Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Sep. 27, 2022 | Dec. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2022 | ||
Document Fiscal Period Focus | FY | ||
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 1001, Building T5, DaZu Square | ||
Entity Address, Address Line Two | Daxing District | ||
Entity Address, City or Town | Beijing | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 100176 | ||
City Area Code | +86 | ||
Local Phone Number | 10-87227366 | ||
Title of 12(b) Security | Common stock, $0.001 par value | ||
Trading Symbol | SISI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 61,230,076.1 | ||
Entity Common Stock, Shares Outstanding | 16,397,356 | ||
Auditor Firm ID | 6783 | ||
Auditor Name | Centurion ZD CPA& Co. | ||
Auditor Location | Hong Kong, China |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 15,165,231 | $ 16,342,911 |
Accounts receivable, net | 1,821,554 | 2,686,671 |
Due from related parties | 6,794,987 | 132,398 |
Inventories, net | 18,718,524 | 1,323,391 |
Advances to suppliers, net | 3,551 | 7,790,126 |
Other current assets | 17,231,578 | 1,343,338 |
Current assets held for discontinued operations | 19,659,742 | |
TOTAL CURRENT ASSETS | 59,735,425 | 49,278,577 |
Property and equipment, net | 1,375,472 | 2,253,944 |
Land use right, net of accumulated amortization | ||
Investments | 617,446 | |
Distribution rights | 1,142,794 | |
Long-term deposit and other noncurrent assets | 9,525 | 14,550 |
Right of use assets | 2,088,149 | 3,585,703 |
Non-current assets held for discontinued operations | 5,043,031 | |
TOTAL ASSETS | 63,826,017 | 61,318,599 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,547 | 76,584 |
Advances from customers | 6,676 | 7,468 |
Due to related parties | 2,798,800 | 1,159,407 |
Other payables and accrued expenses | 10,272,194 | 4,109,208 |
Operating lease liabilities - current | 959,909 | 434,411 |
Convertible note payable | 14,416,956 | 2,933,030 |
Taxes payable | 584,220 | 1,208,348 |
Current liabilities held for discontinued operations | 4,866,934 | |
TOTAL CURRENT LIABILITIES | 29,040,302 | 14,795,390 |
Income tax payable - noncurrent portion | 446,860 | 506,441 |
Operating lease liabilities - non-current | 1,025,967 | 352,863 |
Deferred tax liability | 285,699 | |
TOTAL LIABILITIES | 30,513,129 | 15,940,393 |
Commitments and contingencies | ||
EQUITY: | ||
Common stock; par value $0.001, 100,000,000 shares authorized; 10,983,863 and 7,881,482 shares issued and outstanding at June 30, 2022 and 2021 | 10,984 | 7,881 |
Additional paid-in capital | 52,998,924 | 41,105,806 |
Subscription receivable | (3,024,000) | (8,535,203) |
Statutory reserve | 4,198,107 | 4,198,107 |
Retained earnings (accumulated deficit) | (18,372,023) | 8,661,071 |
Accumulated other comprehensive loss | (2,100,756) | (731,805) |
Total Stockholders’ equity of Shineco, Inc. | 33,711,236 | 44,705,857 |
Non-controlling interest | (398,348) | 672,349 |
TOTAL EQUITY | 33,312,888 | 45,378,206 |
TOTAL LIABILITIES AND EQUITY | $ 63,826,017 | $ 61,318,599 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 | 10,983,863 | 7,881,482 |
Common stock, shares outstanding | 10,983,863 | 7,881,482 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
REVENUE | $ 2,186,460 | $ 3,021,704 |
COST OF REVENUE | ||
Cost of product and services | 2,222,880 | 3,309,398 |
Stock written off due to natural disaster | 1,574,241 | 3,942,784 |
Business and sales related tax | 2 | 5,673 |
Total cost of revenue | 3,797,123 | 7,257,855 |
GROSS LOSS | (1,610,663) | (4,236,151) |
OPERATING EXPENSES | ||
General and administrative expenses | 20,216,802 | 17,131,400 |
Selling expenses | 43,197 | 45,384 |
Impairment loss of distribution rights | 1,140,551 | |
Total operating expenses | 21,400,550 | 17,176,784 |
LOSS FROM OPERATIONS | (23,011,213) | (21,412,935) |
OTHER INCOME (EXPENSE) | ||
Impairment loss on an unconsolidated entity | (165,349) | |
Loss from equity method investment | (132,554) | |
Other income (expenses), net | 51,253 | (55,746) |
Amortization of debt issuance costs | (1,379,777) | |
Interest income (expenses), net | (288,370) | 29,236 |
Total other loss | (1,914,797) | (26,510) |
LOSS BEFORE PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS | (24,926,010) | (21,439,445) |
BENEFIT FOR INCOME TAXES | (292,266) | |
NET LOSS FROM CONTINUING OPERATIONS | (24,633,744) | (21,439,445) |
DISCONTINUED OPERATIONS: | ||
Loss from discontinued operations, net of taxes | (10,616,988) | |
Loss on disposal of discontinued operations | (2,433,395) | |
Net loss from discontinued operations | (2,433,395) | (10,616,988) |
Net loss | (27,067,139) | (32,056,433) |
Net loss attributable to non-controlling interest | (34,045) | (610,986) |
NET LOSS ATTRIBUTABLE TO SHINECO, INC. | (27,033,094) | (31,445,447) |
COMPREHENSIVE LOSS | ||
Other comprehensive income (loss): foreign currency translation income (loss) | (1,332,936) | 5,648,845 |
Total comprehensive loss | (28,400,075) | (26,407,588) |
Less: comprehensive income (loss) attributable to non-controlling interest | 1,970 | (514,171) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO SHINECO, INC. | $ (28,402,045) | $ (25,893,417) |
Weighted average number of shares basic and diluted | 9,458,077 | 4,401,048 |
Net loss per common share - basic and diluted | $ (2.86) | $ (7.14) |
Loss per common share | ||
Continuing operations - Basic and Diluted | (2.60) | (4.86) |
Discontinued operations - Basic and Diluted | $ (0.26) | $ (2.28) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - 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 | $ 4,841 | (8,535,203) | 13,736,785 | 5,206,423 | |||||
Stock issuance, shares | [1] | 4,841,539 | |||||||
Beneficial conversion feature associated with convertible notes | 66,970 | 66,970 | |||||||
Net Income (Loss) | (31,445,447) | (610,986) | (32,056,433) | ||||||
Foreign currency translation gain (loss) | 5,552,030 | 96,815 | 5,648,845 | ||||||
Ending 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 | |
Ending balance, shares at Jun. 30, 2021 | [1] | 7,881,482 | |||||||
Stock issuance | $ 1,265 | 5,511,203 | 4,168,702 | 9,681,170 | |||||
Stock issuance, shares | [1] | 1,265,226 | |||||||
Net Income (Loss) | (27,033,094) | (34,045) | (27,067,139) | ||||||
Foreign currency translation gain (loss) | (1,368,951) | 36,015 | (1,332,936) | ||||||
Issuance of common shares for convertible notes redemption | $ 1,838 | 7,363,164 | 7,365,002 | ||||||
Issuance of common shares for convertible notes redemption, shares | [1] | 1,837,155 | |||||||
Beneficial conversion feature associated with convertible notes | 361,252 | 361,252 | |||||||
Disposal of Ankang | (1,072,667) | (1,072,667) | |||||||
Ending balance, value at Jun. 30, 2022 | $ 10,984 | $ (3,024,000) | $ 52,998,924 | $ 4,198,107 | $ (18,372,023) | $ (2,100,756) | $ (398,348) | $ 33,312,888 | |
Ending balance, shares at Jun. 30, 2022 | [1] | 10,983,863 | |||||||
[1]Retrospectively restated for effect of stock split on August 14, 2020. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (27,067,139) | $ (32,056,433) |
Net loss from discontinued operations, net of tax | (2,433,395) | (10,616,988) |
Net loss from continuing operations | (24,633,744) | (21,439,445) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 554,368 | 697,093 |
Loss from disposal of property and equipment | 7,980 | 142,982 |
Provision for doubtful accounts | 8,743,044 | 13,462,790 |
Provision for inventory reserve | 113,139 | 118,598 |
Stock written off due to natural disaster | 1,574,241 | 3,942,784 |
Deferred tax benefit | (285,812) | |
Loss from equity method investment | 132,554 | |
Amortization of right of use assets | 1,006,078 | 181,257 |
Impairment loss on distribution rights | 1,140,551 | |
Impairment loss on an unconsolidated entity | 165,349 | |
Impairment loss on property and equipment | 741,644 | |
Impairment loss on ROU | 2,268,344 | |
Amortization of debt issuance costs | 1,379,777 | |
Accrued interest expense for convertible notes | 830,401 | |
Accrued interest expenses due to related parties | 9,390 | |
Accrued interest income from related parties | (266,656) | |
Accrued interest income from third parties | (592,401) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (834,891) | (2,833,647) |
Advances to suppliers | 2,851,460 | (3,345,800) |
Inventories | (1,645,742) | (4,605,123) |
Other current assets | (1,438,448) | (506,128) |
Accounts payable | (75,008) | (37,668) |
Advances from customers | (544) | 530 |
Other payables | 3,845,658 | (274,912) |
Operating lease liabilities | (629,939) | (433,869) |
Taxes payable | (673,355) | (430,216) |
Net cash used in operating activities from continuing operations | (5,712,562) | (15,360,774) |
Net cash provided by operating activities from discontinued operations | 711,217 | |
Net cash used in operating activities | (5,712,562) | (14,649,557) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (309,456) | |
Proceeds from disposal of property and equipment | 1,549 | |
Payment made for loans to third parties | (15,802,850) | |
Payment made for loans to related parties | (6,597,593) | |
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 | (36,016,193) | |
Net cash provided by investing activities from discontinued operations | 1,262,305 | |
Net cash provided (used in) by investing activities | (36,016,193) | 1,262,305 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 9,681,171 | 5,206,423 |
Proceeds from (repayments of) advances from related parties | 1,731,064 | (291,022) |
Proceeds from issuance of convertible notes | 17,000,000 | 3,000,000 |
Net cash provided by financing activities from continuing operations | 28,412,235 | 7,915,401 |
Net cash used in financing activities from discontinued operations | (679,470) | |
Net cash provided by financing activities | 28,412,235 | 7,235,931 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | (542,643) | 2,804,343 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (13,859,163) | (3,346,978) |
CASH AND CASH EQUIVALENTS - Beginning of the year | 29,024,394 | 32,371,372 |
CASH AND CASH EQUIVALENTS - End of the year | 15,165,231 | 29,024,394 |
Less: cash and cash equivalents of discontinued operations - Ended of the year | 12,681,483 | |
Cash and cash equivalents of continuing operations - Ended of the year | 15,165,231 | 16,342,911 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for income taxes | 668,477 | |
Cash paid for interest | 115,806 | |
SUPPLEMENTAL NON-CASH OPERATING ACTIVITY: | ||
Issuance of common shares for convertible notes redemption | 7,365,002 | |
Right-of-use assets obtained in exchange for operating lease obligations | 1,936,837 | 668,302 |
Reduction of right-of-use assets and operating lease obligations due to early termination of lease agreement | $ 1,048,857 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 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 become the primary beneficiary of the operations of 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 the 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 26.4 77.4 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 December 07, 2021, 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 April 13, 2022, the Company established Shineco Life Science Group Hong Kong Co., Limited (“Life Science HK”) as a wholly owned entity with registered capital of US$ 10.0 100 On July 23, 2020, Shanghai Jiaying International Trade Co., Ltd. (“Shanghai Jiaying”) was established with registered capital of RMB 200 29.9 90 On January 7, 2021, Inner Mongolia Shineco Zhonghemp Biotechnology Co., Ltd. (“SZB”) was established with registered capital of RMB 50 7.5 55 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 Guangyuan Shareholders entering into the VIE Agreements with Tenet-Jove, 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 Company, its subsidiaries, its VIEs, and its VIEs’ subsidiaries (collectively the “Group”) operate four 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) Qingdao Zhihesheng and Guanyuan are engaged in planting, processing, and distributing green agricultural produce; (“Agricultural Products”); 3) Zhisheng Freight is providing domestic and international logistic services (“Freight Services”); and, 4) 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. |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN UNCERTAINTIES | NOTE 2. GOING CONCERN UNCERTAINTIES As disclosed in the Company’s consolidated financial statements, the Company had recurring net losses of US$ 27,067,139 32,056,433 5,712,562 14,649,557 Despite those negative financial trends, as of June 30, 2022, the Company had positive working capital due to the following measurements the management has taken to enhance the Company’s liquidity: 1) On June 13, 2022, the Company entered into a certain stock purchase agreement with certain non-U.S. investors (the “Purchasers”), pursuant to which the Company agreed to sell, and the Purchasers agreed to purchase, severally and not jointly, an aggregate of 2,354,500 2.12 4,991,540 2) On August 11, 2022, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”). Under the Purchase Agreement, the Company will sell to the Investors, up to 1,921,683 0.915 1,758,340 1.0 Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity needs 12 months from this report issuance date. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries. The non-controlling interest represents the minority shareholders’ interest in the Company’s majority owned subsidiaries and the 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 June 30, 2022 June 30, 2021 Current assets $ 34,723,255 $ 44,631,744 Plant and equipment, net 1,446 4,698,184 Other non-current assets 1,211,293 4,894,445 Total assets 35,935,994 54,224,373 Total liabilities (5,719,289 ) (7,377,886 ) Net assets $ 30,216,705 $ 46,846,487 2022 2021 For the years ended June 30, 2022 2021 Net sales $ 2,142,511 $ 10,991,641 Gross loss $ (1,556,403 ) $ (3,165,304 ) Loss from operations $ (11,476,699 ) $ (22,319,655 ) Net loss $ (14,023,582 ) $ (27,754,161 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for discontinued operations were as follows: June 30, 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 2022 2021 For the years ended June 30, 2022 2021 Net sales $ - $ 8,085,527 Gross profit $ - $ 986,174 Loss from operations $ - $ (4,544,819 ) Net loss $ (2,433,395 ) $ (10,038,088 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for continued operations were as follows: June 30, 2022 June 30, 2021 Current assets $ 34,723,255 $ 24,972,002 Plant and equipment, net 1,446 1,014,659 Other non-current assets 1,211,293 3,534,939 Total assets 35,935,994 29,521,600 Total liabilities (5,719,289 ) (2,510,952 ) Net assets $ 30,216,705 $ 27,010,648 2022 2021 For the years ended June 30, 2022 2021 Net sales $ 2,142,511 $ 2,906,114 Gross loss $ (1,556,403 ) $ (4,151,478 ) Loss from operations $ (11,476,699 ) $ (17,774,836 ) Net loss $ (11,590,187 ) $ (17,716,073 ) 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 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 has contractual arrangements with the economic benefits from Use of Estimates The preparation of the 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 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 The Company merely acts as an agent in this type of services transactions. Revenue from domestic air and overland freight forwarding services was recognized upon the performance of services as stipulated in the underlying contract or when commodities were being released from the customer’s warehouse; the service price was fixed or determinable; and collectability was deemed probable. 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 has assessed the impact of the guidance by reviewing its existing customer contracts to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control, and principal versus agent considerations. In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. When the Company is a principal, that the Company obtains control of the specified goods or services before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission which the Company earns in exchange for arranging for the specified goods or services to be provided by other parties. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material changes to the Company’s consolidated financial statements upon adoption of ASC 606. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposit, and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of June 30, 2022 and 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 June 30, 2022 and 2021, the allowance for doubtful accounts from the continuing operations was US$ 7,317,236 9,805,402 , respectively. As of June 30, 2022 and 2021, the allowance for doubtful accounts from the discontinued operations was US$ nil and US$ 3,675,619 , respectively. Accounts are written off against the allowance after efforts at collection prove unsuccessful. 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 June 30, 2022 and 2021, the inventory reserve from the continuing operations was US$ 1,249,543 1,349,288 , respectively. As of June 30, 2022 and 2021, the inventory reserve from the discontinued operations were both US$ 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 June 30, 2022 and 2021, the Company had an allowance for uncollectible advances to suppliers from the continuing operations of US$ 13,544,627 11,546,609 , respectively. As of June 30, 2022 and 2021, the Company had an allowance for uncollectible advances to suppliers from the discontinued operations of US$ nil and US$ 1,773,698 , respectively. Business Acquisitions Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a bargain gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values on the date acquired and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the net assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than 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 million, with corresponding ROU assets of US$ million based on the present value of the remaining rental payments under current leasing standards for existing operating leases. There was no cumulative effect of adopting the standard. For the years ended June 30, 2022 and 2021, the Company had an impairment for ROU lease assets from the continuing operations of US$ 2,268,344 nil , respectively. For the years ended June 30, 2022 and 2021, the impairment for ROU lease assets from the discontinued operations were both US$ . 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 years, based on the term of the land use rights. Long-lived Assets Finite-lived assets and intangibles are reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property and equipment, land use rights, distribution right, ROU assets and investments. For the years ended June 30, 2022 and 2021, the Company had an impairment for long-lived assets from the continuing operations of US$ 4,315,888 and US$ nil , respectively. For the years ended June 30, 2022 and 2021, the impairment for long-lived assets from the discontinued operations were both US$ nil . Fair Value of Financial Instruments The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability. The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This ASC also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company did not have any uncertain tax positions from the continuing operations and the discontinued operations at June 30, 2022 and 2021. The Company had not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries from the continuing operations and the discontinued operations at June 30, 2022, as it is the Company’s policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. The statute of limitations for the Company’s U.S. federal income tax returns and certain state income tax returns remains open for tax year 2019 and thereafter. As of June 30, 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 . This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing finished products or acquiring finished products. The Company records a VAT payable or VAT receivable in the accompanying consolidated financial statements. Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars,” “USD,” or “US$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss. The balance sheet amounts, with the exception of equity, at June 30, 2022 and 2021 were translated at 1 0.1493 1 0.1549 1 0.1549 1 0.1510 USD, respectively. Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option , an embedded beneficial conversion feature present in a convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. Issuance costs should be allocated proportionally to the debt host and conversion feature. Deferred financing costs will be discounted and amortized subsequently, and the convertible notes are subsequently carried at amortized cost. Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of 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 % and %, and other factors, such as representation on the board of directors, voting rights, and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. 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 anti-dilutive effect for the years ended June 30, 2022 and 2021. The following table presents a reconciliation of basic and diluted loss per share for the years ended June 30, 2022 and 2021: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE 2022 2021 For the years ended June 30, 2022 2021 Net loss from continuing operations attributable to Shineco $ (24,599,699 ) $ (21,407,359 ) Net loss from discontinued operations attributable to Shineco (2,433,395 ) (10,038,088 ) Net loss attributable to Shineco (27,033,094 ) (31,445,447 ) Weighted average shares outstanding - basic and diluted 9,458,077 4,401,048 Net loss from continuing operations per share of common share Basic and diluted $ (2.60 ) $ (4.86 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.26 ) $ (2.28 ) Net loss per share of common share Basic and diluted $ (2.86 ) (7.14 ) 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 consolidated financial statements. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE, NET The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2022 June 30, 2021 Accounts receivable $ 9,138,790 $ 19,640,749 Less: allowance for doubtful accounts (7,317,236 ) (13,481,021 ) Accounts receivable, net 1,821,554 6,159,728 Less: accounts receivable, net, held for discontinued operations - (3,473,057 ) Accounts receivable, net, held for continuing operations $ 1,821,554 $ 2,686,671 Movement of allowance for doubtful accounts is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2022 June 30, 2021 Beginning balance $ 13,481,021 $ 5,235,436 Charge to expense 1,632,670 7,556,516 Less: cessation of subsidiaries and disposal of VIE (7,524,110 ) - Foreign currency translation adjustments (272,345 ) 689,069 Ending balance $ 7,317,236 $ 13,481,021 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 5 – INVENTORIES, NET The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET June 30, 2022 June 30, 2021 Raw materials $ 67,467 $ 208,253 Work-in-process 18,709,325 1,232,787 Finished goods 1,191,275 1,512,884 Less: inventory reserve (1,249,543 ) (1,349,288 ) Total inventories, net 18,718,524 1,604,636 Less: inventories, net, held for discontinued operations - (281,245 ) Inventories, net, held for continuing operations $ 18,718,524 $ 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$ 1,574,241 3,942,784 years ended June 30, 2022 and 2021 |
ADVANCES TO SUPPLIERS, NET
ADVANCES TO SUPPLIERS, NET | 12 Months Ended |
Jun. 30, 2022 | |
Advances To Suppliers Net | |
ADVANCES TO SUPPLIERS, NET | NOTE 6 – ADVANCES TO SUPPLIERS, NET The advances to suppliers, net consisted of the following: SCHEDULE OF ADVANCES TO SUPPLIERS June 30, 2022 June 30, 2021 Advances to suppliers $ 13,548,178 $ 21,810,781 Less: allowance for doubtful accounts (13,544,627 ) (13,320,307 ) Advance to suppliers, net 3,551 8,490,474 Less: advance to suppliers, net, held for discontinued operations - (700,348 ) Advance to suppliers, net, held for continuing operations $ 3,551 $ 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 June 30, 2022 June 30, 2021 Beginning balance $ 13,320,307 $ 3,342,590 Charge to expense 4,938,064 9,420,385 Less: cessation of subsidiaries and disposal of VIE (4,210,407 ) - Foreign currency translation adjustments (503,337 ) 557,332 Ending balance $ 13,544,627 $ 13,320,307 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 7 – OTHER CURRENT ASSETS Other current assets consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS June 30, 2022 June 30, 2021 Loan to third parties (1) $ 16,345,717 $ 1,654,844 Other receivables (2) 3,246,293 2,770,136 Short-term deposit 164,261 391,274 Prepaid expenses 20,872 46,453 Other current assets, gross 19,777,143 4,862,707 Less: allowance for doubtful accounts 2,545,565 995,760 Total other current assets, net 17,231,578 3,866,947 Less: other current assets, net, held for discontinued operations - (2,523,609 ) other current assets, net, held for continuing operations $ 17,231,578 $ 1,343,338 (1) Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners or employees of the Company. These loans bear interest or no interest and have terms of no more than one year. The Company periodically reviewed the loans to 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 these third-party debtors and the relationships with them. As the date of the report, approximately US$ 12.5 (2) Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses. Movement of allowance for doubtful accounts is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2022 June 30, 2021 Beginning balance $ 995,760 $ 761,782 Charge to expense 2,117,316 158,334 Less: cessation of subsidiaries and disposal of VIE (326,491 ) - Foreign currency translation adjustments (241,020 ) 75,644 Ending balance $ 2,545,565 $ 995,760 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 8 - PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2022 June 30, 2021 Buildings $ 1,808,172 $ 8,242,357 Machinery and equipment 27,351 688,979 Motor vehicles 139,077 63,090 Office equipment 178,271 243,543 Leasehold improvement 186,314 - Farmland leasehold improvements 3,139,729 3,256,339 Total property and equipment, gross 5,478,914 12,494,308 Less: accumulated depreciation and amortization (3,388,640 ) (6,556,839 ) Less: impairment for property and equipment (714,802 ) - Total property and equipment, net 1,375,472 5,937,469 Less: property and equipment, net, held for discontinued operations - (3,683,525 ) Property and equipment, net held for continuing operations $ 1,375,472 $ 2,253,944 Depreciation and amortization expense charged to the continuing operations was US$ 386,972 255,255 years ended June 30, 2022 and 2021 nil 260,317 years ended June 30, 2022 and 2021 During the year ended June 30, 2022, the management performed evaluation on the impairment of property and equipment, and impairment loss of US$ 741,644 nil green agricultural produce on its leased Farmland leasehold improvements consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS June 30, 2022 June 30, 2021 Blueberry farmland leasehold improvements $ 2,412,079 $ 2,501,664 Yew tree planting base reconstruction 270,242 280,279 Greenhouse renovation 457,408 474,396 Less: impairment for property and equipment (3,139,729 ) - Total farmland leasehold improvements - 3,256,339 Less: farmland leasehold improvement, held for discontinued operations - - Total farmland leasehold improvement, held for continuing operations $ - $ 3,256,339 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
LAND USE RIGHTS, NET | NOTE 9 - 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 years. SCHEDULE OF LAND USE RIGHTS June 30, 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 years ended June 30, 2022 and 2021, amortization expenses from the continuing operations were both US$ nil nil 39,592 |
DISTRIBUTION RIGHTS
DISTRIBUTION RIGHTS | 12 Months Ended |
Jun. 30, 2022 | |
Distribution Rights | |
