Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Pop Culture Group Co., Ltd |
Trading Symbol | CPOP |
Document Type | 20-F |
Current Fiscal Year End Date | --06-30 |
Amendment Flag | false |
Entity Central Index Key | 0001807389 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40543 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 3rd Floor |
Entity Address, Address Line Two | No. 168 Fengqi RoadJimei District |
Entity Address, City or Town | Xiamen City |
Entity Address, Country | CN |
Title of 12(b) Security | Class A Ordinary Shares |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | WWC, P.C. |
Auditor Firm ID | 1171 |
Auditor Location | San Mateo, California |
Entity Address, Postal Zip Code | 00000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 3rd Floor |
Entity Address, Address Line Two | No. 168 Fengqi RoadJimei District |
Entity Address, City or Town | Xiamen City |
Entity Address, Country | CN |
Contact Personnel Name | Zhuoqin Huang, |
City Area Code | 86-592 |
Local Phone Number | 5968189 |
Contact Personnel Email Address | Email: ceo@cpop.cn |
Entity Address, Postal Zip Code | 00000 |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 18,286,923 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 5,763,077 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | |
CURRENT ASSETS: | |||
Cash | $ 2,751,309 | $ 14,396,032 | |
Investment in film | 885,824 | ||
Accounts receivable, net | 19,642,337 | 26,278,634 | |
Advance to suppliers | 8,864,972 | 9,351,431 | |
Prepaid expenses and other current assets | 95,992 | 805,427 | |
TOTAL CURRENT ASSETS | 32,253,714 | 50,831,524 | |
Property and equipment, net | 844,614 | 71,763 | |
Intangible asset, net | 119,519 | 2,204,411 | |
Operating right-of-use asset | 84,892 | 461,399 | |
Prepaid Taxes | 621,990 | 332,022 | |
Deferred tax assets | 457,649 | ||
Other non-current assets | 5,120,599 | 10,009,200 | |
TOTAL ASSETS | 39,045,328 | 64,367,968 | |
CURRENT LIABILITIES: | |||
Short-term bank loans | 3,971,702 | 3,433,810 | |
Long-term bank loans -current portion | 1,158,413 | 358,311 | |
Accounts payable | 2,697,089 | 966,822 | |
Deferred revenue | 393,003 | 47,710 | |
Taxes payable | 4,327,182 | 4,697,267 | |
Accrued liabilities and other payables | 215,042 | 229,209 | |
Operating lease liability - current | 65,115 | 208,926 | |
TOTAL CURRENT LIABILITIES | 12,827,546 | 10,091,351 | |
Long-term bank loans | 1,254,087 | ||
Operating lease liability - non-current | 39,634 | 250,178 | |
TOTAL LIABILITIES | 12,867,180 | 11,595,616 | |
Commitments and contingencies | |||
SHAREHOLDERS’ EQUITY | |||
Ordinary shares (par value $0.01 per share; 4,400,000 Class A ordinary shares authorized; 1,828,693 Class A ordinary shares issued and outstanding as of June 30, 2022 and 2023, respectively; 600,000 Class B ordinary shares authorized, 576,308 Class B ordinary shares issued and outstanding as of June 30, 2022 and 2023) * | [1] | 24,050 | 24,050 |
Subscription receivable | (15,441) | (15,441) | |
Additional paid-in capital | 40,174,260 | 40,158,643 | |
Statutory reserve | 1,537,228 | 1,499,369 | |
Retained earnings (accumulated deficit) | (13,339,929) | 11,028,345 | |
Accumulated other comprehensive (loss) income | (1,644,872) | 69,019 | |
TOTAL POP CULTURE GROUP CO., LTD SHAREHOLDERS’ EQUITY | 26,735,296 | 52,763,985 | |
Non-controlling interests | (557,148) | 8,367 | |
TOTAL SHAREHOLDERS’ EQUITY | 26,178,148 | 52,772,352 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 39,045,328 | 64,367,968 | |
Related Party | |||
CURRENT ASSETS: | |||
Due from related parties | $ 13,280 | ||
CURRENT LIABILITIES: | |||
Due to a related party | $ 149,296 | ||
[1]Retroactively restated to reflect 1-for-10 share consolidation effective on October 26, 2023 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Class A Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 4,400,000 | 4,400,000 |
Ordinary shares, shares issued | 1,828,693 | 1,828,693 |
Ordinary shares, shares outstanding | 1,828,693 | 1,828,693 |
Class B Ordinary Shares | ||
Ordinary shares, shares authorized | 600,000 | 600,000 |
Ordinary shares, shares issued | 576,308 | 576,308 |
Ordinary shares, shares outstanding | 576,308 | 576,308 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income(Loss) - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
REVENUE | $ 18,543,243 | $ 32,281,543 | $ 25,526,557 | |
Cost of revenue | 22,206,058 | 26,036,011 | 18,302,494 | |
GROSS PROFIT(LOSS) | (3,662,815) | 6,245,532 | 7,224,063 | |
Selling and marketing expenses | 4,646,875 | 380,723 | 133,387 | |
General and administrative expenses | 6,308,898 | 4,448,342 | 1,258,750 | |
Impairment loss | 1,109,194 | |||
Research and development expenses | 8,694,836 | |||
Total operating expenses | 20,759,803 | 4,829,065 | 1,392,137 | |
INCOME(LOSS) FROM OPERATIONS | (24,422,618) | 1,416,467 | 5,831,926 | |
Other income (expenses): | ||||
Interest expenses, net | (216,558) | (235,327) | (243,458) | |
Other income(expenses), net | 56,044 | 377,979 | 95,946 | |
Total other income (expenses), net | (160,514) | 142,652 | (147,512) | |
INCOME(LOSS) BEFORE INCOME TAX PROVISION | (24,583,132) | 1,559,119 | 5,684,414 | |
PROVISION FOR INCOME TAXES | 674,564 | 871,231 | 1,416,872 | |
NET INCOME(LOSS) | (25,257,696) | 687,888 | 4,267,542 | |
Less: net income(loss) attributable to non-controlling interests | (927,281) | (100,070) | ||
NET INCOME(LOSS) ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | (24,330,415) | 787,958 | 4,267,542 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (1,674,640) | (873,803) | 1,335,757 | |
COMPREHENSIVE INCOME(LOSS) | (26,932,336) | (185,915) | 5,603,299 | |
Less: comprehensive loss attributable to non-controlling interest | (888,030) | (100,070) | ||
COMPREHENSIVE INCOME(LOSS) ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | $ (26,044,306) | $ (85,845) | $ 5,603,299 | |
Net income per share | ||||
Basic (in Dollars per share) | $ (10.1) | $ 0.4 | $ 2.5 | |
Weighted average shares used in calculating net income per share* | ||||
Basic (in Shares) | [1] | 2,405,001 | 2,095,000 | 1,722,870 |
Event hosting | ||||
REVENUE | $ 4,348,303 | $ 14,711,787 | $ 14,978,643 | |
Event planning and execution | ||||
REVENUE | 4,132,477 | 8,420,328 | 9,196,773 | |
Brand promotion | ||||
REVENUE | 9,650,274 | 8,733,764 | 750,315 | |
Other services | ||||
REVENUE | $ 412,189 | $ 415,664 | $ 600,826 | |
[1]Retroactively restated to reflect 1-for-10 share consolidation effective on October 26, 2023 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income(Loss) (Parentheticals) - $ / shares | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | ||||
Diluted | $ (10.1) | $ 0.4 | $ 2.5 | |
Diluted | [1] | 2,405,001 | 2,095,000 | 1,722,870 |
[1]Retroactively restated to reflect 1-for-10 share consolidation effective on October 26, 2023 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary shares | Subscription receivable | Additional paid-in capital | Retained earnings | Statutory reserve | Accumulated other comprehensive (loss) income | Total Pop Culture Group Co., Ltd’s Shareholders’Equity | Non-Controlling Interests | Total |
Balance at Jun. 30, 2020 | $ 16,785 | $ (15,441) | $ 5,813,745 | $ 6,693,120 | $ 779,094 | $ (367,581) | $ 12,919,722 | $ 805,084 | $ 13,724,806 |
Balance (in Shares) at Jun. 30, 2020 | 1,678,492 | ||||||||
Shares issued for acquisition of non-controlling interests | $ 1,065 | 829,373 | (25,354) | 805,084 | (805,084) | ||||
Shares issued for acquisition of non-controlling interests (in Shares) | 106,509 | ||||||||
Net income for the period | 4,267,542 | 4,267,542 | 4,267,542 | ||||||
Appropriation of statutory reserve | (462,479) | 462,479 | |||||||
Foreign currency translation adjustment | 1,335,757 | 1,335,757 | 1,335,757 | ||||||
Balance at Jun. 30, 2021 | $ 17,850 | (15,441) | 6,643,118 | 10,498,183 | 1,241,573 | 942,822 | 19,328,105 | 19,328,105 | |
Balance (in Shares) at Jun. 30, 2021 | 1,785,001 | ||||||||
Capital contribution from shareholders | 108,437 | 108,437 | |||||||
Issuance of Class A Ordinary Shares | $ 6,200 | 33,515,525 | 33,521,725 | 33,521,725 | |||||
Issuance of Class A Ordinary Shares (in Shares) | 620,000 | ||||||||
Foreign currency translation loss | (873,803) | (873,803) | (873,803) | ||||||
Net income for the period | 787,958 | 787,958 | (100,070) | 687,888 | |||||
Appropriation of statutory reserve | (257,796) | 257,796 | |||||||
Balance at Jun. 30, 2022 | $ 24,050 | (15,441) | 40,158,643 | 11,028,345 | 1,499,369 | 69,019 | 52,763,985 | 8,367 | 52,772,352 |
Balance (in Shares) at Jun. 30, 2022 | 2,405,001 | ||||||||
Capital contribution from shareholders | 338,132 | 338,132 | |||||||
Acquisition of Non-controlling interests | 15,617 | 15,617 | (15,617) | ||||||
Foreign currency translation loss | (1,713,891) | (1,713,891) | 39,251 | (1,674,640) | |||||
Net income for the period | (24,330,415) | (24,330,415) | (927,281) | (25,257,696) | |||||
Appropriation of statutory reserve | (37,859) | 37,859 | |||||||
Balance at Jun. 30, 2023 | $ 24,050 | $ (15,441) | $ 40,174,260 | $ (13,339,929) | $ 1,537,228 | $ (1,644,872) | $ 26,735,296 | $ (557,148) | $ 26,178,148 |
Balance (in Shares) at Jun. 30, 2023 | 2,405,001 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | |||
Net Income | $ (25,257,696) | $ 687,888 | $ 4,267,542 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Allowance for doubtful accounts | 2,795,662 | 1,307,518 | 195,187 |
Impairment loss | 1,109,194 | ||
Depreciation and amortization | 2,140,976 | 310,343 | 243,905 |
Deferred tax benefit | 440,832 | (334,045) | (47,802) |
Non-cash lease expenses | 120,261 | 84,552 | 107,139 |
Loss/(gain) from disposal of property and equipment | (1,237) | ||
Changes in assets and liabilities: | |||
Accounts receivable | 2,034,125 | (3,001,954) | (9,259,862) |
Advance to suppliers | 148,432 | (7,542,591) | 1,440,794 |
Prepaid expenses and other current assets | 8,334,953 | 1,533,471 | (1,504,345) |
Other non-current assets | 36,432 | (2,061,939) | 268,433 |
Accounts payable | 1,881,259 | (898,452) | (1,130,593) |
Deferred revenue | 363,871 | (1,599,990) | (275,888) |
Taxes payable | 295,333 | 1,592,715 | |
Accrued liabilities and other payables | (13,439) | 156,840 | (52,007) |
Due to a related party | (225,000) | 225,000 | |
Operating lease liability | (97,343) | (86,933) | (107,550) |
Net cash provided by (used in) operating activities | (5,962,481) | (11,376,196) | (4,037,332) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (623,280) | (82,733) | |
Prepayment for intangible items | (7,988,850) | ||
Advance paid for brand authorization | (4,600,000) | ||
Investment in film, net | (885,824) | ||
Lending to related party | (13,849) | ||
Investment of equity method investments | (43,143) | (720,000) | |
Net cash (used in) provided by investing activities | (6,166,096) | (8,791,583) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term bank loans | 4,141,736 | 3,433,810 | 6,341,729 |
Repayments of short-term bank loans | (3,307,636) | (4,956,629) | (3,472,851) |
Proceeds from long-term bank loans | (245,791) | 1,811,922 | |
Repayments of long-term bank loans | (345,145) | ||
Contribution from shareholders | 338,132 | 33,630,162 | |
Repayments of related party loan | (143,810) | ||
Payment for deferred offering costs | 1,197,380 | (729,977) | |
Net cash provided by financing activities | 683,277 | 33,058,932 | 3,950,823 |
Effect of exchange rate changes | (199,423) | 184,902 | 47,349 |
Net increase (decrease) in cash | (11,644,723) | 13,076,055 | (39,160) |
Cash at beginning of year | 14,396,032 | 1,319,977 | 1,359,137 |
Cash at end of year | 2,751,309 | 14,396,032 | 1,319,977 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Income tax paid | 389,732 | 398,370 | 34,765 |
Interest expenses paid | 226,296 | 56,733 | 235,361 |
Non-cash investing and financing activities: | |||
Payment for R&D services received in the current period, funded through a prior period deposit designated as an investment. | $ 7,988,018 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Jun. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Xiamen Pop Culture Co., Ltd (“Pop Culture” or the “VIE”) was incorporated in Xiamen on March 29, 2007 under the laws of the People’s Republic of China (the “PRC” or “China”). Pop Culture hosts entertainment events and provides event planning and execution services and brand promotion services to corporate clients. Pop Culture has seven wholly-owned subsidiaries in the PRC as follows: ● Shanghai Pupu Sibo Sports Technology Development Co., Ltd. (formerly known as Shanghai Pudu Culture Communication Co., Ltd, “Pupu Sibo”), a company incorporated on March 30, 2017 in Shanghai, China; ● Xiamen Pop Network Technology Co., Ltd. (“Pop Network”), a company incorporated on June 6, 2017 in Xiamen, China; ● Guangzhou Shuzhi Culture Communication Co., Ltd. (formerly known as Zhongjing Pop (Guangzhou) Culture Media Co., Ltd., “Guangzhou Shuzhi”), a company incorporated on December 19, 2018 in Guangzhou, China; ● Shenzhen Pop Digital Industry Development Co., Ltd. (formerly known as Shenzhen Pop Culture Co., Ltd., “Shenzhen Pop”), a company incorporated on January 17, 2020 in Shenzhen, China; ● Hualiu Digital Entertainment (Beijing) International Culture Media Co., Ltd. (“Hualiu Digital”), a company incorporated on April 14, 2022 in Beijing, China; ● Xiamen Pupu Digital Technology Co., Ltd. (“Pupu Digital”), a company incorporated on June 20, 2022 in Xiamen, China; and ● Xiamen Pop Shuzhi Culture Communication Co., Ltd. (“Xiamen Shuzhi”), a company incorporated on May 16, 2022 in Xiamen, China. Reorganization On January 3, 2020, Pop Culture Group Co., Ltd (“Pop Group” or the “Company”) was incorporated as an exempted company with limited liability under the laws of the Cayman Islands. On January 20, 2020, Pop Culture (HK) Holding Limited (“Pop HK”) was established as a wholly-owned subsidiary of Pop Group formed in accordance with laws and regulations of Hong Kong. Pop HK is a holding company and holds all the equity interests of Heliheng Culture Co., Ltd. (“WFOE”), which was established in the PRC on March 13, 2020. On March 30, 2020, WFOE entered into a series of agreements with Pop Culture and the shareholders of Pop Culture who collectively held 93.55% of the shares in Pop Culture, including an Exclusive Services Agreement, an Exclusive Option Agreement, a Share Pledge Agreement, Powers of Attorney, and Spousal Consents (collectively the “VIE Agreements”). The VIE Agreements are designed to provide WFOE with the power, rights, and obligations with respect to Pop Culture as set forth under the VIE Agreements. The VIE Agreements obligate WFOE to absorb a majority of the risk of loss from business activities of Pop Culture and entitle WFOE to receive a majority of Pop Culture’s residual returns. Therefore, the Company believes that Pop Culture should be considered as a Variable Interest Entity under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation.” Between February and May 2020, the Company and its shareholders undertook a series of corporate actions, including share issuances in February 2020, re-designation of ordinary shares of the Company into Class A and Class B ordinary shares in April 2020, and share issuances and transfers in May 2020. See “Note 14—Ordinary Shares.” The above-mentioned transactions, including the incorporation of Pop Group, Pop HK, and WFOE, the entry into the VIE Agreements, the share issuances, share re-designation, and share transfers, were considered a reorganization of the Company (the “Reorganization”). After the Reorganization, Pop Group ultimately owns 100% equity interests of Pop HK and WFOE, and, for accounting purposes, controls and receives the economic benefits of the business operations of Pop Culture and its subsidiaries through the VIE Agreements, which enables Pop Group to consolidate the financial results of Pop Culture and its subsidiaries in its consolidated financial statements under accounting principles generally accepted in the United States of America (“U.S. GAAP”). In accordance with ASC 805-50-25, the Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholder controls all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries and the VIE have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Furthermore, ASC 805-50-45-5 indicates that the financial statements and financial information presented for prior years shall also be retrospectively adjusted to furnish comparative information. Acquisition of non-controlling interest in the VIE On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 14—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE is entitled to 100% of the net income of Pop Culture. WFOE is obliged to absorb all risk of loss from business activities of Pop Culture and entitled to receive all its residual returns. Upon the above transactions, the Company consummated the acquisition of non-controlling interest in Pop Culture, and Pop Culture does not have any non-controlling interests anymore. The consolidated financial statements of the Company included the following entities: Date of Place of Percentage Principal activities The Company January 3, 2020 Cayman 100% Parent Holding Wholly owned subsidiaries Pop HK January 20, 2020 Hong Kong 100% Investment holding WFOE March 13, 