Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | May 16, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 001-37776 | |
Entity Registrant Name | SHINECO, INC. | |
Entity Central Index Key | 0001300734 | |
Entity Tax Identification Number | 52-2175898 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | Room 3310, North Tower, Zhengda Center | |
Entity Address, Address Line Two | No. 20, Jinhe East Road, Chaoyang District | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100020 | |
City Area Code | (+86) | |
Local Phone Number | 10-87227366 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | SISI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,842,585 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
CURRENT ASSETS: | ||
Cash | $ 15,477,421 | $ 16,342,911 |
Accounts receivable, net | 2,329,405 | 2,686,671 |
Due from related parties | 7,189,579 | 132,398 |
Inventories, net | 21,063,482 | 1,323,391 |
Advances to suppliers, net | 316,118 | 7,790,126 |
Other current assets | 18,218,463 | 1,343,338 |
Current assets held for discontinued operations | 19,659,742 | |
TOTAL CURRENT ASSETS | 64,594,468 | 49,278,577 |
Property and equipment, net | 2,311,967 | 2,253,944 |
Investments | 609,918 | |
Distribution rights | 1,142,794 | |
Long-term deposit and other noncurrent assets | 11,225 | 14,550 |
Right of use assets | 4,346,890 | 3,585,703 |
Non-current assets held for discontinued operations | 5,043,031 | |
TOTAL ASSETS | 71,874,468 | 61,318,599 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,634 | 76,584 |
Advances from customers | 7,050 | 7,468 |
Due to related parties | 4,103,960 | 1,159,407 |
Other payables and accrued expenses | 9,058,801 | 4,109,208 |
Operating lease liabilities - current | 966,030 | 434,411 |
Convertible note payable | 14,092,753 | 2,933,030 |
Taxes payable | 1,114,915 | 1,208,348 |
Current liabilities held for discontinued operations | 4,866,934 | |
TOTAL CURRENT LIABILITIES | 29,345,143 | 14,795,390 |
Income tax payable - noncurrent portion | 506,441 | 506,441 |
Operating lease liabilities - non-current | 1,405,438 | 352,863 |
Deferred tax liability | 290,929 | 285,699 |
TOTAL LIABILITIES | 31,547,951 | 15,940,393 |
Commitments and contingencies | ||
EQUITY: | ||
Common stock; par value $0.001, 100,000,000 shares authorized; 9,869,134 and 7,881,482 shares issued and outstanding at March 31, 2022 and June 30, 2021 | 9,869 | 7,881 |
Additional paid-in capital | 50,685,070 | 41,105,806 |
Subscription receivable | (3,024,000) | (8,535,203) |
Statutory reserve | 4,198,107 | 4,198,107 |
Retained earnings (accumulated deficit) | (11,347,556) | 8,661,071 |
Accumulated other comprehensive gain (loss) | 216,525 | (731,805) |
Total Stockholders’ equity of Shineco, Inc. | 40,738,015 | 44,705,857 |
Non-controlling interest | (411,498) | 672,349 |
TOTAL EQUITY | 40,326,517 | 45,378,206 |
TOTAL LIABILITIES AND EQUITY | $ 71,874,468 | $ 61,318,599 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,869,134 | 7,881,482 |
Common stock, shares outstanding | 9,869,134 | 7,881,482 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
REVENUE | $ 618,094 | $ 637,799 | $ 1,980,426 | $ 2,435,438 |
COST OF REVENUE | ||||
Cost of product and services | 707,533 | 924,927 | 2,456,263 | 2,795,175 |
Stock written off due to natural disaster | 401,731 | 729,029 | 1,303,312 | 3,358,716 |
Business and sales related tax | 1,572 | 1,514 | 4,829 | 4,527 |
Total cost of revenue | 1,110,836 | 1,655,470 | 3,764,404 | 6,158,418 |
GROSS LOSS | (492,742) | (1,017,671) | (1,783,978) | (3,722,980) |
OPERATING EXPENSES | ||||
General and administrative expenses | 2,218,398 | 1,978,762 | 12,724,864 | 6,615,282 |
Selling expenses | 16,044 | 11,170 | 34,376 | 34,106 |
Impairment loss of distribution rights | 1,140,551 | |||
Total operating expenses | 2,234,442 | 1,989,932 | 13,899,791 | 6,649,388 |
LOSS FROM OPERATIONS | (2,727,184) | (3,007,603) | (15,683,769) | (10,372,368) |
OTHER INCOME (EXPENSE) | ||||
Impairment loss on an unconsolidated entity | (149,790) | |||
Loss from equity method investments | (49,247) | (156,235) | ||
Other income (loss), net | (7,174) | 1,967 | (5,731) | 87,883 |
Amortization of debt issuance costs | (287,897) | (1,142,215) | ||
Interest income (loss), net | 165,505 | 8,370 | 232,644 | 20,057 |
Total other income (loss) | (178,813) | 10,337 | (1,221,327) | 107,940 |
LOSS BEFORE PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS | (2,905,997) | (2,997,266) | (16,905,096) | (10,264,428) |
BENEFIT FOR INCOME TAXES | (29) | (4,530) | (6,507) | |
NET LOSS FROM CONTINUING OPERATIONS | (2,905,968) | (2,992,736) | (16,898,589) | (10,264,428) |
DISCONTINUED OPERATIONS: | ||||
Loss from discontinued operations, net of taxes | (4,787,017) | (12,051,832) | ||
Loss on disposal of discontinued operations | (3,135,237) | |||
Net loss from discontinued operations | (4,787,017) | (3,135,237) | (12,051,832) | |
NET LOSS | (2,905,968) | (7,779,753) | (20,033,826) | (22,316,260) |
Net loss attributable to non-controlling interest | (13,384) | (272,488) | (25,199) | (732,572) |
NET LOSS ATTRIBUTABLE TO SHINECO, INC. | (2,892,584) | (7,507,265) | (20,008,627) | (21,583,688) |
COMPREHENSIVE LOSS | ||||
Net loss | (2,905,968) | (7,779,753) | (20,033,826) | (22,316,260) |
Other comprehensive income (loss): foreign currency translation income (loss) | 148,043 | (164,631) | 962,349 | 4,911,863 |
Total comprehensive loss | (2,757,925) | (7,944,384) | (19,071,477) | (17,404,397) |
Less: comprehensive income attributable to non-controlling interest | (14,691) | (273,806) | (11,180) | (653,158) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO SHINECO, INC. | $ (2,743,234) | $ (7,670,578) | $ (19,060,297) | $ (16,751,239) |
Weighted average number of shares basic and diluted | 9,652,228 | 3,184,593 | 9,026,568 | 3,372,327 |
Net loss per common share - basic and diluted | $ (0.30) | $ (2.35) | $ (2.22) | $ (6.40) |
Loss per common share | ||||
Continuing operations - Basic and Diluted | (0.30) | (0.93) | (1.87) | (3.03) |
Discontinued operations - Basic and Diluted | $ (1.42) | $ (0.35) | $ (3.37) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Common Stock [Member] | Subscription Receivable [Member] | Additional Paid-in Capital [Member] | Statutory Reservel [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |
Beginning balance, value at Jun. 30, 2020 | $ 3,040 | $ 27,302,051 | $ 4,198,107 | $ 40,106,518 | $ (6,283,835) | $ 1,186,520 | $ 66,512,401 | ||
Beginning balance, shares at Jun. 30, 2020 | [1] | 3,039,943 | |||||||
Stock issuance | $ 969 | 2,735,453 | 2,736,422 | ||||||
Stock issuance, shares | [1] | 969,345 | |||||||
Net income loss for the period | (21,583,688) | (732,572) | (22,316,260) | ||||||
Foreign currency translation gain (loss) | 4,832,449 | 79,414 | 4,911,863 | ||||||
Ending balance, value at Mar. 31, 2021 | $ 4,009 | 30,037,504 | 4,198,107 | 18,522,830 | (1,451,386) | 533,362 | 51,844,426 | ||
Ending balance, shares at Mar. 31, 2021 | [1] | 4,009,288 | |||||||
Beginning balance, value at Dec. 31, 2020 | $ 3,645 | 28,944,533 | 4,198,107 | 26,030,095 | (1,288,073) | 807,168 | 58,695,475 | ||
Beginning balance, shares at Dec. 31, 2020 | 3,644,843 | ||||||||
Stock issuance | $ 364 | 1,092,971 | 1,093,335 | ||||||
Stock issuance, shares | 364,445 | ||||||||
Net income loss for the period | (7,507,265) | (272,488) | (7,779,753) | ||||||
Foreign currency translation gain (loss) | (163,313) | (1,318) | (164,631) | ||||||
Ending balance, value at Mar. 31, 2021 | $ 4,009 | 30,037,504 | 4,198,107 | 18,522,830 | (1,451,386) | 533,362 | 51,844,426 | ||
Ending balance, shares at Mar. 31, 2021 | [1] | 4,009,288 | |||||||
Beginning balance, value at Jun. 30, 2021 | $ 7,881 | (8,535,203) | 41,105,806 | 4,198,107 | 8,661,071 | (731,805) | 672,349 | 45,378,206 | |
Beginning balance, shares at Jun. 30, 2021 | 7,881,482 | ||||||||
Stock issuance | $ 292 | 5,511,203 | 1,969,708 | 7,481,203 | |||||
Stock issuance, shares | [1] | 291,775 | |||||||
Net income loss for the period | (20,008,627) | (25,199) | (20,033,826) | ||||||
Foreign currency translation gain (loss) | 948,330 | 14,019 | 962,349 | ||||||
Issuance of common shares for convertible notes redemption | $ 1,696 | 7,248,304 | 7,250,000 | ||||||
Issuance of common shares for convertible notes redemption, shares | [1] | 1,695,877 | |||||||
Beneficial conversion feature associated with convertible notes | 361,252 | 361,252 | |||||||
Disposal of Ankang | (1,072,667) | (1,072,667) | |||||||
Ending balance, value at Mar. 31, 2022 | $ 9,869 | (3,024,000) | 50,685,070 | 4,198,107 | (11,347,556) | 216,525 | (411,498) | 40,326,517 | |
Ending balance, shares at Mar. 31, 2022 | [1] | 9,869,134 | |||||||
Beginning balance, value at Dec. 31, 2021 | $ 9,432 | (3,024,000) | 49,435,507 | 4,198,107 | (8,454,972) | 67,175 | (396,807) | 41,834,442 | |
Beginning balance, shares at Dec. 31, 2021 | 9,431,707 | ||||||||
Net income loss for the period | (2,892,584) | (13,384) | (2,905,968) | ||||||
Foreign currency translation gain (loss) | 149,350 | (1,307) | 148,043 | ||||||
Issuance of common shares for convertible notes redemption | $ 437 | 1,249,563 | 1,250,000 | ||||||
Issuance of common shares for convertible notes redemption, shares | 437,427 | ||||||||
Ending balance, value at Mar. 31, 2022 | $ 9,869 | $ (3,024,000) | $ 50,685,070 | $ 4,198,107 | $ (11,347,556) | $ 216,525 | $ (411,498) | $ 40,326,517 | |
Ending balance, shares at Mar. 31, 2022 | [1] | 9,869,134 | |||||||
[1] | Retrospectively restated for effect of stock split on August 14, 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (20,033,826) | $ (22,316,260) |
Net loss from discontinued operations, net of tax | (3,135,237) | (12,051,832) |
Net loss from continuing operations | (16,898,589) | (10,264,428) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 853,287 | 287,478 |
Loss from disposal of property and equipment | 8,044 | |
Provision for doubtful accounts | 6,399,667 | 4,480,699 |
Provision for inventory reserve | 126,685 | 216,629 |
Stock written off due to natural disaster | 1,303,312 | 3,358,716 |
Loss from equity method investments | 156,235 | |
Amortization of right of use assets | 817,395 | 424,638 |
Impairment loss on distribution rights | 1,140,551 | |
Impairment loss on an unconsolidated entity | 149,790 | |
Amortization of debt issuance costs | 1,142,215 | |
Accrued interest expense for convertible notes | 628,760 | |
Accrued interest income due from third parties | (200,063) | |
Accrued interest income due from related parties | (173,263) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (560,583) | (2,237,927) |
Advances to suppliers | 2,255,904 | (3,803,576) |
Inventories | (1,333,129) | (4,554,000) |
Other current assets | (4,365,846) | (2,416,229) |
Accounts payable | (75,613) | 124,883 |
Advances from customers | (549) | |
Other payables | 2,378,307 | 2,277,809 |
Operating lease liabilities | (397,850) | (11,513) |
Taxes payable | (110,129) | 41,828 |
Net cash used in operating activities from continuing operations | (6,755,462) | (12,074,993) |
Net cash provided by operating activities from discontinued operations | 220,752 | |
Net cash used in operating activities | (6,755,462) | (11,854,241) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (310,121) | |
Proceeds from disposal of property and equipment | 1,562 | |
Payment made for loans to third parties | (12,200,000) | |
Payment made for loans to related parties | (6,703,954) | |
Investment in unconsolidated entity | (750,000) | |
Acquisition of a VIE - Guangyuan, net of cash | 112,070 | |
Disposal of a VIE - Ankang, net of cash | (12,669,913) | |
Net cash used in investing activities from continuing operations | (32,520,356) | |
Net cash provided by investing activities from discontinued operations | 1,252,056 | |
Net cash provided (used in) by investing activities | (32,520,356) | 1,252,056 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 7,481,203 | 2,736,422 |
Proceeds from (repayments of) advances from related parties | 748,515 | (297,510) |
Proceeds from issuance of convertible notes | 17,000,000 | |
Net cash provided by financing activities from continuing operations | 25,229,718 | 2,438,912 |
Net cash used in financing activities from discontinued operations | (673,954) | |
Net cash provided by financing activities | 25,229,718 | 1,764,958 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | 499,127 | 2,314,452 |
NET DECREASE IN CASH | (13,546,973) | (6,522,775) |
CASH - Beginning of the Period | 29,024,394 | 32,371,372 |
CASH - End of the period | 15,477,421 | 25,848,597 |
Less: cash of discontinued operations - Ended of the Period | 11,997,106 | |
Cash of continuing operations - Ended of the Period | 15,477,421 | 13,851,491 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for income taxes | 619,704 | |
Cash paid for interest | 88,894 | |
SUPPLEMENTAL NON-CASH OPERATING ACTIVITY: | ||
Issuance of common shares for convertible notes redemption | 7,250,000 | |
Right-of-use assets obtained in exchange for operating lease obligations | 1,952,449 | |
Reduction of right-of-use assets and operating lease obligations due to early termination of lease agreement | $ 1,057,311 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | 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 (the “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 90 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 an 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 VIEs.” Pursuant to the VIE Agreements, Tenet-Jove has the exclusive right to provide to the Zhisheng VIEs 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 VIEs 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 VIEs and Ankang Longevity Group. Therefore, the Zhisheng VIEs 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 VIEs and Ankang Longevity Group, Shineco owns 100% of Tenet-Jove. Accordingly, Shineco, Tenet-Jove, and its VIEs, the Zhisheng VIEs and Ankang Longevity Group are effectively controlled by the same majority shareholders. Therefore, Shineco, Tenet-Jove, and the VIEs of Tenet-Jove 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 September 30, 2017, Tenet-Jove established Xinjiang Shineco Taihe Agriculture Technology Ltd. (“Xinjiang Taihe”) with registered capital of RMB 10.0 1,502,650 10.0 1,502,650 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 14,000,000 2.1 51 On March 13, 2019, Tenet-Jove established Beijing Tenjove Newhemp Biotechnology Co., Ltd. (“TNB”) with registered capital of RMB 10.0 1,502,650 On August 22, 2019, the Company established Shineco Life Science Research Co., Ltd. (“Life Science”) as a wholly foreign-owned entity with registered capital of US$ 10.0 On June 8, 2021, Tenet-Jove entered into a Restructuring Agreement with various parties. Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all of its rights and interests in Ankang Longevity to Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”)’s Shareholders in exchange for the control of 100 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 Bluish Dogbane and related products, also known in Chinese as “Luobuma,” including therapeutic clothing and textile products made from Luobuma; 2) the Zhisheng VIEs and Guanyuan are engaged in planting, processing, and distributing green agricultural produce, and the Zhisheng VIEs is also providing domestic and international logistic services for agricultural products and (“Agricultural Products”); and, 3) Ankang Longevity Group, which is reclassified as discontinued operations, 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 | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended June 30, 2021, which was filed on September 30, 2021. The unaudited condensed 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 total carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information were as follows: SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION March 31, 2022 June 30, 2021 Current assets $ 38,921,375 $ 44,631,744 Plant and equipment, net 829,506 4,698,184 Other non-current assets 3,313,811 4,894,445 Total assets 43,064,692 54,224,373 Total liabilities (8,673,365 ) (7,377,886 ) Net assets $ 34,391,327 $ 46,846,487 2021 2020 2021 2020 For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net sales $ 1,937,137 $ 9,100,624 $ 609,573 $ 1,967,269 Gross loss $ (1,673,759 ) $ (2,562,653 ) $ (498,060 ) $ (873,783 ) Loss from operations $ (8,392,455 ) $ (14,234,577 ) $ (1,027,601 ) $ (5,119,541 ) Net loss $ (11,655,014 ) $ (19,443,845 ) $ (1,014,123 ) $ (6,591,598 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for discontinued operations were as follows: March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 Current assets $ $ 19,659,742 Plant and equipment, net - 3,683,525 Other non-current assets - 1,359,506 Total assets - 24,702,773 Total liabilities - (4,866,934 ) Net assets $ - $ 19,835,839 2021 2020 2021 2020 For the nine months ended For the three months ended March 31, 2022 2021 2022 2021 Net sales $ $ 6,761,663 $ $ 1,352,938 Gross profit $ - $ 969,175 $ - $ 10,355 Loss from operations $ - $ (6,093,367 ) $ - $ (3,049,177 ) Net loss $ (3,135,237 ) $ (11,348,837 ) $ - $ (4,533,742 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for continued operations were as follows: March 31, 2022 June 30, 2021 Current assets $ 38,921,375 $ 24,972,002 Plant and equipment, net 829,506 1,014,659 Other non-current assets 3,313,811 3,534,939 Total assets 43,064,692 29,521,600 Total liabilities (8,673,365 ) (2,510,952 ) Net assets $ 34,391,327 $ 27,010,648 2021 2020 2021 2020 For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net sales $ 1,937,137 $ 2,338,961 $ 609,573 $ 614,331 Gross loss $ (1,673,759 ) $ (3,531,828 ) $ (498,060 ) $ (884,138 ) Loss from operations $ (8,392,455 ) $ (8,141,210 ) $ (1,027,601 ) $ (2,070,364 ) Net loss $ (8,519,777 ) $ (8,095,008 ) $ (1,014,123 ) $ (2,057,856 ) Non-controlling Interests U.S. 