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The Company is principally engaged in the marketing and sale of advanced indoor and greenhouse lighting, ventilation systems, nutrients, growing media, grow tents, trimming machines, pumps and accessories mainly in the North America.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective on March 1, 2020, as amended and restated pursuant to an agreement dated October 26, 2020, the Company entered into an agreement with E Marketing Solution Inc. (“E Marketing”), an entity incorporated in California and owned by one of the shareholders of the Company. Pursuant to the terms of the agreement, the Company agreed to provide technical support, management services and other services on an exclusive basis in relation to E Marketing’s business during the term of the agreement. The Company also agreed to fund E Marketing for operational cash flow needs and bear the risk of E Marketing’s losses from operations and E Marketing agreed that iPower has rights to E Marketing’s net profits, if any. Under the terms of the agreement, the Company may at any time, at its option, acquire for nominal consideration 100% of either the equity of E Marketing or its assets subject to assumption of all of its liabilities. E Marketing was considered a variable interest entity (“VIE”). On May 18, 2021, the Company acquired 100% equity ownership of E Marketing. As a result, E Marketing has become the Company’s wholly owned subsidiary.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 4, 2020, the Company entered into an agreement with Global Product Marketing Inc. (“GPM”), an entity incorporated in the State of Nevada on September 4, 2020. GPM was then wholly owned by Chenlong Tan, the Chairman, CEO and President and one of the majority shareholders of the Company. Pursuant to the terms of the agreement, the Company was to provide technical support, management services and other services on an exclusive basis in relation to GPM’s business during the term of the Agreement. In addition, the Company agreed to fund GPM for operational cash flow needs and bear the risk of GPM’s losses from operations and GPM agreed that the Company has the right to GPM’s net profits, if any. Under the terms of the agreement, the Company may at any time, at its option, acquire for nominal consideration 100% of either the equity of GPM or its assets subject to assumption of all of its liabilities. GPM was considered a VIE. On May 18, 2021, the Company acquired <span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20210518__srt--OwnershipAxis__custom--GPMMember_zWF6jwnhuflk" title="Ownership Percentage">100</span>% equity ownership of GPM. As a result, GPM has become the Company’s wholly owned subsidiary.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January 13, 2022, the Company entered into a joint venture agreement and formed a Nevada limited liability company, Box Harmony, LLC (“Box Harmony”), for the principal purpose of providing logistic services primarily for foreign-based manufacturers or distributors who desire to sell their products online in the United States, with such logistic services to include, without limitation, receiving, storing and transporting such products. The Company owns 40% of the equity interest in Box Harmony, retaining significant influence, but does not own a majority equity interest or otherwise control of Box Harmony. See details on Note 3 below.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 10, 2022, the Company entered into another joint venture agreement and formed a Nevada limited liability company, Global Social Media, LLC (“GSM”), for the principal purpose of providing a social media platform, contents and services to assist businesses, including the Company and other businesses, in marketing their products. The Company owns 60% of the equity interest in GSM and controls its operations. See details on Note 3 below.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, the Company acquired 100% of the ordinary shares of Anivia Limited (“Anivia”), a corporation organized under the laws of the British Virgin Islands (“BVI”), in accordance with the terms of a share transfer framework agreement (the “Transfer Agreement”), dated February 15, 2022, by and between the Company, White Cherry Limited, a BVI company (“White Cherry”), White Cherry’s equity holders, Li Zanyu and Xie Jing (together with White Cherry, the “Sellers”), Anivia, Fly Elephant Limited, a Hong Kong company, Dayou Renzai (Shenzhen) Technology Company Limited, and Daheshou (Shenzhen) Information Technology Limited. Anivia owns 100% of the equity of Fly Elephant Limited, which in turn owns 100% of the equity of Dayou Renzai (Shenzhen) Technology Co., Ltd., a corporation located in the People’s Republic of China (“PRC”) and which is a wholly foreign-owned enterprise (“WFOE”) of Fly Elephant Limited. The WFOE controls, through contractual arrangements summarized below, the business, revenues and profits of Daheshou (Shenzhen) Information Technology Co., Ltd., a company organized under the Laws of the PRC (“DHS”) and located in Shenzhen, China. See details on Note 4 below.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> 1 <p id="xdx_80F_eus-gaap--SignificantAccountingPoliciesTextBlock_zfgMLwJ0mrSj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 2 – <span id="xdx_827_zYyFAwJnUiHd">Basis of Presentation and Summary of significant accounting policies</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_84E_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zZKKlMi8dr8k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_864_zk5j8rqjM7r3">Basis of presentation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as its annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2022, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Annual Report for the year ended June 30, 2021, which are included in the Company’s Annual Report on Form 10-K filed on September 28, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--ConsolidationPolicyTextBlock_z1BiPu08U3Je" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_868_zDYQ6OzJIAK1">Principles of Consolidation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, E Marketing Solution Inc., Global Product Marketing Inc., Global Social Media, LLC, and Anivia Limited and its subsidiaries and VIE. All inter-company balances and transactions have been eliminated.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zvaeWp9rd4Ki" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_865_zGt21bWKduy4">Reclassifications</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain prior period expense accounts have been reclassified in conformity with current period presentation including reclassification of $1.8 million from general administrative expenses to selling and fulfillment expenses for the nine months ended March 31, 2021. The reclassification had no effect to the company’s unaudited condensed consolidated statements of operations, statements of cash flow or statements of changes in stockholders’ equity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_840_eus-gaap--UseOfEstimates_zkJPbcgZn8A1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_860_zHZ91JSFO5P6">Use of estimates and assumptions</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zvTOgw00c2Sl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_868_zb93TbGzicle">Foreign currency translation and transactions</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The reporting and functional currency of iPower and subsidiaries is the U.S. dollar (USD). iPower’s VIE in China uses the local currency, Renminbi (“RMB”), as its functional currency. Assets and liabilities of the VIE are translated at the current exchange rate as quoted by the People’s Bank of China (the “PBOC”) at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) in the statement of changes stockholders’ in equity. 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The balance sheet amounts of the VIE, with the exception of equity, on March 31, 2022, were translated at <span id="xdx_907_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_c20220331__srt--CurrencyAxis__currency--CNY_zR16odL3Z5p3" title="Translation rate at period end">6.34</span> RMB to $1.00. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the quarter ended March 31, 2022 was <span id="xdx_905_ecustom--ForeignCurrencyExchangeRateTranslation2_c20220101__20220331__srt--CurrencyAxis__currency--CNY_z2SLP2rFPaCg" title="Translation rate during period">6.35</span> RMB to $1.00. Cash flows were also translated at average translation rates for the period and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_845_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zo9ytCdl982" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_86F_z9N6Fcvo3IS3">Cash and cash equivalents</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash and cash equivalents consist of amounts held as cash on hand and deposits in financial institutions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, the Company may maintain bank balances in interest bearing accounts in excess of the $<span id="xdx_90E_eus-gaap--CashFDICInsuredAmount_c20220331_pp0p0" title="Excess FDIC amount">250,000</span> currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). The Company has not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84D_eus-gaap--ReceivablesPolicyTextBlock_zfx3Bo5CI6ok" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86B_zxDyWiKjJdjl">Accounts receivable, net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the ordinary course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. Management reviews its accounts receivable balances each reporting period to determine if an allowance for credit loss is required.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2020, the Company adopted ASU 2016-13, Topics 326 - Credit Loss, Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology, for its accounting standard for its trade accounts receivable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates the creditworthiness of all of its customers individually before accepting them and continuously monitors the recoverability of accounts receivable. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company develops allowance for credit losses:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px; font-size: 10pt"> </td> <td style="width: 24px; font-size: 10pt"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer fails to comply with its payment schedule;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer is in serious financial difficulty;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a significant dispute with the customer has occurred regarding job progress or other matters;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer breaches any of its contractual obligations;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer appears to be financially distressed due to economic or legal factors;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the business between the customer and the Company is not active; and</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">other objective evidence indicates non-collectability of the accounts receivable.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements. Accounts receivable are recognized and carried at carrying amount less an allowance for credit losses, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in calculation of allowance for credit losses the potential impact of the COVID-19 pandemic on our customers’ businesses and their ability to pay their accounts receivable. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions, including the potential impact of the COVID-19 pandemic. In the event we recover amounts previously written off, we will reduce the specific allowance for credit losses.</p> <p id="xdx_846_eus-gaap--EquityMethodInvestmentsPolicy_zZ44AGVayqF3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Equity method investment </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for its ownership interest in Box Harmony, a <span id="xdx_905_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_dp_c20220331__dei--LegalEntityAxis__custom--BoxHarmonyMember_zZy329eXIfn7">40</span>% owned joint venture, following the equity method of accounting, in accordance with ASC 323, Investments —Equity Method and Joint Ventures. Under this method, the carrying cost is initially recorded at cost and then increased or decreased by recording its percentage of gain or loss in its statement of operations and a corresponding charge or credit to the carrying value of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_846_eus-gaap--BusinessCombinationsPolicy_zXG9xXvpYrF6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_860_zkMSsfEf1HIk">Business Combination</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, the Company acquired 100% of the ordinary shares of Anivia Limited (“Anivia”) and its subsidiaries, including the VIE. The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred. See Note 4 for details on acquisition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_847_ecustom--VariableInterestEntitiesPolicyTextBlock_zTOa3JE3pbE6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_863_zpJmnwvUx2p4">Variable interest entities</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, the Company acquired 100% of the ordinary shares of Anivia Limited (“Anivia”) and its subsidiaries, including Daheshou (Shenzhen) Information Technology Co., Ltd., a company organized under the Laws of the PRC (“DHS”). Pursuant to the terms of the Agreements, the Company does not have direct ownership in DHS but is actively involved in DHS’s operations as the sole manager to direct the activities and significantly impact DHS’s economic performance. DHS’s operational funding is provided by the Company after February 15, 2022. During the term of the agreements, the Company bears all the risk of loss and has the right to receive all of the benefits from DHS. As such, based on the determination that the Company is the primary beneficiary of DHS, in accordance with ASC 810-10-25-38A through 25-38J, DHS is considered a variable interest entity (“VIE”) of the Company and the financial statements of DHS have been consolidated from the date such control existed, February 15, 2022. See Note 4 and Note 5 for details on acquisition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #027D01"> </p> <p id="xdx_847_eus-gaap--GoodwillAndIntangibleAssetsGoodwillPolicy_zoc3Fb8YKXn8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_z6w2yGmvb36k">Goodwill</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed. The Company accounts for goodwill under <i>ASC Topic 350, Intangibles-Goodwill and Other</i>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not have any other indefinite-lived intangible assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_84B_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zTGKYUZcExCk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_861_z8FDGLCntJe9">Intangible Assets, net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white">Finite life intangible assets at March 31, 2022 include covenant not to compete, supplier relationship, and software recognized as part of the acquisition of Anivia Limited. Intangible assets are recorded at the estimated fair value of these items at the date of acquisition, February 15, 2022. Intangible assets are amortized on a straight-line basis over their estimated useful life as followings:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"/></p> <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zGcd7z5DFfC" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 39%" summary="xdx: Disclosure - Basis of Presentation and Summary of significant accounting policies (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zlWTUkTuMcD7" style="display: none">Schedule of estimated useful life</span></td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 25%; text-align: left">Covenant Not to Compete</td><td style="width: 1%"> </td> <td style="width: 13%; text-align: center"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zMhD5XySPmyf" title="Intangible Asset, Useful Life">10</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Supplier relationship</td><td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zay0IEPEmyzd">6</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Software</td><td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_z8m4Jawo8Iog">5</span> years</td></tr> </table> <p id="xdx_8AD_zyklWnlrcG0a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z2rOIWfhtmnk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zcbClbr3p7le">Fair values of financial instruments</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current assets and liabilities approximate fair values due to their short-term nature.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, as part of the consideration for the acquisition of Anivia Limited, the Company issued a two-year unsecured <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zka50iZu497k">6</span>% subordinated promissory note, payable in equal semi-annual installments commencing August 15, 2022 (the “Purchase Note”). The principal amount of the Purchase Note was $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_dm_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zp6paHaqx1ra">3.5</span> million. On February 15, 2022, the Company evaluated the fair value of the Purchase Note to be $<span id="xdx_908_ecustom--FairValueOfPurchaseNote_pn3n3_dm_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zoFdAzCKmmB7" title="Fair value of promissory note">3.6</span> million using the following inputs:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"/> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 8%"> </td> <td style="width: 20%">Corporate bond yield</td> <td style="width: 72%">3.1%</td></tr> <tr style="vertical-align: top; text-align: left"> <td> </td> <td>Risk-free rate</td> <td>1.6%</td></tr> <tr style="vertical-align: top; text-align: left"> <td> </td> <td>Liquidity premium</td> <td>0.4%</td></tr> <tr style="vertical-align: top; text-align: left"> <td> </td> <td>Discount rate</td> <td>3.5%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of March 31, 2022, the outstanding principal balance of the Purchase Note was $<span id="xdx_904_eus-gaap--LongTermDebt_iI_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zFD0ZRGfz0y3">3,626,879</span>, including premium of $<span id="xdx_90C_eus-gaap--DebtInstrumentUnamortizedPremium_iI_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zmWgyRwekIK6">100,629</span> and $<span id="xdx_909_eus-gaap--InterestPayableCurrent_iI_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zErKK8iuN4ie">26,250</span> of accrued interest.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For other financial instruments to be reported at fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_84B_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zaK19aBbb754" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_zayzxolZGI7i">Revenue recognition</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has adopted Accounting Standards Codification (“ASC”) 606 since its inception on April 11, 2018 and recognizes revenue from product sales in the United States, Canada, Europe and other regions, net of promotional discounts and return allowances, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation. The Company transfers the risk of loss or damage upon shipment, therefore, revenue from product sales is recognized when it is shipped to the customer. Return allowances, which reduce product revenue by the Company’s best estimate of expected product returns, are estimated using historical experience.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">   </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates the criteria of ASC 606 - Revenue Recognition Principal Agent Considerations in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when the Company is primarily responsible for fulfilling the promise to provide a specified good or service, the Company is subject to inventory risk before the good or service has been transferred to a customer and the Company has discretion in establishing the price, revenue is recorded at gross.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payments received prior to the delivery of goods to customers are recorded as customer deposits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases and other similar offers. Current discount offers, when accepted by the Company’s customers, are treated as a reduction to the purchase price of the related transaction.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are estimated based on historical amounts and are recorded upon recognizing the related sales. Shipping and handling costs are recorded as selling expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84D_eus-gaap--AdvertisingCostsPolicyTextBlock_zEXVgaLdFd1h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zTwu2RN5w7Cl">Advertising costs</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Advertising costs are expensed as incurred. Total advertising and promotional costs included in selling and fulfillment expenses for the three and nine months were as following: </p> <table cellpadding="0" cellspacing="0" id="xdx_891_ecustom--ScheduleOfAdvertisingCostsTableTextBlock_zVkJVVoYBIZ3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of significant accounting policies (Details 1)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B1_zNcX19aFnX3a" style="display: none">Schedule of advertising costs</span></td><td> </td> <td colspan="2" id="xdx_495_20220101__20220331_zqeQD0ZHl7uj" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20210101__20210331_zbbHtux7EDph" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49C_20210701__20220331_zeqTvQecrcTh" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20200701__20210331_zJrthrEpIEcc" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--AdvertisingExpense_i_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Advertising and promotion</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">733,241</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">443,163</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,945,222</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,164,119</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zXtsu00xUu63" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_846_ecustom--CostOfRevenuePolicyTextBlock_z5D3kf1TOE91" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_866_zoGH4m20HEub">Cost of revenue</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of revenue mainly consists of costs for purchases of products and related inbound freight and delivery fees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--InventoryPolicyTextBlock_zdOu6fzqW8ic" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86E_zA2mpKjiU8sg">Inventory, net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventory consists of finished goods ready for sale and is stated at the lower of cost or market. The Company values its inventory using the weighted average costing method. The Company’s policy is to include as a part of cost of goods sold any freight incurred to ship the product from its vendors to warehouses. Outbound freight costs related to shipping costs to customers are considered periodic costs and are reflected in selling and fulfillment expenses. The Company regularly reviews inventory and considers forecasts of future demand, market conditions and product obsolescence.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the estimated realizable value of the inventory is less than cost, the Company makes provisions in order to reduce its carrying value to its estimated market value. The Company also reviews inventory for slow moving inventory and obsolescence and records allowance for obsolescence.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_84A_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zseq2ApiwIyi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_869_zf54cqshT0q4">Segment reporting</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows ASC 280, Segment Reporting. The Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results of operations 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 does not distinguish between markets or segments for the purpose of internal reporting. For the nine months ended March 31, 2022, sales through Amazon to Canada were approximately <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--AmazonSalesToCanadaMember_zr3U5e0gUJlj">5.7</span>% of the Company’s total sales. The Company’s majority of long-lived assets are located in California, United States, and majority of the Company’s revenues are derived from within the United States. Therefore, no geographical segments are presented.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_848_eus-gaap--LesseeLeasesPolicyTextBlock_zHWEzH8uaX2h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_zXthm0Ug3rai">Leases</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On its inception date, April 11, 2018, the Company adopted ASC 842 – Leases (“ASC 842”), which requires lessees to record right-of-use (“ROU”) assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ROU assets represent our right to use an underlying asset for the lease terms and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--ShareBasedCompensationForfeituresPolicyTextBlock_zQOjQHr7g5Nf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86B_zzq65Y2WN3uf">Stock-based Compensation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company applies ASC No. 718, “Compensation-Stock Compensation,” which requires that share-based payment transactions with employees and nonemployees upon adoption of ASU 2018-07, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will recognize forfeitures of such equity-based compensation as they occur.