
(Gain) loss from disposition of fixed assets | (85,899) | 1,036,304 | |
Gain from disposition of a subsidiary | (5,162) | ||
Share-based compensation for services | 249,797 | 394,465 | 682,254 |
Change in inventory reserve | 117,703 | 1,165,044 | (4,863) |
Change in bad debt allowance | 755,472 | 90,077 | |
Impairment of fixed assets | 281,680 | ||
Impairment of long-term investment in equity investees | 177,750 | ||
Deferred tax (benefit) | (478,316) | 84,046 | (209,015) |
Forgiveness of PPP loan | (73,300) | ||
Unrealized foreign exchange loss (gain) | 43,852 | 172,108 | (87,893) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (526,372) | 1,621,042 | 55,189 |
Inventories | (1,212,224) | 1,214,601 | (1,356,110) |
Prepayments and other current assets | 246,898 | (224,171) | (4,475,109) |
Accounts payables | 91,185 | (2,784,131) | 205,428 |
Advance from customers | 43,622 | (22,153) | (52,719) |
Taxes payable | 1,325,835 | (8,868) | 577,877 |
Accrued expenses and other liabilities | (619,179) | (36,955) | 436,233 |
Operating lease liabilities | (171,221) | (143,972) | |
Net cash provided by (used in) operating activities | 3,752,232 | (2,212,271) | (1,268,951) |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (777,762) | (837,508) | (3,157,281) |
Proceeds from disposition of fixed assets | 184,760 | 38,661 | |
Capital expenditures on construction-in-progress | (13,668,099) | (8,606,966) | (13,572,260) |
Long-term investments in equity investees | (241,600) | (287,244) | (1,143,707) |
Proceeds upon maturity (purchase) of short-term investments | 3,257,070 | 7,235,136 | 16,250,610 |
Net cash used in investing activities | (11,245,631) | (2,457,921) | (1,622,638) |
Cash flows from financing activities: | |||
Net proceeds from private placement | 6,611,432 | ||
Capital contribution made by noncontrolling shareholders | 104,190 | 595,818 | 136,710 |
Proceeds from short-term bank loans | 349,771 | 5,211,000 | 2,932,000 |
Repayment of short-term bank loans | (5,075,325) | (2,889,000) | (4,691,200) |
Proceeds from long-term bank loan | 7,550,000 | 73,300 | |
Repayment of long-term bank loans | (381,133) | ||
Proceeds from (repayment of) related party loans | 1,892,636 | 50,466 | (25,629) |
Net cash provided (used in) by financing activities | 11,051,571 | 3,041,584 | (1,648,119) |
Effect of exchange rate changes on cash | 110,709 | 345,329 | 4,625 |
Net (decrease) increase in cash | 3,668,881 | (1,283,279) | (4,535,083) |
Cash and restricted cash, beginning of year | 1,266,873 | 2,550,152 | 7,085,235 |
Cash and restricted cash, end of year | 4,935,754 | 1,266,873 | 2,550,152 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid (refunded) for income tax | (25,545) | 33,131 | 74,284 |
Cash paid for interest | 460,905 | 239,326 | 209,849 |
Non-Cash Investing Activities | |||
Right-of-assets obtained in exchange for operating lease obligations | 1,618,634 | ||
Transfer from construction-in-progress to fixed assets | 34,984,435 | 16,512,238 | 642,026 |
Additions to construction-in-progress through accounts payable and other payable | 10,528,918 | 3,269,263 | 2,247,578 |
Transfer from prepayments to construction-in-progress | 99,771 | 793,692 | |
Prepaid share based compensation for services | 279,861 | ||
Transfer from accounts receivable to long-term investment | $ 302,000 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Dogness (International) Corporation (“Dogness” or the “Company”), is a company limited by shares established under the laws of the British Virgin Islands July 11, 2016 9,069,000 Reorganization A Reorganization of the legal structure was completed on January 9, 2017. The Reorganization involved the incorporation of Dogness, a BVI holding company; and Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”), a holding company established under the laws of the People’s Republic of China (“PRC”); and the transfer of Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”), Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”), and Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”; collectively, the “Transferred Entities”) from the Controlling Shareholder to Dogness and Dongguan Dogness. Prior to the reorganization, the Transferred Entities’ equity interests were 100% controlled by the Controlling Shareholder. On November 24, 2016, the Controlling Shareholder transferred his 100 100 100 100 Since the Company and its wholly-owned subsidiaries are effectively controlled by the same Controlling Shareholder before and after the reorganization, they are considered under common control. The above-mentioned transactions were accounted for as a recapitalization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. On December 18, 2017, the Company completed its initial public offering (“IPO”) of 10,913,631 5.00 54.6 50.2 In January 2018, the Company formed a Delaware limited liability company, Dogness Group LLC (“Dogness Group”), with its operation focusing primarily on pet product sales in the U.S. In February 2018, Dogness Overseas Ltd (“Dogness Overseas”) was established in the British Virgin Islands as a holding company. Dogness Overseas owns all of the interests in Dogness Group. On March 16, 2018 (the “Acquisition Date”), the Company entered into a share purchase agreement to acquire 100 % of the equity interests in Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) from its original shareholder, Long Kai (Shenzhen) Industrial Co., Ltd (“Longkai”), for a total cash consideration of approximately RMB 71.0 million ($ 11.0 million) (the “Acquisition”). After the acquisition, Mejia became the Company’s wholly-owned subsidiary. On July 6, 2018, Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) was incorporated under the laws of PRC in Guangzhou City of Guangdong Province in China with a total registered capital of RMB 80 million (approximately $ 12.4 million). One of the Company’s subsidiaries, Dongguan Jiasheng, owns 58 % of Intelligence Guangzhou, with the remaining 42 % ownership interest owned by two unrelated entities. Intelligence Guangzhou had immaterial operation since its inception and will conduct research and manufacturing of the Company’s fast-growing intelligent pet products in the future. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS (continued) On February 5, 2019, in order to expand into the Japanese market and expedite the development of new smart pet products, Dogness Japan Co. Ltd. (“Dogness Japan”) was incorporated in Japan. The Company invested $ 142,000 for 51 % ownership interest in Dogness Japan, with the remaining 49 % owned by an unrelated individual. Due to the negative impact of COVID-19 and because no material revenue was generated since its inception, on November 28, 2020, the Board approved to the sale of the Company’s 51 % ownership interest to the remaining shareholder of Dogness Japan for cash consideration of JPY 3.2 million ($ 31,092 ). The disposition transaction was consummated on November 28, 2020. Immediate before the disposition, Dogness Japan’s total assets were $ 91,625 32,144 No revenue was reported for the year ended June 30,2021. Management determined that this disposition did not represent a strategic shift and had no significant effect on the Company’s operations and financial results; therefore, no discontinued operations were presented. The Company recorded a gain of $ 5,162 from the disposition of Dogness Japan, as included in the consolidated financial statements for the year ended June 30, 2021. Dogness Pet Culture (Dongguan) Co., Ltd. (“Dogness Culture”) was incorporated on December 14, 2018 with registered capital of RMB 10 million (approximately $ 1.5 million). The capital was not paid and there were no active business operations. On January 15, 2020, the Company’s subsidiary, Dongguan Dogness, entered into an agreement with the original shareholder of Dogness Culture, who is a relative of Mr. Silong Chen, the Chief Executive Officer, to acquire 51.2 % ownership interest of Dogness Culture for a nominal fee. The remaining equity interest of 48.8 % was also transferred to other two third parties for a nominal fee. Dongguan Dogness thereafter contributed cash consideration of RMB 5.12 million (approximately $ 0.79 million) on April 16, 2020 along with other two shareholders’ capital contributions of RMB 4.88 million (approximately $ 0.76 million). Dogness Culture will mainly focus on developing and expanding pet food market and pet related service in China. |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Jun. 30, 2021 | |
Liquidity | |
LIQUIDITY | NOTE 2 – LIQUIDITY As reflected in the Company’s consolidated financial statements, the Company had cash balance of approximately $ 4.9 million as of June 30, 2021, and the cash provided by operating activities was approximately $ 3.8 million for the year ended June 30, 2021. As of June 30, 2021, the Company had future minimum capital expenditure payable on its construction-in-progress projects of approximately $ 7.3 3.6 In addition, the Company had unpaid tax liabilities of $ 4.4 million as of June 30, 2021, which may be required to be settled with local tax authority in the near future. Furthermore, the ongoing COVID-19 pandemic may continue to negatively impact the Company’s business operations. A resurgence could negatively affect the Company’s ability to fulfill customer sales orders and collect customer payments timely, or disrupt the Company’s supply chain. As a result, there is a possibility that the Company’s revenue and cash flows may underperform in the next 12 months. The Company currently plans to fund its operations and support its ongoing construction-in-progress projects mainly through cash flow from its operations, remaining cash from its January 2021 equity financing, July 2021 equity financing, renewal of bank borrowings, borrowing from related parties and additional equity financing from outside investors, if necessary, to ensure sufficient working capital. However, no assurance can be given that additional financing, if required, would be available on favorable terms or at all. If the available fund is not sufficient to meet the required minimum capital expenditures on the CIP projects, the Company may adjust the CIP capital expenditure budget and slow down the CIP construction to appropriate level. Based on the current operating plan, management believes that the above-mentioned measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital requirement for at least 12 months from the date the consolidated financial statements are released. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Dogness, HK Dogness, HK Jiasheng, Dongguan Dogness, Dongguan Jiasheng, Meijia, Dogness Overseas, Intelligence Guangzhou, Dogness Japan. Dogness Culture and Dogness Group. All inter-company balances and transactions have been eliminated upon consolidation. The Company’s consolidated financial statements reflect the operating results of the following entities: SCHEDULE OF ENTITIES Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal Activities Dogness (International) Corporation (“Dogness” or the “Company”) July 11, 2016 BVI Parent, 100 % Holding Company Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”) March 10, 2009 Hong Kong 100 % Trading Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”) July 12, 2007 Hong Kong 100 % Trading Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”) October 26, 2016 Dongguan, China 100 % Holding Company Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”) May 15, 2009 Dongguan, China 100 % Development and manufacturing of pet leash products Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) July 9,2009 Zhangzhou, China 100 % Manufacturing of pet leash products Dogness Overseas Ltd (“Dogness Overseas”) February 8, 2018 BVI 100 % Holding Company Dogness Group LLC (“Dogness Group”) January 23, 2018 Delaware, United States 100 % Pet products trading Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) July 6, 2018 Guangzhou, China 58 % Research and manufacturing of intelligent pet products Dogness Japan Co. Ltd. (“Dogness Japan”) February 5, 2019 Osaka, Japan 51 % Developing and expanding pet food market, disposed on November 28, 2020 Dogness Pet Culture (Dongguan) Co. Ltd. (Dogness Culture) December 14, 2018 Dongguan, China 51.2 % Developing and expanding pet food market Noncontrolling interests As of June 30, 2021, noncontrolling interests represent 42.0 48.8 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, inventories, advances to suppliers, useful lives of property, plant and equipment, intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, revenue recognition and realization of deferred tax assets. Actual results could differ from those estimates. Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Short-term Investments The Company’s short-term investments consist of wealth management financial products purchased from PRC banks with maturities within one month to twelve months. The banks invest the Company’s fund in certain financial instruments including money market funds, bonds or mutual funds, with rates of return on these investments ranging from 2.6 3.8 The Company had short-term investments of $ 549,895 and $ 3,551,968 as of June 30, 2021 and 2020, respectively. The Company recorded interest income of $ 48,058 243,661 536,345 Accounts Receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for uncollectible balances amounted to $ 26,272 and $ 23,982 as of June 30, 2021 and 2020. Inventories, net Inventories are stated at net realizable value using the weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Prepayment Prepayment primarily consists of advances to suppliers for purchasing of raw materials that have not been received. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. Property, plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Useful life Buildings 10 50 Leasehold improvement Lesser of useful life and lease term Machinery equipment 5 10 Transportation vehicles 5 Office equipment and furniture 5 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of comprehensive income (loss) in other income or expenses. Intangible Assets, net Intangible assets consist primarily of a customized software system purchased from a third-party vendor, used for accounting and production management and land use rights. Under PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Intangible assets are stated at cost less accumulated amortization. Customized software systems are amortized using the straight-line method over the estimated useful economic life of 5 10 50 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Long-term Investments in Equity Investees On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 321 “Investments—Equity Securities” (“ASC 321”). In accordance with ASC 321, equity securities over which the Company has no significant influence (generally less than a 20 Nanjing Rootaya Intelligence Technology Co., Ltd. (“Nanjing Rootaya”) is an entity incorporated on March 25, 2015 in the PRC and is primarily engaged in development of smart pet products. In July 2018, the Company entered into an equity investment agreement with Nanjing Rootaya to invest RMB 1.25 177,750 10 90 Dogness Network Technology Co., Ltd (“Dogness Network”) is an entity incorporated on November 17, 2017 in the PRC and is engaged in the development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Dogness Network to invest RMB 8.0 1,239,200 10 90 Linsun Smart Technology Co., Ltd (“Linsun”) is an entity incorporated on January 25, 2018 in the PRC and is engaged in development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Linsun to invest RMB 3.0 464,700 13 87 The purpose of entering into these equity investment agreements with Nanjing Rootaya, Dogness Network and Linsun was to establish cooperative business with these investees to jointly develop and distribute the Company’s intelligent smart pet products. The Company accounts for the above-mentioned investments using the measurement alternative in accordance with ASC 321. The Company records the cost method investments at historical cost and subsequently records any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees is evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the financial condition and operating performance of Nanjing Rootaya, it reported significant net loss and working capital deficit, . As a result, a full impairment loss of $ 177,750 As of June 30, 2021 and 2020, the Company’s long-term investments in equity investees amounted to $ 1,703,900 1,046,360 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, short-term investments, accounts receivable, inventories, prepayments and other current assets, accounts payable, advance from customers, taxes payable, accrued liabilities and other payable and short-term bank loans approximate their fair values because of the short-term nature of these instruments. The Company’s long-term investments are accounted for using the measurement alternative in accordance with ASC 321, which also approximate their recorded values. Long-lived assets impairment The Company reviews long-lived assets, including definitive-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition below are the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. During the year ended June 30, 2020, the Company disposed approximately $ 1.2 281,680 No Leases The Company adopted ASU No. 2016-02—Leases (Topic 842) since July 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact our consolidated net earnings and cash flows. Rental income Rental revenues are recognized as earned in accordance with the terms of the respective lease agreement on a straight-line basis. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees and other fees are recognized as income when earned. Management reviews the tenant’s payment history and financial condition periodically in determining, in its judgment, whether any accrued rental income and unbilled rent receivable balances applicable to each specific property is collectable. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition On July 1, 2018, the Company adopted ASC 606 Revenue from Contracts with Customers, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not Revenue is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of contract terms occur with the transfer of title of the Company’s products to the customers. Net sale is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods to the wholesaler and retailers. The amount of consideration the Company expects to receive consists of the sales price adjusted for any incentives if applicable. Such incentives do not represent a standalone value and are accounted for as a reduction of revenue in accordance with ASC 606. For the years ended June 30, 2021, 2020 and 2019, the Company did not provide any sales incentives to its customers. Incidental promotional items that are immaterial in the context of the contract are recognized as expense. Fees charged to customers for shipping and handling are included in net sales and the related costs incurred by the Company are included in selling expenses. In applying judgment, the Company considered customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include any variable consideration. The Company’s revenue is primarily generated from the sales of pet products, including leashes, accessories, collars, harnesses and intelligent pet products, to wholesalers and retailers. Revenue is reported net of all value added taxes (“VAT”). The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. During the year ended June 30, 2021, the Company started to provide ribbon dyeing service to customers. The Company utilizes its manufacturing capability and color dyeing technology to provide dyeing solutions to customers and apply dyes or pigments on ribbons made of textile materials such as fibers, yarns and fabrics to achieve customer desired color fastness and quality. The Company recognizes revenue at the point when dyeing solutions and related services are rendered, products after dyeing are delivered and accepted by the customers. The Company also started pet grooming services and the revenue is recognized when the services are rendered. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of June 30, 2021 and 2020, other than accounts receivable and advances from customers, the Company had no other material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition (continued) Disaggregation of Revenues The Company disaggregates its revenue from contracts product and service types and geographic areas, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the years ended June 30, 2021, 2020 and 2019 are disclosed in Note 16 of these consolidated financial statements. Research and development costs Research and development expenses include costs directly attributable to the conduct of research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income or expenses in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded . Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2021, the Company had income tax payable of approximately $ 4.3 million, primarily related to the unpaid income tax in China. Based on statutory surcharge for overdue tax payment, the Company recorded surcharge of $ 669,650 as part of the income tax provision as reflected in the consolidated statements of comprehensive income (loss) for the year ended June 30, 2021. The Company expects to settle the income tax liabilities in fiscal 2022 when the 2021 annual income tax return is assessed by the local tax authority. As of June 30, 2021, all of the Company’s tax returns of its PRC Subsidiaries, Hong Kong subsidiaries, and U.S subsidiary remain open for statutory examination by relevant tax authorities. Value added tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 2018, VAT rate was lowered to 16%, and starting from April 2019, VAT rate was further lowered to 13%), depending on the type of products sold. Since significant amount of the Company’s products are exported to the U.S. and Europe, the Company is eligible for VAT refunds when the Company completes all the required tax filing procedures. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Earnings (loss) per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Share-Based compensation The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee stock-based awards. For employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. Foreign Currency Translation The Company’s principal country of operations is the PRC. The financial position and results of the operations of HK Dogness, HK Jiasheng, Dongguan Dogness, Dongguan Jiasheng, Meijia, Intelligence Guangzhou and Dogness Culture are determined using RMB, the local currency, as the functional currency. Dogness Japan uses Japanese Yen as the functional currency, while Dogness Overseas and Dogness Group use U.S Dollar as their functional currency. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of comprehensive income (loss). The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATES June 30, 2021 June 30, 2020 June 30, 2019 Year-end spot rate US$1=RMB 6.4566 US$1=JPY 111.1 US$1=RMB 7.0721 US$1=JPY 107.5 US$1=RMB 6.8657 US$1=JPY 107.5 Average rate US$1=RMB 6.6221 US$1=JPY 106.6 US$1=RMB 7.0323 US$1=JPY 107.5 US$1=RMB 6.8226 US$1=JPY 111.1 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currency. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassification of negative VAT tax payable as VAT tax recoverable, segregation of capital expenditure on construction-in-progress out of capital expenditure on property, plant and equipment, renal income from related parties, and the classification of revenue segments. These reclassifications had no effect on the reported revenues, net income (loss) and cash flows. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of ASU 2019-12 does not have a material impact on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company is currently evaluating the effect of adopting this ASU on the Company’s financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. As revised, ASC 310-20-35-33 requires that, for each reporting period, to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (i.e., the premium) should be amortized to the next call date, unless the guidance in ASC 310-20-35-26 is applied to consider estimated prepayments. For purposes of this guidance, the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. If there is no remaining premium or if there are no further call dates, the entity should reset the effective yield using the payment terms of the debt security. For public business entities, ASU 2020-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. For all other entities, ASU 2020-08 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the effect of adopting this ASU on the Company’s financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial statements. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 As of June 30, 2021 2020 Accounts receivable from third-party customers $ 2,393,598 $ 1,940,822 Less: allowance for doubtful accounts (26,272 ) (23,982 ) Total accounts receivable from third-party customers, net 2,367,326 1,916,840 Add: accounts receivable - related parties 515,193 559,465 Total accounts receivable, net $ 2,882,519 $ 2,476,305 For the years ended June 30, 2021, 2020 and 2019, the Company recorded a bad debt provision of $ Nil 755,472 90,077 26,272 23,982 Nil 856,383 Approximately RMB 14.7 million ($ 2.3 million) or 95 % of the accounts receivable balance as of June 30, 2021 from third-party customers has been collected as of the date of this report. In connection with the Company’s long-term investments in equity investees as disclosed in Note 3, the Company sold certain intelligence pet products to related party, Dogness Network in the year ended June 30, 2021. The outstanding accounts receivable from this related party amounted to $ 515,193 404,504 Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2021 June 30, 2020 Beginning balance $ 23,982 $ 128,106 Additions - 755,472 Write-off - (856,383 ) Foreign currency translation adjustments 2,290 (3,213 ) Ending balance $ 26,272 $ 23,982 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 5 – INVENTORIES, NET Inventories consisted of the following: SCHEDULE OF INVENTORY 2021 2020 As of June 30, 2021 2020 Raw materials $ 218,090 $ 140,745 Work in process 1,082,350 677,301 Finished goods 3,054,909 3,201,205 Inventory, gross 4,355,349 4,019,251 Less: inventory allowance (152,186 ) (1,158,551 ) Inventory, net $ 4,203,163 $ 2,860,700 Inventory includes raw materials, work in progress and finished goods. Finished goods include direct material costs, direct labor costs and manufacturing overhead. For the years ended June 30, 2021 and 2020, the Company recorded inventory markdown of $ 117,703 and $ 1,165,044 , respectively. During the year ended June 30, 2021, for certain obsolete, slow-moving and damaged fabric and leather raw materials and metal components or parts used in the manufacturing of the Company’s pet leash and other pet products, the Company disposed approximately $ 1.2 million obsolete and damaged inventory. As a result, inventory reserve has been written down from $ 1,158,551 as of June 30, 2020 to $ 152,186 as of June 30, 2021. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET 2021 2020 As of June 30, 2021 2020 Buildings $ 28,128,416 $ 25,532,908 Machinery and equipment 7,524,170 6,698,443 Office equipment and furniture 1,296,201 765,597 Automobiles 754,764 810,156 Leasehold improvements 41,095,980 5,028,382 Construction-in-progress (“CIP”) (1) 597,594 10,647,107 Total 79,397,125 49,482,593 Less: accumulated depreciation (9,214,249 ) (5,668,986 ) Impairment of fixed assets (306,837 ) (280,095 ) Property, plant and equipment, net $ 69,876,039 $ 43,533,512 During the year ended June 30, 2020, the Company disposed approximately $ 1.2 1,036,304 281,680 No Depreciation expense was $ 3,025,686 2,189,863 1,387,698 7.4 5.7 million as the collateral to secure the loans. In addition, in connection with the Company’s $ 0.7 million loan from Cathay Bank, the Company’s U.S. subsidiary Dogness Group pledged its fixed assets as collateral to secure the borrowing (see Note 9). (1) The Company’s CIP primarily consisted of the following: On March 16, 2018, the Company acquired 100 71.0 11.0 110 17.0 118.5 18.4 In addition, the Company’s subsidiary Dongguan Jiasheng also had a capital project to build new manufacturing and operating facilities, which include warehouse, workshops, office building, security gate, employee apartment building, electrical transformer station and exhibition hall, etc. The total budget is approximately RMB 230.8 35.8 161.3 25.0 69.5 10.8 10.7 (1) The Company’s CIP primarily consisted of the following: On March 16, 2018, the Company acquired 100% of the equity interests in Meijia from its original shareholder, for a total cash consideration of RMB 71.0 million ($11.0 million) (See Note 1). After the acquisition, the Company started building its own facilities and office spaces to expand the production capacity in order to fulfill increased customer orders. Total budgeted capital expenditure to bring Meijia manufacturing facility into use was originally estimated to be completed at a cost of RMB110 million ($17.0 million). The actual costs have been adjusted based on additional works required for waterproofing, sewage pipeline and hazardous waste leakage prevention. As a result, total actual costs incurred as of June 30, 2021, amounted to RMB118.5 million ($18.4 million). Meijia plant started test operations in August 2019, and has started normal production since December 2019 upon passing the final inspection conducted by the local government. Meijia plant has reached its fully production capacity and all CIP has been transferred to fixed assets as of June 30, 2021. In addition, the Company’s subsidiary Dongguan Jiasheng also had a capital project to build new manufacturing and operating facilities, which include warehouse, workshops, office building, security gate, employee apartment building, electrical transformer station and exhibition hall, etc. The total budget is approximately RMB 230.8 million ($35.8 million). As of June 30, 2021, the Company had substantially completed this project and transferred most of the related CIP to fixed assets. As of June 30, 2021, the Company has made total payments of approximately RMB 161.3 million ($25.0 million) in connection to this project, which resulted in future minimum capital expenditure payments of RMB 69.5 million ($10.8 million). As of June 30, 2021, the Company recorded approximately $10.7 million unpaid costs in connection to this CIP project in accrued liabilities and other payable.. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET (continued) The Company’s subsidiary Dogness Culture is also working on a project to decorate a pet themed retail store. Total costs is RMB 2.2 0.3 1.5 0.2 As of June 30, 2021, future minimum capital expenditures payable on the Company’s construction-in-progress projects are estimated as follows: SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES Capital expenditure Capital expenditure Total 2022 $ 7,217,370 $ 106,718 $ 7,324,088 2023 1,247,708 - 1,247,708 2024 929,400 - 929,400 2025 774,500 - 774,500 2026 634,365 - 634,365 Total $ 10,803,343 $ 106,718 $ 10,910,061 Subsequently, from July 2021 to October 2021, the Company made payment of RMB 32.1 million ($ 5.0 million) on the above-mentioned construction projects. As a result, the Company’s future capital expenditure payable on CIP has been lowered down from approximately $ 10.9 million as of June 30, 2021 to approximately $ 5.9 million as of the date of this report, as detailed below: Capital expenditure Capital expenditure payable Total 2022 $ 2,286,454 $ 58,141 $ 2,344,595 2023 1,247,708 - 1,247,708 2024 929,400 - 929,400 2025 774,500 - 774,500 2026 634,365 - 634,365 Total $ 5,872,427 $ 58,141 $ 5,930,568 The Company plans to fund these CIP projects through working capital generated from operations, bank borrowings, borrowing from related parties, the proceeds received from July 2021 equity financing, as well as other future potential capital raising activities. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7 – INTANGIBLE ASSETS, NET Net intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS, NET 2021 2020 As of June 30, 2021 2020 Software $ 232,764 $ 212,478 Land use right 2,352,331 2,147,318 Less: accumulated amortization (361,810 ) (254,993 ) Intangible assets, net $ 2,223,285 $ 2,104,803 Amortization expense was $ 80,396 75,094 78,824 7.4 2.1 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2021 | |
Leases | |
LEASES | NOTE 8 – LEASES The Company has several operating leases for manufacturing facilities and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Rent expense for the years ended June 30, 2021, 2020 and 2019 was $ 487,763 562,894 640,626 Effective July 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated deficit as of June 30, 2021. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. Supplemental balance sheet information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION June 30, June 30, June 30, June 30, Right-of-use assets, net $ 5,170,395 $ 5,123,898 Operating lease liabilities - current $ 171,803 $ 172,716 Operating lease liabilities - non-current 1,123,060 1,200,299 Total operating lease liabilities $ 1,294,863 $ 1,373,015 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2021: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Remaining lease term and discount rate: Weighted average remaining lease term (years) 14.58 Weighted average discount rate 5.79 % The following is a schedule of maturities of lease liabilities as of June 30,2021: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Twelve months ending June 30, 2022 $ 240,505 2023 246,569 2024 264,105 2025 264,556 2026 271,226 Thereafter 244,817 Total future minimum lease payments 1,531,778 Total future minimum lease payments 1,531,778 Less: imputed interest 236,915 Total $ 1,294,863 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
BANK LOANS
BANK LOANS | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 9 – BANK LOANS Short-term loans consisted of the following: SCHEDULE OF SHORT-TERM BANK LOANS As of June 30, 2021 2020 Bank of Communications of China (“BCC”): Effective interest rate at 5.655 $ - $ 2,545,200 Industrial and Commercial Bank of China (“ICBC”): Effective interest rate at 5.655 - 1,696,800 Cathay Bank Effective interest rate at 4.25 704,446 900,000 Total $ 704,446 $ 5,142,000 (1) In August 2019, Dongguan Jiasheng entered into two loan agreements with BCC Dongguan Branch to borrow total of RMB 18 2.5 The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. 2.1 8.2 (2) On August 9, 2019, Dongguan Jiasheng entered into a loan agreement with ICBC to borrow RMB 12 1.7 The loan bears a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.345 basis points. (3) On February 6, 2020, one of the Company’s U.S. subsidiary Dogness Group, obtained a line of credit from Cathay Bank, pursuant to which, Dogness Group has the availability to borrow a maximum $ 1.2 704,446 Long-term loan consisted of the following: SCHEDULE OF LONG-TERM LOAN As of June 30, 2021 2020 Southwestern National Bank Paycheck Protection Program Loan (PPP) Loan $ - $ 73,300 Dongguan Rural Commercial Bank Effective interest rate at 6.15 6.55 7,354,024 - Total 7,354,024 73,300 Less: current portion of long-term loans 796,416 - Long-term loans $ 6,557,608 $ 73,300 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – BANK LOANS (continued) On May 11, 2020, Dogness Group, applied for and received funding for a loan totaling $ 73,300 100 The interest rate on this loan is 1% per annum and any portion of the principal and accrued interest that is not forgiven is required to be repaid by May 11, 2022. On July 17, 2020, the Company entered into multiple loan agreements with Dongguan Rural Commercial Bank to borrow an aggregate of RMB 50 million ($ 7.7 million) of loans to support the working capital needs and the construction of the Company’s current CIP projects. The loans have terms of eight years with a maturity date on July 16, 2028. The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. The Company pledged the land use right of approximately $ 2.1 5.7 million from Meijia as collateral to secure total loans of RMB 30 million ($ 4.6 million). Mr. Silong Chen, the CEO of the Company, pledged personal property as collateral to secure the remaining loans of RMB 20 million ($ 3.1 million). Dongguan Dogness, Meijia and Mr. Silong Chen also provided guarantee for the loans. During the year ended June 30, 2021, the Company repaid RMB 2.5 million ($ 0.4 million) with an outstanding balance of RMB 47.5 million ($ 7.4 million) as of June 30, 2021. Interest expenses for the above-mentioned loans amounted to $ 460,905 239,326 209,842 The Company capitalized interest of $ 145,620 nil As of June 30, 2021, the Company’s short-term and long-term loans totaled approximately $ 8.0 SCHEDULE OF BANK LOANS REPAYMENT Twelve months ending June 30, Repayment 2022 $ 1,500,862 2023 1,438,153 2024 3,320,220 2025 402,638 2026 429,512 2027 458,182 2028 488,734 2029 20,169 Total $ 8,058,470 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