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 of these entities are reported separately in the unaudited condensed consolidated statements of loss and comprehensive loss. Risks and Uncertainties The operations of the Company are located in the PRC and 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 others, 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 factors and believes that it is in compliance with existing laws and regulations, there is no guarantee that the Company will continue to do so in the future. 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 unaudited condensed consolidated financial statements in conformity with U.S. 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 unaudited condensed 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 and equipment, and intangible assets, the recoverability of long-lived assets, and the valuation of accounts receivable, advances to suppliers, deferred taxes, and inventory reserves. Actual results could differ from those estimates. Revenue Recognition We 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. We 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) our collection of such fees was reasonably assured. These criteria, as related to our revenue, were considered to have been met as follows: Sales of products: Revenue from the provision 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 March 31, 2022 and June 30, 2021, the Company had no 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, Net 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 March 31, 2022 and June 30, 2021, the allowance for doubtful accounts from the continuing operations was US$ 7,038,542 5,959,887 nil 3,675,619 Inventories, Net 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. As of March 31, 2022 and June 30, 2021, the inventory reserve from the continuing operations was US$ 1,332,435 1,229,158 nil Advances to Suppliers, Net 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 March 31, 2022 and June 30, 2021, the Company had an allowance for uncollectible advances to suppliers from the continuing operations of US$ 14,617,066 9,111,566 nil 1,773,698 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 12 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). Leases The Company adopted ASU 2016-02, “Leases” on July 1, 2019 and used the alternative transition approach, which permits the effects of adoption to be applied at the effective date. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. The Company also elected the short-term lease exemption and combining the lease and non-lease components practical expedients. The most significant impact upon adoption relates to the recognition of new Right-of-use (“ROU”) assets and lease liabilities on the Company’s balance sheet for office space operating leases. Upon adoption, the Company recognized additional operating liabilities of approximately US$ 0.5 3.6 Property and Equipment, Net 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: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Estimated useful lives Buildings 20 50 Machinery equipment 5 10 Motor vehicles 5 10 Office equipment 5 10 Farmland leasehold improvements 12 18 Leasehold improvement Lesser of useful life and lease term Land Use Rights, Net 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 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 nine and three months ended March 31, 2022 and 2021, the Company did no 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 unaudited condensed 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 realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for unaudited condensed 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 did not 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 2019 and thereafter. As of March 31, 2022, the tax years ended December 31, 2017 through December 31, 2021 for the Company’s PRC subsidiaries remained 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 21 744,766 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 was subject a tax rate of 16%, and after April 1, 2019, the tax rate was further reduced to 13% based on the new Chinese tax law 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 loss. The balance sheet amounts, with the exception of equity, at March 31, 2022 and June 30, 2021 were translated at 1 0.1577 1 0.1549 1 0.1562 1 0.1498 USD, respectively. The average translation rates applied to income and cash flow statement amounts for the three months ended March 31, 2022 and 2021 were 1 0.1576 1 0.1542 USD, respectively. Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive income. 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 in the unaudited condensed consolidated statements of loss and comprehensive loss. 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 50 Loss per Share The Company computes loss 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 loss 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 is no The following table presents a reconciliation of basic and diluted loss per share for the nine and three months ended March 31, 2022 and 2021: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net loss from continuing operations attributable to Shineco $ (16,873,390 ) $ (10,234,851 ) $ (2,892,584 ) $ (2,973,523 ) Net loss from discontinued operations attributable to Shineco (3,135,237 ) (11,348,837 ) - (4,533,742 ) Net loss attributable to Shineco (20,008,627 ) (21,583,688 ) (2,892,584 ) (7,507,265 ) Weighted average shares outstanding - basic and diluted 9,026,568 3,372,327 9,652,228 3,184,593 Net loss from continuing operations per share of common share Basic and diluted $ (1.87 ) $ (3.03 ) $ (0.30 ) $ (0.93 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.35 ) $ (3.37 ) $ - $ (1.42 ) Net loss per share of common share Basic and diluted $ (2.22 ) $ (6.40 ) $ (0.30 ) $ (2.35 ) Reclassifications Certain prior year balances were reclassified to conform to the current year’s presentation with consideration of reflecting the Company’s Ankang Longevity Group as discontinued operations. None of these reclassifications had an impact on reported financial position or cash flows for any of the periods presented. New Accounting Pronouncements In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). The guidance identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided. The amendments in that ASU expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For entities that have adopted the amendments in Update 2018-07, the updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company adopted this ASU on July 1, 2020 and the adoption of this ASU did not have a material impact on its financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The FASB is issuing this Update as part of its initiative to reduce complexity in accounting standards (the “Simplification Initiative”). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification in this ASU were submitted by stakeholders as part of the Simplification Initiative. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this ASU on July 1, 2021 and the adoption of this ASU did not have a material impact on its financial statements. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4, and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6, and Issue 7 were effective for the Company beginning on January 1, 2020. The Company adopted this ASU on July 1, 2020 and the adoption of this ASU did not have a material impact on its financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows, and disclosures. The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated financial statements. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 9 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 – ACCOUNTS RECEIVABLE, NET The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE March 31, 2022 June 30, Accounts receivable $ 9,367,947 $ 15,795,234 Less: allowance for doubtful accounts (7,038,542 ) (9,635,506 ) Accounts receivable, net 2,329,405 6,159,728 Less: accounts receivable, net, held for discontinued operations - 3,473,057 Accounts receivable, net, held for continuing operations $ 2,329,405 $ 2,686,671 Movement of allowance for doubtful accounts is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS March 31, 2022 June 30, Beginning balance $ 9,635,506 $ 5,235,436 Charge to expense 963,103 7,556,516 Less: cessation of subsidiaries and disposal of VIE (3,706,712 ) (3,749,735 ) Foreign currency translation adjustments 146,645 593,289 Ending balance $ 7,038,542 $ 9,635,506 |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 4 – INVENTORIES, NET The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET March 31, 2022 June 30, 2021 Raw materials $ 75,565 $ 208,253 Work-in-process 21,063,263 1,232,787 Finished goods 1,257,089 1,392,754 Less: inventory reserve (1,332,435 ) (1,229,158 ) Total inventories, net 21,063,482 1,604,636 Less: inventories, net, held for discontinued operations - 281,245 Inventories, net, held for continuing operations $ 21,063,482 $ 1,323,391 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. The Company wrote off inventory amounted to US$ 1,303,312 3,358,716 nine months ended March 31, 2022 and 2021 401,731 729,029 March 31, 2022 and 2021 |
ADVANCES TO SUPPLIERS, NET
ADVANCES TO SUPPLIERS, NET | 9 Months Ended |
Mar. 31, 2022 | |
Advances To Suppliers Net | |
ADVANCES TO SUPPLIERS, NET | NOTE 5 – ADVANCES TO SUPPLIERS, NET The advances to suppliers, net consisted of the following: SCHEDULE OF ADVANCES TO SUPPLIERS March 31, 2022 June 30, Advances to suppliers $ 14,933,184 $ 19,375,738 Less: allowance for doubtful accounts (14,617,066 ) (10,885,264 ) Advance to supplier, net 316,118 8,490,474 Less: advance to supplier, net, held for discontinued operations - 700,348 Advance to supplier, net, held for continuing operations $ 316,118 $ 7,790,126 Advances to suppliers consist of mainly payments to suppliers for yew trees that have not been received. Movement of allowance for doubtful accounts is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS ON ADVANCES TO SUPPLIERS March 31, 2022 June 30, Beginning balance $ 10,885,264 $ 3,342,590 Charge to expense 5,287,061 9,420,385 Less: cessation of subsidiaries and disposal of VIE (1,788,703 ) (2,374,394 ) Foreign currency translation adjustments 233,444 496,683 Ending balance $ 14,617,066 $ 10,885,264 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 9 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 6 – OTHER CURRENT ASSETS Other current assets include loans to third parties, deposits, advances to employees, prepaid expenses and others. During the nine months ended March 31, 2022, the Company entered into three of short-term loan agreements with the Company’s external business partners in an amount of US$ 12,200,000 The Company recorded interest income amounted to US$ 700,153 288,986 nine and three months ended March 31, 2022 The Company periodically reviewed the loans to the third parties as to whether their carrying values remain realizable. The Company believes that the risk associated with the above loans are relatively low based on the evaluation of the creditworthiness of the third-party debtors and the relationships with them. Movement of allowance for doubtful accounts is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS March 31, 2022 June 30, Beginning balance $ 635,502 $ 452,471 Charge to expense 149,503 158,335 Less: cessation of subsidiaries and disposal of VIE - - Foreign currency translation adjustments (141 ) 24,696 Ending balance $ 784,864 $ 635,502 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 7 - PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2022 June 30, 2021 Buildings $ 1,909,661 $ 8,242,357 Machinery and equipment 28,886 688,979 Motor vehicles 146,883 63,090 Office equipment 186,430 243,543 Leasehold improvement 196,771 - Farmland leasehold improvements 3,315,954 3,256,339 Total property and equipment, gross 5,784,585 12,494,308 Less: accumulated depreciation and amortization (3,472,618 ) (6,556,839 ) Total property and equipment, net 2,311,967 5,937,469 Less: property and equipment, net, held for discontinued operations - 3,683,525 Property and equipment, net held for continuing operations $ 2,311,967 $ 2,253,944 Depreciation and amortization expense charged to the continuing operations was US$ 284,901 239,121 nine months ended March 31, 2022 and 2021 nil 207,115 nine months ended March 31, 2022 and 2021 Depreciation and amortization expense charged to the continuing operations was US$ 70,170 81,881 March 31, 2022 and 2021 nil 53,630 March 31, 2022 and 2021 Farmland leasehold improvements consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS March 31, 2022 June 30, 2021 Blueberry farmland leasehold improvements $ 2,547,463 $ 2,501,664 Yew tree planting base reconstruction 285,410 280,279 Greenhouse renovation 483,081 474,396 Total farmland leasehold improvements 3,315,954 3,256,339 Less: farmland leasehold improvement, held for discontinued operations - - Total farmland leasehold improvement, held for continuing operations $ 3,315,954 $ 3,256,339 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 9 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
LAND USE RIGHTS, NET | NOTE 8 - LAND USE RIGHTS, NET 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” to use the land. The Company has the land use right to use the land for 50 years and amortizes the rights on a straight-line basis over the period of 50 SCHEDULE OF LAND USE RIGHTS March 31, 2022 June 30, 2021 Land use rights $ $ 1,722,396 Less: accumulated amortization - (448,134 ) Total land use rights, net - 1,274,262 Less: land use rights, net, held for discontinued operations - 1,274,262 Land use rights, net, held for continuing operations $ - $ - For the nine months ended March 31, 2022 and 2021 nil nine months ended March 31, 2022 and 2021 nil 28,822 For the three months ended March 31, 2022 and 2021 nil March 31, 2022 and 2021 nil 9,840 |
DISTRIBUTION RIGHTS
DISTRIBUTION RIGHTS | 9 Months Ended |
Mar. 31, 2022 | |
Distribution Rights | |
DISTRIBUTION RIGHTS | NOTE 9 - 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. During the nine months ended March 31, 2022, the management performed evaluation on the impairment of distribution rights. Due to the lower than expected revenue and profit, and unfavorable business environment, the management fully recorded an impairment loss on distribution rights of Tianjin Tajite. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | NOTE 10 - INVESTMENTS In 2013, 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 1.0 49 49 nil 3,753,280 nine months ended March 31, 2022 and 2021 nil 1,777,551 March 31, 2022 and 2021 49 49 6.86 1.0 In 2013, 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 nine and three months ended March 31, 2022 and 2021 no 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 2.2 29 30 10 30% Guangyuan entered into an equity investment agreement with Shanxi Pharmaceutical Group Yushe Pharmaceutical Development Co., Ltd. (“Yushe Pharmaceutical”), a Chinese pharmaceutical enterprise to invest a total of RMB 2.0 0.3 20 16,153 nil nine and three months ended March 31, 2022 December 31, 2021 On August 31, 2021, the Company entered into a capital injection agreement with the other shareholders of Shanghai Gaojing Private Fund Management (“Gaojing Private Fund”), a Chinese private fund management company, to complete the injection of a total RMB 4.8 0.75 32 March 31, 2022 140,082 49,247 nine and three months ended March 31, 2022 On January 18, 2022, the Company entered into three share transfer agreements (the “Purchase Agreements”), respectively with Beijing Qing Chuang Technology Incubator Co., Ltd., Hangzhou Sheng Dou Shi Bio Technology Co., Ltd. and Peng He (collectively, the “Selling Shareholders”), each a shareholder of Xiang Peng You Kang (Beijing) Technology Co., Ltd. (“XPYK”), pursuant to which the Company shall acquire a total of 51 700,551 8 On January 30, 2022, the Company entered into a cooperation agreement (the “Cooperation Agreement”) with Weifang Jianyi Medical Devices Co., Ltd. (“WJM”), a leading Chinese medical device company based in Shandong Province, China, pursuant to which the Company and WJM shall jointly manufacture and sell nuclear medical imaging devices (the “Joint Project”), including PET, PET-CT, and PET-MRI. Under the Cooperation Agreement, the Company will provide working capital and manufacturing facilities while WJM shall contribute patented and unpatented technologies and know-how, medical device manufacturing permits, skilled engineers and project managers to produce such nuclear medical imaging devices. The term of the Cooperation Agreement shall be three (3) years commencing from January 30, 2022. In accordance with the Cooperation Agreement, WJM shall be entitled to 30% of the net income generated by the Joint Project while the Company shall be entitled to 70% of the net income thereof and bear 100% of the net losses of the Joint Project . In addition, the Company and WJM shall manage the Joint Project jointly with WJM making the budgets and the Company approving such budgets. Furthermore, the Cooperation Agreement provides that the Company shall receive any and all of the intellectual property rights to be developed as a result of the Joint Project. As the date of this report, the Joint Project has not started, and no working capital and manufacturing facilities have been provided by the Company. The Company’s investments in unconsolidated entities consist of the following: SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES March 31, 2022 June 30, 2021 Gaojing Private Fund $ 609,918 $ Total investment 609,918 - Less: investment, held for discontinued operations - - Investment, held for continuing operations $ 609,918 $ - Summarized financial information of unconsolidated entities from continued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS March 31, 2022 June 30, 2021 Current assets $ 595,565 $ Current liabilities 27,176 - 2021 2020 For the nine months ended 2022 2021 Net sales $ 315,520 $ Gross loss (599 ) - Loss from operations (493,570 ) - Net loss (518,880 ) - Summarized financial information of unconsolidated entities from discontinued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS 2022 2021 For the nine months ended 2022 2021 Net sales $ $ 21,199,520 Gross profit - 1,748,858 Loss from operations - (4,065,801 ) Net loss - (4,091,472 ) |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2022 | |
