Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 27, 2019 | Dec. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SHINECO, INC. | ||
Entity Central Index Key | 0001300734 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Document Type | 10-K | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 22,871,772 | ||
Entity Public Float | $ 8,912,362 | ||
Entity File Number | 001-37776 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | DE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
CURRENT ASSETS: | ||
Cash | $ 35,330,676 | $ 31,487,053 |
Accounts receivable, net | 9,683,074 | 15,478,336 |
Due from related parties | 188,453 | 388,261 |
Inventories | 2,215,559 | 2,364,558 |
Advances to suppliers, net | 11,833,994 | 4,977,407 |
Deferred issuance cost | 434,000 | |
Other current assets | 1,710,619 | 1,034,780 |
TOTAL CURRENT ASSETS | 60,962,375 | 56,164,395 |
Property and equipment, net | 10,667,730 | 11,697,304 |
Land use right, net of accumulated amortization | 1,264,309 | 1,345,088 |
Investments | 6,650,944 | 6,567,090 |
Distribution rights | 1,074,736 | 1,114,837 |
Long-term deposit and other noncurrent assets | 103,864 | 113,764 |
Long-term accounts receivable, net | 2,700,367 | |
Prepaid leases | 2,857,344 | 3,397,572 |
Deferred tax assets | 158,171 | |
TOTAL ASSETS | 83,739,473 | 83,100,417 |
CURRENT LIABILITIES: | ||
Short-term loans | 2,410,147 | 2,316,283 |
Accounts payable | 220,119 | 2,270,140 |
Advances from customers | 382,091 | 17,500 |
Due to related parties | 234,500 | 197,617 |
Other payables and accrued expenses | 3,893,027 | 1,736,735 |
Taxes payable | 3,341,872 | 2,991,624 |
TOTAL CURRENT LIABILITIES | 10,481,756 | 9,529,899 |
Income tax payable - noncurrent portion | 625,603 | 685,185 |
Deferred tax liability | 11,652 | |
TOTAL LIABILITIES | 11,107,359 | 10,226,736 |
Commitments and contingencies | ||
EQUITY: | ||
Common stock; par value $0.001, 100,000,000 shares authorized; 22,871,772 and 21,234,072 shares issued and outstanding at June 30, 2019 and June 30, 2018 | 22,872 | 21,234 |
Additional paid-in capital | 24,759,356 | 23,171,102 |
Statutory reserve | 4,198,107 | 4,085,819 |
Retained earnings | 46,735,190 | 46,051,289 |
Accumulated other comprehensive loss | (4,184,024) | (1,509,212) |
Total Stockholders' equity of Shineco, Inc. | 71,531,501 | 71,820,232 |
Non-controlling interest | 1,100,613 | 1,053,449 |
TOTAL EQUITY | 72,632,114 | 72,873,681 |
TOTAL LIABILITIES AND EQUITY | $ 83,739,473 | $ 83,100,417 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per shares) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 22,871,772 | 21,234,072 |
Common stock, shares outstanding | 22,871,772 | 21,234,072 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||
REVENUE | $ 31,220,040 | $ 43,897,618 |
COST OF REVENUE | ||
Cost of product and services | 22,175,906 | 29,005,659 |
Business and sales related tax | 72,538 | 104,667 |
Total cost of revenue | 22,248,444 | 29,110,326 |
GROSS PROFIT | 8,971,596 | 14,787,292 |
OPERATING EXPENSES | ||
General and administrative expenses | 8,153,496 | 3,985,604 |
Selling expenses | 702,685 | 1,530,005 |
Total operating expenses | 8,856,181 | 5,515,609 |
INCOME FROM OPERATIONS | 115,415 | 9,271,683 |
OTHER INCOME | ||
Impairment loss on goodwill | (2,153,298) | |
Impairment loss on an unconsolidated entity | (200,000) | |
Income from equity method investments | 516,144 | 907,794 |
Purchase rebate income | 1,038,931 | 1,377,108 |
Other income | 210,895 | 307,637 |
Interest expense, net | (11,998) | (58,775) |
Total other income | 1,553,972 | 380,466 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,669,387 | 9,652,149 |
PROVISION FOR INCOME TAXES | 787,600 | 2,123,587 |
NET INCOME | 881,787 | 7,528,562 |
Net (loss) income attributable to non-controlling interest | 85,598 | (59,354) |
NET INCOME ATTRIBUTABLE TO SHINECO, INC. | 796,189 | 7,587,916 |
COMPREHENSIVE INCOME | ||
Net income | 881,787 | 7,528,562 |
Other comprehensive income (loss): foreign currency translation gain (loss) | (2,713,246) | 1,658,658 |
Total comprehensive income (loss) | (1,831,459) | 9,187,220 |
Less: comprehensive (loss) income attributable to non-controlling interest | 47,164 | (32,466) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHINECO, INC. | $ (1,878,623) | $ 9,219,686 |
Weighted average number of shares basic and diluted | 22,472,442 | 21,119,004 |
Basic and diluted earnings per common share | $ 0.04 | $ 0.36 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock | Additional Paid-In Capital | Statutory Reserve | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total |
Balance at Jun. 30, 2017 | $ 21,034 | $ 22,737,302 | $ 3,484,449 | $ 39,064,743 | $ (3,140,982) | $ 1,087,376 | $ 63,253,922 |
Balance, shares at Jun. 30, 2017 | 21,034,072 | ||||||
Acquisition of Tajite | (1,461) | (1,461) | |||||
Stock issuance | $ 200 | 433,800 | 434,000 | ||||
Stock issuance, shares | 200,000 | ||||||
Net income (loss) | 7,587,916 | (59,354) | 7,528,562 | ||||
Appropriation of statutory reserve | 601,370 | (601,370) | |||||
Foreign currency translation gain (loss) | 1,631,770 | 26,888 | 1,658,658 | ||||
Balance at Jun. 30, 2018 | $ 21,234 | 23,171,102 | 4,085,819 | 46,051,289 | (1,509,212) | 1,053,449 | 72,873,681 |
Balance, shares at Jun. 30, 2018 | 21,234,072 | ||||||
Stock issuance | $ 1,638 | 1,588,254 | 1,589,892 | ||||
Stock issuance, shares | 1,637,700 | ||||||
Net income (loss) | 796,189 | 85,598 | 881,787 | ||||
Appropriation of statutory reserve | 112,288 | (112,288) | |||||
Foreign currency translation gain (loss) | (2,674,812) | (38,434) | (2,713,246) | ||||
Balance at Jun. 30, 2019 | $ 22,872 | $ 24,759,356 | $ 4,198,107 | $ 46,735,190 | $ (4,184,024) | $ 1,100,613 | $ 72,632,114 |
Balance, shares at Jun. 30, 2019 | 22,871,772 |
Consolidated statements of Cash
Consolidated statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 881,787 | $ 7,528,562 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 791,534 | 698,232 |
Loss from disposal of property and equipment | 5,557 | |
Provision for doubtful accounts | 4,379,780 | 262,013 |
(Decrease) increase in inventory reserve | (3,657) | 124,601 |
Deferred benefit provision | (170,483) | (28,138) |
Income from equity method investments | (516,145) | (907,794) |
Impairment loss on goodwill | 2,153,298 | |
Impairment loss on an unconsolidated entity | 200,000 | |
Value of shares issued to IFG Fund for equity, we subsequently cancelled | 434,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,766,419 | (3,569,821) |
Advances to suppliers | (7,501,401) | (2,563,943) |
Inventories | 68,009 | (25,031) |
Other receivables | (179,366) | 170,125 |
Prepaid expense and other assets | (10,875) | 4,442 |
Due from related parties | (64,317) | 126,293 |
Prepaid leases | 420,677 | 485,382 |
Accounts payable | (1,985,657) | 2,145,058 |
Advances from customers | 367,545 | (70,459) |
Other payables | 2,220,059 | 1,272,263 |
Taxes payable | 400,462 | 2,036,079 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,498,371 | 9,846,719 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (96,038) | (1,763,160) |
Proceeds from disposal of property and equipment | 607 | |
Payment for (refund of) construction in progress | (41,768) | 58,671 |
Repayments (advances) of loans from third parties | (359,927) | 831,716 |
Repayments from (advances to) related party | 251,342 | (53,793) |
Income received from investments in unconsolidated entities | 153,695 | |
Cash of subsidiary acquired | 23,304 | |
NET CASH USED IN INVESTING ACTIVITIES | (246,391) | (748,960) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 2,418,162 | 2,459,122 |
Proceeds from other short-term loans | 43,967 | |
Repayment of short-term loans | (2,198,330) | (2,877,044) |
Repayment of other short-term loans | (85,491) | |
Proceeds from issuance of 1,637,700 of common stock | 1,589,892 | |
Proceeds from (repayments to) related parties | 44,271 | (67,561) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 1,812,471 | (485,483) |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | (1,220,828) | (279,774) |
NET INCREASE IN CASH | 3,843,623 | 8,332,502 |
CASH - Beginning of the Year | 31,487,053 | 23,154,551 |
CASH - End of the Year | 35,330,676 | 31,487,053 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for income taxes | 694,084 | 857,201 |
Cash paid for interest | 115,384 | 133,930 |
SUPPLEMENTAL NON-CASH INVESTING ACTIVITY: | ||
Issued 200,000 shares of deferred issuance cost | $ 434,000 |
Consolidated statements of Ca_2
Consolidated statements of Cash Flows (Parenthetical) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Statement of Cash Flows [Abstract] | |
Proceeds from issuance of common stock | $ 1,637,700 |
Issued shares of deferred issuance cost | $ 200,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS Shineco, Inc. ("Shineco" or the "Company") was incorporated in the State of Delaware on August 20, 1997. The Company is a holding company whose primary purpose is to develop business opportunities in the People's Republic of China ("PRC" or "China"). On December 30, 2004, the Company acquired all of the issued and outstanding shares of Beijing Tenet-Jove Technological Development Co., Ltd. ("Tenet-Jove"), a PRC company, in exchange for restricted shares of the Company's common stock, and the sole operating business of the Company became that of its subsidiary, Tenet-Jove. Tenet-Jove was incorporated on December 15, 2003 under the laws of China. Consequently, Tenet-Jove became a 100% owned subsidiary of Shineco and was officially granted the status of a Wholly Foreign-Owned Entity ("WFOE") by Chinese authorities on July 14, 2006. This transaction was accounted for as a recapitalization. Tenet-Jove owns 90% interest of Tianjin Tenet Huatai Technological Development Co., Ltd. ("Tenet Huatai"). On December 31, 2008, June 11, 2011 and May 24, 2012, Tenet-Jove entered into a series of contractual agreements including an Executive Business Cooperation Agreement, a Timely Reporting Agreement, an Equity Interest Pledge Agreement and Executive Option Agreement (collectively, the "VIE Agreements"), with each one of the following entities, Ankang Longevity Pharmaceutical (Group) Co., Ltd. ("Ankang Longevity Group"), Yantai Zhisheng International Freight Forwarding Co., Ltd. ("Zhisheng Freight"), Yantai Zhisheng International Trade Co., Ltd. ("Zhisheng Trade"), Yantai Mouping District Zhisheng Agricultural Produce Cooperative ("Zhisheng Agricultural") and Qingdao Zhihesheng Agricultural Produce Services., Ltd. ("Qingdao Zhihesheng"). On February 24, 2014, Tenet-Jove entered into the same series of contractual agreements with Shineco Zhisheng (Beijing) Bio-Technology Co., Ltd. ("Zhisheng Bio-Tech"), which was incorporated in 2014. Zhisheng Bio-Tech, Zhisheng Freight, Zhisheng Trade, Zhisheng Agricultural, and Qingdao Zhihesheng are collectively referred to herein as the "Zhisheng Group". Pursuant to the VIE Agreements, Tenet-Jove has the exclusive right to provide to the Zhisheng Group and Ankang Longevity Group consulting services related to their business operations and management. All the above contractual agreements obligate Tenet-Jove to absorb a majority of the risk of loss from the Zhisheng Group and Ankang Longevity Group's activities and entitle Tenet-Jove to receive a majority of their residual returns. In essence, Tenet-Jove has gained effective control over the Zhisheng Group and Ankang Longevity Group. Therefore, the Zhisheng Group and Ankang Longevity Group are treated as Variable Interest Entities ("VIEs") under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 "Consolidation". Accordingly, the accounts of these entities are consolidated with those of Tenet-Jove. Since Shineco is effectively controlled by the majority shareholders of the Zhisheng Group and Ankang Longevity Group, Shineco owns 100% of Tenet-Jove. Accordingly, Shineco, Tenet-Jove, and its VIEs, the Zhisheng Group and Ankang Longevity Group are effectively controlled by the same majority shareholders. Therefore, Shineco, Tenet-Jove and its VIEs are considered under common control. The consolidation of Tenet-Jove and its VIEs into Shineco was accounted for at historical cost and prepared on the basis as if the aforementioned exclusive contractual agreements between Tenet-Jove and its VIEs had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. On April 19, 2017, Tenet-Jove established Xinjiang Tiankunrunze Biological Engineering Co., Ltd. ("Tiankunrunze") with registered capital of RMB 50.0 million (US$ 7,262,000) and owns 65% interest of Tiankunrunze. On April 28, 2017, Tiankunrunze established Xinjiang Tianzhuo Technology Development Co., Ltd. ("Tianzhuo") with registered capital of RMB 10.0 million (US$ 1,450,233). On May 22, 2017, Tiankunrunze established Xinjiang Tianhuihechuang Agriculture Development Co., Ltd. ("Tianhuihechuang") with registered capital of RMB 10.0 million (US$ 1,452,294). On May 23, 2017, Tiankunrunze established Xinjiang Tianxintongye Biotechnology Development Co., Ltd. ("Tianxintongye") with registered capital of RMB 10.0 million (US$ 1,451,615). Therefore, Tenet-Jove controls Tiankunrunze and its wholly owned subsidiaries. On May 2, 2017, the Company entered into a Strategic Cooperation Agreement with Beijing Zhongke Biorefinery Engineering Technology Co., Ltd. ("Biorefinery"), a leading high-tech biomass refining company financially backed by the Chinese Academy of Sciences Institute of Process Engineering, to establish the Institute of Chinese Apocynum Industrial Technology Research ("ICAITR"). Pursuant to the Strategic Cooperation Agreement the two parties agreed to establish the ICAITR, the Company and Biorefinery own 80% and 20% of the equity interests of ICAITR, respectively. Shineco invested RMB 5.0 million (US$ 737,745) as the registered capital, and Biorefinery will invest a technology patent named "Steam Explosion Degumming". On September 30, 2017, Tenet-Jove established Xinjiang Shineco Taihe Agriculture Technology Ltd. ("Xinjiang Taihe") with registered capital of RMB 10.0 million (US$ 1,502,650). On September 30, 2017, Tenet-Jove established Xinjiang Tianyi Runze Bioengineering Co., Ltd. ("Runze") with registered capital of RMB 10.0 million (US$ 1,502,650). Xinjiang Taihe and Runze became wholly-owned subsidiaries of Tenet-Jove. On December 10, 2016, Tenet-Jove entered into a purchase agreement with