| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Jun. 30, 2023 |
| Significant Accounting Policies [Abstract] | |
| Basis of presentation | Basis of presentation The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements
include the financial statements of E-Home Household Service Holdings Limited and its subsidiaries. All inter-company balances and transactions
have been eliminated upon consolidation. |
| Use of estimates | Use of estimates In
preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date
of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the
valuation of accounts receivable, prepayments, and other receivables, useful lives of property and equipment and intangible assets, the
recoverability of long-lived assets and provision necessary for contingent liabilities. Actual results could differ from those estimates. |
| Cash and cash equivalents | Cash and cash
equivalents Cash
and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity
of three months or less when purchased. The Company considers all highly liquid investment instruments with an original maturity of three
months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances
in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
| Accounts receivable | Accounts receivable Accounts
receivable are recognized and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company
usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends.
The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect
amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision
on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions
whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis.
The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements
of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management
has determined that the likelihood of collection is not probable. As of June 30, 2023 and 2022, the Company determined that all accounts
receivable were collectible and thus the allowance for doubtful accounts were $0 and $0, respectively. |
| Advances to suppliers | Advances
to suppliers Advances
to suppliers refer to advances for purchase of inventories or services, which are applied against accounts payable when the inventories
or services are received. The
Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of
its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would
write off such amount in the period when it is considered as impaired. The allowance for advances to suppliers recognized as of June
30, 2023 and 2022 were $0 and $0, respectively. |
| Prepayments, deposits and other current assets | Prepayments, deposits and other current assets Prepayments, deposits and other current assets
refer to prepaid for marketing fee, receivable from equity transfer, tax receivable and so on. Prepaid marketing fees are amortized during
the contract periods which are within 1 year. The Company reviews a supplier’s credit
history and background information before advancing a payment. If the receivables expected not to be collected, the Company would write
off such amount in the period when it is considered as impaired. The allowance for prepayments, deposits and other current assets recognized
as of June 30, 2023 and 2022 were nil nil |
| Inventories | Inventories Inventories primarily include purchased accessories, appliances and
E-watches for senior care services. Cost of inventories is based on purchase costs. Inventories are stated at the lower of cost or net
realizable value. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion
for work in progress. For the year ended June 30, 2023, the Company recorded impairment provision of inventories for lower of cost or
net realizable value of $119,782. For the years ended June 30, 2022 and 2021, the Company recorded no impairment provision of inventories
for lower of cost or net realizable value, respectively. |
| Property and equipment, net | Property and
equipment, net Property
and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Depreciation
is provided on the straight-line method based on the estimated useful lives of the assets as follows:
Useful
Lives
Buildings and improvements 20 Years
Office and electronic equipment 3 - 5 Years
Motor vehicles 4 - 10 Years
Machinery 5 - 10 Years Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment
which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired
or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other
comprehensive income (loss). |
| Intangible assets, net | Intangible
assets, net Intangible
assets consist of software acquired from third parties, customer relationships, copyrights and trademarks acquired from business combination
and senior care service app developed by the Company. The Company has purchased software from third parties used for operation management
and developed an app for its senior care service. Customer relationships include but are not limited to: (1) customer contracts and related
customer relationships, (2) noncontractual customer relationships, (3) customer lists, and (4) order or production backlog acquired by
the Company from business combination. In accordance with ASC 805-20-55, customer relationships should be recognized separately from
goodwill if it meets either of the following criteria: (1) contractual-legal criterion: the intangible asset arises from contractual
or other legal rights (regardless of whether those rights are transferable or separable from the acquired business or from other rights
and obligations); or (2) separability criterion: the intangible asset is capable of being separated or divided from the acquired business
and sold, transferred, licensed, rented, or exchanged. Intangible
assets with finite lives are carried at cost less accumulated amortization. All intangible assets with finite lives are amortized using
the straight-line method over their estimated useful lives. Software, senior care service app, copyrights, trademarks and customer relationships
are amortized on a straight-line basis over the estimated economic useful lives of five to ten years. |
| Goodwill | Goodwill Goodwill
represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. The
Company assesses goodwill for impairment in accordance with ASC Subtopic 350-20, Intangibles—Goodwill and Other: Goodwill The
Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance
with ASC 350-20. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall
financial performance of the reporting unit, and other specific information related to the operations. If the Company believes, as a
result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying
amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. The quantitative impairment
test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting
unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The
Company performed qualitative and quantitative assessments for the goodwill. Based on the requirements of ASC 350-20, the Company evaluated
all relevant factors including, but not limited to, macroeconomic conditions, industry and market conditions, financial performance,
and the share price of the Company. On
disposal of a portion of reporting unit that constitutes a business, the attributable amount of goodwill is included in the determination
of the amount of gain or loss recognized upon disposal. When the Company disposes of a business within the reporting unit, the amount
of goodwill disposed is measured on the basis of the relative fair value of the business disposed and the portion of the reporting unit
retained. This relative fair value approach is not used when the business to be disposed was not integrated into the reporting unit after
its acquisition, in which case the current carrying amount of the acquired goodwill should be included in the carrying amount of the
business to be disposed. |
| Impairment of long-lived assets other than goodwill | Impairment
of long-lived assets other than goodwill Long-lived
assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not
be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down
to their estimated fair values. The carrying value of a long-lived asset is deemed not recoverable if it exceeds the sum of undiscounted
cash flows expected to result from the use and eventual disposition of the asset. If the asset’s carrying value exceeds the sum
of its undiscounted cash flows, a non-cash asset impairment charges equal to the excess of the asset’s carrying value over its
estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a
liability in an orderly transaction between market participants at a specified measurement date. The Company measures fair value using
market price indicators or, in the absence of such data, appropriate valuation technique. |
| Borrowings | Borrowings Borrowings comprise short-term borrowings. Borrowings
are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference
between the proceeds net of transaction costs and the redemption value is recognized in profit or loss over the period of the borrowings
using the effective interest method. |
| Leases | Leases Leases
are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any
of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term. (b)
the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease
term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments
and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all
of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no
alternative use to the lessor at the end of the lease term. When none of the criteria meets, the lease shall be classified as an operating
lease. For
lessee, a lease is recognized as a right-of-use asset with a corresponding liability at lease commencement date. The lease liability
is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement.
The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced
by any lease incentives received before lease commencement. The right-of-use asset itself is amortized on a straight-line basis unless
another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term. In
February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all
leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance
or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company
adopted ASC 842 effective as of the beginning of the first period presented by using a modified retrospective transition approach in
the accompanying financial statements of the Company. The adoption of this standard had a material impact on the Company’s financial
position, with no material impact on the results of operations and cash flows (see Note 9 and Note 10). |
| Convertible note- cash conversion feature | Convertible
note- cash conversion feature ASC
470, Debt, requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion to
be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. ASC 470-20 requires that
the initial proceeds from the sale of these notes be allocated between a liability component and an equity component in a manner that
reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by the Company at such time.
We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible
debt borrowing rate. The equity components of the convertible senior notes have been reflected within additional paid-in capital in our
consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected
to be outstanding (through the maturity date) as additional non-cash interest expense. |
| Freestanding instruments-warrants | Freestanding
instruments-warrants Per
ASC 470-20-30-2, when detachable warrants (detachable call options) are issued in conjunction with a debt instrument as consideration
in purchase transactions, the amounts attributable to each class of instrument issued shall be determined separately, based on values
at the time of issuance. (1)
The first step in determining the proper accounting for warrants is to determine whether the equity-linked component is free standing
financial instrument of embedded in a host instrument. According to the warrant agreement, the debt and warrant agreements were both
entered into by the parties on December 20, 2021 and May 13, 2022 warrants were issued as part of the subscription agreement with the
note holders. The holder can transfer the warrant to any person or entity in accordance with the warrant agreement as long as there is
a registration statement effective. The warrants can be exercised any time after issuance dates and prior to the expiration date. The
debt can remain outstanding even after the warrants are exercised. Based on the above facts, the warrants should be considered as a freestanding
instrument. (2)
The next step is to determine whether the free-standing instrument is within the scope of ASC 480. The warrants are not within the scope
of ASC 480 because the warrant is not considered a mandatorily redeemable financial instrument. The Company has no obligation to redeem
the shares or settle the obligation by transferring assets. (3)
The last step is to determine if the freestanding instrument should be accounted for as an equity instrument or liability within the
guidance of ASC 815-40. The Company determines the value of the warrants using the Black- Scholes Option Pricing Model (“Black-Scholes”)
using the stock price on the date of issuance, the risk-free interest rate associated with the life of the debt, and the volatility of
the stock. Based
on the above analysis, the Company concluded that the warrant shall be classified as equity and is recorded at fair value. Subsequent
re-measurement is not required. |
| Convertible debt – derivative treatment | Convertible
debt – derivative treatment When
the Company issues debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated
as a derivative, as follows: a) one or more underlying, typically the price of our common stock; b) one or more notional amounts or payment
provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount
borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion
can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated
from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity.
The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in shareholders’ equity in its
statement of financial position. If
the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the
convertible debt derivative upon the date of issuance. If the fair value of the convertible debt derivative is higher than the face value
of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the convertible debt
derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the
debt. The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain
or loss in the statement of operations. The debt discount is amortized through interest expense over the life of the debt. The Company
did not identify any derivative in their convertible notes issued during the reporting period. |
| Fair value of financial instruments | Fair value of financial instruments The fair value of a financial instrument is defined
as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts
of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, prepayments, deposits and other current assets,
accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and
market rates of interest. ASC
820 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the
use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
Level 1 – Quoted prices in active
markets for identical assets and liabilities.
Level 2 – Quoted prices in active
markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly,
for substantially the full term of the financial instrument.
Level 3 – Unobservable inputs that
are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes
certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The
Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents,
accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of June 30, 2023
and 2022 owing to their short-term or immediate nature. |
| Revenue recognition | Revenue recognition The
Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers The
Company generates revenues primarily from installation & maintenance services, housekeeping services, senior care services, sales
of household appliance accessories and sales of E-watches. The Company sells its goods and services through a third-party service provider,
WeChat platform. The Company’s revenues are subject to value added tax (“VAT”). To record VAT payable, the Company
uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to
the supplier). Revenues are recorded net of VAT in accordance with ASC 606. The Company considers revenue realized or realizable
and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations
in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract,
and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The recognition of revenues involves certain management
judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments
or utilized different estimates. Installation&
maintenance Installation
and maintenance services mainly consist of the following services: technical home installation and repair, maintenance and other after
sale services. Revenues from installation and maintenance services are recognized at a point in time once the service is transferred
to the customer. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation
based on its standalone selling price. The Company allocates arrangement consideration in multiple-deliverable revenue arrangements at
the inception of an arrangement to all deliverables based on the relative selling price method, generally based on the best estimate
of selling price. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods
or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is,
the entity is an agent). The Company acts as principal and has contracts with third-party service providers (i.e., service outlets) who
acts as agents. The Company is responsible for market development and providing the customer information to the service provider, directing
the outlet to provide services and coordination with the customer, while the service provider provides the door-to-door service. The
price of services is set by the Company and the service provider is only responsible for collection of payments. When the Company’s
end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through
third-party payment platforms, such as WeChat Pay and Alipay. If the customer is not satisfied with the chosen provider, the service
provider can be re-selected. Regardless of the service provider’s performance, the Company is still liable to complete the orders.
If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the
end customer, the Company will communicate directly with the end customer. The service provider is not obligated to pay the Company.
To minimize our risk, the service provider will remit payment of any outstanding receivables each month. Housekeeping
services Housekeeping
services refer to services including housecleaning, nanny service, maternity matron and personnel staffing. Revenues from housekeeping
are recognized at a point in time upon completion of services to the customer based on the relative selling price method. The Company
considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the
entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company
determines it is a principal and recognizes revenues at the gross amount received for the services. Senior care
services Senior care services refer to services including heart rate test, daily
steps count, location and track record, call for help by Wechat or phone, and other care services rendered to senior customers through
an E-watch, which is given to the customers when they pay the annual fees. The customers sign a contract for the services with our company.
The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and
the revenue of the services provided. Revenues from the E-watch sold are recognized at a point in time once customers receive the E-watch
and the revenues from the services provided are recognized over the service period. We consider whether the nature of its promise is a
performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other
party to provide those goods or services (that is, the entity is an agent). We determine it is a principal and recognizes revenues at
the gross amount received for the services. Disaggregation
of revenue from contracts with customers During
the process of performing the installation and maintenance services, the Company also sells household appliance accessories such as air
conditioner parts to its customers according to the customers’ needs. The Company did not sell these household appliance accessories
separately. The senior care services consist of the sale of E-watch and the care services. The E-watch cannot be sold to the customers
solely without the care services, and the care services should be rendered by the E-watch. Consequently, the Company regards these operating
activities as operating in one material segment, being the revenue of senior care services. Based
on the above discussion, the Company disaggregated sales of household appliance accessories from installation and maintenance revenue
and senior care services revenue into the sales of the E-watch and the care service. Sales of household appliance accessories and E-watches
are recognized in revenue at a point in time while revenue from care service is recognized over a period. Sales of pharmaceutical
products The
Company also generates revenues from sales of pharmaceutical products and devices to its customers in PRC. Under the adoption of ASC
606, the Company recognized revenues in a manner to depict the transfer of goods to a customer at an amount that reflects the
consideration expected to be received in exchange for those goods. The Company considers revenue realized or realizable and earned
when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in
the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the
contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The
Company considers customer purchase orders to be the contracts with a customer. As part of its consideration of the contract, the Company
evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the
promise to transfer products, each of which is distinct, to be the identified performance obligations. The Company considers whether
the nature of its promise is a performance obligation to provide the specified goods itself (that is, the entity is a principal) or to
arrange for the other party to provide those goods (that is, the entity is an agent). The Company determines it is a principal and recognizes
revenues at the gross amount received for the goods. The Company controls the specified good before that good is transferred to its customers
based on the following indicators: (1) the Company is primarily responsible for fulfilling the promise to provide the specified good,
(2) the Company bears the inventory risk before or after (i.e., customer has a right of return) the specified good has been transferred
to a customer, (3) the Company has discretion in setting the price for the specified good. In
determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration
to which the Company expects to be entitled. The Company provide its customers with rights to return the sold goods for several days
after the customers’ acceptance of the goods and can reasonably estimates return provision for the goods. The product return provisions
are estimated based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding
discounts and claims and (3) estimated returns, discounts and claims expected, but not yet finalized with customers. The Company analyzed
historical refund claims for defective products and concluded that they have been immaterial since the Company can return the goods returned
from the customers to its suppliers. Revenues
are reported net of all VAT. As the Company’s standard payment terms are less than one year, the Company has elected the practical
expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction
price to each distinct product based on their relative standalone selling price. Revenue
is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied
at a point in time), which typically occurs at delivery. Prices are determined based on negotiations with the Company’s customers
when signing the contracts and are not subject to adjustment. Educational
consulting services The
Company also generates revenues from providing educational consulting services to its customers. Revenues from educational consulting
services are recognized at a point in time upon completion of services to the customer based on the relative selling price method. The
Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that
is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent).
The Company determines it is a principal and recognizes revenues at the gross amount received for the services. |
| Cost of revenues | Cost of revenues Cost
of revenues consists of service fees paid to staff, outlets, suppliers and the cost of accessories sold. |
| Government subsidies | Government
subsidies Government
subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the
Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies
are recognized when received and all the conditions for their receipt have been met. For
the years ended June 30, 2023, 2022 and 2021, the Company received government subsidies of $86,120, $7,733, and $908,051, respectively.
The grants were recorded as other income in the consolidated financial statements. |
| Income taxes | Income taxes Income
taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries
during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified
as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance
is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred
tax asset will not be realized. |
| Ordinary shares | Ordinary shares The
Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common
shareholders’ equity. Cancellation of treasury stock is recorded as a reduction of ordinary shares, additional paid-in capital
and retained earnings, as applicable. An excess of purchase price over par value is allocated to additional paid-in capital first with
any remaining excess charged entirely to retained earnings. |
| Related parties | Related parties Parties
are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject
to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
| Earnings per share | Earnings per
share The Company computes earnings per share (“EPS”)
in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic
and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted
EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities,
options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary
shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the
calculation of diluted EPS. The potentially dilutive ordinary shares during the fiscal year ended June 30, 2023 was 14,815 shares. There
were no potentially dilutive ordinary shares during the fiscal years ended June 30, 2022 and 2021. |
| Comprehensive income/(loss) | Comprehensive
income/(loss) ASC Topic 220 establishes standards for reporting comprehensive income
and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events
from non-owner sources. For the fiscal years ended June 30, 2023, 2022, and 2021, foreign currency translation gain (loss) adjustments
of $(6,184,172), $(2,243,108) and $3,261,889, respectively, were recognized as a component of accumulated other comprehensive income (loss),
respectively. |
| Foreign Currency | Foreign Currency Foreign currency translation The Company’s principal
country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as
the functional currency. The functional currency of the Company’s Hong Kong-based and the Cayman-based parent is the U.S. dollar.