Leases | |
LEASES | NOTE 11 - LEASES Effective July 1, 2019, the Company adopted the new lease accounting standard using the optional transition method, which allowed it to continue to apply the guidance under the lease standard in effect at the time in the comparative periods presented. In addition, the Company elected the package of practical expedients, which allowed it to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company has also elected the practical expedient, allowing it to not separate the lease and non-lease components for all classes of underlying assets. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities of $ 3,587,788 450,123 The Company leases offices space under non-cancelable operating leases, with terms ranging from one to six years. In addition, the Zhisheng VIEs and Guangyuan 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, fast-growing bamboo willows and scenic greening trees. The lease terms vary from 3 24 When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related assets and liabilities from the continuing operations recorded on the balance sheets. No operating lease related assets and liabilities from the discontinued operations. SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES March 31, 2022 June 30, 2021 ROU lease assets $ 4,346,890 $ 3,585,703 Operating lease liabilities – current 966,030 434,411 Operating lease liabilities – non-current 1,405,438 352,863 Total operating lease liabilities $ 2,371,468 $ 787,274 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of March 31, 2022 and June 30, 2021 SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES March 31, 2022 June 30, 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 6.87 7.25 Weighted average discount rate 5.30 % 5.00 % Rent expenses totaled US$ 693,684 337,128 March 31, 2022 and 2021 229,477 112,171 March 31, 2022 and 2021 Rent expenses were US$ nil nine and three months ended March 31, 2022 and 2021 The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2022: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Remainder of 2022 $ 675,437 2023 974,464 2024 827,059 2025 394,886 2026 227,617 Thereafter 1,541,996 Total lease payments 4,641,459 Less: imputed interest (365,741 ) Less: prepayments (1,904,250 ) Present value of lease liabilities $ 2,371,468 |
SHORT-TERM LOANS
SHORT-TERM LOANS | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LOANS | NOTE 12 - SHORT-TERM LOANS No short-terms loan was outstanding as of March 31, 2022 Short-term loans as of June 30, 2021 consisted of the following: SCHEDULE OF SHORT-TERM LOANS Lender June 30, 2021 Maturity Date Int. Rate/Year Agricultural Bank of China-a^ 1,548,502 2022/2/27 5.66 % Agricultural Bank of China-b# 309,700 2022/9/1 5.66 % Total short-term loans 1,858,202 Less: short-term loans, held for discontinued operations 1,858,202 Short-term loans, held for continuing operations $ - The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by a commercial credit guaranty company unrelated to the Company and also by Jiping Chen, a stockholder of the Company. b. 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 Xiaoyan Chen but not a shareholder of Ankang Longevity Group. ^ Upon the original maturity date of February 27, 2021 February 27, 2022 5.66% # Upon the original maturity date of September 1, 2021 September 1, 2022 5.66% Interest expenses from continuing operations were US$ nil nine and three months ended March 31, 2022 and 2021 The Company recorded interest expenses from discontinued operations of US$ nil 88,894 nine months ended March 31, 2022 and 2021 nil 5.36% nine months ended March 31, 2022 and 2021 The Company recorded interest expenses from discontinued operations of US$ nil 25,627 March 31, 2022 and 2021 nil 5.50% March 31, 2022 and 2021 |
ACQUISITION
ACQUISITION | 9 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | NOTE 13 - ACQUISITION Acquisition of Tianjin Taijite On December 12, 2016, the Company entered into a merger and acquisition agreement with 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 51% Pursuant to the agreement, the Company made a payment of RMB 14,000,000 2.1 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 represents 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 excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill which amounted to RMB 14,010,195 2.1 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 from continuing operations are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES Preliminary Fair Value Weighted Average Useful Life (in Years) Distribution rights $ 1,147,352 - ) (a) The distribution rights with no expiration date has been determined to have an indefinite life. During the nine months ended March 31, 2022, 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 of Guangyuan On June 8, 2021, Tenet-Jove entered into a Restructuring Agreement with various parties. Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all of its rights and interests in Ankang Longevity to Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”)’s Shareholders in exchange for the control of 100% of equity interests in Guangyuan, which composes of one group of similar identifiable assets; (ii) Tenet-Jove entered a Termination Agreement with Ankang Longevity and the Ankang Shareholders; (iii) as a consideration to the Restructuring Agreement and based on a valuation report on the equity interests of Guangyuan issued by an independent third party, Tenet-Jove relinquished all of its rights and interests in Ankang Longevity and transferred those rights and interests to the Guangyuan Shareholders; and (iv) Guangyuan and the Guangyuan Shareholders entered into a series of variable interest entity agreements with Tenet-Jove. After signing of the Restructuring Agreement, the Company and the shareholders of Ankang and Guangyuan actively carried out the transferring of rights and interests in Ankang and Guangyuan, and the transferring was completed subsequently on July 5, 2021. Afterwards, with the completion of all other follow-ups works, on August 16, 2021, the Company, through its subsidiary Tenet-Jove, completed the previously announced acquisition pursuant to the Restructuring Agreement dated June 8, 2021. The management determined that July 5, 2021 was the acquisition date of Guangyuan. The acquisition provides a unique opportunity for the Company to enter the market of planting fast-growing bamboo willows and scenic greening trees. 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: SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES Due from related party 108,296 Inventory 19,439,711 Other current assets 224,522 Right of use assets 1,164,976 Long-term investments and other non-current assets 166,107 Other payables and other current assets (4,534,328 ) Operating lease liabilities (1,047,486 ) Total purchase price for acquisition, net of US$ 112,070 $ 15,521,798 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 US$ nil nine and three months ended March 31, 2022 The Company has included the operating results of Guangyuan in its unaudited condensed consolidated financial statements since the Acquisition Date. US$ 22,331 694,051 22,331 71,250 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14 - RELATED PARTY TRANSACTIONS Due from Related Parties The Company has made temporary advances to certain stockholders of the Company and to other entities that are either owned by family members of those stockholders or to other entities that the Company has investments in. Those advances are due on demand and non-interest bearing. As of March 31, 2022 and June 30, 2021, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES March 31, 2022 June 30, 2021 Yang Bin $ 47,306 $ 46,454 Beijing Huiyinansheng Asset Management Co., Ltd (a.) - 23,228 Wang Qiwei 63,864 62,716 Shanghai Gaojing Private Fund Management (b.) 454,133 - Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (c.) 1,790,136 - Zhongjian (Qingdao) International Logistics Development Co., Ltd. (d.) 4,834,140 - Total due from related parties 7,189,579 132,398 Less: due from related parties, held for discontinued operations - - Due from related parties, held for continuing operations $ 7,189,579 $ 132,398 a. This company is wholly owned by one of the Company’s senior managements. b. The Company owns 32% c. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. to with an amount of US$ 1,734,536 11.0 September 16, 2022 6.0% 55,600 55,062 25,544 nine and three months ended March 31, 2022 and 2021 d. On October 28, 2021, the Company entered into a loan agreement with Zhongjian (Qingdao) International Logistics Development Co., Ltd. to with an amount of US$4, 714,785 29.9 October 27, 2022 6.0% 119,355 118,201 69,297 nine and three months ended March 31, 2022 and 2021 Due to Related Parties As of March 31, 2022 and June 30, 2021 4,103,960 1,159,407 SCHEDULE OF DUE TO RELATED PARTIES March 31, 2022 June 30, 2021 Wu Yang $ 100,997 $ 99,183 Wang Sai 81 91,433 Zhou Guocong - 551,314 Li Baolin 236,528 232,275 Zhao Min 289,397 185,202 Zhou Shunfang 3,476,957 - Total due to related parties 4,103,960 1,159,407 Less: due to related parties, held for discontinued operations - - Due to related parties, held for continuing operations $ 4,103,960 $ 1,159,407 Sales to Related Parties For the nine months ended March 31, 2022 and 2021, no sales to related parties or balance of accounts receivables were from continuing operations. The Company recorded sales to Shaanxi Pharmaceutical Group from the discontinued operations, a related party (see Note 10), of US$ nil 1,606,448 nil 311,249 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and June 30, 2021, the balance of accounts receivable due from Shaanxi Pharmaceutical Group from discontinued operations was US$ nil 551,237 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 15 - CONVERTIBLE NOTES PAYABLE On June 16, 2021, the Company entered into a Securities Purchase Agreement pursuant to which the Company issued an unsecured convertible promissory note with a one-year maturity (“the Note”) to an institutional accredited investor Streeterville Capital, LLC (“Investor”). The Note has the original principal amount of US$ 3,170,000 3.0 150,000 20,000 On July 16, 2021, the Company entered into a Securities Purchase Agreement (the “July Agreement”) pursuant to which the Company issued two unsecured convertible promissory notes with a one 3,170,000 3.0 150,000 20,000 4,200,000 4.0 200,000 On August 19, 2021, the Company entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note with a one 10,520,000 10.0 500,000 20,000 For the above-mentioned convertible promissory notes issued, interest accrues on the outstanding balance of these notes at 6% The Investor may redeem all or any part of the outstanding balance of the note, at any time after six months from the issue date upon three trading days’ notice, in cash or converting into shares of the Company’s common stock at a price equal to 80% multiplied by the lowest daily volume weighted average price (“VWAP”) during the fifteen trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the note. Following the receipt of a redemption notice, the Company may either ratify Investor’s proposed allocation in the applicable redemption notice or elect to change the allocation by written notice to Investor within twenty-four (24) hours of its receipt of such redemption notice, so long as the sum of the cash payments and the amount of redemption conversions equal the applicable redemption amount As of March 31, 2022 nine months ended March 31, 2022 1,142,215 March 31, 2022 287,897 As of March 31, 2022 1,695,877 7,250,000 14,092,753 14,438,760 346,007 |
TAXES
TAXES | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 16 - 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 the VIEs 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 VIEs 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 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 the Company to re-measure its income tax liability and record an estimated income tax expense of US$ 744,766 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 expenses were as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFITS) For the nine months ended For the three months ended March 31, 2022 2021 2022 2021 Current income tax benefit $ (6,507 ) $ $ (29 ) $ (83,106 ) Deferred income tax provision - - - - Total income tax benefit $ (6,507 ) $ - $ (29 ) $ (83,106 ) Less: income tax benefit, held for discontinued operations - - - (78,576 ) Income tax benefit, held for continuing operations $ (6,507 ) $ - $ (29 ) $ (4,530 ) SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES March 31, 2022 June 30, 2021 Deferred tax assets: Allowance for doubtful accounts $ 1,172,838 $ 951,136 Inventory reserve 343,896 306,308 Net operating loss carry-forwards 562,696 552,579 Total 2,079,430 1,810,023 Valuation allowance (2,079,430 ) (1,810,023 ) Total deferred tax assets - - Deferred tax liability: Distribution rights (290,929 ) (285,699 ) Total deferred tax liability (290,929 ) (285,699 ) Deferred tax liability, net (290,929 ) (285,699 ) Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ (290,929 ) $ (285,699 ) Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE March 31, 2022 June 30, 2021 Beginning balance $ 1,810,023 $ 1,185,655 Current year/period addition 236,270 512,028 Exchange difference 33,137 112,340 Ending balance 2,079,430 1,810,023 Less: valuation allowance, held for discontinued operations - (1,362,329 ) Valuation allowance, held for continuing operations $ 2,079,430 $ 447,694 (b) Value-Added Tax The Company is subject to a VAT for selling merchandise. The applicable VAT rate was 17% before May 1, 2018 for products sold in the PRC and decreased to 16% thereafter, and after April 1, 2019, the tax rate was further reduced to 13% 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. 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 the penalty will be expensed in the period if and when a determination is made by the tax authorities. There were no nine and three months ended March 31, 2022 and 2021 (c) Taxes Payable Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE March 31, 2022 June 30, 2021 Income tax payable $ 1,572,891 $ 3,376,499 Value added tax payable 45,329 73,390 Business tax and other taxes payable 3,136 8,573 Total tax payable 1,621,356 3,458,462 Less: tax payable, held for discontinued operations - (1,743,673 ) Tax payable, held for continuing operations $ 1,621,356 $ 1,714,789 Income tax payable - current portion $ 1,114,915 $ 2,952,021 Less: income tax payable - current portion, held for discontinued operations - (1,743,673 ) Income tax payable - current portion, held for continuing operations $ 1,114,915 $ 1,208,348 Income tax payable - noncurrent portion $ 506,441 $ 506,441 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 506,441 $ 506,441 |
NOTE 17 - STOCKHOLDERS_ EQUITY
NOTE 17 - STOCKHOLDERS’ EQUITY | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
NOTE 17 - STOCKHOLDERS’ EQUITY | NOTE 17 - STOCKHOLDERS’ EQUITY Initial Public Offering On September 28, 2016, the Company completed its initial public offering of 190,354 40.50 7.7 5.4 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 50 March 31, 2022 4,198,107 4,198,107 On September 3, 2019, the Company granted 184,763 1,022,660 5.54 On September 5, 2019, the Company entered into a securities purchase agreement with select investors whereby the Company agreed to sell, and the investors agreed to purchase, up to 310,977 4.68 1,500,203 On July 10, 2020, the Company’s stockholders approved a 1-for-9 reverse stock split 0.001 100,000,000 0.001 27,333,428 3,037,048 On December 10, 2020, the Company entered into a securities purchase agreement with select investors whereby the Company agreed to sell, and the investors agreed to purchase, up to 604,900 2.73 1,643,087 On January 27, 2021, the Company issued 364,445 3.0 1,093,355 On April 10, 2021, the Company issued 3,872,194 3.2 7,981,204 3,024,000 March 31, 2022 On December 6, 2021 GHS Investments, LLC (“GHS”). Under the Purchase Agreement, the Company sold GHS 291,775 6.8546 2,000,000 1,970,000 |
CONCENTRATIONS AND RISKS