DISTRIBUTION RIGHTS | NOTE 10 - 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 year ended June 30, 2022, the management performed evaluation on the impairment of distribution rights. As the Company is unable to generate any revenue and profit from the distribution right due to the unfavorable policy of China Customs and current business environment caused by the continuous impact from the COVID-19 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | NOTE 11 - 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 3,784,000 years ended June 30, 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% 7% years ended June 30, 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% 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% June 30, 2022 0.75 132,554 year ended June 30, 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 The Company’s investments in unconsolidated entities consist of the following: SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES June 30, 2022 June 30, 2021 Gaojing Private Fund $ 617,446 $ - Total investment 617,446 - Less: investment, held for discontinued operations - - Investment, held for continuing operations $ 617,446 $ - S ummarized financial information of unconsolidated entities from continued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS June 30, 2022 June 30, 2021 Current assets $ 558,962 $ - Current liabilities 1,478 - 2022 2021 For the years ended June 30, 2022 2021 Net sales $ - $ - Gross loss (94 ) - Loss from operations (403,069 ) - Net loss (414,231 ) - 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 years ended June 30, 2022 2021 Net sales $ - $ 21,373,037 Gross profit - 1,763,172 Loss from operations - (4,099,079 ) Net loss - (4,124,960 ) |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | NOTE 12 - 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 June 30, 2022 June 30, 2021 ROU lease assets $ 2,088,149 $ 3,585,703 Operating lease liabilities – current 959,909 434,411 Operating lease liabilities – non-current 1,025,967 352,863 Total operating lease liabilities $ 1,985,876 $ 787,274 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2022 and 2021 SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES June 30, 2022 June 30, 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 6.88 7.25 Weighted average discount rate 5.30 % 5.00 % Rent expenses totaled US$ 1,084,749 641,486 June 30, 2022 and 2021 nil years ended June 30, 2022 and 2021 During the year ended June 30, 2022, the management performed evaluation on the impairment of ROU lease assets , and 2,268,344 nil green agricultural produce on its leased Therefore, The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2022: SCHEDULE OF MATURITIES OF LEASE LIABILITIES 2023 $ 1,034,731 2024 589,981 2025 180,776 2026 22,396 2027 22,396 Thereafter 455,380 Total lease payments 2,305,660 Less: imputed interest (319,784 ) Present value of lease liabilities $ 1,985,876 |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LOANS | NOTE 13 - SHORT-TERM LOANS No short-terms loan was outstanding as of June 30, 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 years ended June 30, 2022 and 2021 The Company recorded interest expenses from discontinued operations of US$ nil 115,806 years ended June 30, 2022 and 2021 nil 5.44 years ended June 30, 2022 and 2021 |
ACQUISITION
ACQUISITION | 12 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | NOTE 14 - 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 14,000,000 2.1 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 Non-controlling 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 FAIR VALUE OF DISTRIBUTION RIGHTS AND ESTIMATED USEFUL LIVES Preliminary Fair Value Weighted Average Useful Life (in Years) Distribution rights $ 1,101,871 0 ) (a) The distribution rights with no expiration date has been determined to have an indefinite life. On May 5, 2019, two minority shareholders of Tianjin Tajite transferred 26.4 77.4 During the year ended June 30, 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 Guangyuan Shareholders entering into the VIE agreements with Tenet-Jove, 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 Non-controlling 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 18,115,423 Other current assets 224,522 Right of use assets 1,127,130 Long-term investments and other non-current assets 166,107 Other payables and other current assets (2,503,607 ) Operating lease liabilities (1,013,492 ) Total purchase price for acquisition, net of US$ 112,070 $ 16,224,379 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 The Company has included the operating results of Guangyuan in its consolidated financial statements since the Acquisition Date. US$ 44,150 904,922 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 15 - 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 June 30, 2022 and 2021, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES June 30, 2022 June 30, 2021 Yang Bin $ - $ 46,454 Beijing Huiyinansheng Asset Management Co., Ltd (a.) - 23,228 Wang Qiwei - 62,716 Zhao Min 1,410 - Shanghai Gaojing Private Fund Management (b.) 429,998 - Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (c.) 1,719,568 - Zhongjian (Qingdao) International Logistics Development Co., Ltd. (d.) 4,644,011 - Total due from related parties 6,794,987 132,398 Less: due from related parties, held for discontinued operations - - Due from related parties, held for continuing operations $ 6,794,987 $ 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$ 1,642,355 11.0 September 16, 2022 6.0 77,213 80,113 Upon maturity date, the Company signed a loan extension agreement with the related party to extend the loan repayment by installments, among which, US$ 223,957 1.5 746,525 5.0 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$ 4,464,219 29.9 October 27, 2022 6.0 179,792 186,543 year ended June 30, 2022 Due to Related Parties As of June 30, 2022 and 2021, the Company had related party payables of US$ 2,798,800 1,159,407 SCHEDULE OF DUE TO RELATED PARTIES June 30, 2022 June 30, 2021 Wu Yang $ 95,630 $ 99,183 Wang Sai 96,081 91,433 Zhou Guocong - 551,314 Li Baolin (a.) - 232,275 Zhao Min (b.) 562,528 185,202 Zhou Shunfang (c.) 2,044,561 - Total due to related parties 2,798,800 1,159,407 Less: due to related parties, held for discontinued operations - - Due to related parties, held for continuing operations $ 2,798,800 $ 1,159,407 a. On December 10, 2019, the Company entered into a loan agreement with Li Baolin to borrow an amount of US$ 232,275 1.5 March 31, 2022 20.0 per annum. The loan was fully repaid by the Company upon its maturity. b. During the year ended June 30, 2022, the Company entered into a series of loan agreements with Zhao Min to borrow an aggregated amount of US$ 365,797 2.45 July 2022 to September 2022 5.0 c. During the year ended June 30, 2022, the Company entered into a series of loan agreements with Zhou Shunfang to borrow an aggregated amount of US$ 1,269,092 8.5 March 31, 2022 20.0 Interest expenses on loans due to related parties were US$ 442,241 nil years ended June 30, 2022 Sales to Related Parties For the years ended June 30, 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 11), of US$ nil 1,892,410 nil 551,237 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 16 - 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 August 18, 2023 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 June 30, 2022 year ended June 30, 2022 1,379,777 As of June 30, 2022 1,837,155 7,365,002 14,416,956 14,525,401 108,445 |
TAXES
TAXES | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 17 - 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 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) 2022 2021 For the years ended June 30, 2022 2021 Current income tax provision $ (6,454 ) $ 43,701 Deferred income tax benefit (285,812 ) - Total income tax expenses (benefit) (292,266 ) 43,701 Less: income tax expenses, held for discontinued operations - (43,701 ) Income tax benefit, held for continuing operations $ (292,266 ) $ - SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES June 30, 2022 June 30, 2021 Deferred tax assets: Allowance for doubtful accounts $ 1,252,245 $ 951,136 Inventory reserve 311,439 306,308 Net operating loss carry-forwards 979,682 552,579 Total 2,543,366 1,810,023 Valuation allowance (2,543,366 ) (1,810,023 ) Total deferred tax assets - - Deferred tax liability: Distribution rights - (285,699 ) Total deferred tax liability - (285,699 ) Deferred tax liability, net - (285,699 ) Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ - $ (285,699 ) Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE June 30, 2022 June 30, 2021 Beginning balance $ 1,810,023 $ 1,185,655 Current year addition 798,160 512,028 Exchange difference (64,817 ) 112,340 Ending balance 2,543,366 1,810,023 Less: valuation allowance, held for discontinued operations - (1,362,329 ) Valuation allowance, held for continuing operations $ 2,543,366 $ 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 years ended June 30, 2022 and 2021 (c) Taxes Payable Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE June 30, 2022 June 30, 2021 Income tax payable $ 992,780 $ 3,376,499 Value added tax payable 34,925 73,390 Business tax and other taxes payable 3,375 8,573 Total tax payable 1,031,080 3,458,462 Less: tax payable, held for discontinued operations - (1,743,673 ) Tax payable, held for continuing operations $ 1,031,080 $ 1,714,789 Income tax payable - current portion $ 584,220 $ 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 $ 584,220 $ 1,208,348 Income tax payable - noncurrent portion $ 446,860 $ 506,441 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 446,860 $ 506,441 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 18 - 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 June 30, 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 June 30, 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 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 On June 13, 2022, the Company entered into a certain stock purchase agreement (the “SPA”) with certain non-U.S. investors (the “Purchasers”), pursuant to which the Company agreed to sell, and the Purchasers agreed to purchase, severally and not jointly, an aggregate of 2,354,500 2.12 4,991,540 |
CONCENTRATIONS AND RISKS
CONCENTRATIONS AND RISKS | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 19 - 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$ 15,164,950 16,333,102 2022 nil 12,676,416 2022 During the years ended June 30, 2022 and 2021 100 100 For the year ended June 30, 2022 91 % of the Company’s total sales from the continuing operations, respectively. At June 30, 2022 71 % of the Company’s accounts receivable from the continuing operations. For the year ended June 30, 2021, four customers accounted for approximately 72 100 80 98 For the year ended June 30, 2022 92 For the year ended June 30, 2021, one vendor accounted for approximately 95 100 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 - 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 June 30, 2022 837,225 5.4 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 The Company moved to dismiss the counterclaims, and its motion was fully-submitted in April, 2022. Also in April 2022, the Court granted the Company’s motion for a preliminary injunction to restrain the Company’s transfer agent from removing the restrictive legends on the shares, provided that the Company posts a bond in the amount of US 1.5 June 30, 2022 982,500 3,024,000 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 21 - 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 four ● 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 company of this segment, Qingdao Zhihesheng, is engaged in the business of growing and distributing green and organic vegetables and fruits. 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 Zhihesheng 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. ● Providing domestic air and overland freight forwarding services (“Freight services”): The operating company of this segment, Zhisheng Freight, is engaged in the business of providing domestic air and overland freight forwarding services by outsourcing these services to a third party. During the year ended June 30, 2022, there was a change in the Company’s business strategies, from being the service providers, Zhisheng Freight outsourced the freight services to third-party logistic companies and the Company merely serves as an agent and its obligation is to facilitate third-party logistic companies in fulfilling its performance obligation for specified freight services. The following table presents summarized information by segment for the year ended June 30, 2022 SCHEDULE OF INFORMATION BY SEGMENT For the year ended June 30, 2022 Continuing Operations Discontinued Operations Luobuma Other agricultural Freight Herbal products products services Total products Total Segment revenue $ 43,949 $ 1,687,884 $ 454,627 $ 2,186,460 $ - $ 2,186,460 Cost of revenue and related business and sales tax 98,209 3,364,744 334,170 3,797,123 - 3,797,123 Gross profit (loss) (54,260 ) (1,676,860 ) 120,457 (1,610,663 ) - (1,610,663 ) Gross loss % (123.5 )% (99.3 )% 26.5 % (73.7 )% - (73.7 )% The following table presents summarized information by segment for the year ended June 30, 2021 For the year ended June 30, 2021 Continuing Operations Discontinued Operations Luobuma Other agricultural Freight Herbal products products services Total products Total Segment revenue $ 115,590 $ 2,120,484 $ 785,630 $ 3,021,704 $ 8,085,527 $ 11,107,231 Cost of revenue and related business and sales tax 200,263 6,334,964 722,628 7,257,855 7,099,353 14,357,208 Gross loss (84,673 ) (4,214,480 ) 63,002 (4,236,151 ) 986,174 (3,249,977 ) Gross loss% (73.3 )% (198.8 )% 8.0 % (140.2 )% 12.2 % (29.3 )% Total assets as of June 30, 2022 and 2021 June 30, 2022 June 30, 2021 Luobuma products $ 10,982,562 $ 3,849,675 Other agricultural products 46,488,334 28,531,029 Freight services 6,355,121 4,235,122 Herbal products - 24,702,773 Total assets 63,826,017 61,318,599 Less: total assets held for discontinued operations - (24,702,773 ) Total assets, held for continuing operations $ 63,826,017 $ 36,615,826 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 22 - 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 Guangyuan Shareholders entering into the VIE 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 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 consolidated balance sheets as of June 30, 2022 and 2021 years ended June 30, 2022 and 2021 The carrying amount of the major classes of assets and liabilities of discontinued operations as of June 30, 2022 and 2021 