2020 PRC 100% WFOE, consultancy and information technology support Pop Culture Global Operations Inc. December 3, 2021 California 100% Overseas hip-hop resource integration and business development Xiamen Pop Investment Co., Ltd. January 25, 2022 PRC 60% owned by Heliheng; 40% owned by the VIE Cross-border funds management Fujian Pupu Shuzhi Sports Industry Development Co., Ltd. (“Shuzhi Sports”) July 21, 2022 PRC 100% Holding sports performance activities VIE Pop Culture March 29, 2007 PRC VIE Event planning, execution, and hosting VIE’s subsidiaries Pupu Sibo March 30, 2017 PRC 100% owned by VIE Event planning and execution Pop Network June 6, 2017 PRC 100% owned by VIE Marketing Guangzhou Shuzhi December 19, 2018 PRC 100% owned by VIE Event planning and execution Shenzhen Pop January 17, 2020 PRC 100% owned by VIE Event planning and execution Xiamen Pop Sikai Interactive Technology Co., Ltd (“Pop Sikai”) August 18, 2020 PRC 51% owned by VIE Event planning and execution Pupu Digital June 20, 2022 PRC 100% owned by the VIE Cultural technology Hualiu Digital April 14, 2022 PRC 100% owned by the VIE Acting broker and self-branding development Zhongpu Shuyuan (Xiamen) Digital Technology Co., Ltd. March 30, 2022 PRC 51% owned by the VIE Digital collection and Metaverse Xiamen Qiqin Technology Co., Ltd. April 12, 2022 PRC 51% owned by the VIE IPC License Shenzhen Jam Box Technology Co., Ltd. (“Shenzhen Jam box”) November 18, 2021 PRC 56% owned by the VIE Event planning and execution Xiamen Pop Shuzhi Culture Communication Co., Ltd. May 16, 2022 PRC 100% owned by the VIE Online and offline advertising marketing and exhibitions Fujian Shuzhi Fuxin Exhibition Co., Ltd. (“Fujian Shuzhi”) May 18, 2022 PRC 51% owned by the VIE Online and offline advertising marketing and exhibitions Risks in relation to the VIE structure The Company believes that the VIE Agreements are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the VIE Agreements. If the legal structure and the VIE Agreements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of WFOE and the VIE; ● discontinue or restrict the operations of any related-party transactions between WFOE and the VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which WFOE and the VIE may not be able to comply; ● require the Company or WFOE and the VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions: As of June 30, 2023 2022 Total assets $ 16,775,802 $ 30,147,583 Total liabilities $ 12,336,610 $ 11,110,127 For the fiscal years ended June 30, 2023 2022 2021 Total revenue $ 18,286,074 $ 24,761,112 $ 24,871,302 Net income (loss) $ (14,053,844 ) $ 1,882,512 $ 4,571,795 Net cash used in operating activities $ (2,672,557 ) $ 4,365,662 $ (3,310,074 ) Net cash used in investing activities $ (680,272 ) $ (589,351 ) $ - Net cash provided by financing activities $ 683,277 $ (1,679,374 ) $ 4,378,228 The Company believes that there are no assets in Pop Culture that can be used only to settle specific obligations of Pop Culture except for the registered capital of Pop Culture and non-distributable statutory reserves. As Pop Culture is incorporated as a limited liability company under the PRC Company Law, creditors of Pop Culture do not have recourse to the general credit of the Company for any of the liabilities of Pop Culture. There are no terms in any arrangements, explicitly or implicitly, requiring the Company or its subsidiaries to provide financial support to Pop Culture. However, if Pop Culture were ever to need financial support, the Company may, at its discretion and subject to statutory limits and restrictions, provide financial support to Pop Culture through loans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE, and subsidiaries of the VIE. All inter-company transactions and balances have been eliminated upon consolidation. (b) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates. (c) Going Concern and Management’s Plan The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company incurred operating loss of $24.42 million and generated negative operating cash flows of $5.96 million for fiscal year ended June 30, 2023. The Company has developed plans and implemented measures to address the going concern issue. The Company’s management is diligently overseeing its operating costs and capital needs, and is fully dedicated to exploring new customer and business opportunities In fiscal years 2022 and 2023, the Company's management has taken significant steps to control and reduce expenses. These measures include implementing more rigorous approval processes for various expenditures, establishing new performance appraisal standards, terminating underperforming employees, eliminating certain positions, and renegotiating contracts with specific vendors. In addition, the Company has dissolved unprofitable subsidiaries to curtail operating losses and cash depletion. Notably, the Company secured a $200 million financing facility in November 2022. Simultaneously, the company will continue to pursue and secure bank loans to support its ongoing operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. (d) Fair value measurements The Company applies ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible for considering the carrying amount of cash, accounts receivable, advance to suppliers, prepaid expenses and other current assets, short-term bank loans, accounts payable, deferred revenue, taxes payable, and accrued liabilities and other payables based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. (e) Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in China. As of June 30, 2022 and 2023, cash balances were $14,396,032 and $2,751,309, respectively. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. (f) Accounts receivable, net Accounts receivables are stated at the historical carrying amount net of allowance for expected credit losses. The Company adopted ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” on January 1, 2021 using a modified retrospective approach. The Company also adopted this guidance to notes receivable, advance to suppliers, other receivables and long-term prepayments. To estimate expected credit losses, the Company has identified the relevant risk characteristics of its customers and the related receivables. The Company considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Company’s customer collection trends. The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. (g) Advance to suppliers Advance to suppliers primarily consists of the prepayments to the service and materials suppliers for the Company’s event hosting, planning, and execution. The Company maintains an allowance for doubtful accounts to state prepayments at their estimated realizable value based on a variety of factors, including the possibility of releasing the prepayments into services and materials, significant one-time events, and historical experience. (h) Property and equipment, net Property and equipment comprise office building, equipment, and motor vehicles. They are recorded at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Building 20 Years Office equipment 3 to 5 Years Motor vehicles 10 Years Leasehold improvement Shorter of useful life or lease term (i) Intangible asset, net Intangible asset is stated at cost less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The balance of intangible asset represents a software that the Company purchased externally and is amortized straight-line over 10 years in accordance with the way the Company estimates to generate economic benefits from such software. (j) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded the impairment charge of nil nil (k) Right-of-use assets The Company has 5 operating lease for office, including an option to renew which is not at the Company’s sole discretion. The renewal to extend the lease term is not included in the Company’s right-of-use (“ROU”) assets and lease liability as they are not reasonably certain of exercise. The Company regularly evaluates the renewal option, and, when it is reasonably certain of exercise, the Company will include the renewal period in its lease term. New lease modifications result in re-measurement of the ROU assets and lease liability. The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. Effective July 1, 2017, the Company adopted ASC 842, Leases using a modified retrospective transition method. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. Adoption of ASC 842 resulted in the recording of operating lease ROU assets and corresponding operating lease liability as disclosed in “Note 13—Lease” and had no impact on accumulated profit as of July 1, 2017. ROU assets and related lease obligation are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company’s lease is classified as operating lease for the office space. Operating lease ROU assets are presented within non-current assets on the consolidated balance sheet and the operating lease liability is classified as current and non-current on the consolidated balance sheet. (l) Value added tax (“VAT”) The Company’s affiliated entities in the PRC, including WFOE, Pop Culture, and subsidiaries of Pop Culture, are subject to PRC VAT for providing services. The applicable VAT rate for these companies was 6% for the fiscal years ended June 30, 2023, 2022, and 2021. The amount of VAT liability is determined by applying the applicable tax rates to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company reports revenue net of PRC VAT for all the periods presented in the consolidated statements of operations. (m) Operating lease liability Lease where substantially all the reward and risk of ownership of asset remain with the leasing company is accounted for as operating lease. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease period. (n) Revenue recognition On July 1, 2017, the Company adopted ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. The adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. ASC 606 establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the Company’s contracts to provide services to customers. The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to the performance obligations in the contract; and Step 5: Recognize revenue when the company satisfies a performance obligation. The Company mainly generates revenue from event hosting, event planning and execution, and brand promotion, and other services. Event hosting - Event planning and execution - Brand promotion - Other services The Company accounts for a contract of event hosting, event planning and execution, or brand promotion when it has legally enforceable rights and obligations and collectability of consideration is probable. Each contract typically contains one single performance obligation, which is to deliver a successful event, activity, qualified online program or video, or brand solution, and the contract price is fixed. Contract terms typically include a customary requirement for payment within 180 days after the Company successfully provides services, which is indicated by the customer’s signed acknowledgement of completion on such event, activity, online program, or brand solution by providing the Company with completion confirmation forms. For event hosting, event planning and execution, and brand promotion, revenue is recognized at a point of time when services are successfully provided (e.g., upon successful carryout of an event), which is indicated by the customer’s acknowledgement of completion on such event, activity, online program or video, or brand solution, as the customer neither simultaneously receives and consumes the benefits provided by the Company’s performance nor controls an increasingly enhanced asset or an asset with an alternative use to the customer as the Company performs. Event hosting, event planning and execution, and brand promotion projects are generally short term, which usually take less than three months. For digital collections, the PRC operating entities sell digital collections through its own digital collection sales platform. After the customer purchases the digital collection issued on the platform and the digital collection is delivered to the customer, the revenue is recognized. For music recording service, revenue is recognized at a point of time when services are successfully provided which is indicated by the customer’s acknowledgement of completion on the recording. For SaaS software services, revenue is recognized after the completion of the service provision. The PRC operating entities reach an annual framework service contract with the customer and charge a one-time service fee. Revenue is recognized on a monthly average basis within the service period. For distribution of advertisements, the Company satisfies its performance obligation over time by measuring the progress based on time elapsed, as the customer simultaneously receives and consumes the benefit of service provided, during the period of time when the advertisement is displayed. Payment is usually required within 180 days after the completion of distribution. The Company reports revenue on a gross basis for event hosting, event planning and execution, brand promotion, and other services (except for advertisement distribution), as the Company takes risk and control of the event, activities, online program, or brand solution before they are transferred to customers. While in terms of advertisement distribution, the Company reports revenue on a net basis since it only arranges the distribution of advertisements, instead of taking the risk and control of the distribution resources. The Company applies a practical expedient to make no adjustment for the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised service to a customer and when the customer pays for that service will be one year or less. The following table identifies the disaggregation of the Company’s revenue for the fiscal years ended June 30, 2023, 2022, and 2021 respectively: For the fiscal years ended June 30, 2023 2022 2021 Revenue from operations: Event hosting $ 4,348,303 $ 14,711,787 $ 14,978,643 Brand promotion 9,650,274 8,733,764 750,315 Event planning and execution 4,132,477 8,420,328 9,196,773 Other services 412,189 415,664 600,826 Total revenue $ 18,543,243 $ 32,281,543 $ 25,526,557 Deferred revenue The Company presents the consideration that a customer pays before the Company transfers a service to the customer as a contract liability (deferred revenue) when the payment is made. Deferred revenue is the Company’s obligation to transfer services to a customer for which the Company has received consideration from the customer. As of June 30, 2022 and 2023, the balance of deferred revenue amounted to $47,710 and $393,003, respectively, and the movement of deferred revenue was as below. Amount June 30, 2020 $ 1,764,608 Addition 8,070,036 Recognized as revenue within the fiscal year ended June 30, 2021 (8,185,797 ) June 30, 2021 1,648,847 Addition 47,710 Recognized as revenue within the fiscal year ended June 30, 2022 (1,648,847 ) June 30, 2022 47,710 Addition 393,003 Recognized as revenue within the fiscal year ended June 30, 2023 (47,710 ) June 30, 2023 $ 393,003 The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. (o) Cost of revenue Cost of revenue consists primarily of event design costs, online program production costs, salary and benefits expenses, materials costs, and other related expenses. (p) Selling and marketing expenses All expenses related to selling and marketing are expensed as incurred. For the fiscal years ended June 30, 2021, 2022, and 2023, selling and marketing costs amounted to $133,387, $380,723, and $4,646,875, respectively. For the fiscal years ended June 30, 2021, 2022, and 2023, advertising expenses amounted to $51,170, $48,716, and $1,518,981, respectively. (q) Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of June 30, 2022 and 2023. The Company’s affiliated entities in the PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 (approximately $14,381). In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. As of June 30, 2023, the tax years ended December 31, 2017 through December 31, 2022 for the Company’s affiliated entities in the PRC remain open for statutory examination by PRC tax authorities. (r) Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s affiliated entities located in China is the Renminbi (“RMB”). For the entities whose functional currency is RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in determining comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The consolidated balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at RMB7.2513 to $1.00 and at RMB6.6981 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the fiscal years ended June 30, 2023, 2022, and 2021 were RMB6.9534 to $1.00, RMB6.4554 to $1.00, and RMB6.6228 to $1.00, respectively. (s) Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (for example, convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The Company had no dilutive securities as of and for the fiscal years ended June 30, 2021, 2022, and 2023. (t) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. (u) Commitments and contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. (v) Concentration and credit risk Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions require submitting a payment application form together with suppliers’ invoices, shipping documents, and signed contracts. The Company maintains certain bank accounts in the PRC, where under the Deposit Insurance System in China, Hong Kong, and Cayman Islands. In China, a company’s deposits at one bank are insured for a maximum of RMB500,000 in the event of bank failure. According to press release of China Securities Times and China News on July 13, 2023, Hong Kong Monetary Authority proposed that the upper limit of deposit protection in Hong Kong be enhanced to HK$800,000 from HK$500,000. In Cayman Islands, deposits are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. As of June 30, 2022 and 2023, $5,281,823 and $724,437 of the Company’s cash were on deposit at financial institutions in the PRC, respectively, and $9,113,548 and $2,026,858 of the Company’s cash were on deposit at financial institutions in Hong Kong, respectively. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenue and accounts receivable with specific customers. For the fiscal year ended June 30, 2021, three major customers accounted for approximately 23%, 12%, and 8% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2022, three major customers accounted for approximately 30%, 13%, and 7% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2023, three major customers accounted for approximately 10%, 10%, and 9% of the Company’s total revenue, respectively. As of June 30, 2022, the top five customers accounted for 72% of net accounts receivable as of June 30, 2022, with each customer representing 35%, 14%, 9%, 7%, and 7% of the net accounts receivable balance, respectively. As of June 30, 2023, the top five customers accounted for 68% of net accounts receivable as of June 30, 2023, with each customer representing 31%, 19%, 7%, 6%, and 5% of the net accounts receivable balance, respectively. For the fiscal year ended June 30, 2023, the Company purchased approximately 16.56%, 12.91%, and 10.61% of its services from three major suppliers, respectively. For the fiscal year ended June 30, 2022, the Company purchased approximately 8.59%, 7.88%, and 5.63% of its services from three major suppliers, respectively. For the fiscal year ended June 30, 2021, the Company purchased approximately 14%, 13%, and 12% of its services from three major suppliers, respectively. (w) Segment reporting The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources, and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company’s CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical segments are presented. (x) Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management, and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in “Note 11—Related Party Transactions.” (y) Non-controlling interests A non-controlling interest in the VIE represents the portion of the equity (net assets) in the VIE that has not been pledged to WFOE, consequently not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests respectively. On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 14—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE is entitled to 100% of the net income of Pop Culture. Upon this transaction, the Company consummated the acquisition of non-controlling interest in Pop Culture. On August 18, 2020, Pop Sikai was incorporated, 49% of which represented a non-controlling interest. Pop Sikai was dissolved and deregistered on June 27, 2023. Since Pop Sikai had no profit or loss during the fiscal year ended June 30, 2023, no net income or net loss was allocated to non-controlling interest. On May 18, 2022, Fujian Shuzhi was incorporate. As of June 30, 2023, Fuzhou Xinsiyu Culture Communication Co., Ltd., an unrelated third party, holds 49% of the equity interests in this entity. (z) Recent accounting pronouncements In June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For all other entities including emerging growth companies, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted ASU 2016-13 since July 1, 2021, the impact of which on the Company’s consolidated financial statements was immaterial. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Jun. 30, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET As of June 30, 2023 and 2022, accounts receivable consisted of the following: As of June 30, 2023 2022 Accounts receivable $ 24,000,374 $ 28,094,299 Less: allowance for credit losses (4,358,037 ) (1,815,665 ) Accounts receivable, net $ 19,642,337 $ 26,278,634 An analysis of the allowance for credit losses was as follows: As of June 30, 2023 2022 Balance at beginning of the year $ 1,815,665 $ 563,789 Additional provision charged to expense 2,795,662 1,319,925 Foreign exchange (253,290 ) (68,049 ) Balance at the end of the year $ 4,358,037 $ 1,815,665 The Company recorded bad debt expenses of $180,408, $1,319,925, and $2,795,662 for the fiscal years ended June 30, 2021,2022, and 2023, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jun. 30, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of June 30, 2023 and 2022, prepaid expenses and other current assets consisted of the following: As of June 30, 2023 2022 Deferred costs (1) $ 683 $ 783,798 Deferred offering costs - - Other receivables 109,100 36,559 109,783 820,357 Allowance for credit losses (2) (13,791 ) (14,930 ) $ 95,992 $ 805,427 An analysis of the allowance for credit losses was as follows: As of June 30, 2023 2022 Balance at beginning of the year $ 14,930 $ 27,887 Reverse - (12,407 ) Foreign exchange (1,139 ) (550 ) Balance at the end of the year $ 13,791 $ 14,930 (1) Deferred costs represent the costs incurred to fulfill a contract with a customer which relates directly to a contract that the Company can specifically identify, generate, or enhance resources of the Company that will be used in satisfying performance obligations in the future as well as are expected to be recovered. As of June 30, 2022, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances to be carried out subsequently in July and December 2022. As of June 30, 2023, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances to be carried out subsequently in July and December 2023. (2) The Company recorded bad debt expenses of $27,887, negative $12,407, and nil |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT As of June 30, 2023 and 2022, property and equipment consisted of the following: As of June 30, 2023 2022 Leasehold improvement $ 939,825 $ 17,394 Building 456,748 - Office equipment 115,314 85,939 1,511,887 103,333 Less: accumulated depreciation (667,273 ) (31,570 ) $ 844,614 $ 71,763 For the fiscal years ended June 30, 2021, 2022, and 2023, depreciation expenses amounted to $28,902, $60,600, and $665,431, respectively. |
Intangible Asset, Net
Intangible Asset, Net | 12 Months Ended |
Jun. 30, 2023 | |
Intangible Asset, Net [Abstract] | |
INTANGIBLE ASSET, NET | 6. INTANGIBLE ASSET, NET As of June 30, 2023 and 2022, intangible assets, net consisted of the following: As of June 30, 2023 2022 Copyright licenses $ 1,963,676 $ 2,845,857 SaaS 137,906 149,296 2,101,582 2,995,153 Less: accumulated amortization (918,405 ) (790,742 ) Less: impairment for production copyright (1,063,658 ) - $ 119,519 $ 2,204,411 Copyright Licenses of Move it Acquired intangible assets are recognized based on their cost to the Company, which generally includes the transaction costs of the asset acquisition. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment by testing for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would use if they were pricing the intangible asset. The useful life of the Company’s intangible assets is 10 years, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to the Company’s future cash flows. Currently the MOVE IT project is losing money, the carrying value of the amortizable intangible asset could not be recoverable due to the poor financial performance, including declining customer numbers. The Company recognized a $1.1 million impairment loss for the production copyright. SaaS Software The SaaS software is used for the administration of hip-hop dance training institutions. The SaaS software was purchased from a related party, Shenzhen HipHopJust Information Technology Co., Ltd., in January 2022 for a total cash consideration of RMB1,000,000 (equivalent to $154,909). For the fiscal years ended June 30, 2021, 2022, and 2023, amortization expense amounted to $215,003, $249,743, and $915,155, respectively. The following is a schedule, by fiscal years, of amortization amount of intangible asset as of June 30, 2023: 2024 $ 13,791 2025 13,791 2026 13,791 2027 13,791 2028 13,791 Thereafter 50,564 Total $ 119,519 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2023 | |
Other Non-Current Assets [Abstract] | |
Other non-current assets | 7. OTHER NON-CURRENT ASSETS As of June 30, 2023 2022 Prepayment of developing a metaverse platform - 4,597,232 Prepayment of developing non-fungible tokens (“NFTs”) - 2,800,000 Prepayment of brand authorization 4,600,000 - Prepaid consulting fees 462,967 925,933 Prepaid renovation expenses - 886,367 Prepayment of copyright licenses - 580,000 Prepaid royalties - 95,798 Security deposit 16,260 55,425 Others 41,372 68,445 Total $ 5,120,599 $ 10,009,200 As of June 30, 2023, other non-current assets mainly consisted of the prepayment for brand authorization in the amount of $4,600,000. It included the payment to Wanyee Trading Company Limited and Lihe Trading Limited for negotiating with the brand owner of “Stussy” and “fear of god” for acting as an agent for these brands in mainland China. As of June 30, 2022, other non-current assets also consisted of the prepayment for the development of a metaverse platform including the service of platform planning, design, platform framework and related system development from February 8, 2022 to December 31, 2022 for a total cash consideration of $4,600,000. The development of NFTs includes the service of planning, designing, and developing no less than 30 NFT products and no less than five metaverse battle scenes with the theme of martial arts and street dance from April 10, 2022 to April 9, 2023 for a total cash consideration of $4,000,000. Due to the uncertainties of revenue generation from the two projects, the management of the Company decided to expense the two items in the Research and Development account. |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities and Other Payables [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | 8. ACCRUED LIABILITIES AND OTHER PAYABLES As of June 30, 2023 and 2022, accrued liabilities and other payables consisted of the following: As of June 30, 2023 2022 Payroll payables $ 92,856 $ 126,336 Other payables 122,186 102,873 $ 215,042 $ 229,209 |
Taxes Payable
Taxes Payable | 12 Months Ended |
Jun. 30, 2023 | |
Taxes Payable [Abstract] | |
TAXES PAYABLE | 9. TAXES PAYABLE As of June 30, 2023 and 2022, taxes payable consisted of the following: As of June 30, 2023 2022 Corporate income tax $ 3,495,646 $ 3,946,227 Value-added tax (“VAT”) 828,488 746,975 Related surcharges on VAT payable 108 2,224 IIT 702 1,841 Other tax 2,238 - $ 4,327,182 $ 4,697,267 |
Bank Loans
Bank Loans | 12 Months Ended |
Jun. 30, 2023 | |
Bank Loans [Abstract] | |
BANK LOANS | 10. BANK LOANS Bank loans represent the amounts due to various banks. As of June 30, 2023 and 2022, short-term and current portion of long-term bank loans consisted of the following: a) Summary of short-term bank loans is as follows: Annual Interest As of June 30, Rate Maturities 2023 2022 Short-term loans: Xiamen Bank (1) 5.22 % June 16, 2023 - 447,888 Xiamen Bank (1) 5.22 % June 16, 2023 - 298,592 Bank of China Ltd. (3) 4.25 % May 24, 2024 979,135 - Industrial Bank Co., Ltd. (2) 4.80 % December 20, 2022 - 1,492,960 Bank of China Ltd. (3) 4.70 % June 1, 2023 - 1,194,370 Industrial Bank Co., Ltd. 4.80 % December 7, 2023 1,379,063 - China Merchants Bank (4) 4.93 % March 29, 2024 372,347 - Xiamen Bank (1) 4 % June 25,2024 551,625 - Industrial and Commercial Bank (5) 3.65 % September 23, 2023 689,532 - Subtotal 3,971,702 3,433,810 Long-term loans-current portion: Bank of China Ltd. (3) 3.80 % November 26, 2023 330,975 89,579 Bank of China Ltd. (3) 4.15 % December 29,2023 772,275 209,014 Bank of China Ltd. (3) 5.10 % April 15, 2024 55,163 59,718 Subtotal $ 1,158,413 $ 358,311 b) Summary of long-term bank loans is as follows: Annual Interest As of June 30, Rate Maturities 2023 2022 Long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 $ - $ 313,522 Bank of China Ltd. (3) 4.15 % December 29, 2023 - 731,551 Bank of China Ltd. (3) 5.10 % April 15, 2024 - 209,014 Total $ - $ 1,254,087 The weighted average interest rate on short-term bank loans outstanding as of June 30, 2022 and 2023 was 4.86% and 4.53%, respectively. The effective interest rate for bank loans was approximately 6.26%, 4.87%, and 4.60% for the fiscal years ended June 30, 2021, 2022, and 2023, respectively. For the fiscal years ended June 30, 2021, 2022, and 2023, interest expenses related to bank loans amounted to $228,806, $266,126, and $226,296, respectively. (1) Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. (2) On February 4, 2021, Pop Culture entered into a factoring agreement with Industrial Bank Co., Ltd. and received a total of RMB10,000,000 (equivalent to $1,548,491) on February 4, 2021 by factoring the receivables due from customers of RMB13,000,000 (equivalent to $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. (3) Loans from Bank of China were jointly guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company and Pop Culture. (4) The loan was guaranteed by Mr. Zhuoqin Huang. (5) The loan was guaranteed by Pop Culture. As of June 30, 2023, the Company’s future long-term loan obligations according to the terms of the loan agreement are as follows: USD 2024 1,158,413 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Balances and Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 11. RELATED PARTY BALANCES AND TRANSACTIONS On January 19, 2022, Shenzhen HipHopJust Information Technology Co., Ltd. transferred its all software, applets, program source code, and trademarks required to operate the JamBox system indefinitely to Shenzhen Jam Box for the amount of RMB1,000,000 (equivalent to $154,909). The software transferred included JamBox store management system, JAMYO software on Android platform mobile phones, and Hip Dance Jam software on Android platform mobile phones. In February, March, April, and June of 2023, Shuzhi Sports paid RMB96,300 (equivalent to $13,280) in total to Weiyi Lin, vice president and director of the Company, for live broadcasting projects. In February, March, April, and May of 2023, the Company paid $95,993 in total to Weiyi Lin for petty cash and project borrowings. Shenzhen Jam Box repaid the loan RMB1,000,000 (approximately $143,810) to Shenzhen HipHopJust Information Technology Co., Ltd. in November 2022. Loan guarantees for the Company provided by Mr. Zhuoqin Huang and his spouse, please refer to “Note 10—Bank Loans.” |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Cayman Islands The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%. PRC Generally, WFOE, Pop Culture, Pupu Sibo, Pop Network, Guangzhou Shuzhi, Shenzhen Pop, and Pop Sikai, which were incorporated in PRC, are subject to enterprise income tax on their taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. According to Taxation 2019 No. 13, which was effective from January 1, 2019 to December 31, 2021, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3 million. A small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of 5% on its taxable income below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million. During the fiscal year ended June 30, 2021, WFOE, Pupu Sibo, and Shenzhen Pop were qualified as small-scale and low-profit enterprises. The impact of the tax holidays noted above decreased current income taxes by $ nil nil i) The components of the income tax provision were as follows: For the fiscal years ended June 30, 2023 2022 2021 Current income tax provision $ 218,962 $ 1,205,276 $ 1,464,674 Deferred income tax benefit 455,602 (334,045 ) (47,802 ) Total $ 674,564 $ 871,231 $ 1,416,872 The following table reconciles the statutory rate to the Company’s effective tax rate for the fiscal years ended June 30, 2023, 2022, and 2021: For the fiscal years ended June 30, 2023 2022 2021 China Statutory income tax rate 25.00 % 25.00 % 25.00 % Temporary difference (4.76 )% 21.04 - Permanent difference (0.01 )% 1.03 % 0.71 % Effect of different tax jurisdiction (10.10 )% 8.81 - Effect of favorable tax rates on small-scale and low-profit entities 0.41 % - % (0.79 )% Change in valuation allowance (13.28 )% - % - % Effective tax rate (2.74 )% 55.88 % 24.92 % The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that gives rise to deferred tax asset as of June 30, 2023 and 2022 was as follows: As of June 30, 2023 2022 Deferred tax assets: Net operating loss carry forwards $ 3,266,711 $ - Allowance for doubtful accounts 1,092,957 457,649 Total deferred tax assets 4,359,668 457,649 Valuation allowance (4,359,668 ) - Total deferred tax assets, net $ - $ 457,649 |
Lease
Lease | 12 Months Ended |
Jun. 30, 2023 | |
Lease [Abstract] | |