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p id="xdx_84A_eus-gaap--IncomeTaxPolicyTextBlock_zUNyCi9XH8v2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_866_zFq68q243zFe">Income taxes</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the 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 that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company has adopted the provisions of ASC 740 since inception, April 11, 2018, and has analyzed filing positions in each of the federal and state jurisdictions where the Company is required to file income tax returns, as well as open tax years in such jurisdictions. The Company has identified the U.S. federal jurisdiction, and the states of Nevada and California, as its “major” tax jurisdictions. However, the Company has certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company believes that our income tax filing positions and deductions will be sustained upon audit and do not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company’s policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">   </p> <p id="xdx_844_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zQURqD95n7cd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86C_zCtz81KzzPyb">Commitments and contingencies</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the ordinary course of business, the Company is subject to certain contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--EarningsPerSharePolicyTextBlock_ze97V3fCyV0l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86B_zNnqE9zsUW6g">Earnings per share</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings per share are computed by dividing net income attributable to holders of common stock by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities to issue common stock were exercised.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84E_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_znx3tqaV44a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_zGjaKg4afbRk">Recently issued accounting pronouncements</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40).” This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock, as well as amends the guidance for the derivatives scope exception for contracts in an entity’s own equity for purposes of reducing form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related EPS guidance. This standard becomes effective for the Company on July 1, 2022, including interim periods within those fiscal years. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company does not expect the adoption of this standard have a material impact on the consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The update is intended to simplify the current rules regarding the accounting for income taxes and addresses several technical topics including accounting for franchise taxes, allocating income taxes between a loss in continuing operations and in other categories such as discontinued operations, reporting income taxes for legal entities that are not subject to income taxes, and interim accounting for enacted changes in tax laws. The new standard is effective for fiscal years beginning after December 15, 2020; however, early adoption is permitted. Adoption of this standard did not have a material impact on the consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--SubsequentEventsPolicyPolicyTextBlock_zjJFCL9QR66h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_864_zF1yjIZE4Ay7">Subsequent events</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the consolidated financial statements are available to be issued. Material subsequent events that required recognition or additional disclosure in the consolidated financial statements are presented.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84E_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zZKKlMi8dr8k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_864_zk5j8rqjM7r3">Basis of presentation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as its annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2022, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Annual Report for the year ended June 30, 2021, which are included in the Company’s Annual Report on Form 10-K filed on September 28, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--ConsolidationPolicyTextBlock_z1BiPu08U3Je" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_868_zDYQ6OzJIAK1">Principles of Consolidation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, E Marketing Solution Inc., Global Product Marketing Inc., Global Social Media, LLC, and Anivia Limited and its subsidiaries and VIE. All inter-company balances and transactions have been eliminated.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zvaeWp9rd4Ki" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_865_zGt21bWKduy4">Reclassifications</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain prior period expense accounts have been reclassified in conformity with current period presentation including reclassification of $1.8 million from general administrative expenses to selling and fulfillment expenses for the nine months ended March 31, 2021. The reclassification had no effect to the company’s unaudited condensed consolidated statements of operations, statements of cash flow or statements of changes in stockholders’ equity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_840_eus-gaap--UseOfEstimates_zkJPbcgZn8A1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_860_zHZ91JSFO5P6">Use of estimates and assumptions</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zvTOgw00c2Sl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_868_zb93TbGzicle">Foreign currency translation and transactions</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The reporting and functional currency of iPower and subsidiaries is the U.S. dollar (USD). iPower’s VIE in China uses the local currency, Renminbi (“RMB”), as its functional currency. Assets and liabilities of the VIE are translated at the current exchange rate as quoted by the People’s Bank of China (the “PBOC”) at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) in the statement of changes stockholders’ in equity. 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The balance sheet amounts of the VIE, with the exception of equity, on March 31, 2022, were translated at <span id="xdx_907_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_c20220331__srt--CurrencyAxis__currency--CNY_zR16odL3Z5p3" title="Translation rate at period end">6.34</span> RMB to $1.00. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the quarter ended March 31, 2022 was <span id="xdx_905_ecustom--ForeignCurrencyExchangeRateTranslation2_c20220101__20220331__srt--CurrencyAxis__currency--CNY_z2SLP2rFPaCg" title="Translation rate during period">6.35</span> RMB to $1.00. Cash flows were also translated at average translation rates for the period and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 6.34 6.35 <p id="xdx_845_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zo9ytCdl982" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_86F_z9N6Fcvo3IS3">Cash and cash equivalents</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash and cash equivalents consist of amounts held as cash on hand and deposits in financial institutions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, the Company may maintain bank balances in interest bearing accounts in excess of the $<span id="xdx_90E_eus-gaap--CashFDICInsuredAmount_c20220331_pp0p0" title="Excess FDIC amount">250,000</span> currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). The Company has not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 250000 <p id="xdx_84D_eus-gaap--ReceivablesPolicyTextBlock_zfx3Bo5CI6ok" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86B_zxDyWiKjJdjl">Accounts receivable, net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the ordinary course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. Management reviews its accounts receivable balances each reporting period to determine if an allowance for credit loss is required.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2020, the Company adopted ASU 2016-13, Topics 326 - Credit Loss, Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology, for its accounting standard for its trade accounts receivable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates the creditworthiness of all of its customers individually before accepting them and continuously monitors the recoverability of accounts receivable. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company develops allowance for credit losses:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px; font-size: 10pt"> </td> <td style="width: 24px; font-size: 10pt"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer fails to comply with its payment schedule;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer is in serious financial difficulty;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a significant dispute with the customer has occurred regarding job progress or other matters;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer breaches any of its contractual obligations;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the customer appears to be financially distressed due to economic or legal factors;</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the business between the customer and the Company is not active; and</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">other objective evidence indicates non-collectability of the accounts receivable.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements. Accounts receivable are recognized and carried at carrying amount less an allowance for credit losses, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in calculation of allowance for credit losses the potential impact of the COVID-19 pandemic on our customers’ businesses and their ability to pay their accounts receivable. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions, including the potential impact of the COVID-19 pandemic. In the event we recover amounts previously written off, we will reduce the specific allowance for credit losses.</p> <p id="xdx_846_eus-gaap--EquityMethodInvestmentsPolicy_zZ44AGVayqF3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Equity method investment </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for its ownership interest in Box Harmony, a <span id="xdx_905_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_dp_c20220331__dei--LegalEntityAxis__custom--BoxHarmonyMember_zZy329eXIfn7">40</span>% owned joint venture, following the equity method of accounting, in accordance with ASC 323, Investments —Equity Method and Joint Ventures. Under this method, the carrying cost is initially recorded at cost and then increased or decreased by recording its percentage of gain or loss in its statement of operations and a corresponding charge or credit to the carrying value of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 0.40 <p id="xdx_846_eus-gaap--BusinessCombinationsPolicy_zXG9xXvpYrF6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_860_zkMSsfEf1HIk">Business Combination</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, the Company acquired 100% of the ordinary shares of Anivia Limited (“Anivia”) and its subsidiaries, including the VIE. The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred. See Note 4 for details on acquisition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_847_ecustom--VariableInterestEntitiesPolicyTextBlock_zTOa3JE3pbE6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_863_zpJmnwvUx2p4">Variable interest entities</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, the Company acquired 100% of the ordinary shares of Anivia Limited (“Anivia”) and its subsidiaries, including Daheshou (Shenzhen) Information Technology Co., Ltd., a company organized under the Laws of the PRC (“DHS”). Pursuant to the terms of the Agreements, the Company does not have direct ownership in DHS but is actively involved in DHS’s operations as the sole manager to direct the activities and significantly impact DHS’s economic performance. DHS’s operational funding is provided by the Company after February 15, 2022. During the term of the agreements, the Company bears all the risk of loss and has the right to receive all of the benefits from DHS. As such, based on the determination that the Company is the primary beneficiary of DHS, in accordance with ASC 810-10-25-38A through 25-38J, DHS is considered a variable interest entity (“VIE”) of the Company and the financial statements of DHS have been consolidated from the date such control existed, February 15, 2022. See Note 4 and Note 5 for details on acquisition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #027D01"> </p> <p id="xdx_847_eus-gaap--GoodwillAndIntangibleAssetsGoodwillPolicy_zoc3Fb8YKXn8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_z6w2yGmvb36k">Goodwill</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed. The Company accounts for goodwill under <i>ASC Topic 350, Intangibles-Goodwill and Other</i>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not have any other indefinite-lived intangible assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_84B_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zTGKYUZcExCk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_861_z8FDGLCntJe9">Intangible Assets, net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white">Finite life intangible assets at March 31, 2022 include covenant not to compete, supplier relationship, and software recognized as part of the acquisition of Anivia Limited. Intangible assets are recorded at the estimated fair value of these items at the date of acquisition, February 15, 2022. Intangible assets are amortized on a straight-line basis over their estimated useful life as followings:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"/></p> <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zGcd7z5DFfC" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 39%" summary="xdx: Disclosure - Basis of Presentation and Summary of significant accounting policies (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zlWTUkTuMcD7" style="display: none">Schedule of estimated useful life</span></td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 25%; text-align: left">Covenant Not to Compete</td><td style="width: 1%"> </td> <td style="width: 13%; text-align: center"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zMhD5XySPmyf" title="Intangible Asset, Useful Life">10</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Supplier relationship</td><td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zay0IEPEmyzd">6</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Software</td><td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_z8m4Jawo8Iog">5</span> years</td></tr> </table> <p id="xdx_8AD_zyklWnlrcG0a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zGcd7z5DFfC" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 39%" summary="xdx: Disclosure - Basis of Presentation and Summary of significant accounting policies (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zlWTUkTuMcD7" style="display: none">Schedule of estimated useful life</span></td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 25%; text-align: left">Covenant Not to Compete</td><td style="width: 1%"> </td> <td style="width: 13%; text-align: center"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zMhD5XySPmyf" title="Intangible Asset, Useful Life">10</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Supplier relationship</td><td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zay0IEPEmyzd">6</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Software</td><td> </td> <td style="text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_dtY_c20210701__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_z8m4Jawo8Iog">5</span> years</td></tr> </table> P10Y P6Y P5Y <p id="xdx_84A_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z2rOIWfhtmnk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zcbClbr3p7le">Fair values of financial instruments</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current assets and liabilities approximate fair values due to their short-term nature.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, as part of the consideration for the acquisition of Anivia Limited, the Company issued a two-year unsecured <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zka50iZu497k">6</span>% subordinated promissory note, payable in equal semi-annual installments commencing August 15, 2022 (the “Purchase Note”). The principal amount of the Purchase Note was $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_dm_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zp6paHaqx1ra">3.5</span> million. On February 15, 2022, the Company evaluated the fair value of the Purchase Note to be $<span id="xdx_908_ecustom--FairValueOfPurchaseNote_pn3n3_dm_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zoFdAzCKmmB7" title="Fair value of promissory note">3.6</span> million using the following inputs:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"/> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 8%"> </td> <td style="width: 20%">Corporate bond yield</td> <td style="width: 72%">3.1%</td></tr> <tr style="vertical-align: top; text-align: left"> <td> </td> <td>Risk-free rate</td> <td>1.6%</td></tr> <tr style="vertical-align: top; text-align: left"> <td> </td> <td>Liquidity premium</td> <td>0.4%</td></tr> <tr style="vertical-align: top; text-align: left"> <td> </td> <td>Discount rate</td> <td>3.5%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of March 31, 2022, the outstanding principal balance of the Purchase Note was $<span id="xdx_904_eus-gaap--LongTermDebt_iI_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zFD0ZRGfz0y3">3,626,879</span>, including premium of $<span id="xdx_90C_eus-gaap--DebtInstrumentUnamortizedPremium_iI_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zmWgyRwekIK6">100,629</span> and $<span id="xdx_909_eus-gaap--InterestPayableCurrent_iI_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zErKK8iuN4ie">26,250</span> of accrued interest.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For other financial instruments to be reported at fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 0.06 3500000 3600000 3626879 100629 26250 <p id="xdx_84B_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zaK19aBbb754" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_zayzxolZGI7i">Revenue recognition</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has adopted Accounting Standards Codification (“ASC”) 606 since its inception on April 11, 2018 and recognizes revenue from product sales in the United States, Canada, Europe and other regions, net of promotional discounts and return allowances, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation. The Company transfers the risk of loss or damage upon shipment, therefore, revenue from product sales is recognized when it is shipped to the customer. Return allowances, which reduce product revenue by the Company’s best estimate of expected product returns, are estimated using historical experience.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">   </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates the criteria of ASC 606 - Revenue Recognition Principal Agent Considerations in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when the Company is primarily responsible for fulfilling the promise to provide a specified good or service, the Company is subject to inventory risk before the good or service has been transferred to a customer and the Company has discretion in establishing the price, revenue is recorded at gross.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payments received prior to the delivery of goods to customers are recorded as customer deposits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases and other similar offers. Current discount offers, when accepted by the Company’s customers, are treated as a reduction to the purchase price of the related transaction.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are estimated based on historical amounts and are recorded upon recognizing the related sales. Shipping and handling costs are recorded as selling expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84D_eus-gaap--AdvertisingCostsPolicyTextBlock_zEXVgaLdFd1h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86A_zTwu2RN5w7Cl">Advertising costs</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Advertising costs are expensed as incurred. Total advertising and promotional costs included in selling and fulfillment expenses for the three and nine months were as following: </p> <table cellpadding="0" cellspacing="0" id="xdx_891_ecustom--ScheduleOfAdvertisingCostsTableTextBlock_zVkJVVoYBIZ3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of significant accounting policies (Details 1)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B1_zNcX19aFnX3a" style="display: none">Schedule of advertising costs</span></td><td> </td> <td colspan="2" id="xdx_495_20220101__20220331_zqeQD0ZHl7uj" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20210101__20210331_zbbHtux7EDph" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49C_20210701__20220331_zeqTvQecrcTh" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20200701__20210331_zJrthrEpIEcc" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--AdvertisingExpense_i_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Advertising and promotion</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">733,241</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">443,163</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,945,222</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,164,119</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zXtsu00xUu63" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_891_ecustom--ScheduleOfAdvertisingCostsTableTextBlock_zVkJVVoYBIZ3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of significant accounting policies (Details 1)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B1_zNcX19aFnX3a" style="display: none">Schedule of advertising costs</span></td><td> </td> <td colspan="2" id="xdx_495_20220101__20220331_zqeQD0ZHl7uj" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20210101__20210331_zbbHtux7EDph" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49C_20210701__20220331_zeqTvQecrcTh" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20200701__20210331_zJrthrEpIEcc" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--AdvertisingExpense_i_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Advertising and promotion</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">733,241</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">443,163</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,945,222</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,164,119</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 733241 443163 1945222 1164119 <p id="xdx_846_ecustom--CostOfRevenuePolicyTextBlock_z5D3kf1TOE91" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_866_zoGH4m20HEub">Cost of revenue</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of revenue mainly consists of costs for purchases of products and related inbound freight and delivery fees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--InventoryPolicyTextBlock_zdOu6fzqW8ic" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86E_zA2mpKjiU8sg">Inventory, net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventory consists of finished goods ready for sale and is stated at the lower of cost or market. The Company values its inventory using the weighted average costing method. The Company’s policy is to include as a part of cost of goods sold any freight incurred to ship the product from its vendors to warehouses. Outbound freight costs related to shipping costs to customers are considered periodic costs and are reflected in selling and fulfillment expenses. The Company regularly reviews inventory and considers forecasts of future demand, market conditions and product obsolescence.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the estimated realizable value of the inventory is less than cost, the Company makes provisions in order to reduce its carrying value to its estimated market value. The Company also reviews inventory for slow moving inventory and obsolescence and records allowance for obsolescence.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_84A_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zseq2ApiwIyi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_869_zf54cqshT0q4">Segment reporting</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows ASC 280, Segment Reporting. The Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results of operations 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 does not distinguish between markets or segments for the purpose of internal reporting. For the nine months ended March 31, 2022, sales through Amazon to Canada were approximately <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--AmazonSalesToCanadaMember_zr3U5e0gUJlj">5.7</span>% of the Company’s total sales. The Company’s majority of long-lived assets are located in California, United States, and majority of the Company’s revenues are derived from within the United States. Therefore, no geographical segments are presented.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> 0.057 <p id="xdx_848_eus-gaap--LesseeLeasesPolicyTextBlock_zHWEzH8uaX2h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_zXthm0Ug3rai">Leases</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On its inception date, April 11, 2018, the Company adopted ASC 842 – Leases (“ASC 842”), which requires lessees to record right-of-use (“ROU”) assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ROU assets represent our right to use an underlying asset for the lease terms and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--ShareBasedCompensationForfeituresPolicyTextBlock_zQOjQHr7g5Nf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86B_zzq65Y2WN3uf">Stock-based Compensation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company applies ASC No. 718, “Compensation-Stock Compensation,” which requires that share-based payment transactions with employees and nonemployees upon adoption of ASU 2018-07, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will recognize forfeitures of such equity-based compensation as they occur.