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange
rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using
the exchange rate prevailing at the consolidated balance sheet date. Non-monetary assets and liabilities are translated using the historical
rate on the date of the transaction. All exchange gains or losses arising from translation of these foreign currency transactions are
included as a separate component of accumulated other comprehensive income (loss). Foreign operations
translation In translating the financial
statements of the Company’s PRC subsidiaries from their functional currency into the Company’s reporting currency of United
States dollars, consolidated balance sheet accounts are translated using the closing exchange rate in effect at the balance sheet date
and income and expense accounts are translated using an average exchange rate prevailing during the reporting period. Adjustments resulting
from the translation, if any, are included in accumulated other comprehensive loss in shareholders’ equity. The Company has not,
to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. The
value of RMB against U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic
conditions. Any significant revaluation of RMB may materially affect the Company’s consolidated financial condition in terms of
U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements:
June
30, June
30, June
30,
Year-end spot rate US$1= 7.2258 RMB US$1= 6.7114 RMB US$1= 6.4601 RMB
Average rate US$1= 6.9890 RMB US$1= 6.4661 RMB US$1= 6.6076 RMB |
| Segment reporting | Segment reporting Operating
segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information
provided regularly to the Company’s most senior executive management for the purposes of allocating resources to, and assessing
the performance of, the Company’s various lines of business and geographical locations. Individually
material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics
and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers,
the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments
which are not individually material may be aggregated if they share a majority of these criteria. The Company’s five segments are
installation & maintenance, housekeeping, senior care services, sales of pharmaceutical products, and educational consulting services.
The Company launched senior care services and started generating revenue from this new segment in August 2019. Segments of sales of pharmaceutical
products and educational consulting services were acquired from business combination during the year ended June 30, 2023. |
| Business combinations | Business
combinations The Company accounts for its business combinations using the purchase
method of accounting in accordance with ASC Topic 805, Business Combinations. The purchase method of accounting requires that the consideration
transferred be allocated to the assets, including separately identifiable assets and liabilities the Company acquired, based on their
estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of
exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations as of the acquisition
date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities
acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling
interests. The excess of (i) the total of cost of acquisition, fair value of the noncontrolling interests and acquisition date fair value
of any previously held equity interests in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded
as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized
directly in earnings. In
a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before
obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in “Others, net”
in the consolidated statements of comprehensive (loss) income. The
determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is
based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables
in these valuations are discount rates, the number of years on which to base the cash flow projections, as well as the assumptions and
estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent
in the related activity’s current business model and industry comparisons. |
| Commitments and contingencies | Commitments
and contingencies The
Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions
may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will
only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment
inherently involves an exercise of judgment. There are no known commitments or contingencies as of June 30, 2023 and 2022. |
| Concentration of risks | Concentration
of risks Exchange rate
risks The
Company’s Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree
of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of June 30, 2023 and 2022, the RMB denominated cash and
cash equivalents amounted to $71,240,361 and $53,946,205, respectively. Currency convertibility
risks Substantially
all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign
exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies
at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of
China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’
invoices, shipping documents and signed contracts. Concentration
of credit risks Financial
instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and
accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company’s maximum exposure.
The Company places its cash and cash equivalents in good credit quality financial institutions in China. |
| Risks and uncertainties | Risks and
uncertainties The
operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations
may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The
Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although
the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations,
including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
| Recent accounting pronouncements | Recent accounting
pronouncements The
Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. In
June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale
debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current
U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses
is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be
collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however
Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding
financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans,
debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other
financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective
for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued
ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842):
Effective Dates, which amended the effective date of ASU 2016-13. The amendments in these ASUs are effective for the Company’s
fiscal years, and interim periods within those fiscal years beginning April 1, 2022. Early adoption is permitted. The Company adopted
this guidance on July 1, 2022 and the adoption of this new guidance had no material impact the Company’s consolidated financial
statements. In
August 2020, the FASB issued Accounting Standards Update (ASU) No. 2020-06, Accounting for Convertible Instruments and Contracts in an
Entity’s Own Equity, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards
while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the
new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and
equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued
at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion
features in equity, and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted”
method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current
accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning
after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the
fiscal year. Early adoption is permitted. The Company adopted this guidance on July 1, 2022 and the adoption of this new guidance had
no material impact the Company’s consolidated financial statements. In
October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities
from Contracts with Customers”, which provides guidance on the acquirer’s accounting for acquired revenue contracts with
customers in a business combination. The amendments require an acquirer recognizes and measures contract assets and contract liabilities
acquired in a business combination at the acquisition date in accordance with ASC 606 as if it had originated the contracts. This guidance
also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities
from revenue contracts in a business combination. The new guidance is required to be applied prospectively to business combinations occurring
on or after the date of adoption. This guidance is effective for the Company for the year ending March 31, 2024 and interim reporting
periods during the year ending March 31, 2024. Early adoption is permitted. The Company does not expect that the adoption of this guidance
will have a material impact on the financial position, results of operations and cash flows. In June 2022, the FASB issued ASU 2022-03, “Fair
Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies
that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security
and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account,
recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to
contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the
amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for the year ending
March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. The Company does not
expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. The
Company does not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a material
effect on the Company’s consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows. |
