Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 28, 2023 | Dec. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
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 | RM 3D-1603 New World Center Apartment | ||
Entity Address, Address Line Two | Chong Wen Men Wai Blvd | ||
Entity Address, City or Town | Beijing | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 100022 | ||
City Area Code | (+86) | ||
Local Phone Number | 10-68130220 | ||
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 | $ 46,782,541 | ||
Entity Common Stock, Shares Outstanding | 43,840,642 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 6783 | ||
Auditor Name | AssentSure PAC | ||
Auditor Location | Singapore |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 625,966 | $ 938,012 |
Accounts receivable, net | 34,586 | |
Inventories, net | 324,406 | |
Advances to suppliers, net | 2,697 | |
Other current assets, net | 2,827,042 | 15,810,941 |
Current assets held for discontinued operations | 37,109,046 | 42,986,472 |
TOTAL CURRENT ASSETS | 40,923,743 | 59,735,425 |
Property and equipment, net | 1,213,116 | 1,652 |
Investment in unconsolidated entity | 617,446 | |
Intangible assets, net | 12,049,473 | |
Goodwill | 6,574,743 | |
Operating lease right-of-use assets | 132,366 | |
Non-current assets held for discontinued operations | 2,575,698 | 3,471,494 |
TOTAL ASSETS | 63,469,139 | 63,826,017 |
CURRENT LIABILITIES: | ||
Short-term loans | 1,240,431 | |
Accounts payable | 191,148 | |
Advances from customers | 89,490 | |
Other payables and accrued expenses | 669,147 | 5,162,718 |
Operating lease liabilities - current | 86,978 | |
Convertible note payable | 15,126,198 | 14,416,956 |
Taxes payable | 500,869 | 299,022 |
Current liabilities held for discontinued operations | 5,393,844 | 9,065,525 |
TOTAL CURRENT LIABILITIES | 23,346,151 | 29,040,302 |
Income tax payable - noncurrent portion | 335,145 | 446,860 |
Operating lease liabilities - non-current | 44,469 | |
Deferred tax liability | 1,416,592 | |
Other long-term payable | 68,913 | |
Non-current liabilities held for discontinued operations | 1,404,823 | 1,025,967 |
TOTAL LIABILITIES | 26,616,093 | 30,513,129 |
Commitments and contingencies | ||
EQUITY: | ||
Common stock; par value $0.001, 100,000,000 shares authorized; 26,393,381 and 10,983,863 shares issued and outstanding at June 30, 2023 and 2022, respectively | 26,393 | 10,984 |
Additional paid-in capital | 68,847,563 | 52,998,924 |
Subscription receivable | (3,782,362) | (3,024,000) |
Statutory reserve | 4,198,107 | 4,198,107 |
Accumulated deficit | (31,735,422) | (18,372,023) |
Accumulated other comprehensive loss | (4,992,381) | (2,100,756) |
Total Stockholders’ equity of Shineco, Inc. | 32,561,898 | 33,711,236 |
Non-controlling interest | 4,291,148 | (398,348) |
TOTAL EQUITY | 36,853,046 | 33,312,888 |
TOTAL LIABILITIES AND EQUITY | 63,469,139 | 63,826,017 |
Related Party [Member] | ||
CURRENT LIABILITIES: | ||
Due to related parties | $ 48,046 | $ 96,081 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
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 | 26,393,381 | 10,983,863 |
Common stock, shares outstanding | 26,393,381 | 10,983,863 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
REVENUE | $ 550,476 | |
COST OF REVENUE | ||
Cost of product and services | 421,273 | |
Business and sales related tax | 3,018 | |
Total cost of revenue | 424,291 | |
GROSS PROFIT | 126,185 | |
OPERATING EXPENSES | ||
General and administrative expenses | 8,610,592 | 6,199,522 |
Selling expenses | 137,387 | |
Research and development expenses | 135,849 | |
Total operating expenses | 8,883,828 | 6,199,522 |
LOSS FROM OPERATIONS | (8,757,643) | (6,199,522) |
OTHER INCOME (EXPENSE) | ||
Impairment loss on an unconsolidated entity | (596,570) | |
Loss from equity method investments | (20,876) | (132,554) |
Other income, net | 181,471 | |
Amortization of debt issuance and other costs | (803,355) | (1,379,777) |
Interest income (expenses), net | (908,759) | 118,795 |
Total other expenses | (2,148,089) | (1,393,536) |
LOSS BEFORE BENEFIT FOR INCOME TAXES FROM CONTINUING OPERATIONS | (10,905,732) | (7,593,058) |
BENEFIT FOR INCOME TAXES | (194,564) | |
NET LOSS FROM CONTINUING OPERATIONS | (10,711,168) | (7,593,058) |
DISCONTINUED OPERATIONS: | ||
Loss from discontinued operations, net of taxes | (3,244,863) | (17,040,686) |
Loss on disposal of discontinued operations | (2,433,395) | |
Net loss from discontinued operations | (3,244,863) | (19,474,081) |
NET LOSS | (13,956,031) | (27,067,139) |
Net loss attributable to non-controlling interest | (592,632) | (34,045) |
NET LOSS ATTRIBUTABLE TO SHINECO, INC. | (13,363,399) | (27,033,094) |
COMPREHENSIVE LOSS | ||
Net loss | (13,956,031) | (27,067,139) |
Other comprehensive loss: foreign currency translation loss | (2,911,283) | (1,332,936) |
Total comprehensive loss | (16,867,314) | (28,400,075) |
Less: comprehensive income (loss) attributable to non-controlling interest | (612,290) | 1,970 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO SHINECO, INC. | $ (16,255,024) | $ (28,402,045) |
Weighted average number of shares - basic | 18,634,212 | 9,458,077 |
Weighted average number of shares - diluted | 18,634,212 | 9,458,077 |
Net loss per common share - basic | $ (0.71) | $ (2.86) |
Net loss per common share - diluted | (0.71) | (2.86) |
Loss per common share | ||
Loss per common share continuing operations - basic | (0.54) | (0.80) |
Loss per common share continuing operations - diluted | (0.54) | (0.80) |
Loss per common share discontinuing operations - basic | (0.17) | (2.06) |
Loss per common share discontinuing operations - diluted | $ (0.17) | $ (2.06) |
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, 2021 | $ 7,881 | $ (8,535,203) | $ 41,105,806 | $ 4,198,107 | $ 8,661,071 | $ (731,805) | $ 672,349 | $ 45,378,206 |
Beginning balance, shares at Jun. 30, 2021 | 7,881,482 | |||||||
Stock issuance | $ 1,265 | 5,511,203 | 4,168,702 | 9,681,170 | ||||
Stock issuance, shares | 1,265,226 | |||||||
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 | 1,837,155 | |||||||
Beneficial conversion feature associated with convertible notes | 361,252 | 361,252 | ||||||
Disposal of Ankang | (1,072,667) | (1,072,667) | ||||||
Net loss from continuing operations for the year | (7,593,058) | (7,593,058) | ||||||
Net loss from discontinued operation for the year | (19,440,036) | (34,045) | (19,474,081) | |||||
Foreign currency translation gain (loss) | (1,368,951) | 36,015 | (1,332,936) | |||||
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 | 10,983,863 | |||||||
Stock issuance | $ 12,673 | (108,362) | 13,036,695 | 12,941,006 | ||||
Stock issuance, shares | 12,673,353 | |||||||
Issuance of common shares for convertible notes redemption | $ 1,236 | 1,026,401 | 1,027,637 | |||||
Issuance of common shares for convertible notes redemption, shares | 1,236,165 | |||||||
Net loss from continuing operations for the year | (10,126,904) | (584,264) | (10,711,168) | |||||
Net loss from discontinued operation for the year | (3,236,495) | (8,368) | (3,244,863) | |||||
Foreign currency translation gain (loss) | (2,911,283) | |||||||
Acquisition of Biowin | 5,301,786 | 5,301,786 | ||||||
Common stock issued for management and employees | $ 1,490 | (650,000) | 1,755,553 | 1,107,043 | ||||
Common stock issued for management and employees, shares | 1,490,000 | |||||||
Common stock issued for services | $ 10 | 29,990 | 30,000 | |||||
Common stock issued for services , shares | 10,000 | |||||||
Foreign currency translation loss | (2,891,625) | (19,658) | (2,911,283) | |||||
Ending balance, value at Jun. 30, 2023 | $ 26,393 | $ (3,782,362) | $ 68,847,563 | $ 4,198,107 | $ (31,735,422) | $ (4,992,381) | $ 4,291,148 | $ 36,853,046 |
Ending balance, shares at Jun. 30, 2023 | 26,393,381 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (13,956,031) | $ (27,067,139) |
Net loss from discontinued operations, net of tax | (3,244,863) | (19,474,081) |
Net loss from continuing operations | (10,711,168) | (7,593,058) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 663,159 | 101 |
Loss from disposal of property and equipment | 166 | |
Provision for doubtful accounts | 2,871,714 | 1,448,513 |
Reversal of inventory reserve | (166,718) | |
Deferred tax benefit | (194,564) | |
Loss (gain) from equity method investments | 20,876 | 132,554 |
Amortization of right of use assets | 34,340 | |
Impairment loss on an unconsolidated entity | 596,570 | |
Impairment loss on property and equipment | 93,353 | |
Common stock issued for management and employees | 1,107,044 | |
Common stock issued for services | 30,000 | |
Amortization of debt issuance and other costs | 803,355 | 1,379,777 |
Accrued interest expense for convertible notes | 933,524 | 830,401 |
Accrued interest income from third parties | (119,978) | (592,401) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 186,647 | |
Advances to suppliers | 67,696 | |
Inventories | 474,096 | |
Other current assets | (1,109,500) | (2,109,444) |
Accounts payable | (147,779) | |
Advances from customers | (310,867) | |
Other payables and accrued expenses | 316,254 | 2,489,259 |
Other long-term payable | 71,916 | |
Operating lease liabilities | (91,873) | |
Taxes payable | 60,393 | 1,158 |
Net cash used in operating activities from continuing operations | (4,521,344) | (4,013,140) |
Net cash used in operating activities from discontinued operations | (869,250) | (1,699,422) |
Net cash used in operating activities | (5,390,594) | (5,712,562) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (18,846) | (1,815) |
Payment made for loans to third parties | (14,434,206) | |
Repayments of loans to third parties | 10,915,129 | |
Investment in unconsolidated entity | (750,000) | |
Payment made for business acquisition | (9,000,000) | |
Acquisition of subsidiaries, net of cash | 621,979 | |
Prepayment for business acquisition | (2,000,000) | |
Net cash provided by (used in) investing activities from continuing operations | 518,262 | (15,186,021) |
Net cash provided by (used in) investing activities from discontinued operations | 515,212 | (20,830,172) |
Net cash provided by (used in) investing activities | 1,033,474 | (36,016,193) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 1,294,487 | |
Repayment of short-term bank loans | (1,582,151) | |
Proceeds from issuance of common stock | 4,844,007 | 9,681,171 |
Proceeds from (repayments of) advances from related parties | (82,611) | 18,061 |
Proceeds from issuance of convertible notes | 17,000,000 | |
Net cash provided by financing activities from continuing operations | 4,473,732 | 26,699,232 |
Net cash provided by financing activities from discontinued operations | 7,636 | 1,713,003 |
Net cash provided by financing activities | 4,481,368 | 28,412,235 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (1,122,720) | (542,643) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (998,472) | (13,859,163) |
CASH AND CASH EQUIVALENTS - Beginning of the year | 15,165,231 | 29,024,394 |
CASH AND CASH EQUIVALENTS - End of the year | 14,166,759 | 15,165,231 |
Less: cash and cash equivalents of discontinued operations - Ended of the year | 13,540,793 | 14,227,219 |
Cash and cash equivalents of continuing operations - Ended of the year | 625,966 | 938,012 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for income taxes | ||
Cash paid for interest | 31,059 | |
SUPPLEMENTAL NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common shares for convertible notes redemption | 1,027,637 | 7,365,002 |
Issuance of common shares for proceeds received in prior year | 5,000,000 | |
Issuance of common shares for business acquisition | 3,097,000 | |
Right-of-use assets obtained in exchange for operating lease obligations | 2,337,257 | 1,936,837 |
Reduction of right-of-use assets and operating lease obligations due to early termination of lease agreement | 972,168 | 1,048,857 |
Repayments of loans to third parties offset by other payables | $ 2,750,356 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2023 | |
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 On September 30, 2017, Tenet-Jove established Xinjiang Shineco Taihe Agriculture Technology Ltd. (“Xinjiang Taihe”) with registered capital of RMB 10.0 1.5 10.0 1.5 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 1.5 On July 23, 2020, Shanghai Jiaying International Trade Co., Ltd. (“Shanghai Jiaying”) was established with registered capital of RMB 200 29.9 90 10 On January 7, 2021, Inner Mongolia Shineco Zhonghemp Biotechnology Co., Ltd. (“SZB”) was established with registered capital of RMB 50 7.5 55 45 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 May 16, 2023, Shinkang Technology (Jiangsu) Co., Ltd (“Shinkang”) was established with registered capital of RMB 10.0 1.4 51 On May 16, 2023, Fuzhou Meida Health Management Co., Ltd (“Fuzhou Meida”), formerly known as Pangke Planet (Fuzhou) Health Management Co., Ltd, was established with registered capital of RMB 1.0 0.1 51 On May 23, 2023, Life Science established Beijing Shineco Chongshi Information Consulting Co., Ltd (“Chongshi”) as a wholly owned entity with registered capital of RMB 0.1 0.01 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 the Shareholders of Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”) in exchange for the control of 100 On December 30, 2022, Life Science closed the acquisition of 51 9 3,260,000 0.001 51 51 On May 29, 2023, Life Science HK entered into a stock purchase agreement (the “Agreement”) with Dream Partner Limited, a BVI corporation (“Dream Partner”), Chongqing Wintus Group, a corporation incorporated under the laws of mainland China (“Wintus”) and certain shareholders of Dream Partner (the “Sellers”), pursuant to which Shineco Life shall acquire 71.42 (a) paid the Sellers 2,000,000 10,000,000 100 The Company, Its subsidiaries, its VIEs, and its VIEs’ subsidiaries currently 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 Guangyuan 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) Biowin is specializing in development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid Diagnostic and Other Products”). These different business activities and products can potentially be integrated and benefit from one another. Due to the Acquisition mentioned above, the Company’s Luobuma, Agricultural Products and Freight Services business segments, that are operated by Tenet-Jove and its subsidiaries, Guangyuan and Zhisheng VIEs which Tenet-Jove is the primary beneficiary (the “Tenet-Jove Disposal Group”), are classified as discontinued operations on the Company consolidated financial statements. |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 12 Months Ended |
Jun. 30, 2023 | |
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$ 13,956,031 27,067,139 5,390,594 5,712,562 Despite those negative financial trends, as of June 30, 2023, the Company had positive working capital due to the following measurements the management has taken to enhance the Company’s liquidity: 1) 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 1.65 2) On January 12, 2023, the Board of the Company approved the sales of 722,222 650,000 3) The Company financed from commercial banks. As of June 30, 2023, the Company had US$ 1.2 4) As of June 30, 2023, the Company had cash and cash equivalents in the amount of approximately US$ 0.6 Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity needs 12 months from the date of this filing. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2023 | |