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p id="xdx_84A_eus-gaap--IncomeTaxPolicyTextBlock_zUNyCi9XH8v2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_866_zFq68q243zFe">Income taxes</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the 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 that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company has adopted the provisions of ASC 740 since inception, April 11, 2018, and has analyzed filing positions in each of the federal and state jurisdictions where the Company is required to file income tax returns, as well as open tax years in such jurisdictions. The Company has identified the U.S. federal jurisdiction, and the states of Nevada and California, as its “major” tax jurisdictions. However, the Company has certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company believes that our income tax filing positions and deductions will be sustained upon audit and do not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company’s policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">   </p> <p id="xdx_844_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zQURqD95n7cd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86C_zCtz81KzzPyb">Commitments and contingencies</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the ordinary course of business, the Company is subject to certain contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--EarningsPerSharePolicyTextBlock_ze97V3fCyV0l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_86B_zNnqE9zsUW6g">Earnings per share</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings per share are computed by dividing net income attributable to holders of common stock by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities to issue common stock were exercised.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84E_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_znx3tqaV44a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline"><span id="xdx_864_zGjaKg4afbRk">Recently issued accounting pronouncements</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40).” This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock, as well as amends the guidance for the derivatives scope exception for contracts in an entity’s own equity for purposes of reducing form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related EPS guidance. This standard becomes effective for the Company on July 1, 2022, including interim periods within those fiscal years. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company does not expect the adoption of this standard have a material impact on the consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The update is intended to simplify the current rules regarding the accounting for income taxes and addresses several technical topics including accounting for franchise taxes, allocating income taxes between a loss in continuing operations and in other categories such as discontinued operations, reporting income taxes for legal entities that are not subject to income taxes, and interim accounting for enacted changes in tax laws. The new standard is effective for fiscal years beginning after December 15, 2020; however, early adoption is permitted. Adoption of this standard did not have a material impact on the consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--SubsequentEventsPolicyPolicyTextBlock_zjJFCL9QR66h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_864_zF1yjIZE4Ay7">Subsequent events</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the consolidated financial statements are available to be issued. Material subsequent events that required recognition or additional disclosure in the consolidated financial statements are presented.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_801_ecustom--JointVenturesDisclosureTextBlock_zVjmFUDsfMJe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 3 - <span id="xdx_820_zbxgPvaBrQwd">Joint Ventures</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Box Harmony, LLC</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 13, 2022, the Company entered into a joint venture agreement (the “Joint Venture Agreement”) with Titanium Plus Autoparts, Inc., a California corporation (“TPA”), Tony Chiu (“Chiu”) and Bin Xiao (“Xiao”). Pursuant to the terms of the Joint Venture Agreement, the parties formed a Nevada limited liability company, Box Harmony, LLC (“Box Harmony”), for the principal purpose of providing logistic services primarily for foreign-based manufacturers or distributors who desire to sell their products online in the United States, with such logistic services to include, without limitation, receiving, storing and transporting such products.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Following entry into the Joint Venture Agreement, Box Harmony issued a total of 6,000 certificated units of membership interest, designated as Class A voting units (“Equity Units”), as follows: (i) the Company agreed to contribute $50,000 in cash in exchange for 2,400 Equity Units in Box Harmony and agreed to provide Box Harmony with the use and access to certain warehouse facilities leased by the Company (see below), and (ii) TPA received 1,200 Equity Units in exchange for (a) $1,200 and contributing the TPA IP License referred to below, (b) its existing and future customer contracts, and (c) granting Box Harmony the use of shipping accounts (FedEx and UPS) and all other TPA carrier contracts, and (iii) Xiao received 2,400 Equity Units in exchange for $2,400 and his agreement to manage the day to day operations of Box Harmony.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the terms of the Box Harmony limited liability operating agreement (the “LLC Agreement”), TPA and Xiao each granted to the Company an unconditional and irrevocable right and option to purchase from Xiao and TPA at any time within the first 18 months following January 13, 2022, up to 1,200 Class A voting units, at an exercise price of $550 per Class A voting unit, for a total exercise price of up to $660,000. If such option is fully exercised, the Company would own 3,600 Equity Units or 60% of the total outstanding Equity Units. The LLC Agreement prohibits the issuance of additional Equity Units and certain other actions unless approved in advance by the Company, that a noncontrolling right that would not be substantive to overcome the majority voting interests held by TPA and Xiao.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result, the Company owns <span id="xdx_906_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_dp_c20220331__dei--LegalEntityAxis__custom--BoxHarmonyMember_zYlZQ2kzqH5e">40</span>% of the equity interest in Box Harmony with significant influence but does not own a majority equity interest or otherwise control of Box Harmony. The Company accounts for its ownership interest in Box Harmony following the equity method of accounting, in accordance with ASC 323, Investments —Equity Method and Joint Ventures. Under this method, the carrying cost is initially recorded at cost and then increased or decreased by recording its percentage of gain or loss in its statement of operations and a corresponding charge or credit to the carrying value of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Global Social Media, LLC</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 10, 2022, the Company entered into a joint venture agreement with Bro Angel, LLC, Ji Shin and Bing Luo (the “GSM Joint Venture Agreement”). Pursuant to the terms of the GSM Joint Venture Agreement, the parties formed a Nevada limited liability company, Global Social Media, LLC (“GSM”), for the principal purpose of providing a social media platform, contents and services to assist businesses, including the Company and other businesses, in marketing their products.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following entry into the GSM Joint Venture Agreement, GSM issued 10,000 certificated units of membership interest (the “GSM Equity Units”), of which the Company was issued 6,000 GSM Equity Units and Bro Angel was issued 4,000 GSM Equity Units. Messrs. Shin and Luo are the owners of 100% of the equity of Bro Angel. The LLC Agreement prohibits the issuance of additional Equity Units and certain other actions unless approved in advance by Bro Angel, creating a noncontrolling right that would not be substantive to overcome the majority voting interests held by the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of the date of this report, the members had not completed the capital contributions and no receivables were recorded.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the terms of the Agreements, the Company owns <span id="xdx_907_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_dp_c20220331__dei--LegalEntityAxis__custom--GlobalSocialMediaMember_zaouQTEDN11f">60</span>% of the equity interest in GSM and control of the operations. Based on ASU 2015-02, the Company consolidate GSM due to its majority equity ownership and control over operations. For the three and nine months ended March 31, 2022, the impact of GSM’s activities were immaterial to the Company’s consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 0.40 0.60 <p id="xdx_80D_ecustom--AcquisitionOfAniviaLimitedAndSubsidiariesVariableInterestEntityDisclosureTextBlock_z4EiLFUDNrj4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 4 - <span id="xdx_82B_zSC9WPNDcVre">Acquisition of Anivia Limited and Subsidiaries and Variable Interest Entity</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, the Company acquired 100% of the ordinary shares of Anivia Limited (“Anivia”), a corporation organized under the laws of the British Virgin Islands (“BVI”), in accordance with the terms of a share transfer framework agreement (the “Transfer Agreement”), dated February 15, 2022, by and between the Company, White Cherry Limited, a BVI company (“White Cherry”), White Cherry’s equity holders, Li Zanyu and Xie Jing (together with White Cherry, the “Sellers”), Anivia, Fly Elephant Limited, a Hong Kong company, Dayou Renzai (Shenzhen) Technology Company Limited and Daheshou (Shenzhen) Information Technology Limited. Anivia owns 100% of the equity of Fly Elephant Limited, which in turn owns 100% of the equity of Dayou Renzai (Shenzhen) Technology Co., Ltd., a corporation located in the People’s Republic of China (“PRC”) and which is a wholly foreign-owned enterprise (“WFOE”) of Fly Elephant Limited. The WFOE controls, through contractual arrangements summarized below, the business, revenues and profits of Daheshou (Shenzhen) Information Technology Co., Ltd., a company organized under the Laws of the PRC (“DHS”) and located in Shenzhen, China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The contractual arrangements between the WFOE and DHS are established through a variable interest operating entity structure, which is reflected in (i) an exclusive business cooperation agreement, dated December 15, 2021, between the WFOE and DHS, (ii) an exclusive equity interest pledge agreement, dated December 15, 2021, between the WFOE and DHS in which the equity of DHS was pledged to the WFOE, (iii) an exclusive option agreement, dated December 15, 2021, between the WFOE, DHS and its equity holders, Li Zanyu and Xie Jing (the “Equity Holders), pursuant to which the Equity Holders give the WFOE the irrevocable and exclusive right to purchase the equity interests in DHS, and (iii) a power of attorney, dated December 15, 2021, pursuant to which Li Zanyu and Xie Jing, the holders of 100% of the equity interest of DHS, granted the WFOE all voting and other rights to their equity interest in DHS. According to the exclusive business cooperation agreement, in consideration for the services provided by the WFOE, DHS shall pay a service fee to the WFOE on annual basis (or at any time agreed by the Parties). The service fees for each year (or for any other period agreed to by the Parties) shall consist of a management fee and a fee for services provided, which shall be reasonably determined by the WFOE based on the nature, complexity, time, and other market and operation factors. The WFOE may provide a separate confirmation letter and/or invoice to DHS to indicate the amount of service fees due for each service period; or the amount of services fees may be as set forth in the relevant contracts separately executed by the Parties. DHS is principally engaged in selling a wide range of products and providing logistic services in the PRC.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the terms of the Agreements, the Company does not have direct ownership in DHS but is actively involved in DHS’s operations as the sole manager to direct the activities and significantly impact DHS’s economic performance. As such, based on the determination that the Company is the primary beneficiary of DHS, in accordance with ASC 810-10-25-38A through 25-38J, DHS is considered a variable interest entity (“VIE”) of the Company and the financial statements of DHS have been consolidated from the date such control existed, February 15, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Total fair value of the consideration for the transaction was $<span id="xdx_90A_eus-gaap--PaymentsToAcquireBusinessesGross_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zCwKONUWHzj">10,629,000</span>, which was paid to White Cherry as follows: at closing, the Company (i) paid $<span id="xdx_90E_eus-gaap--NotesIssued1_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zaCQmf07Ucck">3,500,000 </span>in the form of a two-year unsecured 6% subordinated promissory note, payable in equal semi-annual installments commencing August 15, 2022 (the “Purchase Note”), (ii) issued <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zuYTMfZaSG7e">3,083,700 </span>restricted shares (subject to a lock-up period of 180 days and insider trading rules) of the Company’s Class A common stock, and (iii) an additional $<span id="xdx_90E_eus-gaap--BusinessCombinationConsiderationTransferredOther1_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z3nMiiL4YP6l">1,500,000 </span>in cash was to be paid after closing. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">JP Morgan Chase Bank, the Company’s senior secured lender (“JPM”), consented to the transaction. In conjunction with obtaining JPM’s consent, the Company delivered an amendment to the pledge and security agreement with JPM, pursuant to which the Company pledged to JPM 65% of the equity interest of Anivia Limited, Fly Elephant Limited and the WFOE.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, in conjunction with the closing of the transaction, the WFOE entered into an employment agreement with Li Zanyu, dated February 15, 2022 (the “Employment Agreement”), pursuant to which Mr. Li has been appointed to serve as general manager of the WFOE for a term of 10 years (through February 14, 2032), with annual base compensation of up to 500,000 RMB plus bonus as may be determined by the WFOE from time to time, in its sole discretion, based on Mr. Li’s performance. During such employment, Mr. Li may not engage in other employment without the consent of the WFOE.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The acquisition of Anivia was accounted for as a business combination under ASC 805. As the acquirer for accounting purposes, the Company has estimated the fair value of Anivia and its subsidiaries’ assets acquired and conformed the accounting policies of Anivia to its own accounting policies. The Company applied the income approach and cost approach in determining the fair value of the intangible assets, which intangible assets consisted of a covenant not to compete, supplier relationship and software. The fair value of the remaining assets acquired and liabilities assumed were not significantly different from their carrying values at the acquisition date. The Company recognized an approximately $<span id="xdx_900_eus-gaap--Goodwill_iI_pn3n6_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AnivaMember_zsbNqpUBUyP3">6.1</span> million of goodwill in the transaction, which is primarily due to the subsumed assembled workforce intangible assets. Goodwill is not deductible for income tax purposes. The Company expensed with the acquisition, certain legal and accounting costs of $<span id="xdx_908_eus-gaap--OtherGeneralAndAdministrativeExpense_pn3n3_dc_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AnivaMember_ziR8PvPuI9y5">54,702</span>, as general and administration expenses and $<span id="xdx_90F_eus-gaap--PaymentsOfFinancingCosts_pn3n3_dc_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AnivaMember__srt--CounterpartyNameAxis__custom--JPMMember_zKKgNT4sAKLf">50,000</span> paid to JPM as financing fees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The following information summarizes the purchase consideration and allocation of the fair values assigned to the assets at the purchase date, February 15, 2022: </p> <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_zRFeXvGO0Swl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Acquisition of Anivia Limited and Subsidiaries and Variable Interest Entities (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt"><span id="xdx_8BE_z5hwN2dEM6nf" style="display: none">Schedule of allocation of acquisition price</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Fair Value of Purchase Price:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 85%; padding-left: 6pt">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zlwsMbYSNqzj" style="width: 11%; text-align: right">1,500,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">Promissory note issued</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--PromissoryNotesIssued1_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zIl9zelt80Gc" style="text-align: right">3,600,627</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 6pt">Common stock issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zOUfiANuJOS2" style="border-bottom: Black 1pt solid; text-align: right">5,528,373</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total purchase consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--BusinessCombinationConsiderationTransferred1_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zYAGg0WVYQ2" style="border-bottom: Black 2.5pt double; text-align: right">10,629,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Purchase Price Allocation:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 6pt">Covenant not to compete</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zQpyZvGd3yaf" style="text-align: right">3,459,120</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">Supplier relationship</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zGWHICRZRf6d" style="text-align: right">1,179,246</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Software</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_zMmeeDWSOMB1" style="text-align: right">534,591</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">Current assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssets_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zMXkB2vF5F5h" style="text-align: right">1,104,407</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 6pt">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zOwDZ64Kngwj" style="text-align: right">46,548</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">ROU asset</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOtherNoncurrentAssets_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zopj07Ah9Q82" style="text-align: right">175,231</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Goodwill</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--Goodwill_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zNTpyYcNPJjl" style="text-align: right">6,094,144</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 6pt">Deferred tax liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilities1_iNI_di_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zAJ0WC7IWYGe" style="text-align: right">(1,389,113</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 6pt">Current liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilities_iNI_di_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zJ2eV8emImne" style="text-align: right">(394,659</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 6pt">Lease liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zU4debFRPEj4" style="border-bottom: Black 1pt solid; text-align: right">(180,515</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total purchase consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zqxibXNJE9Y3" style="border-bottom: Black 2.5pt double; text-align: right">10,629,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A2_ztkmEZaNx0v7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white">As of the date of this report, the cash portion of the consideration, $1.5 million, had not been paid as the seller’s bank account was still not opened due to the delay caused by the COVID-19 conditions in Hong Kong and China.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="background-color: white"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The results of operations of Anivia for the period from February 16, 2022 through March 31, 2022 were included in the Company's consolidated financial statements as of and for the period ended March 31, 2022. See Note 5 for details.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><i>Pro Forma Financial Information</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The following pro forma information presents a summary of the Company’s combined operating results for the nine months ended March 31, 2022 and 2021, as if the acquisition had occurred on July 1, 2020. The following pro forma financial information is not necessarily indicative of the Company’s operating results as they would have been had the acquisition been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, basic shares outstanding and dilutive equivalents, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the businesses. </p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--BusinessAcquisitionProFormaInformationTextBlock_zuddta8Vnnw3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Acquisition of Anivia Limited and Subsidiaries and Variable Interest Entities (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_z461u3JyyJEc" style="display: none">Schedule of Business Acquisition, Pro Forma Information</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49E_20210701__20220331_zwyxFLAByksi" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_495_20200701__20210331_zBiKNL5CQjVg" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="padding-bottom: 1pt; font-weight: bold; text-align: center">Nine months ended</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessAcquisitionsProFormaRevenue_z4AKC9BptF21" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 70%; text-align: left">Total Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">57,300,642</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">39,348,154</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--BusinessAcquisitionsProFormaIncomeLossFromContinuingOperationsBeforeChangesInAccountingAndExtraordinaryItemsNetOfTax_zwsr9VIdKtB1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income from Operations</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,623,664</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,043,253</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted_z8Xu0t5orPDk" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Basic and diluted income per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.12</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.06</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8AF_zaLmuoqReL44" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 10629000 3500000 3083700 1500000 6100000 54702000 50000000 <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_zRFeXvGO0Swl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Acquisition of Anivia Limited and Subsidiaries and Variable Interest Entities (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt"><span id="xdx_8BE_z5hwN2dEM6nf" style="display: none">Schedule of allocation of acquisition price</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Fair Value of Purchase Price:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 85%; padding-left: 6pt">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zlwsMbYSNqzj" style="width: 11%; text-align: right">1,500,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">Promissory note issued</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--PromissoryNotesIssued1_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zIl9zelt80Gc" style="text-align: right">3,600,627</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 6pt">Common stock issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zOUfiANuJOS2" style="border-bottom: Black 1pt solid; text-align: right">5,528,373</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total purchase consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--BusinessCombinationConsiderationTransferred1_c20220214__20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zYAGg0WVYQ2" style="border-bottom: Black 2.5pt double; text-align: right">10,629,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Purchase Price Allocation:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 6pt">Covenant not to compete</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zQpyZvGd3yaf" style="text-align: right">3,459,120</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">Supplier relationship</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zGWHICRZRf6d" style="text-align: right">1,179,246</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Software</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_zMmeeDWSOMB1" style="text-align: right">534,591</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">Current assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssets_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zMXkB2vF5F5h" style="text-align: right">1,104,407</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 6pt">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zOwDZ64Kngwj" style="text-align: right">46,548</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 6pt">ROU asset</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOtherNoncurrentAssets_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zopj07Ah9Q82" style="text-align: right">175,231</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Goodwill</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--Goodwill_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zNTpyYcNPJjl" style="text-align: right">6,094,144</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 6pt">Deferred tax liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilities1_iNI_di_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zAJ0WC7IWYGe" style="text-align: right">(1,389,113</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 6pt">Current liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilities_iNI_di_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zJ2eV8emImne" style="text-align: right">(394,659</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 6pt">Lease liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zU4debFRPEj4" style="border-bottom: Black 1pt solid; text-align: right">(180,515</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total purchase consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet_iI_c20220215__us-gaap--BusinessAcquisitionAxis__custom--AniviaMember_zqxibXNJE9Y3" style="border-bottom: Black 2.5pt double; text-align: right">10,629,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1500000 3600627 5528373 10629000 3459120 1179246 534591 1104407 46548 175231 6094144 1389113 394659 180515 10629000 <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--BusinessAcquisitionProFormaInformationTextBlock_zuddta8Vnnw3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Acquisition of Anivia Limited and Subsidiaries and Variable Interest Entities (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_z461u3JyyJEc" style="display: none">Schedule of Business Acquisition, Pro Forma Information</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49E_20210701__20220331_zwyxFLAByksi" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_495_20200701__20210331_zBiKNL5CQjVg" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="padding-bottom: 1pt; font-weight: bold; text-align: center">Nine months ended</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessAcquisitionsProFormaRevenue_z4AKC9BptF21" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 70%; text-align: left">Total Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">57,300,642</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">39,348,154</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--BusinessAcquisitionsProFormaIncomeLossFromContinuingOperationsBeforeChangesInAccountingAndExtraordinaryItemsNetOfTax_zwsr9VIdKtB1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income from Operations</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,623,664</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,043,253</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted_z8Xu0t5orPDk" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Basic and diluted income per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.12</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.06</td><td style="text-align: left"> </td></tr> </table> 57300642 39348154 4623664 3043253 0.12 0.06 <p id="xdx_803_eus-gaap--VariableInterestEntityDisclosureTextBlock_zb8PV5pl9Pr4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 5 – <span id="xdx_826_zNc1NSs6sC3e">Variable interest entity</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective February 15, 2022, upon acquisition of Anivia, the Company assumed the contractual arrangements between the WFOE and DHS through a variable interest operating entity structure. See Note 4 for details.