UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of May 2024
Commission File Number
(Translation of registrant’s name into English)
People’s Republic of
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
EXPLANATORY NOTE
E-Home Household Service Holdings Limited (the “Company”) is furnishing this Form 6-K to provide the unaudited consolidated financial statements for the six months ended December 31, 2023 and 2022 and Operating and Financial Review and Prospects in Connection with the Interim Consolidated Financial Statements for the six months ended December 31, 2023, attached hereto as Exhibits 99.1 and 99.2. This Form 6-K is hereby incorporated by reference into the registration statements of the Company on Form F-3 (Registration No. 333-259464) and Form S-8 (Registration No. 333-273374) to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
FORWARD-LOOKING INFORMATION
This Report on Form 6-K contains forward-looking statements and information relating to us that are based on the current beliefs, expectations, assumptions, estimates and projections of our management regarding our company and industry. When used in this report, the words “may”, “will”, “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and similar expressions, as they relate to us or our management, are intended to identify forward-looking statements. These statements reflect management’s current view of us concerning future events and are subject to certain risks, uncertainties and assumptions, including among many others: significant legal and operational risks associated with having substantially all of our business operations in China, the Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time, which could result in a material change in our operations and/or the value of the securities or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and could cause the value of such securities to significantly decline or be worthless. Our securities may be prohibited to list on the stock exchanges in the U.S. under the Holding Foreign Companies Accountable Act if the PCAOB subsequently determines our audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely. We also face risks of the changes in domestic and foreign laws, regulations and taxes, uncertainties related to China’s legal system and economic, political and social events in China, volatility of the securities markets, and other risks including, but not limited to, those that we discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 20-F as well as in our other reports filed or furnished from time to time with the SEC. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
All forward-looking statements included herein attributable to us or other parties or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except to the extent required by applicable laws and regulations, we undertake no obligations to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.
1
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Unaudited Interim Consolidated Financial Statements as of December 31, 2023 and for the six months ended December 31, 2023 and 2022 | |
| 99.2 | Operating and Financial Review and Prospects in Connection with the Interim Consolidated Financial Statements for the six months ended December 31, 2023 | |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 1, 2024
| E-Home Household Service Holdings Limited | ||
| By: | /s/ Wenshan Xie | |
| Name: | Wenshan Xie | |
| Title: | Chief Executive Officer | |
3
Exhibit 99.1
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
AS OF DECEMBER 31, 2023 AND JUNE 30, 2023
AND
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023 AND 2022
F-1
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
F-2
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2023 (UNAUDITED) AND JUNE 30, 2023
(IN U.S. DOLLARS, EXCEPT FOR NUMBER OF SHARES DATA)
| December 31, 2023 (Unaudited) | June 30, 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable | ||||||||
| Advances to suppliers | ||||||||
| Inventories | ||||||||
| Prepayment, receivables and other current assets | ||||||||
| Due from related parties | ||||||||
| Total current assets | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Intangible assets, net | ||||||||
| Operating lease - right-of-use assets, net | ||||||||
| Finance lease - right-of-use assets, net | ||||||||
| Long-term deposits and other non-current assets | ||||||||
| Total Non-current assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | $ | ||||||
| Advances from customers | ||||||||
| Current maturities of operating lease liabilities | ||||||||
| Current maturities of finance lease liabilities | ||||||||
| Due to related parites | ||||||||
| Short-term loan | ||||||||
| Total current liabilities | ||||||||
| Non-current liabilities | ||||||||
| Long-term portion of operating lease liabilities | ||||||||
| Long-term portion of finance lease liabilities | ||||||||
| Convertible note | ||||||||
| Deferred tax liabilities, net | ||||||||
| Total non-current liabilities | ||||||||
| TOTAL LIABILITIES | ||||||||
| Commitments and contingencies | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Ordinary shares, $ | ||||||||
| Additional paid-in capital | ||||||||
| Statutory reserve | ||||||||
| Accumulate deficits | ( | ) | ( | ) | ||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Total equity attributable to shareholders | ||||||||
| Non-controlling interest | ||||||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | ||||||
| * |
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-3
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE INCOME (LOSS)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023 AND 2022
(IN U.S. DOLLARS, EXCEPT SHARES DATA)
(UNAUDITED)
| For the six months ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenues | ||||||||
| Installation and maintenance | $ | $ | ||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Total revenues | ||||||||
| Cost of revenues | ||||||||
| Installation and maintenance | ||||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Total cost of revenues | ||||||||
| Gross profit | ||||||||
| Operating expenses | ||||||||
| Sales and marketing expenses | ||||||||
| General and administrative expenses | ||||||||
| Total operating expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Other income (expenses), net | ||||||||
| Interest income | ||||||||
| Interest expenses | ( | ) | ( | ) | ||||
| Amortization of financing cost | ( | ) | ( | ) | ||||
| Fair value loss – financial instruments | ( | ) | ||||||
| Other income, net | ||||||||
| Total other expenses, net | ( | ) | ( | ) | ||||
| Loss before income taxes | ( | ) | ( | ) | ||||
| Income tax expense | ( | ) | ||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Including: | ||||||||
| Net loss attributable to the Company’s shareholders | ( | ) | ( | ) | ||||
| Net loss attributable to non-controlling interests | ( | ) | ( | ) | ||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment, net of nil tax | ( | ) | ||||||
| Total comprehensive loss | $ | ( | ) | $ | ( | ) | ||
| ( | ) | ( | ) | |||||
| * |
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-4
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023 AND 2022
(IN U.S. DOLLARS, EXCEPT SHARES DATA)
(UNAUDITED)
| Number of Shares* | Ordinary Shares | Additional paid-in capital | Statutory reserve | Retained earnings (Accumulated loss) | Accumulated other comprehensive income (loss) | Equity attributable to the Company’s shareholders | Non-controlling interest | Total equity | ||||||||||||||||||||||||||||
| Balance as of June 30, 2022 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||
| Net loss | - | - | - | ( | ) | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Acquisition of | ||||||||||||||||||||||||||||||||||||
| Acquisition of | - | |||||||||||||||||||||||||||||||||||
| Acquisition of | ||||||||||||||||||||||||||||||||||||
| Shares issued to investors | ||||||||||||||||||||||||||||||||||||
| Shares issued under equity incentive plan | ||||||||||||||||||||||||||||||||||||
| Shares issued for conversion of convertible notes | ||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2022 | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||||||
| Balance as of June 30, 2023 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||||
| Net loss | - | - | - | ( | ) | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | |||||||||||||||||||||||||||||||||
| Shares issued to investors | ||||||||||||||||||||||||||||||||||||
| Shares issued under equity incentive plan | ||||||||||||||||||||||||||||||||||||
| Shares issued for conversion of convertible notes | ||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||||||
| * |
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-5
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023 AND 2022
(IN U.S. DOLLARS)
(UNAUDITED)
| For the six months ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Cash provided by operating activities | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Deferred tax benefit | ( | ) | ||||||
| Interest expense | ||||||||
| Depreciation and amortization | ||||||||
| Amortization of right-of-use assets | ||||||||
| Convertible note - Amortization of financing cost | ||||||||
| Equity incentive plan | ||||||||
Written-off of property, plant and equipment | ||||||||
| Fair value loss – financial instruments | ||||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivables | ( | ) | ||||||
| Advance to suppliers | ||||||||
| Inventories | ( | ) | ||||||
| Prepayment, receivables and other current assets | ( | ) | ||||||
| Long-term deposits and other non-current assets | ( | ) | ||||||
| Accounts payable and accrued expenses | ( | ) | ||||||
| Advance from customers | ( | ) | ||||||
| Taxes payable | ( | ) | ||||||
| Operating lease liabilities | ( | ) | ( | ) | ||||
| Net cash provided by operating activities | ||||||||
| Investing Activities | ||||||||
| Purchases of property, plant and equipment | ( | ) | ||||||
| Purchases of intangible assets | ( | ) | ||||||
| Due from related parties | ( | ) | ( | ) | ||||
| Loan receivables | ( | ) | ||||||
| Refund for potential acquisitions | ||||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Financing Activities | ||||||||
| Proceeds from stock issuance | ||||||||
| Proceeds from short-term loan | ||||||||
| Payment of financial leases | ( | ) | ||||||
| Repayment convertible note | ( | ) | ||||||
| Due to related parties | ||||||||
| Net cash provided by financing activities | ||||||||
| Net increase in cash and cash equivalents | ||||||||
| Effects of currency translation | ( | ) | ||||||
| Cash and cash equivalents at beginning of period | ||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURES | ||||||||
| Income taxes paid | $ | $ | ||||||
| Interest paid | $ | $ | ||||||
| Non-cash transactions | ||||||||
| Issuance of shares for acquisition of | $ | |||||||
| Issuance of shares for acquisition of | $ | |||||||
| Issuance of shares for convertible note principal and interest settlement | $ | |||||||
| Issuance of shares to directors and consultants | $ | |||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-6
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS
E-Home Household Service Holdings Limited (the “Company”) was incorporated as a limited company under the law of Cayman Islands on September 24, 2018. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries. The Company and its subsidiaries are hereinafter collectively referred to as “the Company”. The Company is principally engaged in the operation of household services, e.g. installation and maintenance of home appliances, housekeeping and senior care in the People’s Republic of China (the “PRC”) through on-line APP platform or call center. As described below, the Company, through a series of transactions which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries. Accordingly, these condensed consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented.
Reorganization
In preparation of its initial public offering in the United States (“IPO”), the following transactions were undertaken to reorganize the legal structure of the Company. The reorganization involved (i) the incorporation of the Company in the Cayman Islands as a holding company; (ii) the establishment of E-Home Household Service Holdings Limited (“E-Home Hong Kong”) as a wholly-owned subsidiary in Hong Kong, PRC; (iii) the establishment of E-Home Household Service Technology Co., Ltd. (“WOFE”), as a wholly-owned subsidiary of E-Home Hong Kong in Fujian, PRC; (iv) the entry by WFOE into contractual arrangements with Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (“E-Home Pingtan”) and Fuzhou Bangchang Technology Co. Ltd. (“Fuzhou Bangchang”) and their shareholders. The Company, E-Home Hong Kong and WFOE are all holding companies and had not commenced operation until this reorganization was complete. A reorganization of the Company’s legal structure was completed in February 2019.
As all the entities involved in the process of the Reorganization are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interest with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts.
Dissolution of the Company’s variable interest entity structure
On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, the company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company.
Equity transfer agreements
Acquisition of non-controlling interest in HAPPY
On August 10, 2021,
| In USD | ||||
| Purchase consideration | ||||
| Noncontrolling interests | ( | ) | ||
| Additional paid-in capital | ||||
F-7
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Reverse stock split
On September 8, 2022, the Company’s board
of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares with the market effective on September 23,
2022, such that the par value of each ordinary share is increased from US$
On April 12, 2023, the Company announced the effect
of a one-for-ten reverse stock split of its ordinary shares approved by the Company’s Annual General Meeting of Shareholders with
the market effective on April 13, 2023, such that the par value of each ordinary share is increased from US$
On September 22, 2023, the Company announced the
effect of a one-for-ten reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders
with the market effective on September 25, 2023, such that the par value of each ordinary share is increased from US$
On February 9, 2024, the Company announced the
effect of a one-for-five reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders
with the market effective on February 14, 2024, such that the par value of each ordinary share is increased from US$
The number of ordinary shares outstanding as of December 31, 2023 and June 30, 2023, and for the six months ended December 31, 2023 and 2022 were retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024.
| Name | Date of Incorporation | Place of Organization |
% of Ownership |
|||||
| E-Home Household Service Holdings Limited | % | |||||||
| E-Home Household Service Technology Co., Ltd. | % | |||||||
| Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. | % | |||||||
| Fuzhou Bangchang Technology Co. Ltd. | % | |||||||
| Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”) | % | |||||||
| Fujian Happiness Yijia Family Service Co., Ltd. | % | |||||||
| Yaxing Human Resource Management (Pingtan)Co., Ltd. | % | |||||||
| Fuzhou Gulou Jiajiale Family Service Co. Ltd. | % | |||||||
| Yaxin Human Resource Management (Fuzhou) Co., Ltd. | % | |||||||
| Zhongrun (Fujian) Pharmaceutical Co., Ltd. (“Zhongrun”) | % | |||||||
| Fujian Chuangying Business School Co., Ltd. (“Chuangying”) | % | |||||||
The accompanying condensed consolidated financial statements include the financial statements of the Company and its subsidiaries.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
Interim financial statements
These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“US GAAP”) for interim financial information and with the instructions to Form 6-K and Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended June 30, 2023 and notes thereto and other pertinent information contained in our Form 20-F the Company has filed with the Securities and Exchange Commission (the “SEC”) on November 6, 2023. The results of operations for the six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2024.
F-8
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Basis of presentation
The accompanying condensed 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
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, plant and equipment and intangible assets, the recoverability of long-lived assets and goodwill, and provision necessary for contingent liabilities. Actual results could differ from those estimates.
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 are recognized and carried at 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 operations and other comprehensive income (loss). 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 December 31, 2023 and June 30, 2023, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $ and $, respectively.
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 December 31, 2023 and June 30, 2023 were $ and $, respectively.
Prepayments, receivables and other current assets
Prepayments, receivables 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 December 31, 2023 and June 30, 2023 were $ and $, respectively.
Inventories
Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs and is determined by the weighted-average method. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost and other costs related to selling the inventories. For the six months ended December 31, 2023 and 2022, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively.
F-9
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Property, plant and equipment, net
Property, plant and equipment are stated at cost
less accumulated depreciation. Maintenance and repairs are charged to expense as incurred.
| Useful Lives | ||
| Buildings and improvements | ||
| Office and electronic equipment | ||
| Motor vehicles | ||
| Machinery |
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) in other income or expenses.
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 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 (“ASC 350-20”), which requires that goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20.
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.
F-10
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 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 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
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
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.
F-11
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(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
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
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, time deposits, accounts receivable, prepaid expenses 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. |
F-12
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 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, advances to suppliers, prepayment, receivables and other current assets, due from related parties, loan receivables, accounts payable and advances from customers to approximate the fair value of the respective assets and liabilities as of December 31, 2023 and June 30, 2023 owing to their short-term or immediate nature.
Revenue recognition
The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers (ASC 606) beginning January 1, 2018 and elected to adopt ASC 606 under the modified retrospective method. This guidance was applied retrospectively to the most current period presented in the Company’s consolidated financial statements. The adoption of ASC 606 did not have a material impact on the consolidated financial statements of the Company.
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.
The Company does not have amounts of contract
assets since revenue is recognized as control of goods or services is transferred. The contract liabilities consist of advance payments
from customers. The contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period.
All contract liabilities are included in advance from customers in the condensed consolidated balance sheets. As of December 31, 2023
and June 30, 2023, the Company record advance from customers of $
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.
F-13
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 to its customers, which are mainly pharmaceutical stores 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.
F-14
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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
Cost of revenues
Cost of revenues consists of service fees paid to staff, outlets, suppliers and the cost of products sold.
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 six months ended December 31, 2023 and
2022, the Company received government subsidies of $ and $
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
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
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.
F-15
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 for the six months ended December 31, 2023 was
Comprehensive income (loss)
Comprehensive income (loss) is defined as the change in equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income (loss) is reported in the consolidated statements of operations and other comprehensive income. Accumulated other comprehensive income (loss), as presented on the accompanying consolidated balance sheets, consists of accumulated foreign currency translation adjustments.
Foreign currency translation
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 income (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.
| December 31, 2023 |
June 30, 2023 |
December 31, 2022 |
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| Year-end spot rate | US$1= |
US$1= |
US$1= |
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| Average rate | US$1= |
US$1= |
US$1= |
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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.
F-16
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 in July 2023.
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 to 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 income (loss).
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
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 December 31, 2023 and June 30, 2023.
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 December 31, 2023 and June 30, 2023, the RMB denominated cash and cash equivalents amounted to $
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.
F-17
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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
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
The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.
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.
In July 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 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 September 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The Board is issuing the amendments in this Update to enhance the transparency and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The Board decided that the amendments should be effective for public business entities for annual periods beginning after December 15, 2024. 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 operations and other comprehensive income (loss) and statements of cash flows.
F-18
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 – BUSINESS COMBINATIONS
For the year ended June 30, 2023, the Company
completed several business combinations with total purchase consideration in aggregate was $
Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions.
The valuations used in the purchase price allocation were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of pre-existing equity interests and debt investment or noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flows, (c) equity multiples or enterprise value multiples of companies in the same industries and (d) adjustment for lack of control or lack of marketability.
Acquisition of
| In USD | ||||
| Fair value of total consideration transferred: | ||||
| Equity instrument ( | ||||
| Cash consideration | ||||
| Total consideration | ||||
| Recognized amounts of identifiable assets acquired and liability assumed: | ||||
| Intangible assets - customer relationships | ||||
| Deferred tax liabilities | ( | ) | ||
| Total identifiable net assets | ||||
| Fair value of non-controlling interest | ||||
| Goodwill | ||||
| Impairment loss | ( | ) | ||
| Goodwill, net | ||||
Acquisition of
| In USD | ||||
| Fair value of total consideration transferred: | ||||
| Equity instrument ( | ||||
| Total consideration | ||||
| Recognized amounts of identifiable assets acquired and liability assumed: | ||||
| Intangible assets - customer relationships | ||||
| Intangible assets - copyrights and trademarks | ||||
| Deferred tax liabilities | ( | ) | ||
| Total identifiable net assets | ||||
| Fair value of non-controlling interest | ||||
| Goodwill | ||||
| Impairment loss | ( | ) | ||
| Goodwill, net | ||||
F-19
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 – ACCOUNTS RECEIVABLE
| December 31, 2023 | June 30, 2023 | |||||||
| Accounts receivable | $ | $ | ||||||
The Company recorded no allowance for doubtful accounts
as of December 31, 2023 and June 30, 2023. The Company gives its customers credit period of 30 days to 1 year and continually assesses
the recoverability of uncollected accounts receivable. As of December 31, 2023 and June 30, 2023, the balances of the Company’s
accounts receivable were all due within credit periods. Until April 30, 2024, the Company collected accounts receivable of $
NOTE 5 – PREPAYMENT, RECEIVABLES AND OTHER CURRENT ASSETS
| December 31, 2023 | June 30, 2023 | |||||||
| Prepaid for marketing fee* | $ | $ | ||||||
| Receivable from equity transfer** | ||||||||
| Tax receivable | ||||||||
| Other prepaid expenses and current assets | ||||||||
| Total prepayments, receivables and other current assets | $ | $ | ||||||
| * |
| Six months ended December 31, 2023 | Year ended June 30, 2023 | |||||||
| Beginning balance | $ | $ | ||||||
| Marketing fees paid | ||||||||
| Amortization of marketing fees | ( | ) | ( | ) | ||||
| Foreign exchange difference | ( | ) | ||||||
| Ending balance | $ | $ | ||||||
| ** |
F-20
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET
| December 31, 2023 | June 30, 2023 | |||||||
| Building and improvements | $ | $ | ||||||
| Motor vehicles | ||||||||
| Office and electronic equipment | ||||||||
| Machinery | ||||||||
| Total property, plant and equipment, at cost | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Property, plant and equipment, net | $ | $ | ||||||
As of December 31, 2023 and June 30, 2023, there
were not any pledged property, plant or equipment. The Company recorded depreciation expenses of $
For the six months ended December 31, 2023 and
2022, the Company purchased property, plant and equipment of $ and $
For the six months ended December 31, 2023, the Company
wrote off office and electronic equipment and machinery of $
NOTE 8 – INTANGIBLE ASSETS, NET
| December 31, 2023 | June 30, 2023 | |||||||
| Customer relationships | $ | $ | ||||||
| Copyrights and trademarks | ||||||||
| Software | ||||||||
| Senior care service app | ||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| Less: impairment loss | ( | ) | ( | ) | ||||
| Intangible assets, net | $ | $ | ||||||
On June 14, 2022 and December 20, 2022,
Based on the valuations report from independent
third-party valuation firms used in the purchase price allocation, the Company recorded customer relationships of $
F-21
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On July 30, 2022, the Company’s board of
directors approved to acquire
Based on the valuations report from independent
third-party valuation firms used in the purchase price allocation, the Company recorded customer relationships of $
As of December 31, 2023 and June 30, 2023, there
were no any pledged intangible assets to secure bank loans. The Company recorded amortization expense of $
| Years ending December 31, | Amortization expense | |||
| 2024 | $ | |||
| $ | ||||
NOTE 10 – OPERATING LEASE RIGHT-OF-USE ASSETS, NET
| June 30, 2023 | Increase/ (Decrease) | Exchange rate translation | December 31, 2023 | |||||||||||||
| Shou Hill Valley Area | $ | $ | $ | $ | ||||||||||||
| Villas | ||||||||||||||||
| Farmland* | ||||||||||||||||
| Warehouse** | ||||||||||||||||
| Base Station Tower | ||||||||||||||||
| Total right-of-use assets, at cost | ||||||||||||||||
| Less: accumulated lease expense | ( | ) | ( | ) | ( | ) | ||||||||||
| Operating lease right-of-use assets, net | $ | $ | ( | ) | $ | $ | ||||||||||
| * |
| ** |
The Company recognized lease expense for the operating
lease right-of-use assets Shou Hill Valley Area and Villas over the lease periods which are
For the six months ended December 31, 2023, amortization
of the operating lease right-of-use assets amounted to $
F-22
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11 – FINANCE LEASE RIGHT-OF-USE ASSETS, NET
| June 30, 2023 | Increase/ (Decrease) | Exchange rate translation | December 31, 2023 | |||||||||||||
| Company vehicles | $ | $ | ( | ) | $ | $ | ||||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||||||||||
| Finance lease right-of-use assets, net | $ | $ | ( | ) | $ | $ | ||||||||||
On July 1, 2023, the Company terminated the lease
agreement of vehicles with the lease. The finance lease right-of-use asset is amortized over a
NOTE 12 – LONG-TERM DEPOSITS AND OTHER NON-CURRENT ASSETS
| December 31, 2023 | June 30, 2023 | |||||||
| Deposits paid for land use right* | $ | $ | ||||||
| Performance deposits** | ||||||||
| Deposits paid for lease assets | ||||||||
| Total | $ | $ | ||||||
| * |
| ** |
NOTE 13 – GOODWILL
For the year ended June 30, 2023, the Company
completed several business combinations with total purchase consideration in aggregate was $
Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions.
The valuations used in the purchase price allocation were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of pre-existing equity interests and debt investment or noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flows, (c) equity multiples or enterprise value multiples of companies in the same industries and (d) adjustment for lack of control or lack of marketability.
The purchase prices allocation to the assets acquired and liabilities assumed based on their fair values were included in Note 3. Business Combinations.
NOTE 14 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES
| December 31, 2023 | June 30, 2023 | |||||||
| Payable to suppliers | $ | $ | ||||||
| Salary and welfare payables | ||||||||
| Accrued expenses and other current liabilities | ||||||||
| Total | ||||||||
F-23
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15 – ADVANCES FROM CUSTOMERS
| December 31, 2023 | June 30, 2023 | |||||||
| Senior care services | $ | $ | ||||||
| Housekeeping services | ||||||||
| Total | $ | $ | ||||||
E-Home received annual fees from senior care services
customers and recognized revenues over the contract period. The amounts advanced from customers from senior care services were $
NOTE 16 – OPERATING LEASE LIABILITIES
| December 31, 2023 | June 30, 2023 | |||||||
| Villas* | $ | $ | ||||||
| Warehouse** | ||||||||
| Base Station Tower*** | ||||||||
| Total operating lease liabilities | $ | $ | ||||||
| December 31, 2023 | June 30, 2023 | |||||||
| Long-term portion of operating lease liabilities | $ | $ | ||||||
| Current maturities of operating lease liabilities | ||||||||
| Total | $ | $ | ||||||
The operating lease liabilities is the net present value of the remaining lease payments as of December 31, 2023 and June 30, 2023.
The discount rates used for the Villas, Base Station
Tower, and Warehouse were
The Company recorded no operating lease liability
for the operating lease of Shou Hill Valley Area as of December 31, 2023 and June 30, 2023, respectively, since the Company prepaid the
total lease expense of $
For the six months ended December 31, 2023 and
2022, the operating lease costs were $
| * |
| ** |
| *** |
F-24
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Operating lease payment | Villas | Base station tower | Warehouse | Total undiscounted cash flows | ||||||||||||
| Discount rate at commencement | % | % | % | |||||||||||||
| One year | $ | $ | $ | $ | ||||||||||||
| Two years | ||||||||||||||||
| Three years | ||||||||||||||||
| Four years | ||||||||||||||||
| Five years | ||||||||||||||||
| Beyond five years | ||||||||||||||||
| Total undiscounted cash flows | $ | $ | $ | $ | ||||||||||||
| Total financing lease liabilities | ||||||||||||||||
| Difference between undiscounted cash flows and discounted cash flows | ||||||||||||||||
| Operating lease payment | Villas | Base station tower | Warehouse | Total undiscounted cash flows | ||||||||||||
| Discount rate at commencement | % | % | % | |||||||||||||
| One year | $ | - | $ | $ | $ | |||||||||||
| Two years | ||||||||||||||||
| Three years | ||||||||||||||||
| Four years | ||||||||||||||||
| Five years | ||||||||||||||||
| Beyond five years | ||||||||||||||||
| Total undiscounted cash flows | $ | $ | $ | $ | ||||||||||||
| Total operating lease liabilities | ||||||||||||||||
| Difference between undiscounted cash flows and discounted cash flows | ||||||||||||||||
NOTE 17 – FINANCE LEASE LIABILITIES
| June 30, 2023 | Increase/ (Decrease) | Payment | Exchange rate translation | December 31, 2023 | ||||||||||||||||
| Company vehicles | $ | $ | ( | ) | $ | $ | $ | |||||||||||||
| Add: unrecognized finance expense | ( | ) | ||||||||||||||||||
| Total financing lease liabilities | $ | $ | ( | ) | $ | $ | $ | |||||||||||||
| December 31, 2023 | June 30, 2023 | |||||||
| Long-term portion of finance lease liabilities | $ | - | $ | |||||
| Current maturities of finance lease liabilities | - | |||||||
| Total | $ | - | $ | |||||
The lease agreement was entered into on September
11, 2017, bears interest at about
For the six months ended December 31, 2023 and
2022, the amortization expense of financial lease right-of-use assets were $ and $
There were no future financial lease liabilities as of December 31, 2023.
F-25
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Financial lease payments | Company vehicles | |||
| Discount rate at commencement | % | |||
| One year | $ | |||
| Two years | ||||
| Three years | ||||
| Four years | ||||
| Five years | ||||
| Beyond five years | ||||
| Total undiscounted cash flows | $ | |||
| Total financing lease liabilities | ||||
| Difference between undiscounted cash flows and discounted cash flows | ||||
NOTE 18 – CONVERTIBLE NOTE
The Convertible Note 2021
On December 20, 2021, the Company entered into
a Securities Purchase Agreement with an institutional investor pursuant to which the Company issued an unsecured convertible promissory
note with a two-year maturity (the “Convertible Note 2021”) to Investor. The Convertible Note 2021 has the original principal
amount of $
Material Terms of the Convertible Note 2021:
| ● | Interest
accrues on the outstanding balance of the Convertible Note at |
| ● | Upon
the occurrence of a Trigger Event, Investor may increase the outstanding balance payable under the Convertible Note by |
| ● | Investor
may convert all or any part of the outstanding balance of the Convertible Note, at any time after six months from the issue date, into
ordinary shares of the Company at a price equal to |
| ● | Joseph
Stone Capital, LLC (“JSC”) acted as the exclusive placement agent in connection with the offering. The Company agreed to
pay JSC a cash fee equal to |
| ● | Lender
has the right at any time after the date that is six (6) months from the Purchase Price Date until the Outstanding Balance has been paid
in full, at its election, to convert (“Conversion”) all or any portion of the Outstanding Balance into fully paid and non-assessable
Ordinary Shares, par value $ |
F-26
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In accounting for the issuance of the Convertible
Note 2021, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component
of the Convertible Note 2021 and the warrants was $
For the year ended June 30, 2022, the Company
issued
For the year ended June 30, 2023, the Company
issued
For the six months ended December 31, 2023, the
Company issued
The Convertible Note 2021 was fully repaid and converted on November 10, 2023.
The Convertible Note 2022
On May 13, 2022, the Company entered into a Securities
Purchase Agreement with an institutional investor pursuant to which the Company issued an unsecured convertible promissory note with a
two-year maturity (the “Convertible Note 2022”) to Investor. The Convertible Note 2022 has the original principal amount of
$
Material Terms of the Convertible Note 2022:
| ● | Interest
accrues on the outstanding balance of the Convertible Note at |
| ● | Upon
the occurrence of a Trigger Event, Investor may increase the outstanding balance payable under the Convertible Note by |
| ● | Investor
may convert all or any part of the outstanding balance of the Convertible Note, at any time after six months from the issue date, into
ordinary shares of the Company at a price equal to |
| ● | Joseph
Stone Capital, LLC (“JSC”) acted as the exclusive placement agent in connection with the offering. The Company agreed to
pay JSC a cash fee equal to |
| ● | Lender
has the right at any time after the date that is six (6) months from the Purchase Price Date until the Outstanding Balance has been paid
in full, at its election, to convert (“Conversion”) all or any portion of the Outstanding Balance into fully paid and non-assessable
Ordinary Shares, par value $ |
F-27
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In accounting for the issuance of the Convertible
Note 2022, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component
of the Convertible Note and the warrants was $
Debt issuance costs related to the original Convertible
Note 2022 comprised of commissions paid to third party placement agent and lawyers of $426,095 which includes original issue discount
of $
For the six months ended December 31, 2023, the
Company issued
| Principal outstanding | Unamortized issuance cost | Net carrying value | ||||||||||
| Convertible Note 2021 | ||||||||||||
| Convertible Note 2022 | ( | ) | ||||||||||
| Convertible Notes - liability portion | $ | ( | ) | $ | ||||||||
| Amount allocated to conversion option | Issuance cost | Equity component, net | ||||||||||
| Convertible Note 2021 | $ | $ | ( | ) | $ | |||||||
| Convertible Note 2022 | ( | ) | ||||||||||
| Convertible Note – equity portion | $ | ( | ) | $ | ||||||||
| Issuance costs and debt discount | Convertible note interest | Total | ||||||||||
| Convertible Note 2021 | ||||||||||||
| Convertible Note 2022 | ||||||||||||
| Convertible Note | $ | $ | ||||||||||
F-28
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Principal outstanding | Unamortized issuance cost | Net carrying value | ||||||||||
| Convertible Note 2021 | $ | $ | ( | ) | $ | |||||||
| Convertible Note 2022 | ( | ) | ||||||||||
| Convertible Notes - liability portion | $ | $ | ( | ) | $ | |||||||
| Amount allocated to conversion option | Issuance cost | Equity component, net | ||||||||||
| Convertible Note 2021 | $ | $ | ( | ) | $ | |||||||
| Convertible Note 2022 | ( | ) | ||||||||||
| Convertible Notes – equity portion | $ | $ | ( | ) | $ | |||||||
| Issuance costs and debt discount | Convertible note interest | Total | ||||||||||
| Convertible Note 2021 | $ | $ | $ | |||||||||
| Convertible Note 2022 | ||||||||||||
| Convertible Notes | $ | $ | $ | |||||||||
The effective interest rates to derive the liability
component fair value were
F-29
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 19 - Warrants
On December 20, 2021 and May 13, 2022, the Company
issued warrants to settle the commission of the agent in connection with the issuance of the convertible notes during the year ended June
30, 2022. The warrants entitle the holder to purchase
As of December 31, 2023 and June 30, 2022, the
Company had approximately
The 2021 warrants were valued using the Black-Scholes
value option pricing model with the following inputs: volatility of
The 2022 warrants were valued using the Black-Scholes
value option pricing model with the following inputs: volatility of
NOTE 20 – TAXES
The Company is registered in the Cayman Islands. The Company generated substantially all of its income from its PRC operations for the six months ended December 31, 2023 and 2022.
Cayman Islands
Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.
Hong Kong
E-Home Hong Kong is not subject to tax on income or capital gain since there has no operations in Hong Kong for the six months ended December 31, 2023 and 2022.
F-30
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
PRC
Income Tax
On March 16, 2007, the National People’s
Congress of PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”)
and domestic companies would be subject to enterprise income tax (“EIT”) at a uniform rate of
| For six months ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Current income tax provision | $ | $ | ||||||
| Deferred income tax provision | ( | ) | ||||||
| Total | $ | $ | ||||||
| For six months ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Provision for income taxes at statutory tax rate in the PRC | $ | $ | ||||||
| Effect of expense for which no income tax is deductible | ||||||||
| Effect of assets recognized at fair value in business combinations | ( | ) | ||||||
| Effective income tax expense | $ | $ | ||||||
| December 31, 2023 | June 30, 2023 | |||||||
| Deferred tax assets | ||||||||
| Advanced from customers | $ | |||||||
| Total deferred tax assets | ||||||||
| Allowance for deferred tax assets | ( | ) | ( | ) | ||||
| Deferred tax assets, net | ||||||||
| December 31, 2023 | June 30, 2023 | |||||||
| Deferred tax liabilities | ||||||||
| Business combinations | $ | |||||||
| Total deferred tax liabilities | ||||||||
Value Added Tax (“VAT”)
Business tax changed to VAT in China since May
1, 2016. The Company’s revenue from installation is subject to a VAT rate of
According to the regulations (Fiscal and Tax [2016] 36), no VAT will be levied if an enterprise provides employee-based household services. E-Home Pingtan applied for the tax exemption in July 2017 and was approved by the State Administration of Taxation (China), so the VAT rate of installation, maintenance, after-sales and cleaning service is since July 2017.
F-31
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Taxes payable
As of December 31, 2023 and June 30, 2023, the Company’s has taxes payable balances of $ and $, respectively.
NOTE 21 – EQUITY
Ordinary Shares
At the reorganization event described in Note
1, the Company issued
Prior to the reorganization, the Company had $
The reorganization has been accounted for at historical
cost and prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the
accompanying financial statements of the Company. On May 23, 2019, the Company split its
On May 18, 2021, the Company completed the closing
of its initial public offering of
On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, the company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company.
On June 21, 2021, the Company granted
On January 20, 2022, the Company and E-Home Pingtan
entered into an equity transfer agreement to acquire
On January 20, 2022, the Company and E-Home Pingtan
entered into an equity transfer agreement to acquire
On March 18, 2022, the Company granted
On June 14, 2022, the Company and its wholly owned
subsidiary, E-Home Hong Kong, entered into an equity transfer agreement with Zhongrun, a limited liability company established in China
and Ms. Ling Chen, the sole shareholder of Zhongrun, pursuant to which Ms. Chen agreed to transfer
F-32
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On July 30, 2022, the Company’s board of directors
approved to acquire
On August 15, 2022, the Company’s board of directors
approved the financing by the Company in the amount of $
On September 19, 2022, the Company’s board of
directors approved for issuance and sale of the Company’s ordinary shares up to an aggregate offering price of US$
On November 18, 2022, the Company entered into
a securities purchase agreement with certain investors, pursuant to which each of the investors agreed to purchase and the Company agreed
to issue and sell to the investors, an aggregation of
On December 20, 2022, the Company and its wholly
owned subsidiary, E-Home Hong Kong, entered into an equity transfer agreement with Zhongrun, a limited liability company established in
China and Ms. Ling Chen, pursuant to which Ms. Chen agreed to transfer
On January 6, 2023, the Company entered into a
securities purchase agreement with eleven investors, including two entities and nine individuals, pursuant to which the investors agreed
to purchase an aggregate of
On January 27, 2023, the Company entered into
a securities purchase agreement with certain investors, pursuant to which each of the investors agreed to purchase and the Company agreed
to issue and sell to the investors an aggregate of
F-33
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On May 15, 2023, the Board approved and adopted
the Company’s 2023 Share Incentive Plan which has
Reverse stock split
On September 8, 2022, the Company’s board
of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares with the market effective on September 23,
2022, such that the par value of each ordinary share is increased from US$
On April 12, 2023, the Company announced the effect
of a one-for-ten reverse stock split of its ordinary shares approved by the Company’s Annual General Meeting of Shareholders with
the market effective on April 13, 2023, such that the par value of each ordinary share is increased from US$
On September 22, 2023, the Company announced the
effect of a one-for ten reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders
with the market effective on September 25, 2023, such that the par value of each ordinary share is increased from US$
On February 9, 2024, the Company announced the
effect of a one-for-five reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders
with the market effective on February 14, 2024, such that the par value of each ordinary share is increased from US$
Statutory Reserve
The Company is required to make appropriations
to certain reserve funds, comprising the statutory surplus reserve and the 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 are required to be at least
Dividends
Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with US GAAP. The Company’s ability to pay dividends is primarily from cash received from its operating activities in PRC. For the six months ended December 31, 2023 and 2022, there was no Company dividend declared.
F-34
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 22 – REVENUES
| For six months ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Installation and maintenance | $ | $ | ||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of E-watch | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Total | $ | $ | ||||||
NOTE 23 – SEGMENT INFORMATION
Operating segments are reported in a manner consistent
with the internal reporting provided to the management for decision making. Management has identified
| For the six months ended December 31, | ||||||||
| Revenues | 2023 | 2022 | ||||||
| Installation and maintenance | $ | $ | ||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Total | $ | $ | ||||||
| For the six months ended December 31, | ||||||||
| Gross Profit | 2023 | 2022 | ||||||
| Installation and maintenance | $ | $ | ||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Total | $ | $ | ||||||
F-35
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Current Assets | December 31, 2023 | June 30, 2023 | ||||||
| Installation and maintenance | $ | $ | ||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Unallocated current assets | ||||||||
| Total | $ | $ | ||||||
| Non-current Assets | December 31, 2023 | June 30, 2023 | ||||||
| Installation and maintenance | $ | $ | ||||||
| Housekeeping | ||||||||
| Senior care services | ||||||||
| Sales of pharmaceutical products | ||||||||
| Educational consulting services | ||||||||
| Unallocated non-current assets | ||||||||
| Total | $ | $ | ||||||
On account of the Company’s business model, assets, operating expense, profit or loss, liabilities and other material items could not be separated into each operating segment. As the Company’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented.
NOTE 24 – COMMITMENTS AND CONTINGENCIES
| Future Lease Payments | Operating Lease | |||
| January 2024 to December 2024 | $ | |||
| January 2025 to December 2025 | ||||
| January 2026 to December 2026 | ||||
| January 2027 to December 2027 | ||||
| January 2027 to December 2027 | ||||
| Thereafter | ||||
| Total | $ | |||
F-36
E-HOME HOUSEHOLD SERVICE HOLDINGS LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 25 – CUSTOMER AND SUPPLIER CONCENTRATION
Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchase.
The Company’s sales are made to customers that are located primarily in China. For the six months ended December 31, 2023 and 2022, no individual customer or supplier accounted for more than 10% of the Company’s total revenues or purchase. As of December 31, 2023 and June 30, 2023, no individual customer or supplier accounted for more than 10% of the total outstanding accounts receivable or accounts payable balance.
NOTE 26 – RELATED PARTY BALANCES AND TRANSACTIONS
As of December 31, 2023 and June 30, 2023, the
Company had $
For the six months ended December 31, 2023, Mr.
Xie made payment of $
As of December 31, 2023 and June 30, 2023, the
Company had $
For the six months ended December 31, 2023, the
Company transferred $
NOTE 27 – SUBSEQUENT EVENTS
On January 9, 2024, the
Compensation Committee of the Board of Directors of the Company granted a stock award of
On January 11, 2024, the Company entered into a Securities Purchase
Agreement with certain purchasers, pursuant to which the Company agreed to sell to the purchasers in a private placement
On March 21, 2024, the Company entered into a
Securities Purchase Agreement with certain purchasers. Pursuant to the purchase agreement, the Company will sell to the purchasers in
a registered direct offering, an aggregate of
Reverse stock split
On February 9, 2024, the Company announced the
effect of a one-for-five reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders
with the market effective on February 14, 2024, such that the par value of each ordinary share is increased from US$
In accordance with ASC 855-10, the Company has analyzed its operations subsequent to December 31, 2023 to the date these financial statements were issued, and has determined that, it does not have any material subsequent events to disclose in these financial statements.
F-37
Exhibit 99.2
OPERATING AND FINANCIAL REVIEW AND PROSPECTS IN CONNECTION WITH THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2023
The following discussion and analysis of our results of operations and financial condition should be read together with our unaudited condensed consolidated financial statements and the notes thereto and other financial information, which are included elsewhere in this Form 6-K. Our unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In addition, our unaudited financial statements and the financial information included in this Form 6-K reflect our organizational transactions and have been prepared as if our current corporate structure had been in place throughout the relevant periods.
This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those identified elsewhere in this report on Form 6-K, and those listed in our Annual Report on Form 20-F for the fiscal year ended June 30, 2023 filed with the Securities and Exchange Commission (the “2023 Form 20- F”) under “Item 3. Key Information-D. Risk Factors” or in other parts of the 2023 Form 20-F.
Unless otherwise indicated or the context requires otherwise, “we”, “us” or the “Company” in this prospectus are to E-Home Household Service Holdings Limited and its subsidiaries in the context of describing our business, operations and consolidated financial information.
Overview
We are a household service company based in Fuzhou, China. We provide integrated household services through our website and WeChat platform, “e家快服”, across 21 provinces in China. Currently, these services primarily include home appliance services (mainly installation and maintenance services of home appliance) and housekeeping services. For our installation and maintenance services, we partner with individuals and service stores which provide the technicians to deliver the on-site services. For our housekeeping services, we primarily partner with individual service providers who serve as independent contractors. We have partnerships with more than 1,800 individuals and service stores providing these services in China. We currently have more than 2,800 cleaners and nannies in our network providing our housekeeping and care services. Our online platform integrates these offline service providers, which helps them to gain a larger customer base, and provides professional and reliable one-stop household services to our customers.
In July 2015, we successfully transitioned from an outsourcing after-market service provider of home appliances and building materials to an operator of home appliance services (mainly installation and maintenance of home appliance). In January 2018, we officially became an integrated household service provider after expanding our service portfolio from distribution, installation, repair and maintenance of home appliances to delivery, installation, repair and maintenance of home appliances, home-moving, house cleaning, nanny and maternity matron. We have also launched and are actively promoting our senior care services. We plan to further expand our business to include smart community services, as well as sales of smart home supplementary merchandise. We currently have approximately 532 employees to support our operations.
We also generate revenues from sales of pharmaceutical products to our customers, which are mainly pharmaceutical stores in PRC, and from providing educational consulting services to our customers through our subsidiaries acquired during the fiscal year ended June 30, 2023.
Due to the fundamental economic weakness in China, our overall revenue decreased by 30.7% to approximately $26.95 million for the six months ended December 31, 2023, as compared to approximately $38.88 million for the six months ended December 31, 2022. Our revenue from installation and maintenance services decreased by 37.7% to approximately $15.15 million for the six months ended December 31, 2023, as compared to $24.30 million for the six months ended December 31, 2022. Our revenue from housekeeping services decreased by 12.8% to approximately $7.84 million for the six months ended December 31, 2022, as compared to $8.99 million for the six months ended December 31, 2022. We generated approximately $2.81 million of revenue from our senior care services for the six months ended December 31, 2023, representing a decrease of 21.0% as compared to $3.56 million for the six months ended December 31, 2022. For the six months ended December 31, 2023, we also generated revenues from sales of pharmaceutical products and educational consulting services of approximately $0.19 million and $0.96 million, respectively. For the six months ended December 31, 2022, we generated revenues from sales of pharmaceutical products and educational consulting services of approximately $1.38 million and $0.65 million, respectively.
For the six months ended December 31, 2023, we had a net loss of approximately $5.19 million, representing an increase in net loss of approximately $1.88 million compared with net loss of approximately $3.32 million for the six months ended December 31, 2022.
Principal Factors Affecting Our Financial Performance
Our operating results are primarily affected by the following factors:
| ● | growth in the Chinese economy; |
| ● | industry demand; |
| ● | contract pricing and terms; |
| ● | competition in the home appliance services and in-home care and other household services industries; |
| ● | strategic acquisitions and investments; |
| ● | changes to government policies; |
| ● | market conditions and our market position; and |
| ● | our ability to broaden service offerings and diversify our customer base. |
Taxation
Cayman Islands
We are incorporated in the Cayman Islands. The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is currently no estate duty, inheritance tax or gift tax. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or after execution brought within the jurisdiction of the Cayman Islands. The Cayman Islands is not party to any double tax treaties that are applicable to any payments made to or by our company. There are no exchange control regulations or currency restrictions in the Cayman Islands.
Payments of dividends and capital in respect of the shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our ordinary shares, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax.
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Hong Kong
Our subsidiary incorporated in Hong Kong is subject to Hong Kong profit tax at a rate of 16.5%. No Hong Kong profit tax has been levied as we did not have assessable profit that was earned in or derived from our Hong Kong subsidiary during the periods presented. Hong Kong does not impose a withholding tax on dividends.
PRC
Enterprise Income Tax
Generally, our PRC subsidiaries, which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. If our holding company in the Cayman Islands or any of our subsidiaries outside the PRC is considered as a PRC resident enterprise for tax purposes, then our global income will be subject to PRC enterprise income tax at the rate of 25%. See “Risk Factors—Risks Related to Doing Business in China— We may be treated as a resident enterprise for PRC tax purposes under the PRC Enterprise Income Tax Law, and we may therefore be subject to PRC income tax on our global income.”
Value Added Tax
Our revenue from installation services is subject to a value added tax, or VAT, rate of 11% and our revenue from maintenance services and sales of goods was subject to a VAT rate of 17% prior to May 1, 2018, which was subsequently reduced to 16%.
According to PRC regulations, no VAT will be levied if an enterprise provides employee-based household services. E-Home Pingtan applied for the tax exemption in July 2017 and was approved by the PRC State Administration of Taxation, so the VAT rate for installation, maintenance, after-sales and cleaning service is 0% since July 2017.
Withholding Tax on Dividends
Dividends paid by E-Home Household Service Technology Co., Ltd. (“E-Home WFOE”) to our intermediary holding company in Hong Kong will be subject to a withholding tax rate of 10%, unless the relevant Hong Kong entity satisfies all the requirements under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and receives approval from the relevant tax authority. If our Hong Kong subsidiary satisfies the requirements under the tax arrangement and receives approval from the relevant tax authority, then the dividends paid to the Hong Kong subsidiary would be subject to withholding tax at a reduced tax rate of 5%.
Our Reportable Segments
As of December 31, 2023, our operations are organized into five reportable segments: installation and maintenance services, housekeeping services, senior care services, sales of pharmaceutical products and educational consulting services. Operating segments are reported in a manner consistent with the internal reporting provided to management for decision making. These operating segments are monitored and strategic decisions are made on the basis of segmental profit margins.
Critical Accounting Policies
The preparation of consolidated financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The SEC has defined a company’s critical accounting policies as the ones that are most important to the portrayal of our financial condition and results of operations, and which require us to make our most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, we have identified the critical accounting policies and judgments addressed below. We also have other key accounting policies, which involve the use of estimates, judgments and assumptions that are significant to understanding our results. Although we believe that our estimates, assumptions and judgments are reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates under different assumptions, judgments or conditions.
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Basis of consolidation
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
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.
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. We 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. The adoption of this standard had a material impact on our financial position, with no material impact on the results of operations and cash flows.
4
Convertible note, net
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 us 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 audited 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.
Revenue recognition
We adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers (ASC 606) beginning January 1, 2018 and elected to adopt ASC 606 under the modified retrospective method. This guidance was applied retrospectively to the most current period presented in our consolidated financial statements. The adoption of ASC 606 did not have a material impact on the consolidated financial statements of our company.
We generate revenues primarily from installation & maintenance services, housekeeping services, senior care services, sales of household appliance accessories and sales of E-watches. We sell our goods and services through a third-party service provider WeChat platform. Our revenues are subject to value added tax (“VAT”). To record VAT payable, we use 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 the ASC 606. We consider 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 consisting 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. We allocate 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. 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 act as principal and has contracts with third-party service providers (i.e., service outlets) who acts as agents. We are 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 our company and the service provider is only responsible for collection of payments. When our 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, we are 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, we will communicate directly with the end customer. The service provider is not obligated to pay our company. To minimize our risk, the service provider will remit payment of any outstanding receivables each month.
5
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. 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.
Senior care services
Senior care services refer to services including BP, 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, we also sell household appliance accessories such as air conditioner parts to its customers according to the customers’ needs. We 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, we regard these operating activities as operating in one material segment, being the revenue of senior care services.
Based on the above discussion, we 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
We also generate revenues from sales of pharmaceutical products to its customers, which are mainly pharmaceutical stores in PRC. Under the adoption of ASC 606, we 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. We consider 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.
We consider customer purchase orders to be the contracts with a customer. As part of its consideration of the contract, we evaluate certain factors including the customer’s ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, to be the identified performance obligations. We consider 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). We determine it is a principal and recognizes revenues at the gross amount received for the goods. We control the specified good before that good is transferred to its customers based on the following indicators: (1) we are primarily responsible for fulfilling the promise to provide the specified good, (2) we bear the inventory risk before or after (i.e., customer has a right of return) the specified good has been transferred to a customer, (3) we have discretion in setting the price for the specified good.
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In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We 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. We analyzed historical refund claims for defective products and concluded that they have been immaterial since we can return the goods returned from the customers to our suppliers.
Revenues are reported net of all VAT. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. We allocate 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 our performance obligation is satisfied at a point in time), which typically occurs at delivery. Prices are determined based on negotiations with our customers when signing the contracts and are not subject to adjustment.
Educational consulting services
We also generate 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. We consider whether the nature of our 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.
Recent Accounting Pronouncements
We consider the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.
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 our 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. We adopted this guidance on July 1, 2022 and the adoption of this new guidance had no material impact our consolidated financial statements.
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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 our company for the year ending March 31, 2024 and interim reporting periods during the year ending March 31, 2024. Early adoption is permitted. We do 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 our company for the year ending March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. We do not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows.
We do not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a material effect on our consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows.
Results of Operations
Comparison of Six Months Ended December 31, 2023 and 2022
The following table shows key components of our results of operations during the six months ended December 31, 2023 and 2022, in dollars and as a percentage of our total revenues.
| Six months Ended December 31, 2023 | Six months Ended December 31, 2022 | |||||||||||||||
| Amount | % of Revenues | Amount | % of Revenues | |||||||||||||
| Revenues | ||||||||||||||||
| Installation and maintenance services | $ | 15,151,510 | 56.2 | $ | 24,301,679 | 62.5 | ||||||||||
| Housekeeping services | 7,836,579 | 29.1 | 8,990,258 | 23.1 | ||||||||||||
| Senior care services | 2,811,223 | 10.4 | 3,557,245 | 9.2 | ||||||||||||
| Sales of pharmaceutical products | 190,297 | 0.7 | 1,380,344 | 3.6 | ||||||||||||
| Educational consulting services | 957,574 | 3.6 | 647,442 | 1.6 | ||||||||||||
| Total revenues | 26,947,183 | 100.0 | 38,876,968 | 100.0 | ||||||||||||
| Total cost of revenues | 20,371,994 | 75.6 | 27,738,882 | 71.4 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing expenses | 8,100,026 | 30.1 | 8,340,234 | 21.5 | ||||||||||||
| General and administrative expenses | 2,786,747 | 10.3 | 3,359,946 | 8.6 | ||||||||||||
| Total operating expenses | 10,886,773 | 40.4 | 11,700,180 | 30.1 | ||||||||||||
| Loss from operations | (4,311,584 | ) | (16.0 | ) | (562,094 | ) | (1.4 | ) | ||||||||
| Other income (expenses), net | ||||||||||||||||
| Interest income | 127,142 | 0.5 | 96,111 | 0.2 | ||||||||||||
| Interest expenses | (385,524 | ) | (1.4 | ) | (375,846 | ) | (1.0 | ) | ||||||||
| Amortization of financing cost | (623,801 | ) | (2.3 | ) | (641,576 | ) | (1.7 | ) | ||||||||
| Fair value loss | - | - | (1,621,836 | ) | (4.2 | ) | ||||||||||
| Other income, net | 274 | 0.0 | 52,341 | 0.1 | ||||||||||||
| Total other expenses | (881,909 | ) | (3.3 | ) | (2,490,806 | ) | (6.4 | ) | ||||||||
| Loss before income taxes | (5,193,493 | ) | (19.3 | ) | (3,052,900 | ) | (7.9 | ) | ||||||||
| Income tax expense | - | - | (263,228 | ) | (0.7 | ) | ||||||||||
| Net loss | $ | (5,193,493 | ) | (19.3 | ) | $ | (3,316,128 | ) | (8.5 | ) | ||||||
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Revenues. We generate revenues from providing installation and maintenance services, housekeeping services and senior care services, sales of pharmaceutical products and providing educational consulting services. Our total revenue was $26,947,183 for the six months ended December 31, 2023, compared to $38,876,968 for the six months ended December 31, 2022, representing a decrease of $11,929,785, or 30.7%. Such decrease was due to the decrease of $9,150,169 in revenue from installation and maintenance, the decrease of $1,153,679 in revenue from our housekeeping services, the decrease of $1,190,047 in revenue from sales of pharmaceutical products and the decrease of $746,022 in revenue from our senior care services, offsetting by the increase of $310,132 in revenue from our educational consulting services.
Revenue from installation and maintenance services decreased by $9,150,169, or 37.7%, to $15,151,510 for the six months ended December 31, 2023 from $24,301,679 for the six months ended December 31, 2022. Installation and maintenance services accounted for 56.2% of our total revenue for the six months ended December 31, 2023, as compared to 62.5% for the six months ended December 31, 2022. Revenue from housekeeping services amounted to $7,836,579, or 29.1% of our total revenue for the six months ended December 31, 2023, representing a decrease of $1,153,679, or 12.8%, from $8,990,258 for the six months ended December 31, 2022. Such decreases were primarily due to the fundamental economic weakness in China and the overall decrease in household service expenditures. During the six months ended December 31, 2023, we have partnerships with 1,800 individuals and service stores providing installation and maintenance services of home appliance and housekeeping services in China, which decreased approximately 21.7% comparing to the six months ended December 31, 2022. During the six months ended December 31, 2023, we also terminated cooperation with two main outlets which had significant impact on our revenues.
For the six months ended December 31, 2023, we generated revenue from senior care services in an amount of $2,811,223, or 10.4% of our total revenue, which represents a decrease of $746,022, or 21.0%, from $3,557,245 for the six months ended December 31, 2022. Such decreases were primarily due to the fundamental economic weakness in China and more cautious spending by senior citizens during the economic downturn period, which made it difficult for us to expand our customer base and increase sales from our existing customers. For the six months ended December 31, 2023, we generated revenue from sales of pharmaceutical products in an amount of $190,297, or 0.7% of our total revenue, which represents a decrease of $1,190,047, or 86.2%, from $1,380,344 for the six months ended December 31, 2022. For the six months ended December 31, 2023, we also generated revenue from educational consulting services in an amount of $957,574, or 3.6% of our total revenue, which represents an increase of $310,132, or 47.9%, from $647,442 for the six months ended December 31, 2022.
Cost of revenues. Our cost of revenues includes service fees paid to staff, outlets and suppliers for the services rendered and the cost of accessories sold. Our cost of revenue decreased by $7,366,888, or 26.6%, to $20,371,994 for the six months ended December 31, 2023 from $27,738,882 for the six months ended December 31, 2022. Such decrease was in line with our decreased revenue.
Sales and marketing expenses. Our sales and marketing expenses consist primarily of remuneration for staff involved in selling and marketing efforts, advertising cost, depreciation, travel and leasing expenses. Our sales and marketing expenses decreased slightly by $240,208, or 2.9%, to $8,100,026 for the six months ended December 31, 2023 from $8,340,234 for the six months ended December 31, 2022. As a percentage of revenue, sales and marketing expenses increased to 30.1% for the six months ended December 31, 2023 from 21.5% for the six months ended December 31, 2022.
General and administrative expenses. Our general and administrative expenses consist primarily of employee remuneration, professional fees, insurance, benefits, office leases, general office expenses and depreciation. Our general and administrative expenses decreased by $573,199, or 17.1%, to $2,786,747 for the six months ended December 31, 2023 from $3,359,946 for the six months ended December 31, 2022. Such decrease was due to the decrease in consulting services expenses. As a percentage of revenue, general and administrative expenses increased to 10.3% for the six months ended December 31, 2023 from 8.6% for the six months ended December 31, 2022.
9
Loss from operations. As a result of the foregoing, we recorded loss from operations of $4,311,584 for the six months ended December 31, 2023, representing an increase of $3,749,490 in loss from operations, compared to $562,094 for the six months ended December 31, 2022.
Total other (expenses) income. We had $881,909 in total other expenses for the six months ended December 31, 2023, as compared to $2,490,806 in total other income for the six months ended December 31, 2022. Total other income (expenses), net, for the six months ended December 31, 2023 consisted of interest income in the amount of $127,142 and other income of $274, offset by interest expenses in the amount of $385,524 and amortization of financing cost of the convertible notes of $623,801. Total other income (expenses), net, for the six months ended December 31, 2022 consisted of interest income in the amount of $96,111, government subsidy of $43,616 and foreign currency exchange income of $8,725, offset by interest expenses in the amount of $375,846, amortization of financing cost of the convertible note of $641,576 and fair value loss of financial instruments of $1,621,836.
Income tax expense. We recorded income tax expenses of $Nil for the six months ended December 31, 2023, representing a decrease of $263,228, or 100.0%, as compared to $263,228 for the six months ended December 31, 2022. The decrease in the income tax expense mainly resulted from the decrease in the income before income taxes from our PRC subsidiaries. See also “—Taxation” above.
Net loss. As a result of the cumulative effect of the factors described above, we generated a net loss of $5,193,493 for the six months ended December 31, 2023, representing an increase in net loss of $2,140,593, or 70.1%, from net loss of $3,316,128 for the six months ended December 31, 2022.
Liquidity and Capital Resources
As of December 31, 2023 and June 30, 2023, we had cash and cash equivalents of $74,325,312 and $71,252,380, respectively. We finance our operations, working capital needs and strategic investments from cash generated through operations and through debt and equity financing.
We believe that our current levels of cash and cash flows from operations and equity financing will be sufficient to meet our anticipated cash needs for our operations and expansion plans for at least the next 12 months. We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.
The following table sets forth a summary of our cash flows for the periods presented:
| For the Six Months Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Net cash provided by operating activities | $ | 1,381,424 | $ | 3,805,834 | ||||
| Net cash used in investing activities | (10,688,160 | ) | (3,468,043 | ) | ||||
| Net cash provided by financing activities | 11,822,082 | 9,167,098 | ||||||
| Net increase in cash and cash equivalents | 2,515,346 | 9,504,891 | ||||||
| Effect of currency translation | 557,586 | (1,876,938 | ) | |||||
| Cash and cash equivalents at beginning of the period | 71,252,380 | 54,842,052 | ||||||
| Cash and cash equivalents at end of the period | $ | 74,325,312 | $ | 62,470,005 | ||||
10
Operating Activities
For the six months ended December 31, 2023, net cash provided by operating activities was $1,381,424, representing a decrease of $2,424,410 compared to net cash provided by operating activities of $3,805,834 for the six months ended December 31, 2022.
For the six months ended December 31, 2023, net cash provided by operating activities was $1,381,424. Net cash provided by operating activities for the six months ended December 31, 2023 consisted of the net loss of $5,193,493, interest expense in the amount of $385,524, depreciation and amortization of property, plant and equipment and intangible assets in the amount of $237,631, amortization of right-of-use assets in the amount of $304,163, amortization of financing cost of the convertible notes of $623,801, equity incentive plan of $327,340, loss on write-off of property, plant and equipment of $60,910, change in account receivables in the amount of $339,061, change in advance to suppliers in the amount of $11,282, change in inventory in the amount of $22,374, change in prepayments, receivables and other current assets in the amount of $4,143,426, change in long-term deposits and other non-current assets in the amount of $2,014,298, and change in tax payable in the amount of $5,208, offset by change in accounts payable and accrued expenses in the amount of $1,171,817, change in advance from customers in the amount of $628,531 and change in operating lease liabilities in the amount of $99,753.
Net cash provided by operating activities for the six months ended December 31, 2022 consisted of the net loss of $3,316,128, income tax expense in the amount of $233,797, interest expense in the amount of $375,846, depreciation and amortization of property, plant and equipment and intangible assets in the amount of $1,330,221, amortization of right-of-use assets in the amount of $430,914, amortization of financing cost of the convertible note of $641,576, fair value loss of financial instruments of $1,621,836, change in accounts payable and accrued expenses in the amount of $6,901,987, offset by change in account receivables in the amount of $1,245,352, change in inventory in the amount of $159,286, change in prepayments, receivables and other current assets in the amount of $1,899,177, change in long-term deposits and other non-current assets in the amount of $55,177, change in tax payable in the amount of $7,921, and change in operating lease liabilities of $685,708.
Investing Activities
For the six months ended December 31, 2023, net cash used in investing activities was $10,688,160. Net cash used in investing activities for the six months ended December 31, 2023 consisted of cash paid for due from related parties of $10,688,160.
For the six months ended December 31, 2022, net cash used in investing activities was $3,468,043. Net cash used in investing activities for the six months ended December 31, 2022 consisted of cash paid for due from related parties of $3,100,000, cash paid for loan receivables from unaffiliated company and individual of $1,250,000, cash paid for property, plant and equipment of $885,343 and cash paid for intangible assets in the amount of $32,700, offset by refund of prepaid deposit for potential acquisition in the amount of $1,800,000.
11
Financing Activities
Net cash provided by financing activities was $11,822,082 for the six months ended December 31, 2023, which consisted of proceeds from issuance of shares in in the amount of $12,001,420 and proceeds from related parties in the amount of $20,662, offset by cash repayment to the convertible notes in the amount of $200,000.
Net cash provided by financing activities was $9,167,098 for the six months ended December 31, 2022, which consisted of proceed from the issuance of shares in the amount of $7,844,757 and proceed from short term loan of $1,398,262, offset by cash paid for financial lease of $75,921.
Capital Expenditures
We made capital expenditures of $Nil and $918,043 for the six months ended December 31, 2023 and 2022, respectively. In these periods, our capital expenditures were mainly used for purchases of property and equipment, including office equipment, electronic equipment and motor vehicles. We plan to continue to make capital expenditures to meet the needs that result from the expected growth of our business.
Holding Company Structure
E-Home Household Service Holdings Limited is a Cayman Islands holding company with no material operations of its own. We conduct our operations primarily through E-Home WFOE and its subsidiaries in China. As a result, our ability to pay dividends depends upon dividends paid by E-Home WFOE. If E-Home WFOE or our other PRC subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, E-Home WFOE is permitted to pay dividends to E-Home Household Service Holdings Limited only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, E-Home WFOE and its PRC subsidiaries are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. In addition, each may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at their discretion, and these entities may allocate a portion of their after-tax profits based on PRC accounting standards to a discretionary surplus fund at their discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by the State Administration of Foreign Exchange. E-Home WFOE has not paid dividends and will not be able to pay dividends until it meets the requirements for statutory reserve funds.
12
Document And Entity Information |
6 Months Ended |
|---|---|
Dec. 31, 2023 | |
| Document Information Line Items | |
| Entity Registrant Name | E-Home Household Service Holdings Limited |
| Document Type | 6-K |
| Current Fiscal Year End Date | --06-30 |
| Amendment Flag | false |
| Entity Central Index Key | 0001769768 |
| Document Period End Date | Dec. 31, 2023 |
| Document Fiscal Year Focus | 2023 |
| Document Fiscal Period Focus | Q2 |
| Entity File Number | 001-40375 |
| Entity Address, Address Line One | E-Home, 18/F, East Tower, Building B |
| Entity Address, Address Line Two | Dongbai Center, Yangqiao Road |
| Entity Address, Address Line Three | Gulou District |
| Entity Address, City or Town | Fuzhou City |
| Entity Address, Postal Zip Code | 350001 |
| Entity Address, Country | CN |
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares |
Dec. 31, 2023 |
Jun. 30, 2023 |
||
|---|---|---|---|---|
| Statement of Financial Position [Abstract] | ||||
| Ordinary shares, par value (in Dollars per share) | [1] | $ 1 | $ 1 | |
| Ordinary shares, authorized | [1] | 100,000,000 | 100,000,000 | |
| Ordinary shares, issued | [1] | 3,078,222 | 544,981 | |
| Ordinary shares, outstanding | [1] | 3,078,222 | 544,981 | |
| ||||
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) - USD ($) |
6 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
| Revenues | ||||
| Total revenues | $ 26,947,183 | $ 38,876,968 | ||
| Cost of revenues | ||||
| Total cost of revenues | 20,371,994 | 27,738,882 | ||
| Gross profit | 6,575,189 | 11,138,086 | ||
| Operating expenses | ||||
| Sales and marketing expenses | 8,100,026 | 8,340,234 | ||
| General and administrative expenses | 2,786,747 | 3,359,946 | ||
| Total operating expenses | 10,886,773 | 11,700,180 | ||
| Loss from operations | (4,311,584) | (562,094) | ||
| Other income (expenses), net | ||||
| Interest income | 127,142 | 96,111 | ||
| Interest expenses | (385,524) | (375,846) | ||
| Amortization of financing cost | (623,801) | (641,576) | ||
| Fair value loss – financial instruments | (1,621,836) | |||
| Other income, net | 274 | 52,341 | ||
| Total other expenses, net | (881,909) | (2,490,806) | ||
| Loss before income taxes | (5,193,493) | (3,052,900) | ||
| Income tax expense | (263,228) | |||
| Net loss | (5,193,493) | (3,316,128) | ||
| Including: | ||||
| Net loss attributable to the Company’s shareholders | (5,169,892) | (3,202,169) | ||
| Net loss attributable to non-controlling interests | (23,601) | (113,959) | ||
| Other comprehensive income (loss) | ||||
| Foreign currency translation adjustment, net of nil tax | 687,989 | (2,131,493) | ||
| Total comprehensive loss | $ (4,505,504) | $ (5,447,621) | ||
| Net loss per share—basic (in Dollars per share) | $ (1.97) | $ (26.57) | ||
| Weighted average number of ordinary shares outstanding—basic (in Shares) | [1] | 2,634,729 | 124,799 | |
| Installation and maintenance | ||||
| Revenues | ||||
| Total revenues | $ 15,151,510 | $ 24,301,679 | ||
| Cost of revenues | ||||
| Total cost of revenues | 11,201,726 | 16,075,215 | ||
| Housekeeping | ||||
| Revenues | ||||
| Total revenues | 7,530,605 | 8,990,258 | ||
| Cost of revenues | ||||
| Total cost of revenues | 6,707,480 | 7,762,831 | ||
| Senior care services | ||||
| Revenues | ||||
| Total revenues | 3,131,146 | 3,557,245 | ||
| Cost of revenues | ||||
| Total cost of revenues | 1,719,011 | 2,175,931 | ||
| Sales of pharmaceutical products | ||||
| Revenues | ||||
| Total revenues | 190,297 | 1,380,344 | ||
| Cost of revenues | ||||
| Total cost of revenues | 43,241 | 1,251,406 | ||
| Educational consulting services | ||||
| Revenues | ||||
| Total revenues | 943,625 | 647,442 | ||
| Cost of revenues | ||||
| Total cost of revenues | $ 700,536 | $ 473,499 | ||
| ||||
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) (Parentheticals) - $ / shares |
6 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
| Income Statement [Abstract] | ||||
| Net loss per share— diluted (in Dollars per share) | $ (1.97) | $ (26.57) | ||
| Weighted average number of ordinary shares outstanding—diluted* (in Shares) | [1] | 2,634,729 | 124,799 | |
| ||||
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) |
Number of Shares |
[1] | Ordinary shares |
Additional paid-in capital |
Statutory reserve |
Retained earnings (Accumulated loss) |
Accumulated other comprehensive income (loss) |
Equity attributable to the Company’s shareholders |
Non-controlling interest |
Total |
|||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at Jun. 30, 2022 | $ 4,425 | $ 33,452,332 | $ 664,100 | $ 31,374,073 | $ (945,093) | $ 64,549,837 | $ (19,953) | $ 64,529,884 | |||||||
| Balance (in Shares) at Jun. 30, 2022 | 4,425 | ||||||||||||||
| Net loss | (3,202,169) | (3,202,169) | (113,959) | (3,316,128) | |||||||||||
| Foreign currency translation adjustment | (2,104,002) | (2,104,002) | (27,491) | (2,131,493) | |||||||||||
| Acquisition of 75% ownership in Zhongrun | 12,124 | 11,338,195 | 11,350,319 | 2,156,098 | 13,506,417 | ||||||||||
| Acquisition of 75% ownership in Zhongrun (in Shares) | 12,124 | ||||||||||||||
| Acquisition of 60% ownership in Youyou | 131,890 | 131,890 | |||||||||||||
| Acquisition of 100% ownership in Chuangying | 1,444 | 5,591,605 | 5,593,049 | 5,593,049 | |||||||||||
| Acquisition of 100% ownership in Chuangying (in Shares) | 1,444 | ||||||||||||||
| Shares issued to investors | 9,630 | 7,835,127 | 7,844,757 | 7,844,757 | |||||||||||
| Shares issued to investors (in Shares) | 9,630 | ||||||||||||||
| Shares issued under equity incentive plan | 200 | 105,800 | 106,000 | 106,000 | |||||||||||
| Shares issued under equity incentive plan (in Shares) | 200 | ||||||||||||||
| Shares issued for conversion of convertible notes | 2,728 | 2,192,272 | 2,195,000 | 2,195,000 | |||||||||||
| Shares issued for conversion of convertible notes (in Shares) | 2,728 | ||||||||||||||
| Balance at December 31, 2022 at Dec. 31, 2022 | 30,551 | 60,515,331 | 664,100 | 28,171,904 | (3,049,095) | 86,332,791 | 2,126,585 | 88,459,376 | |||||||
| Balance at December 31, 2022 (in Shares) at Dec. 31, 2022 | 30,551 | ||||||||||||||
| Balance at Jun. 30, 2023 | 544,981 | 146,460,821 | 664,100 | (3,632,766) | (7,109,254) | 136,927,882 | 880,724 | $ 137,808,606 | |||||||
| Balance (in Shares) at Jun. 30, 2023 | 544,981 | 544,981 | [2] | ||||||||||||
| Net loss | (5,169,892) | (5,169,892) | (23,601) | $ (5,193,493) | |||||||||||
| Foreign currency translation adjustment | 693,938 | 693,938 | (5,949) | 687,989 | |||||||||||
| Shares issued to investors | 2,146,341 | 9,855,079 | 12,001,420 | 12,001,420 | |||||||||||
| Shares issued to investors (in Shares) | 2,146,341 | ||||||||||||||
| Shares issued under equity incentive plan | 52,000 | 275,340 | 327,340 | 327,340 | |||||||||||
| Shares issued under equity incentive plan (in Shares) | 52,000 | ||||||||||||||
| Shares issued for conversion of convertible notes | 334,900 | 3,145,779 | 3,480,679 | 3,480,679 | |||||||||||
| Shares issued for conversion of convertible notes (in Shares) | 334,900 | ||||||||||||||
| Balance at December 31, 2022 at Dec. 31, 2023 | $ 3,078,222 | $ 159,737,019 | $ 664,100 | $ (8,802,658) | $ (6,415,316) | $ 148,261,367 | $ 851,174 | $ 149,112,541 | |||||||
| Balance at December 31, 2022 (in Shares) at Dec. 31, 2023 | 3,078,222 | 3,078,222 | [2] | ||||||||||||
| |||||||||||||||
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parentheticals) |
Dec. 31, 2022 |
|---|---|
| Zhongrun | |
| Ownership percentage | 75.00% |
| Youyou | |
| Ownership percentage | 60.00% |
| Chuangying | |
| Ownership percentage | 100.00% |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Cash provided by operating activities | ||
| Net loss | $ (5,193,493) | $ (3,316,128) |
| Deferred tax benefit | (233,797) | |
| Interest expense | 385,524 | 375,846 |
| Depreciation and amortization | 237,631 | 1,330,221 |
| Amortization of right-of-use assets | 304,163 | 430,914 |
| Convertible note - Amortization of financing cost | 623,801 | 641,576 |
| Equity incentive plan | 327,340 | 106,000 |
| Written-off of property, plant and equipment | 60,910 | |
| Fair value loss – financial instruments | 1,621,836 | |
| Changes in operating assets and liabilities | ||
| Accounts receivables | 339,061 | (1,245,352) |
| Advance to suppliers | 11,282 | |
| Inventories | 22,374 | (159,286) |
| Prepayment, receivables and other current assets | 4,143,426 | (1,899,177) |
| Long-term deposits and other non-current assets | 2,014,298 | (55,177) |
| Accounts payable and accrued expenses | (1,171,817) | 6,901,987 |
| Advance from customers | (628,531) | |
| Taxes payable | 5,208 | (7,921) |
| Operating lease liabilities | (99,753) | (685,708) |
| Net cash provided by operating activities | 1,381,424 | 3,805,834 |
| Investing Activities | ||
| Purchases of property, plant and equipment | (885,343) | |
| Purchases of intangible assets | (32,700) | |
| Due from related parties | (10,688,160) | (3,100,000) |
| Loan receivables | (1,250,000) | |
| Refund for potential acquisitions | 1,800,000 | |
| Net cash used in investing activities | (10,688,160) | (3,468,043) |
| Financing Activities | ||
| Proceeds from stock issuance | 12,001,420 | 7,844,757 |
| Proceeds from short-term loan | 1,398,262 | |
| Payment of financial leases | (75,921) | |
| Repayment convertible note | (200,000) | |
| Due to related parties | 20,662 | |
| Net cash provided by financing activities | 11,822,082 | 9,167,098 |
| Net increase in cash and cash equivalents | 2,515,346 | 9,504,889 |
| Effects of currency translation | 557,586 | (1,876,936) |
| Cash and cash equivalents at beginning of period | 71,252,380 | 54,842,052 |
| Cash and cash equivalents at end of period | 74,325,312 | 62,470,005 |
| SUPPLEMENTAL DISCLOSURES | ||
| Income taxes paid | 545,998 | |
| Interest paid | 385,524 | 375,847 |
| Non-cash transactions | ||
| Issuance of shares for convertible note principal and interest settlement | 3,480,679 | 3,520,000 |
| Issuance of shares to directors and consultants | 327,340 | 106,000 |
| Zhongrun | ||
| Non-cash transactions | ||
| Issuance of shares for acquisition of equity | 11,350,319 | |
| Chuangying | ||
| Non-cash transactions | ||
| Issuance of shares for acquisition of equity | $ 5,593,049 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) |
6 Months Ended |
|---|---|
Dec. 31, 2023 | |
| Zhongrun | |
| Issuance of shares for acquisition of equity percentage | 75.00% |
| Chuangying | |
| Issuance of shares for acquisition of equity percentage | 100.00% |
Organization and Nature of Operations |
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| Organization and Nature of Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS
E-Home Household Service Holdings Limited (the “Company”) was incorporated as a limited company under the law of Cayman Islands on September 24, 2018. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries. The Company and its subsidiaries are hereinafter collectively referred to as “the Company”. The Company is principally engaged in the operation of household services, e.g. installation and maintenance of home appliances, housekeeping and senior care in the People’s Republic of China (the “PRC”) through on-line APP platform or call center. As described below, the Company, through a series of transactions which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries. Accordingly, these condensed consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented.