consist of the following: SCHEDULE OF DISCONTINUED OPERATIONS June 30, 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 For the Years Ended June 30, 2022 2021 REVENUE $ - $ 8,085,527 COST OF REVENUE Cost of product and services - 7,069,026 Business and sales related tax - 30,327 Total cost of revenue - 7,099,353 GROSS PROFIT - 986,174 OPERATING EXPENSES General and administrative expenses - 5,456,786 Selling expenses - 74,207 Total operating expenses - 5,530,993 LOSS FROM OPERATIONS - (4,544,819 ) OTHER EXPENSE Loss from equity method investments - (3,784,000 ) Other expenses, net - (2,171,150 ) Interest expense, net - (73,318 ) Total other expense - (6,028,468 ) LOSS BEFORE PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (10,573,287 ) PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - 43,701 NET LOSS FROM DISCONTINUED OPERATIONS FROM ANKANG GROUP - (10,616,988 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS (2,433,395 ) - NET LOSS FROM DISCONTINUED OPERATIONS (2,433,395 ) (10,616,988 ) Net loss attributable to non-controlling interest - (578,900 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (2,433,395 ) $ (10,038,088 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23 - SUBSEQUENT EVENTS On July 21, 2022, the stockholders of the Company approved the Company’s 2022 Equity Incentive Plan (the “2022 Plan”), pursuant to which 1,500,000 86,000 On August 11, 2022, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”). Under the Purchase Agreement, the Company will sell to the Investors, up to 1,921,683 0.915 US 1,758,340 1.0 These consolidated financial statements were approved by management and available for issuance on September 28 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries. The non-controlling interest represents the minority shareholders’ interest in the Company’s majority owned subsidiaries and the 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 June 30, 2022 June 30, 2021 Current assets $ 34,723,255 $ 44,631,744 Plant and equipment, net 1,446 4,698,184 Other non-current assets 1,211,293 4,894,445 Total assets 35,935,994 54,224,373 Total liabilities (5,719,289 ) (7,377,886 ) Net assets $ 30,216,705 $ 46,846,487 2022 2021 For the years ended June 30, 2022 2021 Net sales $ 2,142,511 $ 10,991,641 Gross loss $ (1,556,403 ) $ (3,165,304 ) Loss from operations $ (11,476,699 ) $ (22,319,655 ) Net loss $ (14,023,582 ) $ (27,754,161 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for discontinued operations were as follows: June 30, 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 2022 2021 For the years ended June 30, 2022 2021 Net sales $ - $ 8,085,527 Gross profit $ - $ 986,174 Loss from operations $ - $ (4,544,819 ) Net loss $ (2,433,395 ) $ (10,038,088 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for continued operations were as follows: June 30, 2022 June 30, 2021 Current assets $ 34,723,255 $ 24,972,002 Plant and equipment, net 1,446 1,014,659 Other non-current assets 1,211,293 3,534,939 Total assets 35,935,994 29,521,600 Total liabilities (5,719,289 ) (2,510,952 ) Net assets $ 30,216,705 $ 27,010,648 2022 2021 For the years ended June 30, 2022 2021 Net sales $ 2,142,511 $ 2,906,114 Gross loss $ (1,556,403 ) $ (4,151,478 ) Loss from operations $ (11,476,699 ) $ (17,774,836 ) Net loss $ (11,590,187 ) $ (17,716,073 ) |
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 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 has contractual arrangements with the economic benefits from |
Use of Estimates | Use of Estimates The preparation of the 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 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 The Company merely acts as an agent in this type of services transactions. Revenue from domestic air and overland freight forwarding services was recognized upon the performance of services as stipulated in the underlying contract or when commodities were being released from the customer’s warehouse; the service price was fixed or determinable; and collectability was deemed probable. 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 has assessed the impact of the guidance by reviewing its existing customer contracts to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control, and principal versus agent considerations. In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. When the Company is a principal, that the Company obtains control of the specified goods or services before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission which the Company earns in exchange for arranging for the specified goods or services to be provided by other parties. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material changes to the Company’s consolidated financial statements upon adoption of ASC 606. |
Accounts Receivable, Net | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposit, and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of June 30, 2022 and 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 June 30, 2022 and 2021, the allowance for doubtful accounts from the continuing operations was US$ 7,317,236 9,805,402 , respectively. As of June 30, 2022 and 2021, the allowance for doubtful accounts from the discontinued operations was US$ nil and US$ 3,675,619 , respectively. Accounts are written off against the allowance after efforts at collection prove unsuccessful. |
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 June 30, 2022 and 2021, the inventory reserve from the continuing operations was US$ 1,249,543 1,349,288 , respectively. As of June 30, 2022 and 2021, the inventory reserve from the discontinued operations were both US$ 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 June 30, 2022 and 2021, the Company had an allowance for uncollectible advances to suppliers from the continuing operations of US$ 13,544,627 11,546,609 , respectively. As of June 30, 2022 and 2021, the Company had an allowance for uncollectible advances to suppliers from the discontinued operations of US$ nil and US$ 1,773,698 , respectively. |
Business Acquisitions | Business Acquisitions Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a bargain gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values on the date acquired and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the net assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than 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 million, with corresponding ROU assets of US$ million based on the present value of the remaining rental payments under current leasing standards for existing operating leases. There was no cumulative effect of adopting the standard. For the years ended June 30, 2022 and 2021, the Company had an impairment for ROU lease assets from the continuing operations of US$ 2,268,344 nil , respectively. For the years ended June 30, 2022 and 2021, the impairment for ROU lease assets from the discontinued operations were both US$ . |
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 years, based on the term of the land use rights. |
Long-lived Assets | Long-lived Assets Finite-lived assets and intangibles are reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property and equipment, land use rights, distribution right, ROU assets and investments. For the years ended June 30, 2022 and 2021, the Company had an impairment for long-lived assets from the continuing operations of US$ 4,315,888 and US$ nil , respectively. For the years ended June 30, 2022 and 2021, the impairment for long-lived assets from the discontinued operations were both US$ nil . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability. The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This ASC also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company did not have any uncertain tax positions from the continuing operations and the discontinued operations at June 30, 2022 and 2021. The Company had not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries from the continuing operations and the discontinued operations at June 30, 2022, as it is the Company’s policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. The statute of limitations for the Company’s U.S. federal income tax returns and certain state income tax returns remains open for tax year 2019 and thereafter. As of June 30, 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 . This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing finished products or acquiring finished products. The Company records a VAT payable or VAT receivable in the accompanying consolidated financial statements. |
Foreign Currency Translation | Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars,” “USD,” or “US$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss. The balance sheet amounts, with the exception of equity, at June 30, 2022 and 2021 were translated at 1 0.1493 1 0.1549 1 0.1549 1 0.1510 USD, respectively. |
Convertible Notes Payable | Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option , an embedded beneficial conversion feature present in a convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. Issuance costs should be allocated proportionally to the debt host and conversion feature. Deferred financing costs will be discounted and amortized subsequently, and the convertible notes are subsequently carried at amortized cost. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the consolidated statements of 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 % and %, and other factors, such as representation on the board of directors, voting rights, and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. |
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 anti-dilutive effect for the years ended June 30, 2022 and 2021. The following table presents a reconciliation of basic and diluted loss per share for the years ended June 30, 2022 and 2021: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE 2022 2021 For the years ended June 30, 2022 2021 Net loss from continuing operations attributable to Shineco $ (24,599,699 ) $ (21,407,359 ) Net loss from discontinued operations attributable to Shineco (2,433,395 ) (10,038,088 ) Net loss attributable to Shineco (27,033,094 ) (31,445,447 ) Weighted average shares outstanding - basic and diluted 9,458,077 4,401,048 Net loss from continuing operations per share of common share Basic and diluted $ (2.60 ) $ (4.86 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.26 ) $ (2.28 ) Net loss per share of common share Basic and diluted $ (2.86 ) (7.14 ) |
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 consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION | SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION June 30, 2022 June 30, 2021 Current assets $ 34,723,255 $ 44,631,744 Plant and equipment, net 1,446 4,698,184 Other non-current assets 1,211,293 4,894,445 Total assets 35,935,994 54,224,373 Total liabilities (5,719,289 ) (7,377,886 ) Net assets $ 30,216,705 $ 46,846,487 2022 2021 For the years ended June 30, 2022 2021 Net sales $ 2,142,511 $ 10,991,641 Gross loss $ (1,556,403 ) $ (3,165,304 ) Loss from operations $ (11,476,699 ) $ (22,319,655 ) Net loss $ (14,023,582 ) $ (27,754,161 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for discontinued operations were as follows: June 30, 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 2022 2021 For the years ended June 30, 2022 2021 Net sales $ - $ 8,085,527 Gross profit $ - $ 986,174 Loss from operations $ - $ (4,544,819 ) Net loss $ (2,433,395 ) $ (10,038,088 ) The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information held for continued operations were as follows: June 30, 2022 June 30, 2021 Current assets $ 34,723,255 $ 24,972,002 Plant and equipment, net 1,446 1,014,659 Other non-current assets 1,211,293 3,534,939 Total assets 35,935,994 29,521,600 Total liabilities (5,719,289 ) (2,510,952 ) Net assets $ 30,216,705 $ 27,010,648 2022 2021 For the years ended June 30, 2022 2021 Net sales $ 2,142,511 $ 2,906,114 Gross loss $ (1,556,403 ) $ (4,151,478 ) Loss from operations $ (11,476,699 ) $ (17,774,836 ) Net loss $ (11,590,187 ) $ (17,716,073 ) |
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 years ended June 30, 2022 and 2021: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE 2022 2021 For the years ended June 30, 2022 2021 Net loss from continuing operations attributable to Shineco $ (24,599,699 ) $ (21,407,359 ) Net loss from discontinued operations attributable to Shineco (2,433,395 ) (10,038,088 ) Net loss attributable to Shineco (27,033,094 ) (31,445,447 ) Weighted average shares outstanding - basic and diluted 9,458,077 4,401,048 Net loss from continuing operations per share of common share Basic and diluted $ (2.60 ) $ (4.86 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.26 ) $ (2.28 ) Net loss per share of common share Basic and diluted $ (2.86 ) (7.14 ) |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2022 June 30, 2021 Accounts receivable $ 9,138,790 $ 19,640,749 Less: allowance for doubtful accounts (7,317,236 ) (13,481,021 ) Accounts receivable, net 1,821,554 6,159,728 Less: accounts receivable, net, held for discontinued operations - (3,473,057 ) Accounts receivable, net, held for continuing operations $ 1,821,554 $ 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 June 30, 2022 June 30, 2021 Beginning balance $ 13,481,021 $ 5,235,436 Charge to expense 1,632,670 7,556,516 Less: cessation of subsidiaries and disposal of VIE (7,524,110 ) - Foreign currency translation adjustments (272,345 ) 689,069 Ending balance $ 7,317,236 $ 13,481,021 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES, NET | The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET June 30, 2022 June 30, 2021 Raw materials $ 67,467 $ 208,253 Work-in-process 18,709,325 1,232,787 Finished goods 1,191,275 1,512,884 Less: inventory reserve (1,249,543 ) (1,349,288 ) Total inventories, net 18,718,524 1,604,636 Less: inventories, net, held for discontinued operations - (281,245 ) Inventories, net, held for continuing operations $ 18,718,524 $ 1,323,391 |
ADVANCES TO SUPPLIERS, NET (Tab
ADVANCES TO SUPPLIERS, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Advances To Suppliers Net | |
SCHEDULE OF ADVANCES TO SUPPLIERS | The advances to suppliers, net consisted of the following: SCHEDULE OF ADVANCES TO SUPPLIERS June 30, 2022 June 30, 2021 Advances to suppliers $ 13,548,178 $ 21,810,781 Less: allowance for doubtful accounts (13,544,627 ) (13,320,307 ) Advance to suppliers, net 3,551 8,490,474 Less: advance to suppliers, net, held for discontinued operations - (700,348 ) Advance to suppliers, net, held for continuing operations $ 3,551 $ 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 June 30, 2022 June 30, 2021 Beginning balance $ 13,320,307 $ 3,342,590 Charge to expense 4,938,064 9,420,385 Less: cessation of subsidiaries and disposal of VIE (4,210,407 ) - Foreign currency translation adjustments (503,337 ) 557,332 Ending balance $ 13,544,627 $ 13,320,307 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER CURRENT ASSETS | Other current assets consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS June 30, 2022 June 30, 2021 Loan to third parties (1) $ 16,345,717 $ 1,654,844 Other receivables (2) 3,246,293 2,770,136 Short-term deposit 164,261 391,274 Prepaid expenses 20,872 46,453 Other current assets, gross 19,777,143 4,862,707 Less: allowance for doubtful accounts 2,545,565 995,760 Total other current assets, net 17,231,578 3,866,947 Less: other current assets, net, held for discontinued operations - (2,523,609 ) other current assets, net, held for continuing operations $ 17,231,578 $ 1,343,338 (1) Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners or employees of the Company. These loans bear interest or no interest and have terms of no more than one year. The Company periodically reviewed the loans to 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 these third-party debtors and the relationships with them. As the date of the report, approximately US$ 12.5 (2) Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses. |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movement of allowance for doubtful accounts is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2022 June 30, 2021 Beginning balance $ 995,760 $ 761,782 Charge to expense 2,117,316 158,334 Less: cessation of subsidiaries and disposal of VIE (326,491 ) - Foreign currency translation adjustments (241,020 ) 75,644 Ending balance $ 2,545,565 $ 995,760 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2022 June 30, 2021 Buildings $ 1,808,172 $ 8,242,357 Machinery and equipment 27,351 688,979 Motor vehicles 139,077 63,090 Office equipment 178,271 243,543 Leasehold improvement 186,314 - Farmland leasehold improvements 3,139,729 3,256,339 Total property and equipment, gross 5,478,914 12,494,308 Less: accumulated depreciation and amortization (3,388,640 ) (6,556,839 ) Less: impairment for property and equipment (714,802 ) - Total property and equipment, net 1,375,472 5,937,469 Less: property and equipment, net, held for discontinued operations - (3,683,525 ) Property and equipment, net held for continuing operations $ 1,375,472 $ 2,253,944 |
SCHEDULE OF LEASEHOLD IMPROVEMENTS | Farmland leasehold improvements consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS June 30, 2022 June 30, 2021 Blueberry farmland leasehold improvements $ 2,412,079 $ 2,501,664 Yew tree planting base reconstruction 270,242 280,279 Greenhouse renovation 457,408 474,396 Less: impairment for property and equipment (3,139,729 ) - Total farmland leasehold improvements - 3,256,339 Less: farmland leasehold improvement, held for discontinued operations - - Total farmland leasehold improvement, held for continuing operations $ - $ 3,256,339 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF LAND USE RIGHTS | SCHEDULE OF LAND USE RIGHTS June 30, 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) | 12 Months Ended |
Jun. 30, 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 June 30, 2022 June 30, 2021 Gaojing Private Fund $ 617,446 $ - Total investment 617,446 - Less: investment, held for discontinued operations - - Investment, held for continuing operations $ 617,446 $ - |
SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS | S ummarized financial information of unconsolidated entities from continued operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS June 30, 2022 June 30, 2021 Current assets $ 558,962 $ - Current liabilities 1,478 - 2022 2021 For the years ended June 30, 2022 2021 Net sales $ - $ - Gross loss (94 ) - Loss from operations (403,069 ) - Net loss (414,231 ) - |
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 years ended June 30, 2022 2021 Net sales $ - $ 21,373,037 Gross profit - 1,763,172 Loss from operations - (4,099,079 ) Net loss - (4,124,960 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 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 June 30, 2022 June 30, 2021 ROU lease assets $ 2,088,149 $ 3,585,703 Operating lease liabilities – current 959,909 434,411 Operating lease liabilities – non-current 1,025,967 352,863 Total operating lease liabilities $ 1,985,876 $ 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 June 30, 2022 and 2021 SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES June 30, 2022 June 30, 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 6.88 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 June 30, 2022: SCHEDULE OF MATURITIES OF LEASE LIABILITIES 2023 $ 1,034,731 2024 589,981 2025 180,776 2026 22,396 2027 22,396 Thereafter 455,380 Total lease payments 2,305,660 Less: imputed interest (319,784 ) Present value of lease liabilities $ 1,985,876 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 12 Months Ended |
Jun. 30, 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) | 12 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF FAIR VALUE OF DISTRIBUTION RIGHTS AND ESTIMATED USEFUL LIVES | The fair value of distribution rights and its estimated useful lives from continuing operations are as follows: SCHEDULE OF FAIR VALUE OF DISTRIBUTION RIGHTS AND ESTIMATED USEFUL LIVES Preliminary Fair Value Weighted Average Useful Life (in Years) Distribution rights $ 1,101,871 0 ) (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 18,115,423 Other current assets 224,522 Right of use assets 1,127,130 Long-term investments and other non-current assets 166,107 Other payables and other current assets (2,503,607 ) Operating lease liabilities (1,013,492 ) Total purchase price for acquisition, net of US$ 112,070 $ 16,224,379 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF DUE FROM RELATED PARTIES | As of June 30, 2022 and 2021, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES June 30, 2022 June 30, 2021 Yang Bin $ - $ 46,454 Beijing Huiyinansheng Asset Management Co., Ltd (a.) - 23,228 Wang Qiwei - 62,716 Zhao Min 1,410 - Shanghai Gaojing Private Fund Management (b.) 429,998 - Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (c.) 1,719,568 - Zhongjian (Qingdao) International Logistics Development Co., Ltd. (d.) 4,644,011 - Total due from related parties 6,794,987 132,398 Less: due from related parties, held for discontinued operations - - Due from related parties, held for continuing operations $ 6,794,987 $ 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$ 1,642,355 11.0 September 16, 2022 6.0 77,213 80,113 Upon maturity date, the Company signed a loan extension agreement with the related party to extend the loan repayment by installments, among which, US$ 223,957 1.5 746,525 5.0 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$ 4,464,219 29.9 October 27, 2022 6.0 179,792 186,543 year ended June 30, 2022 |
SCHEDULE OF DUE TO RELATED PARTIES | SCHEDULE OF DUE TO RELATED PARTIES June 30, 2022 June 30, 2021 Wu Yang $ 95,630 $ 99,183 Wang Sai 96,081 91,433 Zhou Guocong - 551,314 Li Baolin (a.) - 232,275 Zhao Min (b.) 562,528 185,202 Zhou Shunfang (c.) 2,044,561 - Total due to related parties 2,798,800 1,159,407 Less: due to related parties, held for discontinued operations - - Due to related parties, held for continuing operations $ 2,798,800 $ 1,159,407 a. On December 10, 2019, the Company entered into a loan agreement with Li Baolin to borrow an amount of US$ 232,275 1.5 March 31, 2022 20.0 per annum. The loan was fully repaid by the Company upon its maturity. b. During the year ended June 30, 2022, the Company entered into a series of loan agreements with Zhao Min to borrow an aggregated amount of US$ 365,797 2.45 July 2022 to September 2022 5.0 c. During the year ended June 30, 2022, the Company entered into a series of loan agreements with Zhou Shunfang to borrow an aggregated amount of US$ 1,269,092 8.5 March 31, 2022 20.0 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Jun. 30, 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) 2022 2021 For the years ended June 30, 2022 2021 Current income tax provision $ (6,454 ) $ 43,701 Deferred income tax benefit (285,812 ) - Total income tax expenses (benefit) (292,266 ) 43,701 Less: income tax expenses, held for discontinued operations - (43,701 ) Income tax benefit, held for continuing operations $ (292,266 ) $ - |
SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES | SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES June 30, 2022 June 30, 2021 Deferred tax assets: Allowance for doubtful accounts $ 1,252,245 $ 951,136 Inventory reserve 311,439 306,308 Net operating loss carry-forwards 979,682 552,579 Total 2,543,366 1,810,023 Valuation allowance (2,543,366 ) (1,810,023 ) Total deferred tax assets - - Deferred tax liability: Distribution rights - (285,699 ) Total deferred tax liability - (285,699 ) Deferred tax liability, net - (285,699 ) Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ - $ (285,699 ) |
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE | Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE June 30, 2022 June 30, 2021 Beginning balance $ 1,810,023 $ 1,185,655 Current year addition 798,160 512,028 Exchange difference (64,817 ) 112,340 Ending balance 2,543,366 1,810,023 Less: valuation allowance, held for discontinued operations - (1,362,329 ) Valuation allowance, held for continuing operations $ 2,543,366 $ 447,694 |
SCHEDULE OF TAXES PAYABLE | Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE June 30, 2022 June 30, 2021 Income tax payable $ 992,780 $ 3,376,499 Value added tax payable 34,925 73,390 Business tax and other taxes payable 3,375 8,573 Total tax payable 1,031,080 3,458,462 Less: tax payable, held for discontinued operations - (1,743,673 ) Tax payable, held for continuing operations $ 1,031,080 $ 1,714,789 Income tax payable - current portion $ 584,220 $ 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 $ 584,220 $ 1,208,348 Income tax payable - noncurrent portion $ 446,860 $ 506,441 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 446,860 $ 506,441 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF INFORMATION BY SEGMENT | The following table presents summarized information by segment for the year ended June 30, 2022 SCHEDULE OF INFORMATION BY SEGMENT For the year ended June 30, 2022 Continuing Operations Discontinued Operations Luobuma Other agricultural Freight Herbal products products services Total products Total Segment revenue $ 43,949 $ 1,687,884 $ 454,627 $ 2,186,460 $ - $ 2,186,460 Cost of revenue and related business and sales tax 98,209 3,364,744 334,170 3,797,123 - 3,797,123 Gross profit (loss) (54,260 ) (1,676,860 ) 120,457 (1,610,663 ) - (1,610,663 ) Gross loss % (123.5 )% (99.3 )% 26.5 % (73.7 )% - (73.7 )% The following table presents summarized information by segment for the year ended June 30, 2021 For the year ended June 30, 2021 Continuing Operations Discontinued Operations Luobuma Other agricultural Freight Herbal products products services Total products Total Segment revenue $ 115,590 $ 2,120,484 $ 785,630 $ 3,021,704 $ 8,085,527 $ 11,107,231 Cost of revenue and related business and sales tax 200,263 6,334,964 722,628 7,257,855 7,099,353 14,357,208 Gross loss (84,673 ) (4,214,480 ) 63,002 (4,236,151 ) 986,174 (3,249,977 ) Gross loss% (73.3 )% (198.8 )% 8.0 % (140.2 )% 12.2 % (29.3 )% Total assets as of June 30, 2022 and 2021 June 30, 2022 June 30, 2021 Luobuma products $ 10,982,562 $ 3,849,675 Other agricultural products 46,488,334 28,531,029 Freight services 6,355,121 4,235,122 Herbal products - 24,702,773 Total assets 63,826,017 61,318,599 Less: total assets held for discontinued operations - (24,702,773 ) Total assets, held for continuing operations $ 63,826,017 $ 36,615,826 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 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 June 30, 2022 and 2021 consist of the following: SCHEDULE OF DISCONTINUED OPERATIONS June 30, 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 For the Years Ended June 30, 2022 2021 REVENUE $ - $ 8,085,527 COST OF REVENUE Cost of product and services - 7,069,026 Business and sales related tax - 30,327 Total cost of revenue - 7,099,353 GROSS PROFIT - 986,174 OPERATING EXPENSES General and administrative expenses - 5,456,786 Selling expenses - 74,207 Total operating expenses - 5,530,993 LOSS FROM OPERATIONS - (4,544,819 ) OTHER EXPENSE Loss from equity method investments - (3,784,000 ) Other expenses, net - (2,171,150 ) Interest expense, net - (73,318 ) Total other expense - (6,028,468 ) LOSS BEFORE PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (10,573,287 ) PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - 43,701 NET LOSS FROM DISCONTINUED OPERATIONS FROM ANKANG GROUP - (10,616,988 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS (2,433,395 ) - NET LOSS FROM DISCONTINUED OPERATIONS (2,433,395 ) (10,616,988 ) Net loss attributable to non-controlling interest - (578,900 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (2,433,395 ) $ (10,038,088 ) |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) | Jun. 30, 2022 USD ($) | Apr. 13, 2022 USD ($) | Dec. 07, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jan. 07, 2021 USD ($) | Jan. 07, 2021 CNY (¥) | Jul. 23, 2020 USD ($) | Jul. 23, 2020 CNY (¥) | Jun. 30, 2020 USD ($) | May 05, 2019 | Mar. 13, 2019 USD ($) | Mar. 13, 2019 CNY (¥) | Oct. 26, 2017 | Sep. 30, 2017 USD ($) | Sep. 30, 2017 CNY (¥) | Dec. 10, 2016 USD ($) | Dec. 10, 2016 CNY (¥) | Jul. 14, 2006 | Dec. 30, 2004 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 33,312,888 | $ 45,378,206 | $ 66,512,401 | ||||||||||||||||
