Aoxing Pharmaceutical (AOXG) 10-K 15 Oct 13 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Jun. 30, 2013	Oct. 15, 2013	Dec. 31, 2012
Document and Entity Information
Entity Registrant Name	AOXING PHARMACEUTICAL COMPANY, INC.
Document Type	10-K
Document Period End Date	30-Jun-13
Amendment Flag	FALSE
Entity Central Index Key	1060426
Current Fiscal Year End Date	-24
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding		49,814,822
Entity Public Float			$5,349,154

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2013	Jun. 30, 2012
CURRENT ASSETS:
Cash and cash equivalents	$4,007,823	$3,682,743
Accounts receivable, net of allowance for doubtful accounts of $663,983 and $575,223, respectively	2,842,703	2,804,163
Inventories, net	2,621,878	1,805,420
Prepaid expenses and other current assets	2,419,790	1,229,490
TOTAL CURRENT ASSETS	11,892,194	9,521,816
LONG-TERM ASSETS:
Property and equipment, net of accumulated depreciation	26,941,778	26,960,191
Goodwill		6,908,556
Other intangible assets, net	606,643	1,298,925
Investment in joint venture	292,265	400,233
TOTAL LONG-TERM ASSETS	27,840,686	35,567,905
TOTAL ASSETS	39,732,880	45,089,721
CURRENT LIABILITIES:
Short-term borrowings	3,312,757	3,243,825
Accounts payable	3,412,344	2,760,425
Loan payable - bank	8,467,729	8,702,945
Current portion of loan payable - related parties	2,101,998	213,733
Current portion of loan payable - other		114,562
Accrued expenses and other current liabilities	4,408,676	3,599,168
TOTAL CURRENT LIABILITIES	21,703,504	18,634,658
LONG-TERM LIABILITIES:
Loan payable - related parties	1,561,013	3,499,768
Loan payable - others	1,403,591	1,690,270
Long-term bank loans	10,116,027
Deferred income	365,211
TOTAL LONG-TERM LIABILITIES	13,445,842	5,190,038
Stockholder's Equity
Common stock, par value $0.001, 100,000,000 shares authorized, 49,814,822 and 49,615,013 shares issued and outstanding on June 30, 2013 and June 30, 2012	49,815	49,615
Additional paid in capital	58,296,906	58,002,239
Accumulated deficit	-55,633,998	-38,829,768
Accumulated other comprehensive income	2,956,846	2,658,299
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY	5,669,569	21,880,385
NONCONTROLLING INTEREST IN SUBSIDIARIES	-1,086,035	-615,360
TOTAL EQUITY	4,583,534	21,265,025
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$39,732,880	$45,089,721

CONSOLIDATED_BALANCE_SHEETS_PA

CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)	Jun. 30, 2013	Jun. 30, 2012
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$663,983	$575,223
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	49,814,822	49,615,013
Common stock shares outstanding	49,814,822	49,615,013

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Revenue
SALES	$10,829,839	$8,134,077
COST OF SALES	4,562,096	3,234,254
GROSS PROFIT	6,267,743	4,899,823
OPERATING EXPENSES:
Research and development expense	1,480,217	577,951
General and administrative expenses	3,303,824	3,055,424
Selling expenses	7,447,141	1,823,791
Depreciation and amortization	585,695	592,567
Impairment loss on intangible assets	616,947
Impairment loss on goodwill	7,055,364	13,398,614
TOTAL OPERATING EXPENSES	20,489,188	19,448,347
LOSS FROM OPERATIONS	-14,221,445	-14,548,524
OTHER INCOME (EXPENSE):
Interest expense, net of interest income	-2,986,568	-1,862,861
Change in fair value of warrant and derivative liabilities		1,161
Equity in loss of joint venture, net	-114,744	-132,311
Subsidy income	32,139	664,781
TOTAL OTHER EXPENSE	-3,069,173	-1,329,230
LOSS BEFORE INCOME TAXES	-17,290,618	-15,877,754
Income taxes
NET LOSS	-17,290,618	-15,877,754
Net loss attributable to non-controlling interest in subsidiaries	-486,388	-57,434
NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY	-16,804,230	-15,820,320
OTHER COMPREHENSIVE INCOME :
Foreign currency translation adjustment	314,260	813,440
COMPREHENSIVE LOSS	-16,489,970	-15,006,880
Other comprehensive income attributable to non-controlling interest	15,713	40,672
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY	($16,505,683)	($15,047,552)
BASIC AND DILUTED LOSS PER COMMON SHARE	($0.34)	($0.32)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	49,749,779	49,345,258

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Common Stock	Preferred Stock	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total Shareholders' Equity of the Company	Non Controlling Interest	Total
Balance at Jun. 30, 2011	$49,159		$57,382,109	($23,009,448)	$1,885,531	$36,307,351	($598,598)	$35,708,753
Balance - Shares at Jun. 30, 2011	49,158,955
Common stock issued for services	456		584,692			585,148		585,148
Common stock issued for services - shares	456,058
Common stock options granted			35,438			35,438		35,438
Translation adjustments					772,768	772,768	40,672	813,440
Net loss				-15,820,320		-15,820,320	-57,434	-15,877,754
Balance at Jun. 30, 2012	49,615		58,002,239	-38,829,768	2,658,299	21,880,385	-615,360	21,265,025
Balance - Shares at Jun. 30, 2012	49,615,013
Common stock issued for services	200		294,667			294,867		294,867
Common stock issued for services - shares	199,809
Common stock options granted
Translation adjustments					298,547	298,547	15,713	314,260
Net loss				-16,804,230		-16,804,230	-486,388	-17,290,618
Balance at Jun. 30, 2013	$49,815		$58,296,906	($55,633,998)	$2,956,846	$5,669,569	($1,086,035)	$4,583,534
Balance - Shares at Jun. 30, 2013	49,814,822

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
OPERATING ACTIVITIES:
Net loss	($16,804,230)	($15,820,320)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,114,156	1,079,545
Impairment charge on goodwill	7,055,364	13,398,614
Impairment charge on intangible assets	616,947
Inventory markdown	3,979	-19,010
Provision for doubtful accounts	75,401	18,981
Common stock issued for services	294,867	620,586
Change in fair value of warrants and derivative liability		-1,161
Equity in loss of joint venture, net	114,744	132,311
Net loss attributable to non-controlling interests	-486,388	-57,434
Changes in operating assets and liabilities:
Change in accounts receivable	-54,665	-764,164
Change in inventories	-770,526	-281,383
Change in prepaid expenses and other current assets	-1,146,649	-73,577
Change in accounts payable	584,457	39,695
Change in accrued expenses and other current liabilities	725,578	401,127
Change in deferred income	359,792
NET CASH USED IN OPERATING ACTIVITIES	-8,317,173	-1,326,190
INVESTING ACTIVITIES:
Acquisition of property and equipment	-439,354	-752,386
Proceeds from unrelated parties
NET CASH USED IN INVESTING ACTIVITIES	-439,354	-752,386
FINANCING ACTIVITIES:
Proceeds from bank loans	10,348,012
Payment of bank loans	-796,001
Short-term borrowings		2,986,013
Other borrowings, net of repayment	-433,072	-92,252
Loans from related party	-127,360	-72,403
NET CASH PROVIDED BY FINANCING ACTIVITIES	8,991,579	2,821,358
EFFECT OF EXCHANGE RATE ON CASH	90,028	169,217
INCREASE IN CASH	325,080	911,999
CASH - BEGINNING OF PERIOD	3,682,743	2,770,744
CASH - END OF PERIOD	4,007,823	3,682,743
Supplemental disclosures of cash flow information:
Cash paid for interest	2,814,747	2,093,422
Cash paid for income taxes