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company did not provide financial or other support to the VIE for the periods presented where the Company was not otherwise contractually required to provide such support.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, there was no pledge or collateralization of the VIE assets that would be used to settle obligations of the VIE.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying amounts of the assets, liabilities and the results of operations of the VIE included in the Company’s consolidated balance sheets and statements of operations and comprehensive income after the elimination of intercompany balances and transactions with the VIE are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying amount of the VIE’s assets and liabilities were as follows for the periods indicated: </p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--ScheduleOfVariableInterestEntitiesTextBlock_zr23L1VGNfdk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Variable interest entity (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zCBvGoDCOdx3" style="display: none">Carrying amount of VIE assets and liabilities</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31,<br/> 2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,<br/> 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Cash in bank</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--Cash_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_pp0p0" style="width: 13%; text-align: right">730,227</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--Cash_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zEBIscz1wOW" style="width: 13%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepayments and other receivables</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z6no0Jcwm513" style="text-align: right">1,289,406</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zCSU3aR7Dv24" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Office equipment, net</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--OfficeEquipmentNet_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zNyTGyDJeYPd" style="text-align: right" title="Office Equipment Net">52,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--OfficeEquipmentNet_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zPavspKkdaA5" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Right of use - noncurrent</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zANm3Aq3YPK7" style="text-align: right" title="Right of Use Noncurrent">156,706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zzXmZ6iYbxC4" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Advance from shareholders</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_ecustom--AdvanceFromShareholders_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zo4aETIyrFAc" style="text-align: right" title="Advance from shareholders">97,476</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_ecustom--AdvanceFromShareholders_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zc3Cghgjl28" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Lease liability</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeaseLiability_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zl2yHvKrgI72" style="text-align: right" title="Lease Liability">161,401</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OperatingLeaseLiability_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z1TSlOz3iQtc" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Income tax payable</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--AccruedIncomeTaxes_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_pp0p0" style="text-align: right">119,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--AccruedIncomeTaxes_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zSlBqQU0EE27" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other payables</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--AccountsPayableAndOtherAccruedLiabilities_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zW8kugemmG3b" style="text-align: right">147,010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--AccountsPayableAndOtherAccruedLiabilities_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zy13Yk0uWuXe" style="text-align: right">–</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A9_zN2VWTB5qi4g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operating results of the VIE were as follows for the period from February 15, 2022 to March 31, 2022:</p> <table cellpadding="0" cellspacing="0" id="xdx_89D_ecustom--ScheduleOfOperatingResultsOfTheVieTableTextBlock_zfvx7BDMhVXg" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Variable interest entity (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B9_zTMYQaHiPCbg" style="display: none">Operating results of the VIE</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%">Revenue</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--Revenues_pp0p0_d0_c20220216__20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zjSJwZfpmS3d" style="width: 13%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_iN_pp0p0_di_c20220216__20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_ztZEoLyCXP66" style="text-align: right">650,194</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A2_zDAv8s4hEpx5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the period from February 15, 2022 to March 31, 2022, the VIE contributed approximately $1.3 million of revenue and $0.4 million of net income before elimination.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--ScheduleOfVariableInterestEntitiesTextBlock_zr23L1VGNfdk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Variable interest entity (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zCBvGoDCOdx3" style="display: none">Carrying amount of VIE assets and liabilities</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31,<br/> 2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,<br/> 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Cash in bank</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--Cash_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_pp0p0" style="width: 13%; text-align: right">730,227</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--Cash_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zEBIscz1wOW" style="width: 13%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepayments and other receivables</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z6no0Jcwm513" style="text-align: right">1,289,406</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zCSU3aR7Dv24" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Office equipment, net</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--OfficeEquipmentNet_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zNyTGyDJeYPd" style="text-align: right" title="Office Equipment Net">52,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--OfficeEquipmentNet_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zPavspKkdaA5" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Right of use - noncurrent</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zANm3Aq3YPK7" style="text-align: right" title="Right of Use Noncurrent">156,706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zzXmZ6iYbxC4" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Advance from shareholders</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_ecustom--AdvanceFromShareholders_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zo4aETIyrFAc" style="text-align: right" title="Advance from shareholders">97,476</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_ecustom--AdvanceFromShareholders_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zc3Cghgjl28" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Lease liability</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeaseLiability_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zl2yHvKrgI72" style="text-align: right" title="Lease Liability">161,401</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OperatingLeaseLiability_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z1TSlOz3iQtc" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Income tax payable</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--AccruedIncomeTaxes_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_pp0p0" style="text-align: right">119,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--AccruedIncomeTaxes_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zSlBqQU0EE27" style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other payables</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--AccountsPayableAndOtherAccruedLiabilities_iI_pp0p0_c20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zW8kugemmG3b" style="text-align: right">147,010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--AccountsPayableAndOtherAccruedLiabilities_iI_pp0p0_d0_c20210630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zy13Yk0uWuXe" style="text-align: right">–</td><td style="text-align: left"> </td></tr> </table> 730227 0 1289406 0 52142 0 156706 0 97476 0 161401 0 119291 0 147010 0 <table cellpadding="0" cellspacing="0" id="xdx_89D_ecustom--ScheduleOfOperatingResultsOfTheVieTableTextBlock_zfvx7BDMhVXg" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Variable interest entity (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B9_zTMYQaHiPCbg" style="display: none">Operating results of the VIE</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%">Revenue</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--Revenues_pp0p0_d0_c20220216__20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zjSJwZfpmS3d" style="width: 13%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_iN_pp0p0_di_c20220216__20220331__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_ztZEoLyCXP66" style="text-align: right">650,194</td><td style="text-align: left"> </td></tr> </table> 0 -650194 <p id="xdx_80F_eus-gaap--LoansNotesTradeAndOtherReceivablesDisclosureTextBlock_zrT4qWglEhM2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 6 - <span id="xdx_822_z9VBgF8zlSui">Accounts receivable, net</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable, net for the Company consisted of the following as of the dates indicated below:   </p> <table cellpadding="0" cellspacing="0" id="xdx_88F_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_zuSlw5pa94ee" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Accounts receivable, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zlkweSgkS4X2" style="display: none">Schedule of accounts receivable</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20220331_zJ1bePL5jdta" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20210630_z0znMKm1HbMk" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>June 30,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--AccountsReceivableGrossCurrent_iI_pp0p0_maARNCzhUD_z61Ledce7Dv" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Accounts receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">19,153,554</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">7,896,347</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iNI_pp0p0_di0_msARNCzhUD_zYlahwGF4F35" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: allowance for credit losses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(70,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccountsReceivableNetCurrent_iTI_pp0p0_mtARNCzhUD_zEcrnB1y3jh9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total accounts receivable, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">19,083,554</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,896,347</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There was a $<span id="xdx_907_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iI_pp0p0_c20220331_zJ2zLXmLR5Yi" title="Accounts Receivable, Credit Loss Expense (Reversal)">70,000</span> allowance for credit loss for the three and nine months ended March 31, 2022 and $<span id="xdx_909_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iI_pp0p0_c20210630_zJwHEg1jzBE6" title="Accounts Receivable, Credit Loss Expense (Reversal)">0</span> recorded for the year ended June 30, 2021, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <table cellpadding="0" cellspacing="0" id="xdx_88F_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_zuSlw5pa94ee" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Accounts receivable, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zlkweSgkS4X2" style="display: none">Schedule of accounts receivable</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20220331_zJ1bePL5jdta" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20210630_z0znMKm1HbMk" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>June 30,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--AccountsReceivableGrossCurrent_iI_pp0p0_maARNCzhUD_z61Ledce7Dv" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Accounts receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">19,153,554</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">7,896,347</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iNI_pp0p0_di0_msARNCzhUD_zYlahwGF4F35" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: allowance for credit losses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(70,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccountsReceivableNetCurrent_iTI_pp0p0_mtARNCzhUD_zEcrnB1y3jh9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total accounts receivable, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">19,083,554</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,896,347</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 19153554 7896347 70000 -0 19083554 7896347 70000 0 <p id="xdx_808_eus-gaap--InventoryDisclosureTextBlock_zqFGmPQbwhMa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 7 – <span id="xdx_825_zcOpiGSZPRW4">Inventories, net</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, inventories consisted of finished goods ready for sale, net of allowance for obsolescence, amounted to $<span id="xdx_90D_eus-gaap--InventoryNet_c20220331_pp0p0" title="Inventory, net">22,410,936</span> and $<span id="xdx_90E_eus-gaap--InventoryNet_c20210630_pp0p0" title="Inventory, net">13,065,741</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, allowance for obsolescence was $<span id="xdx_902_eus-gaap--InventoryLIFOReserve_c20220331_pp0p0" title="Inventory, LIFO Reserve">188,233</span> and $<span id="xdx_903_eus-gaap--InventoryLIFOReserve_c20210630_pp0p0" title="Inventory, LIFO Reserve">95,574</span>, respectively. There was $<span id="xdx_905_eus-gaap--InventoryWriteDown_pp0p0_c20220101__20220331_zFVSLsNHy1Md" title="Inventory obsolescence">36,701</span> and $<span id="xdx_907_eus-gaap--InventoryWriteDown_pp0p0_c20210701__20220331_zGTMmwoFbdG7" title="Inventory, LIFO Reserve, Period Charge">92,659</span> allowance for obsolescence for the three and nine months ended March 31, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 22410936 13065741 188233 95574 36701 92659 <p id="xdx_803_ecustom--DeferredCostsPrepaidAndOtherAssetsDisclosureTextBlock_z7xzh0DOC9dl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 8 – <span id="xdx_82B_zWjgEcrgeZH5">Prepayments and other current assets</span> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of March 31, 2022 and June 30, 2021, prepayments and other current assets consisted of the following:  </p> <table cellpadding="0" cellspacing="0" id="xdx_88D_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zCoK04CTSYWf" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Prepayments and other current assets (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BB_zxhHIV2pJRoa" style="display: none">Schedule of prepayments and other current assets</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>June 30,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Advance to suppliers</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20220331__us-gaap--BalanceSheetLocationAxis__custom--AdvanceToSuppliersMember_pp0p0" style="width: 13%; text-align: right">6,571,914</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20210630__us-gaap--BalanceSheetLocationAxis__custom--AdvanceToSuppliersMember_pp0p0" style="width: 13%; text-align: right">3,969,625</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Prepaid expenses and other receivables</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20220331__us-gaap--BalanceSheetLocationAxis__custom--PrepaidAndOtherMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right">1,241,858</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20210630__us-gaap--BalanceSheetLocationAxis__custom--PrepaidAndOtherMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right">723,375</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20220331_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right">7,813,772</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20210630_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right">4,693,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other receivables consisted of delivery fees of $<span id="xdx_90E_ecustom--DeliveryFeesReceivable_c20220331_pp0p0" title="Delivery fees receivable">156,590</span> and $<span id="xdx_90F_ecustom--DeliveryFeesReceivable_c20210630_pp0p0" title="Delivery fees receivable">178,581</span> and receivables from two unrelated parties for their use of the Company’s courier accounts at March 31, 2022 and June 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88D_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zCoK04CTSYWf" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Prepayments and other current assets (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BB_zxhHIV2pJRoa" style="display: none">Schedule of prepayments and other current assets</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>June 30,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Advance to suppliers</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20220331__us-gaap--BalanceSheetLocationAxis__custom--AdvanceToSuppliersMember_pp0p0" style="width: 13%; text-align: right">6,571,914</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20210630__us-gaap--BalanceSheetLocationAxis__custom--AdvanceToSuppliersMember_pp0p0" style="width: 13%; text-align: right">3,969,625</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Prepaid expenses and other receivables</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20220331__us-gaap--BalanceSheetLocationAxis__custom--PrepaidAndOtherMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right">1,241,858</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20210630__us-gaap--BalanceSheetLocationAxis__custom--PrepaidAndOtherMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right">723,375</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20220331_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right">7,813,772</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_c20210630_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right">4,693,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 6571914 3969625 1241858 723375 7813772 4693000 156590 178581 <p id="xdx_80B_ecustom--NoncurerntPrepaymentTextBlock_zU5HudJmWnK7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 9 – <span id="xdx_82F_zQIRMgCISr87">Non-current prepayments</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Non-current prepayments included $<span id="xdx_90A_ecustom--NoncurrentPrepayments_c20220331__us-gaap--TransactionTypeAxis__custom--ProductSourcingMember_pp0p0" title="Non-current prepayments">955,416</span> for product sourcing, marketing research and promotion, and other management advisory and consulting services to companies owned by an employee and minority shareholder and by relatives of a minority shareholder of the Company. The terms of these services are from two years to five years. In addition, there was a $<span id="xdx_90C_ecustom--NoncurrentPrepayments_c20220331__us-gaap--TransactionTypeAxis__custom--CarPrepaymentMember_pp0p0" title="Non-current prepayments">78,125</span> down payment on a four-year car lease. As of March 31, 2022 and June 30, 2021, total non-current prepayments were $<span id="xdx_902_ecustom--NoncurrentPrepayments_c20220331_pp0p0" title="Non-current prepayments">1,033,541</span> and $<span id="xdx_90D_ecustom--NoncurrentPrepayments_c20210630_pp0p0" title="Non-current prepayments">1,357,292</span>, respectively. For the three and nine months ended March 31, 2022, the Company recorded amortization expenses of $<span id="xdx_902_eus-gaap--AdjustmentForAmortization_pp0p0_c20220101__20220331_zHvxo6fNjIhh" title="Amortization expenses">107,917</span> and $<span id="xdx_90D_eus-gaap--AdjustmentForAmortization_pp0p0_c20210701__20220331_zLKpXM4sFGw6" title="Amortization expenses">323,751</span>, respectively. For the three and nine months ended March 31, 2021, the Company recorded amortization expenses of $<span id="xdx_907_eus-gaap--AdjustmentForAmortization_pp0p0_c20210101__20210331_zHN3vjcemXTi" title="Amortization expenses"><span id="xdx_908_eus-gaap--AdjustmentForAmortization_pp0p0_c20200701__20210331_zeX37JUTsXPl" title="Amortization expenses">0</span></span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 955416 78125 1033541 1357292 107917 323751 0 0 <p id="xdx_809_eus-gaap--IntangibleAssetsDisclosureTextBlock_zOABTwUL1921" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 10 – <span id="xdx_826_zvYDR4bIafmh">Intangible assets, net</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022, intangible assets, net, consisted of the following:</p> <table cellpadding="0" cellspacing="0" id="xdx_88C_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zjWKaV45eDn8" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Intangible assets, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BA_zkcjZz81d9d5" style="display: none">Schedule of intangible assets</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: left">Covenant Not to Compete</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zZG6uCpVfuoc" style="width: 13%; text-align: right">3,459,120</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Supplier relationship</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zIfIqMpbD5s1" style="text-align: right">1,179,245</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Software</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_zWbz1fCUbdR1" style="text-align: right">534,591</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_di_c20220331_zP0X9wLTjk58" style="border-bottom: Black 1pt solid; text-align: right">(81,171</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt; padding-left: 20pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20220331_zeHXcrKyxLbh" style="border-bottom: Black 2.5pt double; text-align: right">5,091,785</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The intangible assets were acquired on February 15, 2022 through acquisition of Anivia. The weighted average remaining life for finite-lived intangible