TAXES
TAXES | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 10 – TAXES (a) Corporate Income Taxes (“CIT”) Dogness is incorporated in the BVI as an offshore holding company and is not subject to tax on income or capital gain under the laws of BVI. Under Hong Kong tax laws, subsidiaries in Hong Kong are subject to statutory income tax rate at 16.5 Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and Foreign Investment Enterprises (“FIEs”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. In October 2015, Dongguan Jiasheng, the Company’s main operating subsidiary in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% for three years. EIT is typically governed by the local tax authority in China. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate the local economy. The corporate income taxes for the fiscal year 2021, 2020 and 2019 were reported at a reduced rate of 15 % as a result of Dongguan Jiasheng being approved as HNTE. The impact of the tax holidays noted above decreased foreign taxes by $ 117,514 , $ Nil and $ 3,003 for the years ended June 30, 2021, 2020 and 2019, respectively. The benefit of the tax holidays on net income per share (basic and diluted) was $ 0.00 , $ Nil and $ 0.00 respectively. The following table reconciles the statutory rate to the Company’s effective tax: SCHEDULE OF RECONCILIATION EFFECTIVE TAX 2021 2020 2019 For the years ended June 30, 2021 2020 2019 Income tax expense computed based on PRC statutory rate $ 485,121 $ (2,093,097 ) $ 445,868 Effect of rate differential for Hong Kong and other outside PRC entities (173,905 ) (24,016 ) (229,893 ) Effect of PRC preferential tax rate (117,514 ) 515,416 (34,453 ) Change in valuation allowance (223,729 ) 1,635,324 - Surcharge on unpaid income tax 669,650 - - Permanent difference 30,030 130,910 198,774 Refund of prior years’ tax (28,193 ) - - Effective tax $ 641,460 $ 164,537 $ 380,296 The provision for income tax consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) 2021 2020 2019 For the years ended June 30, 2021 2020 2019 Current income tax provision $ 1,119,776 $ 25,423 $ 614,622 Deferred income tax provision (benefit) (478,316 ) 139,114 (234,326 ) Total income tax expense $ 641,460 $ 164,537 $ 380,296 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10 – TAXES (continued) The components of deferred tax assets as of June 30, 2021 and 2020 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES June 30, 2021 June 30, 2020 Deferred tax assets: Net operating losses $ 1,223,699 $ 1,515,308 Assets impairment reserve 471,634 233,759 Depreciation and others 56,642 - Valuation allowance (1,146,317 ) (1,633,837 ) Deferred tax assets, net $ 605,658 $ 115,230 (b) Taxes Payable The Company’s taxes payable consists of the following: SCHEDULE OF TAXES PAYABLE June 30, 2021 June 30, 2020 Corporate income tax payable $ 4,256,487 $ 2,813,014 Other tax payable 186,705 1,397 Total taxes payable $ 4,443,192 $ 2,814,411 As of June 30, 2021 and 2020, the Company had accrued tax liabilities of approximately $ 4.4 million and $ 2.8 million, respectively, mostly related to the unpaid income tax and business tax and accrued surcharge for overdue tax payment in China. According to PRC taxation regulation and administrative practice and procedures, if the tax is not fully paid, tax authorities may impose interest and late payment penalties on the unpaid balance. The statute of limitation on the tax authority’s audit or examination of previously filed tax returns expires three years from the date they were filed. For the year ended June 30, 2021, the Company accrued and recorded surcharge for overdue tax payment of $ 669,650 associated with unpaid income tax liabilities, which was recorded as part of the income tax provision and reflected in the consolidated statements of operations and comprehensive income. In practice, the local tax authority is typically more flexible and willing to provide incentives or settlements with local small and medium-size businesses to relieve their burden and to stimulate the local economy. Management has discussed with local tax authorities regarding the outstanding tax payable balance after the Company successfully completed its IPO and is in the process of negotiating a settlement plan agreement. Local tax authorities have not made a determination as of June 30, 2021. The Company believes it is likely that the Company can reach an agreement with the local tax authority to fully settle its tax liabilities in fiscal 2022, but cannot guarantee such settlement will ultimately occur. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES Contingencies The Company may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on the Company’s consolidated financial position or results of operations or liquidity. Capital Investment Obligation Dogness Intelligence Technology Co., Ltd. On July 6, 2018, a new entity called Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”), was incorporated under the laws of the People’s Republic of China in Guangzhou City, Guangdong Province, China with a total registered capital of RMB 80 12.4 46.4 7.2 58 Zhangzhou Meijia Metal Product Ltd. Meijia was incorporated under the laws of the People’s Republic of China with a total registered capital of RMB 60.0 9.3 40.9 6.3 1.8 0.3 As of the date of this report, pursuant to the articles of incorporation of Meijia, the Company is obligated to contribute the remaining RMB 17.3 2.7 Dongguan Jiasheng Enterprise Ltd. In December 2020, Dongguan Jiasheng amended its Article of Incorporation to increase its registered capital from RMB 50.0 7.7 55.0 8.5 39 6.0 16.0 2.5 Dogness Network As disclosed in Note 3 above, the Company is required to invest RMB 8.0 1.2 10 8.0 1.2 Capital Expenditure Payable on the CIP In connection with the Company’s construction-in-progress projects on Meijia and Dongguan Jiasheng, from July 2021 to October 2021, the Company made payments of RMB 32.1 million ($ 5.0 million) on these projects. As a result, the future minimum capital expenditure payable on these CIP projects has decreased from approximately $ 10.9 million as of June 30, 2021 to approximately $ 5.9 million as of the date of this report (see Note 6). DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12 – RELATED PARTY TRANSACTIONS The relationship of related parties is summarized as follow: SCHEDULE OF RELATIONSHIP OF RELATED PARTIES Name of Related Party Relationship to the Company Silong Chen Chief Executive Officer; Chairman of the Board of Directors Junqiang Chen and Caiyuan He Relatives of Mr. Silong Chen Linsun Smart Technology Co., Ltd (“Linsun”) Equity investee - 10 Dogness Network Technology Co., Ltd (“Dogness Network”) Equity Investee - 13 Guangdong Dogness Biotechnology Co., Ltd. (“Guangdong Dogness”) Relate to one of the Company’s shareholders Guangdong Dogness Technology Co., Ltd. (“Dogness Technology”) The legal representative is Junqiang Chen, the relative of Mr. Silong Chen (1) Due from related party As of June 30, 2021 and 2020, due from related parties consist of the following: SCHEDULE OF DUE FROM RELATED PARTIES As of June 30, 2021 2020 Linsun $ 32,118 $ - Dogness Network 410 - 32,528 - (2) Due to related party As of June 30, 2021 and 2020, due to related parties consist of the following: SCHEDULE OF DUE TO RELATED PARTIES As of June 30, 2021 2020 Mr. Silong Chen $ 2,001,940 $ 25,462 Mr. Silong Chen periodically provides working capital loans to support the Company’s operations when needed. Such advance was non-interest bearing and due on demand. (3) Loan guarantee provided by related parties In connection with the Company’s bank borrowings, Mr. Silong Chen pledged his personal assets as collateral and signed guarantee agreements to provide guarantee to the Company’s short-term bank loans. Related parties, Mr. Junqiang Chen and Ms. Caiyuan He, the relatives of Mr. Silong Chen, also jointly provided guarantee to the Company’s borrowings from ICBC bank (See Note 9). (4) Sales to related parties Revenue from related parties consisted of the following: SCHEDULE OF REVENUE FROM RELATED PARTIES For the years ended June 30, Name 2021 2020 2019 Linsun $ - $ 72,987 $ 185,126 Dogness Network 1,207,686 836,664 143,441 Total $ 1,207,686 $ 909,651 $ 328,567 Cost of revenue associated with the sales to these two related parties amounted to $ 663,742 633,132 202,606 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 – RELATED PARTY TRANSACTIONS (continued) (5) Accounts receivable from related party Accounts receivable from related party consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES As of June 30, Accounts receivable - related parties: 2021 2020 -Dogness Network $ 515,193 $ 559,465 Total $ 515,193 $ 559,465 As of June 30, 2021, total accounts receivable from this related party amounted to $ 515,193 404,504 (6) Accounts payable to related parties Accounts payables to related parties consisted of the following SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES As of June 30, Accounts payable - related parties: 2021 2020 -Linsun $ 350,199 $ 301,555 -Dogness Network - 3,660 Total $ 350,199 $ 305,215 (6) Purchase from related parties During the year ended June 30, 2021, the Company purchased certain pet product components and parts, such as smart pet water and food feeding devices from Linsun. For the year ended June 30, 2020, the Company also purchased from Dogness Network. Total purchases from Linsun and Dogness Network amounted to $ 3,015,442 and $ 2,191,458 for the years ended June 30, 2021 and 2020, respectively. During the year ended June 30, 2020, the Company also purchased total of $ 205,328 (7) Lease arrangement with related parties On January 2, 2020, Dongguan Jiasheng signed a lease agreement with Linsun, which enabled Linsun to lease part of Dongguan Jiasheng’s new production facilities of approximately 8,460 ten years Annual lease payment from Linsun amounted to approximately $ 250,000 15 300,511 89,411 On August 1, 2020, Dongguan Jiasheng signed a lease agreement with Dogness Network, which enabled Dogness Network to lease part of Dongguan Jiasheng’s new production facilities of approximately 580 ten years Annual lease payment from Dogness Network amounted to approximately $ 36,000 15 52,796 Nil On August 1, 2020, Dongguan Jiasheng signed a lease agreement with Gongdong Dogness, which enabled Gongdong Dogness to lease part of Dongguan Jiasheng’s new production facilities of approximately 50 ten years 1,812 1,661 Nil DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
EQUITY | NOTE 13 – EQUITY Common Shares Dogness was established under the laws of BVI on July 11, 2016. The original authorized number of common shares was 15,000,000 shares with par value of $ 0.002 each. On April 26, 2017, Shareholders of the Company held a meeting (the “Meeting”) and approved the following resolutions: (i) increase the authorized number of common shares to 100,000,000 shares with par value of $ 0.002 each, of which 15,000,000 were issued and outstanding; and (ii) reclassify the currently issued and outstanding common shares into two classes, Class A common shares and Class B common shares, which have equal economic rights but unequal voting rights, pursuant to which Class A common shares receive one vote each and Class B common shares receive three votes each. Initial Public Offering On December 18, 2017, the Company completed its initial public offering (“IPO”) of 10,913,631 5.00 54.6 50.2 Public Offering Warrants In connection with and upon closing of the IPO on December 18, 2017, the Company agreed to issue to the underwriters and to register herein warrants to purchase up to a total of up to 500,000 5 The warrants carry a term of three years 6.25 Equity financing On January 20, 2021, the Company closed a securities purchase agreement with certain institutional investors for the sale of 3,455,130 2.15 6.6 In addition, warrants carry a term of three years to purchase an aggregate of 1,727,565 2.70 276,410 2.70 5.4 Common shares issued for service On April 15, 2021, the Company signed a consulting agreement with Real Miracle Investments Limited (“Real Miracle’) to provide strategic business and marketing consulting services to the Company for nine months from April 15, 2021. As the consideration for the service, Real Miracle is entitled to receive 250,000 387,500 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 13 – EQUITY (continued) As of June 30, 2021, the Company had an aggregate of 29,624,814 common shares outstanding, consisting of 20,555,814 Class A and 9,069,000 Class B common shares; respectively. 25,913,631 common shares outstanding, consisting of 16,844,631 Class A and 9,069,000 Class B common shares. As of June 30, 2021, 500,000 warrants in connection with the initial public offering were expired and 2,003,975 2.70 2.11 Statutory Reserve The Company’s subsidiaries located in mainland China are required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The Company allocated $ 99,727 , $ Nil and $ 27,349 to statutory reserves during the years ended June 30, 2021, 2020 and 2019 in accordance with PRC GAAP, respectively. The restricted amounts as determined by the PRC statutory laws totaled $ 291,443 and $ 191,716 as of June 30, 2021 and 2020, respectively. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 14 – EARNINGS (LOSS) PER SHARE For the years ended June 30, 2021, the effect of potential shares of common stock from the unexercised options was dilutive since the exercise prices for the options were lower than the average market price. As a result, a total of 55,444 For the years ended June 30, 2020, potential shares of common stock from the unexercised options and unexercised options are excluded from diluted net (loss) per share as such amounts are anti-dilutive. For the years ended June 30, 2019, the effect of potential shares of common stock from the unexercised options was dilutive since the exercise prices for the options were lower than the average market price. As a result, a total of 27,975 The following table presents a reconciliation of basic and diluted net income (loss) per share: SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED 2021 2020 2019 For the years ended June 30, 2021 2020 2019 Net income (loss) attributable to the Company $ 1,512,364 $ (8,441,559 ) $ 1,421,781 Weighted average number of common shares outstanding - Basic 27,499,367 25,913,631 25,913,631 Dilutive securities -unexercised warrants and options 55,444 - 27,975 Weighted average number of common shares outstanding – diluted 27,554,811 25,913,631 25,941,606 Earnings (loss) per share - Basic $ 0.05 $ (0.33 ) $ 0.05 Earnings (loss) per share – Diluted $ 0.05 $ (0.33 ) $ 0.05 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
OPTIONS
OPTIONS | 12 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OPTIONS | NOTE 15 – OPTIONS On November 10, 2017, the Company signed a consulting agreement to engage TJ Capital Management, L.P. (“TJ Capital”) to provide strategic consulting services to the Company in matters relating to investor relations, capital markets and shareholder value creation strategy. As the part of the agreement, TJ Capital was granted stock option to purchase 160,000 1.50 60,000 7 50,000 10 50,000 15 On May 23, 2019, the Company signed a service termination agreement with TJ Capital to terminate the consulting agreement previously entered on November 10, 2017. As a result, the options granted under the original service agreement were also cancelled. No stock-based compensation expenses were accrued up to the date of the termination of this agreement, because TJ Capital had not provided the services. On July 30, 2019, the Company negotiated and signed a new Corporate and Executive Service Agreement with TJ Capital to provide strategic consulting services to the Company relating to services such as investor relations, capital markets and shareholder value creation strategy. The consulting service period is for two years, unless sooner terminated by either party or extended by the agreement of both parties. Pursuant to the agreement, as the compensation for the services, TJ Capital will be granted stock options to purchase 160,000 1.50 6,667 284,300 2.90 1.85 2 1.50 77.0 Nil Pursuant to the consulting agreement signed between TJ Capital and the Company on July 30, 2019, TJ Capital opted to exercise 10,000 6,053 On May 28, 2017, the Company signed an employment agreement with Dr. Yunhao Chen, the Chief Financial Officer of the Company. As the part of the compensation, the Company agreed to grant Ms. Chen options to purchase up to 120,000 1.50 5,000 The aggregate fair value of the options granted to Dr. Yunhao Chen, the CFO, was $ 440,840 Black-Scholes pricing model 5.0 1.84 2 1.50 69.5 Nil 120,000 no DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 15 – OPTIONS (continued) On May 28, 2017, the Company signed an employment agreement with Mr. Silong Chen, the Chief Executive Officer of the Company. As the part of the compensation, the Company agrees to grant Mr. Chen options to purchase up to 360,000 1.50 10,000 140,000 The aggregate fair value of the options granted to Mr. Silong Chen was $ 1,385,500 Black-Scholes pricing model 5.0 1.94 3 1.50 74.7 Nil no 220,000 The Company recorded $ 529,658 394,465 682,254 As of June 30, 2021, the Company had 490,000 0.03 6,659 0.03 SCHEDULE OF STOCK OPTION ACTIVITY Number of Weighted Average Weighted Average Remaining Life in Years Outstanding, June 30, 2018 640,000 $ 1.50 1.81 Exercisable, June 30, 2018 90,000 $ 1.50 2.14 Granted - - - Cancelled (160,000 ) - - Exercised - - - Outstanding June 30, 2019 480,000 $ 1.50 1.22 Exercisable, June 30, 2019 270,000 $ 1.50 1.14 Outstanding June 30, 2019 480,000 $ 1.50 1.22 Exercisable, June 30, 2019 270,000 $ 1.50 1.14 Granted 160,000 - - Cancelled (140,000 ) - - Exercised - - - Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Granted - - - Cancelled - - - Exercised (10,000 ) - - Outstanding June 30, 2021 490,000 $ 1.50 0.03 Exercisable, June 30, 2020 483,341 $ 1.50 0.03 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SEGMENT