1_Business_Description

1 Business Description	12 Months Ended
	Jun. 30, 2013
Notes
1 Business Description	1                BUSINESS DESCRIPTION
	Aoxing Pharmaceutical Co., Inc. (“the Company” or “Aoxing Pharma”) is a specialty pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotic, pain-management, and addiction treatment pharmaceutical products.
	As of June 30, 2013, the Company had one operating subsidiary: Hebei Aoxing Pharmaceutical Co., Inc. (“Hebei”), which is organized under the laws of the People’s Republic of China (“PRC”).  As of June 30, 2013, the Company owned 95% of the issued and outstanding common stock of Hebei.
	Since 2002, Hebei has been engaged in developing narcotic, pain management, and addiction treatment pharmaceutical products, building its facilities and obtaining the requisite licenses from the Chinese Government.  Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, Hebei now has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for manufacturing narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals throughout China of its narcotic drugs and pain medicines.
	In April, 2008, Hebei completed the acquisition of 100% of the registered capital of Lerentang (“LRT”).  LRT was engaged in the manufacture and distribution of Chinese traditional medicines focusing on pain management related therapeutics within China.  By 2011 the manufacturing operations of LRT had been completely integrated into Hebei.  Currently over 80% of the Company’s revenues derive from one herbal extraction, obtained from the acquisition of LRT, which is used to alleviate oral/dental and bone pain.
	Liquidity and Capital Resources
	Currently and historically, the Company has managed to operate the business with negative net working capital. The Company’s negative working capital is primarily due to substantial short-term loans from banks. The Company is able to operate with a negative net working capital because of local governmental subsidies and loans from unrelated and related parties. During the year ended June 30, 2013, the Company was able to obtain long-term bank loans from Beijing International Trust Co., Ltd and use these funds to repay short-term notes. The long-term loans carry higher interest rates, but have terms of two years, providing the Company with more financial flexibility. The Company believes operating cash flows turning positive in the near-term, continued support from related parties, and the ability to continue to roll over short-term debt, taken together, provide adequate resources to fund ongoing operations in the foreseeable future. The Company believes that the increased market demand for its main product in the near term and sales from several new products in future years will produce substantial positive cash flow. If the Company’s short-term cash flows decrease significantly and the Company is unable to pay its short-term liabilities, the Company’s business, financial condition and results of operations could be materially affected.
	We have incurred recurring operating losses and had an accumulated deficit of $55.6 million as of June 30, 2013. In addition, we had negative working capital of $9.8 million as of as of June 30, 2013. Our history of operating losses and lack of binding financing commitments raise substantial doubt as to our ability to continue as a going concern.  Despite recent negative operating cash flow positions, our management anticipates that we will generate sufficient cash flows to fund our operations for the next twelve months by increasing revenues and profit margins of our core product sales and continued support from our lenders to rollover debt when it becomes due.  If future sales do not meet our forecasts, we may be required to fund operations by raising additional capital or seek external financing. As such, our ability to achieve our business plan is primarily dependent upon our ability to grow our planned level of operations and/or obtain sufficient additional capital at acceptable costs. With respect to these objectives, we cannot provide any assurance that we will succeed. If events or circumstances occur such that we are unable to or do not meet our operating plan as expected and/or do not secure additional financing, we may be required to significantly curtail or cease operations.
	Investment in Joint Venture (“JV”)
	On April 26, 2010, Aoxing Pharma and Johnson Matthey Plc (‘JM”) entered into an agreement to establish a joint venture focused on research, development, manufacturing and marketing of active pharmaceutical ingredients for narcotics and neurological drugs for the China market. The joint venture represents a significant new opportunity for both companies to expand their business in the rapidly growing pharmaceutical market in China.  Under the terms of the agreement, Macfarlan Smith Ltd, a wholly owned subsidiary of Johnson Matthey Plc, headquartered in the United Kingdom, will contribute technology expertise and capital to the joint venture. Hebei will contribute capital, fixed assets and related active pharmaceutical ingredients manufacturing licenses. The joint venture company is called Hebei Aoxing API Pharmaceutical Company, Ltd. (“API”).  Hebei Aoxing has a 51% stake in API, while Macfarlan Smith (Hong Kong) Ltd (a wholly owned subsidiary of JM) holds 49%. Each company has equal representation on the board of directors that will oversee a management team responsible for corporate strategies and operations.  The new joint venture is located on the Hebei  campus in Xinle City, 200 kilometers southwest of Beijing.  On March 10, 2010, the joint venture obtained a business license from the City Industry & Commercial Administrative Bureau. The Company accounts for its investment in the Joint Venture under the equity method of accounting.

2_Significant_Accounting_Polic

2 Significant Accounting Policies	12 Months Ended
	Jun. 30, 2013
Notes
2 Significant Accounting Policies	2                SIGNIFICANT ACCOUNTING POLICIES
	Basis of presentation
	The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated.  These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.  The Company’s functional currency is the Chinese Renminbi (RMB); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (USD).
	Use of estimates in the preparation of financial statements
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 the reported amounts of revenue and expenses during the reporting period. Significant estimates reflected in the consolidated financial statements include, but are not limited to, the recoverability of the carrying amount and estimated useful lives of long-lived assets, allowance for accounts receivable, realizable values for inventories, valuation allowance of deferred tax assets, impairment assessment of goodwill, and share-based compensation expenses. Management makes these estimates using the best information available at the time the estimates are made; however, actual results when ultimately realized could differ significantly from those estimates.
	Cash and cash equivalents
	The Company maintains cash and cash equivalents with financial institutions in the PRC which are not insured or otherwise protected. Should any of these institutions holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution.  Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.
	Accounts Receivable
	Accounts receivables represent customer accounts receivables. The allowance for doubtful accounts is based on a combination of current sales, historical charge-offs and specific accounts identified as high risk. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Such allowances, if any, would be recorded in the period the impairment is identified.   The balances of allowance for doubtful accounts are $663,983 and $575,223 at June 30, 2013 and 2012 respectively. The Company recorded bad debt expense of $75,401 and $18,981 for the years ended June 30, 2013 and 2012, respectively.
	Inventories, net
	Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value.  Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. The Company wrote-off $21,598 and $73,954 of obsolete inventory during the years ended June 30, 2013 and June 30, 2012, respectively. For the years ended June 30, 2013 and 2012, the Company’s allowance for obsolete inventory is $386,120 and $36,080, respectively.
	Advances to Suppliers
	The Company makes advances to certain vendors for purchase of its material and equipment. The advances to suppliers are interest free.
	Property and equipment
	Property and equipment are recorded at cost.  Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight line method for financial reporting purposes.
	Construction in progress is stated at cost, which includes the cost of construction, acquisition of plant and equipment and other direct costs attributable to the construction. Construction in progress is not depreciated until such time as the assets are completed and put into operational use. No capitalized interest is incurred during the period of construction.
	All lands in the PRC are owned by the PRC government. The government in the PRC, according to the relevant PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of the land use right agreements on a straight-line basis, which is 50 years and they will expire in 2053.
	Maintenance, repairs and minor renewals are charged to expense when incurred. Replacements and major renewals are capitalized.
	Estimated useful lives are as follows:
	Right to use land		50 years
	Building and building improvements		35 years
	Machinery and equipment		10 years
	Furniture and office equipment		5 years
	Automobiles		8 years
	Goodwill and intangible assets
	Goodwill was the result of the acquisition of LRT and 35% of Hebei Aoxing in 2008. Goodwill represents the cost of the acquired business in excess of the fair value of identifiable tangible and intangible net assets purchased.  For the year ended June 30, 2013, the Company engaged an independent valuation expert to assist in determining the fair value of the net assets of its Hebei reporting unit, which includes identifiable intangible assets, property and equipment and goodwill.
	The Company evaluates its goodwill according to the provisions of Accounting Standards Codification (“ASC”) Topic 350, “Intangibles — Goodwill and other,” to determine if the current value of goodwill has been impaired. The acquisition of LRT has been completely integrated into the Hebei Aoxing reporting unit.  Goodwill of the Hebei Aoxing reporting unit is tested for impairment each year during the 4th quarter and is also tested at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
	Definite lived intangible assets include drug permits recorded at cost less accumulated amortization and any recognized impairment loss. The drug permits were acquired in 2008 when the Company purchased LRT and are amortized over their estimated useful life of 15 years on a straight-line basis.  An intangible asset that is subject to amortization shall be reviewed for impairment in accordance with the Impairment or Disposal of Long-Lived Assets ASC 360-10.  In accordance with Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, the Company performs an intangible asset impairment test for its definite-lived intangibles whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.  During the year ended June 30, 2013, it was determined some drug permits and licenses will not provide future benefits to the Company. Accordingly, an impairment provision of $616,947 was provided by the Company.
	The Company engaged a third party valuation firm to review the Company’s Hebei reporting unit for impairment as of June 30, 2013.  The test involved the assessment of the fair market value of the Company’s tangible and intangible assets, using a form of the income approach known as the excess earnings method, and concluded that a discount rate of 14% is considered appropriate for valuing the Company. The market and cost approaches were not applied due to the lack of information deemed to be reliably indicative of value using either approach. The result of the assessment of the Company’s tangible and intangible assets indicated that its carrying value exceeded the fair value.
	The Company provided a forecasted discounted cash flows analysis for the reporting unit based on discrete five-year financial forecasts developed by management for planning purposes. Cash flows beyond the fifth year discrete forecasts were estimated using a market earning growth rate of 9.9% up to the thirty year and a 3% terminal value growth calculation afterward, which incorporated historical and forecasted financial trends for the reporting unit and considered long-term earnings growth rates expected for the pharmaceutical industry in China.
	Based upon the valuation report prepared by an independent valuation expert, it is concluded that the carrying value exceeded the fair value of the goodwill as of June 30, 2013. The Company recorded an
	impairment of $7,055,364 for the year ended June 30, 2013. The remaining goodwill balance as of June 30, 2013 is nil.
	Revenue Recognition
	In accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advances from customers. The agreements with customers do not contain any rights of return other than for goods that fail to meet the specifications provided by the customer or other quality problems. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns is provided.
	The Company derives revenues from the sale of pharmaceutical products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which is levied on the majority of the products at the rate 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.
	The Company recognizes revenue from the sale of products upon customers’ receipt of the shipment at the customers’ facility or upon when the transfer of title and risk of loss has transferred to the customer. The Company has distributor arrangements with certain parties for sale of its pharmaceutical products. The distributor agreements do not provide chargeback, price protection, or stock rotation rights.
	Research and Development
	Research and development is charged to expense as incurred.
	Share-Based Compensation
	Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period.  The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.
	Impairment of long lived assets
	In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such as property, plant and equipment, land use rights and intangible assets 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.  For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.  Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable.  Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.
	Income taxes
	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.
	ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.
	Non-controlling interest
	Non-controlling interests in our subsidiaries are recorded in accordance with the provisions of ASC Topic 810, “Consolidation”, and are reported as a component of our equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interests are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, If any, will be reported at fair value with any gain or loss recognized in earnings.
	Under ASC 810-10-45-21, losses attributable to the parent and the non-controlling interest in a subsidiary may exceed their interests in the subsidiary’s equity. The excess, and any further losses attributable to the parent and the non-controlling interest, shall be attributed to those interests. That is, the non-controlling interest shall continue to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance
	Currency translation
	Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (”RMB”).  Revenue and expense accounts are translated at the average rates during the period, and balance sheet items are translated at year-end rates.  Translation adjustments arising from the use of differing exchange rates from period to period are included as a separate component of shareholders’ equity.  Gains and losses from foreign currency transactions are recognized in current operations.
		2013		2012
	Year ended RMB: US$ exchange rate	6.1882		6.3197
	Average yearly RMB: US$ exchange rate	6.2814		6.363
	The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation.
	Fair value of financial instruments
	The Company has adopted ASC Topic 820, ”Fair Value Measurement and Disclosure”, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:
	Level 1 - Quoted prices in active markets for identical assets or liabilities.
	Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.
	The carrying amount of cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short term nature of these items.
	As of June 30, 2013, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value.  The Company’s short-term borrowings, loans payable, related party notes payable and unrelated party notes payable that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of June 30, 2013.
	As of June 30, 2013, the Company does not have any level 3 financial instruments.  The Company uses the discounted cash flow approach when determining fair values of its non-recurring fair value measurements when required. We determine the fair value of our goodwill for purposes of comparing to the carrying value on at least an annual basis. Our goodwill would be adjusted to fair value if it is deemed to be impaired. Certain unobservable units for these assets are offered quotes, lack of marketability, long-term revenue growth rates and discounts rates.  For Level 3 measurements, significant increases or decreases in long-term growth rates or discount rates in isolation or in combination could result in a significantly lower or higher fair value measurement.  In general, a change in the long-term growth rate of our Hebei Aoxing business unit could negatively affect the fair value of our goodwill.
	Derivative financial instruments
The Company’s derivative financial instruments consist of embedded derivatives related to the warrants.  The accounting treatment of derivative financial instruments requires that the Company record the warrants at their fair values as of the inception date and at fair value as of each subsequent balance sheet date.  Any change in fair value is recorded as non-operating, non-cash income or expense at each balance sheet date.  If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company recorded non-operating, non-cash income.
During the years ended June 30, 2013 and 2012, the Company recognized other income of nil and $1,161, respectively, relating to recording the warrant and derivative liabilities at fair value.  At June 30, 2013 and 2012 there were no warrant and derivative liabilities.
Comprehensive income
ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income or loss, as presented in the accompanying statement of changes in shareholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit
Earnings per share
Basic earnings per common share are computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed on the basis of the weighted average number of common shares and dilutive securities (such as warrants and convertible preferred stock) outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.
Statement of cash flows
In accordance with the provisions of Accounting Standards Codification on “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.
Segment reporting
ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the year ended June 30, 2013, ASC 280 has an immaterial effect on the Company’s financial statements, as the Company consists of one reportable business segment.  All revenue is from customers in the PRC.  The majority of the Company’s assets are located in the PRC.
Recent accounting pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarified that the scope of ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, would apply to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or are subject to a master netting arrangement or similar agreement. This ASU is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Retrospective presentation for all comparative periods presented is required. The adoption of ASU 2013-01 is not expected to have material impact on the Company’s consolidated financial statements.
In February 2013, the Financial Accounting Standards Board issued ASU 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, it requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. Early adoption is permitted. The Company does not expect that the adoption of ASU 2013-02 will have a material impact on its consolidated financial statements.

