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Cover - shares	6 Months Ended
Cover - shares	Dec. 31, 2020	Feb. 14, 2021
Cover [Abstract]
Entity Registrant Name	IONIX TECHNOLOGY, INC.
Entity Central Index Key	0001528308
Document Type	10-Q
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Entity File Number	000-54485
Current Fiscal Year End Date	--06-30
Entity Incorporation, State or Country Code	NV
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	IINX
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		162,582,058
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021

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CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Current Assets:
Cash and cash equivalents	$ 1,121,104	$ 1,285,373
Notes receivable	35,320	125,798
Accounts receivable	3,350,910	3,273,141
Inventory	3,565,448	3,263,850
Advances to suppliers - non-related parties	657,592	540,259
Advances to suppliers - related parties	429,264	357,577
Prepaid expenses and other current assets	370,150	320,296
Total Current Assets	9,529,788	9,166,294
Property, plant and equipment, net	7,001,152	6,573,937
Intangible assets, net	1,508,762	1,424,404
Deferred tax assets	47,778	20,743
Total Assets	18,087,480	17,185,378
Current Liabilities:
Short-term bank loan	1,681,906	2,034,735
Accounts payable	2,455,750	2,637,792
Advance from customers	206,666	43,077
Promissory notes payable, net of debt discount and loan cost	186,714
Convertible notes payable, net of debt discount and loan cost		514,390
Derivative liability		276,266
Due to related parties	2,535,927	1,716,919
Accrued expenses and other current liabilities	55,099	359,577
Total Current Liabilities	7,122,062	7,582,756
Total Liabilities	7,122,062	7,582,756
COMMITMENT AND CONTINGENCIES
Stockholders' Equity:
Preferred stock, $.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding	500	500
Common stock, $.0001 par value, 195,000,000 shares authorized, 155,582,058 and 114,174,265 shares issued and outstanding as of December 31,2020 and June 30, 2020 respectively	15,558	11,417
Additional paid in capital	10,595,485	9,243,557
Retained earnings (accumulated deficit)	(626,226)	262,198
Accumulated other comprehensive income (loss)	538,140	(357,011)
Total Stockholders' Equity attributable to the Company	10,523,457	9,160,661
Noncontrolling interest	441,961	441,961
Total Stockholders' Equity	10,965,418	9,602,622
Total Liabilities and Stockholders' Equity	$ 18,087,480	$ 17,185,378

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CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	5,000,000	5,000,000
Preferred stock, outstanding	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	195,000,000	195,000,000
Common stock, issued	155,582,058	114,174,265
Common stock, outstanding	155,582,058	114,174,265

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Revenues (See Note 3 and Note 11 for related party amounts)	$ 2,982,883	$ 7,332,968	$ 5,941,348	$ 14,833,298
Cost of Revenues (See Note 11 for related party amounts)	2,588,055	6,270,572	5,269,444	12,343,676
Gross profit	394,828	1,062,396	671,904	2,489,622
Operating expenses
Selling, general and administrative expense	349,398	497,197	657,901	878,625
Research and development expense	131,055	284,028	277,240	506,851
Total operating expenses	480,453	781,225	935,141	1,385,476
Income (loss) from operations	(85,625)	281,171	(263,237)	1,104,146
Other income (expense):
Interest expense, net of interest income	(45,499)	(200,370)	(219,733)	(257,233)
Subsidy income	922	7,231	14,086	50,018
Change in fair value of derivative liability	(586,980)	115,563	(647,632)	131,452
Gain on extinguishment of debt	351,819		202,588
Total other expense	(279,738)	(77,576)	(650,691)	(75,763)
Income (loss) before income tax provision (benefit)	(365,363)	203,595	(913,928)	1,028,383
Income tax provision (benefit)	(9,245)	67,937	(25,504)	181,449
Net income (loss)	(356,118)	135,658	(888,424)	846,934
Other comprehensive income (loss)
Foreign currency translation adjustment	464,870	255,703	895,151	(161,082)
Comprehensive income	$ 108,752	$ 391,361	$ 6,727	$ 685,852
Earnings (Loss) Per Share - Basic and Diluted (in dollars per share)	$ 0.00	$ 0.00	$ (0.01)	$ 0.01
Weighted average number of common shares outstanding - Basic and Diluted (in shares)	128,017,085	114,003,000	121,402,466	114,003,000

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (loss) [Member]	Non-controlling interest [Member]	Total
Balance at beginning at Jun. 30, 2019	$ 500	$ 11,400	$ 8,829,487	$ 539,866	$ (45,840)	$ 441,961	$ 9,777,374
Balance at beginning (in shares) at Jun. 30, 2019	5,000,000	114,003,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock warrants issued with convertible notes			20,022				20,022
Net income (loss)				711,276			711,276
Foreign currency translation adjustment					(416,785)		(416,785)
Balance at end at Sep. 30, 2019	$ 500	$ 11,400	8,849,509	1,251,142	(462,625)	441,961	10,091,887
Balance at end (in shares) at Sep. 30, 2019	5,000,000	114,003,000
Balance at beginning at Jun. 30, 2019	$ 500	$ 11,400	8,829,487	539,866	(45,840)	441,961	9,777,374
Balance at beginning (in shares) at Jun. 30, 2019	5,000,000	114,003,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)							846,934
Foreign currency translation adjustment							(161,082)
Balance at end at Dec. 31, 2019	$ 500	$ 11,400	8,934,122	1,386,800	(206,922)	441,961	10,567,861
Balance at end (in shares) at Dec. 31, 2019	5,000,000	114,003,000
Balance at beginning at Sep. 30, 2019	$ 500	$ 11,400	8,849,509	1,251,142	(462,625)	441,961	10,091,887
Balance at beginning (in shares) at Sep. 30, 2019	5,000,000	114,003,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock warrants issued with convertible notes			84,613				84,613
Net income (loss)				135,658			135,658
Foreign currency translation adjustment					255,703		255,703
Balance at end at Dec. 31, 2019	$ 500	$ 11,400	8,934,122	1,386,800	(206,922)	441,961	10,567,861
Balance at end (in shares) at Dec. 31, 2019	5,000,000	114,003,000
Balance at beginning at Jun. 30, 2020	$ 500	$ 11,417	9,243,557	262,198	(357,011)	441,961	9,602,622
Balance at beginning (in shares) at Jun. 30, 2020	5,000,000	114,174,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for conversion of convertible notes		$ 233	390,768				391,001
Issuance of common stock for conversion of convertible notes (in shares)		2,326,652
Net income (loss)				(532,306)			(532,306)
Foreign currency translation adjustment					430,281		430,281
Balance at end at Sep. 30, 2020	$ 500	$ 11,650	9,634,325	(270,108)	73,270	441,961	9,891,598
Balance at end (in shares) at Sep. 30, 2020	5,000,000	116,500,917
Balance at beginning at Jun. 30, 2020	$ 500	$ 11,417	9,243,557	262,198	(357,011)	441,961	9,602,622
Balance at beginning (in shares) at Jun. 30, 2020	5,000,000	114,174,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)							(888,424)
Foreign currency translation adjustment							895,151
Balance at end at Dec. 31, 2020	$ 500	$ 15,558	10,595,485	(626,226)	538,140	441,961	10,965,418
Balance at end (in shares) at Dec. 31, 2020	5,000,000	155,582,058
Balance at beginning at Sep. 30, 2020	$ 500	$ 11,650	9,634,325	(270,108)	73,270	441,961	9,891,598
Balance at beginning (in shares) at Sep. 30, 2020	5,000,000	116,500,917
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for conversion of convertible notes		$ 714	455,429				456,143
Issuance of common stock for conversion of convertible notes (in shares)		7,143,978
Issuance of common stock for exercise of warrants		$ 150	66,878				67,028
Issuance of common stock for exercise of warrants (in shares)		1,500,000
Issuance of common stock as commitment shares for promissory note		$ 157	67,903				68,060
Issuance of common stock as commitment shares for promissory note (in shares)		1,567,164
Issuance of common stock for private placement		$ 2,887	430,113				433,000
Issuance of common stock for private placement (in shares)		28,869,999
Settlement of warrants in relation to extinguishment of debt			(59,163)				(59,163)
Net income (loss)				(356,118)			(356,118)
Foreign currency translation adjustment					464,870		464,870
Balance at end at Dec. 31, 2020	$ 500	$ 15,558	$ 10,595,485	$ (626,226)	$ 538,140	$ 441,961	$ 10,965,418
Balance at end (in shares) at Dec. 31, 2020	5,000,000	155,582,058

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (888,424)	$ 846,934
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	335,067	399,080
Deferred taxes	(24,322)	28,879
Change in fair value of derivative liability	647,632	(131,452)
Gain on extinguishment of debt	(202,588)
Non-cash interest	139,673	181,336
Changes in operating assets and liabilities:
Accounts receivable - non-related parties	184,522	(1,606,240)
Accounts receivable - related parties		(11,500)
Inventory	(31,178)	323,148
Advances to suppliers - non-related parties	(69,901)	37,082
Advances to suppliers - related parties	(40,530)	120,295
Prepaid expenses and other current assets	(22,753)	(161,718)
Accounts payable	(383,729)	729,495
Advance from customers	153,698	(8,120)
Accrued expenses and other current liabilities	(271,108)	(158,651)
Net cash provided by (used in) operating activities	(473,941)	588,568
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(190,623)	(190,675)
Acquisition of intangible assets	(2,339)
Net cash used in investing activities	(192,962)	(190,675)
CASH FLOWS FROM FINANCING ACTIVITIES
Notes receivable	96,857	95,582
Proceeds from bank loans	1,408,992
Repayment of bank loans	(1,908,985)
Proceeds from issuance of convertible notes payable		585,190
Proceeds from issuance of promissory note	253,500
Proceeds from issuance of common stock for private placement	433,000
Repayment of convertible notes payable	(555,747)
Proceeds from loans from related parties	679,438	2,789
Net cash provided by financing activities	407,055	683,561
Effect of exchange rate changes on cash	95,579	(13,367)
Net increase (decrease) in cash and cash equivalents	(164,269)	1,068,087
Cash and cash equivalents, beginning of period	1,285,373	509,615
Cash and cash equivalents, end of period	1,121,104	1,577,702
Supplemental disclosure of cash flow information
Cash paid for income tax	10,776	102,167
Cash paid for interests	66,972	68,967
Non-cash investing and financing activities
Issuance of 9,470,630 shares of common stock for conversion of convertible notes	847,144
Issuance of 1,500,000 shares of common stock for exercise of warrants	67,028
Issuance of 1,567,164 shares of common stock as commitment shares for promissory note	$ 68,060

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical)	6 Months Ended
	Dec. 31, 2020 shares
Statement of Cash Flows [Abstract]
Issuance of common stock for conversion of convertible notes	9,470,630
Issuance of shares of common stock for exercise of warrants	1,500,000
Issuance of shares of common stock as commitment shares for promissory note	1,567,164

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NATURE OF OPERATIONS

6 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

NOTE 1 - NATURE OF OPERATIONS

Ionix Technology, Inc. (the “Company” or “Ionix”), formerly known as Cambridge Projects Inc., is a Nevada corporation that was formed on March 11, 2011. By and through its wholly owned subsidiaries and an entity controlled through VIE agreements in China, the Company sells the high-end intelligent electronic equipment, which includes the portable power banks for electronic devices, LCM and LCD screens and provides IT and solution-oriented services in China.