SEGMENT | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT | NOTE 16 – SEGMENT The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment. The management of the Company concludes that it has only one Revenue by products and services The summary of total revenues by product categories for the years ended June 30, 2021, 2020 and 2019 was as follows: SCHEDULE OF REVENUES BY PRODUCT CATEGORIES For the years ended June 30, Products 2021 2020 2019 Traditional pet products $ 14,331,492 $ 13,208,764 $ 23,897,528 Intelligent pet products 7,801,070 4,328,918 2,103,523 Climbing hooks and others 1,340,686 1,633,676 215,464 Total revenue from product sales 23,473,248 19,171,358 26,216,515 Services: Dyeing services 817,145 - - Other services 29,728 - - Total revenue from service 846,873 - - Total revenue $ 24,320,121 $ 19,171,358 $ 26,216,515 Revenue by geographic area Geographic information about the revenues, which are classified based on customers, is set out as follows: SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION For the years ended June 30, Geographic location 2021 2020 2019 Sales to international markets $ 10,627,253 $ 9,399,228 $ 11,134,072 Sales in China domestic market 13,692,868 9,772,130 15,082,443 Total revenue $ 24,320,121 $ 19,171,358 $ 26,216,515 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
CONCENTRATONS AND CREDIT RISK
CONCENTRATONS AND CREDIT RISK | 12 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATONS AND CREDIT RISK | NOTE 17 – CONCENTRATONS AND CREDIT RISK A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. As of June 30, 2021, and 2020, $ 1,118,118 879,040 As of June 30, 2021, three customers aggregately accounted for 45.2 17.7 14.5 13.0 73.0 22.7 20.0 17.1 13.2 As of June 30, 2021 and 2020, one related party supplier, Linsun, accounted for 29.2 % and 29.8 % of the Company’s total account payable, respectively. For the years ended June 30, 2021, 2020 and 2019, sales to the customers outside of China accounted for 43.7 49.0 42.5 32.0 9.1 6.9 27.6 6.5 4.4 28.1 13.5 5.6 For the year ended June 30, 2021, one related party Linsun accounted for 26.9 % of the Company’s total raw materials purchases, respectively. For the year ended June 30, 2020, two suppliers accounted for 35.1 % of the Company’s total raw materials purchases, with related party supplier Linsun and a third-party supplier accounted for 23.3 % and 11.8 % of the Company’s total raw material purchases, respectively. For the years ended June 30, 2019, no single supplier accounted for more than 10% of the Company’s total raw material purchases. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
RISK AND UNCERTAINTIES
RISK AND UNCERTAINTIES | 12 Months Ended |
Jun. 30, 2021 | |
Risk And Uncertainties | |
RISK AND UNCERTAINTIES | NOTE 18 – RISK AND UNCERTAINTIES The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operating results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations. The Company’s operations may be further affected by the ongoing outbreak of COVID-19 which in March 2020, had been declared as a pandemic by the World Health Organization. To reduce the spread of the COVID-19, the Chinese government has employed measures including city lockdowns, quarantines, travel restrictions, suspension of business activities and school closures. Due to difficulties resulting from the COVID-19 outbreak, including, but not limited to, the temporary closure of the Company’s factory and operations beginning in early February until late March 2020, limited support from the Company’s employees, delayed access to raw material supplies and inability to deliver products to customers on a timely basis, the Company’s business was negatively impacted. As of the date of this filing, the COVID-19 coronavirus outbreak in China appears to be controlled and most provinces and cities have resumed business activities under the guidance and support of the government. However, the extent of the future impact of COVID-19 is still highly uncertain and cannot be predicted as of the date the Company’s consolidated financial statements are released. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS Equity financing On July 19, 2021, the Company closed a securities purchase agreement with certain institutional investors for the sale of 2,178,120 1.82 3.4 174,249 1.82 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Dogness, HK Dogness, HK Jiasheng, Dongguan Dogness, Dongguan Jiasheng, Meijia, Dogness Overseas, Intelligence Guangzhou, Dogness Japan. Dogness Culture and Dogness Group. All inter-company balances and transactions have been eliminated upon consolidation. The Company’s consolidated financial statements reflect the operating results of the following entities: SCHEDULE OF ENTITIES Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal Activities Dogness (International) Corporation (“Dogness” or the “Company”) July 11, 2016 BVI Parent, 100 % Holding Company Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”) March 10, 2009 Hong Kong 100 % Trading Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”) July 12, 2007 Hong Kong 100 % Trading Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”) October 26, 2016 Dongguan, China 100 % Holding Company Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”) May 15, 2009 Dongguan, China 100 % Development and manufacturing of pet leash products Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) July 9,2009 Zhangzhou, China 100 % Manufacturing of pet leash products Dogness Overseas Ltd (“Dogness Overseas”) February 8, 2018 BVI 100 % Holding Company Dogness Group LLC (“Dogness Group”) January 23, 2018 Delaware, United States 100 % Pet products trading Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) July 6, 2018 Guangzhou, China 58 % Research and manufacturing of intelligent pet products Dogness Japan Co. Ltd. (“Dogness Japan”) February 5, 2019 Osaka, Japan 51 % Developing and expanding pet food market, disposed on November 28, 2020 Dogness Pet Culture (Dongguan) Co. Ltd. (Dogness Culture) December 14, 2018 Dongguan, China 51.2 % Developing and expanding pet food market |
Noncontrolling interests | Noncontrolling interests As of June 30, 2021, noncontrolling interests represent 42.0 48.8 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, inventories, advances to suppliers, useful lives of property, plant and equipment, intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, revenue recognition and realization of deferred tax assets. Actual results could differ from those estimates. |
Cash | Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Short-term Investments | Short-term Investments The Company’s short-term investments consist of wealth management financial products purchased from PRC banks with maturities within one month to twelve months. The banks invest the Company’s fund in certain financial instruments including money market funds, bonds or mutual funds, with rates of return on these investments ranging from 2.6 3.8 The Company had short-term investments of $ 549,895 and $ 3,551,968 as of June 30, 2021 and 2020, respectively. The Company recorded interest income of $ 48,058 243,661 536,345 |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for uncollectible balances amounted to $ 26,272 and $ 23,982 as of June 30, 2021 and 2020. |
Inventories, net | Inventories, net Inventories are stated at net realizable value using the weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Prepayment | Prepayment Prepayment primarily consists of advances to suppliers for purchasing of raw materials that have not been received. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. |
Property, plant and Equipment, net | Property, plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Useful life Buildings 10 50 Leasehold improvement Lesser of useful life and lease term Machinery equipment 5 10 Transportation vehicles 5 Office equipment and furniture 5 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of comprehensive income (loss) in other income or expenses. |
Intangible Assets, net | Intangible Assets, net Intangible assets consist primarily of a customized software system purchased from a third-party vendor, used for accounting and production management and land use rights. Under PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Intangible assets are stated at cost less accumulated amortization. Customized software systems are amortized using the straight-line method over the estimated useful economic life of 5 10 50 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Long-term Investments in Equity Investees | Long-term Investments in Equity Investees On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 321 “Investments—Equity Securities” (“ASC 321”). In accordance with ASC 321, equity securities over which the Company has no significant influence (generally less than a 20 Nanjing Rootaya Intelligence Technology Co., Ltd. (“Nanjing Rootaya”) is an entity incorporated on March 25, 2015 in the PRC and is primarily engaged in development of smart pet products. In July 2018, the Company entered into an equity investment agreement with Nanjing Rootaya to invest RMB 1.25 177,750 10 90 Dogness Network Technology Co., Ltd (“Dogness Network”) is an entity incorporated on November 17, 2017 in the PRC and is engaged in the development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Dogness Network to invest RMB 8.0 1,239,200 10 90 Linsun Smart Technology Co., Ltd (“Linsun”) is an entity incorporated on January 25, 2018 in the PRC and is engaged in development and sales of smart pet products. In November 2018, the Company entered into an equity investment agreement with Linsun to invest RMB 3.0 464,700 13 87 The purpose of entering into these equity investment agreements with Nanjing Rootaya, Dogness Network and Linsun was to establish cooperative business with these investees to jointly develop and distribute the Company’s intelligent smart pet products. The Company accounts for the above-mentioned investments using the measurement alternative in accordance with ASC 321. The Company records the cost method investments at historical cost and subsequently records any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees is evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the financial condition and operating performance of Nanjing Rootaya, it reported significant net loss and working capital deficit, . As a result, a full impairment loss of $ 177,750 As of June 30, 2021 and 2020, the Company’s long-term investments in equity investees amounted to $ 1,703,900 1,046,360 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, short-term investments, accounts receivable, inventories, prepayments and other current assets, accounts payable, advance from customers, taxes payable, accrued liabilities and other payable and short-term bank loans approximate their fair values because of the short-term nature of these instruments. The Company’s long-term investments are accounted for using the measurement alternative in accordance with ASC 321, which also approximate their recorded values. |
Long-lived assets impairment | Long-lived assets impairment The Company reviews long-lived assets, including definitive-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition below are the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. During the year ended June 30, 2020, the Company disposed approximately $ 1.2 281,680 No |
Leases | Leases The Company adopted ASU No. 2016-02—Leases (Topic 842) since July 1, 2019, using a modified retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases only at the date of adoption and does not require previously reported balances to be adjusted. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities on the consolidated balance sheets. The standard did not materially impact our consolidated net earnings and cash flows. |
Rental income | Rental income Rental revenues are recognized as earned in accordance with the terms of the respective lease agreement on a straight-line basis. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees and other fees are recognized as income when earned. Management reviews the tenant’s payment history and financial condition periodically in determining, in its judgment, whether any accrued rental income and unbilled rent receivable balances applicable to each specific property is collectable. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Revenue Recognition | Revenue Recognition On July 1, 2018, the Company adopted ASC 606 Revenue from Contracts with Customers, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not Revenue is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of contract terms occur with the transfer of title of the Company’s products to the customers. Net sale is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods to the wholesaler and retailers. The amount of consideration the Company expects to receive consists of the sales price adjusted for any incentives if applicable. Such incentives do not represent a standalone value and are accounted for as a reduction of revenue in accordance with ASC 606. For the years ended June 30, 2021, 2020 and 2019, the Company did not provide any sales incentives to its customers. Incidental promotional items that are immaterial in the context of the contract are recognized as expense. Fees charged to customers for shipping and handling are included in net sales and the related costs incurred by the Company are included in selling expenses. In applying judgment, the Company considered customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include any variable consideration. The Company’s revenue is primarily generated from the sales of pet products, including leashes, accessories, collars, harnesses and intelligent pet products, to wholesalers and retailers. Revenue is reported net of all value added taxes (“VAT”). The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. During the year ended June 30, 2021, the Company started to provide ribbon dyeing service to customers. The Company utilizes its manufacturing capability and color dyeing technology to provide dyeing solutions to customers and apply dyes or pigments on ribbons made of textile materials such as fibers, yarns and fabrics to achieve customer desired color fastness and quality. The Company recognizes revenue at the point when dyeing solutions and related services are rendered, products after dyeing are delivered and accepted by the customers. The Company also started pet grooming services and the revenue is recognized when the services are rendered. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of June 30, 2021 and 2020, other than accounts receivable and advances from customers, the Company had no other material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition (continued) Disaggregation of Revenues The Company disaggregates its revenue from contracts product and service types and geographic areas, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the years ended June 30, 2021, 2020 and 2019 are disclosed in Note 16 of these consolidated financial statements. |
Research and development costs | Research and development costs Research and development expenses include costs directly attributable to the conduct of research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. |
Income Taxes | Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income or expenses in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded . Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2021, the Company had income tax payable of approximately $ 4.3 million, primarily related to the unpaid income tax in China. Based on statutory surcharge for overdue tax payment, the Company recorded surcharge of $ 669,650 as part of the income tax provision as reflected in the consolidated statements of comprehensive income (loss) for the year ended June 30, 2021. The Company expects to settle the income tax liabilities in fiscal 2022 when the 2021 annual income tax return is assessed by the local tax authority. As of June 30, 2021, all of the Company’s tax returns of its PRC Subsidiaries, Hong Kong subsidiaries, and U.S subsidiary remain open for statutory examination by relevant tax authorities. |
Value added tax (“VAT”) | Value added tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 2018, VAT rate was lowered to 16%, and starting from April 2019, VAT rate was further lowered to 13%), depending on the type of products sold. Since significant amount of the Company’s products are exported to the U.S. and Europe, the Company is eligible for VAT refunds when the Company completes all the required tax filing procedures. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Earnings (loss) per Share | Earnings (loss) per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Share-Based compensation | Share-Based compensation The Company follows the provisions of ASC 718, “Compensation - Stock Compensation,” which establishes the accounting for employee stock-based awards. For employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. |