3_Going_Concern

3 Going Concern	12 Months Ended
	Jun. 30, 2013
Notes
3 Going Concern	3                 GOING CONCERN
	The Company incurred a net loss of $17,290,618 and had $8,317,173 negative cash flow from operations during the year ended June 30, 2013. As of June 30, 2013, the Company’s current liabilities exceeded its current assets by $9,811,310. The Company had cash and cash equivalents of $4,007,823 as of June 30, 2013. The Company’s ability to continue as a going concern is dependent on many events outside of its direct control, including, among other things, the amount of working capital that the Company has available. The Company’s inability to generate cash flows to meet its obligations due to the uncertainty of achieving operating profitability on an annual basis and raising required proceeds on reasonable terms, among other factors, raises substantial doubt as to the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	The management of the Company has taken a number of actions and will continue to address this situation in order to restore the Company to a sound financial position with an appropriate business strategy going forward. During the year ended June 30, 2013, the Company was able to obtain long-term bank loans from Beijing International Trust Co., Ltd and use these funds to repay short-term notes. The long-term loans carry higher interest rates, but have terms of two years, providing the Company with more financial flexibility.
	Considering that revenue for the year ended June 30, 2013 was higher than revenue during the prior year, even though new products did not make significant contributions, management believes operating cash flows will turn positive in the near-term as a result of its new marketing campaign and increased sales force. Management believes that the increased market demand for its main product in the near term and sales from several new products that the Company is currently advertising will be sufficient to offset the increased selling expenses and generate substantial positive operating cash flows. Management also believes that the Company will have continued support from related parties, and will have the ability to continue to roll over short-term debt. Lastly, the Company also started the process of securing additional funds and adopted various cost-saving strategies.

4_Inventories_Net

4 Inventories, Net	12 Months Ended
	Jun. 30, 2013
Notes
4 Inventories, Net	4                 INVENTORIES, NET
	Inventories consist of the following:
		June 30,
		2013		2012
	Work in process	$	1,041,267	$	709,679
	Raw materials		509,209		495,980
	Finished goods		1,071,402		599,761
		$	2,621,878	$	1,805,420
	The allowance for obsolete inventory as of June 30, 2013 and 2012 was $386,120 and $36,080, respectively.

5_Property_and_Equipment_Net

5 Property and Equipment, Net	12 Months Ended
	Jun. 30, 2013
Notes
5 Property and Equipment, Net	5                PROPERTY AND EQUIPMENT, NET
	Property, plant and equipment, net, consisted of the following:
		June 30,
		2013		2012
	Right to use land	$	8,082,447	$	7,914,268
	Building and building improvements		13,514,738		13,233,524
	Machinery and equipment		3,763,566		3,508,394
	Furniture and office equipment		596,306		545,712
	Automobiles		624,012		611,028
	Construction in progress		5,792,345		5,450,172
			32,373,414		31,263,098
	Accumulated depreciation and amortization		5,431,636		4,302,907
		$	26,941,778	$	26,960,191
	Depreciation expense for the years ended June 30, 2013 and 2012 were $1,015,760 and $910,926, respectively.

6_Equitymethod_Investment_in_J

6 Equity-method Investment in Joint Venture	12 Months Ended
	Jun. 30, 2013
Notes
6 Equity-method Investment in Joint Venture	6                 EQUITY-METHOD INVESTMENT IN JOINT VENTURE
	The Company accounts for its investment in API (see Note 1) under the equity method of accounting.
	Summarized unaudited financial information for our investment in API, assuming a 100% ownership interest, is as follows:
		June 30,
		2013		2012
	Current assets	$	8,964	$	8,808
	Noncurrent assets		844,268		870,124
	Current liabilities		338,761		151,541
	Noncurrent liabilities		-		-
	Equity		514,471		727,391
	Revenues				-
	General and administrative expenses		-224,989		-259,432
	Net loss	$	-224,989	$	-259,432
	The Company recorded a loss on investment of $114,744 and $132,311 for the years ended June 30, 2013 and 2012 respectively for its 51% share of API.