assets at March 31, 2022 was approximately <span id="xdx_907_ecustom--FiniteLivedIntangibleAssetRemainingUsefulLife_dtY_c20210701__20220331_zGCDXaSkNbcl">8.57</span> years, and the amortization expense for the three and nine months ended March 31, 2022 was $<span id="xdx_901_eus-gaap--AmortizationOfIntangibleAssets_c20220101__20220331_zatnmHwFe8Zf"><span id="xdx_90E_eus-gaap--AmortizationOfIntangibleAssets_c20210701__20220331_zK0DraNGyrY3">81,171</span></span>. At March 31, 2022, finite-lived intangible assets are expected to be amortized over their estimated useful lives, which ranges from a period of five to 10 years, and the estimated remaining amortization expense for each of the five succeeding years and periods thereafter is as follows:</p> <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zRV6cuSCRqac" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Intangible assets (Details - Future Amortization)"> <tr> <td style="width: 43%"><span id="xdx_8B5_zu1GBUloNCA8"><b style="display: none">Schedule of future amortization</b></span></td> <td style="width: 21%"> </td> <td style="width: 21%"> </td> <td style="width: 1%"> </td> <td style="width: 13%"> </td> <td style="width: 1%"> </td></tr> <tr> <td colspan="3" style="vertical-align: bottom"> </td> <td colspan="3" style="background-color: white"> </td></tr> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt"><b>Year Ending June 30,</b></span></td> <td colspan="3" style="font-size: 10pt; text-align: center"><span style="font-size: 10pt"><b>Amount</b></span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2022</span></td> <td style="border-top: black 1pt solid; font-size: 10pt"><span style="font-size: 10pt">$</span></td> <td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_c20220331_zP8ATB9CS2F5" style="border-top: black 1pt solid; font-size: 10pt; text-align: right"><span style="font-size: 10pt">162,343 </span></td> <td style="border-top: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2023</span></td> <td colspan="2" id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_c20220331_zq7R7nhVwWni" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2024</span></td> <td colspan="2" id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_c20220331_zD2MdTdENIPh" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2025</span></td> <td colspan="2" id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_c20220331_z87wzUENZTqa" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2026</span></td> <td colspan="2" id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_c20220331_zkXjBcriIdK9" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">Thereafter</span></td> <td colspan="2" id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_c20220331_zb90xep2FnVl" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">2,331,958 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3"> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double; font-size: 10pt"><span style="font-size: 10pt">$</span></td> <td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331_zX8X9LEcofXc" style="border-top: black 1pt solid; border-bottom: black 2.25pt double; font-size: 10pt; text-align: right"><span style="font-size: 10pt">5,091,785 </span></td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">  </p> <table cellpadding="0" cellspacing="0" id="xdx_88C_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zjWKaV45eDn8" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Intangible assets, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BA_zkcjZz81d9d5" style="display: none">Schedule of intangible assets</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: left">Covenant Not to Compete</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zZG6uCpVfuoc" style="width: 13%; text-align: right">3,459,120</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Supplier relationship</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SupplierRelationshipMember_zIfIqMpbD5s1" style="text-align: right">1,179,245</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Software</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareMember_zWbz1fCUbdR1" style="text-align: right">534,591</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_di_c20220331_zP0X9wLTjk58" style="border-bottom: Black 1pt solid; text-align: right">(81,171</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt; padding-left: 20pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20220331_zeHXcrKyxLbh" style="border-bottom: Black 2.5pt double; text-align: right">5,091,785</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 3459120 1179245 534591 81171 5091785 P8Y6M25D 81171 81171 <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zRV6cuSCRqac" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Intangible assets (Details - Future Amortization)"> <tr> <td style="width: 43%"><span id="xdx_8B5_zu1GBUloNCA8"><b style="display: none">Schedule of future amortization</b></span></td> <td style="width: 21%"> </td> <td style="width: 21%"> </td> <td style="width: 1%"> </td> <td style="width: 13%"> </td> <td style="width: 1%"> </td></tr> <tr> <td colspan="3" style="vertical-align: bottom"> </td> <td colspan="3" style="background-color: white"> </td></tr> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt"><b>Year Ending June 30,</b></span></td> <td colspan="3" style="font-size: 10pt; text-align: center"><span style="font-size: 10pt"><b>Amount</b></span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2022</span></td> <td style="border-top: black 1pt solid; font-size: 10pt"><span style="font-size: 10pt">$</span></td> <td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_c20220331_zP8ATB9CS2F5" style="border-top: black 1pt solid; font-size: 10pt; text-align: right"><span style="font-size: 10pt">162,343 </span></td> <td style="border-top: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2023</span></td> <td colspan="2" id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_c20220331_zq7R7nhVwWni" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2024</span></td> <td colspan="2" id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_c20220331_zD2MdTdENIPh" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2025</span></td> <td colspan="2" id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_c20220331_z87wzUENZTqa" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">2026</span></td> <td colspan="2" id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_c20220331_zkXjBcriIdK9" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">649,371 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="3" style="font-size: 10pt"><span style="font-size: 10pt">Thereafter</span></td> <td colspan="2" id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_c20220331_zb90xep2FnVl" style="font-size: 10pt; text-align: right"><span style="font-size: 10pt">2,331,958 </span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td colspan="3"> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double; font-size: 10pt"><span style="font-size: 10pt">$</span></td> <td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20220331_zX8X9LEcofXc" style="border-top: black 1pt solid; border-bottom: black 2.25pt double; font-size: 10pt; text-align: right"><span style="font-size: 10pt">5,091,785 </span></td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"> </td></tr> </table> 162343 649371 649371 649371 649371 2331958 5091785 <p id="xdx_809_eus-gaap--DebtDisclosureTextBlock_zJ6KgUITsrf3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 11 – <span id="xdx_82F_z5I5Z7PC5JTc">Loans payable</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Short-term loans</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline">Revolving credit facility</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 3, 2019, the Company entered into an agreement with WFC Fund LLC (“WFC") for a revolving loan of up to $2,000,000. The revolving loan bore interest equal to the prime rate plus 4.25% per annum on the outstanding amount. On May 26, 2020, the Loan and Security Agreement was amended and restated as a Receivable Purchase Agreement (the “Original RPA”). On November 16, 2020, the Original RPA was further amended and restated (the “Restated RPA”) to increase the credit limit of the revolving credit facility from $2,000,000 to $<span id="xdx_901_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20201116__us-gaap--CreditFacilityAxis__custom--WFCMember_zA7UfRQibKth">3,000,000</span>. The Restated RPA bore a discount rate of 3.055555%, subject to a rebate of 0.0277% per day. This revolving credit facility was secured by all of the Company’s assets and guaranteed by Chenlong Tan, the CEO and one of the Company’s major shareholders and founders. Pursuant to the terms of the agreement, all purchases of accounts receivable were without recourse to the Company, and WFC assumed the risk of nonpayment of the accounts receivable due to a customer’s financial inability to pay the accounts receivable or the customer’s insolvency but not the risk of non-payment of the accounts receivable for any other reason. The Company was obligated to collect the accounts receivables and to repurchase or pay back the amount drawn down if the accounts receivable were not collected.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended September 30, 2021, the Company terminated the Restated RPA and paid off the balance due to WFC.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, the outstanding balance due under the RPA was $<span id="xdx_902_eus-gaap--LineOfCredit_iI_c20220331__us-gaap--CreditFacilityAxis__custom--WFCMember_zS6VHH5uRMl1">0</span> and $<span id="xdx_900_eus-gaap--LineOfCredit_iI_c20210630__us-gaap--CreditFacilityAxis__custom--WFCMember_zy84RzeQw9o6">162,769</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Long-term loan</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">SBA loan payable</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 18, 2020, the Company entered into an agreement with the U.S. Small Business Administration (“SBA”) for a loan of $500,000 under Section 7(b) of the Small Business Act pursuant to which we issued a promissory note (the “SBA Note”) to the SBA. The SBA Note bears interest at the rate of 3.75% per annum and matures 30 years from the date of the SBA Note. Monthly installment payments, including principal and interest, will begin twelve months from the date of the SBA Note. As of March 31, 2022 and June 30, 2021, the outstanding balance of the SBA Note was $<span id="xdx_904_eus-gaap--NotesPayable_c20220331__us-gaap--LongtermDebtTypeAxis__custom--SbaLoanMember_pp0p0" title="Loan payable">463,445</span> and $<span id="xdx_905_eus-gaap--NotesPayable_c20210630__us-gaap--LongtermDebtTypeAxis__custom--SbaLoanMember_pp0p0" title="Loan payable">487,815</span>, which included a current portion of $<span id="xdx_907_eus-gaap--LoansPayableCurrent_c20220331_pp0p0" title="Loan payable - current">29,244</span> and a non-current portion of $<span id="xdx_906_eus-gaap--LongTermDebt_c20220331__us-gaap--LongtermDebtTypeAxis__custom--SbaLoanMember_pp0p0" title="Loan payable - noncurrent">434,201</span> and $<span id="xdx_907_eus-gaap--LongTermDebt_c20210630__us-gaap--LongtermDebtTypeAxis__custom--SbaLoanMember_pp0p0" title="Loan payable - noncurrent">458,571</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Asset-based revolving loan</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 12, 2021, the Company entered to a Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, issuing bank and swingline lender, for an asset-based revolving loan (“ABL”) of up to $<span id="xdx_901_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn3n3_dm_c20211112__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_znVpvqvXp4pi" title="Proceeds from loan">25</span> million with key terms listed as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 10%"> </td> <td style="width: 2%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="width: 88%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrowing base equal to the sum of</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 14%"> </td> <td style="width: 2%"><span style="font-family: Wingdings; font-size: 10pt">Ø</span></td> <td style="width: 84%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Up to 90% of eligible credit card receivables</span></td></tr> <tr style="vertical-align: top"> <td style="width: 14%"> </td> <td style="width: 2%"><span style="font-family: Wingdings; font-size: 10pt">Ø</span></td> <td style="width: 84%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Up to 85% of eligible trade accounts receivable</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Wingdings; font-size: 10pt">Ø</span></td> <td>Up to the lesser of (i) 65% of cost of eligible inventory or (ii) 85% of net orderly liquidation value of eligible inventory</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td colspan="3"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest rates of between LIBOR plus 2% and LIBOR plus 2.25% depending on utilization</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td colspan="3"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Undrawn fee of between 0.25% and 0.375% depending on utilization</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td colspan="3"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maturity Date of <span id="xdx_900_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20211111__20211112__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_ztrHuJpBjMv1" title="Maturity date">November 12, 2024</span></span></td></tr> <tr> <td style="width: 10%"> </td> <td style="width: 2%"> </td> <td style="width: 2%"> </td> <td style="width: 2%"> </td> <td style="width: 84%"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the ABL includes an accordion feature that allows the Company to borrow up to an additional $25 million. To secure complete payment and performance of the secured obligations, the Company granted a security interest in all of its right, title and interest in, to and under all of the Company’s assets as collateral to the ABL. Upon closing of the ABL, the Company paid $<span id="xdx_90C_eus-gaap--PaymentsOfFinancingCosts_dd_c20211111__20211112__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_zvXup0wq7fsf">796,035 </span>financing fees including 2% of $25.0 million or $500,000 paid to its financial advisor. The financing fees are recorded as debt discount and to be amortized over three years as financing expenses, the term of the ABL. For the three months ended March 31, 2022, the Company recorded in interest expense – $<span id="xdx_90F_eus-gaap--AmortizationOfDebtDiscountPremium_dd_c20220101__20220331__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_zUkLq1hDaw3h">68,813 </span> of amortization of debt discount and $<span id="xdx_907_eus-gaap--InterestExpenseDebt_dd_c20220101__20220331__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_z2X8d1Lm0T87">50,419 </span>of interest expense and credit utilization fees. For the nine months ended March 31, 2022, the Company recorded in interest expense – $<span id="xdx_904_eus-gaap--AmortizationOfDebtDiscountPremium_dd_c20210701__20220331__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_zmYx706Frwg5">113,016 of </span> amortization of debt discount and $<span id="xdx_904_eus-gaap--InterestExpenseDebt_dd_c20210701__20220331__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_zrVw4u0F7R49">81,328 </span>of interest expense and credit utilization fees. As of March 31, 2022, the outstanding amount of the long-term revolving loan payable, net of debt discount, was $<span id="xdx_901_eus-gaap--LineOfCredit_iI_dd_c20220331__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_zvMIHqIGLTyb"><span style="-sec-ix-hidden: xdx2ixbrl1129">11,166,577, including </span></span> interest payable of $<span id="xdx_907_eus-gaap--InterestPayableCurrent_iI_dd_c20220331__us-gaap--CreditFacilityAxis__custom--AssetBasedRevolvingLoanMember_z0zxs82KRVuh">81,328</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Promissory note payable</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 15, 2022, as part of the consideration for acquisition of Anivia Limited, the Company issued a two-year unsecured 6% subordinated promissory note, payable in equal semi-annual installments commencing August 15, 2022 (the “Purchase Note”). The principal amount of the Purchase Note was $<span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_dm_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zdOg50eZuVVb" title="Face amount">3.5</span> million with a fair value of $<span id="xdx_905_eus-gaap--DebtInstrumentFairValue_iI_pn3n3_dm_c20220215__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zrVDEXI8kDcc" title="Fair value">3.6</span> million on February 15, 2022. For the quarter ended March 31, 2022, the Company recorded accrued interest of $<span id="xdx_903_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_dm_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zYYA2rAGIfe6">26,250</span>. As of March 31, 2022, the outstanding principal balance of the Purchase Note was $<span id="xdx_90E_eus-gaap--LongTermNotesPayable_iI_dm_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_z3Tnzkn5J4Dc">3,626,879</span>, including $<span id="xdx_907_eus-gaap--InterestPayableCurrent_iI_dm_c20220331__us-gaap--LongtermDebtTypeAxis__custom--AniviaPurchaseNoteMember_zgGDhAn7DO9e">26,250</span> of accrued interest.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 3000000 0 162769 463445 487815 29244 434201 458571 25000000 2024-11-12 796035 68813 50419 113016 81328 81328 3500000 3600000 26250 3626879 26250 <p id="xdx_80A_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zQfZU30SEkKh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 12 – <span id="xdx_825_zHbh3agIRwe9">Related party transactions</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 1, 2018, the Company acquired certain assets and assumed liabilities from BizRight, LLC, an entity owned and managed by the founders and officers of the Company and the purchase price was recorded as payable due to related parties. During the nine months ended March 31, 2021, the Company recorded proceeds of $<span id="xdx_90C_eus-gaap--ProceedsFromRelatedPartyDebt_c20200701__20200930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BizRightMember_pp0p0" title="Proceeds from Related Party Debt">532,222</span> and payments of $<span id="xdx_90D_eus-gaap--RepaymentsOfRelatedPartyDebt_c20200701__20210331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BizRightMember_pp0p0" title="Repayments of Related Party Debt">150,498</span>, respectively. The Company had paid off the amount due to related party during the quarter ended June 30, 2021. The amount due to related parties was $<span id="xdx_90E_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BizRightMember_pp0p0" title="Due to Related Parties"><span id="xdx_90D_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BizRightMember_pp0p0" title="Due to Related Parties">0</span></span> as of March 31, 2022 and June 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Starting March 1, 2022, the Company subleases 50,000 square feet of its warehouse space to Box Harmony, LLC, which is a 40% owned joint venture of the Company as disclosed on Note 1 and Note 2 above. For the quarter ended March 31, 2022, the Company recorded sublease fee of $<span id="xdx_90A_eus-gaap--OtherNonoperatingIncome_c20220101__20220331__us-gaap--TransactionTypeAxis__custom--SubLeaseFeeMember__dei--LegalEntityAxis__custom--BoxHarmonyMember_z6Ya6CaOjk77">82,500 </span>as other non-operating income. As of March 31, 2022, other receivables due from Box Harmony was <span id="xdx_907_eus-gaap--OtherReceivables_iI_c20220331__us-gaap--TransactionTypeAxis__custom--SubLeaseFeeMember__dei--LegalEntityAxis__custom--BoxHarmonyMember_zv52u54aDssb">20,746</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 15, 2022, the Company assumed $97,476 of advance from shareholders of DHS through acquisition of Anivia. This amount was for capital injection pending capital inspection by the local government in accordance with the PRC rules. As of March 31, 2022, the balance of advance from shareholders was $<span id="xdx_907_ecustom--AdvanceFromShareholders_iI_c20220331_zFCqbjULzhV4">97,476</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 532222 150498 0 0 82500 20746 97476 <p id="xdx_80C_eus-gaap--IncomeTaxDisclosureTextBlock_zStxKMWp7w7h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 13 – <span id="xdx_821_zCzC5A28MZ33">Income taxes</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 22, 2017, the President of the United States signed into law H.R.1, formerly known as the Tax Cuts and Jobs Act (the “Tax Legislation”). The Tax Legislation significantly revised the U.S. tax code by (i) lowering the U.S. federal statutory income tax rate from 35% to 21%, (ii) implementing a territorial tax system, (iii) imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries, (iv) requiring a current inclusion of global intangible low taxed income of certain earnings of controlled foreign corporations in U.S. federal taxable income, (v) creating the base erosion anti-abuse tax regime, (vi) implementing bonus depreciation that will allow for full expensing of qualified property, and (vii) limiting deductibility of interest and executive compensation expense, among other changes. The Company has computed its tax expenses using the new statutory rate effective on January 1, 2018 of 21%.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, upon completion of the acquisition of Anivia, the Company is subject to corporate income taxes in People’s Republic of China (“PRC”). Anivia and its subsidiaries were subject to BVI or Hong Kong income taxes but did not have any operations for the period ended March 31, 2022. DHS, the operating VIE of Anivia, is considered a Controlled Foreign Corporation (CFC) defined under IRC Sec. 957(a) since the Company indirectly owns more than 50% voting control of DHS as a result of the Transfer Agreement. Therefore, DHS is subject to the GILTI Tax. DHS is subject to 25% tax rate in PRC. The Company made an election to apply the GILTI high-tax exclusion for DHS under the Final Regulations (T.D. 9902). As the result of the election, no GILTI tax was recorded as of March 31, 2022. In addition, as a result of the acquisition the Company booked a $6,094,144 of goodwill. Since the acquisition was a stock acquisition, the Goodwill is not deductible for tax purposes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other provisions of the new legislation include, but are not limited to, limiting deductibility of interest and executive compensation expense. These additional items have been considered in the income tax provision for the nine months ended March 31, 2022 and 2021. For the three and nine months ended March 31, 2022, the Company recorded deferred tax liabilities of $<span id="xdx_905_eus-gaap--DeferredIncomeTaxLiabilities_iI_c20220331_z95h5ulGsov">1,389,113</span> resulting from intangible assets acquired, and deferred tax assets of $<span id="xdx_90F_ecustom--DeferredIncomeTaxAssetsNet1_iI_c20220331_zxewunoRg9Pj">552,784</span> resulting from other temporary differences, including stock compensation expense, depreciation expenses, lease expenses, etc. For the three and nine months ended March 31, 2021, the Company recorded deferred tax assets of $<span id="xdx_90E_ecustom--DeferredIncomeTaxAssetsNet1_iI_c20210331_ztPnliKtR0ig">52,947</span>, which was resulted from allowance for credit loss of $189,206.