Foreign Currency Translation | Foreign Currency Translation The Company’s principal country of operations is the PRC. The financial position and results of the operations of HK Dogness, HK Jiasheng, Dongguan Dogness, Dongguan Jiasheng, Meijia, Intelligence Guangzhou and Dogness Culture are determined using RMB, the local currency, as the functional currency. Dogness Japan uses Japanese Yen as the functional currency, while Dogness Overseas and Dogness Group use U.S Dollar as their functional currency. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of comprehensive income (loss). The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATES June 30, 2021 June 30, 2020 June 30, 2019 Year-end spot rate US$1=RMB 6.4566 US$1=JPY 111.1 US$1=RMB 7.0721 US$1=JPY 107.5 US$1=RMB 6.8657 US$1=JPY 107.5 Average rate US$1=RMB 6.6221 US$1=JPY 106.6 US$1=RMB 7.0323 US$1=JPY 107.5 US$1=RMB 6.8226 US$1=JPY 111.1 DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currency. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassification of negative VAT tax payable as VAT tax recoverable, segregation of capital expenditure on construction-in-progress out of capital expenditure on property, plant and equipment, renal income from related parties, and the classification of revenue segments. These reclassifications had no effect on the reported revenues, net income (loss) and cash flows. DOGNESS (INTERNATIONAL) CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of ASU 2019-12 does not have a material impact on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company is currently evaluating the effect of adopting this ASU on the Company’s financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. As revised, ASC 310-20-35-33 requires that, for each reporting period, to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (i.e., the premium) should be amortized to the next call date, unless the guidance in ASC 310-20-35-26 is applied to consider estimated prepayments. For purposes of this guidance, the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. If there is no remaining premium or if there are no further call dates, the entity should reset the effective yield using the payment terms of the debt security. For public business entities, ASU 2020-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. For all other entities, ASU 2020-08 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the effect of adopting this ASU on the Company’s financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ENTITIES | The Company’s consolidated financial statements reflect the operating results of the following entities: SCHEDULE OF ENTITIES Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal Activities Dogness (International) Corporation (“Dogness” or the “Company”) July 11, 2016 BVI Parent, 100 % Holding Company Dogness (Hongkong) Pet’s Products Co., Limited (“HK Dogness”) March 10, 2009 Hong Kong 100 % Trading Jiasheng Enterprise (Hong Kong) Co., Limited (“HK Jiasheng”) July 12, 2007 Hong Kong 100 % Trading Dogness Intelligence Technology (Dongguan) Co., Ltd. (“Dongguan Dogness”) October 26, 2016 Dongguan, China 100 % Holding Company Dongguan Jiasheng Enterprise Co., Ltd. (“Dongguan Jiasheng”) May 15, 2009 Dongguan, China 100 % Development and manufacturing of pet leash products Zhangzhou Meijia Metal Product Co., Ltd (“Meijia”) July 9,2009 Zhangzhou, China 100 % Manufacturing of pet leash products Dogness Overseas Ltd (“Dogness Overseas”) February 8, 2018 BVI 100 % Holding Company Dogness Group LLC (“Dogness Group”) January 23, 2018 Delaware, United States 100 % Pet products trading Dogness Intelligence Technology Co., Ltd. (“Intelligence Guangzhou”) July 6, 2018 Guangzhou, China 58 % Research and manufacturing of intelligent pet products Dogness Japan Co. Ltd. (“Dogness Japan”) February 5, 2019 Osaka, Japan 51 % Developing and expanding pet food market, disposed on November 28, 2020 Dogness Pet Culture (Dongguan) Co. Ltd. (Dogness Culture) December 14, 2018 Dongguan, China 51.2 % Developing and expanding pet food market |
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE | SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Useful life Buildings 10 50 Leasehold improvement Lesser of useful life and lease term Machinery equipment 5 10 Transportation vehicles 5 Office equipment and furniture 5 |
SCHEDULE OF CURRENCY EXCHANGE RATES | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATES June 30, 2021 June 30, 2020 June 30, 2019 Year-end spot rate US$1=RMB 6.4566 US$1=JPY 111.1 US$1=RMB 7.0721 US$1=JPY 107.5 US$1=RMB 6.8657 US$1=JPY 107.5 Average rate US$1=RMB 6.6221 US$1=JPY 106.6 US$1=RMB 7.0323 US$1=JPY 107.5 US$1=RMB 6.8226 US$1=JPY 111.1 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 As of June 30, 2021 2020 Accounts receivable from third-party customers $ 2,393,598 $ 1,940,822 Less: allowance for doubtful accounts (26,272 ) (23,982 ) Total accounts receivable from third-party customers, net 2,367,326 1,916,840 Add: accounts receivable - related parties 515,193 559,465 Total accounts receivable, net $ 2,882,519 $ 2,476,305 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2021 June 30, 2020 Beginning balance $ 23,982 $ 128,106 Additions - 755,472 Write-off - (856,383 ) Foreign currency translation adjustments 2,290 (3,213 ) Ending balance $ 26,272 $ 23,982 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventories consisted of the following: SCHEDULE OF INVENTORY 2021 2020 As of June 30, 2021 2020 Raw materials $ 218,090 $ 140,745 Work in process 1,082,350 677,301 Finished goods 3,054,909 3,201,205 Inventory, gross 4,355,349 4,019,251 Less: inventory allowance (152,186 ) (1,158,551 ) Inventory, net $ 4,203,163 $ 2,860,700 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT, NET | Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET 2021 2020 As of June 30, 2021 2020 Buildings $ 28,128,416 $ 25,532,908 Machinery and equipment 7,524,170 6,698,443 Office equipment and furniture 1,296,201 765,597 Automobiles 754,764 810,156 Leasehold improvements 41,095,980 5,028,382 Construction-in-progress (“CIP”) (1) 597,594 10,647,107 Total 79,397,125 49,482,593 Less: accumulated depreciation (9,214,249 ) (5,668,986 ) Impairment of fixed assets (306,837 ) (280,095 ) Property, plant and equipment, net $ 69,876,039 $ 43,533,512 |
SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES | As of June 30, 2021, future minimum capital expenditures payable on the Company’s construction-in-progress projects are estimated as follows: SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES Capital expenditure Capital expenditure Total 2022 $ 7,217,370 $ 106,718 $ 7,324,088 2023 1,247,708 - 1,247,708 2024 929,400 - 929,400 2025 774,500 - 774,500 2026 634,365 - 634,365 Total $ 10,803,343 $ 106,718 $ 10,910,061 Capital expenditure Capital expenditure payable Total 2022 $ 2,286,454 $ 58,141 $ 2,344,595 2023 1,247,708 - 1,247,708 2024 929,400 - 929,400 2025 774,500 - 774,500 2026 634,365 - 634,365 Total $ 5,872,427 $ 58,141 $ 5,930,568 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS, NET | Net intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS, NET 2021 2020 As of June 30, 2021 2020 Software $ 232,764 $ 212,478 Land use right 2,352,331 2,147,318 Less: accumulated amortization (361,810 ) (254,993 ) Intangible assets, net $ 2,223,285 $ 2,104,803 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases | |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES | Supplemental balance sheet information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION June 30, June 30, June 30, June 30, Right-of-use assets, net $ 5,170,395 $ 5,123,898 Operating lease liabilities - current $ 171,803 $ 172,716 Operating lease liabilities - non-current 1,123,060 1,200,299 Total operating lease liabilities $ 1,294,863 $ 1,373,015 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2021: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Remaining lease term and discount rate: Weighted average remaining lease term (years) 14.58 Weighted average discount rate 5.79 % |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES | The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2021: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Remaining lease term and discount rate: Weighted average remaining lease term (years) 14.58 Weighted average discount rate 5.79 % |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | The following is a schedule of maturities of lease liabilities as of June 30,2021: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Twelve months ending June 30, 2022 $ 240,505 2023 246,569 2024 264,105 2025 264,556 2026 271,226 Thereafter 244,817 Total future minimum lease payments 1,531,778 Total future minimum lease payments 1,531,778 Less: imputed interest 236,915 Total $ 1,294,863 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM BANK LOANS | Short-term loans consisted of the following: SCHEDULE OF SHORT-TERM BANK LOANS As of June 30, 2021 2020 Bank of Communications of China (“BCC”): Effective interest rate at 5.655 $ - $ 2,545,200 Industrial and Commercial Bank of China (“ICBC”): Effective interest rate at 5.655 - 1,696,800 Cathay Bank Effective interest rate at 4.25 704,446 900,000 Total $ 704,446 $ 5,142,000 (1) In August 2019, Dongguan Jiasheng entered into two loan agreements with BCC Dongguan Branch to borrow total of RMB 18 2.5 The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. 2.1 8.2 (2) On August 9, 2019, Dongguan Jiasheng entered into a loan agreement with ICBC to borrow RMB 12 1.7 The loan bears a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.345 basis points. (3) On February 6, 2020, one of the Company’s U.S. subsidiary Dogness Group, obtained a line of credit from Cathay Bank, pursuant to which, Dogness Group has the availability to borrow a maximum $ 1.2 704,446 |
SCHEDULE OF LONG-TERM LOAN | Long-term loan consisted of the following: SCHEDULE OF LONG-TERM LOAN As of June 30, 2021 2020 Southwestern National Bank Paycheck Protection Program Loan (PPP) Loan $ - $ 73,300 Dongguan Rural Commercial Bank Effective interest rate at 6.15 6.55 7,354,024 - Total 7,354,024 73,300 Less: current portion of long-term loans 796,416 - Long-term loans $ 6,557,608 $ 73,300 |
SCHEDULE OF BANK LOANS REPAYMENT | As of June 30, 2021, the Company’s short-term and long-term loans totaled approximately $ 8.0 SCHEDULE OF BANK LOANS REPAYMENT Twelve months ending June 30, Repayment 2022 $ 1,500,862 2023 1,438,153 2024 3,320,220 2025 402,638 2026 429,512 2027 458,182 2028 488,734 2029 20,169 Total $ 8,058,470 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF RECONCILIATION EFFECTIVE TAX | The following table reconciles the statutory rate to the Company’s effective tax: SCHEDULE OF RECONCILIATION EFFECTIVE TAX 2021 2020 2019 For the years ended June 30, 2021 2020 2019 Income tax expense computed based on PRC statutory rate $ 485,121 $ (2,093,097 ) $ 445,868 Effect of rate differential for Hong Kong and other outside PRC entities (173,905 ) (24,016 ) (229,893 ) Effect of PRC preferential tax rate (117,514 ) 515,416 (34,453 ) Change in valuation allowance (223,729 ) 1,635,324 - Surcharge on unpaid income tax 669,650 - - Permanent difference 30,030 130,910 198,774 Refund of prior years’ tax (28,193 ) - - Effective tax $ 641,460 $ 164,537 $ 380,296 |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | The provision for income tax consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) 2021 2020 2019 For the years ended June 30, 2021 2020 2019 Current income tax provision $ 1,119,776 $ 25,423 $ 614,622 Deferred income tax provision (benefit) (478,316 ) 139,114 (234,326 ) Total income tax expense $ 641,460 $ 164,537 $ 380,296 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The components of deferred tax assets as of June 30, 2021 and 2020 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES June 30, 2021 June 30, 2020 Deferred tax assets: Net operating losses $ 1,223,699 $ 1,515,308 Assets impairment reserve 471,634 233,759 Depreciation and others 56,642 - Valuation allowance (1,146,317 ) (1,633,837 ) Deferred tax assets, net $ 605,658 $ 115,230 |
SCHEDULE OF TAXES PAYABLE | The Company’s taxes payable consists of the following: SCHEDULE OF TAXES PAYABLE June 30, 2021 June 30, 2020 Corporate income tax payable $ 4,256,487 $ 2,813,014 Other tax payable 186,705 1,397 Total taxes payable $ 4,443,192 $ 2,814,411 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATIONSHIP OF RELATED PARTIES | The relationship of related parties is summarized as follow: SCHEDULE OF RELATIONSHIP OF RELATED PARTIES Name of Related Party Relationship to the Company Silong Chen Chief Executive Officer; Chairman of the Board of Directors Junqiang Chen and Caiyuan He Relatives of Mr. Silong Chen Linsun Smart Technology Co., Ltd (“Linsun”) Equity investee - 10 Dogness Network Technology Co., Ltd (“Dogness Network”) Equity Investee - 13 Guangdong Dogness Biotechnology Co., Ltd. (“Guangdong Dogness”) Relate to one of the Company’s shareholders Guangdong Dogness Technology Co., Ltd. (“Dogness Technology”) The legal representative is Junqiang Chen, the relative of Mr. Silong Chen |
SCHEDULE OF DUE FROM RELATED PARTIES | As of June 30, 2021 and 2020, due from related parties consist of the following: SCHEDULE OF DUE FROM RELATED PARTIES As of June 30, 2021 2020 Linsun $ 32,118 $ - Dogness Network 410 - 32,528 - |
SCHEDULE OF DUE TO RELATED PARTIES | As of June 30, 2021 and 2020, due to related parties consist of the following: SCHEDULE OF DUE TO RELATED PARTIES As of June 30, 2021 2020 Mr. Silong Chen $ 2,001,940 $ 25,462 |
SCHEDULE OF REVENUE FROM RELATED PARTIES | Revenue from related parties consisted of the following: SCHEDULE OF REVENUE FROM RELATED PARTIES For the years ended June 30, Name 2021 2020 2019 Linsun $ - $ 72,987 $ 185,126 Dogness Network 1,207,686 836,664 143,441 Total $ 1,207,686 $ 909,651 $ 328,567 |
SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES | Accounts receivable from related party consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES As of June 30, Accounts receivable - related parties: 2021 2020 -Dogness Network $ 515,193 $ 559,465 Total $ 515,193 $ 559,465 |
SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES | Accounts payables to related parties consisted of the following SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES As of June 30, Accounts payable - related parties: 2021 2020 -Linsun $ 350,199 $ 301,555 -Dogness Network - 3,660 Total $ 350,199 $ 305,215 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED | The following table presents a reconciliation of basic and diluted net income (loss) per share: SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED 2021 2020 2019 For the years ended June 30, 2021 2020 2019 Net income (loss) attributable to the Company $ 1,512,364 $ (8,441,559 ) $ 1,421,781 Weighted average number of common shares outstanding - Basic 27,499,367 25,913,631 25,913,631 Dilutive securities -unexercised warrants and options 55,444 - 27,975 Weighted average number of common shares outstanding – diluted 27,554,811 25,913,631 25,941,606 Earnings (loss) per share - Basic $ 0.05 $ (0.33 ) $ 0.05 Earnings (loss) per share – Diluted $ 0.05 $ (0.33 ) $ 0.05 |
OPTIONS (Tables)
OPTIONS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | As of June 30, 2021, the Company had 490,000 0.03 6,659 0.03 SCHEDULE OF STOCK OPTION ACTIVITY Number of Weighted Average Weighted Average Remaining Life in Years Outstanding, June 30, 2018 640,000 $ 1.50 1.81 Exercisable, June 30, 2018 90,000 $ 1.50 2.14 Granted - - - Cancelled (160,000 ) - - Exercised - - - Outstanding June 30, 2019 480,000 $ 1.50 1.22 Exercisable, June 30, 2019 270,000 $ 1.50 1.14 Outstanding June 30, 2019 480,000 $ 1.50 1.22 Exercisable, June 30, 2019 270,000 $ 1.50 1.14 Granted 160,000 - - Cancelled (140,000 ) - - Exercised - - - Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Outstanding June 30, 2020 500,000 $ 1.50 0.35 Exercisable, June 30, 2020 413,337 $ 1.50 0.19 Granted - - - Cancelled - - - Exercised (10,000 ) - - Outstanding June 30, 2021 490,000 $ 1.50 0.03 Exercisable, June 30, 2020 483,341 $ 1.50 0.03 |
SEGMENT (Tables)
SEGMENT (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUES BY PRODUCT CATEGORIES | The summary of total revenues by product categories for the years ended June 30, 2021, 2020 and 2019 was as follows: SCHEDULE OF REVENUES BY PRODUCT CATEGORIES For the years ended June 30, Products 2021 2020 2019 Traditional pet products $ 14,331,492 $ 13,208,764 $ 23,897,528 Intelligent pet products 7,801,070 4,328,918 2,103,523 Climbing hooks and others 1,340,686 1,633,676 215,464 Total revenue from product sales 23,473,248 19,171,358 26,216,515 Services: Dyeing services 817,145 - - Other services 29,728 - - Total revenue from service 846,873 - - Total revenue $ 24,320,121 $ 19,171,358 $ 26,216,515 |
SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION | Geographic information about the revenues, which are classified based on customers, is set out as follows: SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION For the years ended June 30, Geographic location 2021 2020 2019 Sales to international markets $ 10,627,253 $ 9,399,228 $ 11,134,072 Sales in China domestic market 13,692,868 9,772,130 15,082,443 Total revenue $ 24,320,121 $ 19,171,358 $ 26,216,515 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) $ / shares in Units, ¥ in Thousands, ¥ in Millions | Nov. 28, 2020USD ($) | Nov. 28, 2020JPY (¥) | Jan. 15, 2020USD ($) | Jan. 15, 2020CNY (¥) | Mar. 16, 2018USD ($) | Mar. 16, 2018CNY (¥) | Dec. 18, 2017USD ($)$ / sharesshares | Jun. 30, 2021USD ($)shares | Jun. 30, 2021CNY (¥) | Nov. 27, 2020USD ($) | Jun. 30, 2020USD ($)shares | Jan. 15, 2020CNY (¥) | Feb. 05, 2019USD ($) | Dec. 14, 2018USD ($) | Dec. 14, 2018CNY (¥) | Jul. 06, 2018USD ($) | Jul. 06, 2018CNY (¥) | Apr. 26, 2017shares | Jan. 09, 2017 | Nov. 24, 2016 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Common stock, shares outstanding | shares | 29,624,814 | 25,913,631 | 15,000,000 | |||||||||||||||||
Assets | $ 93,845,408 | $ 63,551,261 | ||||||||||||||||||
Liabilities | 28,943,003 | $ 12,043,333 | ||||||||||||||||||
Gain (Loss) on Disposition of Business | 5,162 | |||||||||||||||||||
Long Kai (Shenzheng) Industrial Co Ltd [Member] | Share Purchase Agreement [Member] | RMB [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Business Combination, Consideration Transferred | ¥ | ¥ 71,000 | |||||||||||||||||||
Dogness Intelligence Technology Co Ltd [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Banking Regulation, Total Capital, Actual | $ 12,400,000 | |||||||||||||||||||
Dogness Intelligence Technology Co Ltd [Member] | RMB [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Banking Regulation, Total Capital, Actual | ¥ | ¥ 80,000 | |||||||||||||||||||