LEASE | 13. LEASE Supplemental balance sheet information related to the operating lease was as follows: As of June 30, 2023 2022 Right-of-use assets $ 84,892 $ 461,399 Operating lease liabilities - current $ 65,115 $ 208,926 Operating lease liabilities - non-current 39,634 250,178 Total operating lease liabilities $ 104,749 $ 459,104 Our principal executive offices are located in Xiamen, Fujian, China, where Xiamen Pop Culture leases an office in Xiamen from an independent third party with an area of approximately 434 square meters, with a lease term of one year from January 20, 2023 to January 19, 2024 and a monthly rent of RMB12,154 (approximately $1,676). Guangzhou Shuzhi leases an office in Guangzhou from an independent third party with an area of approximately 71 square meters, with a lease term of two years from August 1, 2022 to August 1, 2024 and a monthly rent of RMB5000 (approximately $690). Guangzhou Shuzhi purchased the building in October 2022, and terminated the lease agreement. Guangzhou Shuzhi leases an office in Guangzhou from an independent third party with an area of approximately 68 square meters, with a lease term of one and half years from January 1, 2022 to July 31, 2023. The monthly rent from January 1, 2022 to July 31, 2022 was RMB10,976 (approximately $1,514), and RMB11,628 (approximately $1,604) from August 1, 2022 to July 31, 2023. On February 1, 2023, the monthly rent was changed to RMB9,113 (approximately $1,257). Guangzhou Shuzhi leased an office in Guangzhou from an independent third party with an area of approximately 284 square meters, with a lease term of one and half years from January 1, 2022 to July 31, 2023. The monthly rent from January 1, 2022 to July 31, 2022 was RMB44,012 (approximately $6,070), and RMB46,635 (approximately $6,431) from August 1, 2022 to July 31, 2023. The lease agreement was terminated on February 1, 2023. Pop Network leases an office in Xiamen from an independent third party with an area of approximately 501 square meters, with a lease term of one year from March 21, 2023 to March 20, 2024 and a monthly rent of RMB12,523 (approximately $1,727). Xiamen Pop Culture leases offices from an independent third party with an area of approximately 22,227 square meters, with a lease term from March 1, 2022 to February 28, 2025 and a monthly rent of RMB50,000 (approximately $6,952) and an increase in the monthly rent every year. The lease agreement was terminated on December 31, 2022. Shenzhen Pop leases an office in Shenzhen from an independent third party with an area of approximately 294 square meters, with a lease term of one year from March 9, 2022 to March 8, 2025 and a monthly rent of RMB38,408 (approximately $5,297). Pupu Digital leases an office in Xiamen from an independent third party with an area of approximately 930 square meter, with a lease term of one year from March 21, 2023 to March 20, 2024 and a monthly rent of RMB27,888 (approximately $3,846). The weighted average remaining lease terms and discount rates for the operating lease of Shenzhen Pop as of June 30, 2023 were as follows: Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.15 Weighted average discount rate 6.92 % During the fiscal years ended June 30, 2021, 2022, and 2023, the Company incurred total operating lease expenses of $107,139, $84,552, and $84,627, respectively. As of June 30, 2023, the future minimum rent payable under the non-cancelable operating lease for fiscal years ended June 30 were: 2024 $ 64,646 2025 49,556 Thereafter - Total lease payments 111,202 Less: imputed interest (6,453 ) Present value of lease liabilities $ 104,749 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Jun. 30, 2023 | |
Ordinary Shares [Abstract] | |
ORDINARY SHARES | 14. ORDINARY SHARES On January 3, 2020, 9,165,000 ordinary shares, par value $0.001 per share, were held by Joya Enterprises Limited. On February 22, 2020, the Company issued 3,760,911 ordinary shares, par value $0.001 per share, to certain founding shareholders, and 2,015,400 ordinary shares to two new shareholders who made the capital injection of $2,557,654 in October 2019. On April 28, 2020, shareholders of the Company approved the re-designation of 5,763,077 of the Company’s issued ordinary shares held by Joya Enterprises Limited into 5,763,077 Class B ordinary shares and an aggregate of 9,178,234 of the Company’s issued ordinary shares held by Joya Enterprises Limited and certain other shareholders into 9,178,234 Class A ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. In respect of matters requiring a shareholder vote, each holder of Class A ordinary shares will be entitled to one vote per one Class A ordinary share and each holder of Class B ordinary shares will be entitled to seven votes per one Class B ordinary share. The Class A ordinary shares are not convertible into shares of any other class. The Class B ordinary shares are convertible into Class A ordinary shares at any time after issuance at the option of the holder on a one-to-one basis. On May 30, 2020, the Company issued 500,000 Class A ordinary shares to two original shareholders of Pop Culture for a nominal cash consideration of $500 as part of the Reorganization. The shares and per share data as of June 30, 2019 are presented on a retroactive basis to reflect the above share issuances and re-designation. On May 30, 2020, the Company also issued an aggregate of 1,343,600 Class A ordinary shares to five new investors for a cash consideration of $1,707,893 pursuant to certain share purchase agreements entered into on September 30, 2019. This share issuance is presented on a prospective basis. On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture, which resulted in Pop Culture becoming a VIE fully controlled by the Company. The Company has accounted this acquisition of non-controlling interest as an equity transaction with no gain or loss recognized in accordance with ASC 810-10-45. The subscription receivable presents the receivable for the issuance of ordinary shares of the Company and is reported as a deduction of equity. Subscription receivable has no payment terms nor any interest receivable accrual. On July 2, 2021, the Company closed its initial public offering of 6,200,000 Class A ordinary shares. The Class A ordinary shares were priced at $6.00 per share, and the offering was conducted on a firm commitment basis. The Company received an aggregate amount of $34,839,398 representing payment in full to the Company of the purchase price for 6,200,000 shares in the aggregate amount of $37,200,000 less underwriting discounts and expenses pursuant to the underwriting agreement dated June 30, 2021. On October 9, 2023, the Company held an extraordinary meeting of shareholders, during which the shareholders approved a proposal to effect a share consolidation of each 10 ordinary shares with par value of US$0.001 each in the Company’s issued and unissued share capital into one ordinary share with par value of US$0.01 each. Consolidation became effective on October 26, 2023, and the Class A Ordinary Shares began trading on a post-Share Consolidation basis on the Nasdaq Capital Market when the market opened on October 27, 2023 under the same symbol “CPOP.” No fractional shares were issued in connection with the Share Consolidation. All fractional shares were rounded up to the whole number of shares. Each 10 pre-split ordinary shares outstanding automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholders. The Company has retroactively restated all share and per share data for all of the periods presented pursuant to ASC 260 to reflect the Share Consolidation. |
Statutory Reserve
Statutory Reserve | 12 Months Ended |
Jun. 30, 2023 | |
Statutory Reserve [Abstract] | |
STATUTORY RESERVE | 15. STATUTORY RESERVE WFOE, Pop Culture, Pupu Sibo, Pop Network, Guangzhou Shuzhi, Shenzhen Pop, and Pop Sikai are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital, which was $2,200,124 and $2,207,933 as of June 30, 2022 and 2023, respectively. This statutory reserve is not distributable in the form of cash dividends. For the fiscal years ended June 30, 2023, 2022, and 2021, the Company provided statutory reserve as follows: Balance - June 30, 2020 $ 779,094 Appropriation to statutory reserve 462,479 Balance - June 30, 2021 1,241,573 Appropriation to statutory reserve 257,796 Balance - June 30, 2022 1,499,369 Appropriation to statutory reserve 37,859 Balance - June 30, 2023 $ 1,537,228 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2023 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 16. RESTRICTED NET ASSETS Relevant PRC laws and regulations restrict WFOE, Pop Culture, and subsidiaries of Pop Culture from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital, additional paid-in-capital and statutory reserves to the Company in the form of loans, advances, or cash dividends. Relevant PRC statutory laws and regulations permit the payments of dividends by WFOE, Pop Culture, and subsidiaries of Pop Culture from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. As of June 30, 2022 and 2023, the balance of restricted net assets was $16,791,325 and $16,378,052, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS The Company has evaluated events subsequent to the balance sheet date of June 30, 2023 through October 31, 2023, the date on which the consolidated financial statements were issued. Fujian Shuzhi Fuxin Exhibition Co., Ltd. was dissolved on October 7, 2023. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Jun. 30, 2023 | |
Parent Company Only Condensed Financial Information [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 18. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The Company performed a test on the restricted net assets of its consolidated subsidiaries, the VIE, and the VIE’s subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only. The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. As of June 30, 2023, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements. Condensed Balance Sheets As of June 30, 2023 2022 ASSETS CURRENT ASSETS Cash $ 1,095,007 $ 9,085,082 Prepaid expenses and other current assets 4,179,826 4,250,071 Due from subsidiaries and the VIE 2,607,402 - TOTAL CURRENT ASSETS 7,882,235 13,335,153 Intangible asset, net - 696,000 Other non-current assets 5,062,966 8,903,166 Investments in subsidiaries, consolidated VIE, and VIE’s subsidiaries 13,821,695 29,919,831 TOTAL ASSETS 26,766,896 52,854,150 LIABILITIES AND SHAREHOLDERS’ EQUITY Other Payable $ 31,600 $ 90,165 TOTAL CURRENT LIABILITIES $ 31,600 $ 90,165 TOTAL LIABILITIES 31,600 90,165 SHAREHOLDERS’ EQUITY Ordinary shares (par value $0.01 per share; 4,400,000 Class A ordinary shares authorized, 1,828,693 Class A ordinary shares issued and outstanding as of June 30, 2022 and 2023, respectively; 600,000 Class B ordinary shares authorized, 576,308 Class B ordinary shares issued and outstanding as of June 30, 2022 and 2023)* 24,050 24,050 Subscription receivable (15,441 ) (15,441 ) Additional paid-in capital 40,174,260 40,158,643 Retained earnings (11,802,701 ) 12,527,714 Accumulated other comprehensive (loss) income (1,644,872 ) 69,019 TOTAL SHAREHOLDERS’ EQUITY 26,735,296 52,763,985 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 26,766,896 $ 52,854,150 * Retroactively restated to reflect 1-for-10 share consolidation effective on October 26, 2023 Condensed Statements of Operations and Comprehensive Income (Loss) For the fiscal years ended June 30, 2023 2022 2021 Revenue $ 257,169 $ - $ - Cost of Revenue 150,000 - - Gross profit $ 107,169 - $ - Selling expenses 125,000 - - General and administrative expenses $ 1,128,970 $ 1,594,856 $ 330,734 Financial expenses (income) (1,452 ) (11,094 ) - Research and development expenses 8,671,107 - - Income (Loss) from operation (9,816,456 ) (1,583,762 ) (330,734 ) Other income (loss) (114,097 ) Share of income (loss) of subsidiaries, consolidated VIE, and VIE’s subsidiaries (14,399,862 ) 2,371,720 4,598,276 Income (loss) before income tax expenses (24,330,415 ) 787,958 4,267,542 Income tax expenses - - - Net income (loss) $ (24,330,415 ) $ 787,958 $ 4,267,542 Other Comprehensive income (loss) Foreign currency translation income (loss) (1,713,891 ) (873,803 ) 1,335,757 Total comprehensive income (loss) $ (26,044,306 ) $ (85,845 ) $ 5,603,299 Condensed Statements of Cash Flows For the fiscal years ended June 30, 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (24,330,415 ) $ (8,226,043 ) $ (75,805 ) Depreciation and amortization 696,000 - - Equity loss (income) of subsidiaries 14,399,862 - - Other current assets 70,245 - - Other payable (58,565 ) - - Due from subsidiaries and the VIE (2,607,402 ) - - Other non-current assets 8,440,200 - - Net cash used in operating activities $ (3,390,075 ) $ (8,226,043 ) $ (75,805 ) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in a subsidiary - (11,050,252 ) (600,000 ) Purchase of intangible assets - (720,000 ) - Advance paid for agent license (4,600,000 ) - - Net cash used in investing activities (4,600,000 ) (11,770,252 ) (600,000 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of shares - 33,521,725 - Payment for deferred offering costs - (3,570,805 ) (459,164 ) Net cash provided by (used in) financing activities - 29,950,920 (459,164 ) Effect of exchange rate changes - (873,803 ) - Net increase (decrease) in cash (7,990,075 ) 9,080,822 (1,134,969 ) Cash at beginning of period 9,085,082 4,260 1,139,229 Cash at end of period $ 1,095,007 $ 9,085,082 $ 4,260 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE, and subsidiaries of the VIE. All inter-company transactions and balances have been eliminated upon consolidation. |
Use of estimates | (b) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates. |
Going Concern and Management’s Plan | (c) Going Concern and Management’s Plan The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company incurred operating loss of $24.42 million and generated negative operating cash flows of $5.96 million for fiscal year ended June 30, 2023. The Company has developed plans and implemented measures to address the going concern issue. The Company’s management is diligently overseeing its operating costs and capital needs, and is fully dedicated to exploring new customer and business opportunities In fiscal years 2022 and 2023, the Company's management has taken significant steps to control and reduce expenses. These measures include implementing more rigorous approval processes for various expenditures, establishing new performance appraisal standards, terminating underperforming employees, eliminating certain positions, and renegotiating contracts with specific vendors. In addition, the Company has dissolved unprofitable subsidiaries to curtail operating losses and cash depletion. Notably, the Company secured a $200 million financing facility in November 2022. Simultaneously, the company will continue to pursue and secure bank loans to support its ongoing operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. |
Fair value measurements | (d) Fair value measurements The Company applies ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible for considering the carrying amount of cash, accounts receivable, advance to suppliers, prepaid expenses and other current assets, short-term bank loans, accounts payable, deferred revenue, taxes payable, and accrued liabilities and other payables based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. |
Cash | (e) Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in China. As of June 30, 2022 and 2023, cash balances were $14,396,032 and $2,751,309, respectively. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. |
Accounts receivable, net | (f) Accounts receivable, net Accounts receivables are stated at the historical carrying amount net of allowance for expected credit losses. The Company adopted ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” on January 1, 2021 using a modified retrospective approach. The Company also adopted this guidance to notes receivable, advance to suppliers, other receivables and long-term prepayments. To estimate expected credit losses, the Company has identified the relevant risk characteristics of its customers and the related receivables. The Company considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Company’s customer collection trends. The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. |
Advance to suppliers | (g) Advance to suppliers Advance to suppliers primarily consists of the prepayments to the service and materials suppliers for the Company’s event hosting, planning, and execution. The Company maintains an allowance for doubtful accounts to state prepayments at their estimated realizable value based on a variety of factors, including the possibility of releasing the prepayments into services and materials, significant one-time events, and historical experience. |
Property and equipment, net | (h) Property and equipment, net Property and equipment comprise office building, equipment, and motor vehicles. They are recorded at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Building 20 Years Office equipment 3 to 5 Years Motor vehicles 10 Years Leasehold improvement Shorter of useful life or lease term |