CONCENTRATIONS AND RISKS | 9 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 18 - CONCENTRATIONS AND RISKS The Company maintains principally all bank accounts in the PRC. The cash balance held in the PRC bank accounts from the continuing operations was US$ 15,473,414 16,333,102 March 31, 2022 nil 12,676,416 March 31, 2022 During the nine and three months ended March 31, 2022 and 2021 100 100 For the nine months ended March 31, 2022 76 March 31, 2022 81 March 31, 2022 75 For the nine months ended March 31, 2021 62 March 31, 2021 81 nine months ended March 31, 2021 100 March 31, 2021 100 For the nine months ended March 31, 2022 92 March 31, 2022 83 17 For the nine months ended March 31, 2021 95 March 31, 2021 89 11 nine months ended March 31, 2021 100 March 31, 2021 100 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 - COMMITMENTS AND CONTINGENCIES Legal Contingencies On May 16, 2017, Bonwick Capital Partners, LLC (the “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 alleged that the Company entered into an agreement with the Plaintiff, pursuant to which the Plaintiff was to provide the Company with financial advisory services in connection with the Company’s initial public offering in the United States. The Plaintiff alleged that the Company breached the Agreement and seek money damages up to US$ 6 47,500 On May 16, 2017, Mrs. Guiqin Li (the “Plaintiff”) commenced a lawsuit against the Company in the People’s Court of Chongqing Pilot Free Trade Zone of China. Plaintiff alleged that due to the misguidance given by the Company’s security trading department, the Plaintiff did not manage to complete the sales of the Company’s common stock on the day of the Company’s initial public offering in the United States. As the price of the Company’s common stock continued falling after initial public offering, the Plaintiff incurred losses and hence seek money damages against the Company. Based on the judgment of the first trail, the Company required to pay the Plaintiff a settlement payment, including the money compensation, interests and other legal fees. As of March 31, 2022 784,120 5.0 On November 26, 2021, the Company filed a complaint in the Supreme Court of the State of New York, New York County against Lei Zhang and Yan Li, as defendants, and Transhare Corporation, as a nominal defendant, asserting that defendants had not paid for restricted shares of the Company stock pursuant to stock purchase agreements they executed with the Company. In December, defendants filed an answer and counterclaim against the Company, which they amended on January 27, 2022 after the Company moved to dismiss their counterclaims. They claimed that the Company made false and materially misleading statements, specifically regarding the sale of the shares and the removal of their restrictive legends. Defendants seek a declaratory judgment, indemnification, and money damages of at least $ 9 10 March 31, 2022 982,500 3,024,000 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 20 - 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 ● 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. ● 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, which are reclassified as discontinued operations, 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 VIEs, are 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 VIEs have newly developed over 100 acres of modern greenhouses for cultivating yew trees and other plants. The other operating companies of this segment, Guangyuan, is engaged in the business of landscaping, afforestation, road greening, scenic greening, garden engineering, landscaping construction, and green afforestation, especially in planting fast-growing bamboo willows and scenic greening trees. The operations of this segment are located in the North regions of Mainland China, mostly carried out in Shanxi Province, where Guangyuan has developed over 350 acres of farmland for cultivating bamboo willows and other plants. The following table presents summarized information by segment for the nine months ended March 31, 2022 SCHEDULE OF INFORMATION BY SEGMENT For the nine months ended March 31, 2022 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 43,289 $ 1,937,137 $ 1,980,426 $ $ 1,980,426 Cost of revenue and related business and sales tax 153,508 3,610,896 3,764,404 - 3,764,404 Gross loss (110,219 ) (1,673,759 ) (1,783,978 ) - (1,783,978 ) Gross loss % (254.6 )% (86.4 )% (90.1 )% - (90.1 )% The following table presents summarized information by segment for the nine months ended March 31, 2021 For the nine months ended March 31, 2021 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 96,477 $ 2,338,961 $ 2,435,438 $ 6,761,663 $ 9,197,101 Cost of revenue and related business and sales tax 287,629 5,870,789 6,158,418 5,792,488 11,950,906 Gross profit (loss) (191,152 ) (3,531,828 ) (3,722,980 ) 969,175 (2,753,805 ) Gross profit (loss) % (198.1 )% (151.0 )% (152.9 )% 14.3 % (29.9 )% The following table presents summarized information by segment for the three months ended March 31, 2022 For the three months ended March 31, 2022 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 8,521 $ 609,573 $ 618,094 $ $ 618,094 Cost of revenue and related business and sales tax 3,203 1,107,633 1,110,836 - 1,110,836 Gross profit (loss) 5,318 (498,060 ) (492,742 ) - (492,742 ) Gross profit (loss) % 62.4 % (81.7 )% (79.7 )% - (79.7 )% The following table presents summarized information by segment for the three months ended March 31, 2021: For the three months ended March 31, 2021 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 23,468 $ 614,331 $ 637,799 $ 1,352,938 $ 1,990,737 Cost of revenue and related business and sales tax 157,001 1,498,469 1,655,470 1,342,583 2,998,053 Gross profit (loss) (133,533 ) (884,138 ) (1,017,671 ) 10,355 (1,007,316 ) Gross profit (loss) % (569.0 )% (143.9 )% (159.6 )% 0.8 % (50.6 )% Total assets as of March 31, 2022 and June 30, 2021 March 31, 2022 June 30, 2021 Luobuma products $ 31,999,863 $ 3,849,675 Other agricultural products 39,874,605 32,766,151 Herbal products - 24,702,773 Total assets 71,874,468 61,318,599 Less: total assets held for discontinued operations - (24,702,773 ) Total assets, held for continuing operations $ 71,874,468 $ 36,615,826 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 21 - DISCONTINUED OPERATIONS On June 8, 2021, Tenet-Jove entered into a Restructuring Agreement (the “Restructuring Agreement”) with the following parties: ● Ankang Longevity, a company incorporated under the laws of the People’s Republic of China (the “PRC”); ● Mr. Jiping Chen, who is a minority shareholder of the Company and holds 68.7 31.3 ● Yushe County Guangyuan Forest Development Co., Ltd., a company incorporated under the laws of the PRC (“Guangyuan”); and ● Mr. Baolin Li, who is a minority shareholder of the Company and holds 90 10 Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all of its rights and interests in Ankang Longevity to the Guangyuan Shareholders in exchange for the control of 100 After signing of the Restructuring Agreement, the Company and the shareholders of Ankang and Guangyuan actively carried out the transferring of rights and interests in Ankang and Guangyuan, and the transferring was completed subsequently on July 5, 2021. Afterwards, with the completion of all other follow-ups works, on August 16, 2021, the Company, through its subsidiary Tenet-Jove, completed the previously announced acquisition pursuant to the Restructuring Agreement dated June 8, 2021. The management determined that July 5, 2021 was the disposal date of Ankang. In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes benefit, shall be reported as a component of net loss separate from the net loss of continuing operations in accordance with ASC 205-20-45. The assets and liabilities of the entities of Ankang Longevity have been reclassified as “assets of discontinued operations” and “liabilities of discontinued operations” within current and non-current assets and liabilities, respectively, on the unaudited condensed consolidated balance sheets as of March 31, 2022 and June 30, 2021 nine and three months ended March 31, 2022 and 2021 The carrying amount of the major classes of assets and liabilities of discontinued operations as of March 31, 2022 and June 30, 2021 SCHEDULE OF DISCONTINUED OPERATIONS March 31, 2022 June 30, 2021 Assets of discontinued operation: Current assets: Cash $ - $ 12,681,483 Accounts receivables - 3,473,057 Inventories, net - 281,245 Advances to suppliers, net - 700,348 Other current assets - 2,523,609 Total current assets of discontinued operation - 19,659,742 Property and equipment, net - 3,683,525 Land use right, net of accumulated amortization - 1,274,262 Investments - - Long-term deposit and other noncurrent assets - 85,244 Total assets of discontinued operation $ - $ 24,702,773 Liabilities of discontinued operation: Current liabilities: Short-term loans $ - $ 1,858,202 Accounts payable - 46,948 Other payables and accrued expenses - 1,218,111 Taxes payable - 1,743,673 Total liabilities of discontinued operation $ - $ 4,866,934 The summarized operating result of discontinued operations included in the Company’s consolidated statements of operations consist of the following: SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS 2022 2021 2022 2021 For the Nine Months Ended March 31, For the Three Months Ended 2022 2021 2022 2021 REVENUE $ - $ 6,761,663 $ $ 1,352,938 COST OF REVENUE Cost of product and services - 5,767,915 - 1,336,937 Business and sales related tax - 24,573 - 5,646 Total cost of revenue - 5,792,488 - 1,342,583 GROSS PROFIT - 969,175 - 10,355 OPERATING EXPENSES General and administrative expenses - 7,009,778 - 3,038,177 Selling expenses - 52,764 - 21,355 Total operating expenses - 7,062,542 - 3,059,532 LOSS FROM OPERATIONS - (6,093,367 ) - (3,049,177 ) OTHER EXPENSE Loss from equity method investments - (3,753,280 ) - (1,777,551 ) Other expense, net - (2,154,151 ) - (30,043 ) Interest expense net - (51,034 ) - (8,822 ) Total other expense - (5,958,465 ) - (1,816,416 ) LOSS BEFORE PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (12,051,832 ) - (4,865,593 ) BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - - - (78,576 ) NET LOSS FROM DISCONTINUED OPERATIONS FROM ANKANG GROUP - (12,051,832 ) - (4,787,017 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS (3,135,237 ) - - - NET LOSS FROM DISCONTINUED OPERATIONS (3,135,237 ) (12,051,832 ) - (4,787,017 ) Net loss attributable to non-controlling interest - (702,995 ) - (253,275 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (3,135,237 ) $ (11,348,837 ) $ - $ (4,533,742 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22 - SUBSEQUENT EVENTS On April 11, 2022, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with Jing Wang (the “Investor”). Under the Purchase Agreement, the Company will sell to the Investor, up to 973,451 2.26 2,200,000 These unaudited condensed consolidated financial statements were approved by management and available for issuance on May 16, 2022, and the Company has evaluated subsequent events through this date. No subsequent events required adjustments to or disclosure in these unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended June 30, 2021, which was filed on September 30, 2021. The unaudited condensed 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 total carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information were as follows: SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION March 31, 2022 June 30, 2021 Current assets $ 38,921,375 $ 44,631,744 Plant and equipment, net 829,506 4,698,184 Other non-current assets 3,313,811 4,894,445 Total assets 43,064,692 54,224,373 Total liabilities (8,673,365 ) (7,377,886 ) Net assets $ 34,391,327 $ 46,846,487 2021 2020 2021 2020 For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net sales $ 1,937,137 $ 9,100,624 $ 609,573 $ 1,967,269 Gross loss $ (1,673,759 ) $ (2,562,653 ) $ (498,060 ) $ (873,783 ) Loss from operations $ (8,392,455 ) $ (14,234,577 ) $ (1,027,601 ) $ (5,119,541 ) Net loss $ (11,655,014 ) $ (19,443,845 ) $ (1,014,123 ) $ (6,591,598 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for discontinued operations were as follows: March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 Current assets $ $ 19,659,742 Plant and equipment, net - 3,683,525 Other non-current assets - 1,359,506 Total assets - 24,702,773 Total liabilities - (4,866,934 ) Net assets $ - $ 19,835,839 2021 2020 2021 2020 For the nine months ended For the three months ended March 31, 2022 2021 2022 2021 Net sales $ $ 6,761,663 $ $ 1,352,938 Gross profit $ - $ 969,175 $ - $ 10,355 Loss from operations $ - $ (6,093,367 ) $ - $ (3,049,177 ) Net loss $ (3,135,237 ) $ (11,348,837 ) $ - $ (4,533,742 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for continued operations were as follows: March 31, 2022 June 30, 2021 Current assets $ 38,921,375 $ 24,972,002 Plant and equipment, net 829,506 1,014,659 Other non-current assets 3,313,811 3,534,939 Total assets 43,064,692 29,521,600 Total liabilities (8,673,365 ) (2,510,952 ) Net assets $ 34,391,327 $ 27,010,648 2021 2020 2021 2020 For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net sales $ 1,937,137 $ 2,338,961 $ 609,573 $ 614,331 Gross loss $ (1,673,759 ) $ (3,531,828 ) $ (498,060 ) $ (884,138 ) Loss from operations $ (8,392,455 ) $ (8,141,210 ) $ (1,027,601 ) $ (2,070,364 ) Net loss $ (8,519,777 ) $ (8,095,008 ) $ (1,014,123 ) $ (2,057,856 ) |
Non-controlling Interests | Non-controlling Interests U.S. 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 of these entities are reported separately in the unaudited condensed consolidated statements of loss and comprehensive loss. |
Risks and Uncertainties | Risks and Uncertainties The operations of the Company are located in the PRC and 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 others, 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 factors and believes that it is in compliance with existing laws and regulations, there is no guarantee that the Company will continue to do so in the future. 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 unaudited condensed consolidated financial statements in conformity with U.S. 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 unaudited condensed 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 and equipment, and intangible assets, the recoverability of long-lived assets, and the valuation of accounts receivable, advances to suppliers, deferred taxes, and inventory reserves. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition We 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. We 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) our collection of such fees was reasonably assured. These criteria, as related to our revenue, were considered to have been met as follows: Sales of products: Revenue from the provision 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 March 31, 2022 and June 30, 2021, the Company had no 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, Net | Accounts Receivable, Net 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 March 31, 2022 and June 30, 2021, the allowance for doubtful accounts from the continuing operations was US$ 7,038,542 5,959,887 nil 3,675,619 |
Inventories, Net | Inventories, Net 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. As of March 31, 2022 and June 30, 2021, the inventory reserve from the continuing operations was US$ 1,332,435 1,229,158 nil |
Advances to Suppliers, Net | Advances to Suppliers, Net 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 March 31, 2022 and June 30, 2021, the Company had an allowance for uncollectible advances to suppliers from the continuing operations of US$ 14,617,066 9,111,566 nil 1,773,698 |
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 12 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). |
Leases | Leases The Company adopted ASU 2016-02, “Leases” on July 1, 2019 and used the alternative transition approach, which permits the effects of adoption to be applied at the effective date. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. The Company also elected the short-term lease exemption and combining the lease and non-lease components practical expedients. The most significant impact upon adoption relates to the recognition of new Right-of-use (“ROU”) assets and lease liabilities on the Company’s balance sheet for office space operating leases. Upon adoption, the Company recognized additional operating liabilities of approximately US$ 0.5 3.6 |
Property and Equipment, Net | Property and Equipment, Net 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: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Estimated useful lives Buildings 20 50 Machinery equipment 5 10 Motor vehicles 5 10 Office equipment 5 10 Farmland leasehold improvements 12 18 Leasehold improvement Lesser of useful life and lease term |
Land Use Rights, Net | Land Use Rights, Net 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 |
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 nine and three months ended March 31, 2022 and 2021, the Company did no |
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 unaudited condensed 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 realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for unaudited condensed 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 did not 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 2019 and thereafter. As of March 31, 2022, the tax years ended December 31, 2017 through December 31, 2021 for the Company’s PRC subsidiaries remained 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 21 744,766 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 was subject a tax rate of 16%, and after April 1, 2019, the tax rate was further reduced to 13% based on the new Chinese tax law |
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 loss. The balance sheet amounts, with the exception of equity, at March 31, 2022 and June 30, 2021 were translated at 1 0.1577 1 0.1549 1 0.1562 1 0.1498 USD, respectively. The average translation rates applied to income and cash flow statement amounts for the three months ended March 31, 2022 and 2021 were 1 0.1576 1 0.1542 USD, respectively. |
Convertible Notes Payable | Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive income. 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 in the unaudited condensed consolidated statements of loss and comprehensive loss. |
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 50 |
Loss per Share | Loss per Share The Company computes loss 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 loss 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 is no The following table presents a reconciliation of basic and diluted loss per share for the nine and three months ended March 31, 2022 and 2021: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net loss from continuing operations attributable to Shineco $ (16,873,390 ) $ (10,234,851 ) $ (2,892,584 ) $ (2,973,523 ) Net loss from discontinued operations attributable to Shineco (3,135,237 ) (11,348,837 ) - (4,533,742 ) Net loss attributable to Shineco (20,008,627 ) (21,583,688 ) (2,892,584 ) (7,507,265 ) Weighted average shares outstanding - basic and diluted 9,026,568 3,372,327 9,652,228 3,184,593 Net loss from continuing operations per share of common share Basic and diluted $ (1.87 ) $ (3.03 ) $ (0.30 ) $ (0.93 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.35 ) $ (3.37 ) $ - $ (1.42 ) Net loss per share of common share Basic and diluted $ (2.22 ) $ (6.40 ) $ (0.30 ) $ (2.35 ) |