Dogness Japan Co Ltd [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Business Combination, Consideration Transferred | $ 31,092 | |||||||||||||||||||
[custom:DescriptionOnDisposition] | Immediate before the disposition, Dogness Japan’s total assets were $91,625, accounting for only 0.1% of the Company’s consolidated total assets; and total liabilities were approximately $32,144, accounting for only 0.1% of the Company’s consolidated total liabilities. | Immediate before the disposition, Dogness Japan’s total assets were $91,625, accounting for only 0.1% of the Company’s consolidated total assets; and total liabilities were approximately $32,144, accounting for only 0.1% of the Company’s consolidated total liabilities. | ||||||||||||||||||
Assets | $ 91,625 | |||||||||||||||||||
Liabilities | $ 32,144 | |||||||||||||||||||
Dogness Japan Co Ltd [Member] | JPY [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Business Combination, Consideration Transferred | ¥ | ¥ 3.2 | |||||||||||||||||||
Dongguan Jiasheng [Member] | Dongguan Dogness [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 100.00% | |||||||||||||||||||
Dongguan Jiasheng [Member] | Dogness Intelligence Technology Co Ltd [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 58.00% | 58.00% | ||||||||||||||||||
HK Dogness [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 100.00% | |||||||||||||||||||
Dogness [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 100.00% | |||||||||||||||||||
Dogness Intelligence Technology Co Ltd [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 100.00% | |||||||||||||||||||
Dogness Intelligence Technology Co Ltd [Member] | TwoUnrelated Entities [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 42.00% | 42.00% | ||||||||||||||||||
Zhangzhou Meijia Metal Product Co Ltd [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 100.00% | 100.00% | ||||||||||||||||||
Business Combination, Consideration Transferred | $ 11,000,000 | $ 18,400,000 | ||||||||||||||||||
Zhangzhou Meijia Metal Product Co Ltd [Member] | RMB [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Business Combination, Consideration Transferred | ¥ | ¥ 71,000 | ¥ 118,500 | ||||||||||||||||||
Zhangzhou Meijia Metal Product Co Ltd [Member] | Share Purchase Agreement [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Acquisition Cost Ratio | 100.00% | 100.00% | ||||||||||||||||||
Business Combination, Consideration Transferred | $ 11,000,000 | |||||||||||||||||||
Dogness Japan Co Ltd [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 51.00% | 51.00% | 51.00% | |||||||||||||||||
Investments | $ 142,000 | |||||||||||||||||||
Dogness Japan Co Ltd [Member] | Unrelated Individual [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 49.00% | |||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | Mr Silong Chen [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 51.20% | 51.20% | ||||||||||||||||||
Business Combination, Consideration Transferred | $ 790,000 | |||||||||||||||||||
Banking Regulation, Total Capital, Actual | $ 760,000 | |||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | Two Third Parties [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 48.80% | 48.80% | ||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | RMB [Member] | Mr Silong Chen [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Business Combination, Consideration Transferred | ¥ | ¥ 5,120 | |||||||||||||||||||
Banking Regulation, Total Capital, Actual | ¥ | ¥ 4,880 | |||||||||||||||||||
Common Class B [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Common stock, shares outstanding | shares | 9,069,000 | 9,069,000 | ||||||||||||||||||
Common Class A [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Common stock, shares outstanding | shares | 20,555,814 | 16,844,631 | ||||||||||||||||||
Common Class A [Member] | IPO [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Number of shares issued under public offering | shares | 10,913,631 | |||||||||||||||||||
Shares issued, price per share | $ / shares | $ 5 | |||||||||||||||||||
Proceeds from issuance or sale of equity | $ 54,600,000 | |||||||||||||||||||
Proceeds from issuance of common stock | $ 50,200,000 | |||||||||||||||||||
Ms. Yunhao Chen, the Chief Financial Officer of the Company [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Entity incorporation, state country name | British Virgin Islands | British Virgin Islands | ||||||||||||||||||
Entity incorporation, date of incorporation | Jul. 11, 2016 | Jul. 11, 2016 | ||||||||||||||||||
Shareholder [Member] | Dongguan Jiasheng [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 100.00% | |||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Entity incorporation, date of incorporation | Dec. 14, 2018 | Dec. 14, 2018 | ||||||||||||||||||
Banking Regulation, Total Capital, Actual | $ 1,500,000 | |||||||||||||||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | RMB [Member] | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Banking Regulation, Total Capital, Actual | ¥ | ¥ 10,000 |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Liquidity | |||
Cash and Cash Equivalents, at Carrying Value | $ 4,912,442 | $ 1,266,873 | |
Net Cash Provided by (Used in) Operating Activities | $ 3,752,232 | $ (2,212,271) | $ (1,268,951) |
[custom:FutureMinimumCapitalExpenditureCommitmentDescription] | the Company had future minimum capital expenditure payable on its construction-in-progress projects of approximately $7.3 million within the next twelve months and additional $3.6 million for the next five years. | ||
Future minimum capital expenditure. | $ 7,300,000 | ||
Additional construction in progress. | 3,600,000 | ||
[custom:UnpaidTaxLiabilities-0] | $ 4,400,000 |
SCHEDULE OF ENTITIES (Details)
SCHEDULE OF ENTITIES (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Dogness International Corporation [Member] | |
Date of Incorporation | Jul. 11, 2016 |
Place of Incorporation | BVI |
% of Ownership | 100.00% |
Principal Activities | Holding Company |
Dogness Hong Kong Pet Products Co Limited [Member] | |
Date of Incorporation | Mar. 10, 2009 |
Place of Incorporation | Hong Kong |
% of Ownership | 100.00% |
Principal Activities | Trading |
Jiasheng Enterprise Hong Kong Co Limited [Member] | |
Date of Incorporation | Jul. 12, 2007 |
Place of Incorporation | Hong Kong |
% of Ownership | 100.00% |
Principal Activities | Trading |
Dogness Intelligence Technology Dongguan Co Ltd [Member] | |
Date of Incorporation | Oct. 26, 2016 |
Place of Incorporation | Dongguan, China |
% of Ownership | 100.00% |
Principal Activities | Holding Company |
Dongguan Jiasheng Enterprise Co., Ltd [Member] | |
Date of Incorporation | May 15, 2009 |
Place of Incorporation | Dongguan, China |
% of Ownership | 100.00% |
Principal Activities | Development and manufacturing of pet leash products |
Zhangzhou Meijia Metal Product Co Ltd [Member] | |
Date of Incorporation | Jul. 9, 2009 |
Place of Incorporation | Zhangzhou, China |
% of Ownership | 100.00% |
Principal Activities | Manufacturing of pet leash products |
Dogness Overseas Ltd [Member] | |
Date of Incorporation | Feb. 8, 2018 |
Place of Incorporation | BVI |
% of Ownership | 100.00% |
Principal Activities | Holding Company |
Dogness Group Llc [Member] | |
Date of Incorporation | Jan. 23, 2018 |
Place of Incorporation | Delaware, United States |
% of Ownership | 100.00% |
Principal Activities | Pet products trading |
Dogness Intelligence Technology Co Ltd [Member] | |
Date of Incorporation | Jul. 6, 2018 |
Place of Incorporation | Guangzhou, China |
% of Ownership | 58.00% |
Principal Activities | Research and manufacturing of intelligent pet products |
Dogness Japan Co Ltd [Member] | |
Date of Incorporation | Feb. 5, 2019 |
Place of Incorporation | Osaka, Japan |
% of Ownership | 51.00% |
Principal Activities | Developing and expanding pet food market, disposed on November 28, 2020 |
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | |
Date of Incorporation | Dec. 14, 2018 |
Place of Incorporation | Dongguan, China |
% of Ownership | 51.20% |
Principal Activities | Developing and expanding pet food market |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 50 years |
Leaseholds and Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Lesser of useful life and lease term |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
SCHEDULE OF CURRENCY EXCHANGE R
SCHEDULE OF CURRENCY EXCHANGE RATES (Details) | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Year-End Spot Rate : US$1 Exchange Rate=RMB [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 6.4566 | 7.0721 | 6.8657 |
Year-End Spot Rate : US$1 Exchange Rate= JPY [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 111.1 | 107.5 | 107.5 |
Average Rate US$1=RMB [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 6.6221 | 7.0323 | 6.8226 |
Average Rate US$1=JPY [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Foreign currency exchange rate, translation | 106.6 | 107.5 | 111.1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Nov. 30, 2018 | Jul. 31, 2018 | Jul. 06, 2018 | Jul. 02, 2018 | |
Property, Plant and Equipment [Line Items] | |||||||
Short-term Investments | $ 549,895 | $ 3,551,968 | |||||
Interest income | 48,058 | 243,661 | $ 536,345 | ||||
Accounts Receivable, Allowance for Credit Loss | 26,272 | 23,982 | |||||
Long-term investments | 1,703,900 | 1,046,360 | |||||
Loss on disposal of equipment and machinery | 1,200,000 | ||||||
Long-lived assets impairment | 281,680 | ||||||
Income Tax Examination, Likelihood of Unfavorable Settlement | The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded | ||||||
Income Tax Expense (Benefit) | $ 641,460 | 164,537 | $ 380,296 | ||||
Value added taxes rate description | Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 2018, VAT rate was lowered to 16%, and starting from April 2019, VAT rate was further lowered to 13%), depending on the type of products sold. | ||||||
PRC Statutory [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Accrued Income Taxes | $ 4,300,000 | ||||||
Income Tax Expense (Benefit) | $ 669,650 | ||||||
Equity Investment Agreement [Member] | Three Unrelated Shareholders [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership percentage | 90.00% | ||||||
Land [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Intangible asset, useful life | 50 years | ||||||
Minimum [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Investments, rate of percentage | 2.60% | ||||||
Minimum [Member] | Software [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Intangible asset, useful life | 5 years | ||||||
Maximum [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Investments, rate of percentage | 3.80% | ||||||
Ownership percentage | 20.00% | ||||||
Maximum [Member] | Software [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Intangible asset, useful life | 10 years | ||||||
Dogness Intelligence Technology Co Ltd [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Noncontrolling interest rate | 42.00% | ||||||
Ownership percentage | 58.00% | ||||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Noncontrolling interest rate | 48.80% | ||||||
Nanjing Rootaya Intelligence Technology Co Ltd [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Impairment loss on investment | $ 177,750 | ||||||
Nanjing Rootaya Intelligence Technology Co Ltd [Member] | Equity Investment Agreement [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership percentage | 10.00% | ||||||
Long-term investments | $ 177,750 | ||||||
Nanjing Rootaya Intelligence Technology Co Ltd [Member] | Equity Investment Agreement [Member] | RMB [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Long-term investments | $ 1,250,000 | ||||||
Dogness Network Technology Co Ltd [Member] | Equity Investment Agreement [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership percentage | 10.00% | ||||||
Long-term investments | $ 1,239,200 | ||||||
Dogness Network Technology Co Ltd [Member] | Equity Investment Agreement [Member] | Unrelated Shareholder [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership percentage | 90.00% | ||||||
Dogness Network Technology Co Ltd [Member] | Equity Investment Agreement [Member] | RMB [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Long-term investments | $ 8,000,000 | ||||||
Linsun Smart Technology Co Ltd [Member] | Equity Investment Agreement [Member] | RMB [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Long-term investments | $ 3,000,000 | ||||||
Linsun Smart Technology Co Ltd [Member] | Equity Investment Agreement [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership percentage | 13.00% | ||||||
Long-term investments | $ 464,700 | ||||||
Linsun Smart Technology Co Ltd [Member] | Equity Investment Agreement [Member] | Three Unrelated Shareholders [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership percentage | 87.00% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Receivables [Abstract] | ||
Accounts receivable from third-party customers | $ 2,393,598 | $ 1,940,822 |
Less: allowance for doubtful accounts | (26,272) | (23,982) |
Total accounts receivable from third-party customers, net | 2,367,326 | 1,916,840 |
Add: accounts receivable - related parties | 515,193 | 559,465 |
Total accounts receivable, net | $ 2,882,519 | $ 2,476,305 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Receivables [Abstract] | ||
Beginning balance | $ 23,982 | $ 128,106 |
Additions | 755,472 | |
Write-off | (856,383) | |
Foreign currency translation adjustments | 2,290 | (3,213) |
Ending balance | $ 26,272 | $ 23,982 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details Narrative) - USD ($) | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 16, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for bad debt | $ 755,472 | $ 90,077 | ||
Allowance for doubtful accounts | 26,272 | 23,982 | ||
Allowance for doubtful accounts written off | 0 | $ 856,383 | ||
Subsequent Event [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable related parties | $ 404,504 | |||
Linshuiand Dogness Newwork [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable related parties | $ 515,193 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Third Party Customers [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk, Percentage | 95.00% | |||
Third Party Customers [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable related parties | $ 2,300,000 | |||
Third Party Customers [Member] | RMB [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable related parties | $ 14,700,000 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 218,090 | $ 140,745 |
Work in process | 1,082,350 | 677,301 |
Finished goods | 3,054,909 | 3,201,205 |
Inventory, gross | 4,355,349 | 4,019,251 |
Less: inventory allowance | (152,186) | (1,158,551) |
Inventory, net | $ 4,203,163 | $ 2,860,700 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | ||
Inventory, LIFO Reserve | $ 117,703 | $ 1,165,044 |
[custom:ChangeInInventoryReserve] | 1,200,000 | |
Inventory Write-down | $ 152,186 | $ 1,158,551 |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Buildings | $ 28,128,416 | $ 25,532,908 | |
Machinery and equipment | 7,524,170 | 6,698,443 | |
Office equipment and furniture | 1,296,201 | 765,597 | |
Automobiles | 754,764 | 810,156 | |
Leasehold improvements | 41,095,980 | 5,028,382 | |
Construction-in-progress (“CIP”) (1) | [1] | 597,594 | 10,647,107 |
Total | 79,397,125 | 49,482,593 | |
Less: accumulated depreciation | (9,214,249) | (5,668,986) | |
Impairment of fixed assets | 306,837 | 280,095 | |
Property, plant and equipment, net | $ 69,876,039 | $ 43,533,512 | |
[1] | The Company’s CIP primarily consisted of the following: On March 16, 2018, the Company acquired 100% of the equity interests in Meijia from its original shareholder, for a total cash consideration of RMB 71.0 million ($11.0 million) (See Note 1). After the acquisition, the Company started building its own facilities and office spaces to expand the production capacity in order to fulfill increased customer orders. Total budgeted capital expenditure to bring Meijia manufacturing facility into use was originally estimated to be completed at a cost of RMB110 million ($17.0 million). The actual costs have been adjusted based on additional works required for waterproofing, sewage pipeline and hazardous waste leakage prevention. As a result, total actual costs incurred as of June 30, 2021, amounted to RMB118.5 million ($18.4 million). Meijia plant started test operations in August 2019, and has started normal production since December 2019 upon passing the final inspection conducted by the local government. Meijia plant has reached its fully production capacity and all CIP has been transferred to fixed assets as of June 30, 2021. In addition, the Company’s subsidiary Dongguan Jiasheng also had a capital project to build new manufacturing and operating facilities, which include warehouse, workshops, office building, security gate, employee apartment building, electrical transformer station and exhibition hall, etc. The total budget is approximately RMB 230.8 million ($35.8 million). As of June 30, 2021, the Company had substantially completed this project and transferred most of the related CIP to fixed assets. As of June 30, 2021, the Company has made total payments of approximately RMB 161.3 million ($25.0 million) in connection to this project, which resulted in future minimum capital expenditure payments of RMB 69.5 million ($10.8 million). As of June 30, 2021, the Company recorded approximately $10.7 million unpaid costs in connection to this CIP project in accrued liabilities and other payable.. |
SCHEDULE OF PROPERTY AND EQUI_3
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) (Parenthetical) - Zhangzhou Meijia Metal Product Co Ltd [Member] ¥ in Millions, $ in Millions | Mar. 16, 2018USD ($) | Mar. 16, 2018CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) |
Restructuring Cost and Reserve [Line Items] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 100.00% | 100.00% | ||
Business Combination, Consideration Transferred | $ | $ 11 | $ 18.4 | ||
Payments to Acquire Machinery and Equipment | $ | $ 17 | |||
