Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 08, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | T1, South Tower | |
Entity Address, Address Line Two | Jiazhaoye Square | |
Entity Address, Address Line Three | Chaoyang District | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100022 | |
City Area Code | (+86) | |
Local Phone Number | 10-87227366 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | SISI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,412,902 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,187,200 | $ 625,966 | |
Accounts receivable, net | 6,958,185 | 34,586 | |
Inventories, net | 1,988,830 | 324,406 | |
Advances to suppliers, net | 8,486,049 | 2,697 | |
Derivative financial assets | 3,645 | ||
Other current assets, net | 2,749,308 | 2,827,042 | |
Current assets held for discontinued operations | 37,109,046 | ||
TOTAL CURRENT ASSETS | 21,849,939 | 40,923,743 | |
Property and equipment, net | 6,408,236 | 1,213,116 | |
Land use right, net | 621,675 | ||
Intangible assets, net | 45,425,630 | 12,049,473 | |
Goodwill | 28,015,104 | 6,574,743 | |
Operating lease right-of-use assets | 133,318 | 132,366 | |
Non-current assets held for discontinued operations | 2,575,698 | ||
TOTAL ASSETS | 102,453,902 | 63,469,139 | |
CURRENT LIABILITIES: | |||
Short-term loans | 14,917,912 | 1,240,431 | |
Long-term loans - current portion | 649,736 | ||
Accounts payable | 2,443,077 | 191,148 | |
Contract liabilities | 3,371,992 | 89,490 | |
Other payables and accrued expenses | 1,892,374 | 669,147 | |
Operating lease liabilities - current | 126,857 | 86,978 | |
Convertible note payable | 14,353,591 | 15,126,198 | |
Taxes payable | 1,175,377 | 500,869 | |
Current liabilities held for discontinued operations | 5,393,844 | ||
TOTAL CURRENT LIABILITIES | 40,505,884 | 23,346,151 | |
Income tax payable - noncurrent portion | 335,145 | 335,145 | |
Operating lease liabilities - non-current | 19,563 | 44,469 | |
Long-term loans | 1,115,851 | ||
Deferred tax liability | 9,623,224 | 1,416,592 | |
Other long-term payable | 34,605 | 68,913 | |
Non-current liabilities held for discontinued operations | 1,404,823 | ||
TOTAL LIABILITIES | 51,634,272 | 26,616,093 | |
Commitments and contingencies | |||
EQUITY: | |||
Common stock; par value $0.001, 100,000,000 shares authorized; 6,412,902 and 2,639,338 shares issued and outstanding at December 31, 2023 and June 30, 2023 | [1] | 6,413 | 2,639 |
Additional paid-in capital | 65,838,872 | 68,871,317 | |
Subscription receivable | (178,332) | (3,782,362) | |
Statutory reserve | 4,198,107 | 4,198,107 | |
Accumulated deficit | (30,696,669) | (31,735,422) | |
Accumulated other comprehensive loss | (94,049) | (4,992,381) | |
Total Stockholders’ equity of Shineco, Inc. | 39,074,342 | 32,561,898 | |
Non-controlling interest | 11,745,288 | 4,291,148 | |
TOTAL EQUITY | 50,819,630 | 36,853,046 | |
TOTAL LIABILITIES AND EQUITY | 102,453,902 | 63,469,139 | |
Related Party [Member] | |||
CURRENT ASSETS: | |||
Due from related parties | 476,722 | ||
CURRENT LIABILITIES: | |||
Due to related parties | $ 1,574,968 | $ 48,046 | |
[1]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2023 | Jun. 30, 2023 |
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 | 6,412,902 | 2,639,338 |
Common stock, shares outstanding | 6,412,902 | 2,639,338 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Income Statement [Abstract] | |||||
REVENUE | $ 2,306,902 | $ 3,952,759 | |||
COST OF REVENUE | |||||
Cost of products | 1,988,252 | 3,534,177 | |||
Business and sales related tax | 6,332 | 7,309 | |||
Total cost of revenue | 1,994,584 | 3,541,486 | |||
GROSS INCOME | 312,318 | 411,273 | |||
OPERATING EXPENSES | |||||
General and administrative expenses | 5,591,910 | 1,482,895 | 8,851,375 | 3,294,780 | |
Selling expenses | 84,362 | 132,195 | |||
Research and development expenses | 22,218 | 45,916 | |||
Total operating expenses | 5,698,490 | 1,482,895 | 9,029,486 | 3,294,780 | |
LOSS FROM OPERATIONS | (5,386,172) | (1,482,895) | (8,618,213) | (3,294,780) | |
OTHER INCOME (EXPENSE) | |||||
Income (loss) from equity method investment | 83 | (6,221) | |||
Investment income from derivative financial assets | 766 | 3,534 | |||
Other income, net | 274,065 | 274,883 | |||
Amortization of debt issuance and other costs | (199,234) | (201,569) | (366,057) | (355,972) | |
Interest expenses, net | (452,090) | (240,742) | (821,301) | (290,846) | |
Total other expenses | (376,493) | (442,228) | (908,941) | (653,039) | |
LOSS BEFORE PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS | (5,762,665) | (1,925,123) | (9,527,154) | (3,947,819) | |
BENEFIT FOR INCOME TAXES | (706,562) | (957,928) | |||
NET LOSS FROM CONTINUING OPERATIONS | (5,056,103) | (1,925,123) | (8,569,226) | (3,947,819) | |