Tianjin Tajite E-Commerce Co., Ltd. ("Tianjin Tajite"), an online e-commerce company based in Tianjin, China, specializing in distributing Luobuma related products and branded products of Daiso 100-yen shops, pursuant to which Tenet-Jove would acquire a 51% equity interest in Tianjin Tajite for cash consideration of RMB 14,000,000 (approximately US$ 2.1 million). On December 25, 2016, the Company paid the full amount as the deposit to secure the deal. In May, 2017, the Company amended the agreement that required Tianjin Tajite to satisfy certain preconditions related to product introductions into China. On October 26, 2017, the Company completed the acquisition for 51% of the shares in Tianjin Tajite. On October 27, 2017, the Company, through its subsidiary Tianjin Tajite E-Commerce Co., Ltd. ("Tianjin Tajite"), obtained contractual rights to distribute branded products of Daiso Industries Co., Ltd. ("Daiso"), a large franchise of 100-yen shops founded in Japan, via JD.com ("JD"), one of the largest e-commerce companies and one of the largest retailers in China. On November 3, 2017, the Company further developed the cooperation with Daiso by entering into a supply and purchase agreement (the "Daiso Agreement") for the purpose of establishing a continuous supply and sale of Daiso's products in China. Pursuant to the Daiso Agreement, the Company planned to purchase Daiso Products in the amount of approximately RMB 20 million by August, 2018 and add orders as circumstance requires. The term of the Daiso Agreement is for one year, and it renews for an additional one-year at the end of each term unless terminated by written notice by either Tianjin Tajite or Daiso. Due to the policy of China Customs, many of the bestselling products of Daiso are not allowed to be imported through the general form of trade model, but only through cross-border e-commence business model. As a result, the Company and Daiso agreed to suspend the cooperation temporarily and wait for the opening of the China-Japan-South Korea Free Trade Zone. On November 1, 2017, the Company established an Apocynum Industrial Park in Xinjiang, China. The industrial park is focusing on planting and purchasing Bluish Dogbane, processing and distributing Bluish Dogbane preliminary products. On March 13, 2019, Tenet-Jove established Beijing Tenjove Newhemp Biotechnology Co., Ltd. ("TNB") with registered capital of RMB 10.0 million (US$ 1,502,650). TNB became a wholly-owned subsidiary of Tenet-Jove. The business operation of Tiankunrunze and its wholly owned subsidiaries was ceased in July 2019. The Company, its subsidiaries, its VIEs and its VIEs' subsidiaries (collectively the "Group") operate three main business segments: 1) Tenet-Jove is engaged in manufacturing and selling of Bluish Dogbane and related products, also known in Chinese as "Luobuma", including therapeutic clothing and textile products made from Luobuma; 2) Zhisheng Group is engaged in the business of planting, processing and distributing of green agricultural produce as well as providing domestic and international logistic services for agricultural products ("Agricultural Products"); and, 3) Ankang Longevity Group manufactures traditional Chinese medicinal herbal products as well as other retail pharmaceutical products. These different business activities and products can potentially be integrated and benefit from one another. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, its VIEs and its VIEs' subsidiaries. The non-controlling interest represents the minority shareholders' interest in the Company's majority owned subsidiaries and VIEs. All intercompany accounts and transactions have been eliminated in consolidation. Consolidation of Variable Interest Entities VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The carrying amount of the VIEs and their subsidiaries' consolidated assets and liabilities are as follows: June 30, 2019 June 30, 2018 Current assets $ 57,328,097 $ 49,812,314 Plant and equipment, net 8,965,671 9,818,518 Other non-current assets 11,028,775 11,194,017 Total assets 77,322,543 70,824,849 Total liabilities (6,090,955 ) (5,014,036 ) Net assets $ 71,231,588 $ 65,810,813 Non-controlling Interests US GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company's balance sheet. In addition, the amounts attributable to the non-controlling interests in the net income (loss) of these entities are reported separately in the consolidated statements of income and comprehensive income. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic, and legal environment in the PRC, as well as by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other factors, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, changes could affect the Company's interest in these entities and its operations in the PRC. Members of the current management team own controlling interests in the Company and are also the owners of the VIEs in the PRC. The Company only controls the VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. In addition, should these agreements be challenged or litigated, they would also be subject to the laws and courts of the PRC legal system which could make enforcing the Company's rights difficult. Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP 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 as well as the reported amounts of revenue and expenses during the reporting periods. Significant estimates required to be made by management include, but are not limited to, useful lives of property, plant, and equipment, and intangible assets, the recoverability of long-lived assets and the valuation of accounts receivable, deferred taxes and inventory reserves. Actual results could differ from those estimates. Revenue Recognition The Company previously recognized revenue from sales of Luobuma products, Chinese medicinal herbal products and agricultural products, as well as providing logistic services and other processing services to external customers. The Company recognized revenue when all of the following have occurred: (i) there was persuasive evidence of an arrangement with a customer; (ii) delivery had occurred or services had been rendered; (iii) the sales price was fixed or determinable; and (iv) the Company's collection of such fees was reasonably assured. These criteria, as related to the Company's revenue, were considered to have been met as follows: Sales of products: Revenue from the rendering of services With the adoption of ASC 606, "Revenue from Contracts with Customers," revenue is recognized when all of the following five steps are met: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; (v) recognize revenue when (or as) each performance obligation is satisfied. The Company adopted the new revenue standard beginning July 1, 2018, and adopted a modified retrospective approach upon adoption. The Company believes that its previous revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASC 606. Potential adjustments to input measures are not expected to be pervasive to the majority of the Company's contracts. There is no significant impact upon adoption of the new guidance. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposit and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of June 30, 2019 and 2018, the Company had no cash equivalents. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositors' rights over and interests in their deposited money. PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Company monitors the banks utilized and has not experienced any problems. Accounts Receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts, as necessary. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, the customers' historical payment history, their current credit-worthiness and current economic trends. The fair value of long-term receivables is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. As of June 30, 2019 and 2018, the allowance for doubtful accounts was US$ 4,323,141 and US$ 232,355, respectively. Accounts are written off against the allowance after efforts at collection prove unsuccessful. Inventories Inventories, which are stated at the lower of cost or net realizable value, consist of raw materials, work-in-progress, and finished goods related to the Company's products. Cost is determined using the first in first out ("FIFO") method. Agricultural products that the Company farms are recorded at cost, which includes direct costs such as seed selection, fertilizer, labor cost and contract fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayments of farmland leases and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to the harvested crops costs when they are sold. The Company periodically evaluates its inventory and records an inventory reserve for certain inventories that may not be saleable or whose cost exceeds net realizable value. Advances to Suppliers Advances to suppliers consist of payments to suppliers for materials that have not been received. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired. As of June 30, 2019 and 2018, the Company had an allowance for uncollectible advances to suppliers of US$ 431,646 and US$ 13,819, respectively. Business Acquisitions Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a bargain gain from the purchase. The acquiree's results are included in the Company's consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values on the date acquired and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the net assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed, and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. Goodwill Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit's goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company's reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for additions, major renewals and betterments are capitalized, and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value, if any, over an asset's estimated useful life. Farmland leasehold improvements are amortized over the shorter of lease term or estimated useful lives of the underlying assets. The estimated useful lives of the Company's property and equipment are as follows: Estimated Buildings 20-50 years Machinery equipment 5-10 years Motor vehicles 5-10 years Office equipment 5-10 years Farmland leasehold improvements 12-18 years Land Use Rights According to Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 50 years, based on the term of the land use rights. Long-lived Assets Finite-lived assets and intangibles are reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset's carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property, plant and equipment, land use rights, investments and long-term prepaid leases. For the years ended June 30, 2019 and 2018, the Company did not recognize any impairment of its long-lived assets. Fair Value of Financial Instruments The Company follows the provisions of ASC 820, "Fair Value Measurements and Disclosures." ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability. The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realize The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This ASC also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not have any uncertain tax positions at June 30, 2019 and 2018. The Company has not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries at June 30, 2019, as it is the Company's policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. The statute of limitations for the Company's U.S. federal income tax returns and certain state income tax returns remains open for tax year 2015 and thereafter. As of June 30, 2019, the tax years ended June 30, 2014 through June 30, 2019 for the Company's People's Republic of China ("PRC") subsidiaries remain open for statutory examination by PRC tax authorities. On December 22, 2017, the "Tax Cuts and Jobs Act" ("The Act") was enacted. Under the provisions of The Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a June 30 fiscal year end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018, and 21% for subsequent fiscal years. Additionally, The Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused us to re-measure the Company's income tax liability and record an estimated income tax expense of US$ 744,766 for the year ended June 30, 2018. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, additional work is necessary to do a more detailed analysis of the Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight-year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight). Value Added Tax Sales revenue represents the invoiced value of goods, net of a Value-Added Tax ("VAT"). Before May 1, 2018, all of the Company's products that were sold in the PRC were subject to a Chinese value-added tax at a rate of 17% of the gross sales price, after May 1, 2018, the Company subject a tax rate of 16%, and from April 1, 2019 onwards, the tax rate was further reduced to 13% based on the new Chinese tax law. This VAT may be offset by VAT paid by the Company is on raw materials and other materials included in the cost of producing finished products or acquiring finished products. The Company records a VAT payable or VAT receivable in the accompanying consolidated financial statements. Foreign Currency Translation The Company uses the United States dollar ("U.S. dollars", "USD" or "US$") for financial reporting purposes. The Company's subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi ("RMB"), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. 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. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive income (loss). The balance sheet amounts, with the exception of equity, at June 30, 2019 and 2018 were translated at 1 RMB to 0.1456 USD and at 1 RMB to 0.1511 USD, respectively. The average translation rates applied to the income and cash flow statement amounts for the years ended June 30, 2019 and 2018 were at 1 RMB to 0.1466 USD and at 1 RMB to 0.1537 USD, respectively. Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. Equity Investment An investment in which the Company has the ability to exercise significant influence, but does not have a controlling interest, is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Earnings per Share The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., outstanding convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There was no anti-dilutive effect for the years ended June 30, 2019 and 2018. New Accounting Pronouncements In September 2017, the FASB issued ASU 2017-13, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842). The main objective of this pronouncement is to clarify the effective date of the adoption of ASC Topic 606 and ASC Topic 842 and the definition of public business entity as stipulated in ASU 2014-09 and ASU 2016-02. ASU 2014-09 provides that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities are required to adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. ASU 2016-12 requires that "a public business entity and certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. All other entities are required to adopt ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020". ASU 2017-13 clarifies that the SEC would not object to certain public business entities electing to use the non-public business entities effective dates for applying ASC 606 and ASC 842. ASU 2017-13, however, limits such election to certain public business entities that "otherwise would not meet the definition of a public business entity except for a requirement to include or inclusion of its financial statements or financial information in another entity's filings with the SEC". The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In June 2018, the FASB issued ASU No. 2018-07, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," or ASU 2018-07. ASU 2018-07 simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to Accounting Standards Codification ("ASC") 718 upon vesting which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In July 2018, the FASB issued ASU No. 2018-10, "Codification Improvements to Topic 842, Leases," which clarifies how to apply certain aspects of the new leases standard. This ASU addresses the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. This ASU has the same effective date and transition requirements as the new leases standard, which is effective for annual periods beginning after December 15, 2018. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements" which provides a new transition method and a practical expedient for separating components of a contract. This ASU is intended to reduce costs and ease the implementation of the new leasing standard for financial statement preparers. The effective date and transition requirements for the amendments related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. In December 2018 FASB issued ASU 2018-20, Leases (Topic) 842: Narrow-scope Improvements for Lessors which provides for certain policy elections and changes lessor accounting for sales and similar taxes and certain lessor costs. In March 2019 the FASB issued ASU 2019-01, Leases Codification Improvements Codification improvements to Topic 842 (leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The Company has evaluated the impact of the new standard on its consolidated financial statements and the guidance does not have a material impact on the Company. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement," to improve the effectiveness of disclosures in the notes to financial statements related to recurring or nonrecurring fair value measurements by removing amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, policies for timing of transfers between different levels for fair value measurements, and the valuation processes for Level 3 fair value measurements. The new standard requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," (ASU 2018-15), to align the requirements for capitalizing implementation costs in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs relating to internal-use software. The update requires entities in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset and which costs to expense. ASU 2018-15 is effective for the Corporation on January 1, 2020 and may be applied using either the retrospective or prospective approach. Early adoption is permitted. The Company expects that the adoption of this ASU will have a material impact on its financial statements. In October 2018, the FASB issued ASU No. 2018-17, "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities". The new standard changes how entities evaluate decision-making fees under the variable interest entity guidance. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. The standard should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the period of adoption. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In November 2018, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses." ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Accounting Standard Codification ("ASC") 842, Leases. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company's consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 – INVENTORIES The inventories consist of the following: June 30, 2019 June 30, 2018 Raw materials $ 974,639 $ 1,225,830 Work-in-process 651,769 766,119 Finished goods 1,533,318 1,355,774 Less: inventory reserve (944,167 ) (983,165 ) Total $ 2,215,559 $ 2,364,558 Work-in-process includes direct costs such as seed selection, fertilizer, labor cost and subcontractor fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of the prepayment of the farmland lease fees and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to harvested crop costs when they are sold. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consist of the following: June 30, 2019 June 30, 2018 Buildings $ 11,994,407 $ 12,433,157 Building improvements 79,628 82,599 Machinery and equipment 930,109 922,065 Motor vehicles 81,541 84,583 Construction in progress 78,407 40,524 Office equipment 219,605 179,624 Farmland leasehold improvements 3,062,410 3,176,677 16,446,107 16,919,229 Less: accumulated depreciation and amortization (5,778,377 ) (5,221,925 ) Property and equipment, net $ 10,667,730 $ 11,697,304 Depreciation and amortization expense charged to operations was US$ 753,087 and US$ 658,268 for the years ended June 30, 2019 and 2018, respectively. Farmland leasehold improvements consist of following: June 30, 2019 June 30, 2018 Blueberry farmland leasehold improvements $ 2,352,679 $ 2,440,465 Yew tree planting base reconstruction 263,587 273,422 Greenhouse renovation 446,144 462,790 Total farmland leasehold improvements $ 3,062,410 $ 3,176,677 |
Land Use Rights
Land Use Rights | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
LAND USE RIGHTS | NOTE 5 - LAND USE RIGHTS Land use rights are recognized at cost less accumulated amortization. According to the Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. However, in accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants the user a "land use right" (the "Right") to use the land. The Company has the Right to use the land for 50 years and amortizes the rights on a straight-line basis over the period of 50 years. June 30, 2019 June 30, 2018 Land use rights $ 1,619,820 $ 1,680,259 Less: accumulated amortization (355,511 ) (335,171 ) Land use rights, net $ 1,264,309 $ 1,345,088 For the years ended June 30, 2019 and 2018, the Company recognized amortization expense of US$ 38,447 and US$ 39,964, respectively. The estimated future amortization expenses are as follows: Twelve months ending June 30: 2020 $ 32,396 2021 32,396 2022 32,396 2023 32,396 2024 32,396 Thereafter 1,102,329 Total $ 1,264,309 |
Distribution Rights
Distribution Rights | 12 Months Ended |
Jun. 30, 2019 | |
Distribution Rights [Abstract] | |
DISTRIBUTION RIGHTS | NOTE 6 – DISTRIBUTION RIGHTS The Company acquired distribution rights to distribute branded products of Daiso 100-yen shops through the acquisition of Tianjin Tajite. As this distribution right is difficult to acquire and will contribute significant revenue to Tianjin Tajite, such distribution rights were identified and valued as an intangible asset in the acquisition of Tianjin Tajite. The distribution rights, which have no expiration date, have been determined to have an indefinite life. Since the distribution rights have an indefinite life, the Company will evaluate them for impairment at least annually or earlier if determined necessary. As of June 30, 2019, the distribution rights were evaluated at RMB 7,380,000 (US$ 1,074,736). |
Investments
Investments | 12 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | NOTE 7 – INVESTMENTS Ankang Longevity Group entered into two equity investment agreements with Shaanxi Pharmaceutical Group Pai'ang Medicine Co. Ltd. ("Shaanxi Pharmaceutical Group"), a Chinese state-owned pharmaceutical enterprise to invest a total of RMB 6.8 million (approximately US$ 1.0 million) for a 49% equity interest in a pharmacy retail company called Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Retail Chain Co., Ltd. ("Sunsimiao Drugstores"), and a 49% equity interest in a pharmaceutical wholesale distribution company named Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. ("Shaanxi Longevity Pharmacy"). These two equity investments were formed as new business entities to collaborate with Shaanxi Pharmaceutical Group to expand sales to regional hospitals and clinics and to establish the presence of retail pharmacies under the Brand name "Sunsimiao". The investments are accounted for using the equity method because Ankang Longevity Group has significant influence, but no control of these two entities. Ankang Longevity Group recorded income of US$ 516,144 and US$ 754,099 for years ended June 30, 2019 and 2018, respectively, from the investments, which was included in "Income from equity method investments" in the consolidated statements of income and comprehensive income (see Note 11). Ankang Longevity Group entered into a supplemental agreement with Shaanxi Pharmaceutical Group. According to the supplemental agreement, new 49% equity investment companies established by Shaanxi Pharmaceutical Group and Ankang Longevity Group are required to exclusively purchase certain raw materials and drug products from Shaanxi Pharmaceutical Group. In return, Shaanxi Pharmaceutical Group has agreed to compensate Ankang Longevity Group with a purchase rebate of 7% of the total purchases made from Shaanxi Pharmaceutical Group. For the years ended June 30, 2019 and 2018, a total of US$ 1,038,931 and US$ 1,377,108 was recognized by Ankang Longevity Group from this supplemental agreement in addition to its 49% share of the income from the equity investment companies, respectively. On October 21, 2013, the Company, through its controlled subsidiaries, Zhisheng Freight and Zhisheng Agricultural, entered into an agreement with an unrelated third party, Zhejiang Zhen'Ai Network Warehousing Services Co., Ltd. ("Zhen'Ai Network"), and invested RMB 14.5 million (approximately US$ 2.2 million) into Tiancang Systematic Warehousing project ("Tiancang Project") operated by Zhen'Ai Network. The Tiancang Project is an online platform established to provide comprehensive warehousing and logistic solutions to companies involved in E-commerce. The Company is entitled to 29% of Tiancang Project's after-tax net income annually, less 30% statutory reserve and a 10 % employee welfare fund contribution. When the amount of the accumulated statutory reserve reaches 30% of the total investment for the Tiancang Project, no additional appropriation to the statutory reserve is required. For the years ended June 30, 2019 and 2018, the Company recorded investment income distributions of US$ nil and US$ 153,695 from Zhen'Ai Network, respectively. On November 21, 2016, the Company (the "Investor") entered into an agreement with Original Lab Inc., a California corporation (the "Investee"), and made a payment of US$ 200,000 in exchange for the right to acquire certain shares of the Investee's common and preferred stock. For the years ended June 30, 2019 and 2018, the Company did not record any investment income from this investment, after assessment, the Company considered it's unlikely to obtain any investment income in the near future, and decided the make a fully impairment on this investment. The Company's investments in unconsolidated entities consist of the following: June 30, 2019 June 30, 2018 Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) $ 3,717,277 $ 3,439,793 Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. 822,058 736,898 Zhejiang Zhen'Ai Network Warehousing Services Co., Ltd. 2,111,609 2,190,399 Original Lab Inc. - 200,000 Total $ 6,650,944 $ 6,567,090 Summarized financial information of unconsolidated entities is as follows: June 30, 2019 June 30, Current assets $ 35,675,858 $ 38,079,702 Noncurrent assets 241,580 291,267 Current liabilities 26,668,485 29,862,664 For the years ended 2019 2018 Net sales $ 32,023,745 $ 36,788,909 Gross profit 3,902,665 4,720,094 Income from operations 1,120,351 1,644,747 Net income 1,053,357 1,538,977 |
Prepaid Leases
Prepaid Leases | 12 Months Ended |
Jun. 30, 2019 | |
Prepaid Leases [Abstract] | |
PREPAID LEASES | NOTE 8 - PREPAID LEASES One of the Company's controlled subsidiaries, Zhisheng Group entered into several farmland lease contracts with farmer cooperatives to lease farmland in order to plant and grow organic vegetables, fruit and Chinese yew trees. The lease terms vary from 5 years to 24 years. The aggregate prepaid lease payments on these leases was approximately RMB 36.7 million (approximately US$ 5.3 million). Zhisheng Group was required to prepay the leases plus transfer fees at the beginning of the lease. These leases are accounted for as operating leases and will be amortized each year on a straight-line basis over the lease terms. The amortization expense is initially recorded as work in process in the inventory account during the growing period and then transferred to harvested crops costs at the time of harvest and then allocated to cost of sales when they are sold. Future amortization expense will be recognized as follows: Twelve months ending June 30: 2020 $ 459,907 2021 459,906 2022 439,033 2023 209,426 2024 209,426 Thereafter 1,079,646 Total $ 2,857,344 |
Short-Term Loans
Short-Term Loans | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LOANS | NOTE 9 - SHORT-TERM LOANS Short-term loans consist of the following: Lender June 30, Maturity Int. MY Bank-a 7,282 2019-8-29 * 15.80 % Agricultural Bank of China-b 291,256 2019-8-12 * 5.66 % Agricultural Bank of China-b 655,327 2019-11-13 3.92 % Agricultural Bank of China-c 1,456,282 2020-2-25 5.66 % Total $ 2,410,147 Lender June 30, Maturity Int. MY Bank-a 50,354 2018-10-20 * 11.84 % Agricultural Bank of China-b 302,124 2018-7-3 * 5.22 % Agricultural Bank of China-b 755,310 2018-10-12 * 5.66 % Agricultural Bank of China-b 1,208,495 2019-1-30 * 5.66 % Total $ 2,316,283 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Not collateralized or guaranteed. b. Guaranteed by a commercial credit guaranty company, unrelated to the Company and also by Jiping Chen, a shareholder of the Company. c. Collateralized by the building owned by Xiaoyan Chen and Jing Chen, who are both related parties of the Company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Group. Jing Chen is the sister of the Xiaoyan Chen but not a shareholder of Ankang Longevity Group. * The Company repaid the loan in full on maturity date. The Company recorded interest expense of US$ 115,384 and US$ 133,930 for the years ended June 30, 2019 and 2018, respectively. The annual weighted average interest rates are 5.42% and 5.64% for the years ended June 30, 2019 and 2018, respectively. |
Acquisition
Acquisition | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION | NOTE 10 – ACQUISITION On December 12, 2016, the Company entered into a merger and acquisition agreement with Tianjin Tajite E-Commerce Co., Ltd. ("Tianjin Tajite"), a professional e-commerce company distributing Luobuma fabric commodities and branded products of Daiso 100-yen shops, based in Tianjin, China, to acquire a 51 % equity interest of Tianjin Tajite. Pursuant to the agreement, the Company made a payment of RMB 14,000,000 (approximately US$ 2.1 million) at the end of December, 2016 as the total consideration for the acquisition of Tianjin Tajite. On October 26, 2017, the Company completed the acquisition of Tianjin Tajite. The acquisition provides a unique opportunity for the Company to enter the market of Luobuma fabric commodities and branded products of Daiso 100-yen shops. The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The Company retained independent appraisers to advise management in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial statements represent management's best estimate of fair values as of the Acquisition Date. As required by ASC 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20's measurement procedures for recognition of the fair value of net assets acquired. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Accounts receivable, net 27,028 Inventory 58,119 Other current assets 184,739 Distribution rights 1,074,736 Property, plant and equipment 14,069 Advance from customers (78,263 ) Tax payable (16,893 ) Deferred tax liabilities (268,684 ) Salary payable (25,120 ) Accrued liabilities and other current liabilities (994,724 ) Non-controlling interest 1,426 Goodwill 2,040,280 Total purchase price for acquisition, net of US$ 22,082 of cash $ 2,016,713 The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill. The results of operations of Tianjin Tajite have been included in the consolidated statements of operations from the date of acquisition. In June 2018, the management performed evaluation on the impairment of goodwill. Due to the lower than expected revenue and profit, and unfavorable business environment, the management fully recorded an impairment loss on goodwill of Tianjin Tajite. The fair value of distribution rights and its estimated useful lives is as follows: Preliminary Weighted Average Useful Life Distribution rights $ 1,074,736 (a) (a) The distribution rights with no expiration date has been determined to have an indefinite life. Under ASC 805-10, acquisition-related costs (i.e., advisory, legal, valuation and other professional fees) are not included as a component of consideration transferred, but are expensed in the periods in which the costs are incurred. Acquisition-related costs were nil in the year ended June 30, 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 - RELATED PARTY TRANSACTIONS DUE FROM RELATED PARTIES The Company had previously made temporary advances to certain shareholders of the Company and to other entities that are either owned by family members of those shareholders or to other entities that the Company has investments in. Those advances are due on demand, non-interest bearing. As of June 30, 2019 and 2018, the outstanding amounts due from related parties consist of the following: June 30, June 30, Yang Bin $ 43,688 $ 151,063 Zhang Xin - 93,658 Chang Song - 59,669 Beijing Huiyinansheng Asset Management Co., Ltd (a.) 21,873 22,690 Beijing Shengguang Tianyi Clothing Co., LTD (b.) 63,911 - Wang Qiwei 58,981 61,181 $ 188,453 $ 388,261 a. This Company is wholly owned by one of the Company's senior management. b. This Company is wholly owned by one of the Company's shareholders. DUE TO RELATED PARTIES As of June 30, 2019 and 2018, the Company had related party payables of US$ 234,500 and US$ 197,617, respectively, mainly due to the principal shareholders or certain relatives of the shareholders of the Company who lend funds for the Company's operations. The payables are unsecured, non-interest bearing and due on demand. June 30, 2019 June 30, Wu Yang $ 93,275 $ 96,755 Wang Sai 8,738 - Chen Jiping 989 - Zhang Yuying 2,913 - Zhao Min 128,585 100,862 $ 234,500 $ 197,617 SALES TO RELATED PARTIES For the years ended June 30, 2019 and 2018, the Company recorded sales to Shaanxi Pharmaceutical Group, a related party (see Note 7), of US$ 3,405,982 and US$ 3,285,311, respectively. As of June 30, 2019 and 2018, the balance of accounts receivable due from Shaanxi Pharmaceutical Group was US$ 2,706,111 and US$ 1,526,351, respectively. |
Taxes
Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 12 - TAXES (a) Corporate Income Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the location in which each entity is domiciled. Shineco is incorporated in the United States and has no operating activities. Tenet-Jove and its VIEs entities are governed by the Income Tax Laws of the PRC, and are currently subject to tax at a statutory rate of 25% on taxable income. Two VIE entities and Xinjiang Taihe receive a full income tax exemption from the local tax authority of the PRC as agricultural enterprises as long as the favorable tax policy remains unchanged. On December 22, 2017, the "Tax Cuts and Jobs Act" ("The Act") was enacted, The Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused us to re-measure the Company's income tax liability and record an estimated income tax expense of US$ 744,766 for the year ended June 30, 2018. In accordance with SAB 118, additional work is necessary to do a more detailed analysis of the Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight). i) The components of the income tax expense are as follows: For the years ended 2019 2018 Current income tax provision $ 958,083 $ 2,151,725 Deferred income tax benefit (170,483 ) (28,138 ) Total $ 787,600 $ 2,123,587 ii) The following table summarizes deferred tax assets (liability) resulting from differences between the financial reporting basis and tax basis of assets and liabilities: June 30, June 30, Deferred tax assets: Allowance for doubtful accounts $ 197,962 $ 22,225 Inventory reserve 228,893 244,832 Net operating loss carry-forwards 519,671 539,061 Total 946,526 806,118 Valuation allowance (519,671 ) (539,061 ) Total deferred tax assets 426,855 267,057 Deferred tax liability: Distribution rights (268,684 ) (278,709 ) Total deferred tax liability (268,684 ) (278,709 ) Deferred tax assets (liability), net $ 158,171 $ (11,652 ) Movement of the valuation allowance: June 30, June 30, Beginning balance $ 539,061 $ 111,882 Current year addition - 424,517 Exchange difference (19,390 ) 2,662 Ending balance $ 519,671 $ 539,061 (b) Value Added Tax The Company is subject to a value added tax ("VAT") for selling merchandise. The applicable VAT rate is 17% before May 1, 2018 for products sold in the PRC and decreased to 16% thereafter, and from April 1, 2019 onwards, the Company subject a tax rate of 16% based on the new Chinese tax law. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under commercial practice in the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event that the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of the taxes which are determined to be late or deficient, and will be expensed in the period if and when a determination is made by the tax authorities. There were no assessed penalties during the years ended June 30, 2019 and 2018. (c) Taxes Payable Taxes payable consists of the following: June 30, June 30, Income tax payable $ 3,425,080 $ 3,106,642 Value added tax payable 536,486 562,960 Business tax and other taxes payable 5,909 7,207 Total 3,967,475 3,676,809 Less: current portion 3,341,872 2,991,624 Income tax payable - noncurrent portion $ 625,603 $ 685,185 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13 – SHAREHOLDERS' EQUITY Initial Public Offering On September 28, 2016, the Company completed its initial public offering of 1,713,190 shares of common stock at a price of US$ 4.50 per share for gross proceeds of US$ 7.7 million and net proceeds of approximately US$ 5.4 million. The Company's common shares began trading on September 28, 2016 on the NASDAQ Capital Market under the symbol "TYHT." Statutory Reserve The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Appropriations to the statutory surplus reserve are required to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities' registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. As of June 30, 2019 and 2018, the balance of the required statutory reserves were US$ 4,198,107 and US$ 4,085,819, respectively. On January 23, 2018, Shineco, Inc. entered into a Common Stock Purchase Agreement ("Purchase Agreement") with IFG Opportunity Fund LLC ("IFG Fund") whereby, upon the terms and subject to the conditions and limitations set forth therein, the Company had the right, from time to time in its sole discretion during the 24-month term of the Purchase Agreement, to direct IFG Fund to purchase up to a total of US$ 15,000,000 worth of shares of common stock. As consideration for IFG Fund to enter into the Purchase Agreement, the Company agreed to issue 200,000 shares of the Company's Common Stock (the "Commitment Shares") to IFG Fund. The Purchase Shares were offered in an indirect primary offering consisting of an equity line of credit, in accordance with the terms and conditions of the Purchase Agreement. The total number of Purchase Shares would not exceed 4,000,000. On January 23, 2018, the Company issued the Commitment Shares to IFG Fund. On July 3, 2018, the Company and IFG Fund entered into a termination agreement, dated July 3, 2018 (the "Termination Agreement") effective as of July 3, 2018, to terminate the Purchase Agreement and the Registration Rights Agreement. IFG retained the 200,000 commitment shares which were valued at US$ 434,000 and written off during the three months ended September 30, 2018. On September 27, 2018, the Company entered into a securities purchase agreement with selected investors whereby the Company agreed to sell up to 1,637,700 of common stock at a purchase price of US$ 1 per share, for gross proceeds to the Company of approximately US$ 1,637,700 (the "2018 Offering"). After deducting the offering cost, the net proceeds the Company received was US$ 1,589,892. The 2018 Offering closed on September 28, 2018. The 2018 Offering was made pursuant to the Company's effective registration statement on Form S-3 (Registration Statement No. 333-221711) previously filed with the Securities and Exchange Commission and a prospectus supplement thereunder. On May 8, 2019, TNB, filed with the United States Securities and Exchange Commission a Notice of Exempt Offering of Securities on Form D regarding an offering ("Offering") of tokens that Tenet-Jove plans to raise up to $20,000,000 in the Offering, and up to an additional $20,000,000 in an offering under Regulation S of the Securities Act. Tenet-Jove intends to use the net proceeds from sales of the tokens to develop land and facilities for cultivating industrial hemp in China under a newly formed wholly owned subsidiary (the "Operations"). The tokens represent shares of preferred stock of Tenet-Jove. On an annual basis, Tenet-Jove will distribute to token holders the greater of (A) 5% of the total amount of proceeds raised by Tenet-Jove in the offerings, or (B) 40% of net profits generated from the Operations. The Company will guarantee Tenet-Jove's obligations to distribute such amount. Token holders shall also have the option to convert the tokens into shares of common stock of the Company. As the date of this report, the Offering of tokens is in process, and none of the tokens has been sold. |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 14 - CONCENTRATIONS AND RISKS The Company maintains principally all bank accounts in the PRC. The cash balance held in the PRC bank accounts was US$ 35,311,106 and US$ 31,423,686 as of June 30, 2019 and 2018, respectively. During the years ended June 30, 2019 and 2018, almost 100% of the Company's assets were located in the PRC and 100% of the Company's revenues were derived from its subsidiaries and VIEs located in the PRC. For the year ended June 30, 2019, four customers accounted for approximately 13%, 11%, 11% and 11% of the Company's total sales, respectively. At June 30, 2019, three customers accounted for approximately 49% of the Company's accounts receivable. For the year ended June 30, 2018, two customers accounted for approximately 21% and 10% of the Company's total sales, respectively. At June 30, 2018, five customers accounted for approximately 76% of the Company's accounts receivable. For the year ended June 30, 2019, three vendors accounted for approximately 40%, 13% and 10% of the Company's total purchases, respectively. For the year ended June 30, 2018, three vendors accounted for approximately 36%, 16% and 11% of the Company's total purchases, respectively. |
Commitments and Contigencies
Commitments and Contigencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTIGENCIES | NOTE 15 - COMMITMENTS AND CONTIGENCIES Lease Commitments The Company leases four main office spaces under non-cancelable operating lease agreements through April 30, 2021. The Company also leases farmland under a non-cancelable operating lease agreement through April 26, 2041. Most of those operating lease payments are scheduled on a quarterly basis. The future minimum rental payments are as follows: Twelve months ending June 30: 2020 $ 335,983 2021 551,768 2022 213,576 2023 211,040 2024 211,040 Thereafter 3,605,260 Total $ 5,128,667 Rent expense totaled US$ 613,439 and US$ 546,098 for the years ended June 30, 2019 and 2018, respectively. In addition, the Company sublets the above-mentioned farmland to a third party under a non-cancelable operating lease agreement through May 31, 2020. The future minimum sublease rental income to be received is as follows: Twelve months ending June 30: 2020 $ 193,453 Total $ 193,453 Sublease rental income totaled US$ 211,040 and US$ 221,321 for the years ended June 30, 2019 and 2018, respectively. Legal Contingencies On May 16, 2017, Bonwick Capital Partners, LLC ("Plaintiff") commenced a lawsuit (Case No. 1:17-cv-03681-PGG) against the Company in the United States District Court for the Southern District of New York. Plaintiff alleges that the Company entered into an agreement with Plaintiff (the "Agreement"), pursuant to which Plaintiff was to provide the Company with financial advisory services in connection with the Company's initial public offering in the United States. Plaintiff alleges that the Company breached the Agreement and seeks money damages up to US$ 6 million. As the date of this report, there is no progress in this lawsuit The Company believes that these claims are without merit and intends to vigorously defend its position. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 16 - SEGMENT REPORTING ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Group's internal organizational management structure as well as information about geographical areas, business segments and major customers in for details on the Group's business segments. The Company's chief operating decision maker has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. Based on management's assessment, the Company has determined that it has three operating segments according to its major products and locations as follows: ● Developing, manufacturing and distributing of specialized fabrics, textile products and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as "Bluish Dogbane" or known in Chinese as "Luobuma" (referred to herein as Luobuma): The operating companies of this segment, namely Tenet-Jove and Tenet Huatai, specialize in Luobuma growing, development and manufacturing of relevant products, as well as purchasing Luobuma raw materials processing. This segment's operations are focused in the north region of Mainland China, mostly carried out in Beijing, Tianjin and Xinjiang City. ● Processing and distributing of traditional Chinese medicinal herbal products as well as other pharmaceutical products ("Herbal products"): The operating companies of this segment, namely AnKang Longevity Group and its subsidiaries, process more than 600 kinds of Chinese medicinal herbal products with an established domestic sales and distribution network. Ankang Longevity Group is also engaged in the retail pharmacy business and the operating revenue, which is not material, is also included in this segment. ● Planting, processing and distributing of green and organic agricultural produce as well as growing and cultivating of Chinese Yew trees ("Other agricultural products"): The operating companies of this segment, the Zhisheng Group, is engaged in the business of growing and distributing green and organic vegetables and fruits as well as providing logistics services for distributing agricultural products. This segment has been focusing its efforts on the growing and cultivating of Chinese yew trees (formally known as "taxus media"), a small evergreen tree whose branches can be used for the production of medications believed to be anti-cancer and the tree itself can be used as an ornamental indoor bonsai tree, which are known to have the effect of purifying air quality. The operations of this segment are located in the East and North regions of Mainland China, mostly carried out in Shandong Province and in Beijing where the Zhisheng Group has newly developed over 100 acres of modern greenhouses for cultivating yew trees and other plants. The following table presents summarized information by segment for the year ended June 30, 2019: For the year ended June 30, 2019 Luobuma Herbal Other agricultural products products products Total Segment revenue $ 661,778 $ 13,708,166 $ 16,850,096 $ 31,220,040 Cost of revenue and related business and sales tax 304,253 10,337,936 11,606,255 22,248,444 Gross profit 357,525 3,370,230 5,243,841 8,971,596 Gross profit % 54.0 % 24.6 % 31.1 % 28.7 % The following table presents summarized information by segment for the year ended June 30, 2018: For the year ended June 30, 2018 Bluish Herbal Other agricultural dogbane products products Total Segment revenue $ 10,884,901 $ 14,179,603 $ 18,833,114 $ 43,897,618 Cost of revenue and related business and sales tax 4,889,282 10,761,778 13,459,266 29,110,326 Gross profit 5,995,619 3,417,825 5,373,848 14,787,292 Gross profit % 55.2 % 24.1 % 28.5 % 33.7 % Total Assets as of June 30, June 30, Luobuma products $ 6,268,974 $ 11,927,928 Herbal products 45,095,019 40,904,909 Other agricultural products 32,375,480 30,267,580 $ 83,739,473 $ 83,100,417 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS On August 27, 2019, the Company entered into a short-term loan agreement with Agricultural Bank of China to borrow RMB 2.0 million (approximately $291,256) as working capital or one year, with maturity date of August 26, 2020. The loan bears a fixed interest rate of 5.595% per annum. On September 3, 2019, the Company entered into a securities purchase agreement (the "Purchase Agreement"), dated September 3, 2019, with selected investors (the "Purchasers") whereby the Company agreed to sell, and the investors agreed to purchase, up to 2,798,792 shares of common stock (the "Shares") at a purchase price of $0.52 per Share, for gross proceeds to the Company of approximately $1,455,371. These consolidated financial statements were approved by management and available for issuance on September 27, 2019, and the Company has evaluated subsequent events through this date. No subsequent events required adjustments to or disclosure in these consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, its VIEs and its VIEs' subsidiaries. The non-controlling interest represents the minority shareholders' interest in the Company's majority owned subsidiaries and VIEs. All intercompany accounts and transactions have been eliminated in consolidation. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The carrying amount of the VIEs and their subsidiaries' consolidated assets and liabilities are as follows: June 30, 2019 June 30, 2018 Current assets $ 57,328,097 $ 49,812,314 Plant and equipment, net 8,965,671 9,818,518 Other non-current assets 11,028,775 11,194,017 Total assets 77,322,543 70,824,849 Total liabilities (6,090,955 ) (5,014,036 ) Net assets $ 71,231,588 $ 65,810,813 |
Non-controlling Interests | Non-controlling Interests US GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company's balance sheet. In addition, the amounts attributable to the non-controlling interests in the net income (loss) of these entities are reported separately in the consolidated statements of income and comprehensive income. |
Risks and Uncertainties | Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic, and legal environment in the PRC, as well as by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other factors, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, changes could affect the Company's interest in these entities and its operations in the PRC. Members of the current management team own controlling interests in the Company and are also the owners of the VIEs in the PRC. The Company only controls the VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. In addition, should these agreements be challenged or litigated, they would also be subject to the laws and courts of the PRC legal system which could make enforcing the Company's rights difficult. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP 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 as well as the reported amounts of revenue and expenses during the reporting periods. Significant estimates required to be made by management include, but are not limited to, useful lives of property, plant, and equipment, and intangible assets, the recoverability of long-lived assets and the valuation of accounts receivable, deferred taxes and inventory reserves. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company previously recognized revenue from sales of Luobuma products, Chinese medicinal herbal products and agricultural products, as well as providing logistic services and other processing services to external customers. The Company recognized revenue when all of the following have occurred: (i) there was persuasive evidence of an arrangement with a customer; (ii) delivery had occurred or services had been rendered; (iii) the sales price was fixed or determinable; and (iv) the Company's collection of such fees was reasonably assured. These criteria, as related to the Company's revenue, were considered to have been met as follows: Sales of products: Revenue from the rendering of services With the adoption of ASC 606, "Revenue from Contracts with Customers," revenue is recognized when all of the following five steps are met: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; (v) recognize revenue when (or as) each performance obligation is satisfied. The Company adopted the new revenue standard beginning July 1, 2018, and adopted a modified retrospective approach upon adoption. The Company believes that its previous revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASC 606. Potential adjustments to input measures are not expected to be pervasive to the majority of the Company's contracts. There is no significant impact upon adoption of the new guidance. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposit and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of June 30, 2019 and 2018, the Company had no cash equivalents. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositors' rights over and interests in their deposited money. PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Company monitors the banks utilized and has not experienced any problems. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts, as necessary. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, the customers' historical payment history, their current credit-worthiness and current economic trends. The fair value of long-term receivables is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. As of June 30, 2019 and 2018, the allowance for doubtful accounts was US$ 4,323,141 and US$ 232,355, respectively. Accounts are written off against the allowance after efforts at collection prove unsuccessful. |
Inventories | Inventories Inventories, which are stated at the lower of cost or net realizable value, consist of raw materials, work-in-progress, and finished goods related to the Company's products. Cost is determined using the first in first out ("FIFO") method. Agricultural products that the Company farms are recorded at cost, which includes direct costs such as seed selection, fertilizer, labor cost and contract fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayments of farmland leases and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to the harvested crops costs when they are sold. The Company periodically evaluates its inventory and records an inventory reserve for certain inventories that may not be saleable or whose cost exceeds net realizable value. |
Advances to Suppliers | Advances to Suppliers Advances to suppliers consist of payments to suppliers for materials that have not been received. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired. As of June 30, 2019 and 2018, the Company had an allowance for uncollectible advances to suppliers of US$ 431,646 and US$ 13,819, respectively. |
Business Acquisitions | Business Acquisitions Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a bargain gain from the purchase. The acquiree's results are included in the Company's consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values on the date acquired and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the net assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed, and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit's goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company's reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for additions, major renewals and betterments are capitalized, and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value, if any, over an asset's estimated useful life. Farmland leasehold improvements are amortized over the shorter of lease term or estimated useful lives of the underlying assets. The estimated useful lives of the Company's property and equipment are as follows: Estimated Buildings 20-50 years Machinery equipment 5-10 years Motor vehicles 5-10 years Office equipment 5-10 years Farmland leasehold improvements 12-18 years |
Land Use Rights | Land Use Rights According to Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 50 years, based on the term of the land use rights. |
Long-lived Assets | Long-lived Assets Finite-lived assets and intangibles are reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset's carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property, plant and equipment, land use rights, investments and long-term prepaid leases. For the years ended June 30, 2019 and 2018, the Company did not recognize any impairment of its long-lived assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the provisions of ASC 820, "Fair Value Measurements and Disclosures." ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability. The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realize The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This ASC also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not have any uncertain tax positions at June 30, 2019 and 2018. The Company has not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries at June 30, 2019, as it is the Company's policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. The statute of limitations for the Company's U.S. federal income tax returns and certain state income tax returns remains open for tax year 2015 and thereafter. As of June 30, 2019, the tax years ended June 30, 2014 through June 30, 2019 for the Company's People's Republic of China ("PRC") subsidiaries remain open for statutory examination by PRC tax authorities. On December 22, 2017, the "Tax Cuts and Jobs Act" ("The Act") was enacted. Under the provisions of The Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a June 30 fiscal year end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018, and 21% for subsequent fiscal years. Additionally, The Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused us to re-measure the Company's income tax liability and record an estimated income tax expense of US$ 744,766 for the year ended June 30, 2018. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, additional work is necessary to do a more detailed analysis of the Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight-year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight). |
Value Added Tax | Value Added Tax Sales revenue represents the invoiced value of goods, net of a Value-Added Tax ("VAT"). Before May 1, 2018, all of the Company's products that were sold in the PRC were subject to a Chinese value-added tax at a rate of 17% of the gross sales price, after May 1, 2018, the Company subject a tax rate of 16%, and from April 1, 2019 onwards, the tax rate was further reduced to 13% based on the new Chinese tax law. This VAT may be offset by VAT paid by the Company is on raw materials and other materials included in the cost of producing finished products or acquiring finished products. The Company records a VAT payable or VAT receivable in the accompanying consolidated financial statements. |
Foreign Currency Translation | Foreign Currency Translation The Company uses the United States dollar ("U.S. dollars", "USD" or "US$") for financial reporting purposes. The Company's subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi ("RMB"), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. 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. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive income (loss). The balance sheet amounts, with the exception of equity, at June 30, 2019 and 2018 were translated at 1 RMB to 0.1456 USD and at 1 RMB to 0.1511 USD, respectively. The average translation rates applied to the income and cash flow statement amounts for the years ended June 30, 2019 and 2018 were at 1 RMB to 0.1466 USD and at 1 RMB to 0.1537 USD, respectively. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. |
Equity Investment | Equity Investment An investment in which the Company has the ability to exercise significant influence, but does not have a controlling interest, is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. |
Earnings per Share | Earnings per Share The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., outstanding convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There was no anti-dilutive effect for the years ended June 30, 2019 and 2018. |
New Accounting Pronouncements | New Accounting Pronouncements In September 2017, the FASB issued ASU 2017-13, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842). The main objective of this pronouncement is to clarify the effective date of the adoption of ASC Topic 606 and ASC Topic 842 and the definition of public business entity as stipulated in ASU 2014-09 and ASU 2016-02. ASU 2014-09 provides that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities are required to adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. ASU 2016-12 requires that "a public business entity and certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. All other entities are required to adopt ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020". ASU 2017-13 clarifies that the SEC would not object to certain public business entities electing to use the non-public business entities effective dates for applying ASC 606 and ASC 842. ASU 2017-13, however, limits such election to certain public business entities that "otherwise would not meet the definition of a public business entity except for a requirement to include or inclusion of its financial statements or financial information in another entity's filings with the SEC". The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In June 2018, the FASB issued ASU No. 2018-07, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," or ASU 2018-07. ASU 2018-07 simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to Accounting Standards Codification ("ASC") 718 upon vesting which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In July 2018, the FASB issued ASU No. 2018-10, "Codification Improvements to Topic 842, Leases," which clarifies how to apply certain aspects of the new leases standard. This ASU addresses the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. This ASU has the same effective date and transition requirements as the new leases standard, which is effective for annual periods beginning after December 15, 2018. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements" which provides a new transition method and a practical expedient for separating components of a contract. This ASU is intended to reduce costs and ease the implementation of the new leasing standard for financial statement preparers. The effective date and transition requirements for the amendments related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. In December 2018 FASB issued ASU 2018-20, Leases (Topic) 842: Narrow-scope Improvements for Lessors which provides for certain policy elections and changes lessor accounting for sales and similar taxes and certain lessor costs. In March 2019 the FASB issued ASU 2019-01, Leases Codification Improvements Codification improvements to Topic 842 (leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The Company has evaluated the impact of the new standard on its consolidated financial statements and the guidance does not have a material impact on the Company. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement," to improve the effectiveness of disclosures in the notes to financial statements related to recurring or nonrecurring fair value measurements by removing amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, policies for timing of transfers between different levels for fair value measurements, and the valuation processes for Level 3 fair value measurements. The new standard requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," (ASU 2018-15), to align the requirements for capitalizing implementation costs in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs relating to internal-use software. The update requires entities in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset and which costs to expense. ASU 2018-15 is effective for the Corporation on January 1, 2020 and may be applied using either the retrospective or prospective approach. Early adoption is permitted. The Company expects that the adoption of this ASU will have a material impact on its financial statements. In October 2018, the FASB issued ASU No. 2018-17, "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities". The new standard changes how entities evaluate decision-making fees under the variable interest entity guidance. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. The standard should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the period of adoption. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. In November 2018, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses." ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Accounting Standard Codification ("ASC") 842, Leases. The Company expects that the adoption of this ASU will not have a material impact on its financial statements. The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of the VIEs and their subsidiaries' consolidated assets and liabilities | June 30, 2019 June 30, 2018 Current assets $ 57,328,097 $ 49,812,314 Plant and equipment, net 8,965,671 9,818,518 Other non-current assets 11,028,775 11,194,017 Total assets 77,322,543 70,824,849 Total liabilities (6,090,955 ) (5,014,036 ) Net assets $ 71,231,588 $ 65,810,813 |
Schedule of estimated useful lives of property and equipment | Estimated Buildings 20-50 years Machinery equipment 5-10 years Motor vehicles 5-10 years Office equipment 5-10 years Farmland leasehold improvements 12-18 years |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, 2019 June 30, 2018 Raw materials $ 974,639 $ 1,225,830 Work-in-process 651,769 766,119 Finished goods 1,533,318 1,355,774 Less: inventory reserve (944,167 ) (983,165 ) Total $ 2,215,559 $ 2,364,558 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | June 30, 2019 June 30, 2018 Buildings $ 11,994,407 $ 12,433,157 Building improvements 79,628 82,599 Machinery and equipment 930,109 922,065 Motor vehicles 81,541 84,583 Construction in progress 78,407 40,524 Office equipment 219,605 179,624 Farmland leasehold improvements 3,062,410 3,176,677 16,446,107 16,919,229 Less: accumulated depreciation and amortization (5,778,377 ) (5,221,925 ) Property and equipment, net $ 10,667,730 $ 11,697,304 |
Schedule of farmland leasehold improvements | June 30, 2019 June 30, 2018 Blueberry farmland leasehold improvements $ 2,352,679 $ 2,440,465 Yew tree planting base reconstruction 263,587 273,422 Greenhouse renovation 446,144 462,790 Total farmland leasehold improvements $ 3,062,410 $ 3,176,677 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of land use rights | June 30, 2019 June 30, 2018 Land use rights $ 1,619,820 $ 1,680,259 Less: accumulated amortization (355,511 ) (335,171 ) Land use rights, net $ 1,264,309 $ 1,345,088 |
Schedule of estimated future amortization expenses | Twelve months ending June 30: 2020 $ 32,396 2021 32,396 2022 32,396 2023 32,396 2024 32,396 Thereafter 1,102,329 Total $ 1,264,309 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated entities | June 30, 2019 June 30, 2018 Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) $ 3,717,277 $ 3,439,793 Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. 822,058 736,898 Zhejiang Zhen'Ai Network Warehousing Services Co., Ltd. 2,111,609 2,190,399 Original Lab Inc. - 200,000 Total $ 6,650,944 $ 6,567,090 |
Schedule of financial information of unconsolidated entities | June 30, 2019 June 30, Current assets $ 35,675,858 $ 38,079,702 Noncurrent assets 241,580 291,267 Current liabilities 26,668,485 29,862,664 For the years ended 2019 2018 Net sales $ 32,023,745 $ 36,788,909 Gross profit 3,902,665 4,720,094 Income from operations 1,120,351 1,644,747 Net income 1,053,357 1,538,977 |
Prepaid Leases (Tables)
Prepaid Leases (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Prepaid Leases [Abstract] | |
Schedule of future amortization expense | Twelve months ending June 30: 2020 $ 459,907 2021 459,906 2022 439,033 2023 209,426 2024 209,426 Thereafter 1,079,646 Total $ 2,857,344 |
Short-Term Loans (Tables)
Short-Term Loans (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term loans | Lender June 30, Maturity Int. MY Bank-a 7,282 2019-8-29 * 15.80 % Agricultural Bank of China-b 291,256 2019-8-12 * 5.66 % Agricultural Bank of China-b 655,327 2019-11-13 3.92 % Agricultural Bank of China-c 1,456,282 2020-2-25 5.66 % Total $ 2,410,147 Lender June 30, Maturity Int. MY Bank-a 50,354 2018-10-20 * 11.84 % Agricultural Bank of China-b 302,124 2018-7-3 * 5.22 % Agricultural Bank of China-b 755,310 2018-10-12 * 5.66 % Agricultural Bank of China-b 1,208,495 2019-1-30 * 5.66 % Total $ 2,316,283 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of estimated fair values of net assets acquired and liabilities assumed | Accounts receivable, net 27,028 Inventory 58,119 Other current assets 184,739 Distribution rights 1,074,736 Property, plant and equipment 14,069 Advance from customers (78,263 ) Tax payable (16,893 ) Deferred tax liabilities (268,684 ) Salary payable (25,120 ) Accrued liabilities and other current liabilities (994,724 ) Non-controlling interest 1,426 Goodwill 2,040,280 Total purchase price for acquisition, net of US$ 22,082 of cash $ 2,016,713 |
Schedule of estimated useful lives | Preliminary Weighted Average Useful Life Distribution rights $ 1,074,736 (a) (a) The distribution rights with no expiration date has been determined to have an indefinite life. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of outstanding amounts due from related parties | June 30, June 30, Yang Bin $ 43,688 $ 151,063 Zhang Xin - 93,658 Chang Song - 59,669 Beijing Huiyinansheng Asset Management Co., Ltd (a.) 21,873 22,690 Beijing Shengguang Tianyi Clothing Co., LTD (b.) 63,911 - Wang Qiwei 58,981 61,181 $ 188,453 $ 388,261 a. This Company is wholly owned by one of the Company's senior management. b. This Company is wholly owned by one of the Company's shareholders. |
Schedule of due to related parties | June 30, 2019 June 30, Wu Yang $ 93,275 $ 96,755 Wang Sai 8,738 - Chen Jiping 989 - Zhang Yuying 2,913 - Zhao Min 128,585 100,862 $ 234,500 $ 197,617 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax expense | For the years ended 2019 2018 Current income tax provision $ 958,083 $ 2,151,725 Deferred income tax benefit (170,483 ) (28,138 ) Total $ 787,600 $ 2,123,587 |
Schedule of financial reporting basis and tax basis of assets and liabilities | June 30, June 30, Deferred tax assets: Allowance for doubtful accounts $ 197,962 $ 22,225 Inventory reserve 228,893 244,832 Net operating loss carry-forwards 519,671 539,061 Total 946,526 806,118 Valuation allowance (519,671 ) (539,061 ) Total deferred tax assets 426,855 267,057 Deferred tax liability: Distribution rights (268,684 ) (278,709 ) Total deferred tax liability (268,684 ) (278,709 ) Deferred tax assets (liability), net $ 158,171 $ (11,652 ) |
Schedule of movement of valuation allowance | June 30, June 30, Beginning balance $ 539,061 $ 111,882 Current year addition - 424,517 Exchange difference (19,390 ) 2,662 Ending balance $ 519,671 $ 539,061 |
Schedule of taxes payable | June 30, June 30, Income tax payable $ 3,425,080 $ 3,106,642 Value added tax payable 536,486 562,960 Business tax and other taxes payable 5,909 7,207 Total 3,967,475 3,676,809 Less: current portion 3,341,872 2,991,624 Income tax payable - noncurrent portion $ 625,603 $ 685,185 |