7_Shortterm_Borrowing

7 Short-term Borrowing	12 Months Ended
	Jun. 30, 2013
Notes
7 Short-term Borrowing	7                SHORT-TERM BORROWING
	Short-term borrowing consists of the following:
		June 30,
		2013			2012
	Shijiazhuang Finance Bureau (a)		$	80,799		$	79,118
	Shijiazhuang Construction Investment Group Co., Ltd (b)			3,231,958			3,164,707
	Total		$	3,312,757		$	3,243,825
	(a) A non-interest bearing note payable to Shijiazhuang Finance Bureau, an agency of a local government, due on demand.
	(b) A one-year term loan from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The note bears an annual interest rate of 15% and was due on August 3, 2013, at which time it was  rolled-over for 3 months until November 3, 2013. The note was secured by certain registered trademarks and renewal certificates relating to Aoxing’s Zhongtongan capsule.

8_Loan_Payable_Bank

8 Loan Payable - Bank	12 Months Ended
	Jun. 30, 2013
Notes
8 Loan Payable - Bank	8                 LOAN PAYABLE - BANK
	Loan payable – bank consist of the following loans collateralized by assets of the company:
		June 30,
		2013			2012
	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of  7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014	$	4,847,936		$	4,747,061
	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8%interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014		3,231,958			-
	Bank Note in the amount of 2.4 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on  September 24, 2012 for one year maturing on December 20, 2013		387,835			-
	Bank Note in the amount of 25 million RMB with China Citic Bank bearing an annual floating rate of  8.528%, set to be 30% higher than the interest rate of the China People Bank rate, initially made on May 5, 2010 and renewed again on April 13, 2012 for one year maturing on April 13, 2013		-	-		3,955,884
		$	8,467,729		$	8,702,945

9_Loan_Payable_Other

9 Loan Payable - Other	12 Months Ended
	Jun. 30, 2013
Notes
9 Loan Payable - Other	9                LOAN PAYABLE – OTHER
	Loan payable – other consist of loans from unrelated third-parties, bearing interest at an average rate of 17.9% as of June 30, 2013 and 2012.  Loans will mature as following:
		June 30,
		2013		2012
	Within one year	$	-	$	114,562
	1 – 2 years		1,403,591		-
	2 – 3 years		-		1,690,270
	Total		1,403,591		1,804,832
	Less current portion		-		-114,562
		$	1,403,591	$	1,690,270

10_Loan_Payable_Related_Partie

10 Loan Payable - Related Parties	12 Months Ended
	Jun. 30, 2013
Notes
10 Loan Payable - Related Parties	10                LOAN PAYABLE – RELATED PARTIES
	Loan payable – related parties consists of loans from shareholders, officers, and other related parties, bearing interest at an average rate of 15.88% and 15.23% per annum as of June 30, 2013 and 2012, respectively. Loans will mature as follows:
		June 30,
		2013		2012
	Within one year	$	2,101,998	$	213,733
	1 – 2 years		1,561,013		3,286,823
	2 – 3 years		-		212,945
	Total		3,663,011		3,713,501
	Less current portion		-2,101,998		-213,733
		$	1,561,013	$	3,499,768

11_Long_Term_Bank_Loan

11 Long Term Bank Loan	12 Months Ended
	Jun. 30, 2013
Notes
11 Long Term Bank Loan	11           LONG TERM BANK LOAN
	On September 24, 2012, the Company entered into a loan agreement with Beijing International Trust Co., Ltd and obtained a loan of RMB 45 million (approximately $7.3 million) with a term of two years. This loan requires interest only payments every quarter on the 20th of March, June, September and December. This loan bears an 18.0% interest per annum.  The loan matures on September 23, 2014 and the Company must repay 15%, 15% and 50% of the original loan balance 20 days, 10 days and 5 days, respectively, before the maturity date. The loan also requires two initial repayments of RMB1.2 million (approximately $0.4 million) each on July 20, 2013 and December 20, 2013; this portion of the loan is classified as short term bank loan in Note 8.
	On December 20, 2012, the Company obtained an additional loan of RMB20 million (approximately $3.2 million) from Beijing International Trust Co., Ltd with a 16.5% interest per annum that will mature on September 21, 2014. Both loans interest payments are due quarterly on the 21thof March, June, September and December.

12_Deferred_Income

12 Deferred Income	12 Months Ended
	Jun. 30, 2013
Notes
12 Deferred Income	12           DEFERRED INCOME
	The balance of deferred income represents government grants related to CIP of the Company. It will be recognized in subsidy income on a systematic basis (straight-line method) over the useful life of the fixed asset transferred from CIP which is a project to reform and improve the production line of the Zhongtongan. By June 30, 2013, the CIP did not meet the condition of usage. (See Note 5)

13_Accrued_Expenses_and_Other_

13 Accrued Expenses and Other Current Liabilities	12 Months Ended
	Jun. 30, 2013
Notes
13 Accrued Expenses and Other Current Liabilities	13              ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
	Accrued expenses and taxes consist of the following:
		June 30,
		2013		2012
	Accrued salaries and benefits	$	867,961	$	713,918
	Accrued interest		698,320		556,155
	Accrued taxes		255,275		211,339
	Deposit payable		429,610		397,706
	Due to employee		46,516		45,548
	Advance from customers		516,183		322,606
	Other accounts payable		711,486		585,302
	Other accrued expenses and current liabilities		883,325		766,594
		$	4,408,676	$	3,599,168

14_Stock_Options

14 Stock Options	12 Months Ended
	Jun. 30, 2013
Notes
14 Stock Options	14              STOCK OPTIONS
	On February 1, 2011 and April 2, 2011, the Company issued 50,000 and 170,000, a total of 220,000 options to management and employees. These stock compensation grants were valued at $48,057 and $163,362 and the Company recorded $20,024 and $163,362 in compensation expense for the year ended June 30, 2011. The remainder of the value of the grants, $28,033, was recognized as compensation expense during the year ended June 30, 2012.
	On February 1, 2012, the Company issued a total of 50,000 options to an employee. This stock compensation grant was valued at $17,771 and the Company recorded $7,405 in compensation expense for the year ended June 30, 2012.  Subsequently, this employee terminated his employment with the Company on July 1, 2012 resulting in the cancelation of the options.
	The Company has no unrecognized compensation expense as of June 30, 2012 and no further options were issued by the Company during the year ended June 30, 2013.
	The Company calculated the estimated fair value of the options of the grant date using the Black-Scholes Option Pricing Model with the following assumptions:
		For the year ended
		30-Jun-12
	Estimated dividends	None
	Expected volatility	126.13%
	Risk-free interest rate	0.72%
	Expected term (years)	2
	The model requires the input of subjective assumptions including the expected stock price volatility and the expected dividend yield. The Company uses historical experience of employee turnover and future expectation to estimate forfeiture rate. For expected volatilities, the Company has made reference to historical volatilities of the Company’s stock. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury Bills yield in effect at the time of grant.
	A summary of option activity as of June 30, 2013 and 2012, and changes during the years then ended is as following:
							Weighted-avg.			Aggregate
					Weighted-avg.		remaining			intrinsic
		Shares			Exercise Price		Term (yr.)			Value
	On June 30, 2011		220,000		$	2	3.1			$	211,419
	Granted:		50,000		$	0.42	5.0				0
	Exercised:		-			-	-				-
	Forfeited:		-		-		-			-
	On June 30, 2012		270,000		$	1.7	3.2			$	0
	Granted:		-		$	-			-	-
	Exercised:		-		-		-			-
	Forfeited:		(138,000	)	-		-			-
	On June 30, 2013		132,000		$	2		1.1		$	0
	The Company recorded nil and $35,438 of stock option compensation expense for year ended June 30, 2013 and 2012 respectively, with corresponding credits to additional paid-in capital. Compensation cost of all stock option awards are recorded in general and administrative expenses. Options issued during the year ended June 30, 2011 and 2012 were fully vested as of June 30, 2012.