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The income tax provision for the three and nine months ended March 31, 2022 and 2021 consisted of the following:  </p> <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zo0cHj2VOzib" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income taxes (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"><span id="xdx_8B3_zLGugEyd6oyj" style="display: none">Schedule of provision for income tax expense</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_499_20220101__20220331_z98tY3uTXJyf" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_492_20210101__20210331_zpnohCrTvj49" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49F_20210701__20220331_zFPtFTNvM99k" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_495_20200701__20210331_zxGm6kb9oNxl" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Current:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CurrentFederalTaxExpenseBenefit_maCITEBzN1O_zBsrp2KfcV2l" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; padding-left: 10pt">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">402,373</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">198,079</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">859,341</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">555,430</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCITEBzN1O_zynReO0X4VK6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">67,642</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,681</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">276,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">258,204</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--PRCTaxExpenseBenefit_d0_maCITEBzN1O_zrkSasAKFcE5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">PRC</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">122,623</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">122,623</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CurrentIncomeTaxExpenseBenefit_iT_pp0p0_mtCITEBzN1O_maITEBzJYV_zblnfhifRHv9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total current income tax provision</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">592,638</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">290,760</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,258,328</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">813,634</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefitAbstract_iB" style="vertical-align: bottom; background-color: White"> <td>Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_iN_di0_maDITEBzdvR_z3J2uc24dHc4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(432,290</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,221</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(432,290</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,221</td><td style="text-align: left">) </td></tr> <tr id="xdx_405_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_iN_di0_maDITEBzdvR_zkmt4Uube63f" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(120,493</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,726</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(120,493</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,726</td><td style="text-align: left">) </td></tr> <tr id="xdx_40D_ecustom--DeferredPRCTaxExpenseBenefit_iN_di0_maDITEBzdvR_zjF7Qxn7FUB2" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">PRC</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left">  </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredIncomeTaxExpenseBenefit_iNT_pp0p0_di0_mtDITEBzdvR_maITEBzJYV_z2BEYK0dFYgk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total deferred tax</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(552,783</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(52,947</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(552,783</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(52,947</td><td style="padding-bottom: 1pt; text-align: left">) </td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxExpenseBenefit_iT_pp0p0_zUTZVEefyhUg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total provision for income taxes</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">39,855</td><td style="padding-bottom: 2.5pt; text-align: left">  </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">237,813</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">705,545</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">760,687</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AB_zOsuqjYmYuE8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is subject to PRC and U.S. federal income tax as well as state income tax in certain jurisdictions. The tax years 2018 to 2020 remain open to examination by the major taxing jurisdictions to which the Company is subject. The following is a reconciliation of income tax expenses at the effective rate to income tax at the calculated statutory rates:   </p> <table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zyl1cL0joTag" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income taxes (Details - Reconcilation of effective income tax rate)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"><span id="xdx_8B4_zl1E8OIwrDbk" style="display: none">Schedule of reconciliation of effective income tax rate</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20220101__20220331_zeDf7yqduMUh" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_499_20210101__20210331_zFHC7NLW7tUb" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20210701__20220331_z3SVJFFHqggd" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20200701__20210331_zkLnZ75kxzl4" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; width: 40%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2022</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2021</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2022</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2021</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">US calculated statutory tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_dp_zTw6FZw1jmL7" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_dp_zZp0Oie7LG4g" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">State (net of federal benefit)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.45%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8.84%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.71%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8.84%</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCreditsForeign_iN_dpi0_zXPP2a8buWE2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Foreign tax rate difference</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1.59%</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.54%</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -20pt; padding-left: 20pt; text-align: left">Net effect of state income tax deduction and other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_dp_zne8rttuf4O8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Permanent and temporary differences</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(21.59%</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">737.57%</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6.40%</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10.38%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_z4mlpfzOJ8Vi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective tax rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">3.27%</td><td style="padding-bottom: 2.5pt; text-align: left">  </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">767.41%</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">19.77%</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">40.22%</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_z19qOk00MIIc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, the income taxes payable were $<span id="xdx_906_eus-gaap--AccruedIncomeTaxes_c20220331_pp0p0" title="Income taxes payable">864,109</span> and $<span id="xdx_901_eus-gaap--AccruedIncomeTaxes_c20210630_pp0p0" title="Income taxes payable">790,823</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p> 1389113 552784 52947 <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zo0cHj2VOzib" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income taxes (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"><span id="xdx_8B3_zLGugEyd6oyj" style="display: none">Schedule of provision for income tax expense</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_499_20220101__20220331_z98tY3uTXJyf" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_492_20210101__20210331_zpnohCrTvj49" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49F_20210701__20220331_zFPtFTNvM99k" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_495_20200701__20210331_zxGm6kb9oNxl" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Current:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CurrentFederalTaxExpenseBenefit_maCITEBzN1O_zBsrp2KfcV2l" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; padding-left: 10pt">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">402,373</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">198,079</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">859,341</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">555,430</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCITEBzN1O_zynReO0X4VK6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">67,642</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,681</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">276,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">258,204</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--PRCTaxExpenseBenefit_d0_maCITEBzN1O_zrkSasAKFcE5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">PRC</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">122,623</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">122,623</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CurrentIncomeTaxExpenseBenefit_iT_pp0p0_mtCITEBzN1O_maITEBzJYV_zblnfhifRHv9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total current income tax provision</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">592,638</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">290,760</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,258,328</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">813,634</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefitAbstract_iB" style="vertical-align: bottom; background-color: White"> <td>Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_iN_di0_maDITEBzdvR_z3J2uc24dHc4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(432,290</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,221</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(432,290</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,221</td><td style="text-align: left">) </td></tr> <tr id="xdx_405_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_iN_di0_maDITEBzdvR_zkmt4Uube63f" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(120,493</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,726</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(120,493</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,726</td><td style="text-align: left">) </td></tr> <tr id="xdx_40D_ecustom--DeferredPRCTaxExpenseBenefit_iN_di0_maDITEBzdvR_zjF7Qxn7FUB2" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">PRC</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left">  </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredIncomeTaxExpenseBenefit_iNT_pp0p0_di0_mtDITEBzdvR_maITEBzJYV_z2BEYK0dFYgk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total deferred tax</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(552,783</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(52,947</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(552,783</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(52,947</td><td style="padding-bottom: 1pt; text-align: left">) </td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxExpenseBenefit_iT_pp0p0_zUTZVEefyhUg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total provision for income taxes</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">39,855</td><td style="padding-bottom: 2.5pt; text-align: left">  </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">237,813</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">705,545</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">760,687</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 402373 198079 859341 555430 67642 92681 276364 258204 122623 0 122623 0 592638 290760 1258328 813634 432290 36221 432290 36221 120493 16726 120493 16726 -0 -0 -0 -0 552783 52947 552783 52947 39855 237813 705545 760687 <table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zyl1cL0joTag" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income taxes (Details - Reconcilation of effective income tax rate)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"><span id="xdx_8B4_zl1E8OIwrDbk" style="display: none">Schedule of reconciliation of effective income tax rate</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20220101__20220331_zeDf7yqduMUh" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_499_20210101__20210331_zFHC7NLW7tUb" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20210701__20220331_z3SVJFFHqggd" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20200701__20210331_zkLnZ75kxzl4" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; width: 40%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2022</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2021</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2022</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: center; width: 11%">2021</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">US calculated statutory tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_dp_zTw6FZw1jmL7" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.00%</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_dp_zZp0Oie7LG4g" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">State (net of federal benefit)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.45%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8.84%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.71%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8.84%</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCreditsForeign_iN_dpi0_zXPP2a8buWE2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Foreign tax rate difference</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1.59%</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.54%</td><td style="text-align: left">) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -20pt; padding-left: 20pt; text-align: left">Net effect of state income tax deduction and other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_dp_zne8rttuf4O8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Permanent and temporary differences</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(21.59%</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">737.57%</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6.40%</td><td style="padding-bottom: 1pt; text-align: left">) </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10.38%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_z4mlpfzOJ8Vi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective tax rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">3.27%</td><td style="padding-bottom: 2.5pt; text-align: left">  </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">767.41%</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">19.77%</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">40.22%</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 0.2100 0.2100 0.2100 0.2100 0.0545 0.0884 0.0571 0.0884 0.0159 -0 0.0054 -0 -0.2159 7.3757 -0.0640 0.1038 0.0327 7.6741 0.1977 0.4022 864109 790823 <p id="xdx_804_eus-gaap--EarningsPerShareTextBlock_zEFT8gf22qTl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 14 – <span id="xdx_82B_zpNBGBUyKck9">Earnings per share</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table sets forth the computation of basic and diluted earnings per share for the periods presented: </p> <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zn05qjXQnxNb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Earnings per share (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_8BE_zfUOC9b3yPEk" style="display: none">Schedule of computation of earnings per share</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_497_20220101__20220331_zDv9sFMDhDNh" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20210101__20210331_zW2Y8WcWjuKe" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20210701__20220331_zexrD9f3snt9" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20200701__20210331_zzw4kTh8TSme" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_zyQ6Z0DmUjrd" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,181,757</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">(206,823</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">2,867,146</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,130,649</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--WeightedaverageSharesUsedInComputingBasicAndDilutedEarningsPerShareAbstract_iB_zXdgM2pLiQE4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Weighted-average shares used in computing basic and diluted earnings per share*</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_i01_z8b47GLtNAHh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">28,045,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">26,999,342</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_i01_znvo7UaZG765" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">28,045,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">26,999,342</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--EarningsLossesPerShareAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Earnings per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareBasic_i01_zVX4I6U0nCT7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.042</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.010</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.106</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.056</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--EarningsPerShareDiluted_i01_zlVtOSrmQPd1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.042</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.010</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.106</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.056</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">____________________ </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 2pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0pt"/><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 16, 2020, the Company implemented a 2-for-1 forward split of the issued and outstanding shares of Class A Common Stock of the Company. The computation of basic and diluted EPS was retroactively adjusted for all periods presented.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 2pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0pt"/><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The computation of basic and diluted EPS did not include the Class B Common Stock as the holders of Class B Common Stock have no dividend or liquidation right until such time as their shares of Class B Common Stock have been converted into Class A Common Stock.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 2pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0pt"/><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The computation of diluted EPS did not include the underlying shares of warrants calculated using treasury method for the three and nine months ended March 31, 2022 as the exercise price was greater than the market price of the shares.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 2pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0pt"/><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended March 31, 2022, the <span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_c20220101__20220331_zeTbA3SRDV77">107,625 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">vested shares of restricted stock units under the Amended and Restated 2020 Equity Incentive Plan (as discussed in Note 15) are considered issued shares and therefore are included in the computation of basic earnings (loss) per share as of grant date when the shares are fully vested. Impact of nonvested RSU is immaterial to the EPS.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zn05qjXQnxNb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Earnings per share (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_8BE_zfUOC9b3yPEk" style="display: none">Schedule of computation of earnings per share</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_497_20220101__20220331_zDv9sFMDhDNh" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20210101__20210331_zW2Y8WcWjuKe" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20210701__20220331_zexrD9f3snt9" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20200701__20210331_zzw4kTh8TSme" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_zyQ6Z0DmUjrd" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,181,757</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">(206,823</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">2,867,146</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">1,130,649</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--WeightedaverageSharesUsedInComputingBasicAndDilutedEarningsPerShareAbstract_iB_zXdgM2pLiQE4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Weighted-average shares used in computing basic and diluted earnings per share*</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_i01_z8b47GLtNAHh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">28,045,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">26,999,342</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_i01_znvo7UaZG765" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">28,045,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">26,999,342</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,204,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--EarningsLossesPerShareAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Earnings per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareBasic_i01_zVX4I6U0nCT7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.042</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.010</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.106</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.056</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--EarningsPerShareDiluted_i01_zlVtOSrmQPd1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.042</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.010</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.106</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.056</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1181757 -206823 2867146 1130649 28045130 20204496 26999342 20204496 28045130 20204496 26999342 20204496 0.042 -0.010 0.106 0.056 0.042 -0.010 0.106 0.056 107625 <p id="xdx_80E_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_z4XJmc0tpcg3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 15 – <span id="xdx_82B_zLami8V9KWDh">Equity</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline">Common Stock</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was incorporated in Nevada on April 11, 2018. As of September 30, 2021, the total authorized shares of capital stock were 200,000,000 shares consisting of 180,000,000 shares of Common Stock (“Common Stock”) and 20,000,000 shares of preferred stock (the “Preferred Stock”), each with a par value of $0.001 per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 16, 2020, the Company filed an amended and restated articles of incorporation in Nevada to consummate a <span id="xdx_902_eus-gaap--StockholdersEquityNoteStockSplit_c20201115__20201116__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember" title="Stock split">2-for-1 forward split</span> of our outstanding shares of Class A Common Stock. All share numbers of Class A Common Stock are stated at a post-split basis.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the amended and restated articles of incorporation, the holders of Class A Common Stock were be entitled to one vote per share in voting or consenting to the election of directors and for all other corporate purposes. The Company issued 20,000,000 shares to its founders at inception.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 15, 2020, pursuant to a rescission and mutual release agreement with an unrelated company, the Company issued <span id="xdx_901_ecustom--StockIssuedForSettlemtnPaymentShares_c20200114__20200115__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_pdd" title="Stock issued for settlemtn payment, shares">204,496</span> shares of its Class A Common Stock as settlement for a payment of $<span id="xdx_90D_ecustom--StockIssuedForSettlemtnPaymentValue_c20200114__20200115__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_pp0p0" title="Stock issued for settlemtn payment, value">427,010</span> received by the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 20, 2020, the Company entered into stock purchase agreements with Chenlong Tan and Allan Huang (the “Founders”) pursuant to which each of the Founders received <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200701__20201020__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pdd" title="Stock issued new, shares">7,000,000</span> shares of the Company’s Class B Common Stock, for a purchase price of $<span id="xdx_904_eus-gaap--SharePrice_c20201020__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pdd" title="Share price">0.001</span> per share in cash. Based on the fact that other than the total consideration of $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20200701__20201020__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pp0p0" title="Stock issued new, value">14,000</span> (total par value of the Class B Common Stock issued), the Founders did not provide additional services or other means of considerations for the issuance of these shares of Class B Common Stock, the issuance of the Class B Common Stock to the Founders was considered as a nominal issuance, in substance a recapitalization transaction. As such, in accordance with FASB ASC 260-10-55-12 and SAB Topic 4D, the Company recorded and presented the issuance retroactively as outstanding for all reporting periods.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Class B Common Stock was entitled to ten (10) votes per share in voting or consenting to the election of directors and for all other corporate purposes. In accordance with the Company’s amended and restated articles of incorporation, the Class B Common Stock was eligible to convert into shares of Class A Common Stock, on a ten-for-one basis, at any time following twelve (12) months after the Company’s completion of the initial public offering of its Class A Common Stock. Holders of Class B Common Stock had no dividend or liquidation rights until such time as their shares of Class B Common Stock were converted into shares of Class A Common Stock. As of June 30, 2020, the outstanding shares of Class B Common Stock were retroactively stated as 14,000,000 and 14,000,000, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective April 14, 2021, the Company amended its articles of incorporation to allow for conversion of its Class B Common Stock at any time after issuance. On that same date, the Class B Common stockholders, Chenlong Tan and Allan Huang, elected to convert all of their 14,000,000 outstanding shares of the Class B Common Stock into 1,400,000 shares of Class A Common Stock. Following that, on April 23, 2021, the Company further amended and restated its articles of incorporation to eliminate the Class A and Class B Common Stock designations and authorize for issuance a total of 180,000,000 shares which are solely designated as Common Stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 14, 2021, the Company closed its initial public offering (“IPO”) under a registration statement, effective May 11, 2021, in which it issued and sold <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20190701__20200514__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_pdd" title="Stock issued new, shares">3,360,000</span> shares of its Common Stock at a purchase price of $5.00 per share. On May 21, 2021, the Company closed on the IPO’s overallotment option, selling an additional <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20190701__20200514__srt--CounterpartyNameAxis__custom--UnderwritersMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_pdd" title="Stock issued new, shares">504,000</span> shares of Common Stock to the IPO’s underwriters at the public offering price of $5.00 per share. The Company received net proceeds of approximately $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn3n3_dm_c20190701__20200514__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zL8VqxTlkB52" title="Proceeds from Issuance or Sale of Equity">16.6</span> million from the IPO after deducting underwriting discounts and offering expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 14, 2021, upon closing on the Company’s IPO, the outstanding Series A convertible preferred stock and Convertible Notes were converted into an aggregate of <span id="xdx_903_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20210501__20210514__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesMember__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_pdd" title="Number of shares converted">955,716</span> shares of the Company’s Common Stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 14, 2021, the Company issued <span id="xdx_909_ecustom--WarrantsExercised_c20210514__srt--CounterpartyNameAxis__custom--BousteadSecuritiesLLCMember_pdd" title="Warrnat exercise">24,451</span> shares of Common Stock upon cashless exercise of warrants held by Boustead Securities LLC, the placement agent for the Company’s private placement offerings completed in December 2020 and January 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the nine months ended March 31, 2022, the Company issued <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pp0p0_c20210701__20220331__us-gaap--AwardTypeAxis__custom--StockIssuedForVestedRsusMember_zr3iVMPlYxp8" title="Stock Issued During Period, Value, Conversion of Convertible Securities">40,019</span> shares of restricted common stock for RSUs vested in the quarter ended September 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 15, 2022, as part of the consideration for the acquisition of Anivia and subsidiaries, the Company issued <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardForfeited_c20220201__20220215_zn9roPscZbSk">3,083,700 </span>restricted shares of the Company’s common stock, valued at $<span id="xdx_90D_eus-gaap--SaleOfStockPricePerShare_iI_c20220215_zVRMIJhsEhOf">2.27 </span>per share, which was the closing price of the Company’s Common Stock as traded on Nasdaq on February 15, 2022. These shares have a lock-up period of 180 days and are subject to insider trading restrictions. The fair value of the shares was $<span id="xdx_908_ecustom--FairValueOfShare_c20220201__20220215_zd2xwybCgDBh"><span style="-sec-ix-hidden: xdx2ixbrl1331">5,528,373, </span></span>calculated with a discount of lack of marketability of 21%, which is determined using the Black Scholes Model.