Runze [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 1,502,650 | ¥ 10,000,000 | |||||||||||||||||
Xinjiang Taihe [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 1,502,650 | ¥ 10,000,000 | |||||||||||||||||
Tianjin Tajite [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 2,100,000 | ¥ 14,000,000 | |||||||||||||||||
Tenjove Newhemp Biotechnology Co., Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 1,502,650 | ¥ 10,000,000 | |||||||||||||||||
Life Science [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 10,000,000 | $ 10,000,000 | |||||||||||||||||
Shanghai Jiaying International Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 29,900,000 | ¥ 200,000,000 | |||||||||||||||||
Inner Mongolia Shineco Zhonghemo Biotechnology Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Registered capital | $ 7,500,000 | ¥ 50,000,000 | |||||||||||||||||
Tenet Jove Technological Development Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Equity ownership interest percentage | 100% | ||||||||||||||||||
Tenet Jove Technological Development Co Ltd [Member] | Tianjin Tenet Huatai Technological Development Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Equity ownership interest percentage | 90% | ||||||||||||||||||
Tianjin Tajite [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Equity ownership interest percentage | 77.40% | 26.40% | 51% | 51% | 51% | ||||||||||||||
Life Science Group Hong Kong Co [Member] | Share Transfer Agreement [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Equity ownership interest percentage | 100% | ||||||||||||||||||
Shanghai Jiaying International Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Equity ownership interest percentage | 90% | 90% | |||||||||||||||||
Inner Mongolia Shineco Zhonghemo Biotechnology Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||
Equity ownership interest percentage | 55% | 55% |
GOING CONCERN UNCERTAINTIES (De
GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Aug. 11, 2022 | Jul. 26, 2022 | Jun. 13, 2022 | Dec. 10, 2020 | Sep. 05, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 27,067,139 | $ 32,056,433 | |||||
Net Cash Provided by (Used in) Operating Activities | 5,712,562 | 14,649,557 | |||||
Aggregate number of shares of common stock, shares | 604,900 | 310,977 | |||||
Number of shares issued for common stock, gross proceeds | $ 1,500,203 | 9,681,170 | 5,206,423 | ||||
Proceeds from issuance of stock | $ 1,643,087 | $ 9,681,171 | $ 5,206,423 | ||||
Stock Purchase Agreement [Member] | Non Us Investors [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Aggregate number of shares of common stock, shares | 2,354,500 | ||||||
Share price | $ 2.12 | ||||||
Stock Purchase Agreement [Member] | Non Us Investors [Member] | Subsequent Event [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Aggregate number of shares of common stock, shares | 1,921,683 | ||||||
Share price | $ 0.915 | ||||||
Number of shares issued for common stock, gross proceeds | $ 4,991,540 | ||||||
Stock Purchase Agreement [Member] | Non Us Investors [Member] | Subsequent Event [Member] | Maximum [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Number of shares issued for common stock, gross proceeds | $ 1,758,340 | ||||||
Proceeds from issuance of stock | $ 1,000,000 |
SCHEDULE OF CONSOLIDATED ASSETS
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Current assets | $ 59,735,425 | $ 49,278,577 |
Plant and equipment, net | 1,375,472 | 2,253,944 |
Total assets | 63,826,017 | 61,318,599 |
Total liabilities | (30,513,129) | (15,940,393) |
Net sales | 2,186,460 | 3,021,704 |
Gross loss | (1,610,663) | (4,236,151) |
Loss from operations | (23,011,213) | (21,412,935) |
Net loss | (27,033,094) | (31,445,447) |
Current assets | 19,659,742 | |
Total liabilities | (4,866,934) | |
Net sales | 2,186,460 | 11,107,231 |
Gross profit | (1,610,663) | (3,249,977) |
Net loss | (2,433,395) | (10,616,988) |
Net loss | (24,633,744) | (21,439,445) |
Discontinued Operations [Member] | ||
Current assets | 19,659,742 | |
Plant and equipment, net | 3,683,525 | |
Total assets | 24,702,773 | |
Total liabilities | (4,866,934) | |
Net sales | 8,085,527 | |
Gross profit | 986,174 | |
Loss from operations | (4,544,819) | |
Net loss | (2,433,395) | (10,616,988) |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Current assets | 34,723,255 | 44,631,744 |
Plant and equipment, net | 1,446 | 4,698,184 |
Other non-current assets | 1,211,293 | 4,894,445 |
Total assets | 35,935,994 | 54,224,373 |
Total liabilities | (5,719,289) | (7,377,886) |
Net assets | 30,216,705 | 46,846,487 |
Net sales | 2,142,511 | 10,991,641 |
Gross loss | (1,556,403) | (3,165,304) |
Loss from operations | (11,476,699) | (22,319,655) |
Net loss | (14,023,582) | (27,754,161) |
Variable Interest Entity, Not Primary Beneficiary [Member] | Discontinued Operations [Member] | ||
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 | 8,085,527 | |
Gross profit | 986,174 | |
Loss from operations | (4,544,819) | |
Net loss | (2,433,395) | (10,038,088) |
Variable Interest Entity, Not Primary Beneficiary [Member] | Continuing Operations [Member] | ||
Current assets | 34,723,255 | 24,972,002 |
Plant and equipment, net | 1,446 | 1,014,659 |
Other non-current assets | 1,211,293 | 3,534,939 |
Total assets | 35,935,994 | 29,521,600 |
Total liabilities | (5,719,289) | (2,510,952) |
Net assets | 30,216,705 | 27,010,648 |
Net sales | 2,142,511 | 2,906,114 |
Gross loss | (1,556,403) | (4,151,478) |
Loss from operations | (11,476,699) | (17,774,836) |
VIEs And Their Subsidiaries [Member] | Continuing Operations [Member] | ||
Net loss | $ (11,590,187) | $ (17,716,073) |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 12 Months Ended |
Jun. 30, 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 ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Net loss from continuing operations attributable to Shineco | $ (24,599,699) | $ (21,407,359) |
Net loss from discontinued operations attributable to Shineco | (2,433,395) | (10,038,088) |
Net loss attributable to Shineco | $ (27,033,094) | $ (31,445,447) |
Weighted average shares outstanding - basic and diluted | 9,458,077 | 4,401,048 |
Basic and diluted | $ (2.60) | $ (4.86) |
Basic and diluted | (0.26) | (2.28) |
Basic and diluted | $ (2.86) | $ (7.14) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | ||||
Dec. 22, 2017 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2018 USD ($) | Jun. 30, 2020 USD ($) | |
Cash equivalents | $ 0 | $ 0 | |||
Allowance for doubtful accounts | 7,317,236 | 13,481,021 | $ 5,235,436 | ||
Inventory reserve | 1,249,543 | 1,349,288 | |||
Right of use assets | $ 2,268,344 | ||||
U.S. corporate tax rate | 35% | 21% | |||
Income tax expenses | $ (292,266) | $ 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 | 0.1493 | 0.1549 | |||
Foreign currency exchange rate translation one | 0.1549 | 0.1510 | |||
China, Yuan Renminbi | |||||
Foreign currency translation | 1 | 1 | |||
Foreign currency exchange rate translation one | 1 | 1 | |||
Land Use Rights [Member] | |||||
Useful life | 50 years | ||||
Continuing Operations [Member] | |||||
Allowance for doubtful accounts | $ 7,317,236 | $ 9,805,402 | |||
Inventory reserve | 1,249,543 | 1,349,288 | |||
Uncollectible advances to suppliers | 13,544,627 | 11,546,609 | |||
Impairment of Long-Lived Assets to be Disposed of | 4,315,888 | ||||
Continuing Operations [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Right of use assets | 2,268,344 | ||||
Discontinued Operations [Member] | |||||
Allowance for doubtful accounts | 3,675,619 | ||||
Inventory reserve | |||||
Uncollectible advances to suppliers | 1,773,698 | ||||
Impairment of Long-Lived Assets to be Disposed of |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Credit Loss [Abstract] | |||
Accounts receivable | $ 9,138,790 | $ 19,640,749 | |
Less: allowance for doubtful accounts | (7,317,236) | (13,481,021) | $ (5,235,436) |
Accounts receivable, net | 1,821,554 | 6,159,728 | |
Less: accounts receivable, net, held for discontinued operations | (3,473,057) | ||
Accounts receivable, net, held for continuing operations | $ 1,821,554 | $ 2,686,671 |
SCHEDULE OF MOVEMENT OF ALLOWAN
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 13,481,021 | $ 5,235,436 |
Charge to expense | 1,632,670 | 7,556,516 |
Less: cessation of subsidiaries and disposal of VIE | (7,524,110) | |
Foreign currency translation adjustments | (272,345) | 689,069 |
Ending balance | $ 7,317,236 | $ 13,481,021 |
SCHEDULE OF INVENTORIES, NET (D
SCHEDULE OF INVENTORIES, NET (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 67,467 | $ 208,253 |
Work-in-process | 18,709,325 | 1,232,787 |
Finished goods | 1,191,275 | 1,512,884 |
Less: inventory reserve | (1,249,543) | (1,349,288) |
Total inventories, net | 18,718,524 | 1,604,636 |
Less: inventories, net, held for discontinued operations | (281,245) | |
Inventories, net, held for continuing operations | $ 18,718,524 | $ 1,323,391 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | ||
Inventory write down | $ 1,574,241 | $ 3,942,784 |
SCHEDULE OF ADVANCES TO SUPPLIE
SCHEDULE OF ADVANCES TO SUPPLIERS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Advances To Suppliers Net | |||
Advances to suppliers | $ 13,548,178 | $ 21,810,781 | |
Less: allowance for doubtful accounts | (13,544,627) | (13,320,307) | $ (3,342,590) |
Advance to suppliers, net | 3,551 | 8,490,474 | |
Less: advance to suppliers, net, held for discontinued operations | (700,348) | ||
Advance to suppliers, net, held for continuing operations | $ 3,551 | $ 7,790,126 |
SCHEDULE OF MOVEMENT OF ALLOW_2
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS ON ADVANCES TO SUPPLIERS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Advances To Suppliers Net | ||
Beginning balance | $ 13,320,307 | $ 3,342,590 |
Charge to expense | 4,938,064 | 9,420,385 |
Less: cessation of subsidiaries and disposal of VIE | (4,210,407) | |
Foreign currency translation adjustments | (503,337) | 557,332 |
Ending balance | $ 13,544,627 | $ 13,320,307 |
SCHEDULE OF OTHER CURRENT ASSET
SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Loan to third parties (1) | [1] | $ 16,345,717 | $ 1,654,844 | |
Other receivables (2) | [2] | 3,246,293 | 2,770,136 | |
Short-term deposit | 164,261 | 391,274 | ||
Prepaid expenses | 20,872 | 46,453 | ||
Other current assets, gross | 19,777,143 | 4,862,707 | ||
Less: allowance for doubtful accounts | 2,545,565 | 995,760 | $ 761,782 | |
Total other current assets, net | 17,231,578 | 3,866,947 | ||
Less: other current assets, net, held for discontinued operations | (2,523,609) | |||
other current assets, net, held for continuing operations | $ 17,231,578 | $ 1,343,338 | ||
[1]Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners or employees of the Company. These loans bear interest or no interest and have terms of no more than one year. The Company periodically reviewed the loans to 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 these third-party debtors and the relationships with them. As the date of the report, approximately US$ 12.5 |
SCHEDULE OF OTHER CURRENT ASS_2
SCHEDULE OF OTHER CURRENT ASSETS (Details) (Paranthetical) $ in Millions | Jun. 30, 2022 USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Loans to related party | $ 12.5 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Beginning balance | $ 995,760 | $ 761,782 |
Charge to expense | 2,117,316 | 158,334 |
Less: cessation of subsidiaries and disposal of VIE | (326,491) | |
Foreign currency translation adjustments | (241,020) | 75,644 |
Ending balance | $ 2,545,565 | $ 995,760 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 5,478,914 | $ 12,494,308 |
Less: accumulated depreciation and amortization | (3,388,640) | (6,556,839) |
Less: impairment for property and equipment | (714,802) | |
Total property and equipment, net | 1,375,472 | 5,937,469 |
Less: property and equipment, net, held for discontinued operations | (3,683,525) | |
Property and equipment, net held for continuing operations | 1,375,472 | 2,253,944 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,808,172 | 8,242,357 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 27,351 | 688,979 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 139,077 | 63,090 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 178,271 | 243,543 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 186,314 | |
Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 3,139,729 | $ 3,256,339 |
SCHEDULE OF LEASEHOLD IMPROVEME
SCHEDULE OF LEASEHOLD IMPROVEMENTS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Blueberry Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | $ 2,412,079 | $ 2,501,664 |
Leasehold Improvements, Gross | (2,412,079) | (2,501,664) |
Yew Tree Planting Base Reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 270,242 | 280,279 |
Leasehold Improvements, Gross | (270,242) | (280,279) |
Greenhouse Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 457,408 | 474,396 |
Leasehold Improvements, Gross | (457,408) | (474,396) |
Impairment Of Property And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 3,139,729 | |
Leasehold Improvements, Gross | (3,139,729) | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 3,256,339 | |
Leasehold Improvements, Gross | (3,256,339) | |
Leasehold Improvements [Member] | Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | ||
Leasehold Improvements, Gross | ||
Leasehold Improvements [Member] | Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvements | 3,256,339 | |
Leasehold Improvements, Gross | $ (3,256,339) |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Impairment of property and equipment, and impairment loss | $ 741,644 | |
Continuing Operations [Member] | ||
Depreciation and amortization expense | 386,972 | 255,255 |
Discontinued Operations [Member] | ||
Depreciation and amortization expense | $ 0 | $ 260,317 |
SCHEDULE OF LAND USE RIGHTS (De
SCHEDULE OF LAND USE RIGHTS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Discontinued Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
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 | 1,274,262 | |
Land Use Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
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 | 1,274,262 | |