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. There are no consolidated assets of the VIEs and the VIEs’ subsidiaries that are collateral for the obligations of the VIEs and the VIEs’ subsidiaries and can only be used to settle the obligations of the VIEs and the VIEs’ subsidiaries. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors or beneficial interest holders of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs in normal course of business. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs and the VIEs’ subsidiaries. However, if the VIEs and the VIEs’ subsidiaries ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIEs and the VIEs’ subsidiaries through loans to the shareholder of the VIEs and the VIEs’ subsidiaries or entrustment loans to the VIEs and the VIEs’ subsidiaries. The total carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information and the carrying amount of the VIEs and their subsidiaries’ consolidated income information held for discontinued operations were as follows: SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION June 30, 2023 June 30, 2022 Current assets $ 32,532,618 $ 34,723,255 Non-current assets 2,493,883 1,212,739 Total assets 35,026,501 35,935,994 Total liabilities (5,952,438 ) (5,719,289 ) Net assets $ 29,074,063 $ 30,216,705 2023 2022 For the years ended June 30, 2023 2022 Net sales $ 2,448,508 $ 2,142,511 Gross loss $ (594,290 ) $ (1,556,403 ) Income (loss) from operations $ 482,105 $ (11,476,699 ) Net income (loss) attributable to Shineco, Inc. $ 515,789 $ (14,023,582 ) 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 loss 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 VIEs, which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain the economic benefits from the VIEs. In addition, should these agreements be challenged or litigated, they would also be subject to the laws and courts of the PRC legal system, which could make enforcing the Company’s rights difficult. Use of Estimates The preparation of the consolidated financial statements in conformity with 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 The Company generates its revenues primarily through sales of Luobuma products, agricultural products and rapid diagnostic and other products, as well as providing logistic services and other processing services to external customers in accordance with ASC 606. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. 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 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. More specifically, revenue related to the Company’s products and services is generally recognized as follows: Sales of products: Revenue from the provision of services 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, 2023 and 2022, 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, 2023 and 2022, the allowance for doubtful accounts from the continuing operations was US$ 946,892 nil 7,206,958 7,317,236 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. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell 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, 2023 and 2022, the inventory reserve from the continuing operations was US$ 56,655 nil 1,106,649 1,249,543 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, 2023 and 2022, the allowance for uncollectible advances from the continuing operations was US$ 3,502 nil 10,163,946 13,544,627 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 follows FASB ASC No. 842, Leases Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease ROU assets are reviewed for impairment annually. For the years ended June 30, 2023 and 2022, the impairment for its ROU assets from the continuing operations were both US$ nil nil 2,268,344 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 3 10 Motor vehicles 5 10 Office equipment 3 10 Farmland leasehold improvements 12 18 Leasehold improvement Lesser of useful life and lease term 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, 2023 and 2022, the impairment for its long-lived assets from the continuing operations were both US$ 689,923 nil nil 4,315,888 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, 2023 and 2022. 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, 2023, 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, 2023, the tax years ended December 31, 2018 through December 31, 2022 for the Company’s PRC subsidiaries from the continuing operations and the discontinued operations 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% to 21%. As the Company has a June 30 fiscal year end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28 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”). All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars,” “USD,” or “US$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss. The balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at 1 0.1378 1 0.1493 1 0.1438 1 0.1549 Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option Research and Development Expenses Research and development costs relating to the development of new processes and significant improvements and refinements to existing processes are expensed when incurred in accordance with the FASB ASC 730, “Research and Development.” The research and development costs primarily comprise employee costs, consultant fees, materials and testing costs, and depreciation to property and equipment used in the research and development activities and other miscellaneous expenses. For the years ended June 30, 2023 and 2022, total research and development expense from continuing operations were approximately US$ 135,849 nil Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive 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 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 50 Loss per Share The Company computes loss per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net loss divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., outstanding convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the years ended June 30, 2023 and 2022. The following table presents a reconciliation of basic and diluted loss per share for the years ended June 30, 2023 and 2022: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE 2023 2022 For the years ended June 30, 2023 2022 Net loss from continuing operations attributable to Shineco $ (10,126,904 ) $ (7,593,058 ) Net loss from discontinued operations attributable to Shineco (3,236,495 ) (19,440,036 ) Net loss attributable to Shineco $ (13,363,399 ) $ (27,033,094 ) Weighted average shares outstanding - basic and diluted 18,634,212 9,458,077 Net loss from continuing operations per share of common share Basic and diluted $ (0.54 ) $ (0.80 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.17 ) $ (2.06 ) Net loss per share of common share Basic and diluted $ (0.71 ) $ (2.86 ) Reclassifications Certain prior year balances were reclassified to conform to the current year’s presentation with consideration of reflecting the Company’s Tenet-Jove Disposal 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Targeted Transition Relief. In November 2021, the FASB issued ASU 2021-10, Disclosures by Entities about Government Assistance (Topic 832) 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, 2023 | |
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, 2023 June 30, 2022 Accounts receivable $ 10,467,260 $ 9,138,790 Less: allowance for doubtful accounts (8,153,850 ) (7,317,236 ) Accounts receivable, net 2,313,410 1,821,554 Less: accounts receivable, net held for discontinued operations (2,278,824 ) (1,821,554 ) Accounts receivable, net held for continuing operations $ 34,586 $ - Movement of allowance for doubtful accounts is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2023 June 30, 2022 Beginning balance $ 7,317,236 $ 9,635,506 Acquisition of Biowin 451,863 - Charge to expense 1,050,753 1,632,670 Less: disposal of VIE - (3,677,073 ) Less: write-off (62,125 ) Foreign currency translation adjustments (603,877 ) (273,867 ) Ending balance $ 8,153,850 $ 7,317,236 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 5 – INVENTORIES, NET The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET June 30, 2023 June 30, 2022 Raw materials $ 315,129 $ 67,467 Work-in-process 16,713,913 18,709,325 Finished goods 1,179,243 1,191,275 Less: inventory reserve (1,163,304 ) (1,249,543 ) Total inventories, net 17,044,981 18,718,524 Less: inventories, net, held for discontinued operations (16,720,575 ) (18,718,524 ) Inventories, net, held for continuing operations $ 324,406 $ - 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 held for discontinued operations amounted to US$ 803,186 1,574,241 |
ADVANCES TO SUPPLIERS, NET
ADVANCES TO SUPPLIERS, NET | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Advances to suppliers $ 10,170,145 $ 13,548,178 Less: allowance for doubtful accounts (10,167,448 ) (13,544,627 ) Advance to suppliers, net 2,697 3,551 Less: advance to supplier, net, held for discontinued operations - (3,551 ) Advance to supplier, net, held for continuing operations $ 2,697 $ - Advances to suppliers consist of mainly payments to suppliers for yew trees, as well as raw materials or products 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, 2023 June 30, 2022 Beginning balance $ 13,544,627 $ 10,885,264 Acquisition of Biowin 56,831 - Charge to (reversal of) expense (2,349,716 ) 4,938,064 Less: disposal of VIE - (1,774,400 ) Less: write-off (147,172 ) Foreign currency translation adjustments (937,122 ) (504,301 ) Ending balance $ 10,167,448 $ 13,544,627 |
OTHER CURRENT ASSETS, NET
OTHER CURRENT ASSETS, NET | 12 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS, NET | NOTE 7 – OTHER CURRENT ASSETS, NET Other current assets, net consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS June 30, 2023 June 30, 2022 Loans to third parties (1) $ 1,481,101 $ 16,345,717 Other receivables (2) 2,629,733 3,246,293 Prepayment for business acquisition (3) 2,000,000 - Short-term deposit 37,015 164,261 Prepaid expenses 1,629 20,872 Subtotal 6,149,478 19,777,143 Less: allowance for doubtful accounts (3,287,793 ) (2,545,565 ) Total other current assets, net 2,861,685 17,231,578 Less: other current assets, net, held for discontinued operations (34,643 ) (1,420,637 ) Other current assets, net, held for continuing operations $ 2,827,042 $ 15,810,941 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. Due to the impact from COVID-19, the Company did not receive repayments of loans to third parties according to the loan agreements, hence, the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of June 30, 2023 and 2022, the allowance for doubtful accounts was US$ 1,481,101 384,915 2) Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses. 3) The amount pertains to prepaid purchase consideration made for acquisition of Wintus. Movement of allowance for doubtful accounts is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2023 June 30, 2022 Beginning balance $ 2,545,565 $ 995,760 Acquisition of Biowin 14,504 - Charge to expense 1,867,474 2,117,316 Less: disposal of VIE - (326,491 ) Less: write-off (964,509 ) - Foreign currency translation adjustments (175,241 ) (241,020 ) Ending balance $ 3,287,793 $ 2,545,565 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Buildings $ 1,064,656 $ 1,808,172 Machinery and equipment 1,132,064 27,351 Motor vehicles 195,183 139,077 Office equipment 142,288 178,271 Leasehold improvement - 186,314 Farmland leasehold improvements 2,898,328 3,139,729 Subtotal 5,432,519 5,478,914 Less: accumulated depreciation and amortization (3,437,327 ) (3,388,640 ) Less: impairment for property and equipment (749,299 ) (714,802 ) Total property and equipment, net 1,245,893 1,375,472 Less: property and equipment, net, held for discontinued operations (32,777 ) (1,373,820 ) Property and equipment, net held for continuing operations $ 1,213,116 $ 1,652 Depreciation and amortization expense charged to the continuing operations was US$ 28,976 101 87,129 386,871 During the year ended June 30, 2023 and 2022, the management performed evaluation on the impairment of property and equipment. Due to the continuous impact from the COVID-19 pandemic, the Company’s Zhisheng VIEs, have not been able to grow and cultivate green agricultural produce on the leased farmlands, and based on the management estimation, these farmlands are unlikely to generate enough future profit and cashflow, hence, the Company decided to record full impairment of such leased farmland (Note 11). Therefore, farmland leasehold improvements relating to these farmlands were also fully impaired as of June 30, 2022. Impairment loss on property and equipment from the continuing operations was US$ 93,353 nil nil 741,644 Farmland leasehold improvements, net consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS June 30, 2023 June 30, 2022 Blueberry farmland leasehold improvements $ 2,226,624 $ 2,412,079 Yew tree planting base reconstruction 249,464 270,242 Greenhouse renovation 422,240 457,408 Subtotal 2,898,328 3,139,729 Less: accumulated amortization (2,238,484 ) (2,424,927 ) Less: impairment for farmland leasehold improvements (659,844 ) (714,802 ) Total farmland leasehold improvements, net $ - $ - |
DISTRIBUTION RIGHTS
DISTRIBUTION RIGHTS | 12 Months Ended |
Jun. 30, 2023 | |
Distribution Rights | |
DISTRIBUTION RIGHTS | NOTE 9 - DISTRIBUTION RIGHTS The Company acquired distribution rights to distribute branded products of Daiso 100-yen shops through the acquisition of Tianjin Tajite. As this distribution right is difficult to acquire and will contribute significant revenue to Tianjin Tajite, such distribution rights were identified and valued as an intangible asset in the acquisition of Tianjin Tajite. The distribution rights, which have no expiration date, have been determined to have an indefinite life. Since the distribution rights have an indefinite life, the Company will evaluate them for impairment at least annually or earlier if determined necessary. During the 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, the management fully recorded an impairment loss on distribution rights of Tianjin Tajite held for discontinued operations. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | NOTE 10 - INVESTMENTS 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 0.70 32 0.70 20,876 132,554 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 investment in unconsolidated entities consists of the following: SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES June 30, 2023 June 30, 2022 Gaojing Private Fund $ - $ 617,446 Total investment - 617,446 Less: investment, held for discontinued operations - - Investment, held for continuing operations $ - $ 617,446 Summarized financial information of unconsolidated entities from continuing operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS June 30, 2023 June 30, 2022 Current assets $ - $ 558,962 Current liabilities $ - $ 1,478 2023 2022 For the years ended June 30, 2023 2022 Net sales $ 29,986 $ - Gross loss - (94 ) Loss from operations (186,640 ) (403,069 ) Net loss (188,374 ) (414,231 ) |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2023 | |
Leases | |
LEASES | NOTE 11 - LEASES The Company leases offices space and warehouse under non-cancelable operating leases, with terms ranging from one to seven and a half 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 held for continuing operations recorded on the balance sheets. SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES June 30, 2023 June 30, 2022 ROU lease assets $ 132,366 $ - Operating lease liabilities – current 86,978 - Operating lease liabilities – non-current 44,469 - Total operating lease liabilities $ 131,447 $ - The weighted average remaining lease terms and discount rates for all of operating leases held for continuing operations were as follows as of June 30, 2023 and 2022: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES June 30, 2023 June 30, 2022 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.92 - Weighted average discount rate 4.61 % - The table below presents the operating lease related assets and liabilities held for discontinued operations recorded on the balance sheets. June 30, 2023 June 30, 2022 ROU lease assets $ 2,538,037 $ 2,088,149 Operating lease liabilities – current 551,502 959,909 Operating lease liabilities – non-current 1,404,823 1,025,967 Total operating lease liabilities $ 1,956,325 $ 1,985,876 The weighted average remaining lease terms and discount rates for all of operating leases held for discontinued operations were as follows as of June 30, 2023 and 2022: June 30, 2023 June 30, 2022 Remaining lease term and discount rate: Weighted average remaining lease term (years) 5.85 6.88 Weighted average discount rate 4.36 % 5.30 Rent expenses totaled US$ 169,542 344,624 521,711 740,125 During the year ended June 30, 2022, the management performed evaluation on the impairment of ROU lease assets, and impairment loss for the ROU lease assets held for discontinued operations of US$ 2,268,344 The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2023: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Continuing operations Discontinued operations 2024 $ 90,965 $ 633,010 2025 45,482 608,157 2026 - 318,248 2027 - 318,248 2028 - 20,674 Thereafter - 399,694 Total lease payments 136,447 2,298,031 Less: imputed interest (5,000 ) (341,706 ) Present value of lease liabilities $ 131,447 $ 1,956,325 |
ACQUISITION