15_Issuance_of_Common_Stock

15 Issuance of Common Stock	12 Months Ended
	Jun. 30, 2013
Notes
15 Issuance of Common Stock	15              ISSUANCE OF COMMON STOCK
	On October 23, 2012, the Company issued 79,809 shares of common stock to an independent director for services rendered. Total value of the compensation is approximately $22,000 based on closing average stock price of $0.28 during the period of service.
	On November 7, 2012, the Company issued 120,000 shares of common stock to management related to a separation agreement.  Total value of the stock grants is $69,300, based on the stock price of $0.58.
	During the year ended June 30, 2012, the Company issued 214,376 shares of common stock to an independent director for services rendered. Total value of the compensation is approximately $88,000 based on closing average stock price of $0.41 during the period of service.
	On June 15, 2012, the Company issued 20,000 shares of common stock to management for services rendered.  Total value of the stock grants is $5,400, based on the stock price of $0.27.
	On November 21, 2011, the Company issued 60,000 shares of common stock to three independent directors for services rendered by them from November 2010 to October 2011.  Total value of the stock grants is $24,000, based on the closing stock price, $0.40, on November 21, 2011.
	On June 12, 2012, the Company issued 60,000 shares of common stock to the same independent directors for services rendered by them from November 2011 to May 2012.  Total value of the stock grants is $15,600, based on the closing stock price, $0.26, on June 12, 2012.
	On November 29, 2011, the Company issued 79,444 shares of common stock to a third party service provider for services rendered from November 2010 to September 2011.  On December 12, 2011, the Company issued 22,238 shares of common stock to the same service provider for service rendered from October 2011 to December 2011.  These shares were valued using the average share price of the Company’s common stock during the three months ended September 30, 2011 or $0.90per share, whichever was higher.  Total values of the stock grants are $71,500 and $20,014, respectively.

16_Taxes

16 Taxes	12 Months Ended
	Jun. 30, 2013
Notes
16 Taxes	16              TAXES
	The Company’s Chinese subsidiaries are governed by the Income Tax Law of the People’s Republic of China concerning private-run enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.
	The reconciliation of income tax at the U.S. statutory rate to the Company’s effective tax rate is as follows:
		Year Ended June 30,
		2013			2012
	Tax at U.S. Statutory rate	$	-6,051,716		$	-5,557,214
	Tax rate difference between China and U.S.		541,696			-46,623
	Change in Valuation Allowance		1,852,280			276,931
	Net operating loss expired		1,786,650			1,868,334
	Stock and option compensation		50,892			108,918
	Impairment loss on goodwill		1,820,198			3,349,654
	Effective tax rate	$	-		$	-
	The provisions of income taxes (credit) are summarized as follows:
		Year Ended June 30,
		2013			2012
	Current	$	-		$	-
	Deferred - U.S.		-176,469			-393,763
	Deferred – China		-1,532,812			116,832
	Valuation allowance - U.S.		176,469			393,763
	Valuation allowance – China		1,532,812			-116,832
	Total	$	-		$	-
	The tax effects of temporary differences that give rise to the Company’s net deferred tax asset as of June 30, 2013 and 2012 are as follows:
		2013		2012
	Net operating loss carryforward - China	$	2,930,676	$	1,863,405
	Net operating loss carryforward - US		1,614,106		1,437,637
	Allowance for doubtful accounts		427,752		532,913
	Others		672,369		101,667
			5,644,903		3,935,622
	Less: valuation allowance- U.S.		-1,614,106		-1,437,637
	valuation allowance- China.		-4,030,797		-2,497,985
	Deferred tax assets	$	-	$	-
	As of June 30, 2013, the Company has a full valuation allowance for its deferred tax asset balance related to China and the US.  The Company restated the prior year financial statements to provide a full valuation allowance for deferred tax assets.  The Company’s loss carry forwards for the past 5 years are a significant amount of the deferred tax assets and due to certain negative indicators that were present as of June 30, 2012, the Company determined it was appropriate under US GAAP to restate the prior year financial statements and provide a 100% valuation allowance for the deferred tax assets.
	For the year ended June 30, 2013 and 2012, the Company did not have any interest and penalties associated with tax positions. As of June 30, 2013 and 2012, the Company did not have any significant unrecognized uncertain tax positions.

17_Concentrations

17 Concentrations	12 Months Ended
	Jun. 30, 2013
Notes
17 Concentrations	17              CONCENTRATIONS
	Sales to two major customers were 21% and 11% of total sales for the year ended June 30, 2013.  Sales to two major customers were 19% and 12% of total sales for the year ended June 30, 2012.
	Sales of one major product represented approximately 91% and 89% of total sales for the year ended June 30, 2013 and 2012, respectively.
	Two major customers accounted for 10% and 1% of outstanding accounts receivable as of June 30, 2013. Two major customers accounted for nil and 3% of outstanding accounts receivable as of June 30, 2012.

18_Subsequent_Events

18 Subsequent Events	12 Months Ended
	Jun. 30, 2013
Notes
18 Subsequent Events	18              SUBSEQUENT EVENTS
	In accordance with ASC 855 “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, we have evaluated all events or transactions that occurred after June 30, 2013 up through the date we issued the consolidated financial statements and has determined that there was no other material event that occurred after the date of the balance sheets included in this report.

2_Significant_Accounting_Polic1

2 Significant Accounting Policies: Basis of Presentation (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Basis of Presentation	Basis of presentation
	The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated.  These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.  The Company’s functional currency is the Chinese Renminbi (RMB); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (USD).

2_Significant_Accounting_Polic2

2 Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Use of Estimates in The Preparation of Financial Statements	Use of estimates in the preparation of financial statements
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 the reported amounts of revenue and expenses during the reporting period. Significant estimates reflected in the consolidated financial statements include, but are not limited to, the recoverability of the carrying amount and estimated useful lives of long-lived assets, allowance for accounts receivable, realizable values for inventories, valuation allowance of deferred tax assets, impairment assessment of goodwill, and share-based compensation expenses. Management makes these estimates using the best information available at the time the estimates are made; however, actual results when ultimately realized could differ significantly from those estimates.

2_Significant_Accounting_Polic3

2 Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Cash and Cash Equivalents	Cash and cash equivalents
	The Company maintains cash and cash equivalents with financial institutions in the PRC which are not insured or otherwise protected. Should any of these institutions holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution.  Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

2_Significant_Accounting_Polic4

2 Significant Accounting Policies: Accounts Receivable (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Accounts Receivable	Accounts Receivable
	Accounts receivables represent customer accounts receivables. The allowance for doubtful accounts is based on a combination of current sales, historical charge-offs and specific accounts identified as high risk. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Such allowances, if any, would be recorded in the period the impairment is identified.   The balances of allowance for doubtful accounts are $663,983 and $575,223 at June 30, 2013 and 2012 respectively. The Company recorded bad debt expense of $75,401 and $18,981 for the years ended June 30, 2013 and 2012, respectively.

2_Significant_Accounting_Polic5

2 Significant Accounting Policies: Inventories, Net (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Inventories, Net	Inventories, net
	Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value.  Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. The Company wrote-off $21,598 and $73,954 of obsolete inventory during the years ended June 30, 2013 and June 30, 2012, respectively. For the years ended June 30, 2013 and 2012, the Company’s allowance for obsolete inventory is $386,120 and $36,080, respectively.

2_Significant_Accounting_Polic6

2 Significant Accounting Policies: Advances To Suppliers (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Advances To Suppliers	Advances to Suppliers
	The Company makes advances to certain vendors for purchase of its material and equipment. The advances to suppliers are interest free.

2_Significant_Accounting_Polic7

2 Significant Accounting Policies: Property and Equipment (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Property and Equipment	Property and equipment
	Property and equipment are recorded at cost.  Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight line method for financial reporting purposes.
	Construction in progress is stated at cost, which includes the cost of construction, acquisition of plant and equipment and other direct costs attributable to the construction. Construction in progress is not depreciated until such time as the assets are completed and put into operational use. No capitalized interest is incurred during the period of construction.
	All lands in the PRC are owned by the PRC government. The government in the PRC, according to the relevant PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of the land use right agreements on a straight-line basis, which is 50 years and they will expire in 2053.
	Maintenance, repairs and minor renewals are charged to expense when incurred. Replacements and major renewals are capitalized.
	Estimated useful lives are as follows:
	Right to use land	50 years
	Building and building improvements	35 years
	Machinery and equipment	10 years
	Furniture and office equipment	5 years
	Automobiles	8 years