RMB [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business Combination, Consideration Transferred | ¥ | ¥ 71 | ¥ 118.5 | ||
Payments to Acquire Machinery and Equipment | ¥ | ¥ 110 |
SCHEDULE OF FUTURE MINIMUM CAPI
SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES (Details) - USD ($) | Oct. 16, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
2022 | $ 7,324,088 | ||
2023 | 1,247,708 | ||
2024 | 929,400 | ||
2025 | 774,500 | ||
2026 | 634,365 | ||
Total | 10,910,061 | ||
Subsequent Event [Member] | |||
2022 | $ 2,344,595 | ||
2023 | 1,247,708 | ||
2024 | 929,400 | ||
2025 | 774,500 | ||
2026 | 634,365 | ||
Total | $ 5,900,000 | 5,930,568 | |
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||
2022 | 7,217,370 | ||
2023 | 1,247,708 | ||
2024 | 929,400 | ||
2025 | 774,500 | ||
2026 | 634,365 | ||
Total | 10,803,343 | ||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Subsequent Event [Member] | |||
2022 | 2,286,454 | ||
2023 | 1,247,708 | ||
2024 | 929,400 | ||
2025 | 774,500 | ||
2026 | 634,365 | ||
Total | 5,872,427 | ||
Dogness Culture [Member] | |||
2022 | 106,718 | ||
2023 | |||
2024 | |||
2025 | |||
2026 | |||
Total | $ 106,718 | ||
Dogness Culture [Member] | Subsequent Event [Member] | |||
2022 | 58,141 | ||
2023 | |||
2024 | |||
2025 | |||
2026 | |||
Total | $ 58,141 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) ¥ in Millions | Mar. 16, 2018USD ($) | Mar. 16, 2018CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Oct. 16, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Property, Plant and Equipment [Line Items] | |||||||||
Depreciation | $ 3,025,686 | $ 2,189,863 | $ 1,387,698 | ||||||
Loss from disposition of fixed assets | 1,036,304 | ||||||||
Impairment of fixed assets | 281,680 | ||||||||
Upaid Cost | 10,700,000 | ||||||||
Property, Plant and Equipment, Additions | 10,900,000 | ||||||||
Subsequent Event [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Payments to Acquire Productive Assets | $ 5,900,000 | ||||||||
Property, Plant and Equipment, Additions | $ 5,000,000 | ||||||||
RMB [Member] | Subsequent Event [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Additions | ¥ | ¥ 32.1 | ||||||||
Cathay Bank [Membeer] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Secured Debt | 700,000 | ||||||||
Dongguan Rural Commercial Bank [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from Bank Debt | 7,400,000 | ||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Payments to Acquire Productive Assets | 25,000,000 | ||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | RMB [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Payments to Acquire Productive Assets | ¥ | ¥ 161.3 | ||||||||
Dogness Culture [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated budgeted costs | $ 300,000 | ||||||||
Cash consideration | 200,000 | ||||||||
Dogness Culture [Member] | RMB [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated budgeted costs | ¥ | ¥ 2.2 | ||||||||
Cash consideration | ¥ | 1.5 | ||||||||
Machinery and Equipment [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Depreciation | $ 1,200,000 | ||||||||
Warehouse Construction [Member] | Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated budgeted costs | $ 35,800,000 | ||||||||
Payments to Acquire Productive Assets | $ 10,800,000 | ||||||||
Warehouse Construction [Member] | Dongguan Jiasheng Enterprise Co., Ltd. [Member] | RMB [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated budgeted costs | ¥ | ¥ 230.8 | ||||||||
Payments to Acquire Productive Assets | ¥ | ¥ 69.5 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, NET (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Software | $ 232,764 | $ 212,478 |
Land use right | 2,352,331 | 2,147,318 |
Less: accumulated amortization | (361,810) | (254,993) |
Intangible assets, net | $ 2,223,285 | $ 2,104,803 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Amortization of intangible assets | $ 80,396 | $ 75,094 | $ 78,824 |
Intangible Assets [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loan from bank | 7,400,000 | ||
Collateral to secure loan | $ 2,100,000 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Leases | ||
Right-of-use assets, net | $ 5,170,395 | $ 5,123,898 |
Operating lease liabilities - current | 171,803 | 172,716 |
Operating lease liabilities - non-current | 1,123,060 | 1,200,299 |
Total operating lease liabilities | $ 1,294,863 | $ 1,373,015 |
Weighted average remaining lease term (years) | 14 years 6 months 29 days | |
Weighted average discount rate | 5.79% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Leases | ||
2022 | $ 240,505 | |
2023 | 246,569 | |
2024 | 264,105 | |
2025 | 264,556 | |
2026 | 271,226 | |
Thereafter | 244,817 | |
Total future minimum lease payments | 1,531,778 | |
Less: imputed interest | 236,915 | |
Total | $ 1,294,863 | $ 1,373,015 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases | |||
Rent expense | $ 487,763 | $ 562,894 | $ 640,626 |
SCHEDULE OF SHORT-TERM BANK LOA
SCHEDULE OF SHORT-TERM BANK LOANS (Details) (Parenthetical) ¥ in Millions | Aug. 30, 2019USD ($) | Aug. 30, 2019CNY (¥) | Aug. 09, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Feb. 06, 2020USD ($) | Aug. 09, 2019CNY (¥) |
Line of Credit Facility [Line Items] | ||||||||
Proceeds from short term debt | $ 349,771 | $ 5,211,000 | $ 2,932,000 | |||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Line Of Credit Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from short term debt | $ 2,500,000 | |||||||
Debt description | The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. | The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. | ||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Line Of Credit Agreement [Member] | Land Use Right [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Collateral debt | $ 2,100,000 | |||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Line Of Credit Agreement [Member] | RMB [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from short term debt | ¥ | ¥ 18 | |||||||
Dongguan Jiasheng Enterprise Co., Ltd [Member] | Line Of Credit Agreement [Member] | Building [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Collateral debt | $ 8,200,000 | |||||||
Bank of Communications of China [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Effective interest rate | 5.655% | 5.655% | ||||||
Industrial and Commercial Bank of China [Membeer] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Effective interest rate | 5.655% | 5.655% | ||||||
Industrial and Commercial Bank of China [Membeer] | Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Loan Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt description | The loan bears a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.345 basis points. | |||||||
Short term debt | $ 1,700,000 | |||||||
Industrial and Commercial Bank of China [Membeer] | Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Loan Agreement [Member] | RMB [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Short term debt | ¥ | ¥ 12 | |||||||
Cathay Bank [Membeer] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Effective interest rate | 4.25% | 4.25% | ||||||
Cathay Bank [Membeer] | Dongguan Jiasheng Enterprise Co., Ltd. [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum line of credit | $ 1,200,000 | |||||||
Outstanding balance | $ 704,446 |
SCHEDULE OF SHORT-TERM BANK L_2
SCHEDULE OF SHORT-TERM BANK LOANS (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Line of Credit Facility [Line Items] | |||
Short-term Debt | $ 704,446 | $ 5,142,000 | |
Bank of Communications of China [Member] | |||
Line of Credit Facility [Line Items] | |||
Short-term Debt | [1] | 2,545,200 | |
Industrial and Commercial Bank of China [Membeer] | |||
Line of Credit Facility [Line Items] | |||
Short-term Debt | 1,696,800 | ||
Cathay Bank [Membeer] | |||
Line of Credit Facility [Line Items] | |||
Short-term Debt | [2] | $ 704,446 | $ 900,000 |
[1] | In August 2019, Dongguan Jiasheng entered into two loan agreements with BCC Dongguan Branch to borrow total of RMB 18 2.5 The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. 2.1 8.2 | ||
[2] | On February 6, 2020, one of the Company’s U.S. subsidiary Dogness Group, obtained a line of credit from Cathay Bank, pursuant to which, Dogness Group has the availability to borrow a maximum $ 1.2 704,446 |
SCHEDULE OF LONG-TERM LOAN (Det
SCHEDULE OF LONG-TERM LOAN (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Line of Credit Facility [Line Items] | ||
Paycheck Protection Program Loan (PPP) Loan | $ 7,354,024 | $ 73,300 |
Less: current portion of long-term loans | 796,416 | |
Long-term loans | 6,557,608 | 73,300 |
Southwestern National Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Paycheck Protection Program Loan (PPP) Loan | 73,300 | |
Dongguan Rural Commercial Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Paycheck Protection Program Loan (PPP) Loan | $ 7,354,024 |
SCHEDULE OF LONG-TERM LOAN (D_2
SCHEDULE OF LONG-TERM LOAN (Details) (Parenthetical) | Jun. 30, 2021 | Jun. 30, 2020 |
Dongguan Rural Commercial Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective interest rate | 6.15% | 6.55% |
SCHEDULE OF BANK LOANS REPAYMEN
SCHEDULE OF BANK LOANS REPAYMENT (Details) | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 1,500,862 |
2023 | 1,438,153 |
2024 | 3,320,220 |
2025 | 402,638 |
2026 | 429,512 |
2027 | 458,182 |
2028 | 488,734 |
2029 | 20,169 |
Total | $ 8,058,470 |
BANK LOANS (Details Narrative)
BANK LOANS (Details Narrative) ¥ in Millions | Jul. 17, 2020USD ($) | Jul. 17, 2020CNY (¥) | May 11, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2021CNY (¥) | Jul. 17, 2020CNY (¥) |
Short-term Debt [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | $ 5,170,395 | $ 5,123,898 | |||||||
Repayments of Debt | 400,000 | ||||||||
Loans Payable, Current | 796,416 | ||||||||
Interest expense | 460,905 | 239,326 | $ 209,842 | ||||||
Capitalized interest | 145,620 | $ 0 | |||||||
RMB [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Repayments of Debt | ¥ | ¥ 2.5 | ||||||||
Loans Payable, Current | $ 7,400,000 | ¥ 47.5 | |||||||
Dongguan Rural Commercial Bank [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Proceeds from loan | $ 7,700,000 | ||||||||
Debt description | The loans have terms of eight years with a maturity date on July 16, 2028. The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. | The loans have terms of eight years with a maturity date on July 16, 2028. The loans bear a variable interest rate based on the prime interest rate set by the People’s Bank of China at the time of borrowing, plus 1.405 basis points. | |||||||
Dongguan Rural Commercial Bank [Member] | RMB [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Proceeds from loan | ¥ | ¥ 50 | ||||||||
U.S. Small Business Administration [Member] | Paycheck Protection Program Loan (PPP) [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Proceeds from loan | $ 73,300 | ||||||||
Debt description | The interest rate on this loan is 1% per annum and any portion of the principal and accrued interest that is not forgiven is required to be repaid by May 11, 2022. | ||||||||
U.S. Small Business Administration [Member] | Paycheck Protection Program Loan (PPP) [Member] | Maximum [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt interest | 100.00% | ||||||||
Meijia [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 4,600,000 | ||||||||
Meijia [Member] | Mr Silong Chen [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | 3,100,000 | ||||||||
Meijia [Member] | Land [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | 2,100,000 | ||||||||
Meijia [Member] | Building [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | $ 5,700,000 | ||||||||
Meijia [Member] | RMB [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | ¥ | ¥ 30 | ||||||||
Meijia [Member] | RMB [Member] | Mr Silong Chen [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | ¥ | ¥ 20 |
SCHEDULE OF RECONCILIATION EFFE
SCHEDULE OF RECONCILIATION EFFECTIVE TAX (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed based on PRC statutory rate | $ 485,121 | $ (2,093,097) | $ 445,868 |
Effect of rate differential for Hong Kong and other outside PRC entities | (173,905) | (24,016) | (229,893) |
Effect of PRC preferential tax rate | (117,514) | 515,416 | (34,453) |
Change in valuation allowance | (223,729) | 1,635,324 | |
Surcharge on unpaid income tax | 669,650 | ||
Permanent difference | 30,030 | 130,910 | 198,774 |
Refund of prior years’ tax | (28,193) | ||
Effective tax | $ 641,460 | $ 164,537 | $ 380,296 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income tax provision | $ 1,119,776 | $ 25,423 | $ 614,622 |
Deferred income tax provision (benefit) | (478,316) | 139,114 | (234,326) |
Provision for income taxes | $ 641,460 | $ 164,537 | $ 380,296 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 1,223,699 | $ 1,515,308 |
Assets impairment reserve | 471,634 | 233,759 |
Depreciation and others | 56,642 | |
Valuation allowance | (1,146,317) | (1,633,837) |
Deferred tax assets, net | $ 605,658 | $ 115,230 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Corporate income tax payable | $ 4,256,487 | $ 2,813,014 |
Other tax payable | 186,705 | 1,397 |
Total taxes payable | $ 4,443,192 | $ 2,814,411 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2019 | Jun. 30, 2020 | |
Statutory income tax rate | 15.00% | ||
Description on tax rate | Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and Foreign Investment Enterprises (“FIEs”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. In October 2015, Dongguan Jiasheng, the Company’s main operating subsidiary in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% for three years. | ||
Income Tax Holiday, Aggregate Dollar Amount | $ 117,514 | $ 3,003 | |
Income Tax Holiday, Income Tax Benefits Per Share | $ 0 | $ 0 | |
Taxes Payable, Current | $ 4,443,192 | $ 2,814,411 | |
[custom:SurchargeForOverdueTaxPayment] | $ 669,650 | ||
HONG KONG | |||
Statutory income tax rate | 16.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) ¥ in Millions | Jul. 06, 2018USD ($) | Jul. 06, 2018CNY (¥) | Oct. 31, 2021USD ($) | Oct. 31, 2021CNY (¥) | Oct. 16, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | Jul. 06, 2018CNY (¥) | Jul. 02, 2018 | Mar. 16, 2018USD ($) | Mar. 16, 2018CNY (¥) |
Loss Contingencies [Line Items] | |||||||||||||||||
[custom:CapitalExpendituresFutureMinimumPaymentsDue-0] | $ 10,910,061 | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payments to Acquire Productive Assets | $ 5,900,000 | ||||||||||||||||
[custom:CapitalExpendituresFutureMinimumPaymentsDue-0] | $ 5,900,000 | $ 5,930,568 | |||||||||||||||
Maximum [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Ownership percentage | 20.00% | ||||||||||||||||
Dogness Intelligence Technology Co Ltd [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | $ 12,400,000 | ||||||||||||||||
Ownership percentage | 58.00% | 58.00% | |||||||||||||||
Dogness Intelligence Technology Co Ltd [Member] | RMB [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | ¥ 80 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | $ 7,200,000 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | RMB [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | ¥ 46.4 | ||||||||||||||||
Zhangzhou Meijia Metal Product Co., Ltd ('Meijia') [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | 300,000 | $ 6,300,000 | $ 9,300,000 | ||||||||||||||
Zhangzhou Meijia Metal Product Co., Ltd ('Meijia') [Member] | December 30, 2025 [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | 2,700,000 | ||||||||||||||||
Zhangzhou Meijia Metal Product Co., Ltd ('Meijia') [Member] | RMB [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | ¥ 1.8 | ¥ 40.9 | ¥ 60 | ||||||||||||||
Zhangzhou Meijia Metal Product Co., Ltd ('Meijia') [Member] | RMB [Member] | December 30, 2025 [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | 17.3 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | 2,500,000 | $ 6,000,000 | |||||||||||||||
Payments to Acquire Productive Assets | 25,000,000 | ||||||||||||||||
[custom:CapitalExpendituresFutureMinimumPaymentsDue-0] | 10,803,343 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Subsequent Event [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
[custom:CapitalExpendituresFutureMinimumPaymentsDue-0] | $ 5,872,427 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Minimum [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | $ 7,700,000 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | Maximum [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | $ 8,500,000 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | RMB [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | 16 | ¥ 39 | |||||||||||||||
Payments to Acquire Productive Assets | ¥ | ¥ 161.3 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | RMB [Member] | Minimum [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | ¥ 50 | ||||||||||||||||
Dongguan Jiasheng Enterprise Co., Ltd. [Member] | RMB [Member] | Maximum [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | ¥ 55 | ||||||||||||||||
Dogness Network Technology Co Ltd [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | $ 1,200,000 | ||||||||||||||||
Ownership percentage | 10.00% | 10.00% | |||||||||||||||
Capital contribution | $ 1,200,000 | ||||||||||||||||
Dogness Network Technology Co Ltd [Member] | RMB [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Capital | ¥ | ¥ 8 | ||||||||||||||||
Capital contribution | ¥ | ¥ 8 | ||||||||||||||||
Meijia and Dongguan Jiasheng [Member] | Subsequent Event [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payments to Acquire Productive Assets | $ 5,000,000 | ||||||||||||||||
Meijia and Dongguan Jiasheng [Member] | RMB [Member] | Subsequent Event [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payments to Acquire Productive Assets | ¥ | ¥ 32.1 |
SCHEDULE OF RELATIONSHIP OF REL
SCHEDULE OF RELATIONSHIP OF RELATED PARTIES (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Mr Silong Chen [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Chief Executive Officer; Chairman of the Board of Directors |
Junqiang Chen and Caiyuan He [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Relatives of Mr. Silong Chen |