Intangible asset, net | (i) Intangible asset, net Intangible asset is stated at cost less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The balance of intangible asset represents a software that the Company purchased externally and is amortized straight-line over 10 years in accordance with the way the Company estimates to generate economic benefits from such software. |
Impairment of long-lived assets | (j) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded the impairment charge of nil nil |
Right-of-use assets | (k) Right-of-use assets The Company has 5 operating lease for office, including an option to renew which is not at the Company’s sole discretion. The renewal to extend the lease term is not included in the Company’s right-of-use (“ROU”) assets and lease liability as they are not reasonably certain of exercise. The Company regularly evaluates the renewal option, and, when it is reasonably certain of exercise, the Company will include the renewal period in its lease term. New lease modifications result in re-measurement of the ROU assets and lease liability. The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. Effective July 1, 2017, the Company adopted ASC 842, Leases using a modified retrospective transition method. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. Adoption of ASC 842 resulted in the recording of operating lease ROU assets and corresponding operating lease liability as disclosed in “Note 13—Lease” and had no impact on accumulated profit as of July 1, 2017. ROU assets and related lease obligation are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company’s lease is classified as operating lease for the office space. Operating lease ROU assets are presented within non-current assets on the consolidated balance sheet and the operating lease liability is classified as current and non-current on the consolidated balance sheet. |
Value added tax (“VAT”) | (l) Value added tax (“VAT”) The Company’s affiliated entities in the PRC, including WFOE, Pop Culture, and subsidiaries of Pop Culture, are subject to PRC VAT for providing services. The applicable VAT rate for these companies was 6% for the fiscal years ended June 30, 2023, 2022, and 2021. The amount of VAT liability is determined by applying the applicable tax rates to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company reports revenue net of PRC VAT for all the periods presented in the consolidated statements of operations. |
Operating lease liability | (m) Operating lease liability Lease where substantially all the reward and risk of ownership of asset remain with the leasing company is accounted for as operating lease. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease period. |
Revenue recognition | (n) Revenue recognition On July 1, 2017, the Company adopted ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. The adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. ASC 606 establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the Company’s contracts to provide services to customers. The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to the performance obligations in the contract; and Step 5: Recognize revenue when the company satisfies a performance obligation. The Company mainly generates revenue from event hosting, event planning and execution, and brand promotion, and other services. Event hosting - Event planning and execution - Brand promotion - Other services The Company accounts for a contract of event hosting, event planning and execution, or brand promotion when it has legally enforceable rights and obligations and collectability of consideration is probable. Each contract typically contains one single performance obligation, which is to deliver a successful event, activity, qualified online program or video, or brand solution, and the contract price is fixed. Contract terms typically include a customary requirement for payment within 180 days after the Company successfully provides services, which is indicated by the customer’s signed acknowledgement of completion on such event, activity, online program, or brand solution by providing the Company with completion confirmation forms. For event hosting, event planning and execution, and brand promotion, revenue is recognized at a point of time when services are successfully provided (e.g., upon successful carryout of an event), which is indicated by the customer’s acknowledgement of completion on such event, activity, online program or video, or brand solution, as the customer neither simultaneously receives and consumes the benefits provided by the Company’s performance nor controls an increasingly enhanced asset or an asset with an alternative use to the customer as the Company performs. Event hosting, event planning and execution, and brand promotion projects are generally short term, which usually take less than three months. For digital collections, the PRC operating entities sell digital collections through its own digital collection sales platform. After the customer purchases the digital collection issued on the platform and the digital collection is delivered to the customer, the revenue is recognized. For music recording service, revenue is recognized at a point of time when services are successfully provided which is indicated by the customer’s acknowledgement of completion on the recording. For SaaS software services, revenue is recognized after the completion of the service provision. The PRC operating entities reach an annual framework service contract with the customer and charge a one-time service fee. Revenue is recognized on a monthly average basis within the service period. For distribution of advertisements, the Company satisfies its performance obligation over time by measuring the progress based on time elapsed, as the customer simultaneously receives and consumes the benefit of service provided, during the period of time when the advertisement is displayed. Payment is usually required within 180 days after the completion of distribution. The Company reports revenue on a gross basis for event hosting, event planning and execution, brand promotion, and other services (except for advertisement distribution), as the Company takes risk and control of the event, activities, online program, or brand solution before they are transferred to customers. While in terms of advertisement distribution, the Company reports revenue on a net basis since it only arranges the distribution of advertisements, instead of taking the risk and control of the distribution resources. The Company applies a practical expedient to make no adjustment for the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised service to a customer and when the customer pays for that service will be one year or less. The following table identifies the disaggregation of the Company’s revenue for the fiscal years ended June 30, 2023, 2022, and 2021 respectively: For the fiscal years ended June 30, 2023 2022 2021 Revenue from operations: Event hosting $ 4,348,303 $ 14,711,787 $ 14,978,643 Brand promotion 9,650,274 8,733,764 750,315 Event planning and execution 4,132,477 8,420,328 9,196,773 Other services 412,189 415,664 600,826 Total revenue $ 18,543,243 $ 32,281,543 $ 25,526,557 Deferred revenue The Company presents the consideration that a customer pays before the Company transfers a service to the customer as a contract liability (deferred revenue) when the payment is made. Deferred revenue is the Company’s obligation to transfer services to a customer for which the Company has received consideration from the customer. As of June 30, 2022 and 2023, the balance of deferred revenue amounted to $47,710 and $393,003, respectively, and the movement of deferred revenue was as below. Amount June 30, 2020 $ 1,764,608 Addition 8,070,036 Recognized as revenue within the fiscal year ended June 30, 2021 (8,185,797 ) June 30, 2021 1,648,847 Addition 47,710 Recognized as revenue within the fiscal year ended June 30, 2022 (1,648,847 ) June 30, 2022 47,710 Addition 393,003 Recognized as revenue within the fiscal year ended June 30, 2023 (47,710 ) June 30, 2023 $ 393,003 The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. |
Cost of revenue | (o) Cost of revenue Cost of revenue consists primarily of event design costs, online program production costs, salary and benefits expenses, materials costs, and other related expenses. |
Selling and marketing expenses | (p) Selling and marketing expenses All expenses related to selling and marketing are expensed as incurred. For the fiscal years ended June 30, 2021, 2022, and 2023, selling and marketing costs amounted to $133,387, $380,723, and $4,646,875, respectively. For the fiscal years ended June 30, 2021, 2022, and 2023, advertising expenses amounted to $51,170, $48,716, and $1,518,981, respectively. |
Income taxes | (q) Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of June 30, 2022 and 2023. The Company’s affiliated entities in the PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 (approximately $14,381). In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. As of June 30, 2023, the tax years ended December 31, 2017 through December 31, 2022 for the Company’s affiliated entities in the PRC remain open for statutory examination by PRC tax authorities. |
Foreign currency translation | (r) Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s affiliated entities located in China is the Renminbi (“RMB”). For the entities whose functional currency is RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in determining comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The consolidated balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at RMB7.2513 to $1.00 and at RMB6.6981 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the fiscal years ended June 30, 2023, 2022, and 2021 were RMB6.9534 to $1.00, RMB6.4554 to $1.00, and RMB6.6228 to $1.00, respectively. |
Earnings per share | (s) Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (for example, convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The Company had no dilutive securities as of and for the fiscal years ended June 30, 2021, 2022, and 2023. |
Comprehensive income | (t) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. |
Commitments and contingencies | (u) Commitments and contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
Concentration and credit risk | (v) Concentration and credit risk Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions require submitting a payment application form together with suppliers’ invoices, shipping documents, and signed contracts. The Company maintains certain bank accounts in the PRC, where under the Deposit Insurance System in China, Hong Kong, and Cayman Islands. In China, a company’s deposits at one bank are insured for a maximum of RMB500,000 in the event of bank failure. According to press release of China Securities Times and China News on July 13, 2023, Hong Kong Monetary Authority proposed that the upper limit of deposit protection in Hong Kong be enhanced to HK$800,000 from HK$500,000. In Cayman Islands, deposits are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. As of June 30, 2022 and 2023, $5,281,823 and $724,437 of the Company’s cash were on deposit at financial institutions in the PRC, respectively, and $9,113,548 and $2,026,858 of the Company’s cash were on deposit at financial institutions in Hong Kong, respectively. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenue and accounts receivable with specific customers. For the fiscal year ended June 30, 2021, three major customers accounted for approximately 23%, 12%, and 8% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2022, three major customers accounted for approximately 30%, 13%, and 7% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2023, three major customers accounted for approximately 10%, 10%, and 9% of the Company’s total revenue, respectively. As of June 30, 2022, the top five customers accounted for 72% of net accounts receivable as of June 30, 2022, with each customer representing 35%, 14%, 9%, 7%, and 7% of the net accounts receivable balance, respectively. As of June 30, 2023, the top five customers accounted for 68% of net accounts receivable as of June 30, 2023, with each customer representing 31%, 19%, 7%, 6%, and 5% of the net accounts receivable balance, respectively. For the fiscal year ended June 30, 2023, the Company purchased approximately 16.56%, 12.91%, and 10.61% of its services from three major suppliers, respectively. For the fiscal year ended June 30, 2022, the Company purchased approximately 8.59%, 7.88%, and 5.63% of its services from three major suppliers, respectively. For the fiscal year ended June 30, 2021, the Company purchased approximately 14%, 13%, and 12% of its services from three major suppliers, respectively. |
Segment reporting | (w) Segment reporting The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources, and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company’s CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical segments are presented. |
Related parties | (x) Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management, and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in “Note 11—Related Party Transactions.” |
Non-controlling interests | (y) Non-controlling interests A non-controlling interest in the VIE represents the portion of the equity (net assets) in the VIE that has not been pledged to WFOE, consequently not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests respectively. On February 9, 2021, the Company issued 1,065,089 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 14—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE is entitled to 100% of the net income of Pop Culture. Upon this transaction, the Company consummated the acquisition of non-controlling interest in Pop Culture. On August 18, 2020, Pop Sikai was incorporated, 49% of which represented a non-controlling interest. Pop Sikai was dissolved and deregistered on June 27, 2023. Since Pop Sikai had no profit or loss during the fiscal year ended June 30, 2023, no net income or net loss was allocated to non-controlling interest. On May 18, 2022, Fujian Shuzhi was incorporate. As of June 30, 2023, Fuzhou Xinsiyu Culture Communication Co., Ltd., an unrelated third party, holds 49% of the equity interests in this entity. |
Recent accounting pronouncements | (z) Recent accounting pronouncements In June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For all other entities including emerging growth companies, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted ASU 2016-13 since July 1, 2021, the impact of which on the Company’s consolidated financial statements was immaterial. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Consolidated Financial Statements | The consolidated financial statements of the Company included the following entities: Date of Place of Percentage Principal activities The Company January 3, 2020 Cayman 100% Parent Holding Wholly owned subsidiaries Pop HK January 20, 2020 Hong Kong 100% Investment holding WFOE March 13, 2020 PRC 100% WFOE, consultancy and information technology support Pop Culture Global Operations Inc. December 3, 2021 California 100% Overseas hip-hop resource integration and business development Xiamen Pop Investment Co., Ltd. January 25, 2022 PRC 60% owned by Heliheng; 40% owned by the VIE Cross-border funds management Fujian Pupu Shuzhi Sports Industry Development Co., Ltd. (“Shuzhi Sports”) July 21, 2022 PRC 100% Holding sports performance activities VIE Pop Culture March 29, 2007 PRC VIE Event planning, execution, and hosting VIE’s subsidiaries Pupu Sibo March 30, 2017 PRC 100% owned by VIE Event planning and execution Pop Network June 6, 2017 PRC 100% owned by VIE Marketing Guangzhou Shuzhi December 19, 2018 PRC 100% owned by VIE Event planning and execution Shenzhen Pop January 17, 2020 PRC 100% owned by VIE Event planning and execution Xiamen Pop Sikai Interactive Technology Co., Ltd (“Pop Sikai”) August 18, 2020 PRC 51% owned by VIE Event planning and execution Pupu Digital June 20, 2022 PRC 100% owned by the VIE Cultural technology Hualiu Digital April 14, 2022 PRC 100% owned by the VIE Acting broker and self-branding development Zhongpu Shuyuan (Xiamen) Digital Technology Co., Ltd. March 30, 2022 PRC 51% owned by the VIE Digital collection and Metaverse Xiamen Qiqin Technology Co., Ltd. April 12, 2022 PRC 51% owned by the VIE IPC License Shenzhen Jam Box Technology Co., Ltd. (“Shenzhen Jam box”) November 18, 2021 PRC 56% owned by the VIE Event planning and execution Xiamen Pop Shuzhi Culture Communication Co., Ltd. May 16, 2022 PRC 100% owned by the VIE Online and offline advertising marketing and exhibitions Fujian Shuzhi Fuxin Exhibition Co., Ltd. (“Fujian Shuzhi”) May 18, 2022 PRC 51% owned by the VIE Online and offline advertising marketing and exhibitions |
Schedule of Financial Statement Amounts and Balances of VIE and its Subsidiaries | The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions: As of June 30, 2023 2022 Total assets $ 16,775,802 $ 30,147,583 Total liabilities $ 12,336,610 $ 11,110,127 For the fiscal years ended June 30, 2023 2022 2021 Total revenue $ 18,286,074 $ 24,761,112 $ 24,871,302 Net income (loss) $ (14,053,844 ) $ 1,882,512 $ 4,571,795 Net cash used in operating activities $ (2,672,557 ) $ 4,365,662 $ (3,310,074 ) Net cash used in investing activities $ (680,272 ) $ (589,351 ) $ - Net cash provided by financing activities $ 683,277 $ (1,679,374 ) $ 4,378,228 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Property and equipment comprise office building, equipment, and motor vehicles. They are recorded at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Building 20 Years Office equipment 3 to 5 Years Motor vehicles 10 Years Leasehold improvement Shorter of useful life or lease term |