Reorganization
In preparation of its initial public offering in the United States (“IPO”), the following transactions were undertaken to reorganize the legal structure of the Company. The reorganization involved (i) the incorporation of the Company in the Cayman Islands as a holding company; (ii) the establishment of E-Home Household Service Holdings Limited (“E-Home Hong Kong”) as a wholly-owned subsidiary in Hong Kong, PRC; (iii) the establishment of E-Home Household Service Technology Co., Ltd. (“WOFE”), as a wholly-owned subsidiary of E-Home Hong Kong in Fujian, PRC; (iv) the entry by WFOE into contractual arrangements with Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (“E-Home Pingtan”) and Fuzhou Bangchang Technology Co. Ltd. (“Fuzhou Bangchang”) and their shareholders. The Company, E-Home Hong Kong and WFOE are all holding companies and had not commenced operation until this reorganization was complete. A reorganization of the Company’s legal structure was completed in February 2019.
As all the entities involved in the process of the Reorganization are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interest with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts.
Dissolution of the Company’s variable interest entity structure
On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, the company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company.
Equity transfer agreements
Acquisition of non-controlling interest in HAPPY
On August 10, 2021, the Company’s PRC subsidiary, E-Home Pingtan entered into an equity transfer agreement to acquire the remaining 33% equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“HAPPY”) in consideration of $466,888 (RMB 3,000,000), with $54,462 (RMB 350,000) paid in August 2021 and $412,427 (RMB 2,650,000) paid in March 2022. The transaction to acquire the remaining 33% equity interests of HAPPY was closed in August 2021 and after the acquisition, E-Home Pingtan owns 100% of the equity interest of HAPPY.
Reverse stock split
On September 8, 2022, the Company’s board of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares with the market effective on September 23, 2022, such that the par value of each ordinary share is increased from US$0.0001 to US$0.002. As a result of the one-for-twenty reverse stock split, each twenty pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split. Each shareholder was entitled to receive one ordinary share in lieu of the fractional share that would have resulted from the reverse stock split.
On April 12, 2023, the Company announced the effect of a one-for-ten reverse stock split of its ordinary shares approved by the Company’s Annual General Meeting of Shareholders with the market effective on April 13, 2023, such that the par value of each ordinary share is increased from US$0.002 to US$0.02. As a result of the one-for-ten reverse stock split, each ten pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
On September 22, 2023, the Company announced the effect of a one-for-ten reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders with the market effective on September 25, 2023, such that the par value of each ordinary share is increased from US$0.02 to US$0.2. As a result of the one-for-ten reverse stock split, each ten pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
On February 9, 2024, the Company announced the effect of a one-for-five reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders with the market effective on February 14, 2024, such that the par value of each ordinary share is increased from US$0.2 to US$1. As a result of the one-for-five reverse stock split, each five pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
The number of ordinary shares outstanding as of December 31, 2023 and June 30, 2023, and for the six months ended December 31, 2023 and 2022 were retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024.
The Company’s major consolidated subsidiaries as of December 31, 2023 are as follows:
The accompanying condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. |
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Significant Accounting Policies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
Interim financial statements
These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“US GAAP”) for interim financial information and with the instructions to Form 6-K and Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended June 30, 2023 and notes thereto and other pertinent information contained in our Form 20-F the Company has filed with the Securities and Exchange Commission (the “SEC”) on November 6, 2023. The results of operations for the six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2024.
Basis of presentation
The accompanying condensed 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
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, plant and equipment and intangible assets, the recoverability of long-lived assets and goodwill, and provision necessary for contingent liabilities. Actual results could differ from those estimates.
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 are recognized and carried at 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 operations and other comprehensive income (loss). 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 December 31, 2023 and June 30, 2023, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $ and $, respectively.
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 December 31, 2023 and June 30, 2023 were $ and $, respectively.
Prepayments, receivables and other current assets
Prepayments, receivables 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 December 31, 2023 and June 30, 2023 were $ and $, respectively.
Inventories
Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs and is determined by the weighted-average method. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost and other costs related to selling the inventories. For the six months ended December 31, 2023 and 2022, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively.
Property, plant and equipment, net
Property, plant 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:
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) in other income or expenses.
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 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 (“ASC 350-20”), which requires that goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20.
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
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 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 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
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
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
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
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, time deposits, accounts receivable, prepaid expenses 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:
The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, advances to suppliers, prepayment, receivables and other current assets, due from related parties, loan receivables, accounts payable and advances from customers to approximate the fair value of the respective assets and liabilities as of December 31, 2023 and June 30, 2023 owing to their short-term or immediate nature.
Revenue recognition
The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers (ASC 606) beginning January 1, 2018 and elected to adopt ASC 606 under the modified retrospective method. This guidance was applied retrospectively to the most current period presented in the Company’s consolidated financial statements. The adoption of ASC 606 did not have a material impact on the consolidated financial statements of the Company.
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.
The Company does not have amounts of contract assets since revenue is recognized as control of goods or services is transferred. The contract liabilities consist of advance payments from customers. The contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. All contract liabilities are included in advance from customers in the condensed consolidated balance sheets. As of December 31, 2023 and June 30, 2023, the Company record advance from customers of $1,532,624 and $2,123,540, respectively.
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 to its customers, which are mainly pharmaceutical stores 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 consists of service fees paid to staff, outlets, suppliers and the cost of products sold.
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 six months ended December 31, 2023 and 2022, the Company received government subsidies of $ and $43,616, respectively. The grants were recorded as other income (loss), net in the condensed consolidated financial statements.
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
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
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
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 for the six months ended December 31, 2023 was 55 shares. There were no potentially dilutive ordinary shares for the six months ended December 31, 2022.
Comprehensive income (loss)
Comprehensive income (loss) is defined as the change in equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income (loss) is reported in the consolidated statements of operations and other comprehensive income. Accumulated other comprehensive income (loss), as presented on the accompanying consolidated balance sheets, consists of accumulated foreign currency translation adjustments.
Foreign currency translation
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 income (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:
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 in July 2023.
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 to 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 income (loss).
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
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 December 31, 2023 and June 30, 2023.
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 December 31, 2023 and June 30, 2023, the RMB denominated cash and cash equivalents amounted to $74,304,547 and $71,240,361, 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
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
The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.
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.
In July 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 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 September 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The Board is issuing the amendments in this Update to enhance the transparency and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The Board decided that the amendments should be effective for public business entities for annual periods beginning after December 15, 2024. 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 operations and other comprehensive income (loss) and statements of cash flows. |
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Business Combinations |
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| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS COMBINATIONS | NOTE 3 – BUSINESS COMBINATIONS
For the year ended June 30, 2023, the Company completed several business combinations with total purchase consideration in aggregate was $17,374,118, among which $8,846,867 was allocated to goodwill. The Company expects to achieve significant synergies from such acquisitions which it plans to complement its existing businesses. Results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since the acquisition date.
Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions.
The valuations used in the purchase price allocation were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of pre-existing equity interests and debt investment or noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flows, (c) equity multiples or enterprise value multiples of companies in the same industries and (d) adjustment for lack of control or lack of marketability.
According to the independent valuation reports, the purchase prices allocation to the assets acquired and liabilities assumed based on their fair values as of December 31, 2023 and June 30, 2023 were as follows:
Acquisition of 75% ownership in Zhongrun
Acquisition of 100% ownership in Chuangying
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Accounts Receivable, Net |
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| Accounts Receivable, Net [Abstract] | |||||||||||||||||||
| ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following as of December 31, 2023 and June 30, 2023:
The Company recorded no allowance for doubtful accounts as of December 31, 2023 and June 30, 2023. The Company gives its customers credit period of 30 days to 1 year and continually assesses the recoverability of uncollected accounts receivable. As of December 31, 2023 and June 30, 2023, the balances of the Company’s accounts receivable were all due within credit periods. Until April 30, 2024, the Company collected accounts receivable of $84,600, which accounts for 12% of the total balance as of December 31, 2023. |
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Prepayment, Receivables and Other Current Assets |
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| Prepayment, Receivables and Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PREPAYMENT, RECEIVABLES AND OTHER CURRENT ASSETS | NOTE 5 – PREPAYMENT, RECEIVABLES AND OTHER CURRENT ASSETS
Prepayments, receivables and other current assets as of December 31, 2023 and June 30, 2023, consisted of the following:
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Property, Plant and Equipment, Net |
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| Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment consisted of the following as of December 31, 2023 and June 30, 2023:
As of December 31, 2023 and June 30, 2023, there were not any pledged property, plant or equipment. The Company recorded depreciation expenses of $219,759 and $613,247 for the six months ended December 31, 2023 and 2022, respectively. For the six months ended December 31, 2023 and 2022, the Company recorded no impairment losses for property, plant and equipment, respectively.
For the six months ended December 31, 2023 and 2022, the Company purchased property, plant and equipment of $ and $885,343 in cash, respectively. For the six months ended December 31, 2022, the Company acquired property, plant and equipment of $126,449 (cost of $551,389 and accumulated depreciation of $424,940) from business combinations.
For the six months ended December 31, 2023, the Company wrote off office and electronic equipment and machinery of $61,423 (cost of $351,297 and accumulated depreciation of $289,874), and recorded written-off of property, plant and equipment of $60,910 included in other income, net. For the six months ended December 31, 2022, the Company disposed or wrote off property, plant and equipment. |
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Intangible Assets, Net |
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| Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS, NET | NOTE 8 – INTANGIBLE ASSETS, NET
Intangible assets consisted of the following as of December 31, 2023 and June 30, 2023:
On June 14, 2022 and December 20, 2022, the Company and its wholly owned subsidiary, E-Home Hong Kong, entered into equity transfer agreements with Zhongrun, a limited liability company established in China and Ms. Ling Chen, pursuant to which Ms. Chen agreed to transfer 55% and 20% of the equity interests in Zhongrun to E-Home Hong Kong, in consideration for the sum of (i) RMB3 million (approximately $0.453 million, not paid) in cash and (ii) 28,041,992 ordinary shares of the Company. On July 8, 2022, the Company issued 28,041,992 ordinary shares (2,804 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) according to the equity transfer agreement at a fair value of $8,496,724 (par value of $2,804 and additional paid-in capital of $8,493,919). On December 20, 2022, the Company issued 4,660,129 ordinary shares (9,320 shares retrospectively adjusted for effect of reverse stock splits on April 13, 2023, September 25, 2023 and February 14, 2024) at an aggregate fair value of $2,853,596 (par value of $9,320 and additional paid-in capital of $2,844,276).
Based on the valuations report from independent third-party valuation firms used in the purchase price allocation, the Company recorded customer relationships of $6,321,792 with useful life of five years as intangible assets. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. Customer relationships recorded by the Company includes Zhongrun’s practice of establishing relationships with its customers through contracts and regular contact by sales and representatives.
On July 30, 2022, the Company’s board of directors approved to acquire 100% of the equity interests of Chuangying and its subsidiaries from Lin Jianying, in consideration for an aggregate of 14,438,584 ordinary shares (1,444 ordinary shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) of the Company valued at RMB39.2 million (approximately $5.59 million) with a per share issuance price equal to 130% of the average of the Nasdaq closing price for the consecutive twenty trading days preceding July 26, 2022, or $0.39.
Based on the valuations report from independent third-party valuation firms used in the purchase price allocation, the Company recorded customer relationships of $1,426,798 with useful life of ten years and copyrights and trademarks of $242,556 with useful life of five years as intangible assets. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. Customer relationships recorded by the Company includes Chuangying’s practice of establishing relationships with its customers through contracts and regular contact by sales and representatives.
As of December 31, 2023 and June 30, 2023, there were no any pledged intangible assets to secure bank loans. The Company recorded amortization expense of $17,872 and $716,974 for the six months ended December 31, 2023 and 2022. For the six months ended December 31, 2023 and 2022, the Company recorded no impairment losses for intangible assets. For the six months ended December 31, 2023 and 2022, the Company recorded no disposal of intangible assets.
Estimated future amortization expense is as follows as of December 31, 2023:
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Operating Lease Right-of-Use Assets, Net |
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| Operating Lease Right-of-Use Assets, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | NOTE 10 – OPERATING LEASE RIGHT-OF-USE ASSETS, NET
Operating lease right -of-use assets, net, were as follows as of December 31, 2023 and June 30, 2023:
The Company recognized lease expense for the operating lease right-of-use assets Shou Hill Valley Area and Villas over the lease periods which are 20 years. The Company recognized lease expense for the operating lease right-of-use asset Base Station Tower over the lease period which is 10 years. The Company recognized lease expense for the operating lease right-of-use asset Farmland over the lease period which is 12.5 years. The Company recognized lease expense for the operating lease right-of-use asset Warehouse over the lease contract period, which was 9 years.
For the six months ended December 31, 2023, amortization of the operating lease right-of-use assets amounted to $304,163 and the interest on lease liabilities amounted to $34,683, respectively. |
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Finance Lease Right-of-Use Assets, Net |
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| Finance Lease Right-of-Use Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE LEASE RIGHT-OF-USE ASSETS, NET | NOTE 11 – FINANCE LEASE RIGHT-OF-USE ASSETS, NET
Finance lease right -of-use assets, net, were as follows as of December 31, 2023 and June 30, 2023:
On July 1, 2023, the Company terminated the lease agreement of vehicles with the lease. The finance lease right-of-use asset is amortized over a 10-year period. The amortization period is 10 years and the discount rate used is 4.9%. |
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Long-Term Deposits and Other Non-Current Assets |
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| Long-Term Prepayments and Other Non-Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
| LONG-TERM DEPOSITS AND OTHER NON-CURRENT ASSETS | NOTE 12 – LONG-TERM DEPOSITS AND OTHER NON-CURRENT ASSETS
Long-term deposits and other non-current assets as of December 31, 2023 and June 30, 2023 consisted of the following:
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Goodwill |
6 Months Ended |
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Dec. 31, 2023 | |
| Goodwill [Abstract] | |
| GOODWILL | NOTE 13 – GOODWILL
For the year ended June 30, 2023, the Company completed several business combinations with total purchase consideration in aggregate was $17,374,118, among which $8,846,867 was allocated to goodwill. The Company expects to achieve significant synergies from such acquisitions which it plans to complement its existing businesses. Results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since the acquisition date.
Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions.
The valuations used in the purchase price allocation were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of pre-existing equity interests and debt investment or noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flows, (c) equity multiples or enterprise value multiples of companies in the same industries and (d) adjustment for lack of control or lack of marketability.
The purchase prices allocation to the assets acquired and liabilities assumed based on their fair values were included in Note 3. Business Combinations. |
Accounts Payable and Accrued Expenses |
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| Accounts Payable and Accrued Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 14 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES
The following is a summary of accounts payable and accrued expenses as of December 31, 2023 and June 30, 2023:
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| Advance from Customers [Abstract] | |||||||||||||||||||||||||||||||||||||
| ADVANCES FROM CUSTOMERS | NOTE 15 – ADVANCES FROM CUSTOMERS
Advance from customers as of December 31, 2023 and June 30, 2023 consisted of the following:
E-Home received annual fees from senior care services customers and recognized revenues over the contract period. The amounts advanced from customers from senior care services were $1,165,184 and $1,805,609 as of December 31, 2023 and June 30, 2023, respectively, which will be recognized as senior care services revenue within 12 months. E-Home received advance from housekeeping services customers and recognized revenues when services are provided. The amounts advanced from customers from housekeeping services were $367,440 and $317,931 as of December 31, 2023 and June 30, 2023, respectively, which will be recognized as housekeeping services revenue within 12 months. |
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Operating Lease Liabilities |
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| Operating Lease Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPERATING LEASE LIABILITIES | NOTE 16 – OPERATING LEASE LIABILITIES
Operating lease liabilities as of December 31, 2023 and June 30, 2023 consisted of the following:
Analyzed for reporting purposes as:
The operating lease liabilities is the net present value of the remaining lease payments as of December 31, 2023 and June 30, 2023.
The discount rates used for the Villas, Base Station Tower, and Warehouse were 4.12%, 3.14%, and 4.45%, respectively. The weighted average discount rate used for operating leases was 3.79%. The weighted average remaining lease terms for operating leases was 11.59 years. The incremental borrowing rate for the Company ranged from 3.7% to 4.8%.
The Company recorded no operating lease liability for the operating lease of Shou Hill Valley Area as of December 31, 2023 and June 30, 2023, respectively, since the Company prepaid the total lease expense of $2,319,791 (RMB 15,000,000) in December 2017. The Company recorded no operating lease liability for the operating lease of Farmland as of December 31, 2023 and June 30, 2023, since the Company paid the total lease expense of $2,321,945 (RMB 15,000,000) in October 2021.
For the six months ended December 31, 2023 and 2022, the operating lease costs were $338,846 and $234,404, respectively. For the six months ended December 31, 2023 and 2022, the short-term operating lease expense were $3,990,311 and $1,284,118, respectively.
Maturity analysis of operating lease liabilities as of December 31, 2023 is as follows:
Maturity analysis of operating lease liabilities as of June 30, 2023 is as follows:
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Finance Lease Liabilities |
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| Finance Lease Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE LEASE LIABILITIES | NOTE 17 – FINANCE LEASE LIABILITIES
Financing lease liabilities as of December 31, 2023 and June 30, 2023 consisted of the following:
Analyzed for reporting purposes as:
The lease agreement was entered into on September 11, 2017, bears interest at about 4.9% and will be matured on December 31, 2027. On July 1, 2023, the Company terminated the lease agreement of vehicles with the lease.
For the six months ended December 31, 2023 and 2022, the amortization expense of financial lease right-of-use assets were $ and $85,608, respectively. For the six months ended December 31, 2023 and 2022, the interest expense for financial lease were $ and $9,709, respectively.
There were no future financial lease liabilities as of December 31, 2023.
Maturity analysis of financial lease liabilities as of June 30, 2023 is as follows:
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Convertible Note |
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| Convertible Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONVERTIBLE NOTE | NOTE 18 – CONVERTIBLE NOTE
The Convertible Note 2021
On December 20, 2021, the Company entered into a Securities Purchase Agreement with an institutional investor pursuant to which the Company issued an unsecured convertible promissory note with a two-year maturity (the “Convertible Note 2021”) to Investor. The Convertible Note 2021 has the original principal amount of $5,275,000 including the original issue discount of $250,000 and Investor’s legal and other transaction costs of $25,000. The Company anticipates using the proceeds for general working capital purposes.
Material Terms of the Convertible Note 2021:
In accounting for the issuance of the Convertible Note 2021, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component of the Convertible Note 2021 and the warrants was $1,304,565 (equity component $1,092,460, warrants value $212,105). Equity component was determined by deducting the fair value of the liability component from the par value of the original Convertible Note 2021. Warrants value was determined with the Black Scholes model. Equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Convertible Note 2021.
Debt issuance costs related to the original Convertible Note 2021 comprised of commissions paid to third party placement agent and lawyers of $667,920 which included original issue discount of $250,000, Investor’s legal and other transaction costs of $25,000 and commission of $392,920. The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2021 based on their relative values. Issuance costs attributable to the liability component were $697,771 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $182,255 and netted with the equity component in stockholders’ equity of $1,092,460 and warrant value of $212,105.
For the year ended June 30, 2022, the Company issued 739,453 ordinary shares (74 ordinary shares retrospectively restated for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) with a fair value of $200,000 for principal and interest partial settlement of the Convertible Note 2021.
For the year ended June 30, 2023, the Company issued 14,042,911 ordinary shares (69,701 ordinary shares retrospectively restated for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) with a fair value of $3,520,000 for principal and interest partial settlement of the Convertible Note 2021.
For the six months ended December 31, 2023, the Company issued 5,263,835 ordinary shares (323,787 ordinary shares retrospectively restated for effect of reverse stock splits on September 25, 2023 and February 14, 2024) with a fair value of $1,680,679 for principal and interest partial settlement of the Convertible Note 2021.
The Convertible Note 2021 was fully repaid and converted on November 10, 2023.
The Convertible Note 2022
On May 13, 2022, the Company entered into a Securities Purchase Agreement with an institutional investor pursuant to which the Company issued an unsecured convertible promissory note with a two-year maturity (the “Convertible Note 2022”) to Investor. The Convertible Note 2022 has the original principal amount of $3,170,000 including the original issue discount of $150,000 and Investor’s legal and other transaction costs of $20,000. The Company anticipates using the proceeds for general working capital purposes.
Material Terms of the Convertible Note 2022:
In accounting for the issuance of the Convertible Note 2022, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component of the Convertible Note and the warrants was $816,765 (equity component $683,393, warrants value $133,372). Equity component was determined by deducting the fair value of the liability component from the par value of the original Convertible Note 2022. Warrants value was determined with the Black Scholes model. Equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Convertible Note 2022.
Debt issuance costs related to the original Convertible Note 2022 comprised of commissions paid to third party placement agent and lawyers of $426,095 which includes original issue discount of $150,000, Investor’s legal and other transaction costs of $20,000 and commission of $256,095. The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2022 based on their relative values. Issuance costs attributable to the liability component were $438,856 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $120,611 and netted with the equity component in stockholders’ equity of $683,393 and warrant value of $133,372.
For the six months ended December 31, 2023, the Company issued 555,629 ordinary shares (111,126 ordinary shares retrospectively restated for effect of reverse stock split on February 14, 2024) with a fair value of $1,800,000 for principal and interest partial settlement of the Convertible Note 2022.