Linsun Smart Technology Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Equity investee -10% of the ownership |
Dogness Network Technology Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Equity Investee - 13% of the ownership |
Guangdong Dogness Biotechnology Co., Ltd., [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Relate to one of the Company’s shareholders |
Guangdong Dogness Technology Co., Ltd. (Dogness Technology) [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | The legal representative is Junqiang Chen, the relative of Mr. Silong Chen |
SCHEDULE OF RELATIONSHIP OF R_2
SCHEDULE OF RELATIONSHIP OF RELATED PARTIES (Details) (Parenthetical) | Jun. 30, 2021 |
Linsun Smart Technology Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Equity ownership percentage | 10.00% |
Dogness Network Technology Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Equity ownership percentage | 13.00% |
SCHEDULE OF DUE FROM RELATED PA
SCHEDULE OF DUE FROM RELATED PARTIES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 32,528 | |
Linsun [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 32,118 | |
Dogness Network Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | $ 410 |
SCHEDULE OF DUE TO RELATED PART
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Due to related party | $ 2,001,940 | $ 25,462 |
Mr Silong Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | $ 2,001,940 | $ 25,462 |
SCHEDULE OF REVENUE FROM RELATE
SCHEDULE OF REVENUE FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |||
Total | $ 1,207,686 | $ 909,651 | $ 328,567 |
Linsun Smart Technology Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Total | 72,987 | 185,126 | |
Dogness Network Technology Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Total | $ 1,207,686 | $ 836,664 | $ 143,441 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE FROM RELATED PARTIES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 515,193 | $ 559,465 |
Dogness Network Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 515,193 | $ 559,465 |
SCHEDULE OF ACCOUNTS PAYABLE TO
SCHEDULE OF ACCOUNTS PAYABLE TO RELATED PARTIES (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | $ 350,199 | $ 305,215 |
Linsun Smart Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | 350,199 | 301,555 |
Dogness Network Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | $ 3,660 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | Aug. 02, 2020USD ($)ft² | Jan. 02, 2020USD ($)ft² | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Related Party Transaction [Line Items] | |||||
Cost of revenue to related parties | $ 663,742 | $ 633,132 | $ 202,606 | ||
Accounts receivable - related parties | 515,193 | 559,465 | |||
Proceeds from receivables from related parties | 404,504 | ||||
Linsun Smart Technology Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments to related parties | 3,015,442 | 2,191,458 | |||
Linsun Smart Technology Co Ltd [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of land | ft² | 8,460 | ||||
Lease term | 10 years | ||||
Lease description | Annual lease payment from Linsun amounted to approximately $250,000 and is subject to 15% increase every three years. | ||||
Annual lease receivable | $ 250,000 | ||||
Operating leases percentage | 15.00% | ||||
Rental income | 300,511 | 300,511 | |||
Other income | 89,411 | 89,411 | |||
Dogness Network Technology Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable - related parties | 515,193 | 559,465 | |||
Payments to related parties | 205,328 | ||||
Dogness Pet Culture (Dongguan) Co., Ltd. [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of land | ft² | 580 | ||||
Lease term | 10 years | ||||
Lease description | Annual lease payment from Dogness Network amounted to approximately $36,000 and is subject to 15% increase every three years. | ||||
Annual lease receivable | $ 36,000 | ||||
Operating leases percentage | 15.00% | ||||
Rental income | 52,796 | ||||
Other income | |||||
Guangdong Dogness Biotechnology Co., Ltd., [Member] | Lease Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of land | ft² | 50 | ||||
Lease term | 10 years | ||||
Annual lease receivable | $ 1,812 | ||||
Rental income | 1,661 | 1,661 | |||
Other income |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | Apr. 15, 2021 | Jan. 20, 2021 | Dec. 18, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 26, 2017 | Jul. 11, 2016 |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 100,000,000 | 15,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.002 | $ 0.002 | $ 0.002 | $ 0.002 | ||||
Common Stock, Shares, Outstanding | 29,624,814 | 25,913,631 | 15,000,000 | |||||
Number of shares issued for service, value | $ 387,500 | |||||||
Unamortized stock-based compensation expense | Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. | |||||||
Allocatiion to Statutory Reserve | $ 99,727 | $ 0 | $ 27,349 | |||||
Restricted Reserve | $ 291,443 | $ 191,716 | ||||||
Real Miracle Investments Limited [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Common shares issued for service | 250,000 | |||||||
Number of shares issued for service, value | $ 387,500 | |||||||
Securities Purchase Agreement [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from issuance of warrants | $ 5,400,000 | |||||||
Securities Purchase Agreement [Member] | Investor [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued price per share | $ 2.70 | |||||||
Warrants to purchase common stock | 1,727,565 | |||||||
Securities Purchase Agreement [Member] | Placement Agent [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued price per share | $ 276,410 | |||||||
Warrants to purchase common stock | 2.70 | |||||||
Warrant [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Warrants exercise price | $ 2.70 | |||||||
Number of warrants expired | 500,000 | |||||||
Warrants outstanding | 2,003,975 | |||||||
Warrants term | 2 years 1 month 9 days | |||||||
Common Class A [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Common Stock, Shares, Outstanding | 20,555,814 | 16,844,631 | ||||||
Common Class A [Member] | Securities Purchase Agreement [Member] | Investor [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued price per share | $ 2.15 | |||||||
Number of shares issuance of sales | 3,455,130 | |||||||
Proceeds from sale of common shares | $ 6,600,000 | |||||||
Common Class A [Member] | Public Offering Warrants [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Warrants to purchase common stock | 500,000 | |||||||
Percentage for common stock sold for offering | 5.00% | |||||||
Warrants term | 3 years | |||||||
Warrants exercise price | $ 6.25 | |||||||
Common Class B [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Common Stock, Shares, Outstanding | 9,069,000 | 9,069,000 | ||||||
IPO [Member] | Common Class A [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares of initial public offering | 10,913,631 | |||||||
Shares issued price per share | $ 5 | |||||||
Gross from initial public offering | $ 54,600,000 | |||||||
Proceeds from initial public offering | 50,200,000 | |||||||
Proceeds from sale of common shares | $ 50,200,000 |
SCHEDULE OF EARNINGS PER SHARE,
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to the Company | $ 1,512,364 | $ (8,441,559) | $ 1,421,781 |
Weighted average number of common shares outstanding - Basic | 27,499,367 | 25,913,631 | 25,913,631 |
Dilutive securities -unexercised warrants and options | 55,444 | 27,975 | |
Weighted average number of common shares outstanding – diluted | 27,554,811 | 25,913,631 | 25,941,606 |
Earnings (loss) per share - Basic | $ 0.05 | $ (0.33) | $ 0.05 |
Earnings (loss) per share – Diluted | $ 0.05 | $ (0.33) | $ 0.05 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details Narrative) - shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 55,444 | 27,975 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |||
Number of Options Outstanding, Beginning Balance | 500,000 | 480,000 | 640,000 |
Weighted Average Exercise Price, Beginning Balance | $ 1.50 | $ 1.50 | $ 1.50 |
Weighted Average Remaining Life in Years, Ending Balance | 4 months 6 days | 1 year 2 months 19 days | 1 year 9 months 21 days |
Number of Option Outstanding Exercisable, Beginning Balance | 413,337 | 270,000 | 90,000 |
Weighted Average Exercise Price Exercisable, Beginning Balance | $ 1.50 | $ 1.50 | $ 1.50 |
Weighted Average Remaining Life in Years, Ending Balance | 2 months 8 days | 1 year 1 month 20 days | 2 years 1 month 20 days |
Number of Options, Granted | 160,000 | ||
Weighted Average Price, Granted | |||
Number of Options, Cancelled | (140,000) | (160,000) | |
Weighted Average Exercise Price, Cancelled | |||
Number of Options, Exercised | (10,000) | ||
Weighted Average Exercise Price, Exercised | |||
Weighted Average Remaining Life in Years, Ending Balance | 10 days | 4 months 6 days | 1 year 2 months 19 days |
Weighted Average Remaining Life in Years, Ending Balance | 10 days | 2 months 8 days | 1 year 1 month 20 days |
Number of Options Outstanding, Ending Balance | 490,000 | 500,000 | 480,000 |
Weighted Average Exercise Price, Ending Balance | $ 1.50 | $ 1.50 | $ 1.50 |
Number of Options Outstanding Exercisable, Ending Balance | 483,341 | 413,337 | 270,000 |
Weighted Average Exercise Price Exercisable, Ending Balance | $ 1.50 | $ 1.50 | $ 1.50 |
OPTIONS (Details Narrative)
OPTIONS (Details Narrative) - USD ($) | Feb. 18, 2021 | Jul. 30, 2019 | Dec. 18, 2017 | Nov. 10, 2017 | May 28, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Nov. 10, 2017 | Oct. 31, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Stock options exercise purchase price | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | |||||||
Options exercised | 10,000 | ||||||||||
Share-based compensation for services | $ 529,658 | $ 394,465 | $ 682,254 | ||||||||
IPO [Member] | Common Class A [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of shares issued under public offering | 10,913,631 | ||||||||||
TJ Capital Management, L.P [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Stock options grants to purchase | 160,000 | ||||||||||
Stock options exercise purchase price | $ 1.50 | $ 1.50 | |||||||||
TJ Capital Management, L.P [Member] | Corporate and Executive Service Agreement [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Stock options grants to purchase | 160,000 | ||||||||||
Stock options exercise purchase price | $ 1.50 | ||||||||||
Options vested | 6,667 | ||||||||||
Share-based payment award fair value assumptions expected term | 2 years | ||||||||||
Aggregated fair value of options granted | $ 284,300 | ||||||||||
Share price | $ 2.90 | ||||||||||
Share-based payment award, fair value assumptions, risk free interest rate | 1.85% | ||||||||||
Share-based payment award, fair value assumptions, exercise price | $ 1.50 | ||||||||||
Share-based payment award, fair value assumptions, expected volatility rate | 77.00% | ||||||||||
Share-based payment award, fair value assumptions, expected dividend payments | |||||||||||
TJ Capital Management, L.P [Member] | Consulting Agreement [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options exercised | 10,000 | ||||||||||
Number of shares issued under public offering | 6,053 | ||||||||||
TJ Capital Management, L.P [Member] | IPO One [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 60,000 | 60,000 | |||||||||
Share-based payment award fair value assumptions expected term | 7 months | ||||||||||
TJ Capital Management, L.P [Member] | IPO Two [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 50,000 | 50,000 | |||||||||
Share-based payment award fair value assumptions expected term | 10 months | ||||||||||
TJ Capital Management, L.P [Member] | IPO Three [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 50,000 | 50,000 | |||||||||
Share-based payment award fair value assumptions expected term | 15 months | ||||||||||
Dr. Yunhao Chen [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 120,000 | ||||||||||
Share-based payment award fair value assumptions expected term | 2 years | ||||||||||
Aggregated fair value of options granted | $ 440,840 | ||||||||||
Share price | $ 5 | ||||||||||
Share-based payment award, fair value assumptions, risk free interest rate | 1.84% | ||||||||||
Share-based payment award, fair value assumptions, exercise price | $ 1.50 | ||||||||||
Share-based payment award, fair value assumptions, expected volatility rate | 69.50% | ||||||||||
Share-based payment award, fair value assumptions, expected dividend payments | |||||||||||
Options exercised | 0 | ||||||||||
Share-based payment award, fair value assumptions, method used | Black-Scholes pricing model | ||||||||||
Dr. Yunhao Chen [Member] | Employment Agreement [Member] | Common Class A [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Stock options grants to purchase | 120,000 | ||||||||||
Stock options exercise purchase price | $ 1.50 | ||||||||||
Dr. Yunhao Chen [Member] | IPO [Member] | Employment Agreement [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 5,000 | ||||||||||
Mr Silong Chen [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 220,000 | ||||||||||
Share-based payment award fair value assumptions expected term | 3 years | ||||||||||
Aggregated fair value of options granted | $ 1,385,500 | ||||||||||
Share price | $ 5 | ||||||||||
Share-based payment award, fair value assumptions, risk free interest rate | 1.94% | ||||||||||
Share-based payment award, fair value assumptions, exercise price | $ 1.50 | ||||||||||
Share-based payment award, fair value assumptions, expected volatility rate | 74.70% | ||||||||||
Share-based payment award, fair value assumptions, expected dividend payments | |||||||||||
Options exercised | 0 | ||||||||||
Share-based payment award, fair value assumptions, method used | Black-Scholes pricing model | ||||||||||
Stock options non vested shares | 140,000 | ||||||||||
Mr Silong Chen [Member] | Common Class A [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Stock options grants to purchase | 360,000 | ||||||||||
Stock options exercise purchase price | $ 1.50 | ||||||||||
Mr Silong Chen [Member] | IPO [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Options vested | 10,000 |
SCHEDULE OF REVENUES BY PRODUCT
SCHEDULE OF REVENUES BY PRODUCT CATEGORIES (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 24,320,121 | $ 19,171,358 | $ 26,216,515 |
Traditional Pet Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 14,331,492 | 13,208,764 | 23,897,528 |
Intelligent Pet Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 7,801,070 | 4,328,918 | 2,103,523 |
Climbing Hooks and Others [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,340,686 | 1,633,676 | 215,464 |
Product [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 23,473,248 | 19,171,358 | 26,216,515 |
Dyeing Services [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 817,145 | ||
Service, Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | 29,728 | ||
Service [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 846,873 |
SCHEDULE OF REVENUES BY GEOGRAP
SCHEDULE OF REVENUES BY GEOGRAPHIC INFORMATION (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 24,320,121 | $ 19,171,358 | $ 26,216,515 |
International Market [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 10,627,253 | 9,399,228 | 11,134,072 |
China Market [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 13,692,868 | $ 9,772,130 | $ 15,082,443 |
SEGMENT (Details Narrative)
SEGMENT (Details Narrative) | 12 Months Ended |
Jun. 30, 2021Integer | |
Segment Reporting [Abstract] | |
Number of reporting segment | 1 |
CONCENTRATONS AND CREDIT RISK (
CONCENTRATONS AND CREDIT RISK (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Concentration Risk [Line Items] | |||
Cash Equivalents, at Carrying Value | $ 1,118,118 | $ 879,040 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Dogness Network [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 17.70% | 22.70% | |
Three Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 45.20% | ||
Customers One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.50% | 20.00% | |
Customers One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 32.00% | 27.60% | 28.10% |
Customers Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 17.10% | |
Customers Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 9.10% | 6.50% | 13.50% |
Four Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 73.00% | ||
Customers Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.20% | ||
Customers Three [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 6.90% | 4.40% | 5.60% |
Supplier One [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 29.20% | ||
Supplier One [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.30% | ||
Supplier Two [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 29.80% | ||
Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 43.70% | 49.00% | 42.50% |
One Related Party [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.90% | ||
Two Suppliers [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 35.10% | ||
Suppliers Two [Member] | Assets, Total [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.80% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Securities Purchase Agreement [Member] - USD ($) $ / shares in Units, $ in Millions | Jul. 19, 2021 | Jan. 20, 2021 |
Investor [Member] | ||
Subsequent Event [Line Items] | ||
Shares issued price per share | $ 2.70 | |
Warrants to purchase common stock | 1,727,565 | |
Investor [Member] | Common Class A [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares issuance of sales | 3,455,130 | |
Shares issued price per share | $ 2.15 | |
Proceeds from sale of common shares | $ 6.6 | |
Investor [Member] | Common Class A [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares issuance of sales | 2,178,120 | |
Shares issued price per share | $ 1.82 | |
Proceeds from sale of common shares | $ 3.4 | |
Placement Agent [Member] | ||
Subsequent Event [Line Items] | ||
Shares issued price per share | $ 276,410 | |
Warrants to purchase common stock | 2.70 | |
Placement Agent [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Warrants to purchase common stock | 174,249 | |
Warrants purchase price per share | $ 1.82 |