Land Use Rights [Member] | Discontinued Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
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 | 1,274,262 | |
Land Use Rights [Member] | Continuing Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total land use rights, net | ||
Less: land use rights, net, held for discontinued operations | ||
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 ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 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 | $ 39,592 |
SCHEDULE OF INVESTMENT IN UNCON
SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Total investment | $ 617,446 | |
Discontinued Operations [Member] | ||
Total investment | ||
Continuing Operations [Member] | ||
Total investment | 617,446 | |
Gaojing Private Fund [Member] | ||
Total investment | $ 617,446 |
SCHEDULE OF FINANCIAL INFORMATI
SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Current assets | $ 59,735,425 | $ 49,278,577 |
Current liabilities | 29,040,302 | 14,795,390 |
Net sales | 2,186,460 | 3,021,704 |
Gross loss | (1,610,663) | (4,236,151) |
Loss from operations | (23,011,213) | (21,412,935) |
Net loss | (27,033,094) | (31,445,447) |
Majority-Owned Subsidiary, Unconsolidated [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current assets | 558,962 | |
Current liabilities | 1,478 | |
Majority-Owned Subsidiary, Unconsolidated [Member] | Continuing Operations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net sales | ||
Gross loss | (94) | |
Loss from operations | (403,069) | |
Net loss | $ (414,231) |
SCHEDULE OF FINANCIAL INFORMA_2
SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM DISCONTINUED OPERATIONS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales | $ 2,186,460 | $ 11,107,231 |
Gross profit | (1,610,663) | (3,249,977) |
Net loss | (2,433,395) | (10,616,988) |
Discontinued Operations [Member] | ||
Net sales | 8,085,527 | |
Gross profit | 986,174 | |
Loss from operations | (4,544,819) | |
Net loss | (2,433,395) | (10,616,988) |
Discontinued Operations [Member] | Un Consolidated Entities [Member] | ||
Net sales | 21,373,037 | |
Gross profit | 1,763,172 | |
Loss from operations | (4,099,079) | |
Net loss | $ (4,124,960) |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) ¥ in Thousands | 12 Months Ended | ||||||||||||||
Jan. 30, 2022 | Jan. 18, 2022 USD ($) shares | Dec. 10, 2020 shares | Sep. 05, 2019 USD ($) shares | Oct. 21, 2013 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 CNY (¥) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 CNY (¥) | Mar. 05, 2021 USD ($) | Mar. 05, 2021 CNY (¥) | Dec. 31, 2013 USD ($) | Dec. 31, 2013 CNY (¥) | Oct. 21, 2013 CNY (¥) | |
Equity method investments | $ 750,000 | ||||||||||||||
Income loss from equity method investemnts | $ (132,554) | ||||||||||||||
Stock issued during period, shares | shares | 604,900 | 310,977 | |||||||||||||
Stock issued during period, value | $ 1,500,203 | 9,681,170 | 5,206,423 | ||||||||||||
Shaanxi Pharmaceutical Group [Member] | |||||||||||||||
Profit sharing on income, percentage | 29% | ||||||||||||||
Deductible statutory reserve, percentage | 30% | ||||||||||||||
Employee welfare fund, percentage | 10% | ||||||||||||||
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% | 32% | |||||||||||||
Income loss from equity method investemnts | 132,554 | ||||||||||||||
Two Equity Investment Agreements [Member] | Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. [Member] | |||||||||||||||
Equity method investment ownership percentage | 49% | 49% | |||||||||||||
Three Shares Transfer Agreements [Member] | |||||||||||||||
Percentage of issued and outstanding equity interest | 51% | ||||||||||||||
Stock issued during period, shares | shares | 700,551 | ||||||||||||||
Stock issued during period, value | $ 8 | ||||||||||||||
Co-operation Agreement [Member] | |||||||||||||||
Agreement description | 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] | |||||||||||||||
Equity method investments | $ 1,000,000 | ¥ 6,800 | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Discontinued Operations [Member] | |||||||||||||||
Income loss from equity method investemnts | |||||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Shaanxi Pharmaceutical Group [Member] | |||||||||||||||
Equity method investment ownership percentage | 7% | 7% | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Supplemental Agreement [Member] | |||||||||||||||
Income loss from equity method investemnts | 0 | 0 | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Supplemental Agreement [Member] | Discontinued Operations [Member] | |||||||||||||||
Income loss from equity method investemnts | $ 3,784,000 | ||||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Supplemental Agreement [Member] | Shaanxi Pharmaceutical Group [Member] | |||||||||||||||
Equity method investment ownership percentage | 49% | 49% | |||||||||||||
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% | 49% | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Two Equity Investment Agreements [Member] | Sunsimiao Drugstores [Member] | |||||||||||||||
Equity method investment ownership percentage | 49% | 49% | |||||||||||||
Ankang Retail Chain Co., Ltd [Member] | Supplemental Agreements [Member] | Shaanxi Pharmaceutical Group [Member] | |||||||||||||||
Equity method investment ownership percentage | 49% | 49% | |||||||||||||
Guangyuan [Member] | |||||||||||||||
Equity method investments | $ 300,000 | ||||||||||||||
Guangyuan [Member] | Zhejiang Zhen Ai Network Warehousing Services Co., Ltd [Member] | |||||||||||||||
Equity method investments | ¥ | ¥ 2,000 | ||||||||||||||
Guangyuan [Member] | Yushe Pharmaceutical [Member] | |||||||||||||||
Equity method investment ownership percentage | 20% | 20% |
SCHEDULE OF OPERATING LEASE REL
SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 01, 2019 |
Leases | |||
ROU lease assets | $ 2,088,149 | $ 3,585,703 | $ 3,587,788 |
Operating lease liabilities – current | 959,909 | 434,411 | |
Operating lease liabilities – non-current | 1,025,967 | 352,863 | |
Total operating lease liabilities | $ 1,985,876 | $ 787,274 | $ 450,123 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES (Details) | Jun. 30, 2022 | Jun. 30, 2021 |
Leases | ||
Weighted average remaining lease term (years) | 6 years 10 months 17 days | 7 years 3 months |
Weighted average discount rate | 5.30% | 5% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 01, 2019 |
Leases | |||
2023 | $ 1,034,731 | ||
2024 | 589,981 | ||
2025 | 180,776 | ||
2026 | 22,396 | ||
2027 | 22,396 | ||
Thereafter | 455,380 | ||
Total lease payments | 2,305,660 | ||
Less: imputed interest | (319,784) | ||
Present value of lease liabilities | $ 1,985,876 | $ 787,274 | $ 450,123 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jul. 01, 2019 | |
Operating lease ROU assets | $ 2,088,149 | $ 3,585,703 | $ 3,587,788 |
Operating lease liabilities | 1,985,876 | 787,274 | $ 450,123 |
Impairment loss on ROU | 2,268,344 | ||
Continuing Operations [Member] | |||
Rent expenses | 1,084,749 | 641,486 | |
Discontinued Operations [Member] | |||
Rent expenses | |||
Offices Space [Member] | Minimum [Member] | |||
Lessee, Operating Lease, Term of Contract | 3 years | ||
Offices Space [Member] | Maximum [Member] | |||
Lessee, Operating Lease, Term of Contract | 24 years |
SCHEDULE OF SHORT-TERM LOANS (D
SCHEDULE OF SHORT-TERM LOANS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Short-Term Debt [Line Items] | ||
Total short-term loans | $ 1,858,202 | |
Total short-term loans | (1,858,202) | |
Discontinued Operations [Member] | ||
Short-Term Debt [Line Items] | ||
Total short-term loans | 1,858,202 | |
Total short-term loans | (1,858,202) | |
Continuing Operations [Member] | ||
Short-Term Debt [Line Items] | ||
Total short-term loans | ||
Total short-term loans | ||
Agricultural Bank of China One [Member] | ||
Short-Term Debt [Line Items] | ||
Total short-term loans | $ 1,548,502 | |
Maturity Date | Feb. 27, 2022 | |
Short term debt weighted average interest rate | 5.66% | |
Total short-term loans | $ (1,548,502) | |
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 | $ 309,700 | |
Maturity Date | Sep. 01, 2022 | |
Short term debt weighted average interest rate | 5.66% | |
Total short-term loans | $ (309,700) | |
Agricultural Bank of China Two [Member] | Loan Extension Agreement [Member] | ||
Short-Term Debt [Line Items] | ||
Maturity Date | Sep. 01, 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. |
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 |
Short-term debt, weighted average interest rate, at point in time | 5.66% |
Agricultural Bank of China One [Member] | Extended Maturity [Member] | |
Short-Term Debt [Line Items] | |
Debt instrument, maturity date | Feb. 27, 2022 |
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. 01, 2022 |
Short-term debt, weighted average interest rate, at point in time | 5.66% |
Agricultural Bank of China Two [Member] | Extended Maturity [Member] | |
Short-Term Debt [Line Items] | |
Debt instrument, maturity date | Sep. 01, 2022 |
Agricultural Bank of China Two [Member] | Loan Extension Agreement [Member] | |
Short-Term Debt [Line Items] | |
Debt instrument, maturity date | Sep. 01, 2021 |
SHORT-TERM LOANS (Details Narra
SHORT-TERM LOANS (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Weighted average interest rate | 5.44% | |
Continuing Operations [Member] | ||
Interest expense | ||
Discontinued Operations [Member] | ||
Interest expense | $ 115,806 |
SCHEDULE OF FAIR VALUE OF DISTR
SCHEDULE OF FAIR VALUE OF DISTRIBUTION RIGHTS AND ESTIMATED USEFUL LIVES (Details) - USD ($) | Dec. 12, 2016 | Jun. 30, 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 | $ 1,101,871 | |||
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) | Jun. 30, 2022 USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Due from related party | $ 108,296 |
Inventory | 18,115,423 |
Other current assets | 224,522 |
Right of use assets | 1,127,130 |
Long-term investments and other non-current assets | 166,107 |
Other payables and other current assets | (2,503,607) |
Operating lease liabilities | (1,013,492) |
Total purchase price for acquisition, net of US$112,070 of cash | $ 16,224,379 |
SUMMARIZES THE ALLOCATION OF _2
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) (Parenthetical) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |
Pruchase price of acquisition | $ 112,070 |
ACQUISITION (Details Narrative)
ACQUISITION (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 CNY (¥) | Dec. 31, 2016 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | May 05, 2019 | Oct. 26, 2017 USD ($) | Oct. 26, 2017 CNY (¥) | Dec. 12, 2016 | |
Business Acquisition [Line Items] | ||||||||
Business combination acquisition related costs | ||||||||
Net Loss | (27,033,094) | $ (31,445,447) | ||||||
Tianjin Tajite [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquire equity interest percentage | 77.40% | 51% | ||||||
Business acquisition consideration amount | ¥ 14,000,000 | $ 2,100,000 | ||||||
Goodwill | $ 2,100,000 | ¥ 14,010,195 | ||||||
[custom:TransferredshipOfEquityPercentage-0] | 26.40% | |||||||
Guangyuan Forest Development Co Ltd [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net sales | 44,150 | |||||||
Net Loss | $ 904,922 |
SCHEDULE OF DUE FROM RELATED PA
SCHEDULE OF DUE FROM RELATED PARTIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 6,794,987 | $ 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 | 6,794,987 | 132,398 | |
Yang Bin [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 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 | 62,716 | ||
Zhao Min [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1,410 | ||
Shanghai Gaojing Private Fund Management [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [2] | 429,998 | |
Zhongjian Yijia Health Technology CoLtd [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [3] | 1,719,568 | |
Zhongjian International Logistics Development Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [4] | $ 4,644,011 | |
[1]This company is wholly owned by one of the Company’s senior managements.[2]The Company owns 32 1,642,355 11.0 September 16, 2022 6.0 77,213 80,113 4,464,219 29.9 October 27, 2022 6.0 179,792 186,543 year ended June 30, 2022 |
SCHEDULE OF DUE FROM RELATED _2
SCHEDULE OF DUE FROM RELATED PARTIES (Details) (Parenthetical) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Oct. 28, 2021 USD ($) | Sep. 17, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Oct. 28, 2021 CNY (¥) | Sep. 17, 2021 CNY (¥) | |
Related Party Transaction [Line Items] | |||||||||
Interest income other | $ 77,213 | ||||||||
Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Repayment receivable of debt | ¥ | ¥ 1.5 | ||||||||
Payments for debt | ¥ | ¥ 5 | ||||||||
Zhongjian Yijia Health Technology CoLtd [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Maturity date | Sep. 16, 2022 | ||||||||
Fixed annual interest rate | 6% | 6% | |||||||
Investment income, interest | 80,113 | ||||||||
Zhongjian Yijia Health Technology CoLtd [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Repayment receivable of debt | $ 223,957 | ||||||||
Payments for debt | $ 746,525 | ||||||||
Zhongjian Yijia Health Technology CoLtd [Member] | Loan Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument face amount | $ 1,642,355 | ¥ 11 | |||||||
Zhongjian International Logistics Development Co Ltd [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument face amount | $ 4,464,219 | ¥ 29.9 | |||||||
Maturity date | Oct. 27, 2022 | ||||||||
Fixed annual interest rate | 6% | 6% | |||||||
Investment income, interest | 186,543 | ||||||||
Interest Receivable | $ 179,792 | ||||||||
Zhongjian Yijia Health Technology CoLtd [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Equity ownership interest percentage | 32% |
SCHEDULE OF DUE TO RELATED PART
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 2,798,800 | $ 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 | 2,798,800 | 1,159,407 | |
Wu Yang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 95,630 | 99,183 | |
Wang Sai [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 96,081 | 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 | [1] | 232,275 | |