ACQUISITION | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | NOTE 12 - 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. On May 5, 2019, two minority shareholders of Tianjin Tajite transferred 26.4 77.4 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, the management fully recorded an impairment loss on distribution rights of Tianjin Tajite (Note 9). 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 the Shareholders of Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”) in exchange for the control of 100 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 liabilities (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 the consolidated financial statements since the Acquisition Date. US$ nil 122,575 44,150 904,922 Acquisition of Changzhou Biowin Pharmaceutical Co., Ltd. (“Biowin”) On October 21, 2022, the Company, through its wholly-owned subsidiary, Life Science, entered into a stock purchase agreement with the Seller and Biowin, pursuant to which Life Science would acquire 51 51 9.0 3,260,000 0.001 12,097,000 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 excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill which amounted to US$ 6,574,743 The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES Accounts receivable, net $ 807,771 Inventories, net 784,336 Other current assets, net 49,979 Property and equipment, net 138,252 Intangible assets 12,683,656 Operating lease right-of-use assets 173,831 Goodwill 6,574,743 Deferred tax assets, net 346,523 Short-term bank loans (1,594,596 ) Accounts payable (349,989 ) Advances from customers (407,437 ) Other current liabilities (446,729 ) Operating lease liabilities - non-current (45,730 ) Deferred tax liabilities (1,937,804 ) Non-controlling interest (5,301,785 ) Total purchase price for acquisition, net of US$ 621,979 $ 11,475,021 The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of June 30, 2023 is as follows: SCHEDULE OF INTANGIBLE ASSETS Average Useful Life (in Years) Intangible assets $ 12,683,655 10 Less: accumulated amortization (634,183 ) Total intangible assets, net 12,049,473 Less: intangible assets, net held for discontinued operations - Total intangible assets, net held for continuing operations $ 12,049,473 The amortization expense of intangible assets was US$ 634,183 from the continuing operations for the year ended June 30 2023. 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$ 130,887 700,000 The Company has included the operating results of Biowin in continuing operations in its consolidated financial statements since the Acquisition Date. US$ 550,476 1,181,289 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 - RELATED PARTY TRANSACTIONS Due from Related Parties, Net The Company has made temporary advances to certain stockholders and senior management 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. As of June 30, 2023 and 2022, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES June 30, 2023 June 30, 2022 Zhao Min $ - $ 1,410 Shanghai Gaojing Private Fund Management (a.) 396,938 429,998 Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (“Zhongjian Yijia”) (b.) 1,441,485 1,719,568 Zhongjian (Qingdao) International Logistics Development Co., Ltd. (“Zhongjian International”) (c.) 4,534,211 4,644,011 Subtotal 6,372,634 6,794,987 Less: allowance for doubtful accounts (1,838,423 ) - Total due from related parties, net 4,534,211 6,794,987 Less: due from related parties, held for discontinued operations (4,534,211 ) (6,794,987 ) Due from related parties, held for continuing operations $ - $ - a. The Company owns 32 impairment on this investment and fully recorded an allowance for doubtful accounts for the amount due from this company as of June 30, 2023. b. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia to with an amount of US$ 1,642,355 11.0 6.0 77,213 206,738 1.5 689,128 5.0 206,738 1.5 1,441,485 10.5 Interest income was US$ 63,519 80,113 c. On October 28, 2021, the Company entered into a loan agreement with Zhongjian International to with an amount of US$ 4,334,401 29.9 6.0 4,534,211 4,644,011 Interest income was US$ 258,034 186,543 Due to Related Parties As of June 30, 2023 and 2022, the Company had related party payables held for continuing operations of US$ 48,046 96,081 2,431,191 2,702,719 SCHEDULE OF DUE TO RELATED PARTIES June 30, 2023 June 30, 2022 Wu Yang $ - $ 95,630 Wang Sai - 96,081 Li Baolin 1,930 - Zhao Min (a.) 409,345 562,528 Zhou Shunfang (b.) 2,019,916 2,044,561 Huang Shanchun 28,651 - Liu Fengming 4,779 - Yan Lixia 742 - Zhan Jiarui 1,761 - Liu Xinqiao 2,113 - Mike Zhao 10,000 - Total due to related parties 2,479,237 2,798,800 Less: due to related parties, held for discontinued operations (2,431,191 ) (2,702,719 ) Due to related parties, held for continuing operations $ 48,046 $ 96,081 a. 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 5.0 27,565 0.2 379,217 b. 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$ 21,766 442,241 Loan guarantee provided by related parties The Company’s related parties provide guarantee for the Company’s short-term bank loans (see Note 14). Loan guarantee provided to a related party On May 29, 2023, the Board of the Company approved that we pledged the real estate property with a net book value of US$ 1,048,710 15,000,000 extend the due date of the principal amount from May 23, 2023 to May 23, 2024 |
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOANS | NOTE 14 - SHORT-TERM BANK LOANS Short-term bank loans consisted of the following: SCHEDULE OF SHORT TERM BANK LOANS Lender June 30, 2023 Maturity Date Int. Rate/Year Jiangnan Rural Commercial Bank- a $ 413,477 2024/3/29 4.80 % Bank of Jiangsu- b 413,477 2024/6/13 4.00 % Bank of China- c 413,477 2024/6/26 3.60 % Total short-term bank loans 1,240,431 Less: short-term loans, held for discontinued operations - Short-term loans, held for continuing operations $ 1,240,431 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by Mr. Liu Fengming, the CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company. b. Guaranteed by Mr. Liu Fengming, the CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company, and Biowin Development, the wholly-owned subsidiary of the Company. c. Guaranteed by Mr. Liu Fengming, the CEO of the Company, and his wife, Mrs. Jie Liang. Interest expenses from discontinued operations were both US$ nil 31,059 nil 4.45 nil |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 15 - CONVERTIBLE NOTES PAYABLE On June 16, 2021, the Company entered into a Securities Purchase Agreement pursuant to which the Company issued an unsecured convertible promissory note with a maturity date of June 17, 2022 (“the Note”) to an institutional accredited investor Streeterville Capital, LLC (“Investor”). The Note has the original principal amount of US$ 3,170,000 and Investor gave consideration of US$ 3.0 million, reflecting original issue discount of US$ 150,000 and Investor’s legal fee of US$ 20,000 . On September 7, 2022, the Company signed an extension amendment (the “First June Note Amendment”) with the Investor to extend the maturity date of this note to June 17, 2023, resulting in an increase of the principal amount to $ 3,500,528.40 . On October 21, 2022, the Company signed a standstill agreement with the Investor, pursuant to which the Investor would not seek to repayment of any portion of the note during the period from October 21, 2022 to January 20, 2023 . On January 18, 2023, the Investor re-started the repayment of the notes. Thereafter, the Company signed a second extension amendment (the “Second June Note Amendment”) dated as June 15, 2023, with the Investor to extend the maturity date to June 17, 2024 , thereby increasing the principal amount to $ 3,929,497.72 . 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-year 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 maturity date of August 23, 2022 (the “Note”) to the same Investor. The Note has an original principal amount of US$ 10,520,000 10.0 500,000 20,000 August 23, 2023 11,053,443.50 October 21, 2022 January 20, 2023 August 23, 2024 11,878,240.57 For the above-mentioned convertible promissory notes issued, interest accrues on the outstanding balance of these notes at 6 The Investor may seek repayment of 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, 2023, the Company received principal in full from the Investor. For the years ended June 30, 2023 and 2022, a total of US$ 803,355 1,379,777 As of June 30, 2023, shares of the Company’s common stock totaling 3,073,320 8,392,639 15,126,198 15,843,643 717,445 |
TAXES
TAXES | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 16 - TAXES (a) Corporate Income Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the location in which each entity is domiciled. Shineco is incorporated in the United States and has no operating activities. Tenet-Jove and the VIEs are governed by the Income Tax Laws of the PRC, and are currently subject to tax at a statutory rate of 25 Biowin is subject to corporate income tax at a reduced rate of 15% starting from December 2019, when it was approved by local government as a High and New Technology Enterprises (“HNTEs”), to December 2022. In December 2022, the Company successfully renewed its HNTE certification with local government and will continue to enjoy the reduced income tax rate of 15% for another three years through December 2025 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 benefit were as follows: SCHEDULE OF INCOME TAX BENEFIT 2023 2022 For the years ended June 30, 2023 2022 Current income tax benefit $ - $ - Deferred income tax benefit (194,564 ) (292,266 ) Total income tax benefit (194,564 ) (292,266 ) Less: income tax expenses, held for discontinued operations - 292,266 Income tax expenses, held for continuing operations $ (194,564 ) $ - ii) The components of the deferred tax liability were as follows: SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES June 30, 2023 June 30, 2022 Deferred tax assets: Allowance for doubtful accounts $ 1,360,693 $ 1,252,245 Inventory reserve 281,237 311,439 Net operating loss carry-forwards 1,223,159 979,682 Total 2,865,089 2,543,366 Valuation allowance (2,471,066 ) (2,543,366 ) Total deferred tax assets 394,023 - Deferred tax liability: Intangible assets (1,810,615 ) - Total deferred tax liability (1,810,615 ) - Deferred tax liability, net (1,416,592 ) - Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ (1,416,592 ) $ - Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE June 30, 2023 June 30, 2022 Beginning balance $ 2,543,366 $ 1,810,023 Acquisition of Biowin 376,085 - Current year addition (reduction) (252,836 ) 798,160 Exchange difference (195,549 ) (64,817 ) Ending balance 2,471,066 2,543,366 Less: valuation allowance, held for discontinued operations (2,396,504 ) (2,543,366 ) Valuation allowance, held for continuing operations $ 74,562 $ - (b) Value-Added Tax The Company is subject to a VAT for selling goods. All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold. For overseas sales, VAT is exempted on the exported goods. 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 (c) Taxes Payable Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE June 30, 2023 June 30, 2022 Income tax payable $ 1,048,188 $ 992,780 Value added tax payable 46,451 34,925 Business tax and other taxes payable 3,834 3,375 Total tax payable 1,098,473 1,031,080 Less: tax payable, held for discontinued operations (262,459 ) (285,198 ) Tax payable, held for continuing operations $ 836,014 $ 745,882 Income tax payable - current portion $ 763,328 $ 584,220 Less: income tax payable - current portion, held for discontinued operations (262,459 ) (285,198 ) Income tax payable - current portion, held for continuing operations $ 500,869 $ 299,022 Income tax payable - noncurrent portion $ 335,145 $ 446,860 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 335,145 $ 446,860 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 17 - STOCKHOLDERS’ EQUITY Initial Public Offering On September 28, 2016, the Company completed its initial public offering of 190,354 40.50 7.7 5.4 Statutory Reserve The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10 50 4,198,107 4,198,107 On July 10, 2020, the Company’s stockholders approved a 1-for-9 0.001 100,000,000 0.001 27,333,428 3,037,048 On April 10, 2021, the Company issued 3,872,194 3.2 7,981,204 3,024,000 On December 6, 2021, the Company entered into a securities purchase agreement with 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 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 5.0 On July 21, 2022, the stockholders of the Company approved the Company’s 2022 Equity Incentive Plan (the “2022 Plan”), pursuant to which 1,500,000 600,000 612,000 1.02 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 1,758,340 108,362 On October 21, 2022, the Company, through its wholly-owned subsidiary, Life Science, entered into a stock purchase agreement with the Seller and Biowin, pursuant to which Life Science would acquire 51 9.0 3,260,000 0.001 On January 12, 2023, the Board of the Company approved the sales of 722,222 650,000 650,000 On January 12, 2023, the Board of the Company approved the issuance of 10,000 30,000 3.0 On May 17, 2023, the Board of Directors of the Company approved the issuance of shares of common stock pursuant to the Company’s 2022 Plan in the aggregate amount of 167,778 90,600 0.54 On June 19, 2023, the Company entered into a certain securities purchase agreement (the “SPA”) with a non-U.S. investor (the “Buyer”), pursuant to which the Company agreed to sell, and the Buyer agreed to purchase an aggregate of up to 1,137,170 1.05 1.2 On June 21, 2023, the Company entered into a certain stock purchase agreement (the “Agreements”) with certain non-U.S. investors (the “Investors”), pursuant to which the Company agreed to sell, and the Investors agreed to purchase, severally and not jointly, an aggregate of up to 4,000,000 0.5 2.0 |
CONCENTRATIONS AND RISKS
CONCENTRATIONS AND RISKS | 12 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 18 - CONCENTRATIONS AND RISKS The Company maintains principally all bank accounts in the PRC. The cash balance held in the PRC bank accounts from the continuing operations was US$ 581,092 111,684 13,540,534 14,226,937 During the years ended June 30, 2023 and 2022, almost 100 100 For the year ended June 30, 2023, one customer accounted for approximately 14 81 94 85 For the year ended June 30, 2022, no sales were generated from the continuing operations, and five customers accounted for approximately 85 71 For the year ended June 30, 2023, four vendors accounted for approximately 77 100 For the year ended June 30, 2022, no purchases were made from the continuing operations, and one vendor accounted for approximately 92 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 - COMMITMENTS AND CONTINGENCIES Legal Contingencies 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 the initial public offering, the Plaintiff incurred losses and hence seek money damages against the Company. Based on the judgment of the first trial, the Company was required to pay the Plaintiff a settlement payment, including the money compensation, interests and other legal fees. In January 2023, the Company entered into a Settlement Agreement and Release (the “Agreement”) with the Plaintiff, pursuant to which the Company paid the Plaintiff a total sum of approximately US$ 0.7 4.8 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 certain restricted shares of the Company’s common 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 brought claims for, among others, breach of contract, breach of the covenant of good faith and fair dealing, and fraud, asserting that the Company made false and materially misleading statements, specifically regarding the sale of such shares to Lei Zhang and Yan Li and the removal of their restrictive legends. Defendants are seeking money damages of at least $9 million, punitive damages of $10 million, plus interest, costs, and fees. 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, which the Company declined to do. On June 13, 2022, the restriction imposed on the shares were lifted. Nominal defendant Transhare Corporation moved to dismiss the defendants’ counterclaim against it for wrongful refusal to remove restrictions pursuant to 6 Del. C. § 8-401, and its motion was fully submitted in April 2022. On September 9, 2022, the Court granted Transhare Corporation’s motion to dismiss defendants’ counterclaim for wrongful refusal to remove restrictions. Defendants have appealed the Court’s September 9, 2022 order dismissing defendants’ counterclaim for wrongful refusal to remove restrictions. On October 3, 2022 the parties submitted a stipulation dismissing defendants’ outstanding counterclaim against Transhare Corporation seeking declaratory judgment. The Company remains engaged in litigation in Shineco, Inc. v. Lei Zhang, et al. 982,500 3,024,000 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 20 - SEGMENT REPORTING ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Group’s internal organizational management structure as well as information about geographical areas, business segments, and major customers in for details on the Group’s business segments. The Company’s chief operating decision maker has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. Based on management’s assessment, the Company has determined that it has four operating segments according to its major products and locations as follows: ● Developing, manufacturing, and distributing of specialized fabrics, textile products, and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as “Bluish Dogbane” or known in Chinese as “Luobuma” (referred to herein as Luobuma), which are reclassified as discontinued operations: 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. ● Planting, processing, and distributing of green and organic agricultural produce as well as growing and cultivating of Chinese Yew trees (“Other agricultural products”), which are reclassified as discontinued operations: 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 Zhihesheng 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 company 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 Guangyuan 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”), which are reclassified as discontinued operations: 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. ● Developing, producing and distributing innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid Diagnostic and Other Products”): The operating company of this segment, Biowin, is specializing in development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases. The operations of this segment are located in Jiangsu Province. Its products are sold not only in China, but also overseas countries such as Germany, Spain, Italy, Thailand, Japan and other countries. The following table presents summarized information by segment for the year ended June 30, 2023: SCHEDULE OF INFORMATION BY SEGMENT For the year ended June 30, 2023 Continuing Operations Discontinued Operations Rapid diagnostic and other Luobuma Other agricultural Freight products products products services Total Segment revenue $ 550,476 $ 43,431 $ 2,022,219 $ 426,289 $ 3,042,415 Cost of revenue and related business and sales tax 424,291 2,638 2,748,167 294,631 3,469,727 Gross profit (loss) 126,185 40,793 (725,948 ) 131,658 (427,312 ) Gross profit (loss) % 22.9 % 93.9 % (35.9 )% 30.9 % (14.0 )% The following table presents summarized information by segment for the year ended June 30, 2022: For the year ended June 30, 2022 Continuing Operations Discontinued Operations Rapid diagnostic and other Luobuma Other agricultural Freight products products products services Total Segment revenue $ - $ 43,949 $ 1,687,884 $ 454,627 $ 2,186,460 Cost of revenue and related business and sales tax - 98,209 3,364,744 334,170 3,797,123 Gross profit (loss) - (54,260 ) (1,676,860 ) 120,457 (1,610,663 ) Gross profit (loss) % - (123.5 )% (99.3 )% 26.5 % (73.7 )% Total assets as of June 30, 2023 and 2022 were as follows: June 30, 2023 June 30, 2022 Luobuma products $ 4,717,588 $ 10,982,562 Other agricultural products 33,408,143 46,488,334 Freight services 4,964,012 6,355,121 Rapid diagnostic and other products 20,379,396 - Total assets 63,469,139 63,826,017 Less: total assets held for discontinued operations (39,684,744 ) (46,457,966 ) Total assets, held for continuing operations $ 23,784,395 $ 17,368,051 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 21 - DISCONTINUED OPERATIONS On June 8, 2021, Tenet-Jove entered into a Restructuring Agreement (the “Restructuring Agreement”) with the following parties: ● Ankang Longevity, a company incorporated under the laws of the People’s Republic of China (the “PRC”); ● Mr. Jiping Chen, who is a minority shareholder of the Company and holds 68.7 31.3 ● Yushe County Guangyuan Forest Development Co., Ltd., a company incorporated under the laws of the PRC (“Guangyuan”); and ● Mr. Baolin Li, who is a minority shareholder of the Company and holds 90 10 Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all of its rights and interests in Ankang Longevity to the Guangyuan Shareholders in exchange for the 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 disposal date of Ankang. On May 29, 2023, Life Science HK entered into a stock purchase agreement (the “Agreement”) with Dream Partner Limited, a BVI corporation (“Dream Partner”), Chongqing Wintus Group, a corporation incorporated under the laws of mainland China (“Wintus”) and certain shareholders of Dream Partner (the “Sellers”), pursuant to which Shineco Life shall acquire 71.42 (a) paid the Sellers an aggregate cash consideration of $ 2,000,000 10,000,000 100 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 non-current 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 Tenet-Jove Disposal Group 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, 2023 and 2022. The results of operations of Ankang Longevity and Tenet-Jove Disposal Group have been reclassified to “net loss from discontinued operations” in the consolidated statements of loss and comprehensive loss for the years ended June 30, 2023 and 2022. The carrying amount of the major classes of assets and liabilities of discontinued operations as of June 30, 2023 and 2022 consist of the following: SCHEDULE OF DISCONTINUED OPERATIONS June 30, 2023 June 30, 2022 Assets of discontinued operation: Current assets: Cash $ 13,540,793 $ 14,227,219 Accounts receivables, net 2,278,824 1,821,554 Due from related parties 4,534,211 6,794,987 Inventories, net 16,720,575 18,718,524 Advances to suppliers, net - 3,551 Other current assets, net 34,643 1,420,637 Total current assets of discontinued operation 37,109,046 42,986,472 Property and equipment, net 32,777 1,373,820 Long-term deposit and other noncurrent assets 4,884 9,525 Operating lease right-of-use assets 2,538,037 2,088,149 Total assets of discontinued operation $ 39,684,744 $ 46,457,966 Liabilities of discontinued operation: Current liabilities: Accounts payable $ 143,173 $ 1,547 Advances from customers - 6,676 Due to related parties 2,431,191 2,702,719 Other payables and accrued expenses 2,005,519 5,109,476 Operating lease liabilities - current 551,502 959,909 Taxes payable 262,459 285,198 Total current liabilities of discontinued operation 5,393,844 9,065,525 Operating lease liabilities - non-current 1,404,823 1,025,967 Total liabilities of discontinued operation $ 6,798,667 $ 10,091,492 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 2023 2022 For the Years Ended June 30, 2023 2022 REVENUE $ 2,491,939 $ 2,186,460 COST OF REVENUE Cost of product and services 2,242,207 2,222,880 Stock written off due to natural disaster 803,186 1,574,241 Business and sales related tax 43 2 Total cost of revenue 3,045,436 3,797,123 GROSS LOSS (553,497 ) (1,610,663 ) OPERATING EXPENSES General and administrative expenses 2,521,778 14,017,280 Selling expenses 29,951 43,197 Impairment loss of distribution rights - 1,140,551 Total operating expenses 2,551,729 15,201,028 LOSS FROM OPERATIONS (3,105,226 ) (16,811,691 ) OTHER INCOME (EXPENSE) Impairment loss on an unconsolidated entity - (165,349 ) Other income (expenses) (142,258 ) 51,253 Interest income (expense), net 2,621 (407,165 ) Total other loss (139,637 ) (521,261 ) LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS (3,244,863 ) (17,332,952 ) BENEIFT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (292,266 ) LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX $ (3,244,863 ) $ (17,040,686 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS - (2,433,395 ) NET LOSS FROM DISCONTINUED OPERATIONS $ (3,244,863 ) $ (19,474,081 ) Net loss attributable to non-controlling interest (8,368 ) (34,045 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (3,236,495 ) $ (19,440,036 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22 - SUBSEQUENT EVENTS On August 30, 2023, the Board of Directors of the Company approved the issuance of shares of common stock pursuant to the Company’s 2022 Plan in the aggregate amount of 3,805,000 532,700 0.14 On May 29, 2023, Life Science HK entered into a stock purchase agreement (the “Agreement”) with Dream Partner Limited, a BVI corporation (“Dream Partner”), Chongqing Wintus Group, a corporation incorporated under the laws of mainland China (“Wintus”) and certain shareholders of Dream Partner (the “Sellers”), pursuant to which Shineco Life shall acquire 71.42 2,000,000 10,000,000 100 These consolidated financial statements were approved by management and available for issuance on September 28, 2023, and the Company has evaluated subsequent events through this date. No subsequent events required adjustments to or disclosure in these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
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. There are no consolidated assets of the VIEs and the VIEs’ subsidiaries that are collateral for the obligations of the VIEs and the VIEs’ subsidiaries and can only be used to settle the obligations of the VIEs and the VIEs’ subsidiaries. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors or beneficial interest holders of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs in normal course of business. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs and the VIEs’ subsidiaries. However, if the VIEs and the VIEs’ subsidiaries ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIEs and the VIEs’ subsidiaries through loans to the shareholder of the VIEs and the VIEs’ subsidiaries or entrustment loans to the VIEs and the VIEs’ subsidiaries. The total carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities and income information and the carrying amount of the VIEs and their subsidiaries’ consolidated income information held for discontinued operations were as follows: SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION June 30, 2023 June 30, 2022 Current assets $ 32,532,618 $ 34,723,255 Non-current assets 2,493,883 1,212,739 Total assets 35,026,501 35,935,994 Total liabilities (5,952,438 ) (5,719,289 ) Net assets $ 29,074,063 $ 30,216,705 2023 2022 For the years ended June 30, 2023 2022 Net sales $ 2,448,508 $ 2,142,511 Gross loss $ (594,290 ) $ (1,556,403 ) Income (loss) from operations $ 482,105 $ (11,476,699 ) Net income (loss) attributable to Shineco, Inc. $ 515,789 $ (14,023,582 ) |
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 loss 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 VIEs, which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain the economic benefits from the VIEs. In addition, should these agreements be challenged or litigated, they would also be subject to the laws and courts of the PRC legal system, which could make enforcing the Company’s rights difficult. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with 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 The Company generates its revenues primarily through sales of Luobuma products, agricultural products and rapid diagnostic and other products, as well as providing logistic services and other processing services to external customers in accordance with ASC 606. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. 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 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. More specifically, revenue related to the Company’s products and services is generally recognized as follows: Sales of products: Revenue from the provision of services |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposit, and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of June 30, 2023 and 2022, the Company had no Under PRC law, it is generally required that a commercial bank in the PRC that holds third-party cash deposits protect the depositors’ rights over and interests in their deposited money. PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Company monitors the banks utilized and has not experienced any problems. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are recorded at net realizable value, consisting of the carrying amount less an allowance for uncollectible accounts, as necessary. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, the customers’ historical payment history, their current credit-worthiness, and current economic trends. The fair value of long-term receivables is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. As of June 30, 2023 and 2022, the allowance for doubtful accounts from the continuing operations was US$ 946,892 nil 7,206,958 7,317,236 |
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. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell 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, 2023 and 2022, the inventory reserve from the continuing operations was US$ 56,655 nil 1,106,649 1,249,543 |
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, 2023 and 2022, the allowance for uncollectible advances from the continuing operations was US$ 3,502 nil 10,163,946 13,544,627 |
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 follows FASB ASC No. 842, Leases Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease ROU assets are reviewed for impairment annually. For the years ended June 30, 2023 and 2022, the impairment for its ROU assets from the continuing operations were both US$ nil nil 2,268,344 |
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 3 10 Motor vehicles 5 10 Office equipment 3 10 Farmland leasehold improvements 12 18 Leasehold improvement Lesser of useful life and lease term |
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, 2023 and 2022, the impairment for its long-lived assets from the continuing operations were both US$ 689,923 nil nil 4,315,888 |
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, 2023 and 2022. 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, 2023, 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, 2023, the tax years ended December 31, 2018 through December 31, 2022 for the Company’s PRC subsidiaries from the continuing operations and the discontinued operations 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% to 21%. As the Company has a June 30 fiscal year end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28 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”). All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold |
Foreign Currency Translation | Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars,” “USD,” or “US$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss. The balance sheet amounts, with the exception of equity, at June 30, 2023 and 2022 were translated at 1 0.1378 1 0.1493 1 0.1438 1 0.1549 |
Convertible Notes Payable | Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option |
Research and Development Expenses | Research and Development Expenses Research and development costs relating to the development of new processes and significant improvements and refinements to existing processes are expensed when incurred in accordance with the FASB ASC 730, “Research and Development.” The research and development costs primarily comprise employee costs, consultant fees, materials and testing costs, and depreciation to property and equipment used in the research and development activities and other miscellaneous expenses. For the years ended June 30, 2023 and 2022, total research and development expense from continuing operations were approximately US$ 135,849 nil |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive 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 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 50 |
Loss per Share | Loss per Share The Company computes loss per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net loss divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., outstanding convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the years ended June 30, 2023 and 2022. The following table presents a reconciliation of basic and diluted loss per share for the years ended June 30, 2023 and 2022: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE 2023 2022 For the years ended June 30, 2023 2022 Net loss from continuing operations attributable to Shineco $ (10,126,904 ) $ (7,593,058 ) Net loss from discontinued operations attributable to Shineco (3,236,495 ) (19,440,036 ) Net loss attributable to Shineco $ (13,363,399 ) $ (27,033,094 ) Weighted average shares outstanding - basic and diluted 18,634,212 9,458,077 Net loss from continuing operations per share of common share Basic and diluted $ (0.54 ) $ (0.80 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.17 ) $ (2.06 ) Net loss per share of common share Basic and diluted $ (0.71 ) $ (2.86 ) |
Reclassifications | Reclassifications Certain prior year balances were reclassified to conform to the current year’s presentation with consideration of reflecting the Company’s Tenet-Jove Disposal 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Targeted Transition Relief. In November 2021, the FASB issued ASU 2021-10, Disclosures by Entities about Government Assistance (Topic 832) 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, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION | SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION June 30, 2023 June 30, 2022 Current assets $ 32,532,618 $ 34,723,255 Non-current assets 2,493,883 1,212,739 Total assets 35,026,501 35,935,994 Total liabilities (5,952,438 ) (5,719,289 ) Net assets $ 29,074,063 $ 30,216,705 2023 2022 For the years ended June 30, 2023 2022 Net sales $ 2,448,508 $ 2,142,511 Gross loss $ (594,290 ) $ (1,556,403 ) Income (loss) from operations $ 482,105 $ (11,476,699 ) Net income (loss) attributable to Shineco, Inc. $ 515,789 $ (14,023,582 ) |
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 3 10 Motor vehicles 5 10 Office equipment 3 10 Farmland leasehold improvements 12 18 Leasehold improvement Lesser of useful life and lease term |
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE | The following table presents a reconciliation of basic and diluted loss per share for the years ended June 30, 2023 and 2022: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE 2023 2022 For the years ended June 30, 2023 2022 Net loss from continuing operations attributable to Shineco $ (10,126,904 ) $ (7,593,058 ) Net loss from discontinued operations attributable to Shineco (3,236,495 ) (19,440,036 ) Net loss attributable to Shineco $ (13,363,399 ) $ (27,033,094 ) Weighted average shares outstanding - basic and diluted 18,634,212 9,458,077 Net loss from continuing operations per share of common share Basic and diluted $ (0.54 ) $ (0.80 ) Net loss from discontinued operations per share of common share Basic and diluted $ (0.17 ) $ (2.06 ) Net loss per share of common share Basic and diluted $ (0.71 ) $ (2.86 ) |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2023 June 30, 2022 Accounts receivable $ 10,467,260 $ 9,138,790 Less: allowance for doubtful accounts (8,153,850 ) (7,317,236 ) Accounts receivable, net 2,313,410 1,821,554 Less: accounts receivable, net held for discontinued operations (2,278,824 ) (1,821,554 ) Accounts receivable, net held for continuing operations $ 34,586 $ - |
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, 2023 June 30, 2022 Beginning balance $ 7,317,236 $ 9,635,506 Acquisition of Biowin 451,863 - Charge to expense 1,050,753 1,632,670 Less: disposal of VIE - (3,677,073 ) Less: write-off (62,125 ) Foreign currency translation adjustments (603,877 ) (273,867 ) Ending balance $ 8,153,850 $ 7,317,236 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES, NET | The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET June 30, 2023 June 30, 2022 Raw materials $ 315,129 $ 67,467 Work-in-process 16,713,913 18,709,325 Finished goods 1,179,243 1,191,275 Less: inventory reserve (1,163,304 ) (1,249,543 ) Total inventories, net 17,044,981 18,718,524 Less: inventories, net, held for discontinued operations (16,720,575 ) (18,718,524 ) Inventories, net, held for continuing operations $ 324,406 $ - |