2_Significant_Accounting_Polic8

2 Significant Accounting Policies: Goodwill and Intangible Assets (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Goodwill and Intangible Assets	Goodwill and intangible assets
	Goodwill was the result of the acquisition of LRT and 35% of Hebei Aoxing in 2008. Goodwill represents the cost of the acquired business in excess of the fair value of identifiable tangible and intangible net assets purchased.  For the year ended June 30, 2013, the Company engaged an independent valuation expert to assist in determining the fair value of the net assets of its Hebei reporting unit, which includes identifiable intangible assets, property and equipment and goodwill.
	The Company evaluates its goodwill according to the provisions of Accounting Standards Codification (“ASC”) Topic 350, “Intangibles — Goodwill and other,” to determine if the current value of goodwill has been impaired. The acquisition of LRT has been completely integrated into the Hebei Aoxing reporting unit.  Goodwill of the Hebei Aoxing reporting unit is tested for impairment each year during the 4th quarter and is also tested at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
	Definite lived intangible assets include drug permits recorded at cost less accumulated amortization and any recognized impairment loss. The drug permits were acquired in 2008 when the Company purchased LRT and are amortized over their estimated useful life of 15 years on a straight-line basis.  An intangible asset that is subject to amortization shall be reviewed for impairment in accordance with the Impairment or Disposal of Long-Lived Assets ASC 360-10.  In accordance with Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, the Company performs an intangible asset impairment test for its definite-lived intangibles whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.  During the year ended June 30, 2013, it was determined some drug permits and licenses will not provide future benefits to the Company. Accordingly, an impairment provision of $616,947 was provided by the Company.
	The Company engaged a third party valuation firm to review the Company’s Hebei reporting unit for impairment as of June 30, 2013.  The test involved the assessment of the fair market value of the Company’s tangible and intangible assets, using a form of the income approach known as the excess earnings method, and concluded that a discount rate of 14% is considered appropriate for valuing the Company. The market and cost approaches were not applied due to the lack of information deemed to be reliably indicative of value using either approach. The result of the assessment of the Company’s tangible and intangible assets indicated that its carrying value exceeded the fair value.
	The Company provided a forecasted discounted cash flows analysis for the reporting unit based on discrete five-year financial forecasts developed by management for planning purposes. Cash flows beyond the fifth year discrete forecasts were estimated using a market earning growth rate of 9.9% up to the thirty year and a 3% terminal value growth calculation afterward, which incorporated historical and forecasted financial trends for the reporting unit and considered long-term earnings growth rates expected for the pharmaceutical industry in China.
	Based upon the valuation report prepared by an independent valuation expert, it is concluded that the carrying value exceeded the fair value of the goodwill as of June 30, 2013. The Company recorded an
	impairment of $7,055,364 for the year ended June 30, 2013. The remaining goodwill balance as of June 30, 2013 is nil.

2_Significant_Accounting_Polic9

2 Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Revenue Recognition	Revenue Recognition
	In accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advances from customers. The agreements with customers do not contain any rights of return other than for goods that fail to meet the specifications provided by the customer or other quality problems. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns is provided.
	The Company derives revenues from the sale of pharmaceutical products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which is levied on the majority of the products at the rate 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.
	The Company recognizes revenue from the sale of products upon customers’ receipt of the shipment at the customers’ facility or upon when the transfer of title and risk of loss has transferred to the customer. The Company has distributor arrangements with certain parties for sale of its pharmaceutical products. The distributor agreements do not provide chargeback, price protection, or stock rotation rights.

Recovered_Sheet1

2 Significant Accounting Policies: Research and Development (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Research and Development
	Research and Development
	Research and development is charged to expense as incurred.

Recovered_Sheet2

2 Significant Accounting Policies: Share-based Compensation (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Share-based Compensation	Share-Based Compensation
	Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period.  The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.

Recovered_Sheet3

2 Significant Accounting Policies: Impairment of Long Lived Assets (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Impairment of Long Lived Assets	Impairment of long lived assets
	In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such as property, plant and equipment, land use rights and intangible assets 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.  For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.  Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable.  Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

Recovered_Sheet4

2 Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Income Taxes	Income taxes
	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.
	ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

Recovered_Sheet5

2 Significant Accounting Policies: Non-controlling Interest (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Non-controlling Interest
	Non-controlling interest
	Non-controlling interests in our subsidiaries are recorded in accordance with the provisions of ASC Topic 810, “Consolidation”, and are reported as a component of our equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interests are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, If any, will be reported at fair value with any gain or loss recognized in earnings.
	Under ASC 810-10-45-21, losses attributable to the parent and the non-controlling interest in a subsidiary may exceed their interests in the subsidiary’s equity. The excess, and any further losses attributable to the parent and the non-controlling interest, shall be attributed to those interests. That is, the non-controlling interest shall continue to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance

Recovered_Sheet6

2 Significant Accounting Policies: Currency Translation (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Currency Translation
	Currency translation
	Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (”RMB”).  Revenue and expense accounts are translated at the average rates during the period, and balance sheet items are translated at year-end rates.  Translation adjustments arising from the use of differing exchange rates from period to period are included as a separate component of shareholders’ equity.  Gains and losses from foreign currency transactions are recognized in current operations.
		2013	2012
	Year ended RMB: US$ exchange rate	6.1882	6.3197
	Average yearly RMB: US$ exchange rate	6.2814	6.363
	The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation.

Recovered_Sheet7

2 Significant Accounting Policies: Fair Value Measurement (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Fair Value Measurement	Fair value of financial instruments
	The Company has adopted ASC Topic 820, ”Fair Value Measurement and Disclosure”, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:
	Level 1 - Quoted prices in active markets for identical assets or liabilities.
	Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.
	The carrying amount of cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short term nature of these items.
	As of June 30, 2013, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value.  The Company’s short-term borrowings, loans payable, related party notes payable and unrelated party notes payable that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of June 30, 2013.
	As of June 30, 2013, the Company does not have any level 3 financial instruments.  The Company uses the discounted cash flow approach when determining fair values of its non-recurring fair value measurements when required. We determine the fair value of our goodwill for purposes of comparing to the carrying value on at least an annual basis. Our goodwill would be adjusted to fair value if it is deemed to be impaired. Certain unobservable units for these assets are offered quotes, lack of marketability, long-term revenue growth rates and discounts rates.  For Level 3 measurements, significant increases or decreases in long-term growth rates or discount rates in isolation or in combination could result in a significantly lower or higher fair value measurement.  In general, a change in the long-term growth rate of our Hebei Aoxing business unit could negatively affect the fair value of our goodwill.

Recovered_Sheet8

2 Significant Accounting Policies: Derivative Financial Instruments (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Derivative Financial Instruments	Derivative financial instruments
	The Company’s derivative financial instruments consist of embedded derivatives related to the warrants.  The accounting treatment of derivative financial instruments requires that the Company record the warrants at their fair values as of the inception date and at fair value as of each subsequent balance sheet date.  Any change in fair value is recorded as non-operating, non-cash income or expense at each balance sheet date.  If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company recorded non-operating, non-cash income.
	During the years ended June 30, 2013 and 2012, the Company recognized other income of nil and $1,161, respectively, relating to recording the warrant and derivative liabilities at fair value.  At June 30, 2013 and 2012 there were no warrant and derivative liabilities.

Recovered_Sheet9

2 Significant Accounting Policies: Comprehensive Income (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Comprehensive Income	Comprehensive income
	ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income or loss, as presented in the accompanying statement of changes in shareholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit

Recovered_Sheet10

2 Significant Accounting Policies: Earnings Per Share (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Earnings Per Share	Earnings per share
	Basic earnings per common share are computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed on the basis of the weighted average number of common shares and dilutive securities (such as warrants and convertible preferred stock) outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.

Recovered_Sheet11

2 Significant Accounting Policies: Statement of Cash Flows (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Statement of Cash Flows	Statement of cash flows
	In accordance with the provisions of Accounting Standards Codification on “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

Recovered_Sheet12

2 Significant Accounting Policies: Segment Reporting (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Segment Reporting	Segment reporting
	ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the year ended June 30, 2013, ASC 280 has an immaterial effect on the Company’s financial statements, as the Company consists of one reportable business segment.  All revenue is from customers in the PRC.  The majority of the Company’s assets are located in the PRC.

Recovered_Sheet13

2 Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	12 Months Ended
	Jun. 30, 2013
Policies
Recent Accounting Pronouncements	Recent accounting pronouncements
	The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
	In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarified that the scope of ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, would apply to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or are subject to a master netting arrangement or similar agreement. This ASU is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Retrospective presentation for all comparative periods presented is required. The adoption of ASU 2013-01 is not expected to have material impact on the Company’s consolidated financial statements.
	In February 2013, the Financial Accounting Standards Board issued ASU 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, it requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. Early adoption is permitted. The Company does not expect that the adoption of ASU 2013-02 will have a material impact on its consolidated financial statements.