Acquisition

On December 27, 2018, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with Jialin Liang and Xuemei Jiang, each of whom are shareholders (the “Shareholders”) of Changchun Fangguan Electronics Technology Co., Ltd. (“Fangguan Electronics”). Pursuant to the terms of the Purchase Agreement, the Shareholders, who together own 95.14% of the ownership rights in Fangguan Electronics, agreed to execute and deliver the Business Operation Agreement, the Equity Interest Pledge Agreement, the Equity Interest Purchase Agreement, the Exclusive Technical Support Service Agreement (the “Services Agreement”) and the Power of Attorney, all together dated December 27, 2018 are referred to the “VIE Agreements”, to the Company in exchange for the issuance of an aggregate of 15,000,000 shares of the Company’s common stock, par value $.0001 per share, thereby causing Fangguan Electronics to become the Company’s variable interest entity. Together with VIE agreements, the Shareholders also agreed to convert shareholder loan of RMB 30 million (approximately $4.4 million) to capital and make cash contribution of RMB 9.7 million (approximately $1.4 million) to capital. The entirety of the transaction will hereafter be referred to as the “Transaction”. As a result of the Transaction, the Company is able to exert effective control over Fangguan Electronics and receive 100% of the net profits or net losses derived from the business operations of Fangguan Electronics. Fangguan Electronics manufactures and sells Liquid Crystal Module (" LCM") and LCD screens in China based in Changchun City, Jilin Province, People’s Republic of China. (See Note 4).

The Transaction was accounted for as a business combination using the acquisition method of accounting. The assets, liabilities and the operations of Fangguan Electronics subsequent to the Transaction date were included in the Company’s consolidated financial statements.

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GOING CONCERN

6 Months Ended

Dec. 31, 2020

Going Concern

GOING CONCERN

NOTE 2 - GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had an accumulated deficit of $626,226 as of December 31, 2020. The Company incurred loss from operation and did not generate sufficient cash flow from its operating activities for the six months ended December 31, 2020. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Company plans to rely on the proceeds from loans from both unrelated and related parties to provide the resources necessary to fund the development of the business plan and operations. The Company is also pursuing other revenue streams which could include strategic acquisitions or possible joint ventures of other business segments. However, no assurance can be given that the Company will be successful in raising additional capital.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of December 31, 2020 and the results of operations and cash flows for the periods ended December 31, 2020 and 2019. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended December 31, 2020 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2021 or for any subsequent periods. The balance sheet at June 30, 2020 has been derived from the audited consolidated financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2020 as included in our Annual Report on Form 10-K as filed with the SEC on September 28, 2020.

Basis of consolidation

The consolidated financial statements include the accounts of Ionix, its wholly owned subsidiaries and an entity which the Company controls 95.14% and receives 100% of net income or net loss through VIE agreements. All significant inter-company balances and transactions have been eliminated upon consolidation.

Noncontrolling Interests

The Company follows FASB ASC Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs (previously referred to as minority interests) be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to NCIs even when such allocation might result in a deficit balance.

The net income (loss) attributed to NCIs was separately designated in the accompanying statements of comprehensive income (loss). Losses attributable to NCIs in a subsidiary may exceed an NCI’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. The Primary beneficiary receives 100% of the income and losses of the VIE as disclosed in Note 4, therefore no income or loss is allocated to NCI.

Use of Estimates

The Company’s consolidated financial statements have been prepared in accordance with US GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable and advance to suppliers, the valuation of inventory, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements.

Cash and cash equivalents

Cash consists of cash on hand and cash in bank. Cash equivalents represent investment securities that are short-term, have high credit quality and are highly liquid. Cash equivalents are carried at fair market value and consist primarily of money market funds.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from shipment. Credit is extended based on evaluation of a customer's financial condition, the customer’s credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of each period, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions may be taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of December 31, 2020 and June 30, 2020, the Company has accounts receivable balance from non-related party of $3,350,910 and $3,273,141, net of allowance for doubtful accounts of $151,121 and $139,609, respectively. No bad debt expense was recorded during the three and six months ended December 31, 2020 and 2019.

Inventories

Inventories consist of raw materials, working-in-process and finished goods. Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although we believe that the assumptions we use to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result.

Advances to suppliers

Advances to suppliers represent prepayments for merchandise, which were purchased but had not been received. The balance of the advances to suppliers is reduced and reclassified to inventories when the raw materials are received and pass quality inspection.

Property, plant and equipment

Property, plant and equipment are recorded at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Repairs and maintenance costs are normally expensed as incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statement of comprehensive income (loss) in the reporting period of disposition.

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows:

Buildings		10 – 20 years
Machinery and equipment		5 – 10 years
Office equipment		3 – 5 years
Automobiles		5 years

Intangible assets

Land use right is recorded as cost less accumulated amortization. Land use rights represent the prepayments for the use of the parcels of land in the PRC where the Company’s production facilities are located, and are charged to expense over their respective lease periods of 50 years. According to the laws of the PRC, the government owns all of the land in the PRC. Company or individuals are authorized to use the land only through land use rights granted by the PRC government for a certain period (usually 50 years).

Purchased intangible assets are recognized and measured at fair value upon acquisition. Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Amortization for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives. Alternatively, intangible assets with indefinite useful lives are carried at cost less any subsequent accumulated impairment losses. The estimated useful lives of the intangible assets are as follows:

Land use right		50 years
Computer software		2-5 years

Gains or losses arising from derecognition of the intangible asset are measured at the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of comprehensive income (loss) when the asset is disposed.

Impairment of long-lived assets

In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets.

Revenue recognition

The Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers, and all the related amendments (new revenue standard) to all contracts using the modified retrospective method beginning on July 1, 2018. The adoption did not result in an adjustment to the retained earnings as of June 30, 2018. The comparative information was not restated and continued to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard has no impact on either reported sales to customers or net earnings.

The Company estimates return based on historical results, taking into consideration the type of customers, the type of transactions and the specifics of each arrangement.

Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

identify the contract with a customer;

identify the performance obligations in the contract;

determine the transaction price;

allocate the transaction price to performance obligations in the contract; and

recognize revenue as the performance obligation is satisfied.

Under these criteria, for revenues from sale of products, the Company generally recognizes revenue when its products are delivered to customers in accordance with the written sales terms. The control of the products is transferred to the customer upon receipt of goods by the customer. For service revenue, the Company recognizes revenue when services are performed and accepted by customers.

The following tables disaggregate our revenue by major source for the three and six months ended December 31, 2020 and 2019, respectively:

	For the Six Months Ended December 31,
	2020		2019
Sales of LCM and LCD screens - Non-related parties	$	5,939,602	$	12,030,911
Sales of LCM and LCD screens - Related parties		-		644,392
Sales of portable power banks		-		1,538,094
Service contracts		1,746		619,901
Total	$	5,941,348	$	14,833,298

	For the Three Months Ended December 31,
	2020		2019
Sales of LCM and LCD screens - Non-related parties	$	2,982,577	$	5,864,945
Sales of LCM and LCD screens - Related parties		-		330,435
Sales of portable power banks		-		910,391
Service contracts		306		227,197
Total	$	2,982,883	$	7,332,968

All the operating entities of the Company are domiciled in the PRC. All the Company’s revenues are derived in the PRC during the three and six months ended December 31, 2020 and 2019.

Cost of revenues

Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues.

Related parties and transactions

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards.

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it requires their disclosure nonetheless.

Income taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and discloses in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

As of December 31, 2020 and June 30, 2020, the Company did not have any significant unrecognized uncertain tax positions.

Comprehensive income (loss)

Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), change in unrealized gains (losses) on marketable securities classified as available-for-sale (net of tax), foreign currency translation adjustments, and share of change in other comprehensive income of equity investments one quarter in arrears.

Leases

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on balance sheet and disclose key information about the leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months.

The new standard is effective for us on July 1, 2019, with early adoption permitted. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company adopted the new standard on July 1, 2019 and use the effective date as our date of initial application. Consequently, financial information is not provided for the dates and periods before July 1, 2019. The new standard provides a number of optional expedients in transition. The Company elected the package of practical expedients which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs.

The new standard has no material effect on our consolidated financial statements as the Company does not have a lease with a term longer than 12 months as of December 31, 2020 (See Note 6).

Earnings (losses) per share

Basic earnings (losses) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (losses) per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of convertible debt. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share or increase a net income per share.

During the six months ended December 31, 2020 and 2019, the Company had outstanding convertible notes and warrants which represent 1,096,705 and 720,382 shares of commons stock respectively. These shares of common stock were excluded from the computation of diluted earnings per share since their effect would have been antidilutive.

During the three months ended December 31, 2020 and 2019, the Company had outstanding convertible notes and warrants which represent 11,675,729 and 720,382 shares of commons stock respectively. These shares of common stock were excluded from the computation of diluted earnings per share since their effect would have been antidilutive.

Foreign currencies translation

The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate.

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity.

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 currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss).

The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows:

	December 31, 2020		June 30, 2020

Balance sheet items, except for equity accounts		6.5402		7.0795


	Six Months Ended December 31,
	2020		2019

Items in statements of comprehensive income (loss) and cash flows		6.8099		6.9255

Fair Value of Financial Instruments

The carrying value of the Company’s financial instruments: cash and cash equivalents, accounts receivable, inventory, prepayments and other receivables, accounts payable, income tax payable, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and

Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The Company has the derivative liabilities measured at fair value on a recurring basis which are valued at level 3 measurement (See Note 14).

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”.

Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

The Company accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

Common Stock Purchase Warrants

The Company classifies as equity any contracts that require physical settlement or net-share settlement or provide a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 ("Contracts in Entity's Own Equity"). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).

Recent accounting pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.

Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for Calendar years beginning after December 15, 2019 and for interim periods within those Calendar years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company is currently in the process of evaluating the impact of the adoption of this guidance on its consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The guidance is effective for public entities for Calendar years beginning after December 15, 2020 and interim periods within those Calendar years and all other entities for Calendar years beginning after December 15, 2021 and interim periods within those Calendar years, with early adoption permitted. The Company is currently evaluating the effect of adopting this ASU on the Company’s consolidated financial statements.

Risk factor

Due to the outbreak of the Coronavirus Disease 2019 (COVID-19) in the PRC, the Company’s operational and financial performance, has been affected by the epidemic during the six months ended December 31, 2020. The Company has been keeping continuous attention on the situation of the COVID-19, assessing and reacting actively to its impacts on the financial position and operating results of the Company as below:

During PRC national economic shutdown that was imposed to limit the spread of COVID-19 from early February to mid-March of 2020, our financial condition and results of operations were adversely affected. Since the restarting of our operation near the end of March 2020, our financial performances had been recovering slowly but continuously. However, COVID-19 resurgence which occurred in October 2020 had caused one and off traffic restrictions and lockdowns and prolonged the economic contraction nationwide and disrupted our business operation.

During the outbreak of COVID-19 in China, the Chinese government responded with the package of support including tax-cut and financial assistance, we keep our continuous attention on the situation of the COVID-19, assess and react actively to its impacts on our future operating results or near-and-long-term financial condition. Up to the date of this report, the assessment is still in progress.

Since we restored our operation near the end of March 2020, even COVID-19 resurgence occurred in October 2020, we are of the view that COVID-19 would be under control in near future. We assessed that 1) COVID-19-related impacts on our cost of capital or access to capital and funding sources and our sources or uses of cash have been insignificant; 2) There is no material uncertainty about our ongoing ability to meet the covenants of our credit agreements; 3) No material liquidity deficiency has been identified and we do not expect to disclose or incur any material COVID-19-related contingencies;4) COVID-19-related impacts on the assets on our balance sheet or our ability to timely account for those assets have been insignificant; and 5) The possibilities for COVID-19 to trigger any material impairments, increases in allowances for credit losses, restructuring charges, other expenses, or changes in accounting judgments that have had or are reasonably likely to have a material impact on our financial statements are low. Looking forward, we keep our continuous attention on the situation of the COVID-19, assess and react actively to its impacts on issues mentioned above.

During PRC national economic shutdown that was imposed to limit the spread of COVID-19 from early February to mid-March of 2020, COVID-19-related circumstances such as remote work arrangements adversely affected our ability to maintain operations. Since the lifting of the national shutdown order near the end of March 2020, our operations including financial reporting systems, internal control over financial reporting and disclosure controls and procedures have already resumed. Currently we keep our continuous attention on the situation of the COVID-19, assess and react actively to its impacts on our future business continuity plans or whether material resource constraints in implementing these plans. Up to the date of this report, the assessment is still in progress.

During PRC national economic shutdown that was imposed to limit the spread of COVID-19 from early February to mid-March of 2020, the demands for our products or services were severely affected. Since the restarting of our operation near the end of March 2020, the demands had been rebounding slowly but continuously. However, COVID-19 resurgence which occurred in October 2020 had caused one and off traffic restrictions and lockdowns and put numerous business negotiations and sales contracts signing on hold.

Notwithstanding the difficulty at the present, we are capable to take the blows on the product demands and are optimistic about an eventual recovery in demand to pre-pandemic levels.

During PRC national economic shutdown that was imposed to limit the spread of COVID-19 from early February to mid-March of 2020, our supply chain or the methods used to distribute our products or services were severely affected. Since the lift of the national shutdown order near the end of March 2020, all of our supply chains or the methods had returned to normal gradually. However, COVID-19 resurgence which occurred in October 2020 had caused one and off traffic restrictions and lockdowns then inevitably made the adverse impacts on our supply chains. And COVID-19 highlights the need to transform our current supply chain models.

We shall take the actions to respond to business disruption and supply chain challenges from the global spread of COVID-19 and looks ahead to the longer-term solution of digital supply networks.

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VARIABLE INTEREST ENTITY

6 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

VARIABLE INTEREST ENTITY

NOTE 4 - VARIABLE INTEREST ENTITY

The VIE contractual arrangements

On December 27, 2018, the Company entered into VIE agreements with two shareholders of Fangguan Electronics to control 95.14% of the ownership rights and receive 100% of the net profit or net losses derived from the business operations of Fangguan Electronics. In exchange for VIE agreements and additional capital contribution, the Company issued 15 million shares of common stock to two shareholders of Fangguan Electronics. (See Note 1).

The transaction was accounted for as a business combination using the acquisition method of accounting. The assets, liabilities and the operations of Fangguan Electronics subsequent to the acquisition date were included in the Company’s consolidated financial statements.

Through power of attorney, equity interest purchase agreement, and equity interest pledge agreement, 95.14% of the voting rights of Fangguan Electronics’ shareholders have been transferred to the Company so that the Company has effective control over Fangguan Electronics and have the power to direct the activities of Fangguan Electronics that most significantly impact its economic performance.

Through business operation agreement with the shareholders of VIE, the Company shall direct the business operations of Fangguan Electronics, including, but not limited to, adopting corporate policy regarding daily operations, financial management, and employment, and appointment of directors and senior officers.

Through the exclusive technical support service agreement with the shareholders of VIE, the Company shall provide VIE with necessary technical support and assistance as the exclusive provider. And at the request of the Company, VIE shall pay the performance fee, the depreciation and the service fee to the Company. The performance fee shall be equivalent to 5% of the total revenue of VIE in any Calendar year. The depreciation amount on equipment shall be determined by accounting rules of China. The Company has the right to set and revise annually this service fee unilaterally with reference to the performance of VIE.

The service fee that the Company is entitled to earn shall be the total business incomes of the whole year minus performance fee and equipment depreciation. This agreement allows the Company to collect 100% of the net profits of the VIE. Except for technical support, the Company did not provide, nor does it intend to provide, any financial or other support either explicitly or implicitly during the periods presented to its variable interest entity.

If facts and circumstances change such that the conclusion to consolidate the VIE has changed, the Company shall disclose the primary factors that caused the change and the effect on the Company’s financial statements in the periods when the change occurs.

There are no restrictions on the consolidated VIE’s assets and on the settlement of its liabilities and all carrying amounts of VIE’s assets and liabilities are consolidated with the Company’s financial statements. In addition, the net income of Fangguan Electronics after Fangguan Electronics became the VIE of the Company is free of restrictions for payment of dividends to the shareholders of the Company.

Assets of Fangguan Electronics that are collateralized or pledged are not restricted to settle its own obligations. The creditors of Fangguan Electronics do not have recourse to the primary beneficiary’s general credit.

Risks associated with the VIE structure

The Company believes that the contractual arrangements with its VIE and respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could:

•

revoke the business and operating licenses of the Company’s PRC subsidiary and its VIE;

•

discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and its VIE;

•

limit the Company’s business expansion in China by way of entering into contractual arrangements;

•

impose fines or other requirements with which the Company’s PRC subsidiary and its VIE may not be able to comply;

•

require the Company or the Company’s PRC subsidiary and its VIE to restructure the relevant ownership structure or operations; or

•

restrict or prohibit the Company’s use of the proceeds from public offering to finance the Company’s business and operations in China.

The Company’s ability to conduct its business through its VIE may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to exert effective control over its VIE and its respective shareholders and it may lose the ability to receive economic benefits from its VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and its VIE. There has been no change in facts and circumstances to consolidate the VIE. The following financial statement amounts and balances of its VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances:

	Balance as of December 31, 2020		Balance as of June 30, 2020
Cash and cash equivalents	$	855,616	$	1,266,426
Notes receivable		35,320		125,798
Accounts receivable - non-related parties		3,189,072		3,069,629
Inventory		3,017,700		2,639,839
Advances to suppliers - non-related parties		625,484		530,670
Prepaid expenses and other current assets		81,424		58,103
Total Current Assets		7,804,616		7,690,465

Property, plant and equipment, net		6,996,421		6,568,874
Intangible assets, net		1,508,762		1,424,404
Deferred tax assets		47,778		20,743
Total Assets	$	16,357,577	$	15,704,486

Short-term bank loan	$	1,681,906	$	2,034,735
Accounts payable		2,455,750		2,637,792
Advance from customers		30,967		27,501
Due to related parties		1,981,879		1,407,145
Accrued expenses and other current liabilities		4,923		61,856
Total Current Liabilities		6,155,425		6,169,029
Total Liabilities	$	6,155,425	$	6,169,029

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INVENTORIES

6 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 5 - INVENTORIES

Inventories are stated at the lower of cost (determined using the weighted average cost) or net realizable value. Inventories consist of the following:

	December 31, 2020		June 30, 2020
Raw materials	$	633,073	$	666,981
Work-in-process		960,245		500,331
Finished goods		1,972,130		2,096,538
Total Inventories	$	3,565,448	$	3,263,850

The Company recorded no inventory markdown for the three and six months ended December 31, 2020 and 2019.