Commitments and Contigencies (T
Commitments and Contigencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of future minimum rental payments | Twelve months ending June 30: 2020 $ 335,983 2021 551,768 2022 213,576 2023 211,040 2024 211,040 Thereafter 3,605,260 Total $ 5,128,667 |
Summary of future minimum sublease rental income | Twelve months ending June 30: 2020 $ 193,453 Total $ 193,453 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of information by segment | For the year ended June 30, 2019 Luobuma Herbal Other agricultural products products products Total Segment revenue $ 661,778 $ 13,708,166 $ 16,850,096 $ 31,220,040 Cost of revenue and related business and sales tax 304,253 10,337,936 11,606,255 22,248,444 Gross profit 357,525 3,370,230 5,243,841 8,971,596 Gross profit % 54.0 % 24.6 % 31.1 % 28.7 % For the year ended June 30, 2018 Bluish Herbal Other agricultural dogbane products products Total Segment revenue $ 10,884,901 $ 14,179,603 $ 18,833,114 $ 43,897,618 Cost of revenue and related business and sales tax 4,889,282 10,761,778 13,459,266 29,110,326 Gross profit 5,995,619 3,417,825 5,373,848 14,787,292 Gross profit % 55.2 % 24.1 % 28.5 % 33.7 % June 30, June 30, Luobuma products $ 6,268,974 $ 11,927,928 Herbal products 45,095,019 40,904,909 Other agricultural products 32,375,480 30,267,580 $ 83,739,473 $ 83,100,417 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | Mar. 13, 2019 | May 02, 2017 | Dec. 10, 2016USD ($) | Jun. 30, 2019 | Nov. 03, 2017CNY (¥) | Oct. 26, 2017 | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | May 23, 2017USD ($) | May 23, 2017CNY (¥) | May 22, 2017USD ($) | May 22, 2017CNY (¥) | Apr. 28, 2017USD ($) | Apr. 28, 2017CNY (¥) | Apr. 19, 2017USD ($) | Apr. 19, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 12, 2016 | Dec. 10, 2016CNY (¥) | Jul. 14, 2006 | Dec. 30, 2004 |
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Percentage of interest ownership | 49.00% | 100.00% | ||||||||||||||||||||
Business acquisition interest, percentage | 51.00% | |||||||||||||||||||||
RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Contractual rights purchase amount | ¥ 20,000,000 | |||||||||||||||||||||
Tenet-Jove [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Majority interest ownership percentage | 100.00% | |||||||||||||||||||||
Xinjiang Taihe [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | $ | $ 1,502,650 | |||||||||||||||||||||
Xinjiang Taihe [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 10,000,000 | |||||||||||||||||||||
Runze [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | $ | $ 1,502,650 | |||||||||||||||||||||
Runze [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 10,000,000 | |||||||||||||||||||||
Tianxintongye [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | $ | $ 1,451,615 | |||||||||||||||||||||
Tianxintongye [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 10,000,000 | |||||||||||||||||||||
Tianhuihechuang [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | $ | $ 1,452,294 | |||||||||||||||||||||
Tianhuihechuang [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 10,000,000 | |||||||||||||||||||||
Tianzhuo [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | $ | $ 1,450,233 | |||||||||||||||||||||
Tianzhuo [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 10,000,000 | |||||||||||||||||||||
Tiankunrunze [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Percentage of interest ownership | 65.00% | 65.00% | ||||||||||||||||||||
Registered capital | $ | $ 7,262,000 | |||||||||||||||||||||
Tiankunrunze [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 50,000,000 | |||||||||||||||||||||
Tenet Huatai Technological Development Co Ltd [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Percentage of interest ownership | 90.00% | |||||||||||||||||||||
Tianjin Tajite [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Majority interest ownership percentage | 51.00% | |||||||||||||||||||||
Registered capital | $ | $ 2,100,000 | |||||||||||||||||||||
Equity interest acquire, cash consideration amount | $ | $ 2,100,000 | |||||||||||||||||||||
Description of business combination | Tenet-Jove would acquire a 51% equity interest in Tianjin Tajite for cash consideration of RMB 14,000,000 (approximately US$ 2.1 million). On December 25, 2016, the Company paid the full amount as the deposit to secure the deal. In May, 2017, the Company amended the agreement that required Tianjin Tajite to satisfy certain preconditions related to product introductions into China. On October 26, 2017, the Company completed the acquisition for 51% of the shares in Tianjin Tajite. | |||||||||||||||||||||
Business acquisition interest, percentage | 51.00% | 51.00% | ||||||||||||||||||||
Tianjin Tajite [Member] | RMB [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Registered capital | ¥ 14,000,000 | |||||||||||||||||||||
Equity interest acquire, cash consideration amount | ¥ 14,000,000 | |||||||||||||||||||||
Biorefinery Engineering Technology Co., Ltd [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Description of business combination | Pursuant to the Strategic Cooperation Agreement the two parties agreed to establish the ICAITR, the Company and Biorefinery own 80% and 20% of the equity interests of ICAITR, respectively. Shineco invested RMB 5.0 million (US$ 737,745) as the registered capital, and Biorefinery will invest a technology patent named "Steam Explosion Degumming". | |||||||||||||||||||||
Beijing Tenjove Newhemp Biotechnology Co., Ltd [Member] | ||||||||||||||||||||||
Organization and Nature of Operations (Textual) | ||||||||||||||||||||||
Description of business combination | Tenet-Jove established Beijing Tenjove Newhemp Biotechnology Co., Ltd. ("TNB") with registered capital of RMB 10.0 million (US$ 1,502,650). TNB became a wholly-owned subsidiary of Tenet-Jove. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 57,328,097 | $ 49,812,314 |
Other non-current assets | 11,028,775 | 11,194,017 |
Total assets | 77,322,543 | 70,824,849 |
Total liabilities | (6,090,955) | (5,014,036) |
Net assets | 71,231,588 | 65,810,813 |
Plant and Equipment, Net [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 8,965,671 | $ 9,818,518 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Jun. 30, 2019 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 20 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 50 years |
Machinery equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Machinery equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Motor vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Motor vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Farmland leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 12 years |
Farmland leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 18 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) | Dec. 22, 2017 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful life | 50 years | |||
Allowance for doubtful accounts | $ 232,355 | $ 4,323,141 | $ 232,355 | |
Advances to suppliers | $ 13,819 | $ 431,646 | $ 13,819 | |
Foreign currency translation adjustment, description | The exception of equity, at June 30, 2019 and 2018 were translated at 1 RMB to 0.1456 USD and at 1 RMB to 0.1511 USD, respectively. The average translation rates applied to the income and cash flow statement amounts for the years ended June 30, 2019 and 2018 were at 1 RMB to 0.1466 USD and at 1 RMB to 0.1537 USD, respectively. | |||
U.S. statutory federal rate | 28.00% | 21.00% | ||
Estimated income tax expense | $ 787,600 | $ 2,123,587 | ||
Value added tax rate description | Before May 1, 2018, all of the Company's products that were sold in the PRC were subject to a Chinese value-added tax at a rate of 17% of the gross sales price, after May 1, 2018, the Company subject a tax rate of 16%, and from April 1, 2019 onwards, the tax rate was further reduced to 13% based on the new Chinese tax law. | |||
Income tax expense | $ 744,766 | |||
Description of income taxes percentage | The transition tax over an eight-year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight). | |||
Land Use Rights [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful life | 50 years | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
U.S. corporate tax rate | 21.00% | |||
Percentage of voting stock | 20.00% | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
U.S. corporate tax rate | 35.00% | |||
Percentage of voting stock | 50.00% |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 974,639 | $ 1,225,830 |
Work-in-process | 651,769 | 766,119 |
Finished goods | 1,533,318 | 1,355,774 |
Less: inventory reserve | (944,167) | (983,165) |
Total | $ 2,215,559 | $ 2,364,558 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,446,107 | $ 16,919,229 |
Less: accumulated depreciation and amortization | (5,778,377) | (5,221,925) |
Property and equipment, net | 10,667,730 | 11,697,304 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,994,407 | 12,433,157 |
Building improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 79,628 | 82,599 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 930,109 | 922,065 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 81,541 | 84,583 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 78,407 | 40,524 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 219,605 | 179,624 |
Farmland leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,062,410 | $ 3,176,677 |
Property and Equipment (Detai_2
Property and Equipment (Details 1) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | $ 3,062,410 | $ 3,176,677 |
Blueberry farmland leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 2,352,679 | 2,440,465 |
Yew Tree Planting Base Reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 263,587 | 273,422 |
Greenhouse Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | $ 446,144 | $ 462,790 |
Property and Equipment (Detai_3
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property and Equipment (Textual) | ||
Depreciation and amortization expense | $ 753,087 | $ 658,268 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Land use rights | $ 1,619,820 | $ 1,680,259 |
Less: accumulated amortization | (355,511) | (335,171) |
Land use rights, net | $ 1,264,309 | $ 1,345,088 |
Land Use Rights (Details 1)
Land Use Rights (Details 1) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Twelve months ending December 31: | ||
2020 | $ 32,396 | |
2021 | 32,396 | |
2022 | 32,396 | |
2023 | 32,396 | |
2024 | 32,396 | |
Thereafter | 1,102,329 | |
Total | $ 1,264,309 | $ 1,345,088 |
Land Use Rights (Details Textua
Land Use Rights (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Land Use Rights (Textual) | ||
Estimated useful life | 50 years | |
Amortization expense | $ 38,447 | $ 39,964 |
Land Use Rights [Member] | ||
Land Use Rights (Textual) | ||
Estimated useful life | 50 years |
Distribution Rights (Details Te
Distribution Rights (Details Textual) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018USD ($) |
Distribution Rights (Textual) | |||
Distribution right | $ | $ 1,074,736 | $ 1,114,837 | |
RMB [Member] | |||
Distribution Rights (Textual) | |||
Distribution right | ¥ | ¥ 7,380,000 |
Investments (Details)
Investments (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 21, 2016 |
Schedule of Equity Method Investments [Line Items] | |||
Total | $ 6,650,944 | $ 6,567,090 | |
Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | 3,717,277 | 3,439,793 | |
Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | 822,058 | 736,898 | |
Zhejiang Zhen'Ai Network Warehousing Services Co., Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | 2,111,609 | 2,190,399 | |
Original Lab Inc. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | $ 200,000 | $ 200,000 |
Investments (Details 1)
Investments (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 35,675,858 | $ 38,079,702 |
Noncurrent assets | 241,580 | 291,267 |
Current liabilities | 26,668,485 | 29,862,664 |
Net sales | 32,023,745 | 36,788,909 |
Gross profit | 3,902,665 | 4,720,094 |
Income from operations | 1,120,351 | 1,644,747 |
Net income | $ 1,053,357 | $ 1,538,977 |
Investments (Details Textual)
Investments (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 21, 2013USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019CNY (¥) | Nov. 21, 2016USD ($) | Oct. 21, 2013CNY (¥) | Jul. 14, 2006 | |
Investments (Textual) | ||||||||
Investor payments | $ 6,567,090 | $ 6,650,944 | $ 6,567,090 | |||||
Percentage of ownership interest | 49.00% | 49.00% | 100.00% | |||||
Recorded income | $ 516,145 | 907,794 | ||||||
Income from equity method investments | 153,695 | 153,695 | ||||||
Profit sharing on income, percentage | 49.00% | |||||||
Ankang Longevity Group [Member] | ||||||||
Investments (Textual) | ||||||||
Investor payments | $ 1,000,000 | |||||||
Recorded income | $ 516,144 | 754,099 | ||||||
Ankang Longevity Group [Member] | RMB [Member] | ||||||||
Investments (Textual) | ||||||||
Investor payments | ¥ | ¥ 6,800,000 | |||||||
Tiancang Systematic Warehousing Project [Member] | ||||||||
Investments (Textual) | ||||||||
Investor payments | $ 2,200,000 | |||||||
Profit sharing on income, percentage | 29.00% | |||||||
Deductible statutory reserve, percentage | 30.00% | |||||||
Employee welfare fund, percentage | 10.00% | |||||||
Statutory reserve, percentage | 30.00% | |||||||
Tiancang Systematic Warehousing Project [Member] | RMB [Member] | ||||||||
Investments (Textual) | ||||||||
Investor payments | ¥ | ¥ 14,500,000 | |||||||
Shaanxi Pharmaceutical Group [Member] | Ankang Longevity Group [Member] | ||||||||
Investments (Textual) | ||||||||
Percentage of purchase distribution | 7.00% | |||||||
Income from equity method investments | $ 1,038,931 | 1,377,108 | ||||||
Sunsimiao Drugstores [Member] | Ankang Longevity Group [Member] | ||||||||
Investments (Textual) | ||||||||
Percentage of ownership interest | 49.00% | 49.00% | ||||||
Original Lab Inc. [Member] | ||||||||
Investments (Textual) | ||||||||
Investor payments | $ 200,000 | $ 200,000 | $ 200,000 |
Prepaid Leases (Details)
Prepaid Leases (Details) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Twelve months ending December 31: | |
2020 | $ 459,907 |
2021 | 459,906 |
2022 | 439,033 |
2023 | 209,426 |
2024 | 209,426 |
Thereafter | 1,079,646 |
Total | $ 2,857,344 |
Prepaid Leases (Details Textual