Schedule of Disaggregation of the Company’s Revenue | The following table identifies the disaggregation of the Company’s revenue for the fiscal years ended June 30, 2023, 2022, and 2021 respectively: For the fiscal years ended June 30, 2023 2022 2021 Revenue from operations: Event hosting $ 4,348,303 $ 14,711,787 $ 14,978,643 Brand promotion 9,650,274 8,733,764 750,315 Event planning and execution 4,132,477 8,420,328 9,196,773 Other services 412,189 415,664 600,826 Total revenue $ 18,543,243 $ 32,281,543 $ 25,526,557 |
Schedule of Deferred Revenue | Amount June 30, 2020 $ 1,764,608 Addition 8,070,036 Recognized as revenue within the fiscal year ended June 30, 2021 (8,185,797 ) June 30, 2021 1,648,847 Addition 47,710 Recognized as revenue within the fiscal year ended June 30, 2022 (1,648,847 ) June 30, 2022 47,710 Addition 393,003 Recognized as revenue within the fiscal year ended June 30, 2023 (47,710 ) June 30, 2023 $ 393,003 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | As of June 30, 2023 and 2022, accounts receivable consisted of the following: As of June 30, 2023 2022 Accounts receivable $ 24,000,374 $ 28,094,299 Less: allowance for credit losses (4,358,037 ) (1,815,665 ) Accounts receivable, net $ 19,642,337 $ 26,278,634 |
Schedule of Allowance for Credit Losses | An analysis of the allowance for credit losses was as follows: As of June 30, 2023 2022 Balance at beginning of the year $ 1,815,665 $ 563,789 Additional provision charged to expense 2,795,662 1,319,925 Foreign exchange (253,290 ) (68,049 ) Balance at the end of the year $ 4,358,037 $ 1,815,665 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Prepaid Expenses and Other Current Assets Table [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | As of June 30, 2023 and 2022, prepaid expenses and other current assets consisted of the following: As of June 30, 2023 2022 Deferred costs (1) $ 683 $ 783,798 Deferred offering costs - - Other receivables 109,100 36,559 109,783 820,357 Allowance for credit losses (2) (13,791 ) (14,930 ) $ 95,992 $ 805,427 (1) Deferred costs represent the costs incurred to fulfill a contract with a customer which relates directly to a contract that the Company can specifically identify, generate, or enhance resources of the Company that will be used in satisfying performance obligations in the future as well as are expected to be recovered. As of June 30, 2022, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances to be carried out subsequently in July and December 2022. As of June 30, 2023, deferred costs primarily consisted of costs paid by the Company in advance to various vendors for the events and performances to be carried out subsequently in July and December 2023. (2) The Company recorded bad debt expenses of $27,887, negative $12,407, and nil |
Schedule of Movements of Allowance for Credit Losses | An analysis of the allowance for credit losses was as follows: As of June 30, 2023 2022 Balance at beginning of the year $ 14,930 $ 27,887 Reverse - (12,407 ) Foreign exchange (1,139 ) (550 ) Balance at the end of the year $ 13,791 $ 14,930 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of June 30, 2023 and 2022, property and equipment consisted of the following: As of June 30, 2023 2022 Leasehold improvement $ 939,825 $ 17,394 Building 456,748 - Office equipment 115,314 85,939 1,511,887 103,333 Less: accumulated depreciation (667,273 ) (31,570 ) $ 844,614 $ 71,763 |
Intangible Asset, Net (Tables)
Intangible Asset, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Intangible Asset, Net [Abstract] | |
Schedule of Intangible Asset | As of June 30, 2023 and 2022, intangible assets, net consisted of the following: As of June 30, 2023 2022 Copyright licenses $ 1,963,676 $ 2,845,857 SaaS 137,906 149,296 2,101,582 2,995,153 Less: accumulated amortization (918,405 ) (790,742 ) Less: impairment for production copyright (1,063,658 ) - $ 119,519 $ 2,204,411 |
Schedule of Amortization Amount of Intangible Asset by Fiscal Years | For the fiscal years ended June 30, 2021, 2022, and 2023, amortization expense amounted to $215,003, $249,743, and $915,155, respectively. The following is a schedule, by fiscal years, of amortization amount of intangible asset as of June 30, 2023: 2024 $ 13,791 2025 13,791 2026 13,791 2027 13,791 2028 13,791 Thereafter 50,564 Total $ 119,519 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Other Non-Current Assets [Abstract] | |
Schedule of Other Non-Current Assets | As of June 30, 2023 2022 Prepayment of developing a metaverse platform - 4,597,232 Prepayment of developing non-fungible tokens (“NFTs”) - 2,800,000 Prepayment of brand authorization 4,600,000 - Prepaid consulting fees 462,967 925,933 Prepaid renovation expenses - 886,367 Prepayment of copyright licenses - 580,000 Prepaid royalties - 95,798 Security deposit 16,260 55,425 Others 41,372 68,445 Total $ 5,120,599 $ 10,009,200 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities and Other Payables [Abstract] | |
Schedule of Accrued Liabilities and Other Payables | As of June 30, 2023 and 2022, accrued liabilities and other payables consisted of the following: As of June 30, 2023 2022 Payroll payables $ 92,856 $ 126,336 Other payables 122,186 102,873 $ 215,042 $ 229,209 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | As of June 30, 2023 and 2022, taxes payable consisted of the following: As of June 30, 2023 2022 Corporate income tax $ 3,495,646 $ 3,946,227 Value-added tax (“VAT”) 828,488 746,975 Related surcharges on VAT payable 108 2,224 IIT 702 1,841 Other tax 2,238 - $ 4,327,182 $ 4,697,267 |
Bank Loans (Tables)
Bank Loans (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Bank Loans [Abstract] | |
Schedule of Short-Term Bank Loans | Summary of short-term bank loans is as follows: Annual Interest As of June 30, Rate Maturities 2023 2022 Short-term loans: Xiamen Bank (1) 5.22 % June 16, 2023 - 447,888 Xiamen Bank (1) 5.22 % June 16, 2023 - 298,592 Bank of China Ltd. (3) 4.25 % May 24, 2024 979,135 - Industrial Bank Co., Ltd. (2) 4.80 % December 20, 2022 - 1,492,960 Bank of China Ltd. (3) 4.70 % June 1, 2023 - 1,194,370 Industrial Bank Co., Ltd. 4.80 % December 7, 2023 1,379,063 - China Merchants Bank (4) 4.93 % March 29, 2024 372,347 - Xiamen Bank (1) 4 % June 25,2024 551,625 - Industrial and Commercial Bank (5) 3.65 % September 23, 2023 689,532 - Subtotal 3,971,702 3,433,810 Long-term loans-current portion: Bank of China Ltd. (3) 3.80 % November 26, 2023 330,975 89,579 Bank of China Ltd. (3) 4.15 % December 29,2023 772,275 209,014 Bank of China Ltd. (3) 5.10 % April 15, 2024 55,163 59,718 Subtotal $ 1,158,413 $ 358,311 Annual Interest As of June 30, Rate Maturities 2023 2022 Long-term loans: Bank of China Ltd. (3) 3.80 % November 26, 2023 $ - $ 313,522 Bank of China Ltd. (3) 4.15 % December 29, 2023 - 731,551 Bank of China Ltd. (3) 5.10 % April 15, 2024 - 209,014 Total $ - $ 1,254,087 (1) Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. (2) On February 4, 2021, Pop Culture entered into a factoring agreement with Industrial Bank Co., Ltd. and received a total of RMB10,000,000 (equivalent to $1,548,491) on February 4, 2021 by factoring the receivables due from customers of RMB13,000,000 (equivalent to $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. (3) Loans from Bank of China were jointly guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company and Pop Culture. (4) The loan was guaranteed by Mr. Zhuoqin Huang. (5) The loan was guaranteed by Pop Culture. |
Schedule of Future Long Term Loan Obligations | As of June 30, 2023, the Company’s future long-term loan obligations according to the terms of the loan agreement are as follows: USD 2024 1,158,413 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax | The components of the income tax provision were as follows: For the fiscal years ended June 30, 2023 2022 2021 Current income tax provision $ 218,962 $ 1,205,276 $ 1,464,674 Deferred income tax benefit 455,602 (334,045 ) (47,802 ) Total $ 674,564 $ 871,231 $ 1,416,872 |
Schedule of Reconciles the Statutory Rate to the Company’s Effective Tax Rate | The following table reconciles the statutory rate to the Company’s effective tax rate for the fiscal years ended June 30, 2023, 2022, and 2021: For the fiscal years ended June 30, 2023 2022 2021 China Statutory income tax rate 25.00 % 25.00 % 25.00 % Temporary difference (4.76 )% 21.04 - Permanent difference (0.01 )% 1.03 % 0.71 % Effect of different tax jurisdiction (10.10 )% 8.81 - Effect of favorable tax rates on small-scale and low-profit entities 0.41 % - % (0.79 )% Change in valuation allowance (13.28 )% - % - % Effective tax rate (2.74 )% 55.88 % 24.92 % |
Schedule of Deferred Tax Asset | The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that gives rise to deferred tax asset as of June 30, 2023 and 2022 was as follows: As of June 30, 2023 2022 Deferred tax assets: Net operating loss carry forwards $ 3,266,711 $ - Allowance for doubtful accounts 1,092,957 457,649 Total deferred tax assets 4,359,668 457,649 Valuation allowance (4,359,668 ) - Total deferred tax assets, net $ - $ 457,649 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Lease [Abstract] | |
Schedule of Operating Lease | Supplemental balance sheet information related to the operating lease was as follows: As of June 30, 2023 2022 Right-of-use assets $ 84,892 $ 461,399 Operating lease liabilities - current $ 65,115 $ 208,926 Operating lease liabilities - non-current 39,634 250,178 Total operating lease liabilities $ 104,749 $ 459,104 |
Schedule of Remaining Lease Term and Discount Rate | Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.15 Weighted average discount rate 6.92 % |
Schedule of Future Minimum Rent Payable | As of June 30, 2023, the future minimum rent payable under the non-cancelable operating lease for fiscal years ended June 30 were: 2024 $ 64,646 2025 49,556 Thereafter - Total lease payments 111,202 Less: imputed interest (6,453 ) Present value of lease liabilities $ 104,749 |
Statutory Reserve (Tables)
Statutory Reserve (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Statutory Reserve [Abstract] | |
Schedule of Statutory Reserve | For the fiscal years ended June 30, 2023, 2022, and 2021, the Company provided statutory reserve as follows: Balance - June 30, 2020 $ 779,094 Appropriation to statutory reserve 462,479 Balance - June 30, 2021 1,241,573 Appropriation to statutory reserve 257,796 Balance - June 30, 2022 1,499,369 Appropriation to statutory reserve 37,859 Balance - June 30, 2023 $ 1,537,228 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) - Parent Company [Member] | 12 Months Ended |
Jun. 30, 2023 | |
Parent Company Only Condensed Financial Information (Tables) [Line Items] | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets As of June 30, 2023 2022 ASSETS CURRENT ASSETS Cash $ 1,095,007 $ 9,085,082 Prepaid expenses and other current assets 4,179,826 4,250,071 Due from subsidiaries and the VIE 2,607,402 - TOTAL CURRENT ASSETS 7,882,235 13,335,153 Intangible asset, net - 696,000 Other non-current assets 5,062,966 8,903,166 Investments in subsidiaries, consolidated VIE, and VIE’s subsidiaries 13,821,695 29,919,831 TOTAL ASSETS 26,766,896 52,854,150 LIABILITIES AND SHAREHOLDERS’ EQUITY Other Payable $ 31,600 $ 90,165 TOTAL CURRENT LIABILITIES $ 31,600 $ 90,165 TOTAL LIABILITIES 31,600 90,165 SHAREHOLDERS’ EQUITY Ordinary shares (par value $0.01 per share; 4,400,000 Class A ordinary shares authorized, 1,828,693 Class A ordinary shares issued and outstanding as of June 30, 2022 and 2023, respectively; 600,000 Class B ordinary shares authorized, 576,308 Class B ordinary shares issued and outstanding as of June 30, 2022 and 2023)* 24,050 24,050 Subscription receivable (15,441 ) (15,441 ) Additional paid-in capital 40,174,260 40,158,643 Retained earnings (11,802,701 ) 12,527,714 Accumulated other comprehensive (loss) income (1,644,872 ) 69,019 TOTAL SHAREHOLDERS’ EQUITY 26,735,296 52,763,985 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 26,766,896 $ 52,854,150 |
Schedule of Condensed Statements of Operations and Comprehensive Income (Loss) | Condensed Statements of Operations and Comprehensive Income (Loss) For the fiscal years ended June 30, 2023 2022 2021 Revenue $ 257,169 $ - $ - Cost of Revenue 150,000 - - Gross profit $ 107,169 - $ - Selling expenses 125,000 - - General and administrative expenses $ 1,128,970 $ 1,594,856 $ 330,734 Financial expenses (income) (1,452 ) (11,094 ) - Research and development expenses 8,671,107 - - Income (Loss) from operation (9,816,456 ) (1,583,762 ) (330,734 ) Other income (loss) (114,097 ) Share of income (loss) of subsidiaries, consolidated VIE, and VIE’s subsidiaries (14,399,862 ) 2,371,720 4,598,276 Income (loss) before income tax expenses (24,330,415 ) 787,958 4,267,542 Income tax expenses - - - Net income (loss) $ (24,330,415 ) $ 787,958 $ 4,267,542 Other Comprehensive income (loss) Foreign currency translation income (loss) (1,713,891 ) (873,803 ) 1,335,757 Total comprehensive income (loss) $ (26,044,306 ) $ (85,845 ) $ 5,603,299 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the fiscal years ended June 30, 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (24,330,415 ) $ (8,226,043 ) $ (75,805 ) Depreciation and amortization 696,000 - - Equity loss (income) of subsidiaries 14,399,862 - - Other current assets 70,245 - - Other payable (58,565 ) - - Due from subsidiaries and the VIE (2,607,402 ) - - Other non-current assets 8,440,200 - - Net cash used in operating activities $ (3,390,075 ) $ (8,226,043 ) $ (75,805 ) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in a subsidiary - (11,050,252 ) (600,000 ) Purchase of intangible assets - (720,000 ) - Advance paid for agent license (4,600,000 ) - - Net cash used in investing activities (4,600,000 ) (11,770,252 ) (600,000 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of shares - 33,521,725 - Payment for deferred offering costs - (3,570,805 ) (459,164 ) Net cash provided by (used in) financing activities - 29,950,920 (459,164 ) Effect of exchange rate changes - (873,803 ) - Net increase (decrease) in cash (7,990,075 ) 9,080,822 (1,134,969 ) Cash at beginning of period 9,085,082 4,260 1,139,229 Cash at end of period $ 1,095,007 $ 9,085,082 $ 4,260 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - $ / shares | Jun. 30, 2023 | Feb. 19, 2021 | Feb. 09, 2021 | Mar. 30, 2020 |
Organization and Principal Activities (Details) [Line Items] | ||||
WFOE net income percentage | 100% | |||
Ownership [Member] | ||||
Organization and Principal Activities (Details) [Line Items] | ||||
Equity interests percentage | 100% | |||
Acquire non-controlling interests percentage | 6.45% | |||
Class A Ordinary Shares [Member] | ||||
Organization and Principal Activities (Details) [Line Items] | ||||
Issued non-controlling shareholders (in Dollars per share) | $ 1,065,089 | |||
Exclusive Services Agreement [Member] | ||||
Organization and Principal Activities (Details) [Line Items] | ||||
Held of shares percentage | 93.55% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Consolidated Financial Statements | 12 Months Ended |
Jun. 30, 2023 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 03, 2020 |
Place of incorporation | Cayman Islands |
Percentage of ownership | 100% |
Principal activities | Parent Holding |
Pop HK [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 20, 2020 |
Place of incorporation | Hong Kong |
Percentage of ownership | 100% |
Principal activities | Investment holding |
WFOE [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Mar. 13, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 100% |
Principal activities | WFOE, consultancy and information technology support |
Pop Culture Global Operations Inc. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Dec. 03, 2021 |
Place of incorporation | California |
Percentage of ownership | 100% |
Principal activities | Overseas hip-hop resource integration and business development |
Xiamen Pop Investment Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 25, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 60% owned by Heliheng; 40% owned by the VIE |
Principal activities | Cross-border funds management |
Fujian Pupu Shuzhi Sports Industry Development Co., Ltd. (“Shuzhi Sports”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 21, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 100% |
Principal activities | Holding sports performance activities |
Pop Culture [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Mar. 29, 2007 |
Place of incorporation | PRC |
Percentage of ownership | VIE |
Principal activities | Event planning, execution, and hosting |
Pupu Sibo [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Mar. 30, 2017 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Event planning and execution |