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OPERATING LEASE

6 Months Ended

Dec. 31, 2020

Operating Lease, Lease Income [Abstract]

OPERATING LEASE

NOTE 6 - OPERATING LEASE

For the six months ended December 31, 2020, the Company had two real estate operating leases for office, warehouses and manufacturing facilities under the terms of one year.

Lisite Science Technology (Shenzhen) Co., Ltd ("Lisite Science") leases office and warehouse space from Shenzhen Keenest Technology Co., Ltd. (“Keenest”), a related party, with annual rent of approximately $1,500 (RMB10,000) for one year until July 20, 2020. On July 20, 2020, Lisite Science further extended the lease with Keenest for one more year until July 20, 2021 with annual rent of approximately $1,500 (RMB10,000). (See Note 11).

Shenzhen Baileqi Electronic Technology Co., Ltd. ("Baileqi Electronic") leases office and warehouse space from Shenzhen Baileqi Science and Technology Co., Ltd. (“Shenzhen Baileqi S&T”), a related party, with monthly rent of approximately $2,500 (RMB17,525) and the lease period is from June 1, 2019 to May 31, 2020. On June 5, 2020, Baileqi Electronic further extended the lease with Shenzhen Baileqi S&T for one more year until May 31, 2021 with monthly rent of approximately $2,500 (RMB17,525). (See Note 11).

The Company made an accounting policy election not to recognize lease assets and liabilities for the leases listed above as all lease terms are 12 months or shorter.

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PROPERTY, PLANT AND EQUIPMENT, NET

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET

The components of property, plant and equipment were as follows:

	December 31, 2020			June 30, 2020

Buildings	$	5,011,200		$	4,601,685
Machinery and equipment		3,222,821			2,822,686
Office equipment		73,665			67,091
Automobiles		106,999			98,848
Subtotal		8,414,685			7,590,310
Less: Accumulated depreciation		(1,413,533	)		(1,016,373	)
Property, plant and equipment, net	$	7,001,152		$	6,573,937

Depreciation expense related to property, plant and equipment was $300,941 and $384,408 for the six months ended December 31, 2020 and 2019, respectively.

Depreciation expense related to property, plant and equipment was $135,731 and $183,340 for the three months ended December 31, 2020 and 2019, respectively.

As of December 31, 2020 and June 30, 2020, buildings were pledged as collateral for bank loans (See Note 9).

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INTANGIBLE ASSETS, NET

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

NOTE 8 – INTANGIBLE ASSETS, NET

Intangible assets consist of the following:

	December 31, 2020			June 30, 2020

Land use right	$	1,561,400		$	1,442,456
Computer software		29,539			25,039
Subtotal		1,590,939			1,467,495
Less: Accumulated amortization		(82,177	)		(43,091	)
Intangible assets, net	$	1,508,762		$	1,424,404

Amortization expense related to intangible assets was $34,126 and $14,672 for the six months ended December 31, 2020 and 2019, respectively.

Amortization expense related to intangible assets was $26,810 and $7,426 for the three months ended December 31, 2020 and 2019, respectively.

Fangguan Electronics acquired the land use right from the local government in August 2012 which expires on August 15, 2062. As of December 31, 2020 and June 30, 2020, land use right was pledged as collateral for bank loans (See Note 9).

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SHORT-TERM BANK LOAN

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

SHORT-TERM BANK LOAN

NOTE 9 – SHORT-TERM BANK LOAN

The Company’s short-term bank loans consist of the following:

		December 31, 2020		June 30, 2020
Loan payable to Industrial Bank, due November 2020	(1)	$	-	$	1,836,288
Loan payable to Industrial Bank, due May 2021	(2)		167,080		154,353
Loan payable to Industrial Bank, due June 2021	(2)		47,730		44,094
Loan payable to Industrial Bank, due August 2021	(3)		549,692		-
Loan payable to Industrial Bank, due March 2021	(3)		458,702		-
Loan payable to Industrial Bank, due June 2021	(4)		458,702		-
Total		$	1,681,906	$	2,034,735

(1)

On November 19, 2019, Fangguan Electronics entered into a short-term loan agreement with Industrial Bank to borrow approximately US$2.6 million (RMB 18 million) for a year until November 18, 2020 with annual interest rate of 5.22%. The borrowing was collateralized by the Company’s buildings and land use right. In addition, the borrowing was guaranteed by the Company’s shareholder and CEO of Fangguan Electronics, Mr. Jialin Liang, and his wife Ms. Dongjiao Su. On May 20, 2020, Fangguan Electronics partially repaid this bank loan of approximately US$706,000 (RMB5,000,000). On August 28, 2020 and September 21, 2020, Fangguan Electronics further partially repaid this bank loan of approximately US$441,000 (RMB3,000,000) and US$734,000 (RMB5,000,000) respectively. On November 18, 2020, Fangguan Electronics repaid the remaining balance in full of this bank loan of approximately US$764,500 (RMB5,000,000).

(2)

During May and Jun 2020, Fangguan Electronics issued two one-year commercial acceptance bills with amounts of approximately US$167,000 (RMB1,092,743) and US$48,000 (RMB312,161) and maturity dates at May 21, 2021 and June 11, 2021 respectively. On May 22, 2020 and June 16, 2020, the two commercial acceptance bills were discounted with Industrial Bank at an interest rate of 3.85% and the balance of the two commercial acceptance bills converted to bank loans with Industrial Bank based on a mutual agreement from both parties. This loan was also secured by the same collateral as the above RMB18 million loan under the same bank.

(3)

During August 2020, Fangguan Electronics issued a one-year commercial acceptance bill with amount of approximately US$550,000 (RMB3,595,096) and maturity date at August 6, 2021. During September 2020, Fangguan Electronics issued a six-month commercial acceptance bill with amount of approximately US$459,000 (RMB3,000,000) and maturity date at March 9, 2021. On August 11, 2020 and September 10, 2020, the two commercial acceptance bills were discounted with Industrial Bank at an interest rate of 3.80% and the balance of the two commercial acceptance bills converted to bank loans with Industrial Bank based on a mutual agreement from both parties. This loan was also secured by the same collateral as the above RMB18 million loan under the same bank.

(4) During December 2020, Fangguan Electronics issued a six-month commercial acceptance bill with amount of approximately US$459,000 (RMB3,000,000) and maturity date at June 4, 2021. On December 7, 2020, the commercial acceptance bill was discounted with Industrial Bank at an interest rate of 3.85% and the balance of the commercial acceptance bill converted to bank loan with Industrial Bank based on a mutual agreement from both parties. This loan was also secured by the same collateral as the above RMB18 million loan under the same bank.

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STOCKHOLDERS' EQUITY

6 Months Ended

Dec. 31, 2020

Stockholders' Equity:

STOCKHOLDERS' EQUITY

NOTE 10 - STOCKHOLDERS' EQUITY

Stock Issued for Conversion of Convertible Debt

During the six months ended December 31, 2020, the Company issued a total of 9,470,630 shares of common stock for the conversion of debt in the principal amount of $273,200 together with all accrued and unpaid interest, according to the conditions of the convertible notes. All these conversions resulted in a total loss on extinguishment of debt of $256,639 for the six months ended December 31, 2020. The remaining principal balance due under convertible notes after these conversions and other debt settlements (See Note 14) is zero.

Stock Issued for Exercise of Warrants

On December 21, 2020, the Company issued a total of 1,500,000 shares of common stock to FirstFire Global Opportunities Fund, LLC for the exercise of warrants in full, according to the conditions of the convertible note dated as September 11, 2019. The exercise of warrants resulted in a loss of $67,028 for the six months ended December 31, 2020. (See Note 14)

Stock Issued for Private Placement

In December 2020, the Company issued a total of 28,869,999 shares of common stock to nine individual subscribers for an aggregate purchase price of $433,000 at $0.015 per share, according to the conditions of the subscription agreements signed between the Company and subscribers.

Stock Issued as Commitment Shares for Promissory Note

On December 31, 2020, the Company issued 447,762 shares of common stock (the “First Commitment Shares”) and 1,119,402 shares of common stock (the “Second Commitment Shares”) related to the promissory note as a commitment fee. The Second Commitment Shares must be returned to the Company’s treasury if the promissory note is fully repaid and satisfied on or prior to the maturity date. The Company recorded the First Commitment Shares as debt discount valued at $68,060 based on the quoted market price at issue date and amortized over the term of the promissory note. The Company recorded the Second Commitment Shares at par for the six months ended December 31, 2020. (See Note 15)

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RELATED PARTY TRANSACTIONS AND BALANCES

6 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS AND BALANCES

NOTE 11 - RELATED PARTY TRANSACTIONS AND BALANCES

Purchase from related party

During the six months ended December 31, 2019, the Company purchased $1,464,537 and $37,495 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s stockholders who own approximately 1.4% and 0.8% respectively of the Company’s outstanding common stock. The amount of $1,464,537 and $37,495 were included in the cost of revenue for the six months ended December 31, 2019.

During the three months ended December 31, 2019, the Company purchased $880,773 and $0 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s stockholders who own approximately 1.4% and 0.8% respectively of the Company’s outstanding common stock. The amounts of $880,773 and $0 were included in the cost of revenue for the three months ended December 31, 2019.

Advances to suppliers - related parties

Lisite Science made advances of $429,264 and $357,577 to Keenest for future purchases as of December 31, 2020 and June 30, 2020, respectively.

Sales to related party

During the six months ended December 31, 2020 and 2019, Baileqi Electronic sold materials of $0 and $644,392 respectively to Shenzhen Baileqi S&T.

During the three months ended December 31, 2020 and 2019, Baileqi Electronic sold materials of $0 and $330,435 respectively to Shenzhen Baileqi S&T.