ADVANCES TO SUPPLIERS, NET (Tab
ADVANCES TO SUPPLIERS, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Advances to suppliers $ 10,170,145 $ 13,548,178 Less: allowance for doubtful accounts (10,167,448 ) (13,544,627 ) Advance to suppliers, net 2,697 3,551 Less: advance to supplier, net, held for discontinued operations - (3,551 ) Advance to supplier, net, held for continuing operations $ 2,697 $ - |
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, 2023 June 30, 2022 Beginning balance $ 13,544,627 $ 10,885,264 Acquisition of Biowin 56,831 - Charge to (reversal of) expense (2,349,716 ) 4,938,064 Less: disposal of VIE - (1,774,400 ) Less: write-off (147,172 ) Foreign currency translation adjustments (937,122 ) (504,301 ) Ending balance $ 10,167,448 $ 13,544,627 |
OTHER CURRENT ASSETS, NET (Tabl
OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER CURRENT ASSETS | Other current assets, net consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS June 30, 2023 June 30, 2022 Loans to third parties (1) $ 1,481,101 $ 16,345,717 Other receivables (2) 2,629,733 3,246,293 Prepayment for business acquisition (3) 2,000,000 - Short-term deposit 37,015 164,261 Prepaid expenses 1,629 20,872 Subtotal 6,149,478 19,777,143 Less: allowance for doubtful accounts (3,287,793 ) (2,545,565 ) Total other current assets, net 2,861,685 17,231,578 Less: other current assets, net, held for discontinued operations (34,643 ) (1,420,637 ) Other current assets, net, held for continuing operations $ 2,827,042 $ 15,810,941 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. Due to the impact from COVID-19, the Company did not receive repayments of loans to third parties according to the loan agreements, hence, the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of June 30, 2023 and 2022, the allowance for doubtful accounts was US$ 1,481,101 384,915 2) Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses. 3) The amount pertains to prepaid purchase consideration made for acquisition of Wintus. |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movement of allowance for doubtful accounts is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2023 June 30, 2022 Beginning balance $ 2,545,565 $ 995,760 Acquisition of Biowin 14,504 - Charge to expense 1,867,474 2,117,316 Less: disposal of VIE - (326,491 ) Less: write-off (964,509 ) - Foreign currency translation adjustments (175,241 ) (241,020 ) Ending balance $ 3,287,793 $ 2,545,565 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Buildings $ 1,064,656 $ 1,808,172 Machinery and equipment 1,132,064 27,351 Motor vehicles 195,183 139,077 Office equipment 142,288 178,271 Leasehold improvement - 186,314 Farmland leasehold improvements 2,898,328 3,139,729 Subtotal 5,432,519 5,478,914 Less: accumulated depreciation and amortization (3,437,327 ) (3,388,640 ) Less: impairment for property and equipment (749,299 ) (714,802 ) Total property and equipment, net 1,245,893 1,375,472 Less: property and equipment, net, held for discontinued operations (32,777 ) (1,373,820 ) Property and equipment, net held for continuing operations $ 1,213,116 $ 1,652 |
SCHEDULE OF LEASEHOLD IMPROVEMENTS | Farmland leasehold improvements, net consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS June 30, 2023 June 30, 2022 Blueberry farmland leasehold improvements $ 2,226,624 $ 2,412,079 Yew tree planting base reconstruction 249,464 270,242 Greenhouse renovation 422,240 457,408 Subtotal 2,898,328 3,139,729 Less: accumulated amortization (2,238,484 ) (2,424,927 ) Less: impairment for farmland leasehold improvements (659,844 ) (714,802 ) Total farmland leasehold improvements, net $ - $ - |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES | The Company’s investment in unconsolidated entities consists of the following: SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES June 30, 2023 June 30, 2022 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 | Summarized financial information of unconsolidated entities from continuing operations is as follows: SCHEDULE OF FINANCIAL INFORMATION OF UNCONSOLIDATED ENTITIES FROM CONTINUED OPERATIONS June 30, 2023 June 30, 2022 Current assets $ - $ 558,962 Current liabilities $ - $ 1,478 2023 2022 For the years ended June 30, 2023 2022 Net sales $ 29,986 $ - Gross loss - (94 ) Loss from operations (186,640 ) (403,069 ) Net loss (188,374 ) (414,231 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases | |
SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES | The table below presents the operating lease related assets and liabilities held for continuing operations recorded on the balance sheets. SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES June 30, 2023 June 30, 2022 ROU lease assets $ 132,366 $ - Operating lease liabilities – current 86,978 - Operating lease liabilities – non-current 44,469 - Total operating lease liabilities $ 131,447 $ - June 30, 2023 June 30, 2022 ROU lease assets $ 2,538,037 $ 2,088,149 Operating lease liabilities – current 551,502 959,909 Operating lease liabilities – non-current 1,404,823 1,025,967 Total operating lease liabilities $ 1,956,325 $ 1,985,876 |
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 held for continuing operations were as follows as of June 30, 2023 and 2022: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES June 30, 2023 June 30, 2022 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.92 - Weighted average discount rate 4.61 % - The weighted average remaining lease terms and discount rates for all of operating leases held for discontinued operations were as follows as of June 30, 2023 and 2022: June 30, 2023 June 30, 2022 Remaining lease term and discount rate: Weighted average remaining lease term (years) 5.85 6.88 Weighted average discount rate 4.36 % 5.30 |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2023: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Continuing operations Discontinued operations 2024 $ 90,965 $ 633,010 2025 45,482 608,157 2026 - 318,248 2027 - 318,248 2028 - 20,674 Thereafter - 399,694 Total lease payments 136,447 2,298,031 Less: imputed interest (5,000 ) (341,706 ) Present value of lease liabilities $ 131,447 $ 1,956,325 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Acquisition [Line Items] | |
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 liabilities (2,503,607 ) Operating lease liabilities (1,013,492 ) Total purchase price for acquisition, net of US$ 112,070 $ 16,224,379 |
SCHEDULE OF INTANGIBLE ASSETS | The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of June 30, 2023 is as follows: SCHEDULE OF INTANGIBLE ASSETS Average Useful Life (in Years) Intangible assets $ 12,683,655 10 Less: accumulated amortization (634,183 ) Total intangible assets, net 12,049,473 Less: intangible assets, net held for discontinued operations - Total intangible assets, net held for continuing operations $ 12,049,473 |
Changzhou Biowin Pharmaceutical Co Ltd [Member] | |
Business Acquisition [Line Items] | |
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 Accounts receivable, net $ 807,771 Inventories, net 784,336 Other current assets, net 49,979 Property and equipment, net 138,252 Intangible assets 12,683,656 Operating lease right-of-use assets 173,831 Goodwill 6,574,743 Deferred tax assets, net 346,523 Short-term bank loans (1,594,596 ) Accounts payable (349,989 ) Advances from customers (407,437 ) Other current liabilities (446,729 ) Operating lease liabilities - non-current (45,730 ) Deferred tax liabilities (1,937,804 ) Non-controlling interest (5,301,785 ) Total purchase price for acquisition, net of US$ 621,979 $ 11,475,021 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF DUE FROM RELATED PARTIES | As of June 30, 2023 and 2022, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES June 30, 2023 June 30, 2022 Zhao Min $ - $ 1,410 Shanghai Gaojing Private Fund Management (a.) 396,938 429,998 Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (“Zhongjian Yijia”) (b.) 1,441,485 1,719,568 Zhongjian (Qingdao) International Logistics Development Co., Ltd. (“Zhongjian International”) (c.) 4,534,211 4,644,011 Subtotal 6,372,634 6,794,987 Less: allowance for doubtful accounts (1,838,423 ) - Total due from related parties, net 4,534,211 6,794,987 Less: due from related parties, held for discontinued operations (4,534,211 ) (6,794,987 ) Due from related parties, held for continuing operations $ - $ - a. The Company owns 32 impairment on this investment and fully recorded an allowance for doubtful accounts for the amount due from this company as of June 30, 2023. b. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia to with an amount of US$ 1,642,355 11.0 6.0 77,213 206,738 1.5 689,128 5.0 206,738 1.5 1,441,485 10.5 Interest income was US$ 63,519 80,113 c. On October 28, 2021, the Company entered into a loan agreement with Zhongjian International to with an amount of US$ 4,334,401 29.9 6.0 4,534,211 4,644,011 Interest income was US$ 258,034 186,543 |
SCHEDULE OF DUE TO RELATED PARTIES | SCHEDULE OF DUE TO RELATED PARTIES June 30, 2023 June 30, 2022 Wu Yang $ - $ 95,630 Wang Sai - 96,081 Li Baolin 1,930 - Zhao Min (a.) 409,345 562,528 Zhou Shunfang (b.) 2,019,916 2,044,561 Huang Shanchun 28,651 - Liu Fengming 4,779 - Yan Lixia 742 - Zhan Jiarui 1,761 - Liu Xinqiao 2,113 - Mike Zhao 10,000 - Total due to related parties 2,479,237 2,798,800 Less: due to related parties, held for discontinued operations (2,431,191 ) (2,702,719 ) Due to related parties, held for continuing operations $ 48,046 $ 96,081 a. 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 5.0 27,565 0.2 379,217 b. 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 |
SHORT-TERM BANK LOANS (Tables)
SHORT-TERM BANK LOANS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT TERM BANK LOANS | Short-term bank loans consisted of the following: SCHEDULE OF SHORT TERM BANK LOANS Lender June 30, 2023 Maturity Date Int. Rate/Year Jiangnan Rural Commercial Bank- a $ 413,477 2024/3/29 4.80 % Bank of Jiangsu- b 413,477 2024/6/13 4.00 % Bank of China- c 413,477 2024/6/26 3.60 % Total short-term bank loans 1,240,431 Less: short-term loans, held for discontinued operations - Short-term loans, held for continuing operations $ 1,240,431 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by Mr. Liu Fengming, the CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company. b. Guaranteed by Mr. Liu Fengming, the CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company, and Biowin Development, the wholly-owned subsidiary of the Company. c. Guaranteed by Mr. Liu Fengming, the CEO of the Company, and his wife, Mrs. Jie Liang. |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX BENEFIT | i) The components of the income tax benefit were as follows: SCHEDULE OF INCOME TAX BENEFIT 2023 2022 For the years ended June 30, 2023 2022 Current income tax benefit $ - $ - Deferred income tax benefit (194,564 ) (292,266 ) Total income tax benefit (194,564 ) (292,266 ) Less: income tax expenses, held for discontinued operations - 292,266 Income tax expenses, held for continuing operations $ (194,564 ) $ - |
SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES | ii) The components of the deferred tax liability were as follows: SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES June 30, 2023 June 30, 2022 Deferred tax assets: Allowance for doubtful accounts $ 1,360,693 $ 1,252,245 Inventory reserve 281,237 311,439 Net operating loss carry-forwards 1,223,159 979,682 Total 2,865,089 2,543,366 Valuation allowance (2,471,066 ) (2,543,366 ) Total deferred tax assets 394,023 - Deferred tax liability: Intangible assets (1,810,615 ) - Total deferred tax liability (1,810,615 ) - Deferred tax liability, net (1,416,592 ) - Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ (1,416,592 ) $ - |
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE | Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE June 30, 2023 June 30, 2022 Beginning balance $ 2,543,366 $ 1,810,023 Acquisition of Biowin 376,085 - Current year addition (reduction) (252,836 ) 798,160 Exchange difference (195,549 ) (64,817 ) Ending balance 2,471,066 2,543,366 Less: valuation allowance, held for discontinued operations (2,396,504 ) (2,543,366 ) Valuation allowance, held for continuing operations $ 74,562 $ - |
SCHEDULE OF TAXES PAYABLE | Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE June 30, 2023 June 30, 2022 Income tax payable $ 1,048,188 $ 992,780 Value added tax payable 46,451 34,925 Business tax and other taxes payable 3,834 3,375 Total tax payable 1,098,473 1,031,080 Less: tax payable, held for discontinued operations (262,459 ) (285,198 ) Tax payable, held for continuing operations $ 836,014 $ 745,882 Income tax payable - current portion $ 763,328 $ 584,220 Less: income tax payable - current portion, held for discontinued operations (262,459 ) (285,198 ) Income tax payable - current portion, held for continuing operations $ 500,869 $ 299,022 Income tax payable - noncurrent portion $ 335,145 $ 446,860 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 335,145 $ 446,860 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF INFORMATION BY SEGMENT | The following table presents summarized information by segment for the year ended June 30, 2023: SCHEDULE OF INFORMATION BY SEGMENT For the year ended June 30, 2023 Continuing Operations Discontinued Operations Rapid diagnostic and other Luobuma Other agricultural Freight products products products services Total Segment revenue $ 550,476 $ 43,431 $ 2,022,219 $ 426,289 $ 3,042,415 Cost of revenue and related business and sales tax 424,291 2,638 2,748,167 294,631 3,469,727 Gross profit (loss) 126,185 40,793 (725,948 ) 131,658 (427,312 ) Gross profit (loss) % 22.9 % 93.9 % (35.9 )% 30.9 % (14.0 )% The following table presents summarized information by segment for the year ended June 30, 2022: For the year ended June 30, 2022 Continuing Operations Discontinued Operations Rapid diagnostic and other Luobuma Other agricultural Freight products products products services Total Segment revenue $ - $ 43,949 $ 1,687,884 $ 454,627 $ 2,186,460 Cost of revenue and related business and sales tax - 98,209 3,364,744 334,170 3,797,123 Gross profit (loss) - (54,260 ) (1,676,860 ) 120,457 (1,610,663 ) Gross profit (loss) % - (123.5 )% (99.3 )% 26.5 % (73.7 )% Total assets as of June 30, 2023 and 2022 were as follows: June 30, 2023 June 30, 2022 Luobuma products $ 4,717,588 $ 10,982,562 Other agricultural products 33,408,143 46,488,334 Freight services 4,964,012 6,355,121 Rapid diagnostic and other products 20,379,396 - Total assets 63,469,139 63,826,017 Less: total assets held for discontinued operations (39,684,744 ) (46,457,966 ) Total assets, held for continuing operations $ 23,784,395 $ 17,368,051 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS | The carrying amount of the major classes of assets and liabilities of discontinued operations as of June 30, 2023 and 2022 consist of the following: SCHEDULE OF DISCONTINUED OPERATIONS June 30, 2023 June 30, 2022 Assets of discontinued operation: Current assets: Cash $ 13,540,793 $ 14,227,219 Accounts receivables, net 2,278,824 1,821,554 Due from related parties 4,534,211 6,794,987 Inventories, net 16,720,575 18,718,524 Advances to suppliers, net - 3,551 Other current assets, net 34,643 1,420,637 Total current assets of discontinued operation 37,109,046 42,986,472 Property and equipment, net 32,777 1,373,820 Long-term deposit and other noncurrent assets 4,884 9,525 Operating lease right-of-use assets 2,538,037 2,088,149 Total assets of discontinued operation $ 39,684,744 $ 46,457,966 Liabilities of discontinued operation: Current liabilities: Accounts payable $ 143,173 $ 1,547 Advances from customers - 6,676 Due to related parties 2,431,191 2,702,719 Other payables and accrued expenses 2,005,519 5,109,476 Operating lease liabilities - current 551,502 959,909 Taxes payable 262,459 285,198 Total current liabilities of discontinued operation 5,393,844 9,065,525 Operating lease liabilities - non-current 1,404,823 1,025,967 Total liabilities of discontinued operation $ 6,798,667 $ 10,091,492 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 2023 2022 For the Years Ended June 30, 2023 2022 REVENUE $ 2,491,939 $ 2,186,460 COST OF REVENUE Cost of product and services 2,242,207 2,222,880 Stock written off due to natural disaster 803,186 1,574,241 Business and sales related tax 43 2 Total cost of revenue 3,045,436 3,797,123 GROSS LOSS (553,497 ) (1,610,663 ) OPERATING EXPENSES General and administrative expenses 2,521,778 14,017,280 Selling expenses 29,951 43,197 Impairment loss of distribution rights - 1,140,551 Total operating expenses 2,551,729 15,201,028 LOSS FROM OPERATIONS (3,105,226 ) (16,811,691 ) OTHER INCOME (EXPENSE) Impairment loss on an unconsolidated entity - (165,349 ) Other income (expenses) (142,258 ) 51,253 Interest income (expense), net 2,621 (407,165 ) Total other loss (139,637 ) (521,261 ) LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS (3,244,863 ) (17,332,952 ) BENEIFT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (292,266 ) LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX $ (3,244,863 ) $ (17,040,686 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS - (2,433,395 ) NET LOSS FROM DISCONTINUED OPERATIONS $ (3,244,863 ) $ (19,474,081 ) Net loss attributable to non-controlling interest (8,368 ) (34,045 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (3,236,495 ) $ (19,440,036 ) |