DISCONTINUED OPERATIONS: | |||||
Loss from discontinued operations, net of taxes | (847,388) | (49,455) | (1,267,012) | ||
Income from disposal of discontinued operations | 8,904,702 | ||||
Net income (loss) from discontinued operations | (847,388) | 8,855,247 | (1,267,012) | ||
NET INCOME (LOSS) | (5,056,103) | (2,772,511) | 286,021 | (5,214,831) | |
Net loss attributable to non-controlling interest | (728,661) | (2,638) | (752,732) | (5,236) | |
NET INCOME (LOSS) ATTRIBUTABLE TO SHINECO, INC. | (4,327,442) | (2,769,873) | 1,038,753 | (5,209,595) | |
COMPREHENSIVE INCOME (LOSS) | |||||
Net income (loss) | (5,056,103) | (2,772,511) | 286,021 | (5,214,831) | |
Other comprehensive income (loss): foreign currency translation income (loss) | 40,390 | 1,125,027 | 138,355 | (1,156,311) | |
Total comprehensive income (loss) | (5,015,713) | (1,647,484) | 424,376 | (6,371,142) | |
Less: comprehensive income (loss) attributable to non-controlling interest | (702,789) | (14,461) | (743,333) | 6,287 | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHINECO, INC. | $ (4,312,924) | $ (1,633,023) | $ 1,167,709 | $ (6,377,429) | |
Weighted average number of shares - basic | [1],[2] | 5,129,978 | 1,785,018 | 4,145,127 | 1,624,966 |
Weighted average number of shares - diluted | [1],[2] | 5,129,978 | 1,785,018 | 4,145,127 | 1,624,966 |
Net earnings loss per common share - basic | $ (0.84) | $ (1.55) | $ 0.25 | $ (3.21) | |
Net earnings loss per common share - diluted | (0.84) | (1.55) | 0.25 | (3.21) | |
Earnings loss per common share continuing operations - basic | (0.84) | (1.08) | (1.89) | (2.43) | |
Earnings loss per common share continuing operations - diluted | (0.84) | (1.08) | (1.89) | (2.43) | |
Earnings loss per common share discontinuing operations - basic | (0.47) | 2.14 | (0.78) | ||
Earnings loss per common share discontinuing operations - diluted | $ (0.47) | $ 2.14 | $ (0.78) | ||
[1]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024[2]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Common Stock [Member] | Subscription Receivable [Member] | Additional Paid-in Capital [Member] | Statutory Reservel [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |
Balance at Jun. 30, 2022 | $ 1,098 | $ (3,024,000) | $ 53,008,810 | $ 4,198,107 | $ (18,372,023) | $ (2,100,756) | $ (398,348) | $ 33,312,888 | |
Balance, shares at Jun. 30, 2022 | [1] | 1,098,387 | |||||||
Stock issuance | $ 754 | (508,340) | 9,854,586 | 9,347,000 | |||||
Stock issuance, shares | [1] | 753,618 | |||||||
Issuance of common shares for convertible notes redemption | $ 54 | 527,582 | 527,636 | ||||||
Issuance of common shares for convertible notes redemption, shares | [1] | 53,731 | |||||||
Common stock issued for management and employees | $ 60 | 611,940 | 612,000 | ||||||
Common stock issued for management and employees, shares | [1] | 60,000 | |||||||
Net loss from continuing operations for the period | (3,947,819) | (3,947,819) | |||||||
Net loss from discontinued operation for the period | (1,261,776) | (5,236) | (1,267,012) | ||||||
Foreign currency translation gain (loss) | (1,167,834) | 11,523 | (1,156,311) | ||||||
Balance at Dec. 31, 2022 | $ 1,966 | (3,532,340) | 64,002,918 | 4,198,107 | (23,581,618) | (3,268,590) | (392,061) | 37,428,382 | |
Balance, shares at Dec. 31, 2022 | [1] | 1,965,736 | |||||||
Balance at Sep. 30, 2022 | $ 1,640 | (3,782,340) | 60,906,244 | 4,198,107 | (20,811,745) | (4,405,440) | (377,600) | 35,728,866 | |
Balance, shares at Sep. 30, 2022 | [2] | 1,639,736 | |||||||
Stock issuance | $ 326 | 250,000 | 3,096,674 | 3,347,000 | |||||
Stock issuance, shares | [2] | 326,000 | |||||||
Net loss from continuing operations for the period | (1,925,123) | (1,925,123) | |||||||
Net loss from discontinued operation for the period | (844,750) | (2,638) | (847,388) | ||||||
Foreign currency translation gain (loss) | 1,136,850 | (11,823) | 1,125,027 | ||||||
Balance at Dec. 31, 2022 | $ 1,966 | (3,532,340) | 64,002,918 | 4,198,107 | (23,581,618) | (3,268,590) | (392,061) | 37,428,382 | |
Balance, shares at Dec. 31, 2022 | [1] | 1,965,736 | |||||||
Balance at Jun. 30, 2023 | $ 2,639 | (3,782,362) | 68,871,317 | 4,198,107 | (31,735,422) | (4,992,381) | 4,291,148 | 36,853,046 | |
Balance, shares at Jun. 30, 2023 | [1] | 2,639,338 | |||||||
Stock issuance | $ 1,200 | 1,438,800 | 1,440,000 | ||||||
Stock issuance, shares | [1] | 1,200,000 | |||||||
Issuance of common shares for convertible notes redemption | $ 1,193 | 1,594,527 | 1,595,720 | ||||||
Issuance of common shares for convertible notes redemption, shares | [1] | 1,193,064 | |||||||
Common stock issued for management and employees | $ 381 | 580,030 | 539,930 | 1,120,341 | |||||
Common stock issued for management and employees, shares | [1] | 380,500 | |||||||
Net loss from continuing operations for the period | (7,817,289) | (751,937) | (8,569,226) | ||||||
Net loss from discontinued operation for the period | 8,856,042 | (795) | 8,855,247 | ||||||
Foreign currency translation gain (loss) | 128,956 | 9,399 | 138,355 | ||||||
Acquisition of Wintus | $ 1,000 | 2,299,000 | (110,788) | 8,197,473 | 10,386,685 | ||||
Acquisition of Wintus, shares | [1] | 1,000,000 | |||||||
Disposal of Tenet-Jove | (8,904,702) | 4,880,164 | (4,024,538) | ||||||
Forgiveness of subscription receivable | 3,024,000 | 3,024,000 | |||||||
Balance at Dec. 31, 2023 | $ 6,413 | (178,332) | 65,838,872 | 4,198,107 | (30,696,669) | (94,049) | 11,745,288 | 50,819,630 | |
Balance, shares at Dec. 31, 2023 | [1] | 6,412,902 | |||||||
Balance at Sep. 30, 2023 | $ 4,924 | (3,442,352) | 64,134,641 | 4,198,107 | (26,369,227) | (108,567) | 12,448,077 | 50,865,603 | |
Balance, shares at Sep. 30, 2023 | [2] | 4,923,591 | |||||||
Stock issuance | $ 1,200 | 1,438,800 | 1,440,000 | ||||||
Stock issuance, shares | [2] | 1,200,000 | |||||||
Issuance of common shares for convertible notes redemption | $ 289 | 265,431 | 265,720 | ||||||
Issuance of common shares for convertible notes redemption, shares | [2] | 289,311 | |||||||
Common stock issued for management and employees | 240,020 | 240,020 | |||||||
Net loss from continuing operations for the period | (4,327,442) | (728,661) | (5,056,103) | ||||||
Net loss from discontinued operation for the period | |||||||||
Foreign currency translation gain (loss) | 14,518 | 25,872 | 40,390 | ||||||
Forgiveness of subscription receivable | 3,024,000 | 3,024,000 | |||||||
Balance at Dec. 31, 2023 | $ 6,413 | $ (178,332) | $ 65,838,872 | $ 4,198,107 | $ (30,696,669) | $ (94,049) | $ 11,745,288 | $ 50,819,630 | |
Balance, shares at Dec. 31, 2023 | [1] | 6,412,902 | |||||||
[1]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024.[2]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 286,021 | $ (5,214,831) |
Net income (loss) from discontinued operations, net of tax | 8,855,247 | (1,267,012) |
Net loss from continuing operations | (8,569,226) | (3,947,819) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,365,955 | 285 |
Allowance for credit losses and doubtful accounts | 516,063 | 928,220 |
Reversal of inventory reserve | (26,288) | |
Deferred tax benefit | (957,928) | |
Loss from equity method investment | 6,221 | |
Amortization of right of use assets | 37,002 | |
Forgiveness of subscription receivable | 3,024,000 | |
Common stock issued for management and employees | 540,311 | 612,000 |
Amortization of debt issuance and other costs | 366,057 | 355,972 |
Accrued interest expense for convertible notes | 457,056 | 479,641 |
Accrued interest income from third parties | (119,978) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,207,133 | |
Advances to suppliers | (4,961,015) | |
Inventories | 164,612 | |
Other current assets | 42,536 | (221,896) |
Accounts payable | (4,353,578) | |
Contract liabilities | 3,062,228 | |
Other payables and accrued expenses | 528,131 | 65,585 |
Other long-term payable | (35,315) | |
Operating lease liabilities | (23,083) | |
Taxes payable | 66,725 | 109 |
Net cash used in operating activities from continuing operations | (2,548,624) | (1,841,660) |
Net cash provided by (used in) operating activities from discontinued operations | (162,253) | 54,704 |
Net cash used in operating activities | (2,710,877) | (1,786,956) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (33,360) | |
Payment made for loans to third parties | (1,539,715) | |
Repayment from loans to third parties | 50,000 | 10,915,129 |
Repayment from loans to related parties | 490,177 | |
Payment for derivative financial assets | (18,480) | |
Redemption of derivative financial assets | 21,050 | |
Payment made for business acquisition | (9,000,000) | |
Acquisition of subsidiaries, net of cash | 1,003,678 | |
Disposal of VIEs - Tenet-Jove, net of cash | (13,889,752) | |
Net cash provided by (used in) investing activities from continuing operations | (13,916,402) | 1,915,129 |
Net cash provided by investing activities from discontinued operations | 490,456 | |
Net cash provided by (used in) investing activities | (13,916,402) | 2,405,585 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 9,807,483 | |
Repayment of short-term loans | (8,302,815) | |
Repayment of long-term loans | (317,444) | |
Proceeds from issuance of common stock | 2,020,030 | 1,250,000 |
Repayments of advances from related parties | (81,966) | (24,224) |
Net cash provided by financing activities from continuing operations | 3,125,288 | 1,225,776 |
Net cash provided by (used in) financing activities from discontinued operations | 293,180 | (145,785) |
Net cash provided by financing activities | 3,418,468 | 1,079,991 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | 229,252 | (421,244) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (12,979,559) | 1,277,376 |
CASH AND CASH EQUIVALENTS - Beginning of the period | 14,166,759 | 15,165,231 |
CASH AND CASH EQUIVALENTS - End of the period | 1,187,200 | 16,442,607 |
Less: cash and cash equivalents of discontinued operations - Ended of the period | 14,123,179 | |
Cash and cash equivalents of continuing operations - Ended of the period | 1,187,200 | 2,319,428 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for interest | 274,879 | |
SUPPLEMENTAL NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common shares for convertible notes redemption | 1,595,720 | 527,636 |
Issuance of common shares for proceeds received in prior year | 5,000,000 | |
Issuance of common shares for business acquisition | 2,300,000 | 3,097,000 |
Transferal of equity interest of Tenet Jove for business acquisition of Wintus | 37,705,951 | |
Right-of-use assets obtained in exchange for operating lease obligations | 32,737 | 645,711 |
Repayments of loans to third parties offset by other payables | $ 3,156,610 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS Shineco, Inc. (“Shineco” or the “Company”) was incorporated in the State of Delaware on August 20, 1997. The Company is a holding company whose primary purpose is to develop business opportunities in the People’s Republic of China (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”) 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 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 operations On July 23, 2020, Shanghai Jiaying International Trade Co., Ltd. (“Shanghai Jiaying”) was established with registered capital of RMB 200 29.9 90 operations 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 7, 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 a 100 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 16, 2023, Shinkang Technology (Jiangsu) Co., Ltd (“Shinkang”) was established with registered capital of RMB 10.0 1.4 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 9 326,000 0.001 owned 51 51 On May 29, 2023, Life Science HK entered into a stock purchase 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 “Wintus Sellers”), pursuant to which Life Science HK shall acquire 71.42 % equity interest in Wintus (the “Acquisition”). As the consideration for the Acquisition, the Company (a) paid the Wintus Sellers an aggregate cash consideration of $ 2,000,000 ; (b) issued certain shareholders, as listed in the agreement, an aggregate of 1,000,000 shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Wintus Sellers 100 % of the Company’s equity interest in Tenet-Jove. The Company, through its subsidiaries, currently operates three main business segments: 1) Biowin specializes in the development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid Diagnostic and Other Products”); 2) Wintus is engaged in producing, processing and distribution of agricultural products, such as silk and silk fabrics as well as trading of fresh fruit; and (3) Fuzhou Meida operates a health-oriented chain restaurant that specializes in developing healthy meals for people with slow metabolic health and those in recovery from metabolic disorders. Due to the Acquisition mentioned above, the Company’s business segments, that were operated by Tenet-Jove and its subsidiaries, Guangyuan and Zhisheng VIEs which Tenet-Jove is the primary beneficiary of (the “Tenet-Jove Disposal Group”), are classified as discontinued operations on the Company unaudited condensed consolidated financial statements. These business segments are: 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”); and 3) Zhisheng Freight is providing domestic and international logistic services (“Freight Services”). |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 6 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN UNCERTAINTIES | NOTE 2. GOING CONCERN UNCERTAINTIES As disclosed in the Company’s unaudited condensed consolidated financial statements, the Company had recurring net losses of US$ 8,569,226 3,947,819 2,548,624 1,841,660 18,655,945 Despite those negative financial trends, as of December 31, 2023, the Company had the following measurements which the management has taken to enhance the Company’s liquidity: 1) On January 12, 2023, the Board of the Company approved the sales of 72,222 shares of the Company’s common stock to the Company’s employees for gross proceeds of up to US$ 650,000 . As the date of this report, proceeds amounted to US$ 0.5 million has been received by the Company, and the remaining balance of the proceeds is expected to be fully collected by March 31, 2024. 2) On December 22, 2023, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”). Under the Purchase Agreement, the Company agreed to sell to the Investors up to 1,200,000 1.2 1,440,000 The Company has received gross proceeds in full from the Investors, and all of the Shares were issued on December 28, 2023. 3) The Company financed from commercial banks and third parties. As of December 31 14.9 1.8 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 | 6 Months Ended |
Dec. 31, 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 unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended June 30, 2023, which was filed on September 28, 2023. The unaudited condensed consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries. The non-controlling interest represents the minority shareholders’ interest in the Company’s majority owned subsidiaries and VIEs. All intercompany accounts and transactions have been eliminated in consolidation. Consolidation of Variable Interest Entities VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. 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 December 31, 2023 June 30, 2023 Current assets $ - $ 32,532,618 Non-current assets - 2,493,883 Total assets - 35,026,501 Total liabilities - (5,952,438 ) Net assets $ - $ 29,074,063 2023 2022 2023 2022 For the six months ended For the three months ended December 31, 2023 2022 2023 2022 Net sales $ - $ 1,055,723 $ - $ 525,599 Gross loss $ - $ (221,023 ) $ - $ (124,778 ) Income from operations $ 60,426 $ 807,083 $ - $ 419,178 Net income $ 60,426 $ 830,047 $ - $ 430,315 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 unaudited condensed consolidated statements of income (loss) and comprehensive income (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 unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting periods. Significant estimates required to be made by management include, but are not limited to, useful lives of property and equipment, and intangible assets, the recoverability of long-lived assets, assessment of expected credit losses for accounts receivable and other current asset, the valuation allowance of deferred taxes, and inventory reserves. Actual results could differ from those estimates. Revenue Recognition The Company generates its revenue primarily through sales of Luobuma products, other agricultural products, healthy meals 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 revenue 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 revenue 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 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 December 31, 2023 and June 30, 2023, the Company had no Under PRC law s Accounts Receivable, Net Accounts receivable are recorded at net realizable value, consisting of the carrying amount less an allowance for credit losses, as necessary. As of December 31, 2023 and June 30, 2023, the allowance for credit losses from the continuing operations was US$ 1,521,575 946,892 nil 7,206,958 Advances to Suppliers, Net Advances to suppliers consist of payments to suppliers for materials that have not been received. As of December 31, 2023 and June 30, 2023, the allowance for uncollectible advances to suppliers from the continuing operations was US$ 130,998 3,502 nil 10,163,946 Credit Losses On July 1, 2023, the Company adopted Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , “ ” The Company’s account receivables and other receivables included in other current assets on the unaudited condensed consolidated balance sheets are within the scope of ASC Topic 326. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable and other receivables balances, credit-worthiness of the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers and other debtors. The Company also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. ASC Topic 326 is also applicable to loans to third parties that included in the other current assets on the unaudited condensed consolidated balance sheets. Management estimates the allowance for credit losses on loans not sharing similar risk characteristics on an individual basis. The key factors considered when determining the above allowances for credit losses include estimated loan collection schedule, discount rate, and assets and financial performance of the borrowers. Expected credit losses are recorded as general and administrative expenses on the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. 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. 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 December 31, 2023 and June 30, 2023, the inventory reserve from the continuing operations was US$ 31,249 56,655 nil 1,106,649 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 six and three months ended December 31, 2023 and 2022, the Company did not recognize any impairment of its ROU assets. 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 5 50 Machinery equipment 3 10 Motor vehicles 5 15 Office equipment 3 10 Farmland leasehold improvements 12 18 Fixture and furniture 3 Construction in progress includes property and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Land Use Rights, Net According to Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 30 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, ROU assets and investments. For the six and three months ended December 31, 2023 and 2022, the Company did not recognize any impairment of its long-lived assets. Derivative Financial Assets Derivative financial assets are measured at fair value and recognized as either assets or liabilities on the unaudited condensed consolidated balance sheets in either other current or non-current assets or other current liabilities or non-current liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the unaudited condensed consolidated statements of comprehensive income (loss) or in other comprehensive income (loss) depending on the use of the derivatives and whether they qualify for hedge accounting. The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in prices of raw material for silk products. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company does not engage in derivative instruments for speculative or trading purposes. The Company’s derivative financial assets are not qualified for hedge accounting, thus changes in fair value are recognized in “Investment income from derivative financial assets” in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). The cash flows of derivative financial assets are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. Derivative financial assets are presented as net if rights of setoff exist, with all of the following conditions met: (a) each of two parties owes the other determinable amounts; (b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends to set off; and (d) the right of setoff is enforceable at law. The outstanding derivative financial assets as of December 31, 2023 and June 30, 2023 was US$ 3,645 nil 3,534 766 Fair Value of Financial Instruments The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability. The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for 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 December 31, 2023 and June 30, 2023. The Company had not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries from the continuing operations and the discontinued operations at December 31, 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 2020 and thereafter. As of December 31, 2023, the tax years ended December 31, 2019 through December 31, 2023 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 21 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$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss. The balance sheet amounts, with the exception of equity, at December 31, 2023 and June 30, 2023 were translated at 1 0.1412 1 0.1378 1 0.1385 1 0.1433 1 0.1388 1 0.1406 Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option Research and Development Expenses Research and development costs relating to the development of new processes and significant improvements and refinements to existing processes are expensed when incurred in accordance with the FASB ASC 730, “Research and Development.” The research and development costs primarily comprise employee costs, consultant fees, materials and testing costs, and depreciation to property and equipment used in the research and development activities and other miscellaneous expenses. For the six months ended December 31, 2023 and 2022, total research and development expense from continuing operations were approximately US$ 45,916 nil 22,218 nil Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive (loss) in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). Earnings (Loss) per Share The Company computes earnings (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 income (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 six and three months ended December 31, 2023 and 2022. The following table presents a reconciliation of basic and diluted earnings (loss) per share for the six and three months ended December 31, 2023 and 2022: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE 2023 2022 2023 2022 For the six months ended For the three months ended December 31, 2023 2022 2023 2022 Net loss from continuing operations attributable to Shineco $ (7,817,289 ) $ (3,947,819 ) $ (4,327,442 ) $ (1,925,123 ) Net income (loss) from discontinued operations attributable to Shineco 8,856,042 (1,261,776 ) - (844,750 ) Net income (loss) attributable to Shineco 1,038,753 (5,209,595 ) (4,327,442 ) (2,769,873 ) Weighted average shares outstanding - basic and diluted* 4,145,127 1,624,966 5,129,978 1,785,018 Net loss from continuing operations per share of common share Basic and diluted $ (1.89 ) $ (2.43 ) $ (0.84 ) $ (1.08 ) Net earnings (loss) from discontinued operations per share of common share Basic and diluted $ 2.14 $ (0.78 ) $ - $ (0.47 ) Net earnings (loss) per share of common share Basic and diluted $ 0.25 $ (3.21 ) $ (0.84 ) $ (1.55 ) * Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024 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 2022, FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities In March 2023, FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated financial statements. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE, NET The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2023 June 30, 2023 Accounts receivable $ 8,479,760 $ 10,467,260 Less: allowance for credit losses (1,521,575 ) (8,153,850 ) Accounts receivable, net 6,958,185 2,313,410 Less: accounts receivable, net held for discontinued operations - (2,278,824 ) Accounts receivable, net held for continuing operations $ 6,958,185 $ 34,586 Movement of allowance for credit losses is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS December 31, 2023 June 30, 2023 Beginning balance $ 8,153,850 $ 7,317,236 Acquisition of subsidiaries 174,627 451,863 Charge to allowance 244,557 1,050,753 Less: disposal of VIEs (7,116,986 ) - Less: write-off - (62,125 ) Foreign currency translation adjustments 65,527 (603,877 ) Ending balance $ 1,521,575 $ 8,153,850 |
INVENTORIES, NET
INVENTORIES, NET | 6 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 5 – INVENTORIES, NET The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET December 31, 2023 June 30, 2023 Raw materials $ 653,555 $ 315,129 Work-in-process 174,648 16,713,913 Finished goods 1,191,876 1,179,243 Less: inventory reserve (31,249 ) (1,163,304 ) Total inventories, net 1,988,830 17,044,981 Less: inventories, net, held for discontinued operations - (16,720,575 ) Inventories, net, held for continuing operations $ 1,988,830 $ 324,406 Work-in-process mainly 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$ nil 462,936 nil 221,182 |
ADVANCES TO SUPPLIERS, NET
ADVANCES TO SUPPLIERS, NET | 6 Months Ended |
Dec. 31, 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 December 31, 2023 June 30, 2023 Advances to suppliers $ 8,617,047 $ 10,170,145 Less: allowance for doubtful accounts (130,998 ) (10,167,448 ) Advance to suppliers, net 8,486,049 2,697 Less: advance to supplier, net, held for discontinued operations - - Advance to supplier, net, held for continuing operations $ 8,486,049 $ 2,697 Advances to suppliers consist of mainly payments to suppliers for 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 December 31, 2023 June 30, 2023 Beginning balance $ 10,167,448 $ 13,544,627 Acquisition of subsidiaries 6,441 56,831 Charge to (reversal of) allowance 118,607 (2,349,716 ) Less: disposal of VIEs (10,212,837 ) - Less: write-off - (147,172 ) Foreign currency translation adjustments 51,339 (937,122 ) Ending balance $ 130,998 $ 10,167,448 |
OTHER CURRENT ASSETS, NET
OTHER CURRENT ASSETS, NET | 6 Months Ended |
Dec. 31, 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 December 31, 2023 June 30, 2023 Loans to third parties (1) $ 2,589,104 $ 1,481,101 Other receivables (2) 2,564,968 2,629,733 Prepayment for business acquisition (3) - 2,000,000 Short-term deposit 45,709 37,015 Prepaid expenses 1,484 1,629 Subtotal 5,201,265 6,149,478 Less: allowance for credit losses (2,451,957 ) (3,287,793 ) Total other current assets, net 2,749,308 2,861,685 Less: other current assets, net, held for discontinued operations - (34,643 ) Other current assets, net, held for continuing operations $ 2,749,308 $ 2,827,042 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, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of December 31, 2023 and June 30, 2023, the allowance for credit losses was US$ 1,018,722 1,481,101 2) Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses, as well as advances for services to other third party. 3) The amount pertains to prepaid purchase consideration made for acquisition of Wintus. Movement of allowance for credit losses is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS December 31, 2023 June 30, 2023 Beginning balance $ 3,287,793 $ 2,545,565 Acquisition of subsidiaries 36,714 14,504 Charge to allowance 30,354 1,867,474 Less: disposal of VIEs (604,103 ) - Less: write-off - (964,509 ) Foreign currency translation adjustments (298,801 ) (175,241 ) Ending balance $ 2,451,957 $ 3,287,793 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Dec. 31, 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 December 31, 2023 June 30, 2023 Buildings $ 6,309,988 $ 1,064,656 Machinery and equipment 3,226,301 1,132,064 Motor vehicles 185,644 195,183 Office