Lease from related party

Lisite Science leases office and warehouse space from Keenest, a related party, with annual rent of approximately $1,500 (RMB10,000) for one year until July 20, 2020. On July 20, 2020, Lisite Science further extended the lease with Keenest for one more year until July 20, 2021 with annual rent of approximately $1,500 (RMB10,000). (See Note 6).

Baileqi Electronic leases office and warehouse space from Shenzhen Baileqi S&T, a related party, with monthly rent of approximately $2,500 (RMB17,525) and the lease period is from June 1, 2019 to May 31, 2020. On June 5, 2020, Baileqi Electronic further extended the lease with Shenzhen Baileqi S&T for one more year until May 31, 2021 with monthly rent of approximately $2,500 (RMB17,525). (See Note 6).

Due to related parties

Due to related parties represents certain advances to the Company or its subsidiaries by related parties. The amounts are non-interest bearing, unsecured and due on demand.

		December 31, 2020			June 30, 2020

Ben Wong	(1)	$	143,792		$	143,792
Yubao Liu	(2)		333,628			102,938
Xin Sui	(3)		2,016			2,016
Baozhen Deng	(4)		(488	)		9,437
Jialin Liang	(5)(10)		1,434,495			901,460
Xuemei Jiang	(6)(9)		547,384			505,685
Shikui Zhang	(7)		45,854			28,528
Changyong Yang	(8)		29,246			23,063
		$	2,535,927		$	1,716,919

(1) Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc.

(2) Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc.

(3) Xin Sui is a member of the board of directors of Welly Surplus.

(4) Baozhen Deng is a stockholder of the Company, who owns approximately 0.8% of the Company’s outstanding common stock, and the owner of Shenzhen Baileqi S&T.

(5) Jialin Liang is a stockholder of the Company and the president, CEO, and director of Fangguan Electronics.

(6) Xuemei Jiang is a stockholder of the Company and the vice president and director of Fangguan Electronics.

(7) Shikui Zhang is a stockholder of the Company and serves as the legal representative and general manager of Shizhe New Energy since May 2019.

(8) Changyong Yang is a stockholder of the Company, who owns approximately 1.4% of the Company’s outstanding common stock, and the owner of Keenest.

(9) The liability was assumed from the acquisition of Fangguan Electronics.

(10) The Company assumed liability of approximately $5.8 million (RMB39,581,883) from Jialin Liang during the acquisition of Fangguan Electronics. During the year ended June 30, 2019, approximately $4.4 million (RMB30,000,000) liability assumed was forgiven and converted to capital.

During the six months ended December 31, 2020, Yubao Liu advanced $503,475 to Well Best after netting off the refund paid to him. In addition, Yubao Liu agreed to decrease his advances to Well Best of $272,785 (RMB1,784,069) to pay off the loan receivables due from Shenzhen Baileqi S&T to Baileqi Electronic on behalf of Shenzhen Baileqi S&T.

During the six months ended December 31, 2020, Baileqi Electronic refunded $9,925 to Baozhen Deng. Shikui Zhang advanced approximately $14,000 to Shizhe New Energy. Changyong Yang, a stockholder of the Company, advanced approximately $4,000 to Lisite Science.

On September 23, 2020, Jialin Liang entered into a short-term loan agreement with Bank of Communications to borrow an individual loan of approximately US$441,000 (RMB 3 million) for one year with annual interest rate of 3.85%. The borrowing was guaranteed by Fangguan Electronics. Pursuant to the loan agreement, the proceed from the bank loan could only be used in the operation of Fangguan Electronics. On September 23, 2020, Jialin Liang advanced all of the proceeds from this bank loan to Fangguan Electronics.

During the six months ended December 31, 2019, Yubao Liu was refunded of $9,028 by Welly Surplus after netting off his advances to Well Best. Baileqi Electronic refunded $5,303 to Baozhu Deng, a relative of the stockholder Baozhen Deng, and Baozhen Deng advanced $2,810 to Baileqi Electronic. Shizhe New Energy refunded $625 and $1,869 to Liang Zhang and Zijian Yang respectively, who were the officers of Shizhe New Energy at the time. Shikui Zhang advanced $16,548 to Shizhe New Energy.

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CONCENTRATION

6 Months Ended

Dec. 31, 2020

Risks and Uncertainties [Abstract]

CONCENTRATION

NOTE 12 – CONCENTRATION

Major customers

Customers who accounted for 10% or more of the Company’s revenues (goods sold and services) and its outstanding balance of accounts receivable are presented as follows:

	For the Six Months Ended December 31, 2020					As of December 31, 2020
	Revenue		Percentage of total revenue			Accounts receivable		Percentage of total accounts receivable

Customer A	$	1,053,587		18	%	$	276,004		8	%
Customer B		867,393		15	%		29,501		1	%
Total	$	1,920,980		33	%	$	305,505		9	%

	For the Six Months Ended December 31, 2019					As of December 31, 2019
	Revenue		Percentage of total revenue			Accounts receivable		Percentage of total accounts receivable

Customer A	$	1,732,012		12	%	$	-		-	%
Total	$	1,732,012		12	%	$	-		-	%

	For the Three Months Ended December 31, 2020					As of December 31, 2020
	Revenue		Percentage of total revenue			Accounts receivable		Percentage of total accounts receivable

Customer A	$	419,600		14	%	$	276,004		8	%
Customer B		580,436		19	%		29,501		1	%
Customer C		312,594		10	%		144,581		4	%
Total	$	1,312,630		43	%	$	450,086		13	%

	For the Three Months Ended December 31, 2019					As of December 31, 2019
	Revenue		Percentage of total revenue			Accounts receivable		Percentage of total accounts receivable

Customer A	$	871,138		12	%	$	-		-	%
Customer B		773,138		11	%		-		-	%
Customer C		851,841		12	%		-		-	%
Total	$	2,496,117		35	%	$	-		-	%

Primarily all customers are located in the PRC.

Major suppliers

The suppliers who accounted for 10% or more of the Company’s total purchases (materials and services) and its outstanding balance of accounts payable are presented as follows:

	For the Six Months Ended December 31, 2020					As of December 31, 2020
	Purchase		Percentage of total purchase			Accounts payable		Percentage of total accounts payable

Supplier A	$	743,919		15	%	$	-		-	%
Supplier B		524,926		10	%		293,821		12	%
Total	$	1,268,845		25	%	$	293,821		12	%

	For the Six Months Ended December 31, 2019					As of December 31, 2019
	Purchase		Percentage of total purchase			Accounts payable		Percentage of total accounts payable

Supplier A - related party	$	1,464,537		13	%	$	-		-	%
Supplier B		2,168,109		19	%		126,261		4	%
Total	$	3,632,646		32	%	$	126,261		4	%

	For the Three Months Ended December 31, 2020					As of December 31, 2020
	Purchase		Percentage of total purchase			Accounts payable		Percentage of total accounts payable

Supplier A	$	448,321		17	%	$	-		-	%
Total	$	448,321		17	%	$	-		-	%

	For the Three Months Ended December 31, 2019					As of December 31, 2019
	Purchase		Percentage of total purchase			Accounts payable		Percentage of total accounts payable

Supplier A - related party	$	880,773		15	%	$	-		-	%
Supplier B		1,056,219		17	%		126,261		4	%
Total	$	1,936,992		32	%	$	126,261		4	%

All suppliers of the Company are located in the PRC.

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INCOME TAXES

6 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13 - INCOME TAXES

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in United States of America, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate.

United States of America

The Company is registered in the State of Nevada and is subject to the tax laws of United States of America and subject to the corporate tax rate of 21% on its taxable income.

For the three and six months ended December 31, 2020 and 2019, the Company did not generate income in United States of America and no provision for income tax was made. Under normal circumstances, the Internal Revenue Service is authorized to audit income tax returns during a three-year period after the returns are filed. In unusual circumstances, the period may be longer. Tax returns for the years ended June 30, 2016 and after were still open to audit as of December 31, 2020.

Hong Kong

The Company’s subsidiaries, Well Best and Welly Surplus, are registered in Hong Kong and subject to income tax rate of 16.5%. For the three and six months ended December 31, 2020 and 2019, there is no assessable income chargeable to profit tax in Hong Kong.

The PRC

The Company’s subsidiaries in China are subject to a unified income tax rate of 25%. Fangguan Electronics was certified as high-tech enterprises for three calendar years from 2016 to 2019 and is taxed at a unified income tax rate of 15%. Fangguan Electronics has renewed the high-tech enterprise certificate which granted it the tax rate of 15% for the three whole calendar years of 2019 to 2021.

The reconciliation of income tax expense (benefit) at the U.S. statutory rate of 21% to the Company's effective tax rate is as follows:

	For the Six Months Ended December 31,
	2020			2019

Tax (benefit) at U.S. statutory rate	$	(191,925	)	$	215,961
Tax rate difference between foreign operations and U.S.		19,747			(105,068	)
Change in valuation allowance		106,869			76,612
Permanent difference		39,805			(6,056	)
Effective tax (benefit)	$	(25,504	)	$	181,449

The provisions for income taxes (benefits) are summarized as follows:

	For the Six Months Ended December 31,
	2020			2019
Current	$	(1,182	)	$	152,570
Deferred		(24,322	)		28,879
Total	$	(25,504	)	$	181,449

As of December 31, 2020, the Company has approximately $3,044,000 net operating loss carryforwards available in the U.S., Hong Kong and China to reduce future taxable income which will begin to expire from 2035. It is more likely than not that the deferred tax assets resulted from net operating loss carryforward cannot be utilized in the future because there will not be significant future earnings from the entities which generated the net operating loss. Therefore, the Company recorded a full valuation allowance on its deferred tax assets resulted from net operating loss carryforward as of December 31, 2020.

On December 22, 2017, the “Tax Cuts and Jobs Act” (“The 2017 Tax Act”) was enacted in the United States. Under the provisions of the Act, the U.S. corporate tax rate decreased from 34% to 21%. Accordingly, the Company has re-measured its deferred tax assets on net operating loss carry forwards in the U.S at the lower enacted cooperated tax rate of 21%. However, this re-measurement has no effect on the Company’s income tax expenses as the Company has provided a 100% valuation allowance on its deferred tax assets previously.

Additionally, the 2017 Tax Act implemented a modified territorial tax system and imposing a tax on previously untaxed accumulated earnings and profits (“E&P”) of foreign subsidiaries (the “Toll Charge”). The Toll Charge is based in part on the amount of E&P held in cash and other specific assets as of December 31, 2017. The Toll Charge can be paid over an eight-year period, starting in 2018, and will not accrue interest. The 2017 Tax Act also imposed a global intangible low-taxed income tax (“GILTI”), which is a new tax on certain off-shore earnings at an effective rate of 10.5% for tax years beginning after December 31, 2017 (increasing to 13.125% for tax years beginning after December 31, 2025) with a partial offset for foreign tax credits.

The Company has determined that this one-time Toll Charge has no effect on the Company’s income tax expenses as the Company has no undistributed foreign earnings at either of the two testing dates of November 2, 2017 and December 31, 2017.

For purposes of the inclusion of GILTI, the Company determined that the Company did not have tax liabilities resulting from GILTI for the three and six months ended December 31, 2020 and 2019 due to net operating loss carryforwards available in the U.S. Therefore, there was no accrual of GILTI liability as of December 31, 2020 and June 30, 2020.

The extent of the Company’s operations involves dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

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CONVERTIBLE DEBT

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

CONVERTIBLE DEBT

NOTE 14 - CONVERTIBLE DEBT

Convertible notes

Convertible notes payable balance was zero as of December 31, 2020.

As of June 30, 2020, convertible notes payable consists of:

		Note Balance		Debt discount			Carrying Value

Power Up Lending Group Ltd	(1)	$	39,000	$	(1,953	)	$	37,047
Firstfire Global Opportunities Fund LLC	(2)		165,000		(32,909	)		132,091
Power Up Lending Group Ltd	(3)		53,000		(13,995	)		39,005
Crown Bridge Partners	(4)		51,384		(15,095	)		36,289
Morningview Financial LLC	(5)		165,000		(64,416	)		100,584
BHP Capital NY	(6)		91,789		-			91,789
Labrys Fund, LP	(7)		146,850		(69,265	)		77,585
Total		$	712,023	$	(197,633	)	$	514,390

(1)

On July 25, 2019, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount of $103,000 and received $94,840 in cash on August 1, 2019 after deducting legal fees and other costs. The convertible note bears interest rate at 6% per annum and due on July 25, 2020. The convertible note can be converted into shares of the Company’s common stock at 65% of the average of the two lowest trading prices during the fifteen trading day prior to the conversion date.

During the six months ended December 31, 2020, Power Up Lending Group Ltd elected to convert $39,000 of the principal amount together with $4,916 of accrued and unpaid interest of the convertible notes into 264,970 shares of the Company’s common stock. The conversion resulted in a loss on extinguishment of debt of $32,778. (See Note 10)

The remaining principal balance due under this convertible note after all conversions is zero as of December 31, 2020.

(2)

On September 11, 2019, the Company entered into a Securities Purchase Agreement with Firstfire Global Opportunities Fund LLC to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount of $165,000 and received $143,500 in cash on September 18, 2019 after deducting an original issue discount in the amount of $15,000 (the “OID”), legal fees and other costs. The convertible note bears interest rate at 5% per annum and payable in one year. Conversion price shall be equal to the lower of (i) $2.00 or (ii) 75% multiplied by the lowest traded price of the common stock during the twenty consecutive trading day period immediately preceding the date of the respective conversion.

During the six months ended December 31, 2020, Firstfire Global Opportunities Fund LLC elected to convert $68,850 of the principal amount of the convertible notes into 4,125,000 shares of the Company’s common stock. The conversion resulted in a loss on extinguishment of debt of $67,512 (See Note 10).

After the foregoing conversions, on November 12, 2020, the Company paid Firstfire Global Opportunities Fund LLC, the holder of the Company’s convertible debt an aggregate of $130,500 in order to terminate their convertible note dated September 11, 2019, including all accrued and unpaid interest. The payment was made by Yubao Liu on behalf of the Company and the note holder confirmed this full settlement on November 13, 2020. The debt settlement resulted in a gain on extinguishment of debt of $94,928.

The remaining principal balance due under this convertible note after all conversions and settlement is zero as of December 31, 2020.

(3)

On November 4, 2019, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount of $53,000 and received $47,350 in cash on November 12, 2019 after deducting legal fees and other costs. The convertible note bears interest rate at 6% per annum and due on November 4, 2020. The convertible note can be converted into shares of the Company’s common stock at 65% of the average of the two lowest trading prices during the fifteen trading day prior to the conversion date.

On September 16, 2020, the Company entered into a Note Settlement Agreement with Power Up Lending Group Ltd., the holder of the Company’s convertible debt. The Note Settlement Agreement terminated their convertible note dated November 4, 2019, including all accrued and unpaid interest, after the Company paid an aggregate of $75,000 on September 16, 2020. The debt settlement resulted in a gain on extinguishment of debt of $15,346.

(4)

On November 12, 2019, the Company entered into a Securities Purchase Agreement with Crown Bridge Partners, LLC to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount sum up to $165,000 with a purchase price sum up to $156,750. During November 2019, First Tranche of the agreement was executed in the principal amount of $55,000 and the Company received $50,750 in cash on November 15, 2019 after deducting an OID in the amount of $2,750, legal fees and other costs. The convertible note bears interest rate at 5% per annum and due on November 12, 2020. The convertible note can be converted into shares of the Company’s common stock at 75% multiplied by the lowest traded price of the common stock during the twenty consecutive trading day period immediately preceding the date of the respective conversion.

On October 16, 2020, the Company issued a total of 500,000 shares of common stock to Crown Bridge Partners, LLC for the conversion of debt in the principal amount of $3,500 according to the conditions of the convertible note dated as November 12, 2019. The conversion resulted in a loss on extinguishment of debt of $22,424. (See Note 10)

After the foregoing conversions, on December 7, 2020, the Company paid Crown Bridge Partners, LLC, the holder of the Company’s convertible debt an aggregate of $82,500 in order to terminate their convertible note dated November 12, 2019, including all accrued and unpaid interest. Among the total, payment of $60,000 was made by Yubao Liu on behalf of the Company while the remaining payment of $22,500 was made directly by the Company. The note holder confirmed this full settlement on December 10, 2020. The debt settlement resulted in a gain on extinguishment of debt of $206,377.

The remaining principal balance due under this convertible note after all conversions and settlement is zero as of December 31, 2020.

(5)

On November 20, 2019, the Company entered into a Securities Purchase Agreement with Morningview Financial, LLC to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount of $165,000 and received $153,250 in cash on November 22, 2019 after deducting an OID in the amount of $8,250, legal fees and other costs. The convertible note bears interest rate at 5% per annum and due on November 20, 2020. Conversion price shall be equal to the lower of (i) $2.00 or (ii) 75% multiplied by the lowest traded price of the common stock during the twenty consecutive trading day period immediately preceding the date of the respective conversion.

On September 24, 2020, Morningview Financial, LLC elected to convert $15,000 of the principal amount of the convertible notes into 568,182 shares of the Company’s common stock. The conversion resulted in a loss on extinguishment of debt of $5,907. (See Note 10)

After the foregoing conversions, on November 12, 2020, the Company paid Morningview Financial, LLC, the holder of the Company’s convertible debt an aggregate of $175,000 in order to terminate their convertible note dated November 20, 2019, including all accrued and unpaid interest. The payment was made by Yubao Liu on behalf of the Company and the note holder confirmed this full settlement on November 14, 2020. The debt settlement resulted in a gain on extinguishment of debt of $209,604.

The remaining principal balance due under this convertible note after all conversions and settlement is zero as of December 31, 2020.

(6)

On December 3, 2019, the Company entered into a Securities Purchase Agreement with BHP Capital NY, Inc to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount of $102,900 and received $95,500 in cash on December 13, 2019 after deducting and OID in the amount of $4,900, legal fees and other costs. The convertible note bears interest rate at 5% per annum and due on December 3, 2020. The convertible note can be converted into shares of the Company’s common stock at 75% of the average of the two lowest trading prices during the fifteen trading day prior to the conversion date.

On April 14, 2020, the Company entered into an Amendment to Securities Purchase Agreement with BHP Capital NY, Inc dated on December 3, 2019. The Company agreed to pay off this note holder in 6 installments of $23,186.79 each, with an aggregate amount of $139,121 (including principal of $137,114 and interest of $2,007). The repayment resulted in a loss on extinguishment of debt of $4,703, which was included in other income and expense in the consolidated statement of comprehensive income (loss) for the year ended June 30, 2020.

In May and June 2020, the Company paid two installments totaling $46,373 (including principal of $45,325 and interest of $1,048) and note payable balance decreased to $91,789 as of June 30, 2020. During the period from July to September 2020, the Company continued to pay 4 installments of an aggregate amount of $92,748 (including principal of $91,789 and interest of $959).

As of the date of this report, the Company has made total six installments payment of an aggregate amount of $139,121 (including principal of $137,114 and interest of $2,007). The note payable balance decreased to zero as of December 31, 2020.

(7)

On January 10, 2020, the Company entered into a convertible promissory note with Labrys Fund, LP to issue and sell, upon the terms and conditions set forth in the agreement a convertible note of the Company, in the aggregate principal amount of $146,850 and received $137,000 in cash on January 13, 2020 after deducting an OID in the amount of $7,350, legal fees and other costs. The note is due on January 10, 2021 and bears interest at 5% per annum. The conversion price shall be equal to 75% multiplied by the lesser of the lowest closing bid price or lowest traded price of the Common Stock during the twenty (20) consecutive trading day period immediately preceding the date of the respective conversion.

