| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial
statements are prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company,
its subsidiaries, the VIE, and subsidiaries of the VIE. All inter-company transactions and balances have been eliminated upon consolidation. (b) Use of estimates The preparation of the consolidated
financial statements in conformity with U.S. GAAP requires to make 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 revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives
of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets.
Actual results could differ from those estimates. (c) Going Concern and Management’s
Plan The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern. The Company incurred operating loss of
$24.42 million and generated negative operating cash flows of $5.96 million for fiscal year ended June 30, 2023. The Company has developed plans and implemented measures to address the going concern issue. The Company’s management is diligently
overseeing its operating costs and capital needs, and is fully dedicated to exploring new customer and business opportunities In fiscal
years 2022 and 2023, the Company's management has taken significant steps to control and reduce expenses. These measures include implementing
more rigorous approval processes for various expenditures, establishing new performance appraisal standards, terminating underperforming
employees, eliminating certain positions, and renegotiating contracts with specific vendors. In addition, the Company has dissolved unprofitable
subsidiaries to curtail operating losses and cash depletion. Notably, the Company secured a $200 million financing facility in November
2022. Simultaneously, the company will continue to pursue and secure bank loans to support its ongoing operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations. These
conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not
include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications
of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to
obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. (d) Fair value measurements The Company applies ASC Topic 820,
Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands financial
statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value
as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date
in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy
of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy
is as follows: Level 1 inputs to the valuation methodology
are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology
include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability,
either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology
are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s
own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible
for considering the carrying amount of cash, accounts receivable, advance to suppliers, prepaid expenses and other current assets, short-term
bank loans, accounts payable, deferred revenue, taxes payable, and accrued liabilities and other payables based on the short-term maturity
of these instruments to approximate their fair values because of their short-term nature. (e) Cash Cash consists of cash on hand and
cash in banks. The Company maintains cash with various financial institutions in China. As of June 30, 2022 and 2023, cash balances
were $14,396,032 and $2,751,309, respectively. The Company has not experienced any losses in bank accounts and believes it is not
exposed to any risks on its cash in bank accounts. (f) Accounts receivable, net Accounts receivables are stated at
the historical carrying amount net of allowance for expected credit losses. The Company adopted ASU No. 2016-13, “Financial
Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” on January 1,
2021 using a modified retrospective approach. The Company also adopted this guidance to notes receivable, advance to suppliers, other
receivables and long-term prepayments. To estimate expected credit losses, the Company has identified the relevant risk characteristics
of its customers and the related receivables. The Company considers the past collection experience, current economic conditions, future
economic conditions (external data and macroeconomic factors) and changes in the Company’s customer collection trends. The allowance
for credit losses and corresponding receivables were written off when they are determined to be uncollectible. (g) Advance to suppliers Advance to suppliers primarily consists
of the prepayments to the service and materials suppliers for the Company’s event hosting, planning, and execution. The Company
maintains an allowance for doubtful accounts to state prepayments at their estimated realizable value based on a variety of factors,
including the possibility of releasing the prepayments into services and materials, significant one-time events, and historical experience. (h) Property and equipment, net Property and equipment comprise office
building, equipment, and motor vehicles. They are recorded at cost less accumulated depreciation and depreciated on a straight-line basis
over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the
asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized.
When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains
or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows:
Estimated Useful Life
Building 20 Years
Office equipment 3 to 5 Years
Motor vehicles 10 Years
Leasehold improvement Shorter of useful life or lease term (i) Intangible asset, net Intangible asset is stated at cost
less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset
are expected to be consumed or otherwise used up. The balance of intangible asset represents a software that the Company purchased externally
and is amortized straight-line over 10 years in accordance with the way the Company estimates to generate economic benefits
from such software. (j) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded the impairment charge of nil nil
(k) Right-of-use assets The Company has 5 operating lease for
office, including an option to renew which is not at the Company’s sole discretion. The renewal to extend the lease term is not
included in the Company’s right-of-use (“ROU”) assets and lease liability as they are not reasonably certain of exercise.
The Company regularly evaluates the renewal option, and, when it is reasonably certain of exercise, the Company will include the renewal
period in its lease term. New lease modifications result in re-measurement of the ROU assets and lease liability. The Company’s
lease agreement does not contain any material residual value guarantees or material restrictive covenants. Effective July 1, 2017, the Company
adopted ASC 842, Leases using a modified retrospective transition method. In addition, the Company elected the package of practical expedients,
which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification
as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use
hindsight to determine the lease term for its leases at transition. Adoption of ASC 842 resulted in the recording of operating lease
ROU assets and corresponding operating lease liability as disclosed in “Note 13—Lease” and had no impact on accumulated
profit as of July 1, 2017. ROU assets and related lease obligation are recognized at commencement date based on the present value of
remaining lease payments over the lease term. The Company’s lease is classified
as operating lease for the office space. Operating lease ROU assets are presented within non-current assets on the consolidated balance
sheet and the operating lease liability is classified as current and non-current on the consolidated balance sheet. (l) Value added tax (“VAT”) The Company’s affiliated entities
in the PRC, including WFOE, Pop Culture, and subsidiaries of Pop Culture, are subject to PRC VAT for providing services. The applicable
VAT rate for these companies was 6% for the fiscal years ended June 30, 2023, 2022, and 2021.
The amount of VAT liability is determined
by applying the applicable tax rates to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the
relevant supporting invoices (input VAT). The Company reports revenue net of PRC VAT for all the periods presented in the consolidated
statements of operations.
(m) Operating lease liability Lease where substantially all the
reward and risk of ownership of asset remain with the leasing company is accounted for as operating lease. Payments made under operating
leases are charged to the consolidated statements of operations on a straight-line basis over the lease period. (n) Revenue recognition On July 1, 2017, the Company adopted
ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. The adoption of ASC 606 did not have a material
impact on the Company’s consolidated financial statements. ASC
606 establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising
from the Company’s contracts to provide services to customers. The core principle of ASC 606 is that a company should recognize
revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company
expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step
1: Identify the contract with the customer; Step
2: Identify the performance obligations in the contract; Step
3: Determine the transaction price; Step
4: Allocate the transaction price to the performance obligations in the contract; and Step
5: Recognize revenue when the company satisfies a performance obligation. The
Company mainly generates revenue from event hosting, event planning and execution, and brand promotion, and other services. Event
hosting - Event
planning and execution - Brand
promotion - Other
services The
Company accounts for a contract of event hosting, event planning and execution, or brand promotion when it has legally enforceable rights
and obligations and collectability of consideration is probable. Each contract typically contains one single performance obligation,
which is to deliver a successful event, activity, qualified online program or video, or brand solution, and the contract price is fixed.
Contract terms typically include a customary requirement for payment within 180 days after the Company successfully provides services,
which is indicated by the customer’s signed acknowledgement of completion on such event, activity, online program, or brand solution
by providing the Company with completion confirmation forms. For
event hosting, event planning and execution, and brand promotion, revenue is recognized at a point of time when services are successfully
provided (e.g., upon successful carryout of an event), which is indicated by the customer’s acknowledgement of completion on such
event, activity, online program or video, or brand solution, as the customer neither simultaneously receives and consumes the benefits
provided by the Company’s performance nor controls an increasingly enhanced asset or an asset with an alternative use to the customer
as the Company performs. Event hosting, event planning and execution, and brand promotion projects are generally short term, which usually
take less than three months. For
digital collections, the PRC operating entities sell digital collections through its own digital collection sales platform. After the
customer purchases the digital collection issued on the platform and the digital collection is delivered to the customer, the revenue
is recognized. For
music recording service, revenue is recognized at a point of time when services are successfully provided which is indicated by the customer’s
acknowledgement of completion on the recording. For
SaaS software services, revenue is recognized after the completion of the service provision. The PRC operating entities reach an annual
framework service contract with the customer and charge a one-time service fee. Revenue is recognized on a monthly average basis within
the service period. For