Net carrying amount of the liability component the convertible notes dated as of December 31, 2023 was as follows:
Net carrying amount of the equity component of the convertible notes as of December 31, 2023 was as follows:
Amortization of issuance cost, debt discount and interest cost for the six months ended December 31, 2023 were as follows:
Net carrying amount of the liability component Convertible Notes dated as of June 30, 2023 were as following:
Net carrying amount of the equity component of the Convertible Notes as of June 30, 2023 were as following:
Amortization of issuance cost, debt discount and interest cost for the year ended June 30, 2023 were as follows:
The effective interest rates to derive the liability component fair value were 33.10% and 34.51% for Convertible Note 2021 and Convertible Note 2022, respectively. |
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Warrants |
6 Months Ended |
|---|---|
Dec. 31, 2023 | |
| Warrants Textblock Abstract | |
| Warrants | Note 19 - Warrants
On December 20, 2021 and May 13, 2022, the Company issued warrants to settle the commission of the agent in connection with the issuance of the convertible notes during the year ended June 30, 2022. The warrants entitle the holder to purchase 157,934 ordinary shares (16 shares retrospectively adjusted for effect of the Company’s common reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) at an exercise price equal to $2 per share ($20,000 per share retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) and 386,585 ordinary shares (39 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) of the Company’s common stock at an exercise price equal to $0.49 per share ($4,900 per share retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024), respectively, at any time within a term of five year after issuance. The Company determined that these warrants are free standing financial instruments that are legally detachable and separately exercisable from the common stock of the Company. In accordance with the accounting guidance, the outstanding warrants are recognized as additional paid in capital on the balance sheet and are measured at their inception date fair value.
As of December 31, 2023 and June 30, 2022, the Company had approximately 55 and 55 warrants outstanding, (2,723 retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) respectively at an average exercise price between $0.49 and $2 ($4,900 per share and $20,000 per share retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023 and February 14, 2024) and there were zero warrants exercised or repurchased.
The 2021 warrants were valued using the Black-Scholes value option pricing model with the following inputs: volatility of 117%; risk-free interest rate of 2.04%; expected term of 5 years; exercise price $0.49 and 0% dividend yield.
The 2022 warrants were valued using the Black-Scholes value option pricing model with the following inputs: volatility of 129%; risk-free interest rate of 0.27%; expected term of 5 years; exercise price $2 and 0% dividend yield. |
Taxes |
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| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TAXES | NOTE 20 – TAXES
The Company is registered in the Cayman Islands. The Company generated substantially all of its income from its PRC operations for the six months ended December 31, 2023 and 2022.
Cayman Islands
Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.
Hong Kong
E-Home Hong Kong is not subject to tax on income or capital gain since there has no operations in Hong Kong for the six months ended December 31, 2023 and 2022.
PRC
Income Tax
On March 16, 2007, the National People’s Congress of PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to enterprise income tax (“EIT”) at a uniform rate of 25%. The EIT Law became effective on January 1, 2008. 25% tax rates apply to all the PRC operation subsidiaries in the Company.
The provision for income tax for the six months ended December 31, 2023 and 2022, consisted of the following:
The following table sets forth reconciliation between the statutory EIT rate and the effective tax for the six months ended December 31, 2023 and 2022, respectively:
The significant components of deferred tax assets and liabilities as of December 31, 2023 and June 30, 2023 were as follows:
Value Added Tax (“VAT”)
Business tax changed to VAT in China since May 1, 2016. The Company’s revenue from installation is subject to a VAT rate of 11%. The maintenance and accessories sales were subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019.
According to the regulations (Fiscal and Tax [2016] 36), no VAT will be levied if an enterprise provides employee-based household services. E-Home Pingtan applied for the tax exemption in July 2017 and was approved by the State Administration of Taxation (China), so the VAT rate of installation, maintenance, after-sales and cleaning service is since July 2017.
Taxes payable
As of December 31, 2023 and June 30, 2023, the Company’s has taxes payable balances of $ and $, respectively. |
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Equity |
6 Months Ended |
|---|---|
Dec. 31, 2023 | |
| Equity [Abstract] | |
| EQUITY | NOTE 21 – EQUITY
Ordinary Shares
At the reorganization event described in Note 1, the Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in E-Home Pingtan from the former shareholders to WFOE.
Prior to the reorganization, the Company had $3,620,757 and $3,885,586 in contributed ownership as of June 30, 2019 and 2018, respectively.
The reorganization has been accounted for at historical cost and prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company. On May 23, 2019, the Company split its 50,000 ordinary shares into 500,000,000 ordinary shares. The authorized ordinary shares became 500,000,000 shares and the par value changed from US$1 to US$0.0001. As part of its reorganization and on May 23, 2019, the Company surrendered 472,000,000 ordinary shares. As a result, the Company has 28,000,000 ordinary shares issued and outstanding (28,000 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024).
On May 18, 2021, the Company completed the closing of its initial public offering of 5,575,556 ordinary shares at a public offering price of $4.50 per ordinary share (5578 shares of $45,000 per share retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024). The total gross proceed from the initial public offering was approximately $25.1 million before underwriting commissions and offering expenses. The total net proceed from the initial public offering was $21,661,293 (ordinary shares of $558 and additional paid-in capital of $21,660,735) after deducting the financing expenses directly related to the initial public offering.
On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, the company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company.
On June 21, 2021, the Company granted 6,000 ordinary (1 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) to three of its independent directors (200 shares for each director, 0.2 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) as their compensations at a fair value of $213,840 (ordinary shares of $1 and additional paid-in capital of $213,839).
On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 60% equity interests in Youyou in consideration of in consideration for the sum of (i) RMB4 million (approximately $0.60 million) in cash and (ii) 2,702,826 ordinary shares of the Company (270 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024). On February 3, 2022, the Company issued 2,702,826 ordinary shares to the former controlling shareholders of Youyou at a fair value of $2,000,091 (par value of $270 and additional paid-in capital of $1,999,821).
On January 20, 2022, the Company and E-Home Pingtan entered into an equity transfer agreement to acquire 40% equity interests in Lianbao in consideration of in consideration for 5,823,363 ordinary shares of the Company (582 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024). On March 2, 2022, the Company issued 5,823,363 ordinary shares to the former controlling shareholders of Lianbao.
On March 18, 2022, the Company granted 400,000 ordinary shares (40 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) to its consultants as their compensations at a fair value of $308,000 (par value of $40 and additional paid-in capital of $307,960). On June 22, 2022, the Company granted 1,000,000 ordinary shares (100 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) to its directors as their compensations at a fair value of $322,500 (par value of $100 and additional paid-in capital of $322,400).
On June 14, 2022, the Company and its wholly owned subsidiary, E-Home Hong Kong, entered into an equity transfer agreement with Zhongrun, a limited liability company established in China and Ms. Ling Chen, the sole shareholder of Zhongrun, pursuant to which Ms. Chen agreed to transfer 55% of the equity interests in Zhongrun to E-Home Hong Kong, in consideration for the sum of (i) RMB3 million (approximately $0.45 million) in cash and (ii) 28,041,992 ordinary shares of the Company. On July 8, 2022, the Company issued 28,041,992 ordinary shares (2,804 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) according to the equity transfer agreement at a fair value of $8,496,724 (par value of $2,804 and additional paid-in capital of $8,493,919).
On July 30, 2022, the Company’s board of directors approved to acquire 100% of the equity interests of Chuangying and its subsidiaries from Lin Jianying, in consideration for an aggregate of 14,438,584 ordinary shares (1,444 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) of the Company valued at RMB389.2 million (approximately $5.59 million) with a per share issuance price equal to 130% of the average of the Nasdaq closing price for the consecutive twenty trading days preceding July 26, 2022, or $0.39. Beijing Ningbanghonghe Assets Valuation Firm, a third-party appraiser based in Beijing, China, rendered a valuation report, in which the value of total shareholder equity in Chuangying was determined to be approximately RMB39.2 million.
On August 15, 2022, the Company’s board of directors approved the financing by the Company in the amount of $3,600,000 through the issuance and sale to Multi Rise Holdings Limited, a British Virgin Islands company, of 16,363,636 ordinary shares (1,636 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) of the Company, par value $0.0001 per share, at a per share purchase price of $0.22, pursuant to a securities purchase agreement.
On September 19, 2022, the Company’s board of directors approved for issuance and sale of the Company’s ordinary shares up to an aggregate offering price of US$12,300,000 that the Company may sell to White Lion Capital LLC from time to time at the Company’s sole discretion over the commitment period, plus an aggregate of 1,329,729 of Ordinary Shares issuable to the Investor as commitment fee pursuant to the Purchase Agreement. On September 14, 2022, the Company issued 10,343,064 ordinary shares (1,034 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 13, 2023 and September 25, 2023 and February 14, 2024) to White Lion Capital LLC for the aggregated consideration of $783,303.
On November 18, 2022, the Company entered into a securities purchase agreement with certain investors, pursuant to which each of the investors agreed to purchase and the Company agreed to issue and sell to the investors, an aggregation of 3,480,000 ordinary shares (6,960 shares retrospectively adjusted for effect of reverse stock splits on April 13, 2023, September 25, 2023 and February 14, 2024) of the Company at the subscription price of US$1.00 per share for the aggregated consideration of US$3,480,000.
On December 20, 2022, the Company and its wholly owned subsidiary, E-Home Hong Kong, entered into an equity transfer agreement with Zhongrun, a limited liability company established in China and Ms. Ling Chen, pursuant to which Ms. Chen agreed to transfer 20% of the equity interests in Zhongrun to E-Home Hong Kong, in consideration for RMB20 million. On December 20, 2022, the Company issued 4,660,129 ordinary shares (9,320 shares retrospectively adjusted for effect of reverse stock splits on April 13, 2023, September 25, 2023 and February 14, 2024) at a fair value of $2,853,596 (par value of $9,320 and additional paid-in capital of $2,844,276).
On January 6, 2023, the Company entered into a securities purchase agreement with eleven investors, including two entities and nine individuals, pursuant to which the investors agreed to purchase an aggregate of 40,650,406 ordinary shares (81,301 shares retrospectively adjusted for effect of reverse stock splits on April 13, 2023, September 25, 2023 and February 14, 2024) of the Company for the purchase price of $0.492 per ordinary share, which is the average of the closing prices of the Company’s ordinary shares for the six consecutive trading days prior to January 3, 2023. The Company has received an aggregate of US$20 million proceeds in connection with the investment.
On January 27, 2023, the Company entered into a securities purchase agreement with certain investors, pursuant to which each of the investors agreed to purchase and the Company agreed to issue and sell to the investors an aggregate of 183,077,333 ordinary shares (366,155 shares retrospectively adjusted for effect of reverse stock splits on April 13, 2023, September 25, 2023 and February 14, 2024) at a purchase price of US$0.383 per ordinary share for the aggregate gross proceeds of US$70,118,618 before deducting offering expenses.
On May 15, 2023, the Board approved and adopted the Company’s 2023 Share Incentive Plan which has 6,000,000 shares (120,000 shares retrospectively adjusted for effect of reverse stock splits on September 25, 2023 and February 14, 2024). On July 21, 2023, the Company granted 2,600,000 ordinary shares of $0.02 par value per share (52,000 shares of par value $1 per share retrospectively adjusted for effect of reverse stock splits on September 25, 2023 and February 14, 2024) to its directors as their compensations under the 2023 Share Incentive Plan.
On July 21, 2023, the Company entered into a securities purchase agreement with certain purchasers, pursuant which the Company will sell to the purchasers in a registered direct offering, an aggregate of 107,317,074 ordinary shares of par value $0.02 per share (2,146,341 ordinary shares of par value $1 per share retrospectively adjusted for effect of reverse stock splits on September 25, 2023 and February 14, 2024) for aggregate gross proceeds of $12,000,000, before deducting offering expenses. On July 25, 2023, the Company closed the registered direct offering.
Reverse stock split
On September 8, 2022, the Company’s board of directors approved to effect a one-for-twenty reverse stock split of its ordinary shares with the market effective on September 23, 2022, such that the par value of each ordinary share is increased from US$0.0001 to US$0.002. As a result of the one-for-twenty reverse stock split, each twenty pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split. Each shareholder was entitled to receive one ordinary share in lieu of the fractional share that would have resulted from the reverse stock split.
On April 12, 2023, the Company announced the effect of a one-for-ten reverse stock split of its ordinary shares approved by the Company’s Annual General Meeting of Shareholders with the market effective on April 13, 2023, such that the par value of each ordinary share is increased from US$0.002 to US$0.02. As a result of the one-for-ten reverse stock split, each ten pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
On September 22, 2023, the Company announced the effect of a one-for ten reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders with the market effective on September 25, 2023, such that the par value of each ordinary share is increased from US$0.02 to US$0.2. As a result of the one-for-ten reverse stock split, each ten pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
On February 9, 2024, the Company announced the effect of a one-for-five reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders with the market effective on February 14, 2024, such that the par value of each ordinary share is increased from US$0.2 to US$1. As a result of the one-for-five reverse stock split, each five pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
Statutory Reserve
The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the 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 are 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 entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The reserved amounts as determined pursuant to PRC statutory laws totaled $664,100 and $664,100 as of December 31, 2023 and June 30, 2023.
Dividends
Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with US GAAP. The Company’s ability to pay dividends is primarily from cash received from its operating activities in PRC. For the six months ended December 31, 2023 and 2022, there was no Company dividend declared. |
Revenues |
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| REVENUES | NOTE 22 – REVENUES
The Company disaggregated senior care services revenue into the sale of the E-watch and the care service. Sales of E-watches are recognized in revenue at a point in time while revenue from care service is recognized over a period of time. Deferred portion of care service is recorded as a liability (advances from customers) on the company’s balance sheet.
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Segment Information |
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| Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENT INFORMATION | NOTE 23 – SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the management for decision making. Management has identified five operating segments which are installation and maintenance, housekeeping, senior care services, sales of pharmaceutical products, and educational consulting services. Operations for senior care services began in August 2019. The Company 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 six months ended December 31, 2022.These operating segments are monitored and strategic decisions are made on the basis of segmental profit margins. Segment profit is defined as net sales reduced by cost of revenues and other related operating expenses. The results are shown as follows for the six months ended December 31, 2023 and 2022:
On account of the Company’s business model, assets, operating expense, profit or loss, liabilities and other material items could not be separated into each operating segment. As the Company’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. |
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Commitments and Contingencies |
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| Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | NOTE 24 – COMMITMENTS AND CONTINGENCIES
As of December 31, 2023, the Company had following lease commitments under non-cancelable agreements:
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Customer and Supplier Concentration |
6 Months Ended |
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Dec. 31, 2023 | |
| Customer and Supplier Concentration [Abstract] | |
| CUSTOMER AND SUPPLIER CONCENTRATION | NOTE 25 – CUSTOMER AND SUPPLIER CONCENTRATION
Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchase.
The Company’s sales are made to customers that are located primarily in China. For the six months ended December 31, 2023 and 2022, no individual customer or supplier accounted for more than 10% of the Company’s total revenues or purchase. As of December 31, 2023 and June 30, 2023, no individual customer or supplier accounted for more than 10% of the total outstanding accounts receivable or accounts payable balance. |
Related Party Balances and Transactions |
6 Months Ended |
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Dec. 31, 2023 | |
| Related Party Balances and Transactions [Abstract] | |
| RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 26 – RELATED PARTY BALANCES AND TRANSACTIONS
As of December 31, 2023 and June 30, 2023, the Company had $472,607 and $442,825 payable balances to Mr. Wenshan Xie, our Chairman, CEO and a shareholder of the Company, for temporary working capital needs, respectively. As of December 31, 2023 and June 30, 2023, the Company had $1,265,927 and $1,249,387 payable balances to Ms. Ling Chen, a shareholder of Zhongrun, a major subsidiary of the Company, for temporary working capital needs, respectively.
For the six months ended December 31, 2023, Mr. Xie made payment of $22,902 for purchase of goods and services for the Company and the Company repaid $2,240 to Mr. Xie. For the six months ended December 31, 2022, Mr. Xie made payment of $298,113 for purchase of goods and services for the Company and the Company repaid $22,846 to Mr. Xie.
As of December 31, 2023 and June 30, 2023, the Company had $14,983,280 and $4,295,120 receivable balances from E-Home Group Limited, a company controlled by the CEO and Chairman of the Company, Mr. Wenshan Xie, for temporary lending. The balances were included in due from related parties presented on the Company’s balance sheet. The Company expects to fully collect the balance of due from related parties by June 30, 2024.
For the six months ended December 31, 2023, the Company transferred $10,688,160 to E-Home Group Limited for temporary lending with no interest bearing. For the six months ended December 31, 2022, the Company transferred $2,600,000 and $500,000 to E-Home Group Limited and its consistent voter Lucky Max Global Limited for temporary lending, respectively. |
Subsequent Events |
6 Months Ended |
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Dec. 31, 2023 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 27 – SUBSEQUENT EVENTS
On January 9, 2024, the Compensation Committee of the Board of Directors of the Company granted a stock award of 340,000 ordinary shares of the Company to Mr. Wenshan Xie, Chief Executive Officer of the Company, pursuant to the Company’s 2023 Share Incentive Plans. 50% of the shares vested immediately on the grant date and the remaining 50% of the shares shall vest on six months anniversary of the grant date. Mr. Wenshan Xie also entered into a Stock Award Agreement with the Company on January 9, 2024.
On January 11, 2024, the Company entered into a Securities Purchase Agreement with certain purchasers, pursuant to which the Company agreed to sell to the purchasers in a private placement 20,000,000 ordinary shares of the Company, at a purchase price of $0.68 per share for an aggregate price of $13,600,000. The private placement will be completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended.
On March 21, 2024, the Company entered into a Securities Purchase Agreement with certain purchasers. Pursuant to the purchase agreement, the Company will sell to the purchasers in a registered direct offering, an aggregate of 10,000,000 ordinary shares of the Company at a price of $1.20 per share, for aggregate gross proceeds to the Company of $12,000,000, before deducting offering expenses.
Reverse stock split
On February 9, 2024, the Company announced the effect of a one-for-five reverse stock split of its ordinary shares approved by the Company’s Extraordinary General Meeting of Shareholders with the market effective on February 14, 2024, such that the par value of each ordinary share is increased from US$0.2 to US$1. As a result of the one-for-five reverse stock split, each five pre-split ordinary shares outstanding were automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares were issued to any shareholders in connection with the reverse stock split.
In accordance with ASC 855-10, the Company has analyzed its operations subsequent to December 31, 2023 to the date these financial statements were issued, and has determined that, it does not have any material subsequent events to disclose in these financial statements. |
Accounting Policies, by Policy (Policies) |
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| Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||
| Basis of presentation | Basis of presentation The accompanying condensed 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. |
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| 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, plant and equipment and intangible assets, the recoverability of long-lived assets and goodwill, and provision necessary for contingent liabilities. Actual results could differ from those estimates. |
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| 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. |
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| Accounts receivable, net | Accounts receivable Accounts receivable are recognized and carried at 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 operations and other comprehensive income (loss). 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 December 31, 2023 and June 30, 2023, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $ and $, respectively. |
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| 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 December 31, 2023 and June 30, 2023 were $ and $, respectively. |
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| Prepayments, receivables and other current assets | Prepayments, receivables and other current assets Prepayments, receivables 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 December 31, 2023 and June 30, 2023 were $ and $, respectively. |
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| Inventories | Inventories Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs and is determined by the weighted-average method. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost and other costs related to selling the inventories. For the six months ended December 31, 2023 and 2022, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively.
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| Property, plant and equipment, net | Property, plant and equipment, net Property, plant 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:
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) in other income or expenses. |
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| 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. |
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| 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 (“ASC 350-20”), which requires that goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. 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.
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| 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. |
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| 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. |
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| 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). |
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| 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. |
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| 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. |
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| 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. |
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| 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, time deposits, accounts receivable, prepaid expenses 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:
The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, advances to suppliers, prepayment, receivables and other current assets, due from related parties, loan receivables, accounts payable and advances from customers to approximate the fair value of the respective assets and liabilities as of December 31, 2023 and June 30, 2023 owing to their short-term or immediate nature. |
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| Revenue recognition | Revenue recognition The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers (ASC 606) beginning January 1, 2018 and elected to adopt ASC 606 under the modified retrospective method. This guidance was applied retrospectively to the most current period presented in the Company’s consolidated financial statements. The adoption of ASC 606 did not have a material impact on the consolidated financial statements of the Company. 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. The Company does not have amounts of contract assets since revenue is recognized as control of goods or services is transferred. The contract liabilities consist of advance payments from customers. The contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. All contract liabilities are included in advance from customers in the condensed consolidated balance sheets. As of December 31, 2023 and June 30, 2023, the Company record advance from customers of $1,532,624 and $2,123,540, respectively. 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 to its customers, which are mainly pharmaceutical stores 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. |
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| Cost of revenues | Cost of revenues Cost of revenues consists of service fees paid to staff, outlets, suppliers and the cost of products sold. |
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| 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 six months ended December 31, 2023 and 2022, the Company received government subsidies of $ and $43,616, respectively. The grants were recorded as other income (loss), net in the condensed consolidated financial statements. |
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| 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. |
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| 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. |
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| 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.