During the six months ended December 31, 2020, Labrys Fund, LP elected to convert $146,850 of the principal amount together with all accrued and unpaid interest of the convertible notes into 4,012,478 shares of the Company’s common stock. The conversion resulted in a loss on extinguishment of debt of $128,018. The remaining principal balance due under this convertible note after all conversions is zero as of December 31, 2020. (See Note 10)

All convertible notes aforementioned

For the six months ended December 31, 2020 and 2019, the Company recorded the amortization of debt discount of $138,399 and 181,336 for the convertible notes issued, which were included in other income and expense in the consolidated statement of comprehensive income (loss).

For the three months ended December 31, 2020 and 2019, the Company recorded the amortization of debt discount of $24,185 and 160,023 for the convertible notes issued, which were included in other income and expense in the consolidated statement of comprehensive income (loss).

Derivative liability

Upon issuing of the convertible notes, the Company determined that the conversion feature embedded in the notes referred to above that contain a potential variable conversion amount constitutes a derivative which has been bifurcated from the note and accounted for as a derivative liability, with a corresponding discount recorded to the associated debt. The excess of the derivative value over the face amount of the note, if any, is recorded immediately to interest expense at inception.

The derivative liability in connection with the conversion feature of the convertible debt is the only financial liability measured at fair value on a recurring basis.

The change of derivative liabilities is as follows:

Balance at July 1, 2020	$	276,266
Converted		(357,868	)
Debt settlement		(566,030	)
Change in fair value recognized in operations		647,632
Balance at December 31, 2020	$	-

The estimated fair value of the derivative instruments was valued using the Black-Scholes option pricing model during the six months ended December 31, 2020, using the following assumptions:

Estimated dividends		None
Expected volatility		78.55% to 253.30%
Risk free interest rate		0.61% to 0.93%
Expected term		0 to 6 months

Warrants

In connection with the issuance of the $165,000 convertible promissory note on September 11, 2019, FirstFire Global Opportunities Fund, LLC is entitled, upon the terms and subject to the limitations on exercise and the conditions set forth in the agreement, at any time on or after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.40, and the warrants can be exercised within 5 years which is before September 11, 2024.

On December 21, 2020, the Company issued a total of 1,500,000 shares of common stock to FirstFire Global Opportunities Fund, LLC for the exercise of warrants in full. The exercise of warrants resulted in a loss of $67,028 for the six months ended December 31, 2020. After this exercise, FirstFire Global Opportunities Fund, LLC is not entitled to any warrant to purchase shares. (See Note 10)

In connection with the issuance of the $55,000 convertible promissory note on November 12, 2019, Crown Bridge Partners, LLC is entitled, upon the terms and subject to the limitations on exercise and the conditions set forth in the agreement, at any time on or after the date of issuance hereof to purchase from the Company up to 22,916 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before November 12, 2024.

In December 2020, the Company paid a total of $82,500 to fully settle the convertible note dated November 12, 2019 with Crown Bridge Partners, LLC, including all accrued and unpaid interest and unexercised warrants. After this settlement, Crown Bridge Partners, LLC is not entitled to any warrant to purchase shares.

In connection with the issuance of the $165,000 convertible promissory note on November 20, 2019, Morningview Financial LLC is entitled, upon the terms and subject to the limitations on exercise and the conditions set forth in the agreement, at any time on or after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before November 20, 2024.

In November 2020, the Company paid a total of $175,000 to fully settle the convertible note dated November 20, 2019 with Morningview Financial LLC, including all accrued and unpaid interest and unexercised warrants. After this settlement, Morningview Financial LLC is not entitled to any warrant to purchase shares.

In connection with the issuance of the $146,850 convertible promissory note on January 10, 2020, Labrys Fund, LP is entitled, upon the terms and subject to the limitations on exercise and the conditions set forth in the agreement, at any time on or after the date of issuance hereof to purchase from the Company up to 68,750 shares of common stock. Exercise price shall be $2.80, and the warrants can be exercised within 5 years which is before January 10, 2025.

The estimated fair value of the warrants was valued using the Black-Scholes option pricing model at grant date, using the following assumptions:

Estimated dividends		None
Expected volatility		56.23% to 71.08%
Risk free interest rate		1.73% to 1.92%
Expected term		5 years

Since the warrants can be exercised at $2.4 or $2.8 and are not liabilities, the face value of convertible notes was allocated between convertible note and warrant based on the fair values of the conversion feature and warrants. Accordingly, $147,492 was allocated to warrants and recorded in additional paid in capital account during the year ended June 30, 2020.

The details of the outstanding warrants are as follows:

	Number of shares			Weighted Average Exercise Price		Remaining Contractual Term (years)

Outstanding at July 1, 2020		229,166		$	2.68		4.2 to 4.53
Granted		-			-		-
Exercised or settled		(160,416	)		2.63		4.05 to 4.16
Cancelled or expired		-			-		-
Outstanding at December 31, 2020		68,750		$	2.80		4.03

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PROMISSORY NOTE

6 Months Ended

Dec. 31, 2020

Promissory Note

PROMISSORY NOTE

NOTE 15 – PROMISSORY NOTE

On December 21, 2020, the Company issued a self-amortization promissory note to Labrys Fund, L.P in the aggregate principal amount of $300,000. The promissory note is due on or before December 21, 2021 and bears an interest rate of five percent (5%) per annum. The note is not convertible unless in default, as defined in the agreement. The Company agreed to reserve 7,052,239 shares of its common stock for issuance if any debt is converted. The Company executed and closed the transaction on December 31, 2020 and received $253,500 in cash after deducting an OID in the amount of $30,000, legal fees of $3,000 and other costs of $13,500. The self-amortization promissory note has an amortization schedule of $35,000 payment at each month end beginning April 23, 2021 through December 21, 2021.

In connection with the issuance of promissory note, on December 31, 2020, the Company issued 447,762 shares of common stock (the “First Commitment Shares”) and 1,119,402 shares of common stock (the “Second Commitment Shares”) related to the promissory note as a commitment fee. The Second Commitment Shares must be returned to the Company’s treasury if the promissory note is fully repaid and satisfied on or prior to the maturity date. The Company recorded the First Commitment Shares as debt discount valued at $68,060 based on the quoted market price at issue date and amortized over the term of the promissory note. The Company recorded the Second Commitment Shares at par for the six months ended December 31, 2020. (See Note 10)

For the three and six months ended December 31, 2020, the Company recorded the amortization of debt discount of $1,274 for the self-amortization promissory note issued, which was included in other income and expense in the consolidated statement of comprehensive income (loss).

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SEGMENT INFORMATION

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 16 – SEGMENT INFORMATION

The Company’s business is classified by management into three reportable business segments (smart energy, photoelectric display and service contracts) supported by a corporate group which conducts activities that are non-segment specific. The smart energy reportable segment derives revenue from the sales of portable power banks that is intended to be utilized as a power source for electronic devices such as the iphone, ipad, mp3/mp4 players, PSP gaming systems, and cameras. The photoelectric display reportable segment derives revenue from the sales of LCM and LCD screens manufactured for small devices such as video capable baby monitors, electronic devices such as tablets and cell phones, and for use in televisions or computer monitors. The service contracts reportable segment derives revenue from providing IT and solution-oriented services. Unallocated items comprise mainly corporate expenses and corporate assets.

Although all of the Company’s revenue is generated from Mainland China, the Company is organizationally structured along business segments. The accounting policies of each operating segments are same and are described in Note 3, “Summary of Significant Accounting Policies”.

The following tables provide the business segment information for the three and six months ended December 31, 2020 and 2019.

	For the Six Months Ended December 31, 2020
	Smart energy			Photoelectric display			Service contracts			Unallocated items			Total

Revenues	$	-		$	5,939,602		$	1,746		$	-		$	5,941,348
Cost of Revenues		-			5,259,262			10,182			-			5,269,444
Gross profit (loss)		-			680,340			(8,436	)		-			671,904
Operating expenses		5,532			773,259			17,748			138,602			935,141
Loss from operations		(5,532	)		(92,919	)		(26,184	)		(138,602	)		(263,237	)
Net loss	$	(5,372	)	$	(120,254	)	$	(26,183	)	$	(736,615	)	$	(888,424	)

	For the Six Months Ended December 31, 2019
	Smart energy		Photoelectric display		Service contracts		Unallocated items			Total

Revenues	$	1,538,094	$	12,675,303	$	619,901	$	-		$	14,833,298
Cost of Revenues		1,464,537		10,529,594		349,545		-			12,343,676
Gross profit		73,557		2,145,709		270,356		-			2,489,622
Operating expenses		6,134		1,113,559		17,217		248,566			1,385,476
Income (loss) from operations		67,423		1,032,150		253,139		(248,566	)		1,104,146
Net income (loss)	$	59,568	$	863,135	$	230,065	$	(305,834	)	$	846,934

	For the Three Months Ended December 31, 2020
	Smart energy			Photoelectric display			Service contracts			Unallocated items			Total

Revenues	$	-		$	2,982,577		$	306		$	-		$	2,982,883
Cost of Revenues		-			2,587,857			198			-			2,588,055
Gross profit (loss)		-			394,720			108			-			394,828
Operating expenses		2,847			420,982			8,123			48,501			480,453
Loss from operations		(2,847	)		(26,262	)		(8,015	)		(48,501	)		(85,625	)
Net loss	$	(2,688	)	$	(31,770	)	$	(8,015	)	$	(313,645	)	$	(356,118	)

	For the Three Months Ended December 31, 2019
	Smart energy		Photoelectric display		Service contracts		Unallocated items			Total

Revenues	$	910,391	$	6,195,380	$	227,197	$	-		$	7,332,968
Cost of Revenues		880,773		5,172,690		217,109		-			6,270,572
Gross profit		29,618		1,022,690		10,088		-			1,062,396
Operating expenses		2,022		595,065		5,736		178,402			781,225
Income (loss) from operations		27,596		427,625		4,352		(178,402	)		281,171
Net income (loss)	$	21,727	$	338,659	$	3,958	$	(228,686	)	$	135,658

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 21
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 32
-Subparagraph (e)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

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SUBSEQUENT EVENTS

6 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 17 - SUBSEQUENT EVENTS

Stock Issued for Private Placement

On January 13, 2021, the Company issued a total of 7,000,000 shares of common stock to one individual subscriber for purchase price of $105,000 at $0.015 per share, according to the conditions of the subscription agreement signed by both parties.