distribution of advertisements, the Company satisfies its performance obligation over time by measuring the progress based on time elapsed,
as the customer simultaneously receives and consumes the benefit of service provided, during the period of time when the advertisement
is displayed. Payment is usually required within 180 days after the completion of distribution. The
Company reports revenue on a gross basis for event hosting, event planning and execution, brand promotion, and other services (except
for advertisement distribution), as the Company takes risk and control of the event, activities, online program, or brand solution before
they are transferred to customers. While in terms of advertisement distribution, the Company reports revenue on a net basis since it
only arranges the distribution of advertisements, instead of taking the risk and control of the distribution resources. The
Company applies a practical expedient to make no adjustment for the promised amount of consideration for the effects of a significant
financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised service
to a customer and when the customer pays for that service will be one year or less. The
following table identifies the disaggregation of the Company’s revenue for the fiscal years ended June 30, 2023, 2022, and 2021
respectively:
For the fiscal years ended June 30,
2023 2022 2021
Revenue from operations:
Event hosting $ 4,348,303 $ 14,711,787 $ 14,978,643
Brand promotion 9,650,274 8,733,764 750,315
Event planning and execution 4,132,477 8,420,328 9,196,773
Other services 412,189 415,664 600,826
Total revenue $ 18,543,243 $ 32,281,543 $ 25,526,557 Deferred
revenue The
Company presents the consideration that a customer pays before the Company transfers a service to the customer as a contract liability
(deferred revenue) when the payment is made. Deferred revenue is the Company’s obligation to transfer services to a customer for
which the Company has received consideration from the customer. As of June 30, 2022 and 2023, the balance of deferred revenue amounted
to $47,710 and $393,003, respectively, and the movement of deferred revenue was as below.
Amount
June 30, 2020 $ 1,764,608
Addition 8,070,036
Recognized as revenue within the fiscal year ended June 30, 2021 (8,185,797 )
June 30, 2021 1,648,847
Addition 47,710
Recognized as revenue within the fiscal year ended June 30, 2022 (1,648,847 )
June 30, 2022 47,710
Addition 393,003
Recognized as revenue within the fiscal year ended June 30, 2023 (47,710 )
June 30, 2023 $ 393,003 The
Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization
period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the
Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. (o)
Cost of revenue Cost
of revenue consists primarily of event design costs, online program production costs, salary and benefits expenses, materials costs,
and other related expenses. (p) Selling and marketing expenses All
expenses related to selling and marketing are expensed as incurred. For the fiscal years ended June 30, 2021, 2022, and 2023, selling
and marketing costs amounted to $133,387, $380,723, and $4,646,875, respectively.
For the fiscal years ended June 30, 2021, 2022, and 2023, advertising expenses amounted to $51,170, $48,716, and $1,518,981, respectively. (q)
Income taxes The
Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those 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 including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets
to the amount expected to be realized. The
provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for
consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This
interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred
income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The
Company does not believe that there was any uncertain tax position as of June 30, 2022 and 2023. The Company’s affiliated entities
in the PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the
statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the
withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment
of taxes is more than RMB100,000 (approximately $14,381). In the case of transfer pricing issues, the statute of limitation is 10 years.
There is no statute of limitation in the case of tax evasion. As of June 30, 2023, the tax years ended December 31, 2017 through
December 31, 2022 for the Company’s affiliated entities in the PRC remain open for statutory examination by PRC tax authorities. (r)
Foreign currency translation The
reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s affiliated entities
located in China is the Renminbi (“RMB”). For the entities whose functional currency is RMB, results of operations and cash
flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate
at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities
reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets.
Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in determining
comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange
rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional
currency at the exchange rates prevailing at the balance sheet date with any 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. The
consolidated balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at RMB7.2513 to $1.00 and
at RMB6.6981 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to
consolidated statements of operations and cash flows for the fiscal years ended June 30, 2023, 2022, and 2021 were RMB6.9534 to $1.00,
RMB6.4554 to $1.00, and RMB6.6228 to $1.00, respectively. (s)
Earnings per share The
Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”).
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 common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect
on a per share basis of potential common shares (for example, convertible securities, options and warrants) as if they had been converted
at the beginning of the periods presented, or issuance date, if later. The Company had no dilutive securities as of and for the
fiscal years ended June 30, 2021, 2022, and 2023. (t)
Comprehensive income Comprehensive
income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting
from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated
statements of income and comprehensive income. (u)
Commitments and contingencies In
the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business,
which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred
and the amount of the assessment can be reasonably estimated. If
the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be
estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially
material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the
contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss
contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee
would be disclosed. (v)
Concentration and credit risk 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 require submitting a payment application form together with suppliers’ invoices, shipping
documents, and signed contracts. The Company maintains certain bank
accounts in the PRC, where under the Deposit Insurance System in China, Hong Kong, and Cayman Islands. In China, a company’s deposits
at one bank are insured for a maximum of RMB500,000 in the event of bank failure. According to press release of China Securities
Times and China News on July 13, 2023, Hong Kong Monetary Authority proposed that the upper limit of deposit protection in Hong Kong be
enhanced to HK$800,000 from HK$500,000. In Cayman Islands, deposits are not insured by Federal Deposit Insurance Corporation (“FDIC”)
insurance or other insurance. As of June 30, 2022 and 2023, $5,281,823 and $724,437 of the Company’s cash were on deposit
at financial institutions in the PRC, respectively, and $9,113,548 and $2,026,858 of the Company’s cash were on deposit
at financial institutions in Hong Kong, respectively. Accounts
receivable are typically unsecured and derived from revenue earned from customers, thereby exposed 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’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenue and accounts
receivable with specific customers. For the fiscal year ended June 30, 2021, three major customers accounted for approximately 23%, 12%,
and 8% of the Company’s total revenue, respectively. For the fiscal year ended June 30, 2022, three major customers accounted
for approximately 30%, 13%, and 7% of the Company’s total revenue, respectively. For the fiscal year ended June
30, 2023, three major customers accounted for approximately 10%, 10%, and 9% of the Company’s total revenue, respectively.
As of June 30, 2022, the top five customers accounted for 72% of net accounts receivable as of June 30, 2022, with each customer
representing 35%, 14%, 9%, 7%, and 7% of the net accounts receivable balance, respectively. As of
June 30, 2023, the top five customers accounted for 68% of net accounts receivable as of June 30, 2023, with each customer representing 31%, 19%, 7%, 6%,
and 5% of the net accounts receivable balance, respectively. For
the fiscal year ended June 30, 2023, the Company purchased approximately 16.56%, 12.91%, and 10.61% of its services
from three major suppliers, respectively. For the fiscal year ended June 30, 2022, the Company purchased approximately 8.59%, 7.88%,
and 5.63% of its services from three major suppliers, respectively. For the fiscal year ended June 30, 2021, the Company
purchased approximately 14%, 13%, and 12% of its services from three major suppliers, respectively. (w)
Segment reporting The
Company uses the management approach to determine operating segments. The management approach considers the internal organization and
reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources,
and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results
when making decisions about allocating resources and assessing performance of the Company. The
Company’s CODM reviews the consolidated financial results 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 operates and manages its business as a
single segment. As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s
revenue is derived from within the PRC, no geographical segments are presented. (x)
Related parties Parties
are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are
controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management, and other parties with which the Company may
deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one
of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related
party transactions in “Note 11—Related Party Transactions.” (y)
Non-controlling interests A
non-controlling interest in the VIE represents the portion of the equity (net assets) in the VIE that has not been pledged to WFOE, consequently
not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on
the consolidated balance sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests
respectively. On
February 9, 2021, the Company issued 1,065,089 Class
A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture.
See “Note 14—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which
WFOE is entitled to 100% of the net income of Pop Culture. Upon this transaction, the Company consummated the acquisition of non-controlling
interest in Pop Culture. On August 18, 2020, Pop Sikai was incorporated, 49%
of which represented a non-controlling interest. Pop Sikai was dissolved and deregistered on June 27, 2023. Since Pop Sikai had no profit
or loss during the fiscal year ended June 30, 2023, no net income or net loss was allocated to non-controlling interest. On May 18, 2022, Fujian
Shuzhi was incorporate. As of June 30, 2023, Fuzhou Xinsiyu Culture Communication Co., Ltd., an unrelated third party, holds 49% of the
equity interests in this entity. (z)
Recent accounting pronouncements In
June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology
with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU
is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For
all other entities including emerging growth companies, the ASU is effective for fiscal years beginning after December 15, 2020, and
interim periods within fiscal years beginning after December 15, 2021. Early application is permitted for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2018. The Company has adopted ASU 2016-13 since July 1, 2021, the impact of which
on the Company’s consolidated financial statements was immaterial. Recently
issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated
results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require
adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company
does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial |