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 2023 2022 For the Years Ended June 30, 2023 2022 REVENUE $ 2,491,939 $ 2,186,460 COST OF REVENUE Cost of product and services 2,242,207 2,222,880 Stock written off due to natural disaster 803,186 1,574,241 Business and sales related tax 43 2 Total cost of revenue 3,045,436 3,797,123 GROSS LOSS (553,497 ) (1,610,663 ) OPERATING EXPENSES General and administrative expenses 2,521,778 14,017,280 Selling expenses 29,951 43,197 Impairment loss of distribution rights - 1,140,551 Total operating expenses 2,551,729 15,201,028 LOSS FROM OPERATIONS (3,105,226 ) (16,811,691 ) OTHER INCOME (EXPENSE) Impairment loss on an unconsolidated entity - (165,349 ) Other income (expenses) (142,258 ) 51,253 Interest income (expense), net 2,621 (407,165 ) Total other loss (139,637 ) (521,261 ) LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS (3,244,863 ) (17,332,952 ) BENEIFT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - (292,266 ) LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX $ (3,244,863 ) $ (17,040,686 ) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS - (2,433,395 ) NET LOSS FROM DISCONTINUED OPERATIONS $ (3,244,863 ) $ (19,474,081 ) Net loss attributable to non-controlling interest (8,368 ) (34,045 ) NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ (3,236,495 ) $ (19,440,036 ) |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 19, 2023 USD ($) | Jan. 12, 2023 USD ($) | Dec. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | May 29, 2023 | May 23, 2023 USD ($) | May 23, 2023 CNY (¥) | May 16, 2023 USD ($) | May 16, 2023 CNY (¥) | Apr. 13, 2022 USD ($) | Dec. 07, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 08, 2021 | Jan. 07, 2021 USD ($) | Jan. 07, 2021 CNY (¥) | Jul. 23, 2020 USD ($) | Jul. 23, 2020 CNY (¥) | May 05, 2019 | Mar. 13, 2019 USD ($) | 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 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 36,853,046 | $ 33,312,888 | $ 45,378,206 | ||||||||||||||||||||||||
Payments to acquire businesses, gross | 9,000,000 | ||||||||||||||||||||||||||
Proceeds from common stock | $ 4,844,007 | $ 9,681,171 | |||||||||||||||||||||||||
Changzhou Biowin Pharmaceutical Co Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Business acquisition, percentage | 51% | ||||||||||||||||||||||||||
Payments to acquire businesses, gross | $ 9,000,000 | ||||||||||||||||||||||||||
Shares issued | shares | 3,260,000 | ||||||||||||||||||||||||||
Share price | $ / shares | $ 0.001 | ||||||||||||||||||||||||||
Gross proceeds | $ 12,097,000 | ||||||||||||||||||||||||||
Chongqing Wintus Group [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Business acquisition, percentage | 100% | ||||||||||||||||||||||||||
Stock Purchase Agreement [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Proceeds from common stock | $ 650,000 | ||||||||||||||||||||||||||
Xinjiang Taihe [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||
Runze [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 1,500,000 | ¥ 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 | $ 1,500,000 | ¥ 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 | |||||||||||||||||||||||||
Life Science [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 10,000,000 | ||||||||||||||||||||||||||
Shineco Life Science Group Hong Kong Co., Limited [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 10,000,000 | ||||||||||||||||||||||||||
Shinkang Technology (Jiangsu) Co., Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 1,400,000 | ¥ 10,000,000 | |||||||||||||||||||||||||
Fuzhou Media Health Management Co [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | ¥ | ¥ 1,000,000 | ||||||||||||||||||||||||||
Fuzhou Media Health Mangement Co [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 100,000 | ||||||||||||||||||||||||||
Beijing Shineco Chongshi Information Consulting Co., Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Registered capital | $ 10,000 | ¥ 100,000 | |||||||||||||||||||||||||
Chongqing Wintus Group [Member] | Stock Purchase Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Gross proceeds | $ 2,000,000 | ||||||||||||||||||||||||||
Proceeds from common stock | $ 10,000,000 | ||||||||||||||||||||||||||
Tenet Jove Technological Development Co Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 100% | 100% | |||||||||||||||||||||||||
Tianjin Tenet Technological Development Co Ltd [Member] | Tenet Jove 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% | ||||||||||||||||||||||
Shanghai Jiaying International Co Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 90% | 90% | |||||||||||||||||||||||||
Shareholder [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 45% | 45% | 10% | 10% | |||||||||||||||||||||||
Inner Mongolia Shineco Zhonghemo Biotechnology Co Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 55% | 55% | |||||||||||||||||||||||||
Shineco Life Science Group Hong Kong Co., Limited [Member] | Share Transfer Agreement [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 100% | ||||||||||||||||||||||||||
Shinkang Technology (Jiangsu) Co., Ltd [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 51% | 51% | |||||||||||||||||||||||||
Fuzhou Media Health Mangement Co [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 51% | 51% | |||||||||||||||||||||||||
Chongqing Wintus Group [Member] | |||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||
Equity ownership interest percentage | 71.42% |
GOING CONCERN UNCERTAINTIES (De
GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($) | 12 Months Ended | |||
Jan. 12, 2023 | Aug. 11, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Net losses | $ 13,956,031 | $ 27,067,139 | ||
Operating actiivities | 5,390,594 | 5,712,562 | ||
Gross proceeds from issuance of common stock | 12,941,006 | 9,681,170 | ||
Proceeds from issuance of stock | 4,844,007 | 9,681,171 | ||
Shares issued for employess, shares | 722,222 | |||
Proceeds from shares issued to employess | $ 650,000 | |||
Bank loans outstanding | 1,240,431 | |||
Cash and cash equivalents | 625,966 | $ 938,012 | ||
Securities Purchase Agreement [Member] | Non US Investors [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Stock issuance, shares | 1,921,683 | |||
Share price | $ 0.915 | |||
Gross proceeds from issuance of common stock | $ 1,758,340 | |||
Proceeds from issuance of stock | $ 1,650,000 |
SCHEDULE OF CONSOLIDATED ASSETS
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Current assets | $ 40,923,743 | $ 59,735,425 |
Total assets | 63,469,139 | 63,826,017 |
Total liabilities | (26,616,093) | (30,513,129) |
Net sales | 550,476 | |
Gross loss | 126,185 | |
Income (loss) from operations | (8,757,643) | (6,199,522) |
Net income (loss) attributable to Shineco, Inc. | (13,363,399) | (27,033,094) |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Current assets | 32,532,618 | 34,723,255 |
Non-current assets | 2,493,883 | 1,212,739 |
Total assets | 35,026,501 | 35,935,994 |
Total liabilities | (5,952,438) | (5,719,289) |
Net assets | 29,074,063 | 30,216,705 |
Net sales | 2,448,508 | 2,142,511 |
Gross loss | (594,290) | (1,556,403) |
Income (loss) from operations | 482,105 | (11,476,699) |
Net income (loss) attributable to Shineco, Inc. | $ 515,789 | $ (14,023,582) |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | Jun. 30, 2023 |
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 | 3 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 | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Lease Term [Member] |
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 (LOSS) PER SHARE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||
Net loss from continuing operations attributable to Shineco | $ (10,126,904) | $ (7,593,058) |
Net loss from discontinued operations attributable to Shineco | (3,236,495) | (19,440,036) |
Net loss attributable to Shineco | $ (13,363,399) | $ (27,033,094) |
Weighted average shares outstanding - basic | 18,634,212 | 9,458,077 |
Weighted average shares outstanding - diluted | 18,634,212 | 9,458,077 |
Net loss from continuing operations per share of common share Basic | $ (0.54) | $ (0.80) |
Net loss from continuing operations per share of common share Diluted | (0.54) | (0.80) |
Net loss from discontinued operations per share of common share Basic | (0.17) | (2.06) |
Net loss from discontinued operations per share of common share Diluted | (0.17) | (2.06) |
Net loss per share of common share Basic | (0.71) | (2.86) |
Net loss per share of common share Diluted | $ (0.71) | $ (2.86) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2019 | Jun. 30, 2018 USD ($) | Jun. 30, 2021 USD ($) | |
Cash equivalents | $ 0 | $ 0 | |||
Allowance for doubtful accounts | 8,153,850 | 7,317,236 | $ 9,635,506 | ||
Inventory reserve | $ 1,163,304 | 1,249,543 | |||
Right of use assets | 2,268,344 | ||||
Federal tax rate | 25% | 21% | 28% | ||
Income tax expenses | $ (194,564) | $ 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 | All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold | ||||
Foreign currency translation | 0.1378 | 0.1493 | |||
Foreign currency exchange rate translation one | 0.1438 | 0.1549 | |||
Research and development expense | $ 135,849 | ||||
Minimum [Member] | Voting Stock [Member] | |||||
Percentage of voting stock | 20% | ||||
Maximum [Member] | Voting Stock [Member] | |||||
Percentage of voting stock | 50% | ||||
China, Yuan Renminbi | |||||
Foreign currency translation | 1 | 1 | |||
Foreign currency exchange rate translation one | 1 | 1 | |||
Continuing Operations [Member] | |||||
Allowance for doubtful accounts | $ 946,892 | ||||
Inventory reserve | 56,655 | ||||
Uncollectible advances to suppliers | 3,502 | ||||
Impairment of Long-Lived Assets to be Disposed of | 689,923 | ||||
Continuing Operations [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Right of use assets | |||||
Discontinued Operations [Member] | |||||
Allowance for doubtful accounts | 7,206,958 | 7,317,236 | |||
Inventory reserve | 1,106,649 | ||||
Uncollectible advances to suppliers | 10,163,946 | 13,544,627 | |||
Impairment of Long-Lived Assets to be Disposed of | 4,315,888 | ||||
Discontinued Operations [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Right of use assets | $ 2,268,344 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Credit Loss [Abstract] | |||
Accounts receivable | $ 10,467,260 | $ 9,138,790 | |
Less: allowance for doubtful accounts | (8,153,850) | (7,317,236) | $ (9,635,506) |
Accounts receivable, net | 2,313,410 | 1,821,554 | |
Less: accounts receivable, net held for discontinued operations | (2,278,824) | (1,821,554) | |
Accounts receivable, net held for continuing operations | $ 34,586 |
SCHEDULE OF MOVEMENT OF ALLOWAN
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 7,317,236 | $ 9,635,506 |
Acquisition of Biowin | 451,863 | |
Charge to expense | 1,050,753 | 1,632,670 |
Less: disposal of VIE | (3,677,073) | |
Less: write-off | (62,125) | |
Foreign currency translation adjustments | (603,877) | (273,867) |
Ending balance | $ 8,153,850 | $ 7,317,236 |
SCHEDULE OF INVENTORIES, NET (D
SCHEDULE OF INVENTORIES, NET (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 315,129 | $ 67,467 |
Work-in-process | 16,713,913 | 18,709,325 |
Finished goods | 1,179,243 | 1,191,275 |
Less: inventory reserve | (1,163,304) | (1,249,543) |
Total inventories, net | 17,044,981 | 18,718,524 |
Less: inventories, net, held for discontinued operations | (16,720,575) | (18,718,524) |
Inventories, net, held for continuing operations | $ 324,406 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | ||
Inventory write down | $ 803,186 | $ 1,574,241 |
SCHEDULE OF ADVANCES TO SUPPLIE
SCHEDULE OF ADVANCES TO SUPPLIERS (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Advances To Suppliers Net | |||
Advances to suppliers | $ 10,170,145 | $ 13,548,178 | |
Less: allowance for doubtful accounts | (10,167,448) | (13,544,627) | $ (10,885,264) |
Advance to suppliers, net | 2,697 | 3,551 | |
Less: advance to supplier, net, held for discontinued operations | (3,551) | ||
Advance to supplier, net, held for continuing operations | $ 2,697 |
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, 2023 | Jun. 30, 2022 | |
Advances To Suppliers Net | ||
Beginning balance | $ 13,544,627 | $ 10,885,264 |
Acquisition of Biowin | 56,831 | |
Charge to (reversal of) expense | (2,349,716) | 4,938,064 |
Less: disposal of VIE | (1,774,400) | |
Less: write-off | (147,172) | |
Foreign currency translation adjustments | (937,122) | (504,301) |
Ending balance | $ 10,167,448 | $ 13,544,627 |
SCHEDULE OF OTHER CURRENT ASSET
SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Loans to third parties | [1] | $ 1,481,101 | $ 16,345,717 | |
Other receivables | [2] | 2,629,733 | 3,246,293 | |
Prepayment for business acquisition | [3] | 2,000,000 | ||
Short-term deposit | 37,015 | 164,261 | ||
Prepaid expenses | 1,629 | 20,872 | ||
Subtotal | 6,149,478 | 19,777,143 | ||
Less: allowance for doubtful accounts | (3,287,793) | (2,545,565) | $ (995,760) | |
Total other current assets, net | 2,861,685 | 17,231,578 | ||
Less: other current assets, net, held for discontinued operations | (34,643) | (1,420,637) | ||
Other current assets, net, held for continuing operations | $ 2,827,042 | $ 15,810,941 | ||
[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. Due to the impact from COVID-19, the Company did not receive repayments of loans to third parties according to the loan agreements, hence, the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of June 30, 2023 and 2022, the allowance for doubtful accounts was US$ 1,481,101 384,915 |
SCHEDULE OF OTHER CURRENT ASS_2
SCHEDULE OF OTHER CURRENT ASSETS (Details) (Parenthetical) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Allowance for doubtful accounts | $ 1,481,101 | $ 384,915 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Beginning balance | $ 2,545,565 | $ 995,760 |
Acquisition of Biowin | 14,504 | |
Charge to expense | 1,867,474 | 2,117,316 |
Less: disposal of VIE | (326,491) | |
Less: write-off | (964,509) | |
Foreign currency translation adjustments | (175,241) | (241,020) |
Ending balance | $ 3,287,793 | $ 2,545,565 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 5,432,519 | $ 5,478,914 |
Less: accumulated depreciation and amortization | (3,437,327) | (3,388,640) |
Less: impairment for property and equipment | (749,299) | (714,802) |
Total property and equipment, net | 1,245,893 | 1,375,472 |
Less: property and equipment, net, held for discontinued operations | (32,777) | (1,373,820) |
Property and equipment, net held for continuing operations | 1,213,116 | 1,652 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,064,656 | 1,808,172 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,132,064 | 27,351 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 195,183 | 139,077 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 142,288 | 178,271 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 186,314 | |
Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 2,898,328 | $ 3,139,729 |
SCHEDULE OF LEASEHOLD IMPROVEME
SCHEDULE OF LEASEHOLD IMPROVEMENTS (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 2,898,328 | $ 3,139,729 |
Less: accumulated amortization | (2,238,484) | (2,424,927) |
Less: impairment for farmland leasehold improvements | (659,844) | (714,802) |
Total farmland leasehold improvements, net | ||
Blueberry Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,226,624 | 2,412,079 |
Yew Tree Planting Base Reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 249,464 | 270,242 |
Greenhouse Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 422,240 | $ 457,408 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Impairment of property and equipment | $ 93,353 | |
Continuing Operations [Member] | ||
Depreciation and amortization expense | 28,976 | 101 |
Impairment of property and equipment | 93,353 | |
Discontinued Operations [Member] | ||
Depreciation and amortization expense | 87,129 | 386,871 |
Impairment of property and equipment | $ 741,644 |
SCHEDULE OF INVESTMENT IN UNCON
SCHEDULE OF INVESTMENT IN UNCONSOLIDATED ENTITIES (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
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, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Current assets | $ 40,923,743 | $ 59,735,425 |
Current liabilities | 23,346,151 | 29,040,302 |
Net sales | 550,476 | |
Gross loss | 126,185 | |
Loss from operations | (8,757,643) | (6,199,522) |
Net loss | (13,363,399) | (27,033,094) |
Majority-Owned Subsidiary, Nonconsolidated [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current assets | 558,962 | |
Current liabilities | 1,478 | |
Net sales | 29,986 | |
Gross loss | (94) | |
Loss from operations | (186,640) | (403,069) |
Net loss | $ (188,374) | $ (414,231) |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) $ / shares in Units, ¥ in Millions | 12 Months Ended | |||||||
Jan. 30, 2022 | Jan. 18, 2022 $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 CNY (¥) | |
