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Concentrations and Litigation | 9 Months Ended
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Mar. 31, 2022
Risks and Uncertainties [Abstract] |
CONCENTRATIONS AND LITIGATION | NOTE 14 – CONCENTRATIONS AND LITIGATION Market Concentration All the Company’s revenue-generating operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation. Vendor and Customer Concentration There were six vendors from which the Company purchased more than 10% of its raw materials, with the total of 66.4% of its raw materials for the nine months ended March 31, 2022. Total purchase from these vendors were $75,165,338 for the nine-month period ended March 31, 2021. There was only one vendor from which the Company purchased more than 10% of its raw materials, with the total of 11.2% of its raw materials for the nine months ended March 31, 2021. Total purchase from this vendor was $13,506,092 for the nine-month period ended March 31, 2021. There was only one customer counted over 10% of the Company’s sales, with the total of 10.1% of the Company’s sales for the nine months ended March 31, 2022. Total sale to this customer was $13,345,924 for the nine-month period ended March 31, 2021. No customer accounted for over 10% of the Company’s sales for the nine months ended March 31, 2021. Litigation On June 5, 2020, an individual filed suit pro se (as in, representing oneself without an attorney) in the Southern District of Florida federal court alleging violations of the Securities Exchange Act. The Company believes the action is without merit and vigorously opposed it. The company moved to dismiss the litigation and for attorney’s fees from the plaintiff. On November 2, 2020, the case was transferred to the United States District Court for The Southern District Of New York. On September 30, 2021, the Southern District of New York federal court presiding over the case dismissed all claims against the company, its executives, and its independent directors. The dismissal was without prejudice and the plaintiff can appeal or amend within 30 days. The plaintiff amended the complaint on Oct 30, 2021. The Company intends to move to dismiss it.

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI https://asc.fasb.org/topic&trid=2134479 + Details
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