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Statutory Reserve
 6 Months Ended
Dec. 31, 2021
Statutory Reserve [Abstract]  
STATUTORY RESERVE

14. STATUTORY RESERVE

 

WFOE, Pop Culture, Shanghai Pudu, Pop Network, Guangzhou Shuzhi, Shenzhen Pop, and Xiamen Sikai are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital, which was $2,663,330 and $2,663,330 as of June 30, 2020 and 2021, respectively. This statutory reserve is not distributable in the form of cash dividends.

 

For the six months ended December 31, 2020 and 2021, the Company provided statutory reserve as follows: 

 

Balance - June 30, 2020  $779,094 
Appropriation to statutory reserve   
-
 
Balance - December 31, 2020   779,094 
Appropriation to statutory reserve   462,479 
Balance - June 30, 2021   1,241,573 
Appropriation to statutory reserve   150,197 
Balance - December 31, 2021  $1,391,770