Prepaid Leases (Details Textual) | 12 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | |
Prepaid Leases (Textual) | ||
Aggregate lease payments | $ | $ 5,300,000 | |
RMB [Member] | ||
Prepaid Leases (Textual) | ||
Aggregate lease payments | ¥ | ¥ 36,700,000 | |
Maximum [Member] | ||
Prepaid Leases (Textual) | ||
Lease term | 24 years | 24 years |
Minimum [Member] | ||
Prepaid Leases (Textual) | ||
Lease term | 5 years | 5 years |
Short-Term Loans (Details)
Short-Term Loans (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | ||||
Short-term loans, Total | $ 2,410,147 | $ 2,316,283 | |||
My Bank [Member] | |||||
Short-term loans, Total | [1] | $ 7,282 | $ 50,354 | ||
Maturity Date | [1],[2] | Aug. 29, 2019 | Oct. 20, 2018 | ||
Int. Rate/Year | [1] | 15.80% | 11.84% | ||
Agricultural Bank of China One [Member] | |||||
Short-term loans, Total | [3] | $ 291,256 | $ 302,124 | ||
Maturity Date | [2],[3] | Aug. 12, 2019 | Jul. 3, 2018 | ||
Int. Rate/Year | [3] | 5.66% | 5.22% | ||
Agricultural Bank of China Two [Member] | |||||
Short-term loans, Total | [3] | $ 655,327 | $ 755,310 | ||
Maturity Date | [3] | Nov. 13, 2019 | Oct. 12, 2018 | [2] | |
Int. Rate/Year | [3] | 3.92% | 5.66% | ||
Agricultural Bank of China Three [Member] | |||||
Short-term loans, Total | $ 1,456,282 | [4] | $ 1,208,495 | [3] | |
Maturity Date | Feb. 25, 2020 | [4] | Jan. 30, 2019 | [2],[3] | |
Int. Rate/Year | 5.66% | [4] | 5.66% | [3] | |
[1] | Not collateralized or guaranteed. | ||||
[2] | The Company repaid the loan in full on maturity date. | ||||
[3] | Guaranteed by a commercial credit guaranty company, unrelated to the Company and also by Jiping Chen, a shareholder of the Company. | ||||
[4] | Collateralized by the building owned by Xiaoyan Chen and Jing Chen, who are both related parties of the Company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Group. Jing Chen is the sister of the Xiaoyan Chen but not a shareholder of Ankang Longevity Group. |
Short-Term Loans (Details Textu
Short-Term Loans (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Short-Term Loans (Textual) | ||
Interest expense | $ 115,384 | $ 133,930 |
Weighted average interest rate | 5.42% | 5.64% |
Acquisition (Details)
Acquisition (Details) - Tianjin Tajite [Member] | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | |
Accounts receivable, net | $ 27,028 |
Inventory | 58,119 |
Other current assets | 184,739 |
Distribution rights | 1,074,736 |
Property, plant and equipment | 14,069 |
Advance from customers | (78,263) |
Tax payable | (16,893) |
Deferred tax liabilities | (268,684) |
Salary payable | (25,120) |
Accrued liabilities and other current liabilities | (994,724) |
Non-controlling interest | 1,426 |
Goodwill | 2,040,280 |
Total purchase price for acquisition, net of US$ 22,082 of cash | $ 2,016,713 |
Acquisition (Details 1)
Acquisition (Details 1) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Business Acquisition [Line Items] | |||
Preliminary Fair Value | $ 1,074,736 | $ 1,114,837 | |
Distribution Rights [Member] | Tianjin Tajite [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary Fair Value | $ 1,074,736 | ||
Weighted Average Useful Life (in Years) | [1] | 0 years | |
[1] | The distribution rights with no expiration date has been determined to have an indefinite life. |
Acquisition (Details Textual)
Acquisition (Details Textual) - Tianjin Tajite [Member] | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 12, 2016 | |
Acquisition (Textual) | ||||
Acquire equity interest percentage | 51.00% | |||
Payment of acquisition | $ 2,100,000 | |||
Total purchase price for acquisition, net of cash | $ 22,082 | |||
RMB [Member] | ||||
Acquisition (Textual) | ||||
Payment of acquisition | ¥ | ¥ 14,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 188,453 | $ 388,261 | |
Yang Bin [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 43,688 | 151,063 | |
Zhang Xin [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 93,658 | ||
Chang Song [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 59,669 | ||
Beijing Huiyinansheng Asset Management Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [1] | 21,873 | 22,690 |
Beijing Shengguang Tianyi Clothing Co., LTD [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [2] | 63,911 | |
Wang Qiwei [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 58,981 | $ 61,181 | |
[1] | This Company is wholly owned by one of the Company's senior management. | ||
[2] | This Company is wholly owned by one of the Company's shareholders. |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 234,500 | $ 197,617 |
Wu Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 93,275 | 96,755 |
Wang Sai [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 8,738 | |
Chen Jiping [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 989 | |
Zhang Yuying [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,913 | |
Zhao Min [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 128,585 | $ 100,862 |
Related Party Transactions (D_3
Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transactions (Textual) | ||
Due to related parties | $ 234,500 | $ 197,617 |
Shaanxi Pharmaceutical Group [Member] | ||
Related Party Transactions (Textual) | ||
Sales to related party | 3,405,982 | 3,285,311 |
Accounts receivable due from related parties | $ 2,706,111 | $ 1,526,351 |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current income tax provision | $ 958,083 | $ 2,151,725 |
Deferred income tax benefit | (170,483) | (28,138) |
Total | $ 787,600 | $ 2,123,587 |
Taxes (Details 1)
Taxes (Details 1) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | |||
Allowance for doubtful accounts | $ 197,962 | $ 22,225 | |
Inventory reserve | 228,893 | 244,832 | |
Net operating loss carry-forwards | 519,671 | 539,061 | |
Total | 946,526 | 806,118 | |
Valuation allowance | (519,671) | (539,061) | $ (111,882) |
Total deferred tax assets | 426,855 | 267,057 | |
Deferred tax liability: | |||
Distribution rights | (268,684) | (278,709) | |
Total deferred tax liability | (268,684) | (278,709) | |
Deferred tax assets (liability), net | $ 11,652 |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 539,061 | $ 111,882 |
Current year addition | 424,517 | |
Exchange difference | (19,390) | 2,662 |
Ending balance | $ 519,671 | $ 539,061 |
Taxes (Details 3)
Taxes (Details 3) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 3,425,080 | $ 3,106,642 |
Value added tax payable | 536,486 | 562,960 |
Business tax and other taxes payable | 5,909 | 7,207 |
Total | 3,967,475 | 3,676,809 |
Less: current portion | 3,341,872 | 2,991,624 |
Income tax payable - noncurrent portion | $ 625,603 | $ 685,185 |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Taxes (Textual) | ||
Income taxes percentage, description | The Company elects to pay the transition tax over an eight year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight). | |
Estimated income tax expense | $ 744,766 | |
Value added tax rate, description | The applicable VAT rate is 17% before May 1, 2018 for products sold in the PRC and decreased to 16% thereafter. | |
Statutory rate | 25.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | May 08, 2019 | Sep. 27, 2018 | Jan. 23, 2018 | Sep. 28, 2016 | Jun. 30, 2019 | Jun. 30, 2018 |
Shareholders' Equity (Textual) | ||||||
Statutory surplus reserve percentage | 10.00% | |||||
Registered capital reserve | 50.00% | |||||
Statutory reserves | $ 4,198,107 | $ 4,085,819 | ||||
Proceeds from initial public offering, net of offering costs | ||||||
Net proceeds | $ 1,589,892 | $ 434,000 | ||||
Common stock purchase agreement description | The Company had the right, from time to time in its sole discretion during the 24-month term of the Purchase Agreement, to direct IFG Fund to purchase up to a total of US$ 15,000,000 worth of shares of common stock. As consideration for IFG Fund to enter into the Purchase Agreement, the Company agreed to issue 200,000 shares of the Company's Common Stock (the "Commitment Shares") to IFG Fund. The Purchase Shares were offered in an indirect primary offering consisting of an equity line of credit, in accordance with the terms and conditions of the Purchase Agreement. The total number of Purchase Shares would not exceed 4,000,000. On January 23, 2018, the Company issued the Commitment Shares to IFG Fund. On July 3, 2018, the Company and IFG Fund entered into a termination agreement, dated July 3, 2018 (the "Termination Agreement") effective as of July 3, 2018, to terminate the Purchase Agreement and the Registration Rights Agreement. IFG retained the 200,000 commitment shares which were valued at US$ 434,000 and written off during the three months ended September 30, 2018. | |||||
Securities and Exchange Commission [Member] | ||||||
Shareholders' Equity (Textual) | ||||||
Proceeds from initial public offering, net of offering costs | $ 20,000,000 | |||||
Additional public offering | $ 20,000,000 | |||||
Net profits, description | Tenet-Jove will distribute to token holders the greater of (A) 5% of the total amount of proceeds raised by Tenet-Jove in the offerings, or (B) 40% of net profits generated from the Operations. | |||||
IPO [Member] | ||||||
Shareholders' Equity (Textual) | ||||||
Initial public offering, share | 1,637,700 | 1,713,190 | ||||
Proceeds from initial public offering, net of offering costs | $ 1,589,892 | $ 5,400,000 | ||||
Common stock at a price | $ 1 | $ 4.50 | ||||
Net proceeds | $ 1,637,700 | $ 7,700,000 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Concentration and Risks (Textual) | |||
Cash balance | $ 35,330,676 | $ 31,487,053 | $ 23,154,551 |
Total sales [Member] | Customer Four [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 11.00% | ||
Total sales [Member] | Customer One [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 13.00% | 21.00% | |
Total sales [Member] | Customer Two [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 11.00% | 10.00% | |
Total sales [Member] | Customer Three [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 11.00% | ||
Accounts Receivable [Member] | Customer One [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 49.00% | 76.00% | |
Accounts Receivable [Member] | Customer Two [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 49.00% | 76.00% | |
Accounts Receivable [Member] | Customer Three [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 49.00% | 76.00% | |
Accounts Receivable [Member] | Customer Four [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 76.00% | ||
Accounts Receivable [Member] | Customer Five [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 76.00% | ||
Total purchases [Member] | Vendor One [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 40.00% | 36.00% | |
Total purchases [Member] | Vendor Two [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 13.00% | 16.00% | |
Total purchases [Member] | Vendor Three [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 10.00% | 11.00% | |
China [Member] | |||
Concentration and Risks (Textual) | |||
Cash balance | $ 35,311,106 | $ 31,423,686 | |
China [Member] | Assets, Total [Member] | |||
Concentration and Risks (Textual) | |||
Concentration risk, percentage | 100.00% | 100.00% |
Commitments and Contigencies (D
Commitments and Contigencies (Details) | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 335,983 |
2021 | 551,768 |
2022 | 213,576 |
2023 | 211,040 |
2024 | 211,040 |
Thereafter | 3,605,260 |
Total | $ 5,128,667 |
Commitments and Contigencies _2
Commitments and Contigencies (Details 1) | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 193,453 |
Total | $ 193,453 |
Commitments and Contigencies _3
Commitments and Contigencies (Details Textual) - USD ($) | May 16, 2017 | Jun. 30, 2019 | Jun. 30, 2018 |
Commitments and Contigencies (Textual) | |||
Rent expense | $ 613,439 | $ 546,098 | |
Sublease rental income | $ 211,040 | $ 221,321 | |
Damages amount | $ 6,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 31,220,040 | $ 43,897,618 |
Cost of revenue and related business and sales tax | 22,248,444 | 29,110,326 |
Gross profit | $ 8,971,596 | $ 14,787,292 |
Gross profit contribution % | 28.70% | 33.70% |
Assets | $ 83,739,473 | $ 83,100,417 |
Luobuma products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 661,778 | |
Cost of revenue and related business and sales tax | 304,253 | |
Gross profit | $ 357,525 | |
Gross profit contribution % | 54.00% | |
Assets | $ 6,268,974 | 11,927,928 |
Herbal products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 13,708,166 | 14,179,603 |
Cost of revenue and related business and sales tax | 10,337,936 | 10,761,778 |
Gross profit | $ 3,370,230 | $ 3,417,825 |
Gross profit contribution % | 24.60% | 24.10% |
Assets | $ 45,095,019 | $ 40,904,909 |
Other agricultural products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 16,850,096 | 18,833,114 |
Cost of revenue and related business and sales tax | 11,606,255 | 13,459,266 |
Gross profit | $ 5,243,841 | $ 5,373,848 |
Gross profit contribution % | 31.10% | 28.50% |
Assets | $ 32,375,480 | $ 30,267,580 |
Bluish dogbane [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 10,884,901 | |
Cost of revenue and related business and sales tax | 4,889,282 | |
Gross profit | $ 5,995,619 | |
Gross profit contribution % | 55.20% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended | |||
Aug. 27, 2019USD ($) | Jul. 19, 2019 | Sep. 03, 2019USD ($)$ / shares | Aug. 27, 2019CNY (¥) | |
Working capital loan | $ 291,256 | |||
Interest rate | 5.595% | 5.595% | ||
Purchase investors | $ 2,798,792 | |||
Purchase price per Share | $ / shares | $ 0.52 | |||
Gross amount | $ 1,455,371 | |||
Production and sales, description | The Agreement the Company and HBTD will cooperate for 3 years and each will provide R&D, production and sales of industrial hemp related products. HBTD is fully responsible for the R&D, the labor and marketing cost and the production and market expansion of the cooperation products under the Agreement. During the first year of the Agreement, all income will be distributed to HBTD. In the second year of the Agreement, the Company and HBTD will receive 15% and 85% of the income, respectively. In the third year of the Agreement, the Company and HBTD will receive 20% and 80% of the income, respectively. | |||
Debt instrument maturity date | Aug. 26, 2020 | |||
RMB [Member] | ||||
Working capital loan | ¥ | ¥ 2,000,000 |