Zhao Min [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | [2] | 562,528 | 185,202 |
Zhao Shunfang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | [3] | $ 2,044,561 | |
[1]On December 10, 2019, the Company entered into a loan agreement with Li Baolin to borrow an amount of US$ 232,275 1.5 March 31, 2022 20.0 365,797 2.45 July 2022 to September 2022 5.0 1,269,092 8.5 March 31, 2022 20.0 |
SCHEDULE OF DUE TO RELATED PA_2
SCHEDULE OF DUE TO RELATED PARTIES (Details) (Parenthetical) - Loan Agreement [Member] ¥ in Thousands | 12 Months Ended | |||
Dec. 10, 2019 USD ($) | Dec. 10, 2019 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | |
Li Baolin [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related party loan | $ 232,275 | ¥ 1,500 | ||
Maturity Date | Mar. 31, 2022 | Mar. 31, 2022 | ||
Annual interest rate | 20% | 20% | ||
Zhao Min [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related party loan | $ 365,797 | ¥ 2,450 | ||
Annual interest rate | 5% | 5% | ||
Debt Instrument, Maturity Date, Description | July 2022 to September 2022 | July 2022 to September 2022 | ||
Zhou Shunfang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related party loan | $ 1,269,092 | ¥ 8,500 | ||
Maturity Date | Mar. 31, 2022 | Mar. 31, 2022 | ||
Annual interest rate | 20% | 20% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 2,798,800 | $ 1,159,407 |
Interest expenses on loan | 442,241 | 0 |
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 | 1,892,410 | |
Accounts receivable related parties | $ 551,237 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | ||||
Aug. 19, 2021 | Jul. 16, 2021 | Jun. 16, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Short-Term Debt [Line Items] | |||||
Proceeds from convertible debt | $ 17,000,000 | $ 3,000,000 | |||
Amortization of Debt Issuance Costs | $ 1,379,777 | ||||
Common stock shares issued | 10,983,863 | 7,881,482 | |||
Investor [Member] | |||||
Short-Term Debt [Line Items] | |||||
Amortization of Debt Issuance Costs | $ 1,379,777 | ||||
Common stock shares issued | 1,837,155 | ||||
Debt instrument periodic payment | $ 7,365,002 | ||||
Notes balance | 14,416,956 | ||||
Debt instrument carrying amount | 14,525,401 | ||||
Other deferred costs net | $ 108,445 | ||||
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 | |||
Maturity Date | Aug. 18, 2023 | ||||
Interest rate | 6% | ||||
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 ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current income tax provision | $ (6,454) | $ 43,701 | |
Deferred income tax benefit | (285,812) | ||
Total income tax expenses (benefit) | (292,266) | 43,701 | |
Less: income tax expenses, held for discontinued operations | (43,701) | ||
Income tax benefit, held for continuing operations | $ (292,266) | $ 744,766 |
SCHEDULE OF FINANCIAL REPORTING
SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | |||
Allowance for doubtful accounts | $ 1,252,245 | $ 951,136 | |
Inventory reserve | 311,439 | 306,308 | |
Net operating loss carry-forwards | 979,682 | 552,579 | |
Total | 2,543,366 | 1,810,023 | |
Valuation allowance | (2,543,366) | (1,810,023) | $ (1,185,655) |
Total deferred tax assets | |||
Distribution rights | (285,699) | ||
Total deferred tax liability | (285,699) | ||
Deferred tax liability, net | (285,699) | ||
Less: deferred tax liability, net, held for discontinued operations | |||
Deferred tax liability, net, held for continuing operations | $ (285,699) |
SCHEDULE OF MOVEMENT OF VALUATI
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 1,810,023 | $ 1,185,655 |
Current year addition | 798,160 | 512,028 |
Exchange difference | (64,817) | 112,340 |
Ending balance | 2,543,366 | 1,810,023 |
Valuation allowance, held for discontinued operations | (1,362,329) | |
Valuation allowance held for continuing operations | $ 2,543,366 | $ 447,694 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 992,780 | $ 3,376,499 |
Value added tax payable | 34,925 | 73,390 |
Business tax and other taxes payable | 3,375 | 8,573 |
Total tax payable | 1,031,080 | 3,458,462 |
Less: tax payable, held for discontinued operations | (1,743,673) | |
Tax payable, held for continuing operations | 1,031,080 | 1,714,789 |
Income tax payable - current portion | 584,220 | 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 | 584,220 | 1,208,348 |
Income tax payable - noncurrent portion | 446,860 | 506,441 |
Less: income tax payable - noncurrent portion, held for discontinued operations | ||
Income tax payable - noncurrent portion, held for continuing operations | $ 446,860 | $ 506,441 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | ||
Income tax expenses | $ (292,266) | $ 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 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||||||||||||||
Jun. 13, 2022 | Apr. 11, 2022 | 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 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 14, 2020 | ||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Stock issuance, shares | 604,900 | 310,977 | |||||||||||||
Share price | $ 2.73 | $ 4.68 | $ 5.54 | ||||||||||||
Stock issuance | $ 1,500,203 | $ 9,681,170 | $ 5,206,423 | ||||||||||||
Statutory surplus reserve percentage | 10% | ||||||||||||||
Registered capital reserve | 50% | ||||||||||||||
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 | 10,983,863 | 7,881,482 | |||||||||||||
Gross proceeds | $ 1,643,087 | $ 9,681,171 | $ 5,206,423 | ||||||||||||
Common stock outstanding | $ 3,024,000 | ||||||||||||||
Securities Purchase Agreement [Member] | Jing Wang [Member] | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Share price | $ 2.26 | ||||||||||||||
Gross proceeds | $ 2,200,000 | ||||||||||||||
Sale of stock | 973,451 | ||||||||||||||
Securities Purchase Agreement [Member] | GHS Investments LLC [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 | ||||||||||||||
Stock Purchase Agreement [Member] | Non Us Investors [Member] | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Share price | $ 2.12 | ||||||||||||||
Gross proceeds | $ 4,991,540 | ||||||||||||||
Sale of stock | 2,354,500 | ||||||||||||||
Three Investors [Member] | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Stock issuance, shares | 364,445 | ||||||||||||||
Share price | $ 3 | ||||||||||||||
Gross proceeds | $ 1,093,355 | ||||||||||||||
Selected Investors [Member] | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Stock issuance, shares | 3,872,194 | ||||||||||||||
Share price | $ 3.2 | ||||||||||||||
Gross proceeds | $ 7,981,204 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Stock issuance, shares | [1] | 1,265,226 | 4,841,539 | ||||||||||||
Stock issuance | $ 1,265 | $ 4,841 | |||||||||||||
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] | |||||||||||||||
Stock issuance, shares | 190,354 | ||||||||||||||
Share price | $ 40.50 | ||||||||||||||
Stock issuance | $ 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 ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 91% | |
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 72% | |
Continuing Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 71% | |
Continuing Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 80% | |
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Vendor [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 92% | 95% |
Discontinued Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Six Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | |
Discontinued Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 98% | |
Discontinued Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Six Vendors [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | |
CHINA | ||
Concentration Risk [Line Items] | ||
Assets, percentage | 100% | 100% |
Revenue, percentage | 100% | 100% |
CHINA | Continuing Operations [Member] | ||
Concentration Risk [Line Items] | ||
Cash | $ 15,164,950 | $ 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 | 1 Months Ended | ||||||
Nov. 26, 2021 USD ($) shares | Sep. 03, 2019 shares | May 16, 2017 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2021 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Damages amount | $ 9,000,000 | $ 6,000,000 | |||||
Punitive damages | 10,000,000 | ||||||
Bond amount | $ 1,500,000 | ||||||
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 plaintiff | $ 47,500 | ||||||
Loss contingency accrual | $ 837,225 | ¥ 5.4 |
SCHEDULE OF INFORMATION BY SEGM
SCHEDULE OF INFORMATION BY SEGMENT (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 2,186,460 | $ 3,021,704 |
Segment revenue, discontinued operation | 2,186,460 | 11,107,231 |
Cost of revenue and related business and sales tax | 3,797,123 | 7,257,855 |
Cost of revenue and related business and sales tax, discontinued operation | 3,797,123 | 14,357,208 |
Gross profit (loss) | (1,610,663) | (4,236,151) |
Gross profit (loss), discontinued operation | $ (1,610,663) | $ (3,249,977) |
Gross loss percentage | (73.70%) | (140.20%) |
Gross loss percentage, discontinued operation | (73.70%) | (29.30%) |
Total assets | $ 63,826,017 | $ 61,318,599 |
Less: total assets held for discontinued operations | (24,702,773) | |
Total assets, held for continuing operations | 63,826,017 | 36,615,826 |
Luobuma Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 43,949 | 115,590 |
Cost of revenue and related business and sales tax | 98,209 | 200,263 |
Gross profit (loss) | $ (54,260) | $ (84,673) |
Gross loss percentage | (123.50%) | (73.30%) |
Total assets | $ 10,982,562 | $ 3,849,675 |
Other Agricultural Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 1,687,884 | 2,120,484 |
Cost of revenue and related business and sales tax | 3,364,744 | 6,334,964 |
Gross profit (loss) | $ (1,676,860) | $ (4,214,480) |
Gross loss percentage | (99.30%) | (198.80%) |
Total assets | $ 46,488,334 | $ 28,531,029 |
Freight Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 454,627 | 785,630 |
Cost of revenue and related business and sales tax | 334,170 | 722,628 |
Gross profit (loss) | $ 120,457 | $ 63,002 |
Gross loss percentage | 26.50% | 8% |
Herbal Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue, discontinued operation | $ 0 | $ 8,085,527 |
Cost of revenue and related business and sales tax, discontinued operation | 0 | 7,099,353 |
Gross profit (loss), discontinued operation | $ 0 | $ 986,174 |
Gross loss percentage, discontinued operation | (0.00%) | 12.20% |
Total assets | $ 24,702,773 | |
Freight Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,355,121 | $ 4,235,122 |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 12 Months Ended |
Jun. 30, 2022 Integer | |
Segment Reporting [Abstract] | |
Operating segments | 4 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash | $ 12,681,483 | |
Accounts receivables | 3,473,057 | |
Inventories, net | 281,245 | |
Other current assets | 2,523,609 | |
Total current assets of discontinued operation | 19,659,742 | |
Current liabilities: | ||
Taxes payable | 1,743,673 | |
Total liabilities of discontinued operation | 4,866,934 | |
Discontinued Operations [Member] | ||
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 | |
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 ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUE | $ 2,186,460 | $ 11,107,231 |
Total cost of revenue | 3,797,123 | 14,357,208 |
GROSS PROFIT | (1,610,663) | (3,249,977) |
PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (43,701) | |
LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS | (2,433,395) | |
NET LOSS FROM DISCONTINUED OPERATIONS | (2,433,395) | (10,616,988) |
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (2,433,395) | (10,038,088) |
Discontinued Operations [Member] | ||
REVENUE | 8,085,527 | |
Total cost of revenue | 7,099,353 | |
GROSS PROFIT | 986,174 | |
General and administrative expenses | 5,456,786 | |
Selling expenses | 74,207 | |
Total operating expenses | 5,530,993 | |
LOSS FROM OPERATIONS | (4,544,819) | |
Loss from equity method investments | (3,784,000) | |
Other expenses, net | (2,171,150) | |
Interest expense, net | (73,318) | |
Total other expense | (6,028,468) | |
LOSS BEFORE PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (10,573,287) | |
PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | 43,701 | |
NET LOSS FROM DISCONTINUED OPERATIONS FROM ANKANG GROUP | (10,616,988) | |
LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS | (2,433,395) | |
NET LOSS FROM DISCONTINUED OPERATIONS | (2,433,395) | (10,616,988) |
Net loss attributable to non-controlling interest | (578,900) | |
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (2,433,395) | (10,038,088) |
Discontinued Operations [Member] | Cost Of Product And Service [Member] | ||
Total cost of revenue | 7,069,026 | |
Discontinued Operations [Member] | Business And Sales Related Tax [Member] | ||
Total cost of revenue | $ 30,327 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) | Jun. 08, 2021 |
Mr. Jiping Chen [Member] | Ankang Longevity [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Ownership percentage | 68.70% |
Ms. Xiaoyan Chen [Member] | Ankang Longevity [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Ownership percentage | 31.30% |
Mr. Baolin Li [Member] | Guangyuan [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Ownership percentage | 90% |
Ms. Yufeng Zhang [Member] | Guangyuan [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Ownership percentage | 10% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Aug. 11, 2022 | Jul. 21, 2022 | Dec. 10, 2020 | Sep. 05, 2019 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | |||||||
Stock issuance, shares | 604,900 | 310,977 | |||||
Gross proceeds | $ 1,643,087 | $ 9,681,171 | $ 5,206,423 | ||||
Subsequent Event [Member] | Securites Purchase Agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Sale of stock, shares | 1,921,683 | ||||||
Share price | $ 0.915 | ||||||
Gross proceeds | $ 1,758,340 | ||||||
Remaining balance | $ 1,000,000 | ||||||
Subsequent Event [Member] | 2022 Equity Investment Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock issuance, shares | 1,500,000 | ||||||
Subsequent Event [Member] | 2022 Equity Investment Plan [Member] | Board Of Directors [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Issued for services | 86,000 |