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| 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 for the six months ended December 31, 2023 was 55 shares. There were no potentially dilutive ordinary shares for the six months ended December 31, 2022. |
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| Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income (loss) is reported in the consolidated statements of operations and other comprehensive income. Accumulated other comprehensive income (loss), as presented on the accompanying consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
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| Foreign currency translation | Foreign currency translation 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 income (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:
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| 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 in July 2023. |
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| 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 to 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 income (loss). 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. |
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| 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 December 31, 2023 and June 30, 2023. |
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| 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 December 31, 2023 and June 30, 2023, the RMB denominated cash and cash equivalents amounted to $74,304,547 and $71,240,361, 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. |
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| 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. |
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| 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 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. In July 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 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 September 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The Board is issuing the amendments in this Update to enhance the transparency and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The Board decided that the amendments should be effective for public business entities for annual periods beginning after December 15, 2024. 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 operations and other comprehensive income (loss) and statements of cash flows. |
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Organization and Nature of Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization and Nature of Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Acquisition of Non-Controlling Interest | The transaction to acquire the remaining 33% equity interests of HAPPY was closed in August
2021 and after the acquisition, E-Home Pingtan owns 100% of the equity interest of HAPPY.
|
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| Schedule of Major Consolidated Subsidiaries | The Company’s major consolidated subsidiaries
as of December 31, 2023 are as follows:
|
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Significant Accounting Policies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||
| Schedule of Estimated Useful Lives of the Assets | Depreciation is provided on the straight-line
method based on the estimated useful lives of the assets as follows:
|
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| Schedule of Outlines the Currency Exchange Rates | The following table outlines
the currency exchange rates that were used in the consolidated financial statements:
|
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Business Combinations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Acquisition | According
to the independent valuation reports, the purchase prices allocation to the assets acquired and liabilities assumed based on their fair
values as of December 31, 2023 and June 30, 2023 were as follows:
|
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Accounts Receivable, Net (Tables) |
6 Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||
| Accounts Receivable, Net [Abstract] | |||||||||||||||||||
| Schedule of Accounts Receivable | Accounts receivable consisted of the following as of December 31, 2023
and June 30, 2023:
|
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Prepayment, Receivables and Other Current Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepayment, Receivables and Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepayment, Receivables and Other Current Assets | Prepayments, receivables and other current assets
as of December 31, 2023 and June 30, 2023, consisted of the following:
|
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| Schedule of Several Agreements with its Suppliers |
|
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Property, Plant and Equipment, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the
following as of December 31, 2023 and June 30, 2023:
|
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Intangible Assets, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangible Assets, Net | Intangible assets consisted of the following as of December 31, 2023
and June 30, 2023:
|
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| Schedule of Estimated Future Amortization Expense | Estimated future amortization expense is as follows as of December
31, 2023:
|
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Operating Lease Right-of-Use Assets, Net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Lease Right-of-Use Assets, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Lease Right -Of-Use Assets | Operating lease right -of-use assets, net, were as follows as of December
31, 2023 and June 30, 2023:
|
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Finance Lease Right-of-Use Assets, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance Lease Right-of-Use Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finance Lease Right -of-Use Assets | Finance lease right -of-use assets, net, were as follows as of December
31, 2023 and June 30, 2023:
|
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Long-Term Deposits and Other Non-Current Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Prepayments and Other Non-Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Long-Term Deposits and Other Non-Current Assets | Long-term deposits and other non-current assets
as of December 31, 2023 and June 30, 2023 consisted of the following:
|
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Accounts Payable and Accrued Expenses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Payable and Accrued Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accounts payable and accrued expenses | The following is a summary of accounts payable and accrued expenses
as of December 31, 2023 and June 30, 2023:
|
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Advances from Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||
| Advance from Customers [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Advances from Customers | Advance from customers as of December 31, 2023 and June 30, 2023 consisted
of the following:
|
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Operating Lease Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Lease Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Lease Liabilities | Operating lease liabilities as of December 31, 2023 and June 30, 2023
consisted of the following:
|
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| Schedule of Analyzed for Reporting Purposes | Analyzed for reporting purposes as:
|
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| Schedule of Maturity Analysis of Operating Lease Liabilities | Maturity analysis of operating lease liabilities as of December 31,
2023 is as follows:
|
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Finance Lease Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance Lease Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financing Lease Liabilities | Financing lease liabilities as of December 31,
2023 and June 30, 2023 consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financing Lease Liabilities for Reporting Purposes | Analyzed for reporting purposes as:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Maturity Analysis of Financial Lease Liabilities | Maturity analysis of financial lease liabilities
as of June 30, 2023 is as follows:
|
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Convertible Note (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Liability Component the Convertible Notes | Net carrying amount of the liability component
the convertible notes dated as of December 31, 2023 was as follows:
|
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| Schedule of Equity Component of the Convertible Notes | Net carrying amount of the equity component of
the convertible notes as of December 31, 2023 was as follows:
|
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| Schedule of Amortization of Issuance Cost, Debt Discount and Interest Cost | Amortization of issuance cost, debt discount and
interest cost for the six months ended December 31, 2023 were as follows:
Amortization of issuance cost, debt discount and interest cost for the year ended June 30, 2023 were as follows:
|
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Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Provision for Income Tax | The provision for income tax for the
six months ended December 31, 2023 and 2022, consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Statutory EIT Rate and the Effective Tax | The following table sets forth reconciliation
between the statutory EIT rate and the effective tax for the six months ended December 31, 2023 and 2022, respectively:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Deferred Tax Asset | The significant components of deferred tax assets
and liabilities as of December 31, 2023 and June 30, 2023 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenues | The Company disaggregated senior care services
revenue into the sale of the E-watch and the care service. Sales of E-watches are recognized in revenue at a point in time while revenue
from care service is recognized over a period of time. Deferred portion of care service is recorded as a liability (advances from customers)
on the company’s balance sheet.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Segments Information | The results are shown
as follows for the six months ended December 31, 2023 and 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Commitments under Non-Cancelable Agreements | As of December 31, 2023, the Company had following lease commitments
under non-cancelable agreements:
|
||||||||||||||||||||||||||||||||||||||||
Organization and Nature of Operations (Details) - $ / shares |
6 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2023 |
Feb. 09, 2024 |
Sep. 22, 2023 |
Apr. 13, 2023 |
Sep. 08, 2022 |
|
| Organization and Nature of Operations [Line Items] | |||||
| Acquisition of interest, description | the Company’s PRC subsidiary, E-Home Pingtan entered into an equity transfer agreement to acquire the remaining 33% equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“HAPPY”) in consideration of $466,888 (RMB 3,000,000), with $54,462 (RMB 350,000) paid in August 2021 and $412,427 (RMB 2,650,000) paid in March 2022. The transaction to acquire the remaining 33% equity interests of HAPPY was closed in August 2021 and after the acquisition, E-Home Pingtan owns 100% of the equity interest of HAPPY. | ||||
| Minimum [Member] | |||||
| Organization and Nature of Operations [Line Items] | |||||
| Ordinary share, par value | $ 0.02 | $ 0.002 | $ 0.0001 | ||
| Minimum [Member] | Subsequent Event [Member] | |||||
| Organization and Nature of Operations [Line Items] | |||||
| Ordinary share, par value | $ 0.2 | ||||
| Maximum [Member] | |||||
| Organization and Nature of Operations [Line Items] | |||||
| Ordinary share, par value | $ 0.2 | $ 0.02 | $ 0.002 | ||
| Maximum [Member] | Subsequent Event [Member] | |||||
| Organization and Nature of Operations [Line Items] | |||||
| Ordinary share, par value | $ 1 |
Organization and Nature of Operations (Details) - Schedule of Acquisition of Non-Controlling Interest |
Dec. 31, 2023
USD ($)
|
|---|---|
| Schedule Of Acquisition Of Non Controlling Interest [Abstract] | |
| Purchase consideration | $ 466,888 |
| Noncontrolling interests | (14,558) |
| Additional paid-in capital | 481,446 |
| Total | $ 466,888 |
Organization and Nature of Operations (Details) - Schedule of Major Consolidated Subsidiaries |
6 Months Ended |
|---|---|
Dec. 31, 2023 | |
| E-Home Household Service Holdings Limited [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Oct. 16, 2018 |
| Place of Organization | Hong Kong |
| % of Ownership | 100.00% |
| E-Home Household Service Technology Co., Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Dec. 05, 2018 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Apr. 01, 2014 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Fuzhou Bangchang Technology Co. Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Mar. 15, 2007 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”) [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Oct. 12, 2004 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Fujian Happiness Yijia Family Service Co., Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Jan. 19, 2015 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Yaxing Human Resource Management (Pingtan)Co., Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Jul. 06, 2018 |
| Place of Organization | PRC |
| % of Ownership | 51.00% |
| Fuzhou Gulou Jiajiale Family Service Co. Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Feb. 28, 2019 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Yaxin Human Resource Management (Fuzhou) Co., Ltd. [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Sep. 10, 2021 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
| Zhongrun (Fujian) Pharmaceutical Co., Ltd. (“Zhongrun”) [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Jan. 13, 2017 |
| Place of Organization | PRC |
| % of Ownership | 75.00% |
| Fujian Chuangying Business School Co., Ltd. (“Chuangying”) [Member] | |
| Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
| Date of Incorporation | Sep. 09, 2013 |
| Place of Organization | PRC |
| % of Ownership | 100.00% |
Significant Accounting Policies (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
| Significant Accounting Policies [Line Items] | |||
| Allowance for doubtful accounts | |||
| Allowance for advances to suppliers | |||
| Allowance for prepayments, deposits and other amount | |||
| Advance from customers | 1,532,624 | 2,123,540 | |
| Company received government subsidies | $ 43,616 | ||
| Diluted ordinary shares (in Shares) | 55 | ||
| Cash and cash equivalents | $ 74,304,547 | $ 71,240,361 | |
| Deposit [Member] | |||
| Significant Accounting Policies [Line Items] | |||
| Allowance for prepayments, deposits and other amount | |||
Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets |
Dec. 31, 2023 |
|---|---|
| Buildings [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 20 years |
| Office and electronic equipment [Member] | Minimum [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 3 years |
| Office and electronic equipment [Member] | Maximum [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 5 years |
| Motor Vehicles [Member] | Minimum [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 4 years |
| Motor Vehicles [Member] | Maximum [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 10 years |
| Machinery [Member] | Minimum [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 5 years |
| Machinery [Member] | Maximum [Member] | |
| Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets [Line Items] | |
| Useful Lives | 10 years |
Significant Accounting Policies (Details) - Schedule of Outlines the Currency Exchange Rates |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|---|
| Schedule of Outlines the Currency Exchange Rates [Abstract] | |||
| Year-end spot rate | 7.0827 | 7.2258 | 6.9646 |
| Average rate | 7.1423 | 6.989 | 7.0087 |
Business Combinations (Details) |
12 Months Ended |
|---|---|
|
Jun. 30, 2023
USD ($)
| |
| Goodwill [Member] | |
| Business Combinations (Details) [Line Items] | |
| Goodwill | $ 8,846,867 |
| Business Combination [Member] | |
| Business Combinations (Details) [Line Items] | |
| Total purchase | $ 17,374,118 |
| Zhongrun [Member] | |
| Business Combinations (Details) [Line Items] | |
| Ownership percentage | 75.00% |
| Chuangying [Member] | |
| Business Combinations (Details) [Line Items] | |
| Ownership percentage | 100.00% |
Business Combinations (Details) - Schedule of Acquisition |
12 Months Ended |
|---|---|
|
Jun. 30, 2023
USD ($)
| |
| Zhongrun [Member] | |
| Fair value of total consideration transferred: | |
| Equity instrument | $ 11,350,319 |
| Cash consideration | 430,750 |
| Total consideration | 11,781,069 |
| Recognized amounts of identifiable assets acquired and liability assumed: | |
| Intangible assets - customer relationships | 6,321,792 |
| Deferred tax liabilities | (1,580,448) |
| Total identifiable net assets | 8,624,393 |
| Fair value of non-controlling interest | 2,156,098 |
| Goodwill | 5,312,774 |
| Impairment loss | (5,312,774) |
| Goodwill, net | |
| Chuangying [Member] | |
| Fair value of total consideration transferred: | |
| Equity instrument | 5,593,049 |
| Total consideration | 5,593,049 |
| Recognized amounts of identifiable assets acquired and liability assumed: | |
| Intangible assets - copyrights and trademarks | 242,556 |
| Recognized amounts of identifiable assets acquired and liability assumed: | |
| Intangible assets - customer relationships | 1,426,798 |
| Deferred tax liabilities | (417,338) |
| Total identifiable net assets | 2,058,956 |
| Fair value of non-controlling interest | |
| Goodwill | 3,534,093 |
| Impairment loss | (3,534,093) |
| Goodwill, net |
Business Combinations (Details) - Schedule of Acquisition (Parentheticals) |
Jun. 30, 2023
shares
|
|---|---|
| Zhongrun [Member] | |
| Business Acquisition [Line Items] | |
| Ordinary shares issued | 32,702,121 |
| Reverse stock split | 3,270 |
| Chuangying [Member] | |
| Business Acquisition [Line Items] | |
| Ordinary shares issued | 14,438,584 |
| Reverse stock split | 1,444 |
Accounts Receivable, Net (Details) |
6 Months Ended |
|---|---|
|
Dec. 31, 2023
USD ($)
| |
| Accounts Receivable, Net [Abstract] | |
| Accounts receivable amount | $ 84,600 |
| Total balance rate | 12.00% |
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Schedule of Accounts Receivable [Abstract] | ||
| Accounts receivable | $ 697,359 | $ 1,018,691 |
Prepayment, Receivables and Other Current Assets (Details) |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
|
Dec. 31, 2023
USD ($)
|
Jun. 30, 2023
CNY (¥)
|
Dec. 31, 2022
USD ($)
|
|
| Prepayment, Receivables and Other Current Assets [Line Items] | |||
| Contract period, description | Prepaid marketing fees are amortized during the contract periods which are within 1 year. | ||
| Receivable amount | $ 847,135 | ¥ 6,000,000 | $ 830,358 |
| Fuzhou Fumao [Member] | |||
| Prepayment, Receivables and Other Current Assets [Line Items] | |||
| Ownership percentage | 20.00% | ||
Prepayment, Receivables and Other Current Assets (Details) - Schedule of Prepayment, Receivables and Other Current Assets - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
||||
|---|---|---|---|---|---|---|
| Schedule of Prepayments, Deposits and Other Current Assets [Abstract] | ||||||
| Prepaid for marketing fee | [1] | $ 282,378 | $ 4,220,986 | |||
| Receivable from equity transfer | [2] | 847,135 | 830,358 | |||
| Tax receivable | 568,823 | 564,158 | ||||
| Other prepaid expenses and current assets | 466,098 | 601,694 | ||||
| Total prepayments, deposits and other current assets | $ 2,164,434 | $ 6,217,196 | ||||
| ||||||
Prepayment, Receivables and Other Current Assets (Details) - Schedule of Several Agreements with its Suppliers - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Schedule of Several Agreements with its Suppliers [Abstract] | ||
| Beginning balance | $ 4,220,986 | $ 1,865,219 |
| Marketing fees paid | 8,155,673 | |
| Amortization of marketing fees | (3,990,311) | (5,560,187) |
| Foreign exchange difference | 51,703 | (239,719) |
| Ending balance | $ 282,378 | $ 4,220,986 |
Property, Plant and Equipment, Net (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Property, Plant and Equipment,Net [Line Items] | ||
| Depreciation expense | $ 219,759 | $ 613,247 |
| Property and equipment | 885,343 | |
| Interest acquired | 885,343 | |
| Cost | 351,297 | 551,389 |
| Accumulated depreciation | 289,874 | $ 424,940 |
| Disposed office and electronic equipment,machinery | $ 61,423 | |
| Disposed property, plant and equipment | $60,910 | |
| Property, Plant and Equipment, Other Types [Member] | ||
| Property, Plant and Equipment,Net [Line Items] | ||
| Interest acquired | $ 126,449 | |
Property, Plant and Equipment, Net (Details) - Schedule of Property, Plant and Equipment - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Schedule of Property, Plant and Equipment [Line Items] | ||
| Total property and equipment, at cost | $ 5,573,819 | $ 5,807,776 |
| Less: accumulated depreciation | (947,094) | (995,252) |
| Property and equipment, net | 4,626,725 | 4,812,524 |
| Buildings and Improvements [Member] | ||
| Schedule of Property, Plant and Equipment [Line Items] | ||
| Total property and equipment, at cost | 5,026,718 | 4,963,911 |
| Motor Vehicles [Member] | ||
| Schedule of Property, Plant and Equipment [Line Items] | ||
| Total property and equipment, at cost | 344,015 | 337,202 |
| Office and Electronic Equipment [Member] | ||
| Schedule of Property, Plant and Equipment [Line Items] | ||
| Total property and equipment, at cost | 127,080 | 330,232 |
| Machinery [Member] | ||
| Schedule of Property, Plant and Equipment [Line Items] | ||
| Total property and equipment, at cost | $ 76,006 | $ 176,431 |
Intangible Assets, Net (Details) $ / shares in Units, ¥ in Millions |
1 Months Ended | 6 Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Feb. 14, 2024
shares
|
Sep. 25, 2023
shares
|
Jul. 21, 2023
shares
|
Apr. 13, 2023
shares
|
Sep. 23, 2022
shares
|
Sep. 22, 2022
shares
|
Jul. 26, 2022
$ / shares
|
Jul. 08, 2022
USD ($)
shares
|
Jul. 08, 2022
USD ($)
shares
|
Jun. 22, 2022
USD ($)
|
Jun. 21, 2021
USD ($)
|
Dec. 20, 2022
USD ($)
shares
|
Jul. 30, 2022
USD ($)
$ / shares
shares
|
Jul. 30, 2022
CNY (¥)
shares
|
Mar. 18, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
shares
|
Dec. 31, 2022
USD ($)
|
Aug. 15, 2022
shares
|
|
| Intangible Assets, Net [Line Items] | ||||||||||||||||||
| Agreement fair value | $ 8,496,724 | $ 8,496,724 | ||||||||||||||||
| Ordinary share par value | 2,804 | $ 1 | ||||||||||||||||
| Additional paid-in capital | $ 8,493,919 | $ 8,493,919 | $ 322,400 | $ 2,844,276 | $ 307,960 | |||||||||||||
| Ordinary shares issued (in Shares) | shares | 2,600,000 | 2 | 16,363,636 | |||||||||||||||
| Reverse stock split shares (in Shares) | shares | 81,301 | 81,301 | 120,000 | 81,301 | 1,636 | 0.2 | 2,804 | |||||||||||
| Intangible asset | $ 6,321,792 | |||||||||||||||||
| Useful life | 5 years | |||||||||||||||||
| Amortization expenses of intangible assets | $ 17,872 | $ 716,974 | ||||||||||||||||
| Customer Relationships [Member] | ||||||||||||||||||
| Intangible Assets, Net [Line Items] | ||||||||||||||||||
| Useful life | 10 years | |||||||||||||||||
| Purchase price amount | $ 1,426,798 | |||||||||||||||||
| Copyrights And Trademarks [Member] | ||||||||||||||||||
| Intangible Assets, Net [Line Items] | ||||||||||||||||||
| Useful life | 5 years | |||||||||||||||||
| Purchase price amount | $ 242,556 | |||||||||||||||||
| E Home Hong Kong [Member] | ||||||||||||||||||
| Intangible Assets, Net [Line Items] | ||||||||||||||||||
| Transfer Agreement Description | the Company and its wholly owned subsidiary, E-Home Hong Kong, entered into equity transfer agreements with Zhongrun, a limited liability company established in China and Ms. Ling Chen, pursuant to which Ms. Chen agreed to transfer 55% and 20% of the equity interests in Zhongrun to E-Home Hong Kong, in consideration for the sum of (i) RMB3 million (approximately $0.453 million, not paid) in cash and (ii) 28,041,992 ordinary shares of the Company | |||||||||||||||||
| Ordinary shares issued (in Shares) | shares | 28,041,992 | |||||||||||||||||
| Reverse stock splits (in Shares) | shares | 2,804 | |||||||||||||||||
| Agreement fair value | 2,853,596 | |||||||||||||||||
| Ordinary share par value | 9,320 | |||||||||||||||||
| Additional paid-in capital | $ 2,844,276 | |||||||||||||||||
| Ordinary shares issued (in Shares) | shares | 4,660,129 | |||||||||||||||||
| Ms. Chen [Member] | ||||||||||||||||||
| Intangible Assets, Net [Line Items] | ||||||||||||||||||
| Reverse stock split shares (in Shares) | shares | 9,320 | |||||||||||||||||
| Mr. Xie [Member] | ||||||||||||||||||
| Intangible Assets, Net [Line Items] | ||||||||||||||||||
| Reverse stock split shares (in Shares) | shares | 1,444 | |||||||||||||||||
| Equity interest percentage | 100.00% | 100.00% | ||||||||||||||||
| Aggregate shares (in Shares) | shares | 14,438,584 | 14,438,584 | ||||||||||||||||
| Stock split value | $ 5,590,000 | ¥ 39.2 | ||||||||||||||||
| Issuance price percentage | 130.00% | 130.00% | ||||||||||||||||
| Average closing price per share (in Dollars per share) | $ / shares | $ 0.39 | $ 0.39 | ||||||||||||||||
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - USD ($) |
6 Months Ended | 12 Months Ended |
|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
|
| Finite-Lived Intangible Assets [Line Items] | ||
| Less: accumulated amortization | $ (1,504,307) | $ (1,485,359) |
| Less: impairment | (6,551,529) | (6,551,529) |
| Intangible assets, net | 13,942 | 31,332 |
| Customer relationships [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, gross | 7,748,590 | 7,748,590 |
| Copyrights and trademarks [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, gross | 242,556 | 242,556 |
| Software [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, gross | 36,276 | 35,556 |
| Senior care service App [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, gross | $ 42,356 | $ 41,518 |
Intangible Assets, Net (Details) - Schedule of Estimated Future Amortization Expense |
Jun. 30, 2023
USD ($)
|
|---|---|