Income loss from equity method investemnts | $ (20,876) | $ (132,554) | ||||||
Three Shares Transfer Agreements [Member] | ||||||||
Percentage of issued and outstanding equity interest | 51% | |||||||
Stock issued during period, shares | shares | 700,551 | |||||||
Stock issued price per share | $ / shares | $ 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 | |||||||
Yushe Pharmaceutical [Member] | Guangyuan [Member] | ||||||||
Equity method investments | $ 300,000 | ¥ 2 | ||||||
Equity method investment ownership percentage | 20% | 20% | ||||||
Gaojing Private Fund [Member] | ||||||||
Equity method investments | $ 700,000 | $ 700,000 | ¥ 4.8 | |||||
Equity method investment ownership percentage | 32% | 32% | ||||||
Income loss from equity method investemnts | $ 20,876 | $ 132,554 |
SCHEDULE OF OPERATING LEASE REL
SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
ROU lease assets | $ 132,366 | |
Operating lease liabilities – current | 86,978 | |
Operating lease liabilities – non-current | 44,469 | |
Total operating lease liabilities | 131,447 | |
Discontinued Operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
ROU lease assets | 2,538,037 | 2,088,149 |
Operating lease liabilities – current | 551,502 | 959,909 |
Operating lease liabilities – non-current | 1,404,823 | 1,025,967 |
Total operating lease liabilities | $ 1,956,325 | $ 1,985,876 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Weighted average remaining lease term (years) | 1 year 11 months 1 day | |
Weighted average discount rate | 4.61% | |
Discontinued Operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average remaining lease term (years) | 5 years 10 months 6 days | 6 years 10 months 17 days |
Weighted average discount rate | 4.36% | 5.30% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Present value of lease liabilities | $ 131,447 | |
Continuing operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
2024 | 90,965 | |
2025 | 45,482 | |
2026 | ||
2027 | ||
2028 | ||
Thereafter | ||
Total lease payments | 136,447 | |
Less: imputed interest | (5,000) | |
Present value of lease liabilities | 131,447 | |
Discontinued Operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
2024 | 633,010 | |
2025 | 608,157 | |
2026 | 318,248 | |
2027 | 318,248 | |
2028 | 20,674 | |
Thereafter | 399,694 | |
Total lease payments | 2,298,031 | |
Less: imputed interest | (341,706) | |
Present value of lease liabilities | $ 1,956,325 | $ 1,985,876 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Impairment loss on ROU | $ 2,268,344 | |
Continued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rent expenses | $ 169,542 | 344,624 |
Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rent expenses | $ 521,711 | $ 740,125 |
Offices Space [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 3 years | |
Offices Space [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 24 years |
SUMMARIZES THE ALLOCATION OF ES
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Business Acquisition [Line Items] | ||
Due from related party | $ 108,296 | |
Inventories, net | 18,115,423 | |
Other current assets, net | 224,522 | |
Right of use assets | 1,127,130 | |
Long-term investments and other non-current assets | 166,107 | |
Other payables and other current liabilities | (2,503,607) | |
Operating lease liabilities | (1,013,492) | |
Total purchase price for acquisition, net of US$621,979 of cash | 16,224,379 | |
Goodwill | 6,574,743 | |
Changzhou Biowin Pharmaceutical Co Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Inventories, net | 784,336 | |
Other current assets, net | 49,979 | |
Total purchase price for acquisition, net of US$621,979 of cash | 11,475,021 | |
Accounts receivable, net | 807,771 | |
Property and equipment, net | 138,252 | |
Intangible assets | 12,683,656 | |
Operating lease right-of-use assets | 173,831 | |
Goodwill | 6,574,743 | |
Deferred tax assets, net | 346,523 | |
Short-term bank loans | (1,594,596) | |
Accounts payable | (349,989) | |
Advances from customers | (407,437) | |
Other current liabilities | (446,729) | |
Operating lease liabilities - non-current | (45,730) | |
Deferred tax liabilities | (1,937,804) | |
Non-controlling interest | $ (5,301,785) |
SUMMARIZES THE ALLOCATION OF _2
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Pruchase price of acquisition | $ 112,070 | |
Cash acquired | 621,979 | |
Changzhou Biowin Pharmaceutical Co Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Cash acquired | $ 621,979 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Business Combination and Asset Acquisition [Abstract] | ||
Intangible assets | $ 12,683,655 | |
Intangible assets, average useful life | 10 years | |
Less: accumulated amortization | $ (634,183) | |
Total intangible assets, net | 12,049,473 | |
Less: intangible assets, net held for discontinued operations | ||
Total intangible assets, net held for continuing operations | $ 12,049,473 |
ACQUISITION (Details Narrative)
ACQUISITION (Details Narrative) | 12 Months Ended | ||||||||||
Dec. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2016 USD ($) | Dec. 31, 2016 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Oct. 21, 2022 USD ($) shares | Jun. 08, 2021 | May 05, 2019 | Oct. 26, 2017 USD ($) | Oct. 26, 2017 CNY (¥) | Dec. 12, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 6,574,743 | ||||||||||
Acquisition related costs | |||||||||||
Revenues | 44,150 | ||||||||||
Net income (loss) attributable to Shineco, Inc. | (13,363,399) | (27,033,094) | |||||||||
Amortization of Intangible Assets | 634,183 | ||||||||||
Tianjin Tajite [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest | 77.40% | 51% | |||||||||
Business acquistion consideration transfered | $ 2,100,000 | ¥ 14,000,000 | |||||||||
Goodwill | $ 2,100,000 | ¥ 14,010,195 | |||||||||
Transferredship of equity percentage | 100% | 26.40% | |||||||||
Guangyuan Forest Development Co Ltd [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net income (loss) attributable to Shineco, Inc. | 122,575 | 904,922 | |||||||||
Changzhou Biowin Pharmaceutical Co Ltd [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest | 51% | 51% | |||||||||
Business acquistion consideration transfered | $ 12,097,000 | ||||||||||
Goodwill | 6,574,743 | ||||||||||
Acquisition related costs | 130,887 | $ 700,000 | |||||||||
Revenues | 550,476 | ||||||||||
Net income (loss) attributable to Shineco, Inc. | $ 1,181,289 | ||||||||||
Cash | $ 9,000,000 | $ 9,000,000 | |||||||||
Shares issued | shares | 3,260,000 | 3,260,000 | |||||||||
Share price | $ / shares | $ 0.001 |
SCHEDULE OF DUE FROM RELATED PA
SCHEDULE OF DUE FROM RELATED PARTIES (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | |||
Total due from related parties, net | [1] | $ 2,629,733 | $ 3,246,293 |
Zhao Min [Member] | |||
Related Party Transaction [Line Items] | |||
Subtotal | 1,410 | ||
Shanghai Gaojing Private Fund Management [Member] | |||
Related Party Transaction [Line Items] | |||
Subtotal | [2] | 396,938 | 429,998 |
Zhongjian Yijia Health Technology Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Subtotal | [3] | 1,441,485 | 1,719,568 |
Zhongjian International Logistics Development Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Subtotal | [4] | 4,534,211 | 4,644,011 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Subtotal | 6,372,634 | 6,794,987 | |
Less: allowance for doubtful accounts | (1,838,423) | ||
Total due from related parties, net | 4,534,211 | 6,794,987 | |
Less: due from related parties, held for discontinued operations | (4,534,211) | (6,794,987) | |
Due from related parties, held for continuing operations | |||
[1]Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses.[2]The Company owns 32 impairment on this investment and fully recorded an allowance for doubtful accounts for the amount due from this company as of June 30, 2023. 1,642,355 11.0 6.0 77,213 206,738 1.5 689,128 5.0 206,738 1.5 1,441,485 10.5 4,334,401 29.9 6.0 4,534,211 4,644,011 |
SCHEDULE OF DUE FROM RELATED _2
SCHEDULE OF DUE FROM RELATED PARTIES (Details) (Parenthetical) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2022 USD ($) | Oct. 28, 2021 USD ($) | Oct. 28, 2021 CNY (¥) | Sep. 17, 2021 USD ($) | Sep. 17, 2021 CNY (¥) | |
Related Party Transaction [Line Items] | |||||||||||
Interest income other | $ 77,213 | ||||||||||
Zhongjian Yijia Health Technology Co Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Total Outstanding balance | $ 1,441,485 | ||||||||||
Fixed annual interest rate | 6% | 6% | |||||||||
Payments for debt | $ 689,128 | ¥ 5 | $ 206,738 | ¥ 1.5 | |||||||
Repayment receivable of debt | 206,738 | ¥ 1.5 | |||||||||
Allowance for doubtful accounts | 10,500,000 | ||||||||||
Accrued interest income | 63,519 | 80,113 | |||||||||
Zhongjian Yijia Health Technology Co Ltd [Member] | Loan Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Total Outstanding balance | $ 1,642,355 | ¥ 11 | |||||||||
Zhongjian International Logistics Development Co Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Total Outstanding balance | 4,534,211 | 4,644,011 | $ 4,334,401 | ¥ 29.9 | |||||||
Fixed annual interest rate | 6% | 6% | |||||||||
Accrued interest income | $ 258,034 | $ 186,543 | |||||||||
Shanghai Gaojing Private Fund Management [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, 2023 | Jun. 30, 2022 | |
Wu Yang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 95,630 | ||
Wang Sai [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 96,081 | ||
Li Baolin [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,930 | ||
Zhao Min [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | [1] | 409,345 | 562,528 |
Zhao Shunfang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | [2] | 2,019,916 | 2,044,561 |
Huang Shanchun [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 28,651 | ||
Liu Fengming [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 4,779 | ||
Yan Lixia [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 742 | ||
Zhan Jiarui [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,761 | ||
LiuXinqiao [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 2,113 | ||
Mike Zhao [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 10,000 | ||
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 48,046 | 96,081 | |
Less: due to related parties, held for discontinued operations | (2,431,191) | (2,702,719) | |
Due to related parties, held for continuing operations | 48,046 | 96,081 | |
Related Party [Member] | Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 2,479,237 | $ 2,798,800 | |
[1]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 5.0 27,565 0.2 379,217 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 | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | |
Zhao Min [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related party loan | $ 365,797 | ¥ 2,450 | ||
Debt instrument, maturity date, description | July 2022 to September 2022 | July 2022 to September 2022 | ||
Annual interest rate | 5% | |||
Proceeds from bank debt | $ 27,565 | ¥ 200 | ||
Outstanding balance | $ 379,217 | |||
Zhou Shunfang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related party loan | $ 1,269,092 | ¥ 8,500 | ||
Annual interest rate | 20% | 20% | ||
Debt maturity rate | Mar. 31, 2022 | Mar. 31, 2022 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 12 Months Ended | |||
May 24, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | May 29, 2023 USD ($) | |
Related Party Transaction [Line Items] | ||||
Interest expenses on loan | $ 21,766 | $ 442,241 | ||
Yuying Zhang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Collateral Amount | $ 1,048,710 | |||
Weiqing Guo [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Face Amount | ¥ | ¥ 15,000,000 | |||
Debt Instrument, Maturity Date, Description | extend the due date of the principal amount from May 23, 2023 to May 23, 2024 | |||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 48,046 | 96,081 | ||
Related Party [Member] | Discontinued Operations [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 2,431,191 | 2,702,719 | ||
Related Party [Member] | Continuing Operations [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 48,046 | $ 96,081 |
SCHEDULE OF SHORT TERM BANK LOA
SCHEDULE OF SHORT TERM BANK LOANS (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Short-Term Debt [Line Items] | |||
Short-term loans, held for continuing operations | $ 1,240,431 | ||
Discontinued Operations [Member] | |||
Short-Term Debt [Line Items] | |||
Short-term loans, held for continuing operations | |||
Continuing Operations [Member] | |||
Short-Term Debt [Line Items] | |||
Short-term loans, held for continuing operations | 1,240,431 | ||
Jiangnan Rural Commercial Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Short-term loans, held for continuing operations | [1] | $ 413,477 | |
Maturity date | 2024/3/29 | ||
Interest rate | 4.80% | ||
Bank Of Jiangsu [Member] | |||
Short-Term Debt [Line Items] | |||
Short-term loans, held for continuing operations | [2] | $ 413,477 | |
Maturity date | [2] | 2024/6/13 | |
Interest rate | [2] | 4% | |
Bank Of China [Member] | |||
Short-Term Debt [Line Items] | |||
Short-term loans, held for continuing operations | [3] | $ 413,477 | |
Maturity date | [3] | 2024/6/26 | |
Interest rate | [3] | 3.60% | |
[1]Guaranteed by Mr. Liu Fengming, the CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company.[2]Guaranteed by Mr. Liu Fengming, the CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company, and Biowin Development, the wholly-owned subsidiary of the Company.[3]Guaranteed by Mr. Liu Fengming, the CEO of the Company, and his wife, Mrs. Jie Liang. |
SHORT-TERM BANK LOANS (Details
SHORT-TERM BANK LOANS (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Weighted average interest rate | 4.45% | |
Discontinued Operations [Member] | ||
Interest expense | ||
Continuing Operations [Member] | ||
Interest expense | $ 31,059 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | |||||||||
Jun. 15, 2023 | Jan. 18, 2023 | Oct. 21, 2022 | Sep. 07, 2022 | Aug. 19, 2021 | Jul. 16, 2021 | Jun. 16, 2021 | Jun. 16, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Short-Term Debt [Line Items] | ||||||||||
Proceeds from convertible debt | $ 17,000,000 | |||||||||
Common stock shares issued | 26,393,381 | 10,983,863 | ||||||||
Investor [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Amortization of financing costs | $ 803,355 | $ 1,379,777 | ||||||||
Common stock shares issued | 3,073,320 | |||||||||
Debt instrument periodic payment | $ 8,392,639 | |||||||||
Note payable | 15,126,198 | |||||||||
Debt instrument carrying amount | 15,843,643 | |||||||||
Deferred financing costs | $ 717,445 | |||||||||
Unsecured Convertible Promissory Note [Member] | Investor [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt, maturity beginning portion | Oct. 21, 2022 | |||||||||
Debt, maturity ending portion | Jan. 20, 2023 | |||||||||
Convertible Promissory Note [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt description | The Investor may seek repayment of 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 | |||||||||
Second June Note Amendment [Member] | Unsecured Convertible Promissory Note [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt, maturity date | Jun. 17, 2022 | |||||||||
Second June Note Amendment [Member] | Unsecured Convertible Promissory Note [Member] | Investor [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt, maturity date | Jun. 17, 2024 | |||||||||
Total Outstanding balance | $ 3,929,497.72 | |||||||||
Securities Purchase Agreement [Member] | Unsecured Convertible Promissory Note [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Total Outstanding balance | $ 10,520,000 | $ 3,170,000 | $ 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 | 150,000 | ||||||
Legal fees | $ 20,000 | $ 20,000 | $ 20,000 | |||||||
Debt Instrument, Term | 1 year | |||||||||
Interest rate | 6% | |||||||||
Securities Purchase Agreement [Member] | Second Convertible Promissory Note [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Total Outstanding balance | $ 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 | |||||||||
First June Note Amendment [Member] | Unsecured Convertible Promissory Note [Member] | Investor [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Total Outstanding balance | $ 3,500,528.40 | |||||||||
First August Note Amendment [Member] | Unsecured Convertible Promissory Note [Member] | Investor [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt, maturity date | Aug. 23, 2023 | |||||||||
Total Outstanding balance | $ 11,053,443.50 | |||||||||
Second August Note Amendment [Member] | Unsecured Convertible Promissory Note [Member] | Investor [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt, maturity date | Aug. 23, 2024 | |||||||||
Total Outstanding balance | $ 11,878,240.57 |
SCHEDULE OF INCOME TAX BENEFIT
SCHEDULE OF INCOME TAX BENEFIT (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current income tax benefit | |||
Deferred income tax benefit | (194,564) | (292,266) | |
Total income tax benefit | (194,564) | (292,266) | |
Less: income tax expenses, held for discontinued operations | 292,266 | ||
Income tax expenses, held for continuing operations | $ (194,564) | $ 744,766 |
SCHEDULE OF FINANCIAL REPORTING
SCHEDULE OF FINANCIAL REPORTING BASIS AND TAX BASIS OF ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred tax assets: | |||