Recovered_Sheet14

2 Significant Accounting Policies: Currency Translation: Schedule of Currency Translation (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Currency Translation
		2013	2012
	Year ended RMB: US$ exchange rate	6.1882	6.3197
	Average yearly RMB: US$ exchange rate	6.2814	6.363

4_Inventories_Net_Schedule_of_

4 Inventories, Net: Schedule of Inventory, Current (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Inventory, Current
		June 30,
		2013		2012
	Work in process	$	1,041,267	$	709,679
	Raw materials		509,209		495,980
	Finished goods		1,071,402		599,761
		$	2,621,878	$	1,805,420

5_Property_and_Equipment_Net_P

5 Property and Equipment, Net: Property, Plant and Equipment (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Property, Plant and Equipment
		June 30,
		2013		2012
	Right to use land	$	8,082,447	$	7,914,268
	Building and building improvements		13,514,738		13,233,524
	Machinery and equipment		3,763,566		3,508,394
	Furniture and office equipment		596,306		545,712
	Automobiles		624,012		611,028
	Construction in progress		5,792,345		5,450,172
			32,373,414		31,263,098
	Accumulated depreciation and amortization		5,431,636		4,302,907
		$	26,941,778	$	26,960,191

6_Equitymethod_Investment_in_J1

6 Equity-method Investment in Joint Venture: Schedule of Equity Method Investments (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Equity Method Investments
		June 30,
		2013		2012
	Current assets	$	8,964	$	8,808
	Noncurrent assets		844,268		870,124
	Current liabilities		338,761		151,541
	Noncurrent liabilities		-		-
	Equity		514,471		727,391
	Revenues				-
	General and administrative expenses		-224,989		-259,432
	Net loss	$	-224,989	$	-259,432

7_Shortterm_Borrowing_Schedule

7 Short-term Borrowing: Schedule of Short Term Debt (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Short Term Debt
		June 30,
		2013			2012
	Shijiazhuang Finance Bureau (a)		$	80,799		$	79,118
	Shijiazhuang Construction Investment Group Co., Ltd (b)			3,231,958			3,164,707
	Total		$	3,312,757		$	3,243,825

8_Loan_Payable_Bank_Schedule_o

8 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Long-term Debt Instruments
		June 30,
		2013			2012
	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of  7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014	$	4,847,936		$	4,747,061
	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8%interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014		3,231,958			-
	Bank Note in the amount of 2.4 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on  September 24, 2012 for one year maturing on December 20, 2013		387,835			-
	Bank Note in the amount of 25 million RMB with China Citic Bank bearing an annual floating rate of  8.528%, set to be 30% higher than the interest rate of the China People Bank rate, initially made on May 5, 2010 and renewed again on April 13, 2012 for one year maturing on April 13, 2013		-	-		3,955,884
		$	8,467,729		$	8,702,945

10_Loan_Payable_Related_Partie1

10 Loan Payable - Related Parties: Schedule of Related Party Transactions (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Related Party Transactions
		June 30,
		2013		2012
	Within one year	$	2,101,998	$	213,733
	1 – 2 years		1,561,013		3,286,823
	2 – 3 years		-		212,945
	Total		3,663,011		3,713,501
	Less current portion		-2,101,998		-213,733
		$	1,561,013	$	3,499,768

13_Accrued_Expenses_and_Other_1

13 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Accounts Payable and Accrued Liabilities
		June 30,
		2013		2012
	Accrued salaries and benefits	$	867,961	$	713,918
	Accrued interest		698,320		556,155
	Accrued taxes		255,275		211,339
	Deposit payable		429,610		397,706
	Due to employee		46,516		45,548
	Advance from customers		516,183		322,606
	Other accounts payable		711,486		585,302
	Other accrued expenses and current liabilities		883,325		766,594
		$	4,408,676	$	3,599,168

14_Stock_Options_Schedule_of_B

14 Stock Options: Schedule of Benefit Obligation In Excess Of Fair Value Of Plan Assets (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Benefit Obligation In Excess Of Fair Value Of Plan Assets
		For the year ended
		30-Jun-12
	Estimated dividends	None
	Expected volatility	126.13%
	Risk-free interest rate	0.72%
	Expected term (years)	2

14_Stock_Options_Schedule_of_S

14 Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Share-based Compensation, Stock Options, Activity
							Weighted-avg.			Aggregate
					Weighted-avg.		remaining			intrinsic
		Shares			Exercise Price		Term (yr.)			Value
	On June 30, 2011		220,000		$	2	3.1			$	211,419
	Granted:		50,000		$	0.42	5.0				0
	Exercised:		-			-	-				-
	Forfeited:		-		-		-			-
	On June 30, 2012		270,000		$	1.7	3.2			$	0
	Granted:		-		$	-			-	-
	Exercised:		-		-		-			-
	Forfeited:		(138,000	)	-		-			-
	On June 30, 2013		132,000		$	2		1.1		$	0

16_Taxes_Schedule_of_Effective

16 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation
		Year Ended June 30,
		2013		2012
	Tax at U.S. Statutory rate	$	-6,051,716	$	-5,557,214
	Tax rate difference between China and U.S.		541,696		-46,623
	Change in Valuation Allowance		1,852,280		276,931
	Net operating loss expired		1,786,650		1,868,334
	Stock and option compensation		50,892		108,918
	Impairment loss on goodwill		1,820,198		3,349,654
	Effective tax rate	$	-	$	-

16_Taxes_Schedule_of_Component

16 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)
		Year Ended June 30,
		2013		2012
	Current	$	-	$	-
	Deferred - U.S.		-176,469		-393,763
	Deferred – China		-1,532,812		116,832
	Valuation allowance - U.S.		176,469		393,763
	Valuation allowance – China		1,532,812		-116,832
	Total	$	-	$	-

16_Taxes_Schedule_of_Deferred_

16 Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Jun. 30, 2013
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities
		2013		2012
	Net operating loss carryforward - China	$	2,930,676	$	1,863,405
	Net operating loss carryforward - US		1,614,106		1,437,637
	Allowance for doubtful accounts		427,752		532,913
	Others		672,369		101,667
			5,644,903		3,935,622
	Less: valuation allowance- U.S.		-1,614,106		-1,437,637
	valuation allowance- China.		-4,030,797		-2,497,985
	Deferred tax assets	$	-	$	-

Recovered_Sheet15

2 Significant Accounting Policies: Accounts Receivable (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Allowance for doubtful accounts	$663,983	$575,223
Allowance for Doubtful Accounts Receivable, Write-offs	$75,401	$18,981

Recovered_Sheet16

2 Significant Accounting Policies: Inventories, Net (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Inventory markdown	$3,979	($19,010)
Inventory Valuation Reserves	386,120	36,080
Obsolete Inventory
Inventory markdown	$21,598	$73,954

Recovered_Sheet17

2 Significant Accounting Policies: Goodwill and Intangible Assets (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Restructuring, Settlement and Impairment Provisions	$616,947
Discount rate for valuation of tangible and intangible assets	14.00%
Growth rate used on forecasted discounted cash flows	9.90%
Growth rate used on forecasted discounted cash flows terminal value	3.00%
Impairment charge on goodwill	$7,055,364	$13,398,614

Recovered_Sheet18

2 Significant Accounting Policies: Currency Translation: Schedule of Currency Translation (Details)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Year ended RMB: US$ exchange rate	6.1882	6.3197
Average yearly RMB: US$ exchange rate	6.2814	6.363

Recovered_Sheet19

2 Significant Accounting Policies: Derivative Financial Instruments (Details) (USD $)	12 Months Ended
	Jun. 30, 2012
Details
Change in fair value of warrant and derivative liabilities	$1,161

3_Going_Concern_Details

3 Going Concern (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Details
NET LOSS	($17,290,618)	($15,877,754)
NET CASH USED IN OPERATING ACTIVITIES	-8,317,173	-1,326,190
Working Capital Deficit	9,811,310
Cash and cash equivalents	$4,007,823	$3,682,743	$2,770,744

4_Inventories_Net_Schedule_of_1

4 Inventories, Net: Schedule of Inventory, Current (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Details
Inventory, Work in Process, Gross	$1,041,267	$709,679
Inventory, Raw Materials, Gross	509,209	495,980
Inventory, Finished Goods, Gross	1,071,402	599,761
Inventories, net	$2,621,878	$1,805,420

4_Inventories_Net_Details

4 Inventories, Net (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Details
Inventory Valuation Reserves	$386,120	$36,080

5_Property_and_Equipment_Net_P1

5 Property and Equipment, Net: Property, Plant and Equipment (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Property, Plant and Equipment, Gross	$32,373,414	$31,263,098
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	5,431,636	4,302,907
Property and equipment, net of accumulated depreciation	26,941,778	26,960,191
Right to use land
Property, Plant and Equipment, Gross	8,082,447	7,914,268
Building
Property, Plant and Equipment, Gross	13,514,738	13,233,524
Machinery and Equipment
Property, Plant and Equipment, Gross	3,763,566	3,508,394
Furniture and Fixtures
Property, Plant and Equipment, Gross	596,306	545,712
Automobiles
Property, Plant and Equipment, Gross	624,012	611,028
Construction in Progress
Property, Plant and Equipment, Gross	$5,792,345	$5,450,172

5_Property_and_Equipment_Net_D

5 Property and Equipment, Net (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Depreciation, Nonproduction	$1,015,760	$910,926

6_Equitymethod_Investment_in_J2

6 Equity-method Investment in Joint Venture: Schedule of Equity Method Investments (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Equity Method Investment, Summarized Financial Information, Current Assets	$8,964	$8,808
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	844,268	870,124
Equity Method Investment, Summarized Financial Information, Current Liabilities	338,761	151,541
Equity Method Investment Summarized Financial Information, Equity	514,471	727,391
Equity Method Investment, Summarized Financial Information, Cost of Sales	-224,989	-259,432
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	($224,989)	($259,432)

6_Equitymethod_Investment_in_J3

6 Equity-method Investment in Joint Venture (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$114,744	$132,311

7_Shortterm_Borrowing_Schedule1

7 Short-term Borrowing: Schedule of Short Term Debt (Details) (USD $)	Jun. 30, 2013		Jun. 30, 2012
Short-term borrowings	$3,312,757		$3,243,825
Shijiazhuang Finance Bureau
Short-term borrowings	80,799	[1]	79,118	[1]
Shijiazhuang Construction Investment Group Co., Ltd
Short-term borrowings	$3,231,958	[2]	$3,164,707	[2]
[1]	A non-interest bearing note payable to Shijiazhuang Finance Bureau, an agency of a local government, due on demand.
[2]	A one-year term loan from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The note bears an annual interest rate of 15% and was due on August 3, 2013, at which time it was rolled-over for 3 months until November 3, 2013. The note was secured by certain registered trademarks and renewal certificates relating to AoxingBs Zhongtongan capsule.

8_Loan_Payable_Bank_Schedule_o1

8 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Details) (USD $)	Jun. 30, 2013		Jun. 30, 2012
LoansPayableToBankCurrent	$8,467,729		$8,702,945
Bank of Communications of China
LoansPayableToBankCurrent	4,847,936	[1]	4,747,061	[1]
Postal Savings Bank
LoansPayableToBankCurrent	3,231,958	[2]
Beijing International Trust Co., Ltd
LoansPayableToBankCurrent	387,835	[3]
China Citic Bank
LoansPayableToBankCurrent			$3,955,884	[4]
[1]	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of 7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014
[2]	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8% interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014
[3]	Bank Note in the amount of 2.4 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for one year maturing on December 20, 2013
[4]	Bank Note in the amount of 25 million RMB with China Citic Bank bearing an annual floating rate of 8.528%, set to be 30% higher than the interest rate of the China People Bank rate, initially made on May 5, 2010 and renewed again on April 13, 2012 for one year maturing on April 13, 2013

9_Loan_Payable_Other_Details

9 Loan Payable - Other (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Accounts Payable, Interest-bearing, Interest Rate	17.90%	17.90%
Other Loans Payable	$1,403,591	$1,804,832
Other Loans Payable, Current		-114,562
Loan payable - others	1,403,591	1,690,270
Within on year
Other Loans Payable		114,562
1-2 years
Other Loans Payable	1,403,591
2-3 years
Other Loans Payable		$1,690,270

10_Loan_Payable_Related_Partie2

10 Loan Payable - Related Parties (Details)	Jun. 30, 2013	Jun. 30, 2012
Details
Accounts Payable Related Parties Interest Bearing Interest Rate	15.88%	15.23%

10_Loan_Payable_Related_Partie3

10 Loan Payable - Related Parties: Schedule of Related Party Transactions (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Due to Related Parties	$3,663,011	$3,713,501
Current portion of loan payable - related parties	2,101,998	213,733
Loan payable - related parties	1,561,013	3,499,768
Within on year
Due to Related Parties	2,101,998	213,733
1-2 years
Due to Related Parties	1,561,013	3,286,823
2-3 years
Due to Related Parties		$212,945

13_Accrued_Expenses_and_Other_2

13 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Details
Accrued Salaries, Current	$867,961	$713,918
Accrued interest	698,320	556,155
Accrued Income Taxes, Current	255,275	211,339
Deposit Liability, Current	429,610	397,706
Other Employee Related Liabilities, Current	46,516	45,548
Customer Advances, Current	516,183	322,606
Accounts Payable, Other, Current	711,486	585,302
Other Accrued Liabilities, Current	883,325	766,594
Accrued expenses and other current liabilities	$4,408,676	$3,599,168

14_Stock_Options_Details

14 Stock Options (Details) (USD $)	0 Months Ended		1 Months Ended			12 Months Ended			12 Months Ended		1 Months Ended	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Feb. 28, 2012	Apr. 30, 2011	Feb. 28, 2011	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2011	Jun. 30, 2011	Feb. 28, 2012	Jun. 30, 2012
									1-Feb-11	2-Apr-11	1-Feb-12	1-Feb-12
Common stock options granted	132,000	270,000	50,000	170,000	50,000		35,438
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	132,000	270,000				132,000	270,000	220,000
Stock compensation grant value				$163,362	$48,057						$17,771
Stock or Unit Option Plan Expense						0	35,438		20,024	163,362		7,405
Stock compensation grant remaining value				$28,033

14_Stock_Options_Schedule_of_B1

14 Stock Options: Schedule of Benefit Obligation In Excess Of Fair Value Of Plan Assets (Details)	12 Months Ended
	Jun. 30, 2012
Details
Fair Value Assumptions, Expected Dividend Rate	0.00%
Fair Value Assumptions, Expected Volatility Rate	126.13%
Fair Value Assumptions, Risk Free Interest Rate	0.72%
Fair Value Assumptions, Expected Term	2 years

14_Stock_Options_Schedule_of_S1

14 Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	132,000	270,000	220,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$1.70	$2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	1 year 1 month 6 days	3 years 2 months 12 days	3 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$0	$0	$211,419
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		50,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$2	$0.42
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted		5
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price		$1.70	$2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares	-138,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$0	$0	$211,419

15_Issuance_of_Common_Stock_De

15 Issuance of Common Stock (Details) (USD $)	12 Months Ended
	Jun. 30, 2012	Nov. 07, 2012	Oct. 23, 2012	Jun. 15, 2012	Jun. 12, 2012	Dec. 12, 2011	Nov. 29, 2011	Nov. 21, 2011	Sep. 30, 2011
Details
Shares issued to independent director			79,809		60,000
Shares issued to independent director value			$22,000		$15,600
Shares issued to independent director average stock price			$0.28		$0.26
Shares issued to management for seperation agreement		120,000
Shares issued to management for seperation agreement value		69,300
Shares issued to management for seperation agreement stock price		$0.58
Shares issued to independent director for services	214,376
Shares issued to independent director for services value	88,000
Shares issued to independent director for services average stock price	$0.41
Shares issued to management for services				20,000
Shares issued to management for services value				5,400
Shares issued to management for services stock price				$0.27
Shares issued to three independent directors for services								60,000
Shares issued to three independent directors for services value								24,000
Shares issued to three independent directors for services stock price								$0.40
Shares issued to third party services for services						22,238	79,444
Shares issued to third party services for services average share price									$0.90
Shares issued to third party services for services value						$20,014	$71,500

16_Taxes_Schedule_of_Effective1

16 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	($6,051,716)	($5,557,214)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	541,696	-46,623
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	1,852,280	276,931
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	1,786,650	1,868,334
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	50,892	108,918
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount	$1,820,198	$3,349,654

16_Taxes_Schedule_of_Component1

16 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Deferred Federal Income Tax Expense (Benefit)	($176,469)	($393,763)
Deferred Foreign Income Tax Expense (Benefit)	-1,532,812	116,832
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Income Tax Expense	176,469	393,763
Deferred Taxes Business Combination Valuation Allowance Available To Reduce Income Tax Expense China	$1,532,812	($116,832)

16_Taxes_Schedule_of_Deferred_1

16 Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	$2,930,676	$1,863,405
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	1,614,106	1,437,637
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts	427,752	532,913
Deferred Tax Assets, Other	672,369	101,667
Deferred Tax Assets, Gross	5,644,903	3,935,622
U.S.
Deferred Tax Assets, Valuation Allowance	-1,614,106	-1,437,637
China
Deferred Tax Assets, Valuation Allowance	($4,030,797)	($2,497,985)

17_Concentrations_Details

17 Concentrations (Details)	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Details
Concentration Risk, Customer	Sales to two major customers were 21% and 11% of total sales for the year ended June 30, 2013	Sales to two major customers were 19% and 12% of total sales for the year ended June 30, 2012.
Concentration Risk, Service Provided	Sales of one major product represented approximately 91% and 89% of total sales for the year ended June 30, 2013 and 2012, respectively.	Sales of one major product represented approximately 91% and 89% of total sales for the year ended June 30, 2013 and 2012, respectively.
Concentration Risk, Other Risk	Two major customers accounted for 10% and 1% of outstanding accounts receivable as of June 30, 2013.	Two major customers accounted for nil and 3% of outstanding accounts receivable as of June 30, 2012.