| Schedule of Estimated Future Amortization Expense [Abstract] | |
| 2024 | $ 13,942 |
| Total | $ 13,942 |
Operating Lease Right-of-Use Assets, Net (Details) |
6 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2022
CNY (¥)
|
Jul. 07, 2021
USD ($)
m²
|
Jul. 07, 2021
CNY (¥)
m²
|
Dec. 01, 2016
USD ($)
|
Dec. 01, 2016
CNY (¥)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
| Operating Lease Right of Use Assets, Net [Line Items] | ||||||||
| Acers (in Square Meters) | m² | 74 | 74 | ||||||
| Obtain right of use amount | $ 2,319,791 | ¥ 15,000,000 | ||||||
| Paid installment | $ 2,319,791 | ¥ 15,000,000 | ||||||
| Warehouse | $ 7,199.38 | |||||||
| Square meters | $ 2,127,121 | ¥ 14,814,544 | ||||||
| Lease contract period | 9 years | |||||||
| Operating lease right-of-use assets | $ 304,163 | $ 430,914 | ||||||
| Interest lease liability | $ 34,683 | |||||||
| Maximum [Member] | Shou Hill Valley Area and Villas [Member] | ||||||||
| Operating Lease Right of Use Assets, Net [Line Items] | ||||||||
| Number of operating leases right-of-use assets | 20 years | |||||||
| Maximum [Member] | Base Station Tower [Member] | ||||||||
| Operating Lease Right of Use Assets, Net [Line Items] | ||||||||
| Number of operating leases right-of-use assets | 10 years | |||||||
| Minimum [Member] | Shou Hill Valley Area and Villas [Member] | ||||||||
| Operating Lease Right of Use Assets, Net [Line Items] | ||||||||
| Number of operating leases right-of-use assets | 12 years 6 months | |||||||
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets - USD ($) |
6 Months Ended | |||||
|---|---|---|---|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
|||||
| Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets [Line Items] | ||||||
| Beginning balance of total right-of-use assets, at cost | $ 7,305,792 | $ 7,161,109 | ||||
| Increase/(Decrease) in right-of-use assets, at cost | ||||||
| Exchange rate translation of right-of-use assets, at cost | 144,683 | |||||
| Ending balance of total right-of-use assets, at cost | 7,305,792 | 7,161,109 | ||||
| Beginning balance of accumulated lease expense | (1,526,807) | |||||
| Increase /(Decrease) in accumulated lease expense | (338,846) | |||||
| Exchange rate translation accumulated lease expense | 6,146 | |||||
| Ending balance of accumulated lease expense | (1,859,507) | |||||
| Beginning balance of Operating lease right-of-use assets, net | 5,446,285 | 5,634,302 | ||||
| Increase /(Decrease) in Operating lease right-of-use assets, net | (338,846) | |||||
| Exchange rate translation of Operating lease right-of-use assets, net | 150,829 | |||||
| Ending balance of Operating lease right-of-use assets, net | 5,446,285 | 5,634,302 | ||||
| Shou Hill Valley Area [Member] | ||||||
| Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets [Line Items] | ||||||
| Beginning balance of total right-of-use assets, at cost | 2,117,836 | 2,075,895 | ||||
| Increase/(Decrease) in right-of-use assets, at cost | ||||||
| Exchange rate translation of right-of-use assets, at cost | 41,941 | |||||
| Ending balance of total right-of-use assets, at cost | 2,117,836 | 2,075,895 | ||||
| Villas [Member] | ||||||
| Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets [Line Items] | ||||||
| Beginning balance of total right-of-use assets, at cost | 2,090,339 | 2,048,942 | ||||
| Increase/(Decrease) in right-of-use assets, at cost | ||||||
| Exchange rate translation of right-of-use assets, at cost | 41,397 | |||||
| Ending balance of total right-of-use assets, at cost | 2,090,339 | 2,048,942 | ||||
| Farmland [Member] | ||||||
| Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets [Line Items] | ||||||
| Beginning balance of total right-of-use assets, at cost | [1] | 2,117,836 | 2,075,895 | |||
| Increase/(Decrease) in right-of-use assets, at cost | [1] | |||||
| Exchange rate translation of right-of-use assets, at cost | [1] | 41,941 | ||||
| Ending balance of total right-of-use assets, at cost | [1] | 2,117,836 | 2,075,895 | |||
| Warehouse [Member] | ||||||
| Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets [Line Items] | ||||||
| Beginning balance of total right-of-use assets, at cost | [2] | 733,073 | 718,555 | |||
| Increase/(Decrease) in right-of-use assets, at cost | [2] | |||||
| Exchange rate translation of right-of-use assets, at cost | [2] | 14,518 | ||||
| Ending balance of total right-of-use assets, at cost | [2] | 733,073 | 718,555 | |||
| Base Station Tower [Member] | ||||||
| Operating Lease Right-of-Use Assets, Net (Details) - Schedule of Operating Lease Right -of-Use Assets [Line Items] | ||||||
| Beginning balance of total right-of-use assets, at cost | 246,708 | 241,822 | ||||
| Increase/(Decrease) in right-of-use assets, at cost | ||||||
| Exchange rate translation of right-of-use assets, at cost | 4,886 | |||||
| Ending balance of total right-of-use assets, at cost | $ 246,708 | $ 241,822 | ||||
| ||||||
Finance Lease Right-of-Use Assets, Net (Details) |
Jul. 01, 2023 |
|---|---|
| Finance Lease Right-of-Use Assets, Net [Abstract] | |
| Term of right of use asset of financial lease | 10 years |
| Percentage of financial lease discount rate | 4.90% |
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of Finance Lease Right -of-Use Assets |
6 Months Ended |
|---|---|
|
Dec. 31, 2023
USD ($)
| |
| Finance Lease Right-of-Use Assets, Net (Details) - Schedule of Finance Lease Right -of-Use Assets [Line Items] | |
| Beginning balance of accumulated amortization | $ (788,840) |
| Increase /(Decrease) of accumulated amortization | 798,062 |
| Exchange Rate Translation of accumulated amortization | (9,222) |
| Ending balance of accumulated amortization | |
| Beginning balance of Finance lease right-of-use assets, net | 871,876 |
| Increase /(Decrease) of Finance lease right-of-use assets, net | (882,069) |
| Exchange Rate Translation of Finance lease right-of-use assets, net | 10,193 |
| Ending balance of Finance lease right-of-use assets, net | |
| Company vehicles [Member] | |
| Finance Lease Right-of-Use Assets, Net (Details) - Schedule of Finance Lease Right -of-Use Assets [Line Items] | |
| Beginning balance of company vehicles | 1,660,716 |
| Increase /(Decrease) of company vehicles | (1,680,131) |
| Exchange Rate Translation of company vehicles | 19,415 |
| Ending balance of company vehicles |
Long-Term Deposits and Other Non-Current Assets (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Jan. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Long-Term Prepayments and Other Non-Current Assets [Abstract] | |||
| Investment Committee | $ 60,000,000 | $ 385,524 | $ 375,846 |
Long-Term Deposits and Other Non-Current Assets (Details) - Schedule of Long-Term Deposits and Other Non-Current Assets - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
||||
|---|---|---|---|---|---|---|
| Schedule of Long Term Prepayments and Other Non Current Assets [Abstract] | ||||||
| Deposits paid for land use right | [1] | $ 60,000,000 | $ 60,000,000 | |||
| Performance deposits | [2] | 1,937,502 | ||||
| Deposits paid for lease assets | 768,022 | 936,835 | ||||
| Total | $ 60,768,022 | $ 62,874,337 | ||||
| ||||||
Goodwill (Details) |
12 Months Ended |
|---|---|
|
Jun. 30, 2023
USD ($)
| |
| Goodwill [Line Items] | |
| Allocated goodwill | $ 17,374,118 |
| Series of Individually Immaterial Business Acquisitions [Member] | |
| Goodwill [Line Items] | |
| Purchase consideration amount | $ 8,846,867 |
Accounts Payable and Accrued Expenses (Details) - Schedule of Accounts Payable and Accrued expenses - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Schedule of Accounts Payable and Accrued Expenses [Abstract] | ||
| Payable to suppliers | $ 3,329,799 | $ 3,824,516 |
| Salary and welfare payables | 1,684,693 | 497,274 |
| Accrued expenses and other current liabilities | 309,853 | 2,968,530 |
| Total | $ 5,324,345 | $ 7,290,320 |
Advances from Customers (Details) - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Senior Care Services [Member] | ||
| Advances from Customers (Details) [Line Items] | ||
| Advances from customers | $ 1,165,184 | $ 1,805,609 |
| Housekeeping Services [Member] | ||
| Advances from Customers (Details) [Line Items] | ||
| Advances from customers | $ 367,440 | $ 317,931 |
Advances from Customers (Details) - Schedule of Advances from Customers - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Advances from Customers (Details) - Schedule of Advances from Customers [Line Items] | ||
| Advance from customers total | $ 1,532,624 | $ 2,123,540 |
| Senior care services [Member] | ||
| Advances from Customers (Details) - Schedule of Advances from Customers [Line Items] | ||
| Advance from customers total | 1,165,184 | 1,805,609 |
| Housekeeping services [Member] | ||
| Advances from Customers (Details) - Schedule of Advances from Customers [Line Items] | ||
| Advance from customers total | $ 367,440 | $ 317,931 |
Operating Lease Liabilities (Details) |
1 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
|
Oct. 31, 2021
USD ($)
|
Oct. 31, 2021
CNY (¥)
|
Nov. 25, 2019 |
Dec. 22, 2017 |
Dec. 31, 2023
USD ($)
|
Dec. 31, 2023
CNY (¥)
|
Dec. 31, 2022
USD ($)
|
|
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Discount rate of lease liabilities | 4.45% | 4.45% | |||||
| Weighted average discount rate | 3.79% | 3.79% | |||||
| Weighted average remaining operating leases | 11 years 7 months 2 days | 11 years 7 months 2 days | |||||
| Operating lease expense | $ 2,319,791 | ¥ 15,000,000 | |||||
| Total lease expense | $ 2,321,945 | ¥ 15,000,000 | |||||
| Operating lease costs (in Dollars) | 338,846 | $ 234,404 | |||||
| Short-term operating lease expense (in Dollars) | $ 3,990,311 | $ 1,284,118 | |||||
| Operating lease liabilities Interest rate | 3.14% | 4.12% | |||||
| Installments paid duration | 5 years | 5 years | |||||
| Operating lease first installment (in Dollars) | $ 61,919 | ||||||
| Operating lease | 1 year 11 months 1 day | 1 year 11 months 1 day | |||||
| Villas Member | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Discount rate of lease liabilities | 4.12% | 4.12% | |||||
| Operating lease first installment (in Dollars) | $ 696,584 | ||||||
| Base Station Tower [Member] | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Discount rate of lease liabilities | 3.14% | 3.14% | |||||
| Minimum [Member] | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Incremental borrowing rate | 3.70% | 3.70% | |||||
| Maximum [Member] | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Incremental borrowing rate | 4.80% | 4.80% | |||||
| Warehouse [Member] | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Discount rate of lease liabilities | 4.45% | 4.45% | |||||
| Villas Member | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Lease expiration date | Dec. 31, 2037 | Dec. 31, 2037 | |||||
| Base Station Tower [Member] | |||||||
| Operating Lease Liabilities (Details) [Line Items] | |||||||
| Lease expiration date | Nov. 24, 2029 | Nov. 24, 2029 | |||||
Operating Lease Liabilities (Details) - Schedule of Operating Lease Liabilities - USD ($) |
6 Months Ended | 12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
||||||||
| Operating Lease Liabilities (Details) - Schedule of Operating Lease Liabilities [Line Items] | |||||||||
| Total operating lease liabilities | $ 1,896,477 | $ 1,952,746 | |||||||
| Villas [Member] | |||||||||
| Operating Lease Liabilities (Details) - Schedule of Operating Lease Liabilities [Line Items] | |||||||||
| Operating lease liabilities | 1,241,841 | [1] | 1,192,898 | ||||||
| Warehouse [Member] | |||||||||
| Operating Lease Liabilities (Details) - Schedule of Operating Lease Liabilities [Line Items] | |||||||||
| Operating lease liabilities | 497,248 | [2] | 607,870 | ||||||
| Base Station Tower [Member] | |||||||||
| Operating Lease Liabilities (Details) - Schedule of Operating Lease Liabilities [Line Items] | |||||||||
| Operating lease liabilities | [3] | $ 157,388 | $ 151,978 | ||||||
| |||||||||
Operating Lease Liabilities (Details) - Schedule of Analyzed for Reporting Purposes - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Schedule of Analyzed For Reporting Purposes [Abstract] | ||
| Long-term portion of operating lease liabilities | $ 1,538,617 | $ 1,636,493 |
| Current maturities of operating lease liabilities | 357,860 | 316,253 |
| Total | $ 1,896,477 | $ 1,952,746 |
Operating Lease Liabilities (Details) - Schedule of Maturity Analysis of Operating Lease Liabilities - USD ($) |
6 Months Ended | 12 Months Ended |
|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
|
| Villas [Member] | ||
| Operating Lease Liabilities (Details) - Schedule of Maturity Analysis of Operating Lease Liabilities [Line Items] | ||
| Discount rate at commencement | 4.12% | 4.12% |
| One year | ||
| Two years | ||
| Three years | ||
| Four years | 768,774 | |
| Five years | 753,550 | |
| Beyond five years | 845,652 | 828,905 |
| Total undiscounted cash flows | 1,614,426 | 1,582,455 |
| Total operating lease liabilities | 1,241,841 | 1,192,898 |
| Difference between undiscounted cash flows and discounted cash flows | $ 372,585 | $ 389,557 |
| Base station tower [Member] | ||
| Operating Lease Liabilities (Details) - Schedule of Maturity Analysis of Operating Lease Liabilities [Line Items] | ||
| Discount rate at commencement | 3.14% | 3.14% |
| One year | $ 28,238 | $ 27,679 |
| Two years | 28,238 | 27,679 |
| Three years | 28,238 | 27,679 |
| Four years | 28,238 | 27,679 |
| Five years | 28,238 | 27,679 |
| Beyond five years | 28,238 | 27,679 |
| Total undiscounted cash flows | 169,428 | 166,074 |
| Total operating lease liabilities | 157,388 | 151,978 |
| Difference between undiscounted cash flows and discounted cash flows | $ 12,040 | $ 14,096 |
| Warehouse [Member] | ||
| Operating Lease Liabilities (Details) - Schedule of Maturity Analysis of Operating Lease Liabilities [Line Items] | ||
| Discount rate at commencement | 4.45% | 4.45% |
| One year | $ 271,135 | $ 265,766 |
| Two years | 248,540 | 265,766 |
| Three years | 110,736 | |
| Four years | ||
| Five years | ||
| Beyond five years | ||
| Total undiscounted cash flows | 519,675 | 642,268 |
| Total operating lease liabilities | 497,248 | 607,870 |
| Difference between undiscounted cash flows and discounted cash flows | $ 22,427 | 34,398 |
| Total undiscounted cash flows [Member] | ||
| Operating Lease Liabilities (Details) - Schedule of Maturity Analysis of Operating Lease Liabilities [Line Items] | ||
| Discount rate at commencement | ||
| One year | $ 299,373 | 293,445 |
| Two years | 276,778 | 293,445 |
| Three years | 28,238 | 138,415 |
| Four years | 797,012 | 27,679 |
| Five years | 28,238 | 781,229 |
| Beyond five years | 873,890 | 856,584 |
| Total undiscounted cash flows | 2,303,529 | 2,390,797 |
| Total operating lease liabilities | 1,896,477 | 1,952,746 |
| Difference between undiscounted cash flows and discounted cash flows | $ 407,052 | $ 438,051 |
Finance Lease Liabilities (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Sep. 11, 2017 |
Dec. 31, 2023 |
Jun. 30, 2022 |
|
| Finance Lease Liabilities [Abstract] | |||
| The rate of financial lease liability interest | 4.90% | ||
| Date of maturity of financial lease agreement | Dec. 31, 2027 | ||
| Amortization expense of financial lease right-of-use assets | $ 85,608 | ||
| Interest expense for financial lease | $ 9,709 |
Finance Lease Liabilities (Details) - Schedule of Financing Lease Liabilities |
6 Months Ended |
|---|---|
|
Dec. 31, 2023
USD ($)
| |
| Finance Lease Liabilities (Details) - Schedule of Financing Lease Liabilities [Line Items] | |
| Beginning balance of unrecognized finance expense | $ 171,401 |
| Increase/ (Decrease) in unrecognized finance expense | (173,733) |
| Payment for unrecognized finance expense | |
| Exchange rate translation of unrecognized finance expense | 2,332 |
| Ending balance of unrecognized finance expense | |
| Beginning balance of total financing lease liabilities | 340,279 |
| Increase/ (Decrease) in total financing lease liabilities | (344,585) |
| Payment for total financing lease liabilities | |
| Exchange rate translation of total financing lease liabilities | 4,306 |
| Ending balance of total financing lease liabilities | |
| Company vehicles [Member] | |
| Finance Lease Liabilities (Details) - Schedule of Financing Lease Liabilities [Line Items] | |
| Beginning balance of financing lease liabilities | 168,878 |
| Increase/ (Decrease) in financing lease liabilities | (170,852) |
| Payment for financing lease liabilities | |
| Exchange rate translation of financing lease liabilities | 1,974 |
| Ending balance of financing lease liabilities |
Finance Lease Liabilities (Details) - Schedule of Financing Lease Liabilities for Reporting Purposes - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Schedule of Financing Lease Liabilities for Reporting Purposes [Abstract] | ||
| Long-term portion of finance lease liabilities | $ 282,015 | |
| Current maturities of finance lease liabilities | 58,264 | |
| Total | $ 340,279 |
Finance Lease Liabilities (Details) - Schedule of Maturity Analysis of Financial Lease Liabilities |
Dec. 31, 2023
USD ($)
|
|---|---|
| Schedule of Maturity Analysis of Financial Lease Liabilities [Abstract] | |
| Discount rate at commencement | 4.90% |
| One year | $ 73,640 |
| Two years | 73,640 |
| Three years | 73,640 |
| Four years | 73,640 |
| Five years | 73,640 |
| Beyond five years | 18,410 |
| Total undiscounted cash flows | 386,610 |
| Total financing lease liabilities | 340,279 |
| Difference between undiscounted cash flows and discounted cash flows | $ 46,331 |
Convertible Note (Details) - USD ($) |
1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 14, 2024 |
Sep. 25, 2023 |
Jul. 21, 2023 |
Apr. 13, 2023 |
Sep. 23, 2022 |
Sep. 22, 2022 |
Jul. 08, 2022 |
May 13, 2022 |
Dec. 20, 2021 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Sep. 22, 2023 |
Apr. 12, 2023 |
Feb. 09, 2023 |
Jan. 06, 2023 |
Sep. 08, 2022 |
Aug. 15, 2022 |
|
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Original principal amount (in Dollars) | $ 20,000,000 | |||||||||||||||||
| Ordinary shares price equal percentage | 85.00% | |||||||||||||||||
| Purchase ordinary shares | 2,600,000 | 2 | 16,363,636 | |||||||||||||||
| Reverse stock split | 81,301 | 81,301 | 120,000 | 81,301 | 1,636 | 0.2 | 2,804 | |||||||||||
| Warrants value (in Dollars) | $ 150,000 | |||||||||||||||||
| Ordinary shares issued | 5,263,835 | 14,042,911 | 739,453 | |||||||||||||||
| Principal and interest (in Dollars) | $ 1,680,679 | $ 3,520,000 | $ 200,000 | |||||||||||||||
| Legal and other transaction costs (in Dollars) | 20,000 | |||||||||||||||||
| Commission amount (in Dollars) | $ 256,095 | |||||||||||||||||
| Maximum [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Ordinary shares, par value (in Dollars per share) | $ 0.02 | $ 0.002 | $ 1 | $ 0.0001 | ||||||||||||||
| Minimum [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Ordinary shares, par value (in Dollars per share) | $ 0.2 | $ 0.02 | $ 0.2 | $ 0.002 | ||||||||||||||
| Convertible Note 2021 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Original principal amount (in Dollars) | $ 5,275,000 | |||||||||||||||||
| Original issue discount (in Dollars) | 250,000 | |||||||||||||||||
| Other transaction costs (in Dollars) | $ 25,000 | |||||||||||||||||
| Outstanding balance per annum percentage | 8.00% | |||||||||||||||||
| Ordinary shares price equal percentage | 85.00% | |||||||||||||||||
| Equity component (in Dollars) | $ 1,092,460 | |||||||||||||||||
| Warrants value (in Dollars) | $ 212,105 | |||||||||||||||||
| Debt issuance costs description. | Debt issuance costs related to the original Convertible Note 2021 comprised of commissions paid to third party placement agent and lawyers of $667,920 which included original issue discount of $250,000, Investor’s legal and other transaction costs of $25,000 and commission of $392,920. The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2021 based on their relative values. Issuance costs attributable to the liability component were $697,771 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $182,255 and netted with the equity component in stockholders’ equity of $1,092,460 and warrant value of $212,105. | |||||||||||||||||
| Liability component fair value percentage | 33.10% | |||||||||||||||||
| Convertible Note 2021 [Member] | Ordinary shares [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||||||||||||||||
| Convertible Note 2021 [Member] | September 23, 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 69,701 | 74 | ||||||||||||||||
| Convertible Note 2021 [Member] | April 13, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 69,701 | 74 | ||||||||||||||||
| Convertible Note 2021 [Member] | September 25, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 323,787 | 69,701 | 74 | |||||||||||||||
| Convertible Note 2021 [Member] | February 14, 2024 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 323,787 | 69,701 | 74 | |||||||||||||||
| Convertible Note 2021 [Member] | Note Warrant [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Equity component (in Dollars) | $ 1,304,565 | |||||||||||||||||
| Convertible Note 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Original principal amount (in Dollars) | $ 3,170,000 | |||||||||||||||||
| Original issue discount (in Dollars) | 150,000 | |||||||||||||||||
| Other transaction costs (in Dollars) | $ 20,000 | |||||||||||||||||
| Outstanding balance per annum percentage | 8.00% | |||||||||||||||||
| Equity component (in Dollars) | $ 683,393 | |||||||||||||||||
| Warrants value (in Dollars) | $ 133,372 | |||||||||||||||||
| Debt issuance costs description. | The Company allocated the total amount incurred to the liability and equity components of the original Convertible Note 2022 based on their relative values. Issuance costs attributable to the liability component were $438,856 and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were $120,611 and netted with the equity component in stockholders’ equity of $683,393 and warrant value of $133,372. | |||||||||||||||||
| Liability component fair value percentage | 34.51% | |||||||||||||||||
| Convertible Note 2022 [Member] | Ordinary shares [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||||||||||||||||
| Convertible Note 2022 [Member] | Note Warrant [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Equity component (in Dollars) | $ 816,765 | |||||||||||||||||
| Convertible Note 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 111,126 | |||||||||||||||||
| Ordinary shares issued | 555,629 | |||||||||||||||||
| Principal and interest (in Dollars) | $ 1,800,000 | |||||||||||||||||
| Trigger Event [Member] | Convertible Note 2021 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Accrue lesser per annum percentage | 22.00% | |||||||||||||||||
| Trigger Event [Member] | Convertible Note 2021 [Member] | Maximum [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Outstanding balance payable percentage | 12.00% | |||||||||||||||||
| Trigger Event [Member] | Convertible Note 2021 [Member] | Minimum [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Outstanding balance payable percentage | 5.00% | |||||||||||||||||
| Trigger Event [Member] | Convertible Note 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Accrue lesser per annum percentage | 22.00% | |||||||||||||||||
| Trigger Event [Member] | Convertible Note 2022 [Member] | Maximum [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Outstanding balance payable percentage | 12.00% | |||||||||||||||||
| Trigger Event [Member] | Convertible Note 2022 [Member] | Minimum [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Outstanding balance payable percentage | 5.00% | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | September 23, 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 16 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | April 13, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 16 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | September 25, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 16 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | February 14, 2024 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 16 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Note Warrant [Member] | September 23, 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 39 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Note Warrant [Member] | April 13, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 39 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Note Warrant [Member] | September 25, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 39 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Note Warrant [Member] | February 14, 2024 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 39 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2021 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Cash fee equal | 6.50% | |||||||||||||||||
| Purchase ordinary shares | 157,934 | |||||||||||||||||
| Warrant exercisable term | 5 years | |||||||||||||||||
| Warrant exercisable price (in Dollars per share) | $ 2 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2021 [Member] | September 23, 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 20,000 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2021 [Member] | April 13, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 20,000 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2021 [Member] | September 25, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 20,000 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2021 [Member] | February 14, 2024 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 20,000 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Cash fee equal | 6.50% | |||||||||||||||||
| Purchase ordinary shares | 386,585 | |||||||||||||||||
| Warrant exercisable term | 5 years | |||||||||||||||||
| Warrants exercisable price (in Dollars per share) | $ 0.49 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2022 [Member] | September 23, 2022 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 4,900 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2022 [Member] | April 13, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 4,900 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2022 [Member] | September 25, 2023 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 4,900 | |||||||||||||||||
| Joseph Stone Capital, LLC [Member] | Convertible Note 2022 [Member] | February 14, 2024 [Member] | ||||||||||||||||||
| Convertible Note (Details) [Line Items] | ||||||||||||||||||
| Reverse stock split | 4,900 | |||||||||||||||||