Reclassifications | Reclassifications Certain prior year balances were reclassified to conform to the current year’s presentation with consideration of reflecting the Company’s Ankang Longevity Group as discontinued operations. None of these reclassifications had an impact on reported financial position or cash flows for any of the periods presented. |
New Accounting Pronouncements | New Accounting Pronouncements In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). The guidance identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided. The amendments in that ASU expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For entities that have adopted the amendments in Update 2018-07, the updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company adopted this ASU on July 1, 2020 and the adoption of this ASU did not have a material impact on its financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The FASB is issuing this Update as part of its initiative to reduce complexity in accounting standards (the “Simplification Initiative”). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification in this ASU were submitted by stakeholders as part of the Simplification Initiative. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this ASU on July 1, 2021 and the adoption of this ASU did not have a material impact on its financial statements. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4, and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6, and Issue 7 were effective for the Company beginning on January 1, 2020. The Company adopted this ASU on July 1, 2020 and the adoption of this ASU did not have a material impact on its financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows, and disclosures. The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION | SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION March 31, 2022 June 30, 2021 Current assets $ 38,921,375 $ 44,631,744 Plant and equipment, net 829,506 4,698,184 Other non-current assets 3,313,811 4,894,445 Total assets 43,064,692 54,224,373 Total liabilities (8,673,365 ) (7,377,886 ) Net assets $ 34,391,327 $ 46,846,487 2021 2020 2021 2020 For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net sales $ 1,937,137 $ 9,100,624 $ 609,573 $ 1,967,269 Gross loss $ (1,673,759 ) $ (2,562,653 ) $ (498,060 ) $ (873,783 ) Loss from operations $ (8,392,455 ) $ (14,234,577 ) $ (1,027,601 ) $ (5,119,541 ) Net loss $ (11,655,014 ) $ (19,443,845 ) $ (1,014,123 ) $ (6,591,598 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for discontinued operations were as follows: March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 Current assets $ $ 19,659,742 Plant and equipment, net - 3,683,525 Other non-current assets - 1,359,506 Total assets - 24,702,773 Total liabilities - (4,866,934 ) Net assets $ - $ 19,835,839 2021 2020 2021 2020 For the nine months ended For the three months ended March 31, 2022 2021 2022 2021 Net sales $ $ 6,761,663 $ $ 1,352,938 Gross profit $ - $ 969,175 $ - $ 10,355 Loss from operations $ - $ (6,093,367 ) $ - $ (3,049,177 ) Net loss $ (3,135,237 ) $ (11,348,837 ) $ - $ (4,533,742 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for continued operations were as follows: March 31, 2022 June 30, 2021 Current assets $ 38,921,375 $ 24,972,002 Plant and equipment, net 829,506 1,014,659 Other non-current assets 3,313,811 3,534,939 Total assets 43,064,692 29,521,600 Total liabilities (8,673,365 ) (2,510,952 ) Net assets $ 34,391,327 $ 27,010,648 2021 2020 2021 2020 For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net sales $ 1,937,137 $ 2,338,961 $ 609,573 $ 614,331 Gross loss $ (1,673,759 ) $ (3,531,828 ) $ (498,060 ) $ (884,138 ) Loss from operations $ (8,392,455 ) $ (8,141,210 ) $ (1,027,601 ) $ (2,070,364 ) Net loss $ (8,519,777 ) $ (8,095,008 ) $ (1,014,123 ) $ (2,057,856 ) |
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Estimated useful lives Buildings 20 50 Machinery equipment 5 10 Motor vehicles 5 10 Office equipment 5 10 Farmland leasehold improvements 12 18 Leasehold improvement Lesser of useful life and lease term |
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | The following table presents a reconciliation of basic and diluted loss per share for the nine and three months ended March 31, 2022 and 2021: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE For the nine months ended March 31, For the three months ended March 31, 2022 2021 2022 2021 Net loss from continuing operations attributable to Shineco $ (16,873,390 ) $ (10,234,851 ) $ (2,892,584 ) $ (2,973,523 ) Net loss from discontinued operations attributable to Shineco (3,135,237 ) (11,348,837 ) - (4,533,742 ) Net loss attributable to Shineco (20,008,627 ) (21,583,688 ) (2,892,584 ) (7,507,265 ) Weighted average shares outstanding - basic and diluted 9,026,568 3,372,327 9,652,228 3,184,593 Net loss from continuing operations per share of common share Basic and diluted $ (1.87 ) $ (3.03 ) $ (0.30 ) $ (0.93 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.35 ) $ (3.37 ) $ - $ (1.42 ) Net loss per share of common share Basic and diluted $ (2.22 ) $ (6.40 ) $ (0.30 ) $ (2.35 ) |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE March 31, 2022 June 30, Accounts receivable $ 9,367,947 $ 15,795,234 Less: allowance for doubtful accounts (7,038,542 ) (9,635,506 ) Accounts receivable, net 2,329,405 6,159,728 Less: accounts receivable, net, held for discontinued operations - 3,473,057 Accounts receivable, net, held for continuing operations $ 2,329,405 $ 2,686,671 |
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movement of allowance for doubtful accounts is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS March 31, 2022 June 30, Beginning balance $ 9,635,506 $ 5,235,436 Charge to expense 963,103 7,556,516 Less: cessation of subsidiaries and disposal of VIE (3,706,712 ) (3,749,735 ) Foreign currency translation adjustments 146,645 593,289 Ending balance $ 7,038,542 $ 9,635,506 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES, NET | The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET March 31, 2022 June 30, 2021 Raw materials $ 75,565 $ 208,253 Work-in-process 21,063,263 1,232,787 Finished goods 1,257,089 1,392,754 Less: inventory reserve (1,332,435 ) (1,229,158 ) Total inventories, net 21,063,482 1,604,636 Less: inventories, net, held for discontinued operations - 281,245 Inventories, net, held for continuing operations $ 21,063,482 $ 1,323,391 |
ADVANCES TO SUPPLIERS, NET (Tab
ADVANCES TO SUPPLIERS, NET (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Advances To Suppliers Net | |
SCHEDULE OF ADVANCES TO SUPPLIERS | The advances to suppliers, net consisted of the following: SCHEDULE OF ADVANCES TO SUPPLIERS March 31, 2022 June 30, Advances to suppliers $ 14,933,184 $ 19,375,738 Less: allowance for doubtful accounts (14,617,066 ) (10,885,264 ) Advance to supplier, net 316,118 8,490,474 Less: advance to supplier, net, held for discontinued operations - 700,348 Advance to supplier, net, held for continuing operations $ 316,118 $ 7,790,126 |
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS ON ADVANCES TO SUPPLIERS | Movement of allowance for doubtful accounts is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS ON ADVANCES TO SUPPLIERS March 31, 2022 June 30, Beginning balance $ 10,885,264 $ 3,342,590 Charge to expense 5,287,061 9,420,385 Less: cessation of subsidiaries and disposal of VIE (1,788,703 ) (2,374,394 ) Foreign currency translation adjustments 233,444 496,683 Ending balance $ 14,617,066 $ 10,885,264 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movement of allowance for doubtful accounts is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS March 31, 2022 June 30, Beginning balance $ 635,502 $ 452,471 Charge to expense 149,503 158,335 Less: cessation of subsidiaries and disposal of VIE - - Foreign currency translation adjustments (141 ) 24,696 Ending balance $ 784,864 $ 635,502 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2022 June 30, 2021 Buildings $ 1,909,661 $ 8,242,357 Machinery and equipment 28,886 688,979 Motor vehicles 146,883 63,090 Office equipment 186,430 243,543 Leasehold improvement 196,771 - Farmland leasehold improvements 3,315,954 3,256,339 Total property and equipment, gross 5,784,585 12,494,308 Less: accumulated depreciation and amortization (3,472,618 ) (6,556,839 ) Total property and equipment, net 2,311,967 5,937,469 Less: property and equipment, net, held for discontinued operations - 3,683,525 Property and equipment, net held for continuing operations $ 2,311,967 $ 2,253,944 |
SCHEDULE OF LEASEHOLD IMPROVEMENTS | Farmland leasehold improvements consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS March 31, 2022 June 30, 2021 Blueberry farmland leasehold improvements $ 2,547,463 $ 2,501,664 Yew tree planting base reconstruction 285,410 280,279 Greenhouse renovation 483,081 474,396 Total farmland leasehold improvements 3,315,954 3,256,339 Less: farmland leasehold improvement, held for discontinued operations - - Total farmland leasehold improvement, held for continuing operations $ 3,315,954 $ 3,256,339 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF LAND USE RIGHTS | SCHEDULE OF LAND USE RIGHTS March 31, 2022 June 30, 2021 Land use rights $ $ 1,722,396 Less: accumulated amortization - (448,134 ) Total land use rights, net - 1,274,262 Less: land use rights, net, held for discontinued operations - 1,274,262 Land use rights, net, held for continuing operations $ - $ - |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES | The Company’s investments in unconsolidated entities consist of the following: SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES March 31, 2022 June 30, 2021 Gaojing Private Fund $ 609,918 $ Total investment 609,918 - Less: investment, held for discontinued operations - - Investment, held for continuing operations $ 609,918 $ - |
SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS | Summarized financial information of unconsolidated entities from continued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS March 31, 2022 June 30, 2021 Current assets $ 595,565 $ Current liabilities 27,176 - 2021 2020 For the nine months ended 2022 2021 Net sales $ 315,520 $ Gross loss (599 ) - Loss from operations (493,570 ) - Net loss (518,880 ) - Summarized financial information of unconsolidated entities from discontinued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS 2022 2021 For the nine months ended 2022 2021 Net sales $ $ 21,199,520 Gross profit - 1,748,858 Loss from operations - (4,065,801 ) Net loss - (4,091,472 ) |
SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS | Summarized financial information of unconsolidated entities from discontinued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS 2022 2021 For the nine months ended 2022 2021 Net sales $ $ 21,199,520 Gross profit - 1,748,858 Loss from operations - (4,065,801 ) Net loss - (4,091,472 ) |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Leases | |
SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES | The table below presents the operating lease related assets and liabilities from the continuing operations recorded on the balance sheets. No operating lease related assets and liabilities from the discontinued operations. SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES March 31, 2022 June 30, 2021 ROU lease assets $ 4,346,890 $ 3,585,703 Operating lease liabilities – current 966,030 434,411 Operating lease liabilities – non-current 1,405,438 352,863 Total operating lease liabilities $ 2,371,468 $ 787,274 |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES | The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of March 31, 2022 and June 30, 2021 SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES March 31, 2022 June 30, 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 6.87 7.25 Weighted average discount rate 5.30 % 5.00 % |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2022: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Remainder of 2022 $ 675,437 2023 974,464 2024 827,059 2025 394,886 2026 227,617 Thereafter 1,541,996 Total lease payments 4,641,459 Less: imputed interest (365,741 ) Less: prepayments (1,904,250 ) Present value of lease liabilities $ 2,371,468 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM LOANS | Short-term loans as of June 30, 2021 consisted of the following: SCHEDULE OF SHORT-TERM LOANS Lender June 30, 2021 Maturity Date Int. Rate/Year Agricultural Bank of China-a^ 1,548,502 2022/2/27 5.66 % Agricultural Bank of China-b# 309,700 2022/9/1 5.66 % Total short-term loans 1,858,202 Less: short-term loans, held for discontinued operations 1,858,202 Short-term loans, held for continuing operations $ - The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by a commercial credit guaranty company unrelated to the Company and also by Jiping Chen, a stockholder of the Company. b. 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 Xiaoyan Chen but not a shareholder of Ankang Longevity Group. ^ Upon the original maturity date of February 27, 2021 February 27, 2022 5.66% # Upon the original maturity date of September 1, 2021 September 1, 2022 5.66% |
ACQUISITION (Tables)
ACQUISITION (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIVES | The fair value of distribution rights and its estimated useful lives from continuing operations are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES Preliminary Fair Value Weighted Average Useful Life (in Years) Distribution rights $ 1,147,352 - ) (a) The distribution rights with no expiration date has been determined to have an indefinite life. |
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES | The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES Due from related party 108,296 Inventory 19,439,711 Other current assets 224,522 Right of use assets 1,164,976 Long-term investments and other non-current assets 166,107 Other payables and other current assets (4,534,328 ) Operating lease liabilities (1,047,486 ) Total purchase price for acquisition, net of US$ 112,070 $ 15,521,798 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF DUE FROM RELATED PARTIES | As of March 31, 2022 and June 30, 2021, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES March 31, 2022 June 30, 2021 Yang Bin $ 47,306 $ 46,454 Beijing Huiyinansheng Asset Management Co., Ltd (a.) - 23,228 Wang Qiwei 63,864 62,716 Shanghai Gaojing Private Fund Management (b.) 454,133 - Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (c.) 1,790,136 - Zhongjian (Qingdao) International Logistics Development Co., Ltd. (d.) 4,834,140 - Total due from related parties 7,189,579 132,398 Less: due from related parties, held for discontinued operations - - Due from related parties, held for continuing operations $ 7,189,579 $ 132,398 a. This company is wholly owned by one of the Company’s senior managements. b. The Company owns 32% c. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. to with an amount of US$ 1,734,536 11.0 September 16, 2022 6.0% 55,600 55,062 25,544 nine and three months ended March 31, 2022 and 2021 d. On October 28, 2021, the Company entered into a loan agreement with Zhongjian (Qingdao) International Logistics Development Co., Ltd. to with an amount of US$4, 714,785 29.9 October 27, 2022 6.0% 119,355 118,201 69,297 nine and three months ended March 31, 2022 and 2021 |
SCHEDULE OF DUE TO RELATED PARTIES | SCHEDULE OF DUE TO RELATED PARTIES March 31, 2022 June 30, 2021 Wu Yang $ 100,997 $ 99,183 Wang Sai 81 91,433 Zhou Guocong - 551,314 Li Baolin 236,528 232,275 Zhao Min 289,397 185,202 Zhou Shunfang 3,476,957 - Total due to related parties 4,103,960 1,159,407 Less: due to related parties, held for discontinued operations - - Due to related parties, held for continuing operations $ 4,103,960 $ 1,159,407 |
TAXES (Tables)
TAXES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFITS) | i) The components of the income tax expenses were as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFITS) For the nine months ended For the three months ended March 31, 2022 2021 2022 2021 Current income tax benefit $ (6,507 ) $ $ (29 ) $ (83,106 ) Deferred income tax provision - - - - Total income tax benefit $ (6,507 ) $ - $ (29 ) $ (83,106 ) Less: income tax benefit, held for discontinued operations - - - (78,576 ) Income tax benefit, held for continuing operations $ (6,507 ) $ - $ (29 ) $ (4,530 ) |
SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES | SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES March 31, 2022 June 30, 2021 Deferred tax assets: Allowance for doubtful accounts $ 1,172,838 $ 951,136 Inventory reserve 343,896 306,308 Net operating loss carry-forwards 562,696 552,579 Total 2,079,430 1,810,023 Valuation allowance (2,079,430 ) (1,810,023 ) Total deferred tax assets - - Deferred tax liability: Distribution rights (290,929 ) (285,699 ) Total deferred tax liability (290,929 ) (285,699 ) Deferred tax liability, net (290,929 ) (285,699 ) Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ (290,929 ) $ (285,699 ) |
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE | Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE March 31, 2022 June 30, 2021 Beginning balance $ 1,810,023 $ 1,185,655 Current year/period addition 236,270 512,028 Exchange difference 33,137 112,340 Ending balance 2,079,430 1,810,023 Less: valuation allowance, held for discontinued operations - (1,362,329 ) Valuation allowance, held for continuing operations $ 2,079,430 $ 447,694 |
