XML 80 R42.htm IDEA: XBRL DOCUMENT
v3.23.3

Taxes (Tables) | 12 Months Ended
--- | ---
Jun. 30, 2023
Taxes [Abstract] |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes
|  | For the years ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Mainland China |  | $ | 4,350,067 |  |  | $ | 17,366,634 |  |  | $ | 14,814,221 |
Non- Mainland China |  |  | (3,580,421 | ) |  |  | (9,682,434 | ) |  |  | (6,493,761 | )
|  | $ | 769,646 |  |  | $ | 7,684,200 |  |  | $ | 8,320,460 |
Schedule of Statutory Rate to the Company's Effective Tax Rate | The following table reconciles the statutory rate to the Company’s effective tax rate:
|  | For the years ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
PRC statutory income tax rate |  |  | 25.0 | % |  |  | 25.0 | % |  |  | 25.0 | %
Effect of income tax rate difference in other jurisdictions |  |  | 115.5 | % |  |  | 25.8 | % |  |  | 19.1 | %
Effect of tax rate changes on deferred taxes |  |  | 7.9 | % |  |  | (0.3 | )% |  |  | (0.5 | )%
Effect of PRC preferential tax rate and tax relief |  |  | (28.5 | )% |  |  | (10.1 | )% |  |  | (5.3 | )%
Tax exempt income |  |  | (5.1 | )% |  |  | - |  |  |  | - |
Research and development credits |  |  | (230.4 | )% |  |  | (18.0 | )% |  |  | (28.9 | )%
Business Insurance |  |  | 13.7 | % |  |  | 1.5 | % |  |  | 1.3 | %
Late payment interest |  |  | 42.5 | % |  |  | 0.5 | % |  |  | 0.6 | %
Withholding tax |  |  | 9.1 | % |  |  | - |  |  |  | 11.7 | %
Depreciation and Amortization |  |  | 7.5 | % |  |  | 0.4 | % |  |  | (0.2 | )%
Investment gain/loss |  |  | 43.2 | % |  |  | (1.5 | )% |  |  | (0.1 | )%
Statutory income/expense |  |  | (6.1 | )% |  |  | (1.4 | )% |  |  | 1.6 | %
Intercompany transfers |  |  | (24.7 | )% |  |  | 10.8 | % |  |  | 7.5 | %
Deferred tax |  |  | - |  |  |  | - |  |  |  | (0.3 | )%
Change in valuation allowances |  |  | 43.3 | % |  |  | 6.6 | % |  |  | (16.7 | )%
Goodwill Provision |  |  | 69.0 | % |  |  | - |  |  |  | - |
Others |  |  | 5.8 | % |  |  | 0.5 | % |  |  | 0.3 | %
Effective tax rate |  |  | 87.7 | % |  |  | 39.8 | % |  |  | 15.1 | %
Schedule of Provision (Benefit) for Income Tax | The provision (benefit) for income tax consists of the following:
|  | For the years ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current income tax |  | $ | 410,317 |  |  | $ | 2,800,162 |  |  | $ | 1,670,733 |
Deferred income tax |  |  | 264,027 |  |  |  | 245,830 |  |  |  | (413,609 | )
Total provision for income tax expenses |  | $ | 674,344 |  |  | $ | 3,045,992 |  |  | $ | 1,257,124 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the deferred tax assets and liabilities are as follows:
|  | As of June 30, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 996,177 |  |  | $ | 743,898 |
Accrued expenses |  |  | 39,516 |  |  |  | 163,497 |
Lease liability |  |  | 169,375 |  |  |  | - |
Share of investee’s loss |  |  | 27,078 |  |  |  | 129,191 |
Others |  |  | 28,724 |  |  |  | 71,714 |
Valuation allowances |  |  | (1,009,596 | ) |  |  | (781,260 | )
Total deferred tax assets |  | $ | 251,274 |  |  | $ | 327,040 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Right-of-use assets |  | $ | 169,375 |  |  | $ | - |
Intangible assets |  |  | 117,781 |  |  |  | 150,547 |
Share of investee’s income |  |  | 67,601 |  |  |  | - |
Total deferred tax liabilities |  | $ | 354,757 |  |  | $ | 150,547 |
Net deferred tax assets |  |  | 81,899 |  |  |  | 327,040 |
Net deferred tax liabilities |  |  | 185,382 |  |  |  | 150,547 |
Schedule of Unrecognized Tax Benefit | A reconciliation of the beginning and ending amount of unrecognized tax benefit was as follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Balance at July 1 |  | $ | 3,095,554 |  |  | $ | 1,333,608 |  |  | $ | 194,939 |
Increase |  |  | 934,563 |  |  |  | 2,132,154 |  |  |  | 1,139,596 |
Decrease |  |  | (1,386,797 | ) |  |  | (267,622 | ) |  |  | (47,149 | )
Foreign currency translation adjustment |  |  | (201,235 | ) |  |  | (102,586 | ) |  |  | 46,222 |
Balance at June 30 |  | $ | 2,442,085 |  |  | $ | 3,095,554 |  |  | $ | 1,333,608 |
Schedule of Taxes Payable | The Company’s tax payables consist of the following:
|  | As of June 30, |
|  | 2023 |  |  | 2022 |
VAT payable |  | $ | 654,799 |  |  | $ | 693,239 |
Corporate income tax payable |  |  | 417,445 |  |  |  | 462,792 |
Withholding tax payable |  |  | 343,753 |  |  |  | 349,582 |
Disability insurance fund payable |  |  | 1,011,958 |  |  |  | 776,979 |
Other tax payables |  |  | 75,420 |  |  |  | 72,474 |
Total tax payables |  | $ | 2,503,375 |  |  | $ | 2,355,066 |

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 + Details
Name: | us-gaap_SummaryOfPositionsForWhichSignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_TaxesPayableCurrentAndNoncurrentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration