XML 31 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
SHAREHOLDERS' EQUITY
9 Months Ended
Mar. 31, 2017
Equity [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
NOTE 12 – SHAREHOLDERS’ EQUITY
 
Initial Public Offering
 
On September 28, 2016, the Company completed its initial public offering of 1,713,190 shares of common stock at a price of $4.50 per share for gross proceeds of $7.7 million and net proceeds of approximately $5.4 million. The Company’s common shares began trading on September 28, 2016 on the NASDAQ Capital Market under the symbol “TYHT”.
 
Stock Incentive Plan
 
On September 23, 2016, the Board of Directors of the Company approved a stock incentive plan (“Plan”). Pursuant to the Plan, the Company plans to file a registration statement on Form S-8, as soon as practicable, to register up to 2,103,407 of the Company’s shares of common stock. As of the date of this report, the Company has not issued any options to purchase the Company's shares of common stock and the Company has not filed the Form S-8 registration statement.
 
Statutory Reserve
 
The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”).
 
Appropriations to the statutory surplus reserve is required to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. As of March 31, 2017 and June 30, 2016, the balance of the statutory reserve was $3,410,064 and $3,242,139, respectively.