SCHEDULE OF TAXES PAYABLE | Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE March 31, 2022 June 30, 2021 Income tax payable $ 1,572,891 $ 3,376,499 Value added tax payable 45,329 73,390 Business tax and other taxes payable 3,136 8,573 Total tax payable 1,621,356 3,458,462 Less: tax payable, held for discontinued operations - (1,743,673 ) Tax payable, held for continuing operations $ 1,621,356 $ 1,714,789 Income tax payable - current portion $ 1,114,915 $ 2,952,021 Less: income tax payable - current portion, held for discontinued operations - (1,743,673 ) Income tax payable - current portion, held for continuing operations $ 1,114,915 $ 1,208,348 Income tax payable - noncurrent portion $ 506,441 $ 506,441 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 506,441 $ 506,441 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF INFORMATION BY SEGMENT | The following table presents summarized information by segment for the nine months ended March 31, 2022 SCHEDULE OF INFORMATION BY SEGMENT For the nine months ended March 31, 2022 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 43,289 $ 1,937,137 $ 1,980,426 $ $ 1,980,426 Cost of revenue and related business and sales tax 153,508 3,610,896 3,764,404 - 3,764,404 Gross loss (110,219 ) (1,673,759 ) (1,783,978 ) - (1,783,978 ) Gross loss % (254.6 )% (86.4 )% (90.1 )% - (90.1 )% The following table presents summarized information by segment for the nine months ended March 31, 2021 For the nine months ended March 31, 2021 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 96,477 $ 2,338,961 $ 2,435,438 $ 6,761,663 $ 9,197,101 Cost of revenue and related business and sales tax 287,629 5,870,789 6,158,418 5,792,488 11,950,906 Gross profit (loss) (191,152 ) (3,531,828 ) (3,722,980 ) 969,175 (2,753,805 ) Gross profit (loss) % (198.1 )% (151.0 )% (152.9 )% 14.3 % (29.9 )% The following table presents summarized information by segment for the three months ended March 31, 2022 For the three months ended March 31, 2022 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 8,521 $ 609,573 $ 618,094 $ $ 618,094 Cost of revenue and related business and sales tax 3,203 1,107,633 1,110,836 - 1,110,836 Gross profit (loss) 5,318 (498,060 ) (492,742 ) - (492,742 ) Gross profit (loss) % 62.4 % (81.7 )% (79.7 )% - (79.7 )% The following table presents summarized information by segment for the three months ended March 31, 2021: For the three months ended March 31, 2021 Continuing Operations Discontinued Operations Luobuma Other agricultural Herbal products products Total products Total Segment revenue $ 23,468 $ 614,331 $ 637,799 $ 1,352,938 $ 1,990,737 Cost of revenue and related business and sales tax 157,001 1,498,469 1,655,470 1,342,583 2,998,053 Gross profit (loss) (133,533 ) (884,138 ) (1,017,671 ) 10,355 (1,007,316 ) Gross profit (loss) % (569.0 )% (143.9 )% (159.6 )% 0.8 % (50.6 )% Total assets as of March 31, 2022 and June 30, 2021 March 31, 2022 June 30, 2021 Luobuma products $ 31,999,863 $ 3,849,675 Other agricultural products 39,874,605 32,766,151 Herbal products - 24,702,773 Total assets 71,874,468 61,318,599 Less: total assets held for discontinued operations - (24,702,773 ) Total assets, held for continuing operations $ 71,874,468 $ 36,615,826 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF DISCONTINUED OPERATIONS | The carrying amount of the major classes of assets and liabilities of discontinued operations as of March 31, 2022 and June 30, 2021 SCHEDULE OF DISCONTINUED OPERATIONS March 31, 2022 June 30, 2021 Assets of discontinued operation: Current assets: Cash $ - $ 12,681,483 Accounts receivables - 3,473,057 Inventories, net - 281,245 Advances to suppliers, net - 700,348 Other current assets - 2,523,609 Total current assets of discontinued operation - 19,659,742 Property and equipment, net - 3,683,525 Land use right, net of accumulated amortization - 1,274,262 Investments - - Long-term deposit and other noncurrent assets - 85,244 Total assets of discontinued operation $ - $ 24,702,773 Liabilities of discontinued operation: Current liabilities: Short-term loans $ - $ 1,858,202 Accounts payable - 46,948 Other payables and accrued expenses - 1,218,111 Taxes payable - 1,743,673 Total liabilities of discontinued operation $ - $ 4,866,934 |
SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS | The summarized operating result of discontinued operations included in the Company’s consolidated statements of operations consist of the following: SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS 2022 2021 2022 2021 For the Nine Months Ended March 31, For the Three Months Ended 2022 2021 2022 2021 REVENUE $ - $ 6,761,663 $ $ 1,352,938 COST OF REVENUE Cost of product and services - 5,767,915 - 1,336,937 Business and sales related tax - 24,573 - 5,646 Total cost of revenue - 5,792,488 - 1,342,583 GROSS PROFIT - 969,175 - 10,355 OPERATING EXPENSES General and administrative expenses - 7,009,778 - 3,038,177 Selling expenses - 52,764 - 21,355 Total operating expenses - 7,062,542 - 3,059,532 LOSS FROM OPERATIONS - (6,093,367 ) - (3,049,177 ) OTHER EXPENSE Loss from equity method investments - (3,753,280 ) - (1,777,551 ) Other expense, net - (2,154,151 ) - (30,043 ) Interest expense net - (51,034 ) - (8,822 ) Total other expense - (5,958,465 ) - (1,816,416 ) LOSS BEFORE PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (12,051,832 ) - (4,865,593 ) BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - - - (78,576 ) NET LOSS FROM DISCONTINUED OPERATIONS FROM ANKANG GROUP - (12,051,832 ) - (4,787,017 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS (3,135,237 ) - - - NET LOSS FROM DISCONTINUED OPERATIONS (3,135,237 ) (12,051,832 ) - (4,787,017 ) Net loss attributable to non-controlling interest - (702,995 ) - (253,275 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (3,135,237 ) $ (11,348,837 ) $ - $ (4,533,742 ) |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 08, 2021 | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Aug. 22, 2019USD ($) | Mar. 13, 2019USD ($) | Mar. 13, 2019CNY (¥) | Oct. 26, 2017 | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Dec. 10, 2016USD ($) | Dec. 10, 2016CNY (¥) | Jul. 14, 2006 | Dec. 30, 2004 |
Equity ownership interest percentage | 32.00% | ||||||||||||||||
Registered capital | $ 40,326,517 | $ 41,834,442 | $ 45,378,206 | $ 51,844,426 | $ 58,695,475 | $ 66,512,401 | |||||||||||
Runze [Member] | |||||||||||||||||
Registered capital | $ 1,502,650 | ¥ 10,000,000 | |||||||||||||||
Xinjiang Taihe [Member] | |||||||||||||||||
Registered capital | $ 1,502,650 | ¥ 10,000,000 | |||||||||||||||
Tianjin Tajite [Member] | |||||||||||||||||
Equity ownership interest percentage | 51.00% | 51.00% | 51.00% | ||||||||||||||
Registered capital | $ 2,100,000 | ¥ 14,000,000 | |||||||||||||||
Tenjove Newhemp Biotechnology Co., Ltd [Member] | |||||||||||||||||
Registered capital | $ 1,502,650 | ¥ 10,000,000 | |||||||||||||||
Life Science [Member] | |||||||||||||||||
Registered capital | $ 10,000,000 | ||||||||||||||||
Guangyuan [Member] | |||||||||||||||||
Equity ownership interest percentage | 100.00% | ||||||||||||||||
Tenet Jove Technological Development Co Ltd [Member] | |||||||||||||||||
Equity ownership interest percentage | 100.00% | ||||||||||||||||
Tenet Jove Technological Development Co Ltd [Member] | Tianjin Tenet Huatai Technological Development Co Ltd [Member] | |||||||||||||||||
Equity ownership interest percentage | 90.00% |
SCHEDULE OF CONSOLIDATED ASSETS
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Current assets | $ 64,594,468 | $ 64,594,468 | $ 49,278,577 | ||
Plant and equipment, net | 2,311,967 | 2,311,967 | 2,253,944 | ||
Total assets | 71,874,468 | 71,874,468 | 61,318,599 | ||
Total liabilities | (31,547,951) | (31,547,951) | (15,940,393) | ||
Net sales | 618,094 | $ 637,799 | 1,980,426 | $ 2,435,438 | |
Gross loss | (492,742) | (1,017,671) | (1,783,978) | (3,722,980) | |
Loss from operations | (2,727,184) | (3,007,603) | (15,683,769) | (10,372,368) | |
Net loss | (2,892,584) | (7,507,265) | (20,008,627) | (21,583,688) | |
Current assets | 19,659,742 | ||||
Plant and equipment, net | 3,683,525 | ||||
Other non-current assets | 1,359,506 | ||||
Total assets | 24,702,773 | ||||
Total liabilities | (4,866,934) | ||||
Net assets | 19,835,839 | ||||
Net sales | 1,352,938 | 6,761,663 | |||
Gross profit | 10,355 | 969,175 | |||
Loss from operations | (3,049,177) | (6,093,367) | |||
Net loss | (4,787,017) | (3,135,237) | (12,051,832) | ||
Net loss | (2,905,968) | (2,992,736) | (16,898,589) | (10,264,428) | |
Continuing Operations [Member] | |||||
Net sales | 618,094 | 637,799 | 1,980,426 | 2,435,438 | |
Gross loss | (492,742) | (1,017,671) | (1,783,978) | (3,722,980) | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Current assets | 38,921,375 | 38,921,375 | 44,631,744 | ||
Plant and equipment, net | 829,506 | 829,506 | 4,698,184 | ||
Other non-current assets | 3,313,811 | 3,313,811 | 4,894,445 | ||
Total assets | 43,064,692 | 43,064,692 | 54,224,373 | ||
Total liabilities | (8,673,365) | (8,673,365) | (7,377,886) | ||
Net assets | 34,391,327 | 34,391,327 | 46,846,487 | ||
Net sales | 609,573 | 1,967,269 | 1,937,137 | 9,100,624 | |
Gross loss | (498,060) | (873,783) | (1,673,759) | (2,562,653) | |
Loss from operations | (1,027,601) | (5,119,541) | (8,392,455) | (14,234,577) | |
Net loss | (1,014,123) | (6,591,598) | (11,655,014) | (19,443,845) | |
Net sales | 1,352,938 | 6,761,663 | |||
Gross profit | 10,355 | 969,175 | |||
Loss from operations | (3,049,177) | (6,093,367) | |||
Net loss | (4,533,742) | (3,135,237) | (11,348,837) | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Continuing Operations [Member] | |||||
Current assets | 38,921,375 | 38,921,375 | 24,972,002 | ||
Plant and equipment, net | 829,506 | 829,506 | 1,014,659 | ||
Other non-current assets | 3,313,811 | 3,313,811 | 3,534,939 | ||
Total assets | 43,064,692 | 43,064,692 | 29,521,600 | ||
Total liabilities | (8,673,365) | (8,673,365) | (2,510,952) | ||
Net assets | 34,391,327 | 34,391,327 | $ 27,010,648 | ||
Net sales | 609,573 | 614,331 | 1,937,137 | 2,338,961 | |
Gross loss | (498,060) | (884,138) | (1,673,759) | (3,531,828) | |
Loss from operations | (1,027,601) | (2,070,364) | (8,392,455) | (8,141,210) | |
V I Es And Their Subsidiaries [Member] | Continuing Operations [Member] | |||||
Net loss | $ (1,014,123) | $ (2,057,856) | $ (8,519,777) | $ (8,095,008) |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment estimated useful lives | Lesser of useful life and lease term |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 50 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
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 |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 12 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 18 years |
SCHEDULE OF RECONCILIATION OF B
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||||
Net loss from continuing operations attributable to Shineco | $ (2,892,584) | $ (2,973,523) | $ (16,873,390) | $ (10,234,851) |
Net loss from discontinued operations attributable to Shineco | (4,533,742) | (3,135,237) | (11,348,837) | |
Net loss attributable to Shineco | $ (2,892,584) | $ (7,507,265) | $ (20,008,627) | $ (21,583,688) |
Weighted average shares outstanding - basic and diluted | 9,652,228 | 3,184,593 | 9,026,568 | 3,372,327 |
Net loss from continuing operations per share of common share Basic and diluted | $ (0.30) | $ (0.93) | $ (1.87) | $ (3.03) |
Net loss from discontinued operations per share of common share Basic and diluted | (1.42) | (0.35) | (3.37) | |
Net loss per share of common share Basic and diluted | $ (0.30) | $ (2.35) | $ (2.22) | $ (6.40) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 15 Months Ended | ||||
Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($)shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($)shares | Jun. 30, 2018USD ($) | Mar. 31, 2021 | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||
Cash equivalents | $ 0 | $ 0 | $ 0 | |||||
Allowance for doubtful accounts | 7,038,542 | 7,038,542 | 9,635,506 | $ 5,235,436 | ||||
Inventory reserve | 1,332,435 | 1,332,435 | 1,229,158 | |||||
Operating liabilities | 1,405,438 | 1,405,438 | 352,863 | |||||
Right of use assets | 4,346,890 | 4,346,890 | $ 3,585,703 | |||||
Income tax expenses | $ (29) | $ (4,530) | $ (6,507) | $ 744,766 | ||||
Transition tax payment, 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) | |||||||
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 was subject a tax rate of 16%, and after April 1, 2019, the tax rate was further reduced to 13% based on the new Chinese tax law | |||||||
Foreign currency translation applies to balance sheet | 0.1577 | 0.1577 | 0.1549 | |||||
Foreign currency exchange rate translation one | 0.1576 | 0.1542 | 0.1562 | 0.1498 | ||||
Percentage of voting stock | 32.00% | 32.00% | ||||||
Anti-dilutive shares | shares | 0 | 0 | 0 | 0 | ||||
China, Yuan Renminbi | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Foreign currency translation applies to balance sheet | 1 | 1 | 1 | |||||
Foreign currency exchange rate translation one | 1 | 1 | 1 | 1 | ||||
Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
U.S. corporate tax rate | 35.00% | |||||||
Percentage of voting stock | 20.00% | 20.00% | ||||||
Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
U.S. corporate tax rate | 21.00% | |||||||
Percentage of voting stock | 50.00% | 50.00% | ||||||
Land Use Rights [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life | 50 years | |||||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Operating liabilities | $ 500,000 | $ 500,000 | ||||||
Right of use assets | 3,600,000 | 3,600,000 | ||||||
Continuing Operations [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Allowance for doubtful accounts | 7,038,542 | 7,038,542 | $ 5,959,887 | |||||
Inventory reserve | 1,332,435 | 1,332,435 | 1,229,158 | |||||
Uncollectible advances to suppliers | 14,617,066 | 14,617,066 | 9,111,566 | |||||
Discontinued Operations [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Allowance for doubtful accounts | 3,675,619 | |||||||
Inventory reserve | ||||||||
Uncollectible advances to suppliers | 1,773,698 | |||||||
Impairment loss | 0 | $ 0 | 0 | $ 0 | ||||
Uncertain tax positions |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Credit Loss [Abstract] | |||
Accounts receivable | $ 9,367,947 | $ 15,795,234 | |
Less: allowance for doubtful accounts | (7,038,542) | (9,635,506) | $ (5,235,436) |
Accounts receivable, net | 2,329,405 | 6,159,728 | |
Less: accounts receivable, net, held for discontinued operations | 3,473,057 | ||
Accounts receivable, net, held for continuing operations | $ 2,329,405 | $ 2,686,671 |
SCHEDULE OF MOVEMENT OF ALLOWAN
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 9,635,506 | $ 5,235,436 |
Charge to expense | 963,103 | 7,556,516 |
Less: cessation of subsidiaries and disposal of VIE | (3,706,712) | (3,749,735) |
Foreign currency translation adjustments | 146,645 | 593,289 |
Ending balance | $ 7,038,542 | $ 9,635,506 |
SCHEDULE OF INVENTORIES, NET (D
SCHEDULE OF INVENTORIES, NET (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 75,565 | $ 208,253 |
Work-in-process | 21,063,263 | 1,232,787 |
Finished goods | 1,257,089 | 1,392,754 |
Less: inventory reserve | (1,332,435) | (1,229,158) |
Total inventories, net | 21,063,482 | 1,604,636 |
Less: inventories, net, held for discontinued operations | 281,245 | |
Inventories, net, held for continuing operations | $ 21,063,482 | $ 1,323,391 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | ||||
Inventory write down | $ 401,731 | $ 729,029 | $ 1,303,312 | $ 3,358,716 |
SCHEDULE OF ADVANCES TO SUPPLIE
SCHEDULE OF ADVANCES TO SUPPLIERS (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Advances To Suppliers Net | |||
Advances to suppliers | $ 14,933,184 | $ 19,375,738 | |
Less: allowance for doubtful accounts | (14,617,066) | (10,885,264) | $ (3,342,590) |
Advance to supplier, net | 316,118 | 8,490,474 | |
Less: advance to supplier, net, held for discontinued operations | 700,348 | ||
Advance to supplier, net, held for continuing operations | $ 316,118 | $ 7,790,126 |
SCHEDULE OF MOVEMENT OF ALLOW_2
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS ON ADVANCES TO SUPPLIERS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Advances To Suppliers Net | ||
Beginning balance | $ 10,885,264 | $ 3,342,590 |
Charge to expense | 5,287,061 | 9,420,385 |
Less: cessation of subsidiaries and disposal of VIE | (1,788,703) | (2,374,394) |
Foreign currency translation adjustments | 233,444 | 496,683 |
Ending balance | $ 14,617,066 | $ 10,885,264 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Beginning balance | $ 635,502 | $ 452,471 |
Charge to expense | 149,503 | 158,335 |
Less: cessation of subsidiaries and disposal of VIE | ||
Foreign currency translation adjustments | (141) | 24,696 |
Ending balance | $ 784,864 | $ 635,502 |
OTHER CURRENT ASSETS (Details N
OTHER CURRENT ASSETS (Details Narrative) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022USD ($) | Mar. 31, 2022USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Loans to related party, description | the Company entered into three of short-term loan agreements with the Company’s external business partners in an amount of US$12,200,000 for their working capital for one year, with a maturity date of July 25, 2022, September 18, 2022 and September 14, 2022, respectively. The loans bore a fixed annual interest rate of 6.0% and 10.0% | |
Loans to related party | $ 12,200,000 | $ 12,200,000 |
Interest income other | $ 288,986 | $ 700,153 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 5,784,585 | $ 12,494,308 |
Less: accumulated depreciation and amortization | (3,472,618) | (6,556,839) |
Total property and equipment, net | 2,311,967 | 5,937,469 |
Less: property and equipment, net, held for discontinued operations | 3,683,525 | |
Property and equipment, net held for continuing operations | 2,311,967 | 2,253,944 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,909,661 | 8,242,357 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 28,886 | 688,979 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 146,883 | 63,090 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 186,430 | 243,543 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 196,771 | |
Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 3,315,954 | $ 3,256,339 |
SCHEDULE OF LEASEHOLD IMPROVEME
SCHEDULE OF LEASEHOLD IMPROVEMENTS (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Blueberry Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | $ 2,547,463 | $ 2,501,664 |
Yew Tree Planting Base Reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 285,410 | 280,279 |
Greenhouse Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 483,081 | 474,396 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 3,315,954 | 3,256,339 |
Leasehold Improvements [Member] | Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | ||
Leasehold Improvements [Member] | Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | $ 3,315,954 | $ 3,256,339 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Continuing Operations [Member] | ||||
Depreciation and amortization expense | $ 70,170 | $ 81,881 | $ 284,901 | $ 239,121 |
Discontinued Operations [Member] | ||||
Depreciation and amortization expense | $ 53,630 | $ 207,115 |
SCHEDULE OF LAND USE RIGHTS (De
SCHEDULE OF LAND USE RIGHTS (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Land use rights | $ 1,722,396 | |
Less: accumulated amortization | (448,134) | |
Total land use rights, net | 1,274,262 | |
Land use rights, net, held for continuing operations | 1,274,262 | |
Discontinued Operations [Member] | ||
Total land use rights, net | 1,274,262 | |
Land use rights, net, held for continuing operations | 1,274,262 | |
Continuing Operations [Member] | ||
Total land use rights, net | ||
Land use rights, net, held for continuing operations |
LAND USE RIGHTS, NET (Details N
LAND USE RIGHTS, NET (Details Narrative) - Land Use Rights [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 50 years | |||
Continuing Operations [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | ||||
Discontinued Operations [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 9,840 | $ 28,822 |
SCHEDULE OF INVESTMENT IN UNCON
SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Total investment | $ 609,918 | |
Discontinued Operations [Member] | ||
Total investment | ||
Continuing Operations [Member] | ||
Total investment | 609,918 | |
Gaojing Private Fund [Member] | ||
Total investment | $ 609,918 |
SCHEDULE OF FINANCIAL INFORMATI
SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Current assets | $ 64,594,468 | $ 64,594,468 | $ 49,278,577 | ||
Current liabilities | 29,345,143 | 29,345,143 | 14,795,390 | ||
Net sales | 618,094 | $ 637,799 | 1,980,426 | $ 2,435,438 | |
Gross loss | (492,742) | (1,017,671) | (1,783,978) | (3,722,980) | |
Loss from operations | (2,727,184) | (3,007,603) | (15,683,769) | (10,372,368) | |
Net loss | (2,892,584) | (7,507,265) | (20,008,627) | (21,583,688) | |
Net sales | 1,352,938 | 6,761,663 | |||
Gross profit | 10,355 | 969,175 | |||
Loss from operations | (3,049,177) | (6,093,367) | |||
Net loss from discontinued operations | (4,787,017) | (3,135,237) | (12,051,832) | ||
Continuing Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net sales | 618,094 | 637,799 | 1,980,426 | 2,435,438 | |
Gross loss | (492,742) | (1,017,671) | (1,783,978) | (3,722,980) | |
Discontinued Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net sales | 618,094 | 1,990,737 | 1,980,426 | 9,197,101 | |
Gross loss | (492,742) | $ (1,007,316) | (1,783,978) | (2,753,805) | |
Net sales | 21,199,520 | ||||
Gross profit | 1,748,858 | ||||
Loss from operations | (4,065,801) | ||||
Net loss from discontinued operations | (4,091,472) | ||||
Majority-Owned Subsidiary, Unconsolidated [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current assets | 595,565 | 595,565 | |||
Current liabilities | $ 27,176 | 27,176 | |||
Majority-Owned Subsidiary, Unconsolidated [Member] | Continuing Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net sales | 315,520 | ||||
Gross loss | (599) | ||||
Loss from operations | (493,570) | ||||
Net loss | $ (518,880) |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) ¥ in Thousands | Jan. 30, 2022 | Jan. 18, 2022USD ($)shares | Dec. 10, 2020shares | Sep. 05, 2019USD ($)shares | Oct. 21, 2013USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022CNY (¥) | Aug. 31, 2021USD ($) | Aug. 31, 2021CNY (¥) | Mar. 05, 2021USD ($) | Mar. 05, 2021CNY (¥) | Oct. 21, 2013CNY (¥) |
Equity method investment ownership percentage | 32.00% | 32.00% | 32.00% | ||||||||||||
Income loss from equity method investemnts | $ (156,235) | ||||||||||||||
Stock issued during period, shares | shares | 604,900 | 310,977 | |||||||||||||
Stock issued during period, value | $ 1,500,203 | $ 1,093,335 | $ 7,481,203 | 2,736,422 | |||||||||||
Shaanxi Pharmaceutical Group [Member] | |||||||||||||||
Profit sharing on income, percentage | 29.00% | ||||||||||||||
Deductible statutory reserve, percentage | 30.00% | ||||||||||||||
Employee welfare fund, percentage | 10.00% | ||||||||||||||
Statutory reserve, percentage | 0.30 | ||||||||||||||
Zhejiang Zhen Ai Network Warehousing Services Co., Ltd [Member] | |||||||||||||||
Equity method investments | $ 2,200,000 | ¥ 14,500 | |||||||||||||
Gaojing Private Fund [Member] | |||||||||||||||
Equity method investments | $ 750,000 | ¥ 4,800 | |||||||||||||
Equity method investment ownership percentage | 32.00% | 32.00% | 32.00% | ||||||||||||
Income loss from equity method investemnts | $ 49,247 | $ 140,082 | |||||||||||||
Two Equity Investment Agreements [Member] | Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. [Member] | |||||||||||||||
Equity method investment ownership percentage | 49.00% | 49.00% | 49.00% | ||||||||||||
Three Shares Transfer Agreements [Member] | |||||||||||||||
Percentage of issued and outstanding equity interest | 51.00% | ||||||||||||||
Stock issued during period, shares | shares | 700,551 | ||||||||||||||
Stock issued during period, value | $ 8 | ||||||||||||||
Co-operation Agreement [Member] | |||||||||||||||
[custom:AgreementDescription] | The term of the Cooperation Agreement shall be three (3) years commencing from January 30, 2022. In accordance with the Cooperation Agreement, WJM shall be entitled to 30% of the net income generated by the Joint Project while the Company shall be entitled to 70% of the net income thereof and bear 100% of the net losses of the Joint Project | ||||||||||||||
Ankang Retail Chain Co., Ltd [Member] | |||||||||||||||
Income loss from equity method investemnts | 1,777,551 | ||||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Discontinued Operations [Member] | |||||||||||||||
Income loss from equity method investemnts | |||||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Supplemental Agreement [Member] | |||||||||||||||
Income loss from equity method investemnts | 0 | $ 0 | 0 | 0 | |||||||||||
Ankang Retail Chain Co., Ltd [Member] | Supplemental Agreement [Member] | Discontinued Operations [Member] | |||||||||||||||
Income loss from equity method investemnts | 3,753,280 | $ 3,753,280 | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Two Equity Investment Agreements [Member] | |||||||||||||||
Equity method investments | $ 1,000,000 | ¥ 6,860 | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Two Equity Investment Agreements [Member] | Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. [Member] | |||||||||||||||
Equity method investment ownership percentage | 49.00% | 49.00% | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Two Equity Investment Agreements [Member] | Sunsimiao Drugstores [Member] | |||||||||||||||
Equity method investment ownership percentage | 49.00% | 49.00% | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | 2013 [Member] | |||||||||||||||
Equity method investments | $ 1,000,000 | $ 1,000,000 | ¥ 6,800 | ||||||||||||
Ankang Retail Chain Co., Ltd [Member] | 2013 [Member] | Shaanxi Pharmaceutical Group [Member] | |||||||||||||||
Equity method investment ownership percentage | 7.00% | 7.00% | 7.00% | ||||||||||||
Ankang Retail Chain Co., Ltd [Member] | 2013 [Member] | Supplemental Agreement [Member] | |||||||||||||||
Equity method investment ownership percentage | 49.00% | 49.00% | 49.00% | ||||||||||||
Guangyuan [Member] | |||||||||||||||
Equity method investments | $ 300,000 | $ 300,000 | |||||||||||||
Equity method investment ownership percentage | 20.00% | 20.00% | 20.00% | ||||||||||||
Income loss from equity method investemnts | $ 16,153 | ||||||||||||||
Guangyuan [Member] | Zhejiang Zhen Ai Network Warehousing Services Co., Ltd [Member] | |||||||||||||||
Equity method investments | ¥ | ¥ 2,000 |
SCHEDULE OF OPERATING LEASE REL
SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Leases | ||
ROU lease assets | $ 4,346,890 | $ 3,585,703 |
Operating lease liabilities – current | 966,030 | 434,411 |
Operating lease liabilities – non-current | 1,405,438 | 352,863 |
Total operating lease liabilities | $ 2,371,468 | $ 787,274 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES (Details) | Mar. 31, 2022 | Jun. 30, 2021 |
Leases | ||
Weighted average remaining lease term (years) | 6 years 10 months 13 days | 7 years 3 months |
Weighted average discount rate | 5.30% | 5.00% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Leases | ||
Remainder of 2022 | $ 675,437 | |
2023 | 974,464 | |
2024 | 827,059 | |
2025 | 394,886 | |
2026 | 227,617 | |
Thereafter | 1,541,996 | |
Total lease payments | 4,641,459 | |
Less: imputed interest | (365,741) | |
Less: prepayments | (1,904,250) | |
Present value of lease liabilities | $ 2,371,468 | $ 787,274 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Operating lease ROU assets | $ 4,346,890 | $ 4,346,890 | $ 3,585,703 | ||
Operating lease liabilities | 2,371,468 | 2,371,468 | $ 787,274 | ||
Continuing Operations [Member] | |||||
Rent expenses | 229,477 | $ 112,171 | 693,684 | $ 337,128 | |
Discontinued Operations [Member] | |||||
Rent expenses | |||||
Offices Space [Member] | Minimum [Member] | |||||
Lessee, Operating Lease, Term of Contract | 3 years | 3 years | |||
Offices Space [Member] | Maximum [Member] | |||||
Lessee, Operating Lease, Term of Contract | 24 years | 24 years | |||
Other Liabilities [Member] | |||||
Operating lease ROU assets | $ 3,587,788 | $ 3,587,788 | |||
Operating lease liabilities | $ 450,123 | $ 450,123 |
SCHEDULE OF SHORT-TERM LOANS (D
SCHEDULE OF SHORT-TERM LOANS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | ||
Short-Term Debt [Line Items] | |||
Total short-term loans | $ 1,858,202 | ||
Discontinued Operations [Member] | |||
Short-Term Debt [Line Items] | |||
Total short-term loans | 1,858,202 | ||
Continuing Operations [Member] | |||
Short-Term Debt [Line Items] | |||
Total short-term loans | |||
Agricultural Bank of China One [Member] | |||
Short-Term Debt [Line Items] | |||
Total short-term loans | [1] | $ 1,548,502 | |
Maturity Date | [1] | Feb. 27, 2022 | |
Int. Rate/Year | [1] | 5.66% | |
Agricultural Bank of China One [Member] | Loan Extension Agreement [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity Date | Feb. 27, 2021 | ||
Agricultural Bank of China Two [Member] | |||
Short-Term Debt [Line Items] | |||
Total short-term loans | [2] | $ 309,700 | |
Maturity Date | [2] | Sep. 1, 2022 | |
Int. Rate/Year | [2] | 5.66% | |
Agricultural Bank of China Two [Member] | Loan Extension Agreement [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity Date | Sep. 1, 2021 | ||
Debt instrument, maturity date, description | Upon the original maturity date of September 1, 2021, the Company signed a loan extension agreement with Agricultural Bank of China to extend the loan repayment date to September 1, 2022 with the same interest rate of 5.66% per annum. | ||
[1] | Guaranteed by a commercial credit guaranty company unrelated to the Company and also by Jiping Chen, a stockholder of the Company. | ||
[2] | 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 Xiaoyan Chen but not a shareholder of Ankang Longevity Group. |
SCHEDULE OF SHORT-TERM LOANS _2
SCHEDULE OF SHORT-TERM LOANS (Details) (Parenthetical) | 12 Months Ended | |
Jun. 30, 2021 | ||
Agricultural Bank of China One [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument, maturity date | Feb. 27, 2022 | [1] |
Short-term debt, weighted average interest rate, at point in time | 5.66% | [1] |
Agricultural Bank of China One [Member] | Loan Extension Agreement [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument, maturity date | Feb. 27, 2021 | |
Agricultural Bank of China Two [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument, maturity date | Sep. 1, 2022 | [2] |
Short-term debt, weighted average interest rate, at point in time | 5.66% | [2] |
Agricultural Bank of China Two [Member] | Loan Extension Agreement [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument, maturity date | Sep. 1, 2021 | |
[1] | Guaranteed by a commercial credit guaranty company unrelated to the Company and also by Jiping Chen, a stockholder of the Company. | |
[2] | 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 Xiaoyan Chen but not a shareholder of Ankang Longevity Group. |
SHORT-TERM LOANS (Details Narra
SHORT-TERM LOANS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Weighted average interest rate | 5.50% | 5.50% | 5.36% | ||
Continuing Operations [Member] | |||||
Interest expense | |||||
Discontinued Operations [Member] | |||||
Interest expense | $ 25,627 | $ 88,894 |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES (Details) - USD ($) | Dec. 12, 2016 | Mar. 31, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Preliminary Fair Value | $ 1,142,794 | |||
Tianjin Tenet [Member] | Distribution Rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Preliminary Fair Value | $ 1,147,352 | |||
Weighted Average Useful Life | [1] | 0 years | ||
[1] | The distribution rights with no expiration date has been determined to have an indefinite life. |
SUMMARIZES THE ALLOCATION OF ES
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) | Mar. 31, 2022USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Due from related party | $ 108,296 |
Inventory | 19,439,711 |
Other current assets | 224,522 |
Right of use assets | 1,164,976 |
Long-term investments and other non-current assets | 166,107 |
Other payables and other current assets | (4,534,328) |
Operating lease liabilities | (1,047,486) |
Total purchase price for acquisition, net of US$ 112,070 of cash | $ 15,521,798 |
SUMMARIZES THE ALLOCATION OF _2
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) (Parenthetical) | Dec. 31, 2021USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 112,070 |
ACQUISITION (Details Narrative)
ACQUISITION (Details Narrative) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Oct. 26, 2017USD ($) | Oct. 26, 2017CNY (¥) | Dec. 12, 2016 |
Business Acquisition [Line Items] | |||||||||
Business combination acquisition related costs | |||||||||
Net loss | (2,892,584) | $ (7,507,265) | (20,008,627) | $ (21,583,688) | |||||
Tianjin Tajite [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquire equity interest percentage | 51.00% | ||||||||
Business acquisition consideration amount | ¥ 14,000,000 | $ 2,100,000 | |||||||
Goodwill | $ 2,100,000 | ¥ 14,010,195 | |||||||
Guangyuan Forest Development Co Ltd [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Net sales | 22,331 | 22,331 | |||||||
Net loss | $ 71,250 | $ 694,051 |
SCHEDULE OF DUE FROM RELATED PA
SCHEDULE OF DUE FROM RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | ||
Related Party Transaction [Line Items] | ||||||
Due from related parties | $ 7,189,579 | $ 7,189,579 | $ 132,398 | |||
Discontinued Operations [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | ||||||
Continuing Operations [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | 7,189,579 | 7,189,579 | 132,398 | |||
Yang Bin [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | 47,306 | 47,306 | 46,454 | |||
Beijing Huiyinansheng Asset Management Co., Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | [1] | 23,228 | ||||
Wang Qiwei [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | 63,864 | 63,864 | 62,716 | |||
Shanghai Gaojing Private Fund Management [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | [2] | 454,133 | 454,133 | |||
Zhongjian Yijia Health Technology Co Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | [3] | 1,790,136 | 1,790,136 | |||
Investment income, interest | 25,544 | $ 25,544 | 55,062 | $ 55,062 | ||
Zhongjian International Logistics Development Co Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | [4] | 4,834,140 | 4,834,140 | |||
Investment income, interest | $ 69,297 | $ 69,297 | $ 118,201 | $ 118,201 | ||
[1] | This company is wholly owned by one of the Company’s senior managements. | |||||
[2] | The Company owns 32% | |||||
[3] | On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. to with an amount of US$ 1,734,536 11.0 September 16, 2022 6.0% 55,600 55,062 25,544 nine and three months ended March 31, 2022 and 2021 | |||||
[4] | On October 28, 2021, the Company entered into a loan agreement with Zhongjian (Qingdao) International Logistics Development Co., Ltd. to with an amount of US$4, 714,785 29.9 October 27, 2022 6.0% 119,355 118,201 69,297 nine and three months ended March 31, 2022 and 2021 |
SCHEDULE OF DUE FROM RELATED _2
SCHEDULE OF DUE FROM RELATED PARTIES (Details) (Parenthetical) ¥ in Millions | Oct. 28, 2021USD ($) | Sep. 17, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Oct. 28, 2021CNY (¥) | Sep. 17, 2021CNY (¥) |
Related Party Transaction [Line Items] | ||||||||
Equity ownership interest percentage | 32.00% | 32.00% | ||||||
Zhongjian Yijia Health Technology Co Ltd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Working capital | $ 1,734,536 | ¥ 11 | ||||||
Maturity date | Sep. 16, 2022 | |||||||
Fixed annual interest rate | 6.00% | 6.00% | ||||||
Interest Receivable | $ 55,600 | $ 55,600 | ||||||
Investment income, interest | 25,544 | $ 25,544 | 55,062 | $ 55,062 | ||||