Convertible Note (Details) - Schedule of Liability Component the Convertible Notes - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Principal outstanding [Member] | ||
| Schedule of Liability Component the Convertible Notes [Line Items] | ||
| Convertible Note 2021 | $ 1,469,512 | |
| Convertible Note 2022 | 3,170,000 | 3,170,000 |
| Convertible Notes - liability portion | 3,170,000 | 4,639,512 |
| Unamortized issuance cost [Member] | ||
| Schedule of Liability Component the Convertible Notes [Line Items] | ||
| Convertible Note 2021 | (143,335) | |
| Convertible Note 2022 | (1,713,520) | (624,350) |
| Convertible Notes - liability portion | (1,713,520) | (767,685) |
| Net carrying value [Member] | ||
| Schedule of Liability Component the Convertible Notes [Line Items] | ||
| Convertible Note 2021 | 1,326,177 | |
| Convertible Note 2022 | 1,456,480 | 2,545,650 |
| Convertible Notes - liability portion | $ 1,456,480 | $ 3,871,827 |
Convertible Note (Details) - Schedule of Equity Component of the Convertible Notes - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Amount allocated to conversion option [Member] | ||
| Schedule of Equity Component of the Convertible Notes [Line Items] | ||
| Convertible Note 2021 | $ 1,092,460 | $ 1,092,460 |
| Convertible Note 2022 | 683,393 | 683,393 |
| Convertible Notes – equity portion | 1,775,853 | 1,775,853 |
| Issuance cost [Member] | ||
| Schedule of Equity Component of the Convertible Notes [Line Items] | ||
| Convertible Note 2021 | (182,255) | (182,255) |
| Convertible Note 2022 | (120,611) | (120,611) |
| Convertible Notes – equity portion | (302,866) | (302,866) |
| Equity component,net [Member] | ||
| Schedule of Equity Component of the Convertible Notes [Line Items] | ||
| Convertible Note 2021 | 910,205 | 910,205 |
| Convertible Note 2022 | 562,782 | 562,782 |
| Convertible Notes – equity portion | $ 1,472,987 | $ 1,472,987 |
Convertible Note (Details) - Schedule of Amortization of Issuance Cost, Debt Discount and Interest Cost - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Issuance costs and debt discount [Member] | ||
| Schedule of Amortization of Issuance Cost, Debt Discount and Interest Cost [Line Items] | ||
| Convertible Note 2021 | $ 325,039 | $ 891,135 |
| Convertible Note 2022 | 298,762 | 485,323 |
| Convertible Notes | 623,801 | 1,376,458 |
| Convertible note interest [Member] | ||
| Schedule of Amortization of Issuance Cost, Debt Discount and Interest Cost [Line Items] | ||
| Convertible Note 2021 | 229,463 | 458,231 |
| Convertible Note 2022 | 140,440 | 264,577 |
| Convertible Notes | 369,903 | 722,808 |
| Total [Member] | ||
| Schedule of Amortization of Issuance Cost, Debt Discount and Interest Cost [Line Items] | ||
| Convertible Note 2021 | 554,502 | 1,349,366 |
| Convertible Note 2022 | 439,202 | 749,900 |
| Convertible Notes | $ 993,704 | $ 2,099,266 |
Warrants (Details) - $ / shares |
6 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 14, 2024 |
Sep. 25, 2023 |
Apr. 13, 2023 |
Sep. 23, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Jul. 21, 2023 |
Jun. 30, 2023 |
Nov. 18, 2022 |
Aug. 15, 2022 |
Jul. 08, 2022 |
Jun. 14, 2022 |
|
| Warrants [Line Items] | |||||||||||||
| Common stock shares | 386,585 | 28,041,992 | 28,041,992 | ||||||||||
| Average exercise price (in Dollars per share) | $ 2 | ||||||||||||
| Reverse stock split price per share (in Dollars per share) | 20,000 | ||||||||||||
| Common stock exercise price per share (in Dollars per share) | $ 0.49 | $ 1 | |||||||||||
| Expected term | 5 years | 5 years | 5 years | ||||||||||
| Warrants outstanding | 55 | 55 | |||||||||||
| Reverse stock | 2,723 | 2,723 | 2,723 | ||||||||||
| Average exercise share | 2 | 2,600,000 | 16,363,636 | ||||||||||
| Warrants exercised | 0 | ||||||||||||
| Volatility | 129.00% | 117.00% | |||||||||||
| Risk-free interest rate | 0.27% | 2.04% | |||||||||||
| Exercise price (in Dollars per share) | $ 2 | $ 0.49 | |||||||||||
| Dividend yield | 0.00% | 0.00% | |||||||||||
| Maximum [Member] | |||||||||||||
| Warrants [Line Items] | |||||||||||||
| Reverse stock split price per share (in Dollars per share) | $ 4,900 | ||||||||||||
| Minimum [Member] | |||||||||||||
| Warrants [Line Items] | |||||||||||||
| Reverse stock split price per share (in Dollars per share) | $ 20,000 | ||||||||||||
| Warrant [Member] | |||||||||||||
| Warrants [Line Items] | |||||||||||||
| Common stock shares | 157,934 | ||||||||||||
| Reverse stock split price per share (in Dollars per share) | $ 4,900 | ||||||||||||
| Common stock exercise price per share (in Dollars per share) | $ 0.49 | ||||||||||||
| Forecast [Member] | |||||||||||||
| Warrants [Line Items] | |||||||||||||
| Reverse stock | 2,723 | ||||||||||||
Taxes (Details) - USD ($) |
1 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
May 01, 2016 |
Jul. 31, 2017 |
Mar. 16, 2007 |
Dec. 31, 2023 |
Jun. 30, 2023 |
|
| Taxes (Details) [Line Items] | |||||
| Effective tax rate | 10.00% | ||||
| VAT percentage | 11.00% | ||||
| Value added tax, description | The maintenance and accessories sales were subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019. | ||||
| After sales and cleaning service | |||||
| Taxes payable (in Dollars) | |||||
| EIT [Member] | |||||
| Taxes (Details) [Line Items] | |||||
| Percentage of uniform rate | 25.00% | ||||
| Effective tax rate | 25.00% | ||||
Taxes (Details) - Schedule of Provision for Income Tax - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule of Provision for Income Tax [Abstract] | ||
| Current income tax provision | $ 497,025 | |
| Deferred income tax provision | (233,797) | |
| Total | $ 263,228 | |
Taxes (Details) - Schedule of Statutory EIT Rate and the Effective Tax - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule of Statutory Eit Rate and the Effective Tax [Abstract] | ||
| Provision for income taxes at statutory tax rate in the PRC | $ 415,251 | |
| Effect of expense for which no income tax is deductible | 25,937 | |
| Effect of assets recognized at fair value in business combinations | (177,960) | |
| Effective income tax expense | $ 263,228 | |
Taxes (Details) - Schedule of Deferred Tax Asset - USD ($) |
Dec. 31, 2023 |
Jun. 30, 2023 |
|---|---|---|
| Deferred tax assets | ||
| Advanced from customers | $ 383,156 | $ 446,246 |
| Total deferred tax assets | 383,156 | 446,246 |
| Allowance for deferred tax assets | (383,156) | (446,246) |
| Deferred tax assets, net | ||
| Deferred tax liabilities | ||
| Business combinations | 1,819,826 | 1,819,826 |
| Total deferred tax liabilities | $ 1,819,826 | $ 1,819,826 |
Equity (Details) $ / shares in Units, ¥ in Millions |
1 Months Ended | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Feb. 14, 2024
shares
|
Sep. 25, 2023
shares
|
Jul. 21, 2023
shares
|
Apr. 13, 2023
shares
|
Sep. 23, 2022
shares
|
Sep. 22, 2022
shares
|
Jul. 08, 2022
USD ($)
|
Jul. 08, 2022
USD ($)
shares
|
Jun. 22, 2022
USD ($)
$ / shares
shares
|
Mar. 18, 2022
USD ($)
$ / shares
|
Feb. 03, 2022
USD ($)
$ / shares
shares
|
Jun. 21, 2021
USD ($)
shares
|
May 18, 2021
USD ($)
$ / shares
shares
|
Dec. 20, 2022
USD ($)
$ / shares
|
Mar. 18, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2023
$ / shares
shares
|
Jun. 30, 2023
$ / shares
shares
|
Aug. 15, 2022
$ / shares
shares
|
Mar. 02, 2022
shares
|
Jan. 20, 2022
USD ($)
shares
|
Jan. 20, 2022
CNY (¥)
shares
|
Jun. 30, 2019
USD ($)
|
May 23, 2019
$ / shares
shares
|
Jun. 30, 2018
USD ($)
|
|||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Ordinary, shares issued | [1] | 3,078,222 | 544,981 | |||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | [1] | $ 1 | $ 1 | |||||||||||||||||||||||
| Contributed ownership (in Dollars) | $ | $ 3,620,757 | $ 3,885,586 | ||||||||||||||||||||||||
| Ordinary shares authorized | [1] | 100,000,000 | 100,000,000 | |||||||||||||||||||||||
| Reverse stock split | 81,301 | 81,301 | 120,000 | 81,301 | 1,636 | 0.2 | 2,804 | |||||||||||||||||||
| Ordinary shares | 5,578 | |||||||||||||||||||||||||
| Ordinary shares par value amount (in Dollars) | $ | $ 2,804 | $ 1 | ||||||||||||||||||||||||
| Additional paid in capital (in Dollars) | $ | $ 8,493,919 | $ 8,493,919 | $ 322,400 | $ 2,844,276 | $ 307,960 | |||||||||||||||||||||
| Ordinary shares granted | 6,000 | |||||||||||||||||||||||||
| Shares of each directors | 200 | |||||||||||||||||||||||||
| Compensations fair value (in Dollars) | $ | $ 322,500 | $ 308,000 | $ 213,840 | |||||||||||||||||||||||
| Ordinary shares issued | 2,600,000 | 2 | 16,363,636 | |||||||||||||||||||||||
| Ordinary share par value (in Dollars per share) | $ / shares | $ 100 | $ 9,320 | ||||||||||||||||||||||||
| Ordinary share granted | 400,000 | |||||||||||||||||||||||||
| E-Home Pingtan [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Ordinary, shares issued | 50,000 | |||||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | $ 1 | |||||||||||||||||||||||||
| Lianbao [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Equity interests percentage | 40.00% | 40.00% | ||||||||||||||||||||||||
| Minimum [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||||
| Ordinary stock split | 50,000 | |||||||||||||||||||||||||
| Maximum [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | $ 1 | |||||||||||||||||||||||||
| Ordinary stock split | 500,000,000 | |||||||||||||||||||||||||
| Initial Public Offering [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Ordinary, shares issued | 5,575,556 | |||||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | $ 4.5 | |||||||||||||||||||||||||
| Reverse stock split | 45,000 | 45,000 | 45,000 | |||||||||||||||||||||||
| Total gross proceed (in Dollars) | $ | $ 25,100,000 | |||||||||||||||||||||||||
| Net proceed (in Dollars) | $ | 21,661,293 | |||||||||||||||||||||||||
| Ordinary shares par value amount (in Dollars) | $ | 558 | |||||||||||||||||||||||||
| Additional paid in capital (in Dollars) | $ | $ 21,660,735 | |||||||||||||||||||||||||
| Ordinary shares [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Ordinary, shares issued | 28,000,000 | |||||||||||||||||||||||||
| Ordinary shares authorized | 500,000,000 | |||||||||||||||||||||||||
| Ordinary shares surrendered | 472,000,000 | |||||||||||||||||||||||||
| Reverse stock split | 270 | 28,000 | 28,000 | 28,000 | ||||||||||||||||||||||
| Ordinary shares issued | 1,000,000 | |||||||||||||||||||||||||
| Ordinary shares [Member] | E-Home Pingtan [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 40 | |||||||||||||||||||||||||
| Additional Paid-in Capital [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Additional paid in capital (in Dollars) | $ | $ 213,839 | |||||||||||||||||||||||||
| Director [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 0.2 | 0.2 | 0.2 | |||||||||||||||||||||||
| Forecast [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 28,000 | |||||||||||||||||||||||||
| E-Home Pingtan [Member] | Ordinary shares [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 100 | |||||||||||||||||||||||||
| Reverse Stock [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 40 | 120,000 | 100 | |||||||||||||||||||||||
| Ordinary share par value (in Dollars per share) | $ / shares | $ 40 | $ 40 | ||||||||||||||||||||||||
| Reverse Stock [Member] | Ordinary shares [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 100 | 100 | 40 | 40 | ||||||||||||||||||||||
| Reverse Stock [Member] | Forecast [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 120,000 | |||||||||||||||||||||||||
| Youyou [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 270 | 270 | 270 | |||||||||||||||||||||||
| Additional paid in capital (in Dollars) | $ | $ 1,999,821 | |||||||||||||||||||||||||
| Cash | $ 600,000 | ¥ 4 | ||||||||||||||||||||||||
| Ordinary shares issued | 2,702,826 | 2,702,826 | 2,702,826 | |||||||||||||||||||||||
| Fair value (in Dollars) | $ | $ 2,000,091 | |||||||||||||||||||||||||
| Ordinary share par value (in Dollars per share) | $ / shares | $ 270 | |||||||||||||||||||||||||
| Youyou [Member] | Agreement [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Equity interests percentage | 60.00% | 60.00% | ||||||||||||||||||||||||
| Lianbao [Member] | ||||||||||||||||||||||||||
| Equity [Line Items] | ||||||||||||||||||||||||||
| Reverse stock split | 582 | 582 | 582 | 582 | ||||||||||||||||||||||
| Ordinary shares issued | 5,823,363 | 5,823,363 | 5,823,363 | |||||||||||||||||||||||
| ||||||||||||||||||||||||||
Equity (Details) - Detail 1 $ / shares in Units, ¥ in Millions |
1 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Feb. 14, 2024
shares
|
Sep. 25, 2023
shares
|
Jul. 21, 2023
shares
|
Apr. 13, 2023
shares
|
Jan. 27, 2023
$ / shares
|
Jan. 06, 2023
USD ($)
$ / shares
shares
|
Dec. 20, 2022
USD ($)
$ / shares
shares
|
Nov. 18, 2022
USD ($)
$ / shares
|
Sep. 23, 2022
shares
|
Sep. 22, 2022
shares
|
Sep. 14, 2022
USD ($)
shares
|
Aug. 15, 2022
USD ($)
$ / shares
shares
|
Jul. 30, 2022
USD ($)
shares
|
Jul. 30, 2022
CNY (¥)
shares
|
Jul. 26, 2022
$ / shares
|
Jul. 08, 2022
USD ($)
shares
|
Jul. 08, 2022
USD ($)
shares
|
Jun. 22, 2022
USD ($)
$ / shares
|
Dec. 20, 2022
USD ($)
$ / shares
shares
|
Dec. 20, 2022
CNY (¥)
|
Nov. 18, 2022
$ / shares
shares
|
Sep. 19, 2022
USD ($)
shares
|
Jul. 30, 2022
CNY (¥)
$ / shares
|
Mar. 18, 2022
USD ($)
|
Dec. 31, 2023
$ / shares
shares
|
Jun. 30, 2023
$ / shares
|
Jun. 14, 2022
USD ($)
shares
|
Jun. 14, 2022
CNY (¥)
shares
|
May 23, 2019
$ / shares
|
|||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Ordinary shares, issued | 28,041,992 | 28,041,992 | 386,585 | 28,041,992 | 28,041,992 | ||||||||||||||||||||||||||
| Reverse stock split | 81,301 | 81,301 | 120,000 | 81,301 | 1,636 | 0.2 | 2,804 | ||||||||||||||||||||||||
| Fair value, agreement (in Dollars) | $ | $ 8,496,724 | $ 8,496,724 | |||||||||||||||||||||||||||||
| Additional paid in capital (in Dollars) | $ | $ 8,493,919 | 8,493,919 | $ 322,400 | $ 2,844,276 | $ 307,960 | ||||||||||||||||||||||||||
| Consideration of equity interests | ¥ | ¥ 20.0 | ||||||||||||||||||||||||||||||
| Total shareholder equity (in Yuan Renminbi) | ¥ | ¥ 39.2 | ¥ 39.2 | |||||||||||||||||||||||||||||
| Issuance amount (in Dollars) | $ | $ 3,600,000 | ||||||||||||||||||||||||||||||
| Ordinary shares issued | 2,600,000 | 16,363,636 | 2 | ||||||||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | [1] | $ 1 | $ 1 | ||||||||||||||||||||||||||||
| Purchase price (in Dollars per share) | $ / shares | $ 0.383 | $ 0.22 | |||||||||||||||||||||||||||||
| Aggregate ordinary shares | 1,329,729 | ||||||||||||||||||||||||||||||
| Aggregated consideration (in Dollars) | $ | $ 3,480,000 | ||||||||||||||||||||||||||||||
| Subscription price per share (in Dollars per share) | $ / shares | $ 1 | $ 1 | $ 0.49 | ||||||||||||||||||||||||||||
| Shareholders fair value (in Dollars) | $ | $ 2,853,596 | ||||||||||||||||||||||||||||||
| Ordinary share par value (in Dollars per share) | $ / shares | $ 9,320 | $ 100 | $ 9,320 | ||||||||||||||||||||||||||||
| Purchase of aggregate shares | 40,650,406 | ||||||||||||||||||||||||||||||
| Purchase price (in Dollars per share) | $ / shares | $ 0.492 | ||||||||||||||||||||||||||||||
| Aggregate proceeds (in Dollars) | $ | $ 20,000,000 | ||||||||||||||||||||||||||||||
| Additional Paid-in Capital [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Additional paid in capital (in Dollars) | $ | $ 2,804 | ||||||||||||||||||||||||||||||
| Minimum [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||||||||
| Director [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Reverse stock split | 0.2 | 0.2 | 0.2 | ||||||||||||||||||||||||||||
| Zhongrun [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Cash | $ 450,000 | ¥ 3.0 | |||||||||||||||||||||||||||||
| Reverse stock split | 9,320 | 9,320 | 9,320 | ||||||||||||||||||||||||||||
| Ordinary shares issued | 4,660,129 | 4,660,129 | |||||||||||||||||||||||||||||
| Mr. Xie [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Reverse stock split | 1,444 | ||||||||||||||||||||||||||||||
| Consideration of equity interests | $ 5,590,000 | ¥ 389.2 | |||||||||||||||||||||||||||||
| Average closing price percentage | 130.00% | 130.00% | |||||||||||||||||||||||||||||
| Closing price per shares (in Dollars per share) | $ / shares | $ 0.39 | ¥ 0.39 | |||||||||||||||||||||||||||||
| Mr. Xie [Member] | White Lion Capital LLC [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Aggregate offering price (in Dollars) | $ | $ 12,300,000 | ||||||||||||||||||||||||||||||
| Mr. Xie [Member] | Director [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Aggregate share | 14,438,584 | 14,438,584 | |||||||||||||||||||||||||||||
| Lin Jianying [Member] | Director [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Reverse stock split | 1,444 | 1,444 | 1,444 | 1,444 | |||||||||||||||||||||||||||
| Multi Rise Holdings Limited [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Reverse stock split | 1,636 | 1,636 | 1,636 | ||||||||||||||||||||||||||||
| White Lion Capital LLC [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Reverse stock split | 1,034 | 1,034 | 1,034 | 1,034 | |||||||||||||||||||||||||||
| Ordinary shares issued | 10,343,064 | ||||||||||||||||||||||||||||||
| Aggregated consideration (in Dollars) | $ | $ 783,303 | ||||||||||||||||||||||||||||||
| Investors [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Reverse stock split | 6,960 | 6,960 | 6,960 | ||||||||||||||||||||||||||||
| Aggregate share | 3,480,000 | ||||||||||||||||||||||||||||||
| Ms. Chen [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Equity interests | 20.00% | 20.00% | 55.00% | 55.00% | |||||||||||||||||||||||||||
| Mr. Xie [Member] | Director [Member] | |||||||||||||||||||||||||||||||
| Equity [Line Items] | |||||||||||||||||||||||||||||||
| Equity interests | 100.00% | 100.00% | |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
Equity (Details) - Detail 2 - USD ($) |
6 Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 14, 2024 |
Sep. 25, 2023 |
Jul. 21, 2023 |
May 15, 2023 |
Apr. 13, 2023 |
Jan. 27, 2023 |
Sep. 23, 2022 |
Sep. 22, 2022 |
Aug. 15, 2022 |
Jul. 08, 2022 |
Dec. 31, 2023 |
Sep. 22, 2023 |
Jun. 30, 2023 |
Apr. 12, 2023 |
Feb. 09, 2023 |
Sep. 08, 2022 |
|
| Equity [Line Items] | ||||||||||||||||
| Ordinary shares issued | 2,600,000 | 16,363,636 | 2 | |||||||||||||
| Reverse stock split | 81,301 | 81,301 | 120,000 | 81,301 | 1,636 | 0.2 | 2,804 | |||||||||
| Purchase price (in Dollars per share) | $ 0.383 | $ 0.22 | ||||||||||||||
| Offering expenses (in Dollars) | $ 70,118,618 | |||||||||||||||
| Incentive plan | 6,000,000 | |||||||||||||||
| Statutory reserve description | On July 21, 2023, the Company entered into a securities purchase agreement with certain purchasers, pursuant which the Company will sell to the purchasers in a registered direct offering, an aggregate of 107,317,074 ordinary shares of par value $0.02 per share (2,146,341 ordinary shares of par value $1 per share retrospectively adjusted for effect of reverse stock splits on September 25, 2023 and February 14, 2024) for aggregate gross proceeds of $12,000,000, before deducting offering expenses. On July 25, 2023, the Company closed the registered direct offering. | |||||||||||||||
| Income tax net, percentage | 10.00% | |||||||||||||||
| Reserve captial percentage | 50.00% | |||||||||||||||
| Statutory surplus reserve (in Dollars) | $ 664,100 | $ 664,100 | ||||||||||||||
| Maximum [Member] | ||||||||||||||||
| Equity [Line Items] | ||||||||||||||||
| Increased of ordinary share (in Dollars per share) | $ 0.02 | $ 0.002 | $ 1 | $ 0.0001 | ||||||||||||
| Minimum [Member] | ||||||||||||||||
| Equity [Line Items] | ||||||||||||||||
| Increased of ordinary share (in Dollars per share) | $ 0.2 | $ 0.02 | $ 0.2 | $ 0.002 | ||||||||||||
| Forecast [Member] | ||||||||||||||||
| Equity [Line Items] | ||||||||||||||||
| Reverse stock split | 28,000 | |||||||||||||||
| Reverse Stock [Member] | ||||||||||||||||
| Equity [Line Items] | ||||||||||||||||
| Reverse stock split | 40 | 120,000 | 100 | |||||||||||||
| Reverse Stock [Member] | Forecast [Member] | ||||||||||||||||
| Equity [Line Items] | ||||||||||||||||
| Reverse stock split | 120,000 | |||||||||||||||
| Securities Purchase Agreements [Member] | ||||||||||||||||
| Equity [Line Items] | ||||||||||||||||
| Ordinary shares issued | 183,077,333 | |||||||||||||||
| Reverse stock split | 366,155 | 366,155 | 366,155 |
Revenues (Details) - Schedule of Revenues - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | $ 26,947,183 | $ 38,876,968 |
| Installation and maintenance [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | 15,151,510 | 24,301,679 |
| Housekeeping [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | 7,836,579 | 8,990,258 |
| Senior care services [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | 2,058,122 | 1,590,075 |
| Sales of E-watch [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | 753,101 | 1,967,170 |
| Sales of pharmaceutical products [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | 190,297 | 1,380,344 |
| Educational consulting services [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | $ 957,574 | $ 647,442 |
Segment Information (Details) |
6 Months Ended |
|---|---|
Dec. 31, 2023 | |
| Segment Information [Abstract] | |
| Operating segments | 5 |
Segment Information (Details) - Schedule of Operating Segments Information - Segment Information [Member] - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
| Segment Reporting Information [Line Items] | |||
| Total Revenue | $ 26,947,183 | $ 38,876,968 | |
| Total Gross Profit | 6,575,189 | 11,138,086 | |
| Total Current assets | 93,409,506 | $ 84,031,236 | |
| Total Non-current assets | 70,854,974 | 74,224,371 | |
| Installation and Maintenance [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Revenue | 15,151,510 | 24,301,679 | |
| Total Gross Profit | 3,949,784 | 8,226,464 | |
| Total Current assets | |||
| Total Non-current assets | |||
| Housekeeping [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Revenue | 7,836,579 | 8,990,258 | |
| Total Gross Profit | 1,129,099 | 1,227,427 | |
| Total Current assets | |||
| Total Non-current assets | |||
| Senior care services [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Revenue | 2,811,223 | 3,557,245 | |
| Total Gross Profit | 1,092,212 | 1,381,314 | |
| Total Current assets | |||
| Total Non-current assets | 5,023,268 | 5,118,174 | |
| Sales of pharmaceutical products [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Revenue | 190,297 | 1,380,344 | |
| Total Gross Profit | 147,056 | 128,938 | |
| Total Current assets | 1,465,830 | 1,520,107 | |
| Total Non-current assets | 430,998 | 649,608 | |
| Educational consulting services [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Revenue | 957,574 | 647,441 | |
| Total Gross Profit | 257,038 | $ 173,943 | |
| Total Current assets | 964,389 | 819,311 | |
| Total Non-current assets | 60,010,115 | 17,350 | |
| Unallocated current assets [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Current assets | 90,979,287 | 81,691,818 | |
| Unallocated non-current assets [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total Non-current assets | $ 5,390,593 | $ 68,439,239 | |
Commitments and Contingencies (Details) - Schedule of Lease Commitments under Non-Cancelable Agreements |
Dec. 31, 2023
USD ($)
|
|---|---|
| Schedule of Lease Commitments under Non-Cancelable Agreements [Abstract] | |
| January 2024 to December 2024 | $ 293,445 |
| January 2025 to December 2025 | 293,445 |
| January 2026 to December 2026 | 138,415 |
| January 2027 to December 2027 | 27,679 |
| January 2027 to December 2027 | 781,229 |
| Thereafter | 856,584 |
| Total | $ 2,390,797 |
Related Party Balances and Transactions (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
|
| Related Party Balances and Transactions (Details) [Line Items] | |||
| Payable balance | $ 472,607 | $ 442,825 | |
| Balance receivable | 14,983,280 | 4,295,120 | |
| Temporary lending amount | 10,688,160 | ||
| E-Home Group [Member] | |||
| Related Party Balances and Transactions (Details) [Line Items] | |||
| Transferred amount | $ 2,600,000 | ||
| Lucky Max Global Limited [Member] | |||
| Related Party Balances and Transactions (Details) [Line Items] | |||
| Transferred amount | 500,000 | ||
| Ms. Ling Chen [Member] | |||
| Related Party Balances and Transactions (Details) [Line Items] | |||
| Payable balance | 1,265,927 | $ 1,249,387 | |
| Mr. Xie [Member] | |||
| Related Party Balances and Transactions (Details) [Line Items] | |||
| Payment by related party | 22,902 | 298,113 | |
| Repaid amount | $ 2,240 | $ 22,846 | |
Subsequent Events (Details) - USD ($) |
Mar. 21, 2024 |
Jan. 11, 2024 |
Jan. 09, 2024 |
Feb. 14, 2024 |
Feb. 09, 2024 |
Dec. 31, 2023 |
Sep. 22, 2023 |
Jun. 30, 2023 |
Apr. 13, 2023 |
Sep. 08, 2022 |
Aug. 15, 2022 |
May 23, 2019 |
||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Ordinary shares, par value | [1] | $ 1 | $ 1 | |||||||||||
| Maximum [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Purchase price, per share | $ 0.2 | $ 0.02 | $ 0.002 | |||||||||||
| Ordinary shares, par value | $ 1 | |||||||||||||
| Minimum [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Purchase price, per share | $ 0.02 | $ 0.002 | $ 0.0001 | |||||||||||
| Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||||||||||||
| Subsequent Event [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Shares vested, rate | 50.00% | |||||||||||||
| Subsequent Event [Member] | Private Placement [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Shares purchased (in Shares) | 20,000,000 | |||||||||||||
| Purchase price, per share | $ 0.68 | |||||||||||||
| Aggregate price (in Dollars) | $ 13,600,000 | |||||||||||||
| Subsequent Event [Member] | Maximum [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Purchase price, per share | $ 1 | |||||||||||||
| Ordinary shares, par value | $ 0.2 | |||||||||||||
| Subsequent Event [Member] | Minimum [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Purchase price, per share | $ 0.2 | |||||||||||||
| Ordinary shares, par value | $ 1 | |||||||||||||
| Board of Directors Chairman [Member] | Subsequent Event [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Stock award, ordinary shares (in Shares) | 340,000 | |||||||||||||
| Shares vested, rate | 50.00% | |||||||||||||
| Forecast [Member] | ||||||||||||||
| Subsequent Events (Details) [Line Items] | ||||||||||||||
| Shares purchased (in Shares) | 10,000,000 | |||||||||||||
| Purchase price, per share | $ 1.2 | |||||||||||||
| Gross proceeds (in Dollars) | $ 12,000,000 | |||||||||||||
| ||||||||||||||