Pop Network [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jun. 06, 2017 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Marketing |
Guangzhou Shuzhi [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Dec. 19, 2018 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Event planning and execution |
Shenzhen Pop [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 17, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by VIE |
Principal activities | Event planning and execution |
Xiamen Pop Sikai Interactive Technology Co., Ltd (“Pop Sikai”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Aug. 18, 2020 |
Place of incorporation | PRC |
Percentage of ownership | 51% owned by VIE |
Principal activities | Event planning and execution |
Pupu Digital [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jun. 20, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by the VIE |
Principal activities | Cultural technology |
Hualiu Digital [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Apr. 14, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by the VIE |
Principal activities | Acting broker and self-branding development |
Zhongpu Shuyuan (Xiamen) Digital Technology Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Mar. 30, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 51% owned by the VIE |
Principal activities | Digital collection and Metaverse |
Xiamen Qiqin Technology Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Apr. 12, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 51% owned by the VIE |
Principal activities | IPC License |
Shenzhen Jam Box Technology Co., Ltd. (“Shenzhen Jam box”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Nov. 18, 2021 |
Place of incorporation | PRC |
Percentage of ownership | 56% owned by the VIE |
Principal activities | Event planning and execution |
Xiamen Pop Shuzhi Culture Communication Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | May 16, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 100% owned by the VIE |
Principal activities | Online and offline advertising marketing and exhibitions |
Fujian Shuzhi Fuxin Exhibition Co., Ltd. (“Fujian Shuzhi”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | May 18, 2022 |
Place of incorporation | PRC |
Percentage of ownership | 51% owned by the VIE |
Principal activities | Online and offline advertising marketing and exhibitions |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Financial Statement Amounts and Balances of VIE and its Subsidiaries - VIE and Subsidiaries [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total assets | $ 16,775,802 | $ 30,147,583 | |
Total liabilities | 12,336,610 | 11,110,127 | |
Total revenue | 18,286,074 | 24,761,112 | $ 24,871,302 |
Net income(loss) | (14,053,844) | 1,882,512 | 4,571,795 |
Net cash used in operating activities | (2,672,557) | 4,365,662 | (3,310,074) |
Net cash used in investing activities | (680,272) | (589,351) | |
Net cash provided by financing activities | $ 683,277 | $ (1,679,374) | $ 4,378,228 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 HKD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Feb. 19, 2021 | Feb. 09, 2021 shares | Aug. 18, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Operating loss (in Dollars) | $ (24,422,618) | $ 1,416,467 | $ 5,831,926 | |||||
Operating cash flows (in Dollars) | 5,960,000 | |||||||
Obtained financing limit (in Dollars) | 200,000,000 | |||||||
Cash (in Dollars) | $ 2,751,309 | 14,396,032 | ||||||
Amortized straight line method | 10 years | 10 years | 10 years | |||||
Impairment charge (in Dollars) | $ 1,100,000 | |||||||
VAT rate percentage | 6% | 6% | 6% | |||||
Deferred revenue (in Dollars) | $ 393,003 | $ 47,710 | ||||||
Selling and marketing costs (in Dollars) | 4,646,875 | 380,723 | $ 133,387 | |||||
Advertising expense (in Dollars) | 1,518,981 | 48,716 | $ 51,170 | |||||
Underpayment of taxes | $ 14,381 | ¥ 100,000 | ||||||
Statute limitation | 10 years | 10 years | 10 years | |||||
Exception of equity, description | The consolidated balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at RMB7.2513 to $1.00 and at RMB6.6981 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the fiscal years ended June 30, 2023, 2022, and 2021 were RMB6.9534 to $1.00, RMB6.4554 to $1.00, and RMB6.6228 to $1.00, respectively. | The consolidated balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at RMB7.2513 to $1.00 and at RMB6.6981 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the fiscal years ended June 30, 2023, 2022, and 2021 were RMB6.9534 to $1.00, RMB6.4554 to $1.00, and RMB6.6228 to $1.00, respectively. | The consolidated balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at RMB7.2513 to $1.00 and at RMB6.6981 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of operations and cash flows for the fiscal years ended June 30, 2023, 2022, and 2021 were RMB6.9534 to $1.00, RMB6.4554 to $1.00, and RMB6.6228 to $1.00, respectively. | |||||
Company deposits | ¥ | ¥ 500,000 | |||||||
Deposits (in Dollars) | $ 724,437 | 5,281,823 | ||||||
Payments for deposits (in Dollars) | $ 2,026,858 | $ 9,113,548 | ||||||
Net accounts receivable percentage | 68% | 72% | ||||||
Non-controlling interests, percentage | 6.45% | 49% | ||||||
Percentage of net income | 100% | |||||||
Equity interests, percentage | 49% | 49% | 49% | |||||
Minimum [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Limitations of underpayment | 3 years | 3 years | 3 years | |||||
Company deposits | $ 500,000 | |||||||
Maximum [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Limitations of underpayment | 5 years | 5 years | 5 years | |||||
Company deposits | $ 800,000 | |||||||
Class A ordinary shares [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Ordinary shares issued (in Shares) | shares | 1,065,089 | |||||||
Customer One [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Net accounts receivable percentage | 31% | 35% | ||||||
Percentage of services purchase | 16.56% | 8.59% | ||||||
Customer Two [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Net accounts receivable percentage | 19% | 14% | ||||||
Percentage of services purchase | 12.91% | 7.88% | ||||||
Customer Three [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Net accounts receivable percentage | 7% | 9% | ||||||
Percentage of services purchase | 10.61% | 5.63% | ||||||
Customer 4 [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Net accounts receivable percentage | 6% | 7% | ||||||
Customer 5 [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Net accounts receivable percentage | 5% | 7% | ||||||
Suppliers One [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Percentage of services purchase | 14% | |||||||
Suppliers Two [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Percentage of services purchase | 13% | |||||||
Suppliers Three [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Percentage of services purchase | 12% | |||||||
Going Concern and Management’s Plan [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Operating loss (in Dollars) | $ 24,420,000 | |||||||
Guangzhou Taiji Advertising Co., Ltd. [Member] | Customer One [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 23% | |||||||
Fujian Maibo Culture Communication Co., Ltd. [Member] | Customer Two [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 12% | |||||||
Xiamen Many Idea Interactive Co., Ltd. [Member] | Customer One [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 30% | |||||||
Xiamen Many Idea Interactive Co., Ltd. [Member] | Customer Two [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 10% | |||||||
Xiamen Many Idea Interactive Co., Ltd. [Member] | Customer Three [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 8% | |||||||
Fuzhou New Civic Culture Communication Co. [Member] | Customer Two [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 13% | |||||||
Heng’an (China) Paper Industry Company Ltd. [Member] | Customer One [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 10% | |||||||
Heng’an (China) Paper Industry Company Ltd. [Member] | Customer Three [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Revenue percentage | 9% | 7% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | 12 Months Ended |
Jun. 30, 2023 | |
Building [Member] | |
Schedule of Estimated Useful Lives [Abstract] | |
Estimated useful life | 20 years |
Office equipment [Member] | Minimum [Member] | |
Schedule of Estimated Useful Lives [Abstract] | |
Estimated useful life | 3 years |
Office equipment [Member] | Maximum [Member] | |
Schedule of Estimated Useful Lives [Abstract] | |
Estimated useful life | 5 years |
Motor vehicles [Member] | |
Schedule of Estimated Useful Lives [Abstract] | |
Estimated useful life | 10 years |
Leasehold improvement [Member] | |
Schedule of Estimated Useful Lives [Abstract] | |
Estimated useful life | Shorter of useful life or lease term |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregation of the Company’s Revenue - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from operations: | |||
Total revenue | $ 18,543,243 | $ 32,281,543 | $ 25,526,557 |
Event hosting [Member] | |||
Revenue from operations: | |||
Revenue | 4,348,303 | 14,711,787 | 14,978,643 |
Total revenue | 4,348,303 | 14,711,787 | 14,978,643 |
Brand promotion [Member] | |||
Revenue from operations: | |||
Revenue | 9,650,274 | 8,733,764 | 750,315 |
Total revenue | 9,650,274 | 8,733,764 | 750,315 |
Event planning and execution [Member] | |||
Revenue from operations: | |||
Revenue | 4,132,477 | 8,420,328 | 9,196,773 |
Total revenue | 4,132,477 | 8,420,328 | 9,196,773 |
Other services [Member] | |||
Revenue from operations: | |||
Revenue | 412,189 | 415,664 | 600,826 |
Total revenue | $ 412,189 | $ 415,664 | $ 600,826 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Deferred Revenue - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Deferred Revenue [Abstract] | |||
Beginning balance | $ 47,710 | $ 1,648,847 | $ 1,764,608 |
Addition | 393,003 | 47,710 | 8,070,036 |
Recognized as revenue within the fiscal year ended | (47,710) | (1,648,847) | (8,185,797) |
Ending balance | $ 393,003 | $ 47,710 | $ 1,648,847 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts Receivable, Net [Abstract] | |||
Debt expenses | $ 2,795,662 | $ 1,319,925 | $ 180,408 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule of Accounts Receivable [Abstract] | |||
Accounts receivable | $ 24,000,374 | $ 28,094,299 | |
Less: allowance for credit losses | (4,358,037) | (1,815,665) | $ (563,789) |
Accounts receivable, net | $ 19,642,337 | $ 26,278,634 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of Allowance for Credit Losses - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Allowance For Credit Losses Abstract | ||
Balance at beginning of the year | $ 1,815,665 | $ 563,789 |
Additional provision charged to expense | 2,795,662 | 1,319,925 |
Foreign exchange | (253,290) | (68,049) |
Balance at the end of the year | $ 4,358,037 | $ 1,815,665 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Prepaid Expenses and Other Current Assets [Abstract] | |||
Bad debt expenses and other receivable | $ 12,407 | $ 27,887 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | ||||||
Deferred costs | [1] | $ 683 | $ 783,798 | |||
Deferred offering costs | ||||||
Other receivables | 109,100 | 36,559 | ||||
Total | 109,783 | 820,357 | ||||
Allowance for credit losses | (13,791) | [2] | (14,930) | [2] | $ (27,887) | |
Total prepaid expenses and other current assets | $ 95,992 | $ 805,427 | ||||
[1] Deferred costs represent the costs incurred to fulfill a contract with a customer which relates directly to a contract that the Company can specifically identify, generate, or enhance resources of the Company that will be used in satisfying performance obligations in the future as well as are expected to be recovered. The Company recorded bad debt expenses of $27,887, negative $12,407, and nil |
Prepaid Expenses and Other Cu_5
Prepaid Expenses and Other Current Assets (Details) - Schedule of Movements of Allowance for Credit Losses - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | |||
Schedule Of Movements Of Allowance For Credit Losses Abstract | ||||
Balance at beginning of the year | $ 14,930 | [1] | $ 27,887 | |
Reverse | (12,407) | |||
Foreign exchange | (1,139) | (550) | ||
Balance at the end of the year | [1] | $ 13,791 | $ 14,930 | |
[1] The Company recorded bad debt expenses of $27,887, negative $12,407, and nil |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 665,431 | $ 60,600 | $ 28,902 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,511,887 | $ 103,333 |
Less: accumulated depreciation | (667,273) | (31,570) |
Property and equipment, net | 844,614 | 71,763 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 939,825 | 17,394 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 456,748 | |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 115,314 | $ 85,939 |
Intangible Asset, Net (Details)
Intangible Asset, Net (Details) | 12 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2022 CNY (¥) | |
Intangible Asset, Net (Details) [Line Items] | |||||
Term intangible assets | 10 years | ||||
Impairment loss | $ 1,100,000 | ||||
Cash consideration | 2,751,309 | $ 14,396,032 | |||
Amortization expense | $ 915,155 | $ 249,743 | $ 215,003 | ||
Shenzhen HipHopJust Information Technology Co., Ltd [Member] | |||||
Intangible Asset, Net (Details) [Line Items] | |||||
Cash consideration | $ 154,909 | ¥ 1,000,000 |
Intangible Asset, Net (Detail_2
Intangible Asset, Net (Details) - Schedule of Intangible Asset - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Intangible Asset [Abstract] | ||
Copyright licenses | $ 1,963,676 | $ 2,845,857 |
SaaS | 137,906 | 149,296 |
intangible assets gross | 2,101,582 | 2,995,153 |
Less: accumulated amortization | (918,405) | (790,742) |
Less: impairment for production copyright | (1,063,658) | |
Total intangible assets | $ 119,519 | $ 2,204,411 |
Intangible Asset, Net (Detail_3
Intangible Asset, Net (Details) - Schedule of Amortization Amount of Intangible Asset by Fiscal Years | Jun. 30, 2023 USD ($) |
Schedule of Amortization Amount of Intangible Asset by Fiscal Years [Abstract] | |
2024 | $ 13,791 |
2025 | 13,791 |
2026 | 13,791 |
2026 | 13,791 |
2028 | 13,791 |
Thereafter | 50,564 |
Total | $ 119,519 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) | Jun. 30, 2023 | Apr. 09, 2023 | Dec. 31, 2022 |
Other Non-Current Assets [Line Items] | |||
Prepayment for brand authorization | $ 4,600,000 | ||
Total cash consideration | $ 4,000,000 | $ 4,600,000 |
Other Non-Current Assets (Det_2
Other Non-Current Assets (Details) - Schedule of Other Non-Current Assets - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Other Non-Current Assets [Abstract] | ||
Prepayment of developing a metaverse platform | $ 4,597,232 | |
Prepayment of developing non-fungible tokens (“NFTs”) | 2,800,000 | |
Prepayment of brand authorization | 4,600,000 | |
Prepaid consulting fees | 462,967 | 925,933 |
Prepaid renovation expenses | 886,367 | |
Prepayment of copyright licenses | 580,000 | |
Prepaid royalties | 95,798 | |
Security deposit | 16,260 | 55,425 |
Others | 41,372 | 68,445 |
Total | $ 5,120,599 | $ 10,009,200 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of Accrued Liabilities and Other Payables - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Accrued Liabilities and Other Payables [Abstract] | ||
Payroll payables | $ 92,856 | $ 126,336 |
Other payables | 122,186 | 102,873 |
Total | $ 215,042 | $ 229,209 |
Taxes Payable (Details) - Sched
Taxes Payable (Details) - Schedule of Taxes Payable - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Taxes Payable [Abstract] | ||
Corporate income tax | $ 3,495,646 | $ 3,946,227 |
Value-added tax (“VAT”) | 828,488 | 746,975 |
Related surcharges on VAT payable | 108 | 2,224 |
IIT | 702 | 1,841 |
Other tax | 2,238 | |
Total | $ 4,327,182 | $ 4,697,267 |
Bank Loans (Details)
Bank Loans (Details) | 12 Months Ended | |||||
Feb. 04, 2021 USD ($) | Feb. 04, 2021 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Feb. 04, 2021 CNY (¥) | |
Bank Loans (Details) [Line Items] | ||||||
Interest expenses related to bank loans | $ 2,795,662 | $ 1,319,925 | $ 180,408 | |||
Total received | $ 1,548,491 | ¥ 10,000,000 | ||||
Receivables due from customers | $ 2,013,038 | ¥ 13,000,000 | ||||
Bank Loans [Member] | ||||||
Bank Loans (Details) [Line Items] | ||||||
Interest expenses related to bank loans | $ 226,296 | $ 266,126 | $ 228,806 | |||
Short-Term Debt [Member] | ||||||
Bank Loans (Details) [Line Items] | ||||||
Weighted average interest rate on short-term bank loans outstanding | 4.53% | 4.86% | ||||
Interest rate for bank loans | 4.60% | 4.87% | 6.26% |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of Short-Term Bank Loans - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Short-term loans: | |||
Subtotal | $ 3,971,702 | $ 3,433,810 | |
Total | 1,254,087 | ||
Subtotal | $ 1,158,413 | 358,311 | |
Xiamen Bank [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 5.22% | |
Maturities | [1] | Jun. 16, 2023 | |
Subtotal | [1] | 447,888 | |
Xiamen Bank one [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 5.22% | |
Maturities | [1] | Jun. 16, 2023 | |
Subtotal | [1] | 298,592 | |
Bank of China Ltd. [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 4.25% | |