Zhongjian International Logistics Development Co Ltd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Working capital | $ 714,785 | ¥ 29.9 | ||||||
Maturity date | Oct. 27, 2022 | |||||||
Fixed annual interest rate | 6.00% | 6.00% | ||||||
Interest Receivable | 119,355 | 119,355 | ||||||
Investment income, interest | $ 69,297 | $ 69,297 | $ 118,201 | $ 118,201 |
SCHEDULE OF DUE TO RELATED PART
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 4,103,960 | $ 1,159,407 |
Discontinued Operations [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | ||
Continuing Operations [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 4,103,960 | 1,159,407 |
Wu Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 100,997 | 99,183 |
Wang Sai [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 81 | 91,433 |
Zhou Guocong [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 551,314 | |
Li Baolin [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 236,528 | 232,275 |
Zhao Min [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 289,397 | 185,202 |
Zhao Shunfang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 3,476,957 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 4,103,960 | $ 4,103,960 | $ 1,159,407 | ||
Discontinued Operations [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | |||||
Shaanxi Pharmaceutical Group [Member] | Discontinued Operations [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 311,249 | $ 1,606,448 | |||
Accounts receivable related parties | $ 551,237 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | Aug. 19, 2021 | Jul. 16, 2021 | Jun. 16, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 |
Short-Term Debt [Line Items] | ||||||||
Proceeds from convertible debt | $ 17,000,000 | |||||||
Amortization of financing costs | $ 287,897 | $ 1,142,215 | ||||||
Common stock shares issued | 9,869,134 | 9,869,134 | 7,881,482 | |||||
Investor [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Amortization of financing costs | $ 287,897 | $ 1,142,215 | ||||||
Common stock shares issued | 1,695,877 | 1,695,877 | ||||||
Debt instrument periodic payment | $ 7,250,000 | |||||||
Notes balance | $ 14,092,753 | 14,092,753 | ||||||
Debt instrument carrying amount | 14,438,760 | 14,438,760 | ||||||
Other deferred costs net | $ 346,007 | $ 346,007 | ||||||
Securities Purchase Agreement [Member] | Unsecured Convertible Promissory Note [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt instrument face amount | $ 10,520,000 | $ 3,170,000 | $ 3,170,000 | |||||
Proceeds from convertible debt | 10,000,000 | 3,000,000 | 3,000,000 | |||||
Debt instrument unamortized discount | 500,000 | 150,000 | 150,000 | |||||
Legal fees | $ 20,000 | $ 20,000 | $ 20,000 | |||||
Debt instrument, term | 1 year | 1 year | ||||||
Interest rate | 6.00% | |||||||
Debt description | The Investor may redeem all or any part of the outstanding balance of the note, at any time after six months from the issue date upon three trading days’ notice, in cash or converting into shares of the Company’s common stock at a price equal to 80% multiplied by the lowest daily volume weighted average price (“VWAP”) during the fifteen trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the note. Following the receipt of a redemption notice, the Company may either ratify Investor’s proposed allocation in the applicable redemption notice or elect to change the allocation by written notice to Investor within twenty-four (24) hours of its receipt of such redemption notice, so long as the sum of the cash payments and the amount of redemption conversions equal the applicable redemption amount | |||||||
Securities Purchase Agreement [Member] | Second Convertible Promissory Note [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt instrument face amount | $ 4,200,000 | |||||||
Proceeds from convertible debt | 4,000,000 | |||||||
Securities Purchase Agreement [Member] | Second Convertible Promissory Note [Member] | Investor [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt instrument unamortized discount | $ 200,000 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFITS) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Current income tax benefit | $ (29) | $ (83,106) | $ (6,507) | ||
Deferred income tax provision | |||||
Total income tax benefit | (29) | (83,106) | (6,507) | ||
Less: income tax benefit, held for discontinued operations | (78,576) | ||||
Income tax benefit, held for continuing operations | $ (29) | $ (4,530) | $ (6,507) | $ 744,766 |
SCHEDULE OF FINANCIAL REPORTING
SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | |||
Allowance for doubtful accounts | $ 1,172,838 | $ 951,136 | |
Inventory reserve | 343,896 | 306,308 | |
Net operating loss carry-forwards | 562,696 | 552,579 | |
Total | 2,079,430 | 1,810,023 | |
Valuation allowance | (2,079,430) | (1,810,023) | $ (1,185,655) |
Total deferred tax assets | |||
Distribution rights | (290,929) | (285,699) | |
Total deferred tax liability | (290,929) | (285,699) | |
Deferred tax liability, net | (290,929) | (285,699) | |
Less: deferred tax liability, net, held for discontinued operations | |||
Deferred tax liability, net, held for continuing operations | $ (290,929) | $ (285,699) |
SCHEDULE OF MOVEMENT OF VALUATI
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 1,810,023 | $ 1,185,655 |
Current year addition | 236,270 | 512,028 |
Exchange difference | 33,137 | 112,340 |
Ending balance | 2,079,430 | 1,810,023 |
Valuation allowance, held for discontinued operations | (1,362,329) | |
Valuation allowance held for continuing operations | $ 2,079,430 | $ 447,694 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 1,572,891 | $ 3,376,499 |
Value added tax payable | 45,329 | 73,390 |
Business tax and other taxes payable | 3,136 | 8,573 |
Total tax payable | 1,621,356 | 3,458,462 |
Less: tax payable, held for discontinued operations | (1,743,673) | |
Tax payable, held for continuing operations | 1,621,356 | 1,714,789 |
Income tax payable - current portion | 1,114,915 | 2,952,021 |
Less: income tax payable - current portion, held for discontinued operations | (1,743,673) | |
Income tax payable - current portion, held for continuing operations | 1,114,915 | 1,208,348 |
Income tax payable - noncurrent portion | 506,441 | 506,441 |
Less: income tax payable - noncurrent portion, held for discontinued operations | ||
Income tax payable - noncurrent portion, held for continuing operations | $ 506,441 | $ 506,441 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | ||||
Estimated income tax expense | $ (29) | $ (4,530) | $ (6,507) | $ 744,766 | |
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). | ||||
Value added tax rate, description | The applicable VAT rate was 17% before May 1, 2018 for products sold in the PRC and decreased to 16% thereafter, and after April 1, 2019, the tax rate was further reduced to 13% 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. | ||||
Tax penalties | $ 0 | $ 0 | $ 0 | $ 0 |
NOTE 17 - STOCKHOLDERS_ EQUITY
NOTE 17 - STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Dec. 06, 2021 | Nov. 26, 2021 | Apr. 10, 2021 | Jan. 27, 2021 | Dec. 10, 2020 | Jul. 10, 2020 | Sep. 05, 2019 | Sep. 03, 2019 | Sep. 28, 2016 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Aug. 14, 2020 | ||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Shares issued | 604,900 | 310,977 | ||||||||||||||
Common stock at a price | $ 2.73 | $ 4.68 | $ 5.54 | |||||||||||||
Gross proceeds from initial public offering, value | $ 1,500,203 | $ 1,093,335 | $ 7,481,203 | $ 2,736,422 | ||||||||||||
Statutory surplus reserve percentage | 10.00% | |||||||||||||||
Registered capital reserve | 50.00% | |||||||||||||||
Statutory reserves | $ 4,198,107 | $ 4,198,107 | ||||||||||||||
Number of restricted shares granted | 982,500 | 184,763 | ||||||||||||||
Number of restricted shares granted, value | $ 1,022,660 | |||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||||||||||
Common stock, shares outstanding | 9,869,134 | 7,881,482 | ||||||||||||||
Gross proceeds | $ 1,643,087 | $ 7,481,203 | $ 2,736,422 | |||||||||||||
Securities Purchase Agreement [Member] | G H S Investments L L C [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Gross proceeds | $ 2,000,000 | |||||||||||||||
Sale of stock | 291,775 | |||||||||||||||
Share price | $ 6.8546 | |||||||||||||||
Net proceeds from sale of stock | $ 1,970,000 | |||||||||||||||
Three Investors [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Shares issued | 364,445 | |||||||||||||||
Common stock at a price | $ 3 | |||||||||||||||
Gross proceeds | $ 1,093,355 | |||||||||||||||
Selected Investors [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Shares issued | 3,872,194 | |||||||||||||||
Common stock at a price | $ 3.2 | |||||||||||||||
Gross proceeds | $ 7,981,204 | |||||||||||||||
Related party transaction due from to related party | $ 3,024,000 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Shares issued | 364,445 | 291,775 | [1] | 969,345 | [1] | |||||||||||
Gross proceeds from initial public offering, value | $ 364 | $ 292 | $ 969 | |||||||||||||
Reverse stock split description | 1-for-9 reverse stock split | |||||||||||||||
Common stock, par value | $ 0.001 | |||||||||||||||
Common stock, shares authorized | 100,000,000 | |||||||||||||||
Reverse stock split, par value | $ 0.001 | |||||||||||||||
Common stock, shares outstanding | 27,333,428 | |||||||||||||||
Common Stock [Member] | After Reverse Stock Split [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock, shares outstanding | 3,037,048 | |||||||||||||||
IPO [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Shares issued | 190,354 | |||||||||||||||
Common stock at a price | $ 40.50 | |||||||||||||||
Gross proceeds from initial public offering, value | $ 7,700,000 | |||||||||||||||
Net proceeds from initial public offering, net of offering costs | $ 5,400,000 | |||||||||||||||
[1] | Retrospectively restated for effect of stock split on August 14, 2020. |
CONCENTRATIONS AND RISKS (Detai
CONCENTRATIONS AND RISKS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 81.00% | 81.00% | 76.00% | ||
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 62.00% | ||||
Continuing Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 75.00% | ||||
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 92.00% | 95.00% | |||
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 83.00% | 89.00% | |||
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 17.00% | 11.00% | |||
Discontinued Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Six Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | |||
Discontinued Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Six Vendors [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | |||
CHINA | |||||
Concentration Risk [Line Items] | |||||
Assets, percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Revenue, percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
CHINA | Continuing Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Cash | $ 15,473,414 | $ 15,473,414 | $ 16,333,102 | ||
CHINA | Discontinued Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Cash | $ 12,676,416 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) ¥ in Millions | Nov. 26, 2021USD ($)shares | Sep. 03, 2019shares | May 16, 2017USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Jun. 30, 2021USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Damages amount | $ 9,000,000 | $ 6,000,000 | |||||
Punitive damages | $ 10,000,000 | ||||||
Restricted stock issued | shares | 982,500 | 184,763 | |||||
Subscription receivable | $ 3,024,000 | $ 3,024,000 | $ 8,535,203 | ||||
Settlement Agreement and Release [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Payment to plantiff | $ 47,500 | ||||||
Loss contingency accrual | $ 784,120 | ¥ 5 |
SCHEDULE OF INFORMATION BY SEGM
SCHEDULE OF INFORMATION BY SEGMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Segment revenue | $ 618,094 | $ 637,799 | $ 1,980,426 | $ 2,435,438 | |
Cost of revenue and related business and sales tax | 1,110,836 | 1,655,470 | 3,764,404 | 6,158,418 | |
Gross profit (loss) | (492,742) | (1,017,671) | (1,783,978) | (3,722,980) | |
Total assets | 71,874,468 | 71,874,468 | $ 61,318,599 | ||
Less: total assets held for discontinued operations | (24,702,773) | ||||
Total assets, held for continuing operations | 71,874,468 | 71,874,468 | 36,615,826 | ||
Continuing Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 618,094 | 637,799 | 1,980,426 | 2,435,438 | |
Cost of revenue and related business and sales tax | 1,110,836 | 1,655,470 | 3,764,404 | 6,158,418 | |
Gross profit (loss) | $ (492,742) | $ (1,017,671) | $ (1,783,978) | $ (3,722,980) | |
Gross loss percentage | (79.70%) | (159.60%) | (90.10%) | (152.90%) | |
Discontinued Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | $ 618,094 | $ 1,990,737 | $ 1,980,426 | $ 9,197,101 | |
Cost of revenue and related business and sales tax | 1,110,836 | 2,998,053 | 3,764,404 | 11,950,906 | |
Gross profit (loss) | $ (492,742) | $ (1,007,316) | $ (1,783,978) | $ (2,753,805) | |
Gross loss percentage | (79.70%) | (50.60%) | (90.10%) | (29.90%) | |
Luobuma Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 31,999,863 | $ 31,999,863 | 3,849,675 | ||
Luobuma Products [Member] | Continuing Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 8,521 | $ 23,468 | 43,289 | $ 96,477 | |
Cost of revenue and related business and sales tax | 3,203 | 157,001 | 153,508 | 287,629 | |
Gross profit (loss) | $ 5,318 | $ (133,533) | $ (110,219) | $ (191,152) | |
Gross loss percentage | 62.40% | (569.00%) | (254.60%) | (198.10%) | |
Other Agricultural Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 39,874,605 | $ 39,874,605 | 32,766,151 | ||
Other Agricultural Products [Member] | Continuing Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 609,573 | $ 614,331 | 1,937,137 | $ 2,338,961 | |
Cost of revenue and related business and sales tax | 1,107,633 | 1,498,469 | 3,610,896 | 5,870,789 | |
Gross profit (loss) | $ (498,060) | $ (884,138) | $ (1,673,759) | $ (3,531,828) | |
Gross loss percentage | (81.70%) | (143.90%) | (86.40%) | (151.00%) | |
Herbal Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 24,702,773 | ||||
Herbal Products [Member] | Discontinued Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | $ 1,352,938 | $ 6,761,663 | |||
Cost of revenue and related business and sales tax | 1,342,583 | 5,792,488 | |||
Gross profit (loss) | $ 10,355 | $ 969,175 | |||
Gross loss percentage | 0.80% | 14.30% |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 9 Months Ended |
Mar. 31, 2022Integer | |
Segment Reporting [Abstract] | |
Operating segments | 3 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 |
Current assets: | |||
Cash | $ 12,681,483 | $ 11,997,106 | |
Accounts receivables | 3,473,057 | ||
Inventories, net | 281,245 | ||
Advances to suppliers, net | 700,348 | ||
Other current assets | 2,523,609 | ||
Current assets | 19,659,742 | ||
Property and equipment, net | 3,683,525 | ||
Land use right, net of accumulated amortization | 1,274,262 | ||
Investments | |||
Long-term deposit and other noncurrent assets | 85,244 | ||
Total assets of discontinued operation | 24,702,773 | ||
Current liabilities: | |||
Short-term loans | 1,858,202 | ||
Accounts payable | 46,948 | ||
Other payables and accrued expenses | 1,218,111 | ||
Taxes payable | 1,743,673 | ||
Total liabilities of discontinued operation | $ 4,866,934 |
SCHEDULE OF DISPOSAL GROUP INCL
SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUE | $ 1,352,938 | $ 6,761,663 | ||
Total cost of revenue | 1,342,583 | 5,792,488 | ||
GROSS PROFIT | 10,355 | 969,175 | ||
General and administrative expenses | 3,038,177 | 7,009,778 | ||
Selling expenses | 21,355 | 52,764 | ||
Total operating expenses | 3,059,532 | 7,062,542 | ||
LOSS FROM OPERATIONS | (3,049,177) | (6,093,367) | ||
Loss from equity method investments | (1,777,551) | (3,753,280) | ||
Other expense, net | (30,043) | (2,154,151) | ||
Interest expense net | (8,822) | (51,034) | ||
Total other expense | (1,816,416) | (5,958,465) | ||
LOSS BEFORE PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (4,865,593) | (12,051,832) | ||
BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (78,576) | |||
NET LOSS FROM DISCONTINUED OPERATIONS FROM ANKANG GROUP | (4,787,017) | (12,051,832) | ||
LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS | (3,135,237) | |||
NET LOSS FROM DISCONTINUED OPERATIONS | (4,787,017) | (3,135,237) | (12,051,832) | |
Net loss attributable to non-controlling interest | (253,275) | (702,995) | ||
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (4,533,742) | (3,135,237) | (11,348,837) | |
Cost Of Product And Service [Member] | ||||
Total cost of revenue | 1,336,937 | 5,767,915 | ||
Business And Sales Related Tax [Member] | ||||
Total cost of revenue | $ 5,646 | $ 24,573 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) | Mar. 31, 2022 | Jun. 08, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Equity ownership interest percentage | 32.00% | |
Guangyuan [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Equity ownership interest percentage | 100.00% | |
Mr. Jiping Chen [Member] | Ankang Longevity [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Equity ownership interest percentage | 68.70% | |
Ms. Xiaoyan Chen [Member] | Ankang Longevity [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Equity ownership interest percentage | 31.30% | |
Mr. Baolin Li [Member] | Guangyuan [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Equity ownership interest percentage | 90.00% | |
Ms. Yufeng Zhang [Member] | Guangyuan [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Equity ownership interest percentage | 10.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Securites Purchase Agreement [Member] | Apr. 11, 2022USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |
Sale of stock, shares | shares | 973,451 |
Sale of stock, price per share | $ / shares | $ 2.26 |
Sale of stock, value | $ | $ 2,200,000 |