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, there were <span id="xdx_900_eus-gaap--CommonStockSharesIssued_iI_c20220331_znXzG1ohVkvd" title="Common stock, shares issued"><span id="xdx_90D_eus-gaap--CommonStockSharesOutstanding_iI_c20220331_zt4B7k7LHz03" title="Common stock, shares outstanding">29,572,382</span></span> and <span id="xdx_90B_eus-gaap--CommonStockSharesIssued_iI_c20210630_zIPWO7rnL3Q8" title="Common stock, shares issued"><span id="xdx_907_eus-gaap--CommonStockSharesOutstanding_iI_c20210630_zf4C015gyvhb" title="Common stock, shares outstanding">26,448,663</span></span> shares of Common Stock issued and outstanding, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Preferred Stock</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Preferred Stock was authorized as “blank check” series of Preferred Stock, providing that the Board of Directors is expressly authorized, subject to limitations prescribed by law, by resolution or resolutions and by filing a certificate pursuant to the applicable law of the State of Nevada, to provide, out of the authorized but unissued shares of Preferred Stock, for series of Preferred Stock, and to establish from time to time the number of shares to be included in each such series, and to fix the designation, powers, preferences and rights of the shares of each such series and the qualifications, limitations or restrictions thereof. As of March 31, 2022 and June 30, 2021, respectively, there were no shares of Preferred Stock was issued and outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Equity Incentive Plan</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 5, 2021, the Company’s Board of Directors adopted, and its stockholders approved and ratified, the iPower Inc. Amended and Restated 2020 Equity Incentive Plan (the “Plan”). The Plan allows for the issuance of up to <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_c20220331__us-gaap--PlanNameAxis__custom--EquityIncentivePlanMember_pdd" title="Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized">5,000,000</span> shares of Common Stock, whether in the form of options, restricted stock, restricted stock units, stock appreciation rights, performance units, performance shares and other stock or cash awards. The general purpose of the Plan is to provide an incentive to the Company’s directors, officers, employees, consultants and advisors by enabling them to share in the future growth of the Company’s business.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following completion of the IPO on May 14, 2021, pursuant to their letter agreements, the Company awarded <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20200701__20210514__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--RelatedPartyTransactionAxis__custom--LetterAgreementsMember_zPJvY61yqxGa">46,546 </span>restricted stock units (“RSUs”) under the Plan to its independent directors, Chief Financial Officer, and certain other employees and consultants, all of which are subject to certain vesting conditions in the next 12 months and restrictions until filing of a Form S-8 for registration of the shares. The fair value of the RSUs was determined to be based on $5.00 per share, the initial listing price of the Company’s Common Stock on the grant date. During the nine months ended March 31, 2022, the Company granted additional <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zRgC2rixsAzf">97,128 </span>shares of RSUs – <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20210701__20210930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zc5o3rPtkeTj">11,745 </span>shares in the quarter ended September 30, 2021, <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20211001__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQZFt9C90zg9">13,216 </span>shares in the quarter ended December 31, 2021 and <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220101__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zqbDRhtEHgs9">72,167 </span>shares in the quarter ended March 31, 2022. For the three and nine months ended March 31, 2022, the Company recorded $<span id="xdx_90C_eus-gaap--ShareBasedCompensation_c20220101__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_pp0p0">149,299 </span>and $<span id="xdx_909_eus-gaap--ShareBasedCompensation_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_pp0p0">306,788 </span>of stock-based compensation expense. As of March 31, 2022, the unamortized expense was $<span id="xdx_90B_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions_c20220331_pp0p0">22,500</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Information relating to RSU grants is summarized as follows:  </p> <table cellpadding="0" cellspacing="0" id="xdx_88D_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_zqWsdz0Xne2d" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Equity (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B6_znkYafXIreO2" style="display: none">Schedule of RSU activity</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Total RSUs Issued</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Total Fair Market Value of RSUs Issued as Compensation (1)</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 70%; text-align: left">RSUs granted, but not vested, at June 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zcolPYpqBTX4" style="width: 11%; text-align: right" title="RSU's outstanding at beginning">24,409</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">RSUs granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_pdd" style="text-align: right" title="RSUs granted">97,128</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--StockIssued1_pp0p0_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_fKDEp_zajMHuflBZk7" style="text-align: right" title="Total Fair Market Value of RSUs Issued as Compensation">227,237</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">RSUs forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJXeAlX5ofyi" style="text-align: right" title="RSUs forfeited">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">RSUs vested</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_di_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z9jOGkxKgISg" style="border-bottom: Black 1pt solid; text-align: right" title="RSUs vested">(107,625</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">RSUs granted, but not vested, at March 31, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zhwgXJ2VHRK" style="border-bottom: Black 2.5pt double; text-align: right" title="RSU's outstanding at ending">9,912</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> _____________________</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td><span id="xdx_F0D_z8tFt9FOe9ed" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td><span id="xdx_F1B_zszv8OZBp4Tk" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The total fair value was based on the current stock price on the grant date.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022, of the 107,625 vested RSUs, <span id="xdx_903_ecustom--StockIssuedForRsuVested_c20220331_pdd" title="Stock issued for RSU's vested">17,882</span> shares of Common Stock were issued, and <span id="xdx_90B_ecustom--StockToBeIssuedForRsuVested_c20220331_pdd" title="Stock to be issued for RSU's vested">89,743</span> shares were to be issued in the next quarter.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 2-for-1 forward split 204496 427010 7000000 0.001 14000 3360000 504000 16600000 955716 24451 40019 3083700 2.27 29572382 29572382 26448663 26448663 5000000 46546 97128 11745 13216 72167 149299 306788 22500 <table cellpadding="0" cellspacing="0" id="xdx_88D_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_zqWsdz0Xne2d" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Equity (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B6_znkYafXIreO2" style="display: none">Schedule of RSU activity</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Total RSUs Issued</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Total Fair Market Value of RSUs Issued as Compensation (1)</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 70%; text-align: left">RSUs granted, but not vested, at June 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zcolPYpqBTX4" style="width: 11%; text-align: right" title="RSU's outstanding at beginning">24,409</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">RSUs granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_pdd" style="text-align: right" title="RSUs granted">97,128</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--StockIssued1_pp0p0_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_fKDEp_zajMHuflBZk7" style="text-align: right" title="Total Fair Market Value of RSUs Issued as Compensation">227,237</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">RSUs forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJXeAlX5ofyi" style="text-align: right" title="RSUs forfeited">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">RSUs vested</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_di_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z9jOGkxKgISg" style="border-bottom: Black 1pt solid; text-align: right" title="RSUs vested">(107,625</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">RSUs granted, but not vested, at March 31, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20210701__20220331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zhwgXJ2VHRK" style="border-bottom: Black 2.5pt double; text-align: right" title="RSU's outstanding at ending">9,912</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 24409 97128 227237 4000 107625 9912 17882 89743 <p id="xdx_809_ecustom--WarrantsTextBlock_zsow2lnCy3U1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 16 – <span id="xdx_82B_zp1GCy86thQj">Warrants</span> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 27, 2021, the Company completed a private placement offering pursuant to which the Company sold to two accredited investors an aggregate of <span id="xdx_901_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_c20210126__20210127__srt--CounterpartyNameAxis__custom--TwoAccreditedInvestorsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pp0p0" title="Proceeds from sale of equity">$3,000,000</span> in Convertible Notes and warrants to purchase shares of Class A Common Stock equaling 80% of the number of shares of Class A Common Stock issuable upon conversion of the Convertible Notes. The convertible note warrants are exercisable for a period of three years from the IPO completion date at a per share exercise price equal to the IPO, or $5.00 per share. In accordance with the terms of the warrants, in the event the Convertible Notes are repaid in cash by the Company, the warrants issued in conjunction with the Convertible Notes will expire and have no further value.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Convertible Note offering, the Company also issued placement agent warrants to purchase 7.0% of the shares of Common Stock underlying the Convertible Notes exercisable at the conversion price of the Convertible Note (the “Conversion Price”). The placement agent warrants had an exercise period of five years from the issuance date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 14, 2021, upon closing of its IPO, the Company remeasured the warrants to fair value using the Modified Black Scholes Option Pricing Model, based on the expected fair value of the underlying stock with the following assumptions: </p> <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zY0XWEyym967" style="font: 10pt Times New Roman, Times, Serif; width: 50%; border-collapse: collapse" summary="xdx: Disclosure - Warrant (Details - Assumptions)"> <tr style="vertical-align: top; background-color: White"> <td><span id="xdx_8B2_z20vcIhZ1G48" style="display: none">Schedule of assumptions for warrant liabilities</span></td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td style="width: 35%"> </td> <td style="border-bottom: black 1pt solid; width: 15%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of May 14, 2021</span></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected term</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember" title="Fair value measurement assumptions">1 day to 3 years</span></span></td></tr> <tr style="vertical-align: top; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected volatility</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember" title="Fair value measurement assumptions">3.3% to 58%</span></span></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk-free interest rate</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember" title="Fair value measurement assumptions">0.35% to 0.92%</span> </span></td></tr> <tr style="vertical-align: top; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected dividend rate</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_904_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember" title="Fair value measurement assumptions">0%</span></span></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Probability</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputProbablityMember" title="Fair value measurement assumptions">100%</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of May 14, 2021, the fair value of the warrant liabilities was $<span id="xdx_90C_eus-gaap--FinancialLiabilitiesFairValueDisclosure_c20210514_pp0p0" title="Fair value of warrant liabilities">1,361,347</span>, which includes $<span id="xdx_908_eus-gaap--FinancialLiabilitiesFairValueDisclosure_c20210514__us-gaap--FinancialInstrumentAxis__custom--PreferredStockWarrantsMember_pp0p0" title="Fair value of warrant liabilities">4,610</span> preferred stock warrants, $<span id="xdx_907_eus-gaap--FinancialLiabilitiesFairValueDisclosure_c20210514__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteInvestorsMember_pp0p0" title="Fair value of warrant liabilities">1,324,668</span> warrants issued to the Convertible Note investors and $<span id="xdx_900_eus-gaap--FinancialLiabilitiesFairValueDisclosure_c20210514__us-gaap--FinancialInstrumentAxis__custom--PlacementAgentWarrantsMember_pp0p0" title="Fair value of warrant liabilities">32,069</span> warrants issued to the placement agent. The increase in fair value immediately before the IPO was $<span id="xdx_90C_eus-gaap--FairValueAdjustmentOfWarrants_pp0p0_c20200701__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zJWeSrCZXBi8" title="Fair Value Adjustment of Warrants">617,593</span>, which was reported in other non-operating expenses for the year ended June 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon closing the IPO on May 14, 2021, the Placement Agent exercised its warrants in full to purchase a total of <span id="xdx_903_ecustom--WarrantsExercised_iI_c20210514__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PlacementAgentMember_zFyD9uhZ8lj" title="Warrants Exercised"><span id="xdx_900_ecustom--WarrantsExercised_iI_c20210514__srt--CounterpartyNameAxis__custom--BousteadSecuritiesLLCMember_z4v04A80sY09" title="Warrants Exercised">24,451</span></span> shares of the Company’s Common Stock and, as such, there were no Placement Agent Warrants outstanding as of June 30, 2021. At the same time, the outstanding warrants held by the Convertible Note investors were reclassified to additional paid in capital as the terms became fixed upon closing of the IPO. Through March 31, 2022, none of the private placement investors had exercised any of their warrants. As such, as of March 31, 2022 and June 30, 2021, the number of shares issuable under the outstanding warrants was <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightOutstanding_c20220331_pdd" title="Outstanding warrants"><span id="xdx_902_eus-gaap--ClassOfWarrantOrRightOutstanding_c20210630_pdd" title="Outstanding warrants">685,715</span></span>, with an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_c20220331_pdd" title="Class of Warrant or Right, Exercise Price of Warrants or Rights">5.0</span> per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 3000000 <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zY0XWEyym967" style="font: 10pt Times New Roman, Times, Serif; width: 50%; border-collapse: collapse" summary="xdx: Disclosure - Warrant (Details - Assumptions)"> <tr style="vertical-align: top; background-color: White"> <td><span id="xdx_8B2_z20vcIhZ1G48" style="display: none">Schedule of assumptions for warrant liabilities</span></td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td style="width: 35%"> </td> <td style="border-bottom: black 1pt solid; width: 15%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of May 14, 2021</span></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected term</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember" title="Fair value measurement assumptions">1 day to 3 years</span></span></td></tr> <tr style="vertical-align: top; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected volatility</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember" title="Fair value measurement assumptions">3.3% to 58%</span></span></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk-free interest rate</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember" title="Fair value measurement assumptions">0.35% to 0.92%</span> </span></td></tr> <tr style="vertical-align: top; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected dividend rate</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_904_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember" title="Fair value measurement assumptions">0%</span></span></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Probability</span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_eus-gaap--DerivativesBasisAndUseOfDerivativesBasisDeterminationOfFairValue_c20200701__20210514__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantLiabilityMember__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputProbablityMember" title="Fair value measurement assumptions">100%</span></span></td></tr> </table> 1 day to 3 years 3.3% to 58% 0.35% to 0.92% 0% 100% 1361347 4610 1324668 32069 617593 24451 24451 685715 685715 5.0 <p id="xdx_801_eus-gaap--ConcentrationRiskDisclosureTextBlock_zzIG9omhdFr" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 17 - <span id="xdx_82A_zeEEt04Gce7a">Concentration of risk</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Credit risk</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and June 30, 2021, $<span id="xdx_906_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pp0p0_c20220331_zQJRYpMGqrsk">2,641,584</span> and $<span id="xdx_905_eus-gaap--CashAndCashEquivalentsAtCarryingValue_c20210630_pp0p0">6,651,705</span>, respectively, were deposited with various major financial institutions in the United States and PRC. Accounts at each institution in the United States, are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. The Company had approximately $<span id="xdx_909_eus-gaap--CashUninsuredAmount_iI_pn3n3_dm_c20220331_zOO4tWPvLobf">2.0 </span>million and $<span id="xdx_90B_eus-gaap--CashUninsuredAmount_iI_pn3n3_dm_c20210630_zK3NJMv8zR8l">5.4</span> million, respectively, in excess of the FDIC insurance limit, as of March 31, 2022 and June 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposing the Company 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 maintains reserves for estimated credit losses, and such losses have generally been within expectations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The business of DHS, the Company’s VIE, may be impacted by Chinese economic conditions, changes in regulations and laws, and other uncertainties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Customer and vendor concentration risk</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the nine months ended March 31, 2022 and 2021, Amazon Vendor and Amazon Seller customers accounted for <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__srt--MajorCustomersAxis__custom--AmazonVendorAndAmazonSellerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_z43VhGmQ8Zzb" title="Concentration risk percent">89</span>% and <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210331__srt--MajorCustomersAxis__custom--AmazonVendorAndAmazonSellerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zMRRQcEhqS53" title="Concentration risk percent">78</span>% of the Company's total revenues, respectively. As of March 31, 2022 and June 30, 2021, accounts receivable from Amazon Vendor and Amazon Seller accounted for <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__srt--MajorCustomersAxis__custom--AmazonVendorAndAmazonSellerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zUYxzi5vVV17" title="Concentration risk percent">92</span>% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210331__srt--MajorCustomersAxis__custom--AmazonVendorAndAmazonSellerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zFf7QybydKrf" title="Concentration risk percent">98</span>% of the Company’s total accounts receivable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">   </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the nine months ended March 31, 2022 and 2021, two suppliers accounted for <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--TwoSuppliersMember_zmGYgeSyMdri" title="Concentration risk percent">27</span>% (<span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--OneSuppliersMember_z2Hr9hie3WF7" title="Concentration risk percent">19</span>% and <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--AnotherSuppliersMember_zPFMR2tfN6Na" title="Concentration risk percent">8</span>%) and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--TwoSuppliersMember_zaqK1Y6mBx09" title="Concentration risk percent">28</span>% (<span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--OneSuppliersMember_zOOvHR1bWJ96" title="Concentration risk percent">17</span>% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--AnotherSuppliersMember_zJKQObzhK617" title="Concentration risk percent">11</span>%) of the Company's total purchases, respectively. As of March 31, 2022, accounts payable to three suppliers accounted for <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--ThreeSupplierMember_zVJJnX882aDg" title="Concentration risk percent">44</span>% (<span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--OneSupplierMember_zz3RNaEFd7c6" title="Concentration risk percent">20</span>%, <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--TwoSupplierMember_zGgRe1EwUY2g" title="Concentration risk percent">13</span>% and <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--AnotherSupplierMember_zFhNUqNA7evh" title="Concentration risk percent">11</span>%) of the Company’s total accounts payable. As of June 30, 2021, accounts payable to two suppliers accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--OneSupplierMember_ziY9oT9thCGb" title="Concentration risk percent">11</span>% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_c20200701__20210630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--ProductConcentrationRiskMember__us-gaap--SupplyCommitmentAxis__custom--AnotherSupplierMember_zu4EyPbpnFb4" title="Concentration risk percent">10</span>% of the Company’s total accounts payable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p> 2641584 6651705 2000000.0 5400000 0.89 0.78 0.92 0.98 0.27 0.19 0.08 0.28 0.17 0.11 0.44 0.20 0.13 0.11 0.11 0.10 <p id="xdx_803_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_ziTEVEZCS5vi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 18 - <span id="xdx_820_zi5NiSKlrT4g">Commitments and contingencies</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Lease commitment</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has adopted ASC842 since its inception date, April 11, 2018. The Company has entered into a lease agreement for office and warehouse space with a lease period from December 1, 2018 until December 31, 2020. On August 24, 2020, the Company negotiated for new terms to extend the lease. As a result, the lease term was amended and extended through December 31, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 1, 2020, in addition to the primary fulfillment center, the Company leased a second fulfillment center in City of Industry, California. The base rental fee is $27,921 to $29,910 per month through October 31, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 15, 2022, upon completion of the acquisition of Anivia Limited, the Company assumed operating lease of offices in Shenzhen, People’s Republic of China.