Allowance for doubtful accounts | $ 1,360,693 | $ 1,252,245 | |
Inventory reserve | 281,237 | 311,439 | |
Net operating loss carry-forwards | 1,223,159 | 979,682 | |
Total | 2,865,089 | 2,543,366 | |
Valuation allowance | (2,471,066) | (2,543,366) | $ (1,810,023) |
Total deferred tax assets | 394,023 | ||
Deferred tax liability: | |||
Intangible assets | (1,810,615) | ||
Total deferred tax liability | (1,810,615) | ||
Deferred tax liability, net | (1,416,592) | ||
Less: deferred tax liability, net, held for discontinued operations | |||
Deferred tax liability, net, held for continuing operations | $ (1,416,592) |
SCHEDULE OF MOVEMENT OF VALUATI
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 2,543,366 | $ 1,810,023 |
Current year addition | 376,085 | |
Current year addition | (252,836) | 798,160 |
Exchange difference | (195,549) | (64,817) |
Ending balance | 2,471,066 | 2,543,366 |
Valuation allowance, held for discontinued operations | (2,396,504) | (2,543,366) |
Valuation allowance held for continuing operations | $ 74,562 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 1,048,188 | $ 992,780 |
Value added tax payable | 46,451 | 34,925 |
Business tax and other taxes payable | 3,834 | 3,375 |
Total tax payable | 1,098,473 | 1,031,080 |
Less: tax payable, held for discontinued operations | (262,459) | (285,198) |
Tax payable, held for continuing operations | 836,014 | 745,882 |
Income tax payable - current portion | 763,328 | 584,220 |
Less: income tax payable - current portion, held for discontinued operations | (262,459) | (285,198) |
Income tax payable - current portion, held for continuing operations | 500,869 | 299,022 |
Income tax payable - noncurrent portion | 335,145 | 446,860 |
Less: income tax payable - noncurrent portion, held for discontinued operations | ||
Income tax payable - noncurrent portion, held for continuing operations | $ 335,145 | $ 446,860 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate, percent | 25% | 21% | 28% | |
Reduced income tax, description | Biowin is subject to corporate income tax at a reduced rate of 15% starting from December 2019, when it was approved by local government as a High and New Technology Enterprises (“HNTEs”), to December 2022. In December 2022, the Company successfully renewed its HNTE certification with local government and will continue to enjoy the reduced income tax rate of 15% for another three years through December 2025 | |||
Income tax expenses | $ (194,564) | $ 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 | All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold. For overseas sales, VAT is exempted on the exported goods. 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. 21, 2023 | Jun. 19, 2023 | May 17, 2023 | Jan. 12, 2023 | Aug. 11, 2022 | Jul. 27, 2022 | Jul. 21, 2022 | Jun. 13, 2022 | Apr. 11, 2022 | Dec. 06, 2021 | Apr. 10, 2021 | Jul. 10, 2020 | Sep. 28, 2016 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 30, 2022 | Oct. 21, 2022 | Jun. 30, 2021 | Aug. 14, 2020 | |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Gross proceeds from initial public offering, value | $ 12,941,006 | $ 9,681,170 | |||||||||||||||||
Statutory surplus reserve percentage | 10% | ||||||||||||||||||
Registered capital reserve | 50% | ||||||||||||||||||
Statutory reserves | $ 4,198,107 | $ 4,198,107 | |||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||||||||||||||||
Common stock, shares outstanding | 26,393,381 | 10,983,863 | |||||||||||||||||
Proceeds from issuance of common stock | $ 4,844,007 | $ 9,681,171 | |||||||||||||||||
Common stock outstanding | 3,024,000 | ||||||||||||||||||
Stock issued for services, value | 30,000 | ||||||||||||||||||
Gross proceeds | 3,782,362 | $ 3,024,000 | |||||||||||||||||
Changzhou Biowin Pharmaceutical Co Ltd [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||||
Acquire equity interest percentage | 51% | 51% | |||||||||||||||||
Cash | $ 9,000,000 | $ 9,000,000 | |||||||||||||||||
Shares issued | 3,260,000 | 3,260,000 | |||||||||||||||||
2022 Equity Investment Plan [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Issuance of shares | 1,500,000 | ||||||||||||||||||
Securities Purchase Agreement [Member] | Jing Wang [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Share price | $ 2.26 | ||||||||||||||||||
Securities Purchase Agreement [Member] | Jing Wang [Member] | Maximum [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Proceeds from issuance of common stock | $ 2,200,000 | ||||||||||||||||||
Sale of stock | 973,451 | ||||||||||||||||||
Securities Purchase Agreement [Member] | GHS Investments LLC [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Proceeds from issuance of common stock | $ 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] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Share price | $ 0.54 | $ 3 | |||||||||||||||||
Proceeds from issuance of common stock | $ 650,000 | ||||||||||||||||||
Sale of stock | 722,222 | ||||||||||||||||||
Stock issued for services | 167,778 | 10,000 | |||||||||||||||||
Stock issued for services, value | $ 90,600 | $ 30,000 | |||||||||||||||||
Gross proceeds | 650,000 | ||||||||||||||||||
Stock Purchase Agreement [Member] | Non US Investors [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Share price | $ 1.05 | $ 2.12 | |||||||||||||||||
Proceeds from issuance of common stock | $ 1,200,000 | $ 5,000,000 | |||||||||||||||||
Sale of stock | 1,137,170 | 2,354,500 | |||||||||||||||||
Securites Purchase Agreement [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Share price | $ 0.915 | ||||||||||||||||||
Gross proceeds | $ 108,362 | ||||||||||||||||||
Securites Purchase Agreement [Member] | Maximum [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Proceeds from issuance of common stock | $ 1,758,340 | ||||||||||||||||||
Sale of stock | 1,921,683 | ||||||||||||||||||
Agreement [Member] | Non US Investors [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Share price | $ 0.5 | ||||||||||||||||||
Proceeds from issuance of common stock | $ 2,000,000 | ||||||||||||||||||
Sale of stock | 4,000,000 | ||||||||||||||||||
Selected Investors [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Issuance of shares | 3,872,194 | ||||||||||||||||||
Share price | $ 3.2 | ||||||||||||||||||
Proceeds from issuance of common stock | $ 7,981,204 | ||||||||||||||||||
Board of Directors [Member] | 2022 Equity Investment Plan [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Share price | $ 1.02 | ||||||||||||||||||
Stock issued for services | 600,000 | ||||||||||||||||||
Stock issued for services, value | $ 612,000 | ||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Issuance of shares | 12,673,353 | 1,265,226 | |||||||||||||||||
Gross proceeds from initial public offering, value | $ 12,673 | $ 1,265 | |||||||||||||||||
Reverse stock split description | 1-for-9 | ||||||||||||||||||
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 | ||||||||||||||||||
Stock issued for services | 10,000 | ||||||||||||||||||
Stock issued for services, value | $ 10 | ||||||||||||||||||
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] | |||||||||||||||||||
Issuance of shares | 190,354 | ||||||||||||||||||
Share price | $ 40.50 | ||||||||||||||||||
Gross proceeds from initial public offering, value | $ 7,700,000 | ||||||||||||||||||
Net proceeds from initial public offering, net of offering costs | $ 5,400,000 |
CONCENTRATIONS AND RISKS (Detai
CONCENTRATIONS AND RISKS (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 71% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 85% | |
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14% | |
Continuing Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 94% | |
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Four Vendor [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 77% | |
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Vendor [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 92% | |
Discontinued Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 81% | |
Discontinued Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 85% | |
Discontinued Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Two Vendor [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 | $ 581,092 | $ 111,684 |
CHINA | Discontinued Operations [Member] | ||
Concentration Risk [Line Items] | ||
Cash | $ 13,540,534 | $ 14,226,937 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 USD ($) | Jan. 31, 2023 CNY (¥) | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Subscription receivable | $ 3,782,362 | $ 3,024,000 | ||
Lei Zhang And Yan Li [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Stock issuance, shares | shares | 982,500 | |||
Subscription receivable | $ 3,024,000 | |||
Settlement Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Payment to plaintiff | $ 700,000 | ¥ 4.8 |
SCHEDULE OF INFORMATION BY SEGM
SCHEDULE OF INFORMATION BY SEGMENT (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 550,476 | |
Segment revenue, discontinued operation | 3,042,415 | 2,186,460 |
Cost of revenue and related business and sales tax | 424,291 | |
Cost of revenue and related business and sales tax, discontinued operation | 3,469,727 | 3,797,123 |
Gross profit (loss) | 126,185 | |
Gross profit (loss), discontinued operation | $ (427,312) | $ (1,610,663) |
Gross profit (loss) percentage, discontinued operation | (14.00%) | (73.70%) |
Total assets | $ 63,469,139 | $ 63,826,017 |
Less: total assets held for discontinued operations | (39,684,744) | (46,457,966) |
Total assets, held for continuing operations | 23,784,395 | 17,368,051 |
Rapid Diagnostic and Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 550,476 | 0 |
Cost of revenue and related business and sales tax | 424,291 | 0 |
Gross profit (loss) | $ 126,185 | $ 0 |
Gross profit (loss) percentage | 22.90% | (0.00%) |
Total assets | $ 20,379,396 | |
Luobuma Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue, discontinued operation | 43,431 | 43,949 |
Cost of revenue and related business and sales tax, discontinued operation | 2,638 | 98,209 |
Gross profit (loss), discontinued operation | $ 40,793 | $ (54,260) |
Gross profit (loss) percentage, discontinued operation | 93.90% | (12350.00%) |
Total assets | $ 4,717,588 | $ 10,982,562 |
Other Agricultural Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue, discontinued operation | 2,022,219 | 1,687,884 |
Cost of revenue and related business and sales tax, discontinued operation | 2,748,167 | 3,364,744 |
Gross profit (loss), discontinued operation | $ (725,948) | $ (1,676,860) |
Gross profit (loss) percentage, discontinued operation | (35.90%) | (9930.00%) |
Total assets | $ 33,408,143 | $ 46,488,334 |
Freight Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue, discontinued operation | 426,289 | 454,627 |
Cost of revenue and related business and sales tax, discontinued operation | 294,631 | 334,170 |
Gross profit (loss), discontinued operation | $ 131,658 | $ 120,457 |
Gross profit (loss) percentage, discontinued operation | 30.90% | 2,650% |
Total assets | $ 4,964,012 | $ 6,355,121 |
SCHEDULE OF DISPOSAL GROUP INCL
SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Current assets: | ||
Cash | $ 13,540,793 | $ 14,227,219 |
Accounts receivables, net | 2,278,824 | 1,821,554 |
Inventories, net | 16,720,575 | 18,718,524 |
Other current assets, net | 34,643 | 1,420,637 |
Total current assets of discontinued operation | 37,109,046 | 42,986,472 |
Long-term deposit and other noncurrent assets | 12,049,473 | |
Operating lease right-of-use assets | 132,366 | |
Current liabilities: | ||
Taxes payable | 262,459 | 285,198 |
Total current liabilities of discontinued operation | 5,393,844 | 9,065,525 |
REVENUE | 3,042,415 | 2,186,460 |
Total cost of revenue | 3,469,727 | 3,797,123 |
GROSS LOSS | (427,312) | (1,610,663) |
BENEIFT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | 292,266 | |
LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS | (2,433,395) | |
Net loss from discontinued operations | (3,244,863) | (19,474,081) |
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (3,236,495) | (19,440,036) |
Discontinued Operations [Member] | ||
Current assets: | ||
Cash | 13,540,793 | 14,227,219 |
Accounts receivables, net | 2,278,824 | 1,821,554 |
Due from related parties | 4,534,211 | 6,794,987 |
Inventories, net | 16,720,575 | 18,718,524 |
Advances to suppliers, net | 3,551 | |
Other current assets, net | 34,643 | 1,420,637 |
Total current assets of discontinued operation | 37,109,046 | 42,986,472 |
Property and equipment, net | 32,777 | 1,373,820 |
Long-term deposit and other noncurrent assets | 4,884 | 9,525 |
Operating lease right-of-use assets | 2,538,037 | 2,088,149 |
Total assets of discontinued operation | 39,684,744 | 46,457,966 |
Current liabilities: | ||
Accounts payable | 143,173 | 1,547 |
Advances from customers | 6,676 | |
Due to related parties | 2,431,191 | 2,702,719 |
Other payables and accrued expenses | 2,005,519 | 5,109,476 |
Operating lease liabilities - current | 551,502 | 959,909 |
Taxes payable | 262,459 | 285,198 |
Total current liabilities of discontinued operation | 5,393,844 | 9,065,525 |
Operating lease liabilities - non-current | 1,404,823 | 1,025,967 |
Total liabilities of discontinued operation | 6,798,667 | 10,091,492 |
REVENUE | 2,491,939 | 2,186,460 |
Total cost of revenue | 3,045,436 | 3,797,123 |
GROSS LOSS | (553,497) | (1,610,663) |
General and administrative expenses | 2,521,778 | 14,017,280 |
Selling expenses | 29,951 | 43,197 |
Impairment loss of distribution rights | 1,140,551 | |
Total operating expenses | 2,551,729 | 15,201,028 |
LOSS FROM OPERATIONS | (3,105,226) | (16,811,691) |
Impairment loss on an unconsolidated entity | (165,349) | |
Other income (expenses) | (142,258) | 51,253 |
Interest income (expense), net | 2,621 | (407,165) |
Total other loss | (139,637) | (521,261) |
LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (3,244,863) | (17,332,952) |
BENEIFT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (292,266) | |
LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX | (3,244,863) | (17,040,686) |
LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS | (2,433,395) | |
Net loss from discontinued operations | (3,244,863) | (19,474,081) |
Net loss attributable to non-controlling interest | (8,368) | (34,045) |
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (3,236,495) | (19,440,036) |
Discontinued Operations [Member] | Cost of Product and Service [Member] | ||
Current liabilities: | ||
Total cost of revenue | 2,242,207 | 2,222,880 |
Discontinued Operations [Member] | Stock Writtern Off Due To Natural Disaster [Member] | ||
Current liabilities: | ||
Total cost of revenue | 803,186 | 1,574,241 |
Discontinued Operations [Member] | Business and Sales Related Tax [Member] | ||
Current liabilities: | ||
Total cost of revenue | $ 43 | $ 2 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 12 Months Ended | |||||
Sep. 19, 2023 | Jan. 12, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | May 29, 2023 | Jun. 08, 2021 | |
Proceeds from common stock | $ 4,844,007 | $ 9,681,171 | ||||
Subsequent Event [Member] | Chongqing Wintus Group [Member] | ||||||
Business acquisition, percentage | 100% | |||||
Stock Purchase Agreement [Member] | ||||||
Proceeds from common stock | $ 650,000 | |||||
Stock Purchase Agreement [Member] | Chongqing Wintus Group [Member] | Subsequent Event [Member] | ||||||
Gross proceeds | $ 2,000,000 | |||||
Proceeds from common stock | $ 10,000,000 | |||||
Chongqing Wintus Group [Member] | ||||||
Equity ownership interest percentage | 71.42% | |||||
Mr. Jiping Chen [Member] | Ankang Longevity [Member] | ||||||
Equity ownership interest percentage | 68.70% | |||||
Ms. Xiaoyan Chen [Member] | Ankang Longevity [Member] | ||||||
Equity ownership interest percentage | 31.30% | |||||
Mr. Baolin Li [Member] | Guangyuan [Member] | ||||||
Equity ownership interest percentage | 90% | |||||
Ms. Yufeng Zhang [Member] | Guangyuan [Member] | ||||||
Equity ownership interest percentage | 10% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Sep. 19, 2023 | Aug. 30, 2023 | May 17, 2023 | Jan. 12, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | May 29, 2023 | |
Subsequent Event [Line Items] | |||||||
Stock issued for services value | $ 30,000 | ||||||
Proceeds from common stock | $ 4,844,007 | $ 9,681,171 | |||||
Stock Purchase Agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock issued for services | 167,778 | 10,000 | |||||
Stock issued for services value | $ 90,600 | $ 30,000 | |||||
Share price | $ 0.54 | $ 3 | |||||
Proceeds from common stock | $ 650,000 | ||||||
Chongqing Wintus Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Equity ownership interest percentage | 71.42% | ||||||
Subsequent Event [Member] | Chongqing Wintus Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business acquisition, percentage | 100% | ||||||
Subsequent Event [Member] | Stock Purchase Agreement [Member] | Chongqing Wintus Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Gross proceeds | $ 2,000,000 | ||||||
Proceeds from common stock | $ 10,000,000 | ||||||
Subsequent Event [Member] | Twenty Twenty Two Plan [Member] | Non Officer Employees [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock issued for services | 3,805,000 | ||||||
Stock issued for services value | $ 532,700 | ||||||
Share price | $ 0.14 |