New Consulting Agreement

On February 1, 2021, the Company entered into a consulting agreement with Mr. George Adamson, a well-known lithium battery expert in the United States, and Mr. Steve Bellamy, a senior financial advisor (collectively, the “Consultants”) for the purpose of improving the core competitiveness and brand image of the Company. The Consultants have been engaged to assist the Company to establish a corporate head office in Las Vegas, Nevada, which would function in manufacturing, assembly and R&D. The Consultants will each earn 96,000 restricted stock of the Company with 48,000 on August 1, 2021 and 48,000 on February 1, 2022.

Establishment of A New Subsidiary

On February 7, 2021, the Board of Directors of the Company approved and ratified the incorporation of Shijirun (Yixing) Technology, Ltd. (“Shijirun”), a limited liability company formed under the laws of the Peoples Republic of China (PRC) on February 7, 2021. Well Best, a wholly owned subsidiary of the Company, is the sole shareholder of Shijirun. As a result, Shijirun is an indirect, wholly-owned subsidiary of the Company. Shijirun will head up the Company’s advance into the new energy industry focusing on developing and producing high-end intelligent new energy equipment from Yixing City, Jiangsu Province, China.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

Basis of consolidation

Basis of consolidation

Noncontrolling Interests

Noncontrolling Interests

Use of Estimates

Use of Estimates

Cash and cash equivalents

Cash and cash equivalents

Accounts Receivable

Accounts Receivable

Inventories

Inventories

Advances to suppliers

Advances to suppliers

Property, plant and equipment

Property, plant and equipment

Buildings		10 – 20 years
Machinery and equipment		5 – 10 years
Office equipment		3 – 5 years
Automobiles		5 years

Intangible assets

Intangible assets

Land use right		50 years
Computer software		2-5 years

Impairment of long-lived assets

Impairment of long-lived assets

Revenue recognition

Revenue recognition

The Company estimates return based on historical results, taking into consideration the type of customers, the type of transactions and the specifics of each arrangement.

•

identify the contract with a customer;

•

identify the performance obligations in the contract;

•

determine the transaction price;

•

allocate the transaction price to performance obligations in the contract; and

•

recognize revenue as the performance obligation is satisfied.

The following tables disaggregate our revenue by major source for the three and six months ended December 31, 2020 and 2019, respectively:

	For the Six Months Ended December 31,
	2020		2019
Sales of LCM and LCD screens - Non-related parties	$	5,939,602	$	12,030,911
Sales of LCM and LCD screens - Related parties		-		644,392
Sales of portable power banks		-		1,538,094
Service contracts		1,746		619,901
Total	$	5,941,348	$	14,833,298

	For the Three Months Ended December 31,
	2020		2019
Sales of LCM and LCD screens - Non-related parties	$	2,982,577	$	5,864,945
Sales of LCM and LCD screens - Related parties		-		330,435
Sales of portable power banks		-		910,391
Service contracts		306		227,197
Total	$	2,982,883	$	7,332,968

All the operating entities of the Company are domiciled in the PRC. All the Company’s revenues are derived in the PRC during the three and six months ended December 31, 2020 and 2019.

Cost of revenues

Cost of revenues

Related parties and transactions

Related parties and transactions

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards.

Income taxes

Income taxes

As of December 31, 2020 and June 30, 2020, the Company did not have any significant unrecognized uncertain tax positions.

Comprehensive income (loss)

Comprehensive income (loss)

Leases

Leases

The new standard has no material effect on our consolidated financial statements as the Company does not have a lease with a term longer than 12 months as of December 31, 2020 (See Note 6).

Earnings (losses) per share

Earnings (losses) per share

Foreign currencies translation

Foreign currencies translation

The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows:

	December 31, 2020		June 30, 2020

Balance sheet items, except for equity accounts		6.5402		7.0795

	Six Months Ended December 31,
	2020		2019

Items in statements of comprehensive income (loss) and cash flows		6.8099		6.9255

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

The Company has the derivative liabilities measured at fair value on a recurring basis which are valued at level 3 measurement (See Note 14).

Convertible Instruments

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”.

Common Stock Purchase Warrants

Common Stock Purchase Warrants

Recent accounting pronouncements

Recent accounting pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.

Risk factor

Risk factor

Notwithstanding the difficulty at the present, we are capable to take the blows on the product demands and are optimistic about an eventual recovery in demand to pre-pandemic levels.

We shall take the actions to respond to business disruption and supply chain challenges from the global spread of COVID-19 and looks ahead to the longer-term solution of digital supply networks.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of estimated useful life of the assets

The estimated useful life of the assets is as follows:

Buildings		10 – 20 years
Machinery and equipment		5 – 10 years
Office equipment		3 – 5 years
Automobiles		5 years

Schedule of estimated useful lives of the intangible assets

The estimated useful lives of the intangible assets are as follows:

Land use right		50 years
Computer software		2-5 years

Schedule of disaggregates our revenue by major source

The following tables disaggregate our revenue by major source for the three and six months ended December 31, 2020 and 2019, respectively:

	For the Six Months Ended December 31,
	2020		2019
Sales of LCM and LCD screens - Non-related parties	$	5,939,602	$	12,030,911
Sales of LCM and LCD screens - Related parties		-		644,392
Sales of portable power banks		-		1,538,094
Service contracts		1,746		619,901
Total	$	5,941,348	$	14,833,298

	For the Three Months Ended December 31,
	2020		2019
Sales of LCM and LCD screens - Non-related parties	$	2,982,577	$	5,864,945
Sales of LCM and LCD screens - Related parties		-		330,435
Sales of portable power banks		-		910,391
Service contracts		306		227,197
Total	$	2,982,883	$	7,332,968

Schedule of exchange rates

The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows:

	December 31, 2020		June 30, 2020

Balance sheet items, except for equity accounts		6.5402		7.0795

	Six Months Ended December 31,
	2020		2019

Items in statements of comprehensive income (loss) and cash flows		6.8099		6.9255

XML 40 R27.htm IDEA: XBRL DOCUMENT

VARIABLE INTEREST ENTITY (Tables)

6 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Schedule of consolidated financial statements

The following financial statement amounts and balances of its VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances:

	Balance as of December 31, 2020		Balance as of June 30, 2020
Cash and cash equivalents	$	855,616	$	1,266,426
Notes receivable		35,320		125,798
Accounts receivable - non-related parties		3,189,072		3,069,629
Inventory		3,017,700		2,639,839
Advances to suppliers - non-related parties		625,484		530,670
Prepaid expenses and other current assets		81,424		58,103
Total Current Assets		7,804,616		7,690,465

Property, plant and equipment, net		6,996,421		6,568,874
Intangible assets, net		1,508,762		1,424,404
Deferred tax assets		47,778		20,743
Total Assets	$	16,357,577	$	15,704,486

Short-term bank loan	$	1,681,906	$	2,034,735
Accounts payable		2,455,750		2,637,792
Advance from customers		30,967		27,501
Due to related parties		1,981,879		1,407,145
Accrued expenses and other current liabilities		4,923		61,856
Total Current Liabilities		6,155,425		6,169,029
Total Liabilities	$	6,155,425	$	6,169,029

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INVENTORIES (Tables)

6 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following:

	December 31, 2020		June 30, 2020
Raw materials	$	633,073	$	666,981
Work-in-process		960,245		500,331
Finished goods		1,972,130		2,096,538
Total Inventories	$	3,565,448	$	3,263,850

XML 42 R29.htm IDEA: XBRL DOCUMENT

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

The components of property, plant and equipment were as follows:

	December 31, 2020			June 30, 2020

Buildings	$	5,011,200		$	4,601,685
Machinery and equipment		3,222,821			2,822,686
Office equipment		73,665			67,091
Automobiles		106,999			98,848
Subtotal		8,414,685			7,590,310
Less: Accumulated depreciation		(1,413,533	)		(1,016,373	)
Property, plant and equipment, net	$	7,001,152		$	6,573,937

XML 43 R30.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS, NET (Tables)

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

Intangible assets consist of the following:

	December 31, 2020			June 30, 2020

Land use right	$	1,561,400		$	1,442,456
Computer software		29,539			25,039
Subtotal		1,590,939			1,467,495
Less: Accumulated amortization		(82,177	)		(43,091	)
Intangible assets, net	$	1,508,762		$	1,424,404

XML 44 R31.htm IDEA: XBRL DOCUMENT

SHORT-TERM BANK LOAN (Tables)

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schdeule of short-term bank loans

The Company’s short-term bank loans consist of the following:

		December 31, 2020		June 30, 2020
Loan payable to Industrial Bank, due November 2020	(1)	$	-	$	1,836,288
Loan payable to Industrial Bank, due May 2021	(2)		167,080		154,353
Loan payable to Industrial Bank, due June 2021	(2)		47,730		44,094
Loan payable to Industrial Bank, due August 2021	(3)		549,692		-
Loan payable to Industrial Bank, due March 2021	(3)		458,702		-
Loan payable to Industrial Bank, due June 2021	(4)		458,702		-
Total		$	1,681,906	$	2,034,735

(1)

(2)

(3)

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RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

6 Months Ended

Dec. 31, 2020

Schedule of due to related parties

The amounts are non-interest bearing, unsecured and due on demand.

		December 31, 2020			June 30, 2020

Ben Wong	(1)	$	143,792		$	143,792
Yubao Liu	(2)		333,628			102,938
Xin Sui	(3)		2,016			2,016
Baozhen Deng	(4)		(488	)		9,437
Jialin Liang	(5)(10)		1,434,495			901,460
Xuemei Jiang	(6)(9)		547,384			505,685
Shikui Zhang	(7)		45,854			28,528
Changyong Yang	(8)		29,246			23,063
		$	2,535,927		$	1,716,919