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 28, 2021, the Company entered into a Lease agreement (the “Lease Agreement”) with 9th &amp; Vineyard, LLC, a Delaware limited liability company (the “Landlord”), to lease from the Landlord approximately 99,347 square feet of space located at 8798 9th Street, Rancho Cucamonga, California (the “Premises”). The term of the Lease Agreement was for 62 months, commencing on the date on which the Landlord completes certain prescribed improvements on the property (the “Rent Commencement Date”). The Lease Agreement does not provide for an option to renew.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, the Company will be responsible for its pro rata share of certain costs, including utility costs, insurance and common area costs, as further detailed in the Lease Agreement. Following the Rent Commencement Date, the first two months of the Base Rent will be abated.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The lease was not started under the original agreement as the construction was not completed. On February 23, 2022, the Company entered into an amended agreement to extend the lease term to 74 months. The lease commencement date is February 10, 2022, the rent commencement date is May 11, 2022 and the expiration date is May 31, 2028. The base rental fee is $<span id="xdx_900_eus-gaap--AircraftRentalAndLandingFees_pp0p0_c20220201__20220223_zSYuTMx94dVj" title="Rental fees">114,249</span> to $<span id="xdx_90D_eus-gaap--AircraftRentalAndLandingFees_c20210701__20220331_pp0p0" title="Rental fees">140,079</span> per month through the expiration date, May 31, 2028.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total commitment for the full term of these leases is $<span id="xdx_90A_eus-gaap--ContractualObligation_c20220331_pp0p0" title="Lease commitment">10,466,658</span>. $<span id="xdx_903_eus-gaap--OperatingLeaseRightOfUseAsset_c20220331_pp0p0" title="Operating lease, right of use asset">9,095,158</span> and $<span id="xdx_90C_eus-gaap--OperatingLeaseRightOfUseAsset_c20210630_pp0p0" title="Operating lease, right of use asset">1,819,421</span> of operating lease right-of-use assets and $<span id="xdx_907_eus-gaap--OperatingLeaseLiability_c20220331_pp0p0" title="Operating lease liability">9,364,298</span> and $<span id="xdx_906_eus-gaap--OperatingLeaseLiability_c20210630_pp0p0" title="Operating lease liability">1,901,496</span> of operating lease liabilities were reflected on the March 31, 2022 and June 30, 2021 financial statements, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Three Months Ended March 31, 2022 and 2021: </p> <table cellpadding="0" cellspacing="0" id="xdx_89B_eus-gaap--LeaseCostTableTextBlock_zKGVAK4YQXb3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and contingencies (Details - Lease cost)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B2_z3cA6z0fWgY2" style="display: none">Schedule of lease cost and other information</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"><span style="text-decoration: underline">Lease cost</span></td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; width: 70%; text-align: left">Operating lease cost (included in selling and fulfillment expenses in the Company's statement of operations)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseCost_c20220101__20220331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">427,692</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseCost_c20210101__20210331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">189,647</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left">Other information</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--OperatingLeasePayments_c20220101__20220331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">234,504</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeasePayments_c20210101__20210331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">130,893</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Remaining term in years</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_ecustom--OperatingLeaseWeightedAverageRemainingLeaseTerm2_dtY_c20220101__20220331_z5s8lZElxwRb" title="Remaining lease term in years">1.33 – 6.17</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20210331_zo2AOgoaJE8j" title="Lease remaining term">2.5</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Average discount rate - operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_ecustom--OperatingLeaseWeightedAverageDiscountRatePercent1_c20220101__20220331_zOLonXbsYDJc" title="Average discount rate - operating leases">5% – 8</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_c20210331_zRbFckLo57Gl" title="Average discount rate - operating leases">8</span>%</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nine Months Ended March 31, 2022 and 2021:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"><span style="text-decoration: underline">Lease cost</span></td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; text-align: left; width: 70%">Operating lease cost (included in selling and fulfillment expenses in the Company's statement of operations)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseCost_c20210701__20220331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">838,726</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeaseCost_c20200701__20210331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">559,606</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left">Other information</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeasePayments_c20210701__20220331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">656,961</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeasePayments_c20200701__20210331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">473,285</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Remaining term in years</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_ecustom--OperatingLeaseWeightedAverageRemainingLeaseTerm2_dtY_c20210701__20220331_zXGGRhaPDiji">1.33 – 6.17</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20210331_zn0IOdVsbZ84" title="Lease remaining term">2.5</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Average discount rate - operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_ecustom--OperatingLeaseWeightedAverageDiscountRatePercent1_c20210701__20220331_zgWkW9CEr4ug">5% – 8%</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_c20210331_z7Zw7u0Wxebe" title="Average discount rate - operating leases">8</span>%</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8AD_zQJIcUNeMZx7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The supplemental balance sheet information related to leases for the period is as follows: </p> <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_zP7aE5bZxV1k" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and contingencies (Details - Balance Sheet)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zeGrssq7EJy5" style="display: none">Supplemental balance sheet information related to leases</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20220331_zRnvVNApbM71" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49A_20210630_zhw6dLNzGIof" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"><span style="text-decoration: underline">Operating leases</span></td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">6/30/2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_zsZN5ACqhCni" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 70%; text-align: left">Right of use asset - non-current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">9,095,158</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,819,421</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OperatingLeaseLiabilityCurrents_iI_pp0p0_maOLLzTMt_zFZPUmMcfzA8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Lease Liability - current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,790,688</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">731,944</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--OperatingLeaseLiabilityNoncurrents_iI_pp0p0_maOLLzTMt_zCYU4aMSf9rg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Lease Liability - non-current</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,573,610</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,169,552</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiability_iTI_pp0p0_mtOLLzTMt_zJSAZaSk99ac" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,364,298</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,901,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_z2MXSleysswk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Maturities of the Company’s lease liabilities are as follows: </p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_za5popRlTcdb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and contingencies (Details - Lease maturity)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span id="xdx_8BD_zkshG1F8rKD3" style="display: none">Schedule of maturities of lease liabilities</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_497_20220331_zQQB7zfA5X91" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt">For years ending June 30:</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid">Operating Lease</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; width: 85%; text-align: left">2022</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">473,908</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,381,601</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,815,637</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pp0p0_zypR0r78kazj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,486,231</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pp0p0_zbjvuhVff2p5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">2026 and after</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,579,896</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_pp0p0_zzlborUYy6wg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,737,273</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pp0p0_di_zb2oHPNRGaX6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Imputed interest/present value discount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,372,975</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseLiability_iI_pp0p0_z0bSsnuOdY97" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,364,298</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_z7tAO3joM5cf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Contingencies</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as disclosed below, the Company is not currently a party to any material legal proceedings, investigation or claims. However, the Company may, from time to time, be involved in legal matters arising in the ordinary course of its business. While the Company is not presently subject to any material legal proceedings, other than the proceeding detailed below, there can be no assurance that such matters will not arise in the future or that any such matters in which the Company is involved, or which may arise in the ordinary course of the Company’s business, will not at some point proceed to litigation or that such litigation will not have a material adverse effect on the business, financial condition or results of operations of the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to an engagement agreement, dated and effective August 31, 2020 (the “Engagement Agreement”), with Boustead Securities LLC (“Boustead”), the Company engaged Boustead to act as its exclusive placement agent for private placements of its securities and as a potential underwriter for its initial public offering. On February 28, 2021, the Company informed Boustead that it was terminating the Engagement Agreement and any continuing obligations the Company may have had under its terms. On April 15, 2021, the Company provided formal written notice to Boustead of its termination of the Engagement Agreement and all obligations thereunder, effective immediately. On April 30, 2021, Boustead filed a statement of claim with the Financial Institute Regulatory Authority, or FINRA, demanding to arbitrate the dispute, and is seeking, among other things, monetary damages against the Company and D.A. Davidson &amp; Co. (who acted as underwriter in the Company’s IPO). The FINRA arbitration, which had originally been scheduled for June 20, 2022, has now been delayed and is tentatively scheduled to be heard at the end of October, 2022. The Company has agreed to indemnify D.A. Davidson &amp; Co. and the other underwriters against any liability or expense they may incur or be subject to arising out of the Boustead dispute. Additionally, Chenlong Tan, the Company’s Chairman, President and Chief Executive Officer and a beneficial owner more than 5% of the Company’s Common Stock, has agreed to reimburse the Company for any judgments, fines and amounts paid or actually incurred by the Company or an indemnitee in connection with such legal action or in connection with any settlement agreement entered into by the Company or an indemnitee up to a maximum of $3.5 million in the aggregate, with the sole source of funding of such reimbursement to come from sales of shares then owned by Mr. Tan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In an effort to contain or slow the COVID-19 outbreak, authorities across the world have implemented various measures, some of which have been subsequently rescinded or modified, including travel bans, stay-at-home orders and shutdowns of certain businesses. The Company anticipates that these actions and the global health crisis caused by the COVID-19 outbreak, including any resurgences, will continue to negatively impact global economic activity. While the COVID-19 outbreak has not had a material adverse impact on the Company’s operations to date, it is difficult to predict all of the positive or negative impacts the COVID-19 outbreak will have on the Company’s business.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 10pt; background-color: white">In February 2022, the Russian Federation began conducting military operations against </span><span style="background-color: white">Ukraine<span style="font-size: 10pt">, resulting in global economic uncertainty and increased cost of various commodities. In response to these types of events, we might suspend operations, implement extraordinary procedures, seek alternate sources for product supply, or suffer consequences that are unexpected and difficult to mitigate. Any of these risks might have a materially adverse impact on our business operations and our financial position or results of operations. Although, it is difficult to predict the impact that these factors may have on our business in the future, they did not have a material effect on our results of operations, financial condition, or liquidity for the period ended March 31, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 114249 140079 10466658 9095158 1819421 9364298 1901496 <table cellpadding="0" cellspacing="0" id="xdx_89B_eus-gaap--LeaseCostTableTextBlock_zKGVAK4YQXb3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and contingencies (Details - Lease cost)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B2_z3cA6z0fWgY2" style="display: none">Schedule of lease cost and other information</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"><span style="text-decoration: underline">Lease cost</span></td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; width: 70%; text-align: left">Operating lease cost (included in selling and fulfillment expenses in the Company's statement of operations)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseCost_c20220101__20220331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">427,692</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseCost_c20210101__20210331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">189,647</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left">Other information</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--OperatingLeasePayments_c20220101__20220331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">234,504</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeasePayments_c20210101__20210331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">130,893</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Remaining term in years</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_ecustom--OperatingLeaseWeightedAverageRemainingLeaseTerm2_dtY_c20220101__20220331_z5s8lZElxwRb" title="Remaining lease term in years">1.33 – 6.17</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20210331_zo2AOgoaJE8j" title="Lease remaining term">2.5</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Average discount rate - operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_ecustom--OperatingLeaseWeightedAverageDiscountRatePercent1_c20220101__20220331_zOLonXbsYDJc" title="Average discount rate - operating leases">5% – 8</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_c20210331_zRbFckLo57Gl" title="Average discount rate - operating leases">8</span>%</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nine Months Ended March 31, 2022 and 2021:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"><span style="text-decoration: underline">Lease cost</span></td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; text-align: left; width: 70%">Operating lease cost (included in selling and fulfillment expenses in the Company's statement of operations)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseCost_c20210701__20220331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">838,726</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeaseCost_c20200701__20210331_pp0p0" style="width: 11%; text-align: right" title="Operating lease cost">559,606</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left">Other information</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--OperatingLeasePayments_c20210701__20220331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">656,961</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeasePayments_c20200701__20210331_pp0p0" style="text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">473,285</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Remaining term in years</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_ecustom--OperatingLeaseWeightedAverageRemainingLeaseTerm2_dtY_c20210701__20220331_zXGGRhaPDiji">1.33 – 6.17</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20210331_zn0IOdVsbZ84" title="Lease remaining term">2.5</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Average discount rate - operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_ecustom--OperatingLeaseWeightedAverageDiscountRatePercent1_c20210701__20220331_zgWkW9CEr4ug">5% – 8%</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_c20210331_z7Zw7u0Wxebe" title="Average discount rate - operating leases">8</span>%</td><td style="text-align: left"> </td></tr> </table> 427692 189647 234504 130893 1.33 – 6.17 P2Y6M 5% – 8 0.08 838726 559606 656961 473285 1.33 – 6.17 P2Y6M 5% – 8% 0.08 <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_zP7aE5bZxV1k" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and contingencies (Details - Balance Sheet)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8BC_zeGrssq7EJy5" style="display: none">Supplemental balance sheet information related to leases</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20220331_zRnvVNApbM71" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49A_20210630_zhw6dLNzGIof" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"><span style="text-decoration: underline">Operating leases</span></td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">6/30/2021</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_zsZN5ACqhCni" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 70%; text-align: left">Right of use asset - non-current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">9,095,158</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,819,421</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OperatingLeaseLiabilityCurrents_iI_pp0p0_maOLLzTMt_zFZPUmMcfzA8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Lease Liability - current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,790,688</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">731,944</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--OperatingLeaseLiabilityNoncurrents_iI_pp0p0_maOLLzTMt_zCYU4aMSf9rg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Lease Liability - non-current</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,573,610</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,169,552</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiability_iTI_pp0p0_mtOLLzTMt_zJSAZaSk99ac" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,364,298</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,901,496</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 9095158 1819421 1790688 731944 7573610 1169552 9364298 1901496 <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_za5popRlTcdb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and contingencies (Details - Lease maturity)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span id="xdx_8BD_zkshG1F8rKD3" style="display: none">Schedule of maturities of lease liabilities</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_497_20220331_zQQB7zfA5X91" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt">For years ending June 30:</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid">Operating Lease</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; width: 85%; text-align: left">2022</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">473,908</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,381,601</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,815,637</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pp0p0_zypR0r78kazj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,486,231</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pp0p0_zbjvuhVff2p5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">2026 and after</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,579,896</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_pp0p0_zzlborUYy6wg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,737,273</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pp0p0_di_zb2oHPNRGaX6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Imputed interest/present value discount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,372,975</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseLiability_iI_pp0p0_z0bSsnuOdY97" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,364,298</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 473908 2381601 1815637 1486231 4579896 10737273 1372975 9364298 <p id="xdx_808_eus-gaap--SubsequentEventsTextBlock_zqaU2QMyLWlh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 19 - <span id="xdx_825_zL2Fs0awiTl7">Subsequent events</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 12, 2022, the Compensation Committee of the Board of Directors approved an incentive plan for the Company’s executive officers consisting of a cash performance bonus of $60,000 to be awarded to Kevin Vassily, CFO of the Company, and grants of stock option (the “Option Grants”) in the amount of (i) 3,000,000 shares to Chenlong Tan, CEO and (ii) 330,000 shares to Mr. Vassily. The Option Grants, which were issued on May 13, 2022, have an exercise price of $1.12 per share (the closing price on the grant date) and have a term of 10 years, will vest in stages upon the Company’s achievement of certain market capitalization and revenue or operating income targets set forth in the grant agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On or about May 12, 2022, the Company determined that it may have miscalculated when determining the financial significance of DHS, its recently acquired subsidiary, which would place it just above the 20% significance threshold under Rule 3-05 of Regulation S-X under the Securities Act of 1933, as amended. As such, the Company may need to file with the SEC one year’s audited financial statements for the subsidiary, plus unaudited financial statements for the interim period. The Company is presently evaluating the requirements, including consulting with the SEC, and will make any necessary disclosures, as required.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 16, 2022, the Company and its subsidiaries E Marketing Solutions Inc. and Global Product Solution Inc. (together with the Company, the “Loan Parties”), entered into a first amendment and limited waiver to credit agreement (the “Amendment and Waiver Agreement”) with the Company’s senior lender, JP Morgan Chase Bank, NA (“JPM”). The Amendment and Waiver Agreement was entered into for purposes of waiving certain non-financial defaults by the Loan Parties under the terms of the credit agreement, dated November 12, 2021, between the Loan Parties and JPM. Under the terms of the Amendment and Waiver Agreement, JPM agreed to a limited waiver of the defaults, thus allowing the Loan Parties additional time to deliver certain documents, which included failure to deliver compliance certificates during the months of October 2021 through March 2022, failure to timely deliver deposit control agreements as required, failure to provide evidence that the Company’s obligations owed to the Small Business Administration had been satisfied, and failure to timely pledge the Company’s 40% equity interest in its joint venture, Box Harmony LLC. In exchange for entry into the Amendment and Waiver Agreement, the Loan Parties agreed to satisfy the aforementioned defaults and pay JPM all of its fees borne in relation to entry into the Amendment and Waiver Agreement, including but not limited to legal fees and disbursements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b/></p> The total fair value was based on the current stock price on the grant date.