Maturities | [2] | May 24, 2024 | |
Subtotal | [2] | $ 979,135 | |
Industrial Bank Co. Ltd [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [3] | 4.80% | |
Maturities | [3] | Dec. 20, 2022 | |
Subtotal | [3] | 1,492,960 | |
Bank of China Ltd One [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 4.70% | |
Maturities | [2] | Jun. 01, 2023 | |
Subtotal | [2] | 1,194,370 | |
Industrial Bank Co., Ltd One [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [3] | 4.80% | |
Maturities | [3] | Dec. 07, 2023 | |
Subtotal | [3] | $ 1,379,063 | |
China Merchants Bank [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [4] | 4.93% | |
Maturities | [4] | Mar. 29, 2024 | |
Subtotal | [4] | $ 372,347 | |
Xiamen Bank Two [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [1] | 4% | |
Maturities | [1] | Jun. 25, 2024 | |
Subtotal | [1] | $ 551,625 | |
Industrial and Commercial Bank [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [5] | 3.65% | |
Maturities | [5] | Sep. 23, 2023 | |
Subtotal | [5] | $ 689,532 | |
Bank of China Ltd Two [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 3.80% | |
Maturities | [2] | Nov. 26, 2023 | |
Subtotal | [2] | $ 330,975 | 89,579 |
Bank of China Ltd Three [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 4.15% | |
Maturities | [2] | Dec. 29, 2023 | |
Subtotal | [2] | $ 772,275 | 209,014 |
Bank of China Ltd Four [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 5.10% | |
Maturities | [2] | Apr. 15, 2024 | |
Subtotal | [2] | $ 55,163 | $ 59,718 |
Bank of China Ltd Five [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 3.80% | |
Maturities | [2] | Nov. 26, 2023 | |
Subtotal | [2] | $ 313,522 | |
Bank of China Ltd Six [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 4.15% | |
Maturities | [2] | Dec. 29, 2023 | |
Subtotal | [2] | $ 731,551 | |
Bank of China Ltd Seven [Member] | |||
Short-term loans: | |||
Annual Interest Rate | [2] | 5.10% | |
Maturities | [2] | Apr. 15, 2024 | |
Subtotal | [2] | $ 209,014 | |
[1] Loans from Xiamen Bank and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. Loans from Bank of China were jointly guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company and Pop Culture. On February 4, 2021, Pop Culture entered into a factoring agreement with Industrial Bank Co., Ltd. and received a total of RMB10,000,000 (equivalent to $1,548,491) on February 4, 2021 by factoring the receivables due from customers of RMB13,000,000 (equivalent to $2,013,038), for which Industrial Bank Co., Ltd. had the right of recourse to Pop Culture. The factoring was guaranteed by Mr. Zhuoqin Huang, the chief executive office of the Company. Subsequently, the loans from Industrial Bank Co., Ltd were repaid on September 17, 2021 with the collections of receivables due from customers. The loan was guaranteed by Mr. Zhuoqin Huang. The loan was guaranteed by Pop Culture. |
Bank Loans (Details) - Schedu_2
Bank Loans (Details) - Schedule of Future Long Term Loan Obligations - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
USD | ||
2024 | $ 1,158,413 | $ 358,311 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Jan. 19, 2022 USD ($) | Jan. 19, 2022 CNY (¥) | Oct. 31, 2023 USD ($) | Oct. 31, 2023 CNY (¥) | Jun. 30, 2023 CNY (¥) | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Feb. 28, 2023 USD ($) | Feb. 28, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | |
Related Party Balances and Transactions [Abstract] | |||||||||||||
Software development services amount | $ 154,909 | ¥ 1,000,000 | |||||||||||
Other Fees (in Yuan Renminbi) | ¥ | ¥ 96,300 | ¥ 96,300 | ¥ 96,300 | ¥ 96,300 | |||||||||
Cash | $ 13,280 | ||||||||||||
Payments paid | $ 95,993 | $ 95,993 | $ 95,993 | $ 95,993 | |||||||||
Repaid loan | $ 143,810 | ¥ 1,000,000 |
Income Taxes (Details)
Income Taxes (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 21, 2018 HKD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 CNY (¥) | Jun. 30, 2023 USD ($) | |
Income Taxes (Details) [Line Items] | |||||
Profits tax rates (in Dollars) | $ | $ 2 | ||||
Tax percentage | 8.25% | ||||
Taxed percentage | 16.50% | ||||
Accounting standards rate | 25% | ||||
Taxable income (in Yuan Renminbi) | ¥ 1 | ¥ 3 | |||
Decreased current income taxes (in Dollars) | $ | |||||
Net income per share (in Dollars per share) | $ / shares | |||||
Minimum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Taxable income (in Yuan Renminbi) | ¥ 1 | ||||
Preferential tax rate | 5% | ||||
Maximum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Taxable income (in Yuan Renminbi) | ¥ 3 | ||||
Preferential tax rate | 10% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Components of Income Tax - Income Tax Provision [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes (Details) - Schedule of Components of Income Tax [Line Items] | |||
Current income tax provision | $ 218,962 | $ 1,205,276 | $ 1,464,674 |
Deferred income tax benefit | 455,602 | (334,045) | (47,802) |
Total | $ 674,564 | $ 871,231 | $ 1,416,872 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciles the Statutory Rate to the Company’s Effective Tax Rate | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Reconciles the Statutory Rate to the Company’s Effective Tax Rate [Abstract] | |||
China Statutory income tax rate | 25% | 25% | 25% |
Temporary difference | (4.76%) | 21.04% | |
Permanent difference | (0.01%) | 1.03% | 0.71% |
Effect of different tax jurisdiction | (10.10%) | 8.81% | |
Effect of favorable tax rates on small-scale and low-profit entities | 0.41% | (0.79%) | |
Change in valuation allowance | (13.28%) | ||
Effective tax rate | (2.74%) | 55.88% | 24.92% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Tax Asset - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 3,266,711 | |
Allowance for doubtful accounts | 1,092,957 | 457,649 |
Total deferred tax assets | 4,359,668 | 457,649 |
Valuation allowance | (4,359,668) | |
Total deferred tax assets, net | $ 457,649 |
Lease (Details)
Lease (Details) | 7 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||||||
Feb. 01, 2023 USD ($) | Feb. 01, 2023 CNY (¥) | Jul. 31, 2022 USD ($) | Jul. 31, 2022 CNY (¥) | Mar. 20, 2024 USD ($) m² | Mar. 20, 2024 CNY (¥) m² | Jun. 30, 2023 USD ($) m² | Jun. 30, 2023 CNY (¥) m² | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 08, 2025 USD ($) m² | Mar. 08, 2025 CNY (¥) m² | Feb. 28, 2025 m² | Jul. 31, 2024 m² | Jan. 19, 2024 m² | Jul. 31, 2023 m² | Feb. 24, 2023 m² | |
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 501 | ||||||||||||||||
Lease term | 1 year | ||||||||||||||||
Monthly rent | $ 1,257 | ¥ 9,113 | $ 6,070 | ¥ 44,012 | $ 6,431 | ¥ 46,635 | |||||||||||
Operating lease expense | $ | 84,627 | $ 84,552 | $ 107,139 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 284 | ||||||||||||||||
Forecast [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 22,227 | ||||||||||||||||
Monthly rent | $ 1,727 | ¥ 12,523 | |||||||||||||||
Guangzhou Shuzhi [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Monthly rent | $ 1,514 | ¥ 10,976 | 690 | 5,000 | |||||||||||||
Xiamen Pop Culture [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Monthly rent | 6,952 | 50,000 | |||||||||||||||
Xiamen Pop Culture [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Monthly rent | $ 1,676 | ¥ 12,154 | |||||||||||||||
Xiamen Pop Culture [Member] | Forecast [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 434 | ||||||||||||||||
Lease term | 1 year | ||||||||||||||||
Guangzhou Shuzhi [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 71 | 71 | |||||||||||||||
Monthly rent | $ 1,604 | ¥ 11,628 | |||||||||||||||
Guangzhou Shuzhi [Member] | Forecast [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 68 | ||||||||||||||||
Shenzhen Pop [Member] | Forecast [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 294 | 294 | |||||||||||||||
Lease term | 1 year | 1 year | |||||||||||||||
Monthly rent | $ 5,297 | ¥ 38,408 | |||||||||||||||
Pop Network [Member] | Forecast [Member] | |||||||||||||||||
Lease (Details) [Line Items] | |||||||||||||||||
Square feet (in Square Meters) | 930 | 930 | |||||||||||||||
Lease term | 1 year | 1 year | |||||||||||||||
Monthly rent | $ 3,846 | ¥ 27,888 |
Lease (Details) - Schedule of O
Lease (Details) - Schedule of Operating Lease - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Operating Lease [Abstract] | ||
Right-of-use assets | $ 84,892 | $ 461,399 |
Operating lease liabilities - current | 65,115 | 208,926 |
Operating lease liabilities - non-current | 39,634 | 250,178 |
Total operating lease liabilities | $ 104,749 | $ 459,104 |
Lease (Details) - Schedule of R
Lease (Details) - Schedule of Remaining Lease Term and Discount Rate | Jun. 30, 2023 |
Schedule of Remaining Lease Term and Discount Rate [Abstract] | |
Weighted average remaining lease term (years) | 2 years 1 month 24 days |
Weighted average discount rate | 6.92% |
Lease (Details) - Schedule of F
Lease (Details) - Schedule of Future Minimum Rent Payable | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Schedule of Future Minimum Rent Payable [Abstract] | |
2024 | $ 64,646 |
2025 | 49,556 |
Thereafter | |
Total lease payments | 111,202 |
Less: imputed interest | (6,453) |
Present value of lease liabilities | $ 104,749 |
Ordinary Shares (Details)
Ordinary Shares (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 09, 2021 | Jan. 03, 2020 | May 30, 2020 | Feb. 22, 2020 | Oct. 31, 2019 | Jun. 30, 2023 | Jun. 30, 2021 | Oct. 09, 2023 | Jul. 02, 2021 | |
Ordinary Shares (Details) [Line Items] | |||||||||
Ordinary shares issued | 3,760,911 | 2,015,400 | |||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | ||||||||
Capital injection (in Dollars) | $ 2,557,654 | ||||||||
Redesignation, description | the Company approved the re-designation of 5,763,077 of the Company’s issued ordinary shares held by Joya Enterprises Limited into 5,763,077 Class B ordinary shares and an aggregate of 9,178,234 of the Company’s issued ordinary shares held by Joya Enterprises Limited and certain other shareholders into 9,178,234 Class A ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. In respect of matters requiring a shareholder vote, each holder of Class A ordinary shares will be entitled to one vote per one Class A ordinary share and each holder of Class B ordinary shares will be entitled to seven votes per one Class B ordinary share. The Class A ordinary shares are not convertible into shares of any other class. The Class B ordinary shares are convertible into Class A ordinary shares at any time after issuance at the option of the holder on a one-to-one basis. | ||||||||
Class A Ordinary Shares [Member] | |||||||||
Ordinary Shares (Details) [Line Items] | |||||||||
Ordinary shares issued | 1,065,089 | 500,000 | |||||||
Nominal cash consideration (in Dollars) | $ 500 | ||||||||
Aggregate share issued | 1,343,600 | ||||||||
Investors for cash consideration (in Dollars) | $ 1,707,893 | ||||||||
Non controlling interests | 6.45% | ||||||||
Class A Ordinary Shares [Member] | Initial Public Offering [Member] | |||||||||
Ordinary Shares (Details) [Line Items] | |||||||||
Ordinary shares issued | 6,200,000 | ||||||||
Shares price per share (in Dollars per share) | $ 6 | ||||||||
Aggregate amount (in Dollars) | $ 34,839,398 | ||||||||
Purchase price | 6,200,000 | ||||||||
Underwriting discounts (in Dollars) | $ 37,200,000 | ||||||||
Forecast [Member] | |||||||||
Ordinary Shares (Details) [Line Items] | |||||||||
Shares price per share (in Dollars per share) | $ 0.001 | ||||||||
Unissued capital price per share (in Dollars per share) | $ 0.01 | ||||||||
Joya Enterprises Limited [Member] | |||||||||
Ordinary Shares (Details) [Line Items] | |||||||||
Ordinary shares issued | 9,165,000 | ||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 |
Statutory Reserve (Details)
Statutory Reserve (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Statutory Reserve [Abstract] | |||
Net profit after income tax percentage | 10% | ||
Registered capital percentage | 50% | ||
Registered capital amount | $ 2,200,124 | $ 2,207,933 |
Statutory Reserve (Details) - S
Statutory Reserve (Details) - Schedule of Statutory Reserve - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Statutory Reserve [Abstract] | |||
Balance | $ 1,499,369 | $ 1,241,573 | $ 779,094 |
Appropriation to statutory reserve | 37,859 | 257,796 | 462,479 |
Balance | $ 1,537,228 | $ 1,499,369 | $ 1,241,573 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Restricted Net Assets [Abstract] | ||
Restricted net assets | $ 16,378,052 | $ 16,791,325 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information (Details) - Schedule of Condensed Balance Sheets - Parent Company [Member] - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | |
CURRENT ASSETS | |||
Cash | $ 1,095,007 | $ 9,085,082 | |
Prepaid expenses and other current assets | 4,179,826 | 4,250,071 | |
Due from subsidiaries and the VIE | 2,607,402 | ||
TOTAL CURRENT ASSETS | 7,882,235 | 13,335,153 | |
Intangible asset, net | 696,000 | ||
Other non-current assets | 5,062,966 | 8,903,166 | |
Investments in subsidiaries, consolidated VIE, and VIE’s subsidiaries | 13,821,695 | 29,919,831 | |
TOTAL ASSETS | 26,766,896 | 52,854,150 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Other Payable | 31,600 | 90,165 | |
TOTAL CURRENT LIABILITIES | 31,600 | 90,165 | |
TOTAL LIABILITIES | 31,600 | 90,165 | |
SHAREHOLDERS’ EQUITY | |||
Ordinary shares (par value $0.01 per share; 4,400,000 Class A ordinary shares authorized, 1,828,693 Class A ordinary shares issued and outstanding as of June 30, 2022 and 2023, respectively; 600,000 Class B ordinary shares authorized, 576,308 Class B ordinary shares issued and outstanding as of June 30, 2022 and 2023)* | [1] | 24,050 | 24,050 |
Subscription receivable | (15,441) | (15,441) | |
Additional paid-in capital | 40,174,260 | 40,158,643 | |
Retained earnings | (11,802,701) | 12,527,714 | |
Accumulated other comprehensive (loss) income | (1,644,872) | 69,019 | |
TOTAL SHAREHOLDERS’ EQUITY | 26,735,296 | 52,763,985 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 26,766,896 | $ 52,854,150 | |
[1]Retroactively restated to reflect 1-for-10 share consolidation effective on October 26, 2023 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information (Details) - Schedule of Condensed Balance Sheets (Parentheticals) - Parent Company [Member] - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Class A Ordinary Shares [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 4,400,000 | 4,400,000 |
Ordinary shares, shares issued | 1,828,693 | 1,828,693 |
Ordinary shares, shares outstanding | 1,828,693 | 1,828,693 |
Class B Ordinary Shares [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, shares authorized | 600,000 | 600,000 |
Ordinary shares, shares issued | 576,308 | 576,308 |
Ordinary shares, shares outstanding | 576,308 | 576,308 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information (Details) - Schedule of Condensed Statements of Operations and Comprehensive Income (Loss) - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Statement of Income Captions [Line Items] | |||
Revenue | $ 257,169 | ||
Cost of Revenue | 150,000 | ||
Gross profit | 107,169 | ||
Selling expenses | 125,000 | ||
General and administrative expenses | 1,128,970 | 1,594,856 | 330,734 |
Financial expenses (income) | (1,452) | (11,094) | |
Research and development expenses | 8,671,107 | ||
Income (Loss) from operation | (9,816,456) | (1,583,762) | (330,734) |
Other income (loss) | (114,097) | ||
Share of income (loss) of subsidiaries, consolidated VIE, and VIE’s subsidiaries | (14,399,862) | 2,371,720 | 4,598,276 |
Income (loss) before income tax expenses | (24,330,415) | 787,958 | 4,267,542 |
Income tax expenses | |||
Net income (loss) | (24,330,415) | 787,958 | 4,267,542 |
Other Comprehensive income (loss) | |||
Foreign currency translation income (loss) | (1,713,891) | (873,803) | 1,335,757 |
Total comprehensive income (loss) | $ (26,044,306) | $ (85,845) | $ 5,603,299 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information (Details) - Schedule of Condensed Statements of Cash Flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (24,330,415) | $ (8,226,043) | $ (75,805) |
Depreciation and amortization | 696,000 | ||
Equity loss (income) of subsidiaries | 14,399,862 | ||
Other current assets | 70,245 | ||
Other payable | (58,565) | ||
Due from subsidiaries and the VIE | (2,607,402) | ||
Other non-current assets | 8,440,200 | ||
Net cash used in operating activities | (3,390,075) | (8,226,043) | (75,805) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Investment in a subsidiary | (11,050,252) | (600,000) | |
Purchase of intangible assets | (720,000) | ||
Advance paid for agent license | (4,600,000) | ||
Net cash used in investing activities | (4,600,000) | (11,770,252) | (600,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of shares | 33,521,725 | ||
Payment for deferred offering costs | (3,570,805) | (459,164) | |
Net cash provided by (used in) financing activities | 29,950,920 | (459,164) | |
Effect of exchange rate changes | (873,803) | ||
Net increase (decrease) in cash | (7,990,075) | 9,080,822 | (1,134,969) |
Cash at beginning of period | 9,085,082 | 4,260 | 1,139,229 |
Cash at end of period | $ 1,095,007 | $ 9,085,082 | $ 4,260 |