equipment 142,624 142,288 Fixture and furniture 104,638 - Construction in progress 18,224 - Farmland leasehold improvements - 2,898,328 Subtotal 9,987,419 5,432,519 Less: accumulated depreciation and amortization (3,487,508 ) (3,437,327 ) Less: accumulated impairment for property and equipment (91,675 ) (749,299 ) Total property and equipment, net 6,408,236 1,245,893 Less: property and equipment, net, held for discontinued operations - (32,777 ) Property and equipment, net held for continuing operations $ 6,408,236 $ 1,213,116 Depreciation and amortization expense charged to the continuing operations was US$ 243,189 285 109,932 143 Depreciation and amortization expense charged to the discontinued operations was US$ 2,403 164,386 nil 133,562 The management performed evaluation on the impairment of property and equipment periodically. 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. Therefore, farmland leasehold improvements relating to these farmlands were also fully impaired. No impairment loss on property and equipment from the continuing operations and discontinued operations for the six and three months ended December 31, 2023 and 2022, respectively. The Company pledged certain property and equipment for the Company’s bank loans and its related party’s personal loan (see Note 12 and Note 13). Farmland leasehold improvements, net consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS December 31, 2023 June 30, 2023 Blueberry farmland leasehold improvements $ - $ 2,226,624 Yew tree planting base reconstruction - 249,464 Greenhouse renovation - 422,240 Subtotal - 2,898,328 Less: accumulated amortization - (2,238,484 ) Less: impairment for farmland leasehold improvements - (659,844 ) Total farmland leasehold improvements, net $ - $ - |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 6 Months Ended |
Dec. 31, 2023 | |
Land Use Rights Net | |
LAND USE RIGHTS, NET | NOTE 9 - LAND USE RIGHTS, NET Land use rights are recognized at cost less accumulated amortization. According to the Chinese laws and regulations regarding land use rights, land in urban districts is owned by the state, while land in the rural areas and suburban areas, except otherwise provided for by the state, is collectively owned by individuals designated as resident farmers by the state. However, in accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants the user a “land use right” to use the land. The Company has the land use right to use the land for 30 30 SCHEDULE OF LAND USE RIGHTS December 31, 2023 June 30, 2023 Land use rights $ 715,955 $ - Less: accumulated amortization (94,280 ) - Total land use rights, net 621,675 - Less: land use rights, net, held for discontinued operations - - Land use rights, net, held for continuing operations $ 621,675 $ - Amortization expense charged to the continuing operations was US$ 9,355 nil 6,839 nil No The estimated future amortization expenses are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES 12 months ending December 31: 2024 $ 23,865 2025 23,865 2026 23,865 2027 23,865 2028 23,865 Thereafter 502,350 Total $ 621,675 |
LEASES
LEASES | 6 Months Ended |
Dec. 31, 2023 | |
Leases | |
LEASES | NOTE 10 - 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 December 31, 2023 June 30, 2023 ROU lease assets $ 133,318 $ 132,366 Operating lease liabilities – current 126,857 86,978 Operating lease liabilities – non-current 19,563 44,469 Total operating lease liabilities $ 146,420 $ 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 December 31, 2023 and June 30, 2023: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES December 31, 2023 June 30, 2023 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.69 1.92 Weighted average discount rate 4.52 % 4.61 % The table below presents the operating lease related assets and liabilities held for discontinued operations recorded on the balance sheets. December 31, 2023 June 30, 2023 ROU lease assets $ - $ 2,538,037 Operating lease liabilities – current - 551,502 Operating lease liabilities – non-current - 1,404,823 Total operating lease liabilities $ - $ 1,956,325 The weighted average remaining lease terms and discount rates for all of operating leases held for discontinued operations were as follows as of December 31, 2023 and June 30, 2023: December 31, 2023 June 30, 2023 Remaining lease term and discount rate: Weighted average remaining lease term (years) - 5.85 Weighted average discount rate - 4.36 % Rent expenses totaled US$ 86,139 132,409 45,588 64,920 Rent expenses totaled US$ 51,778 253,736 nil 106,785 The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2023: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Continuing operations Remainder of 2024 $ 77,497 2025 58,391 2026 12,288 2027 2,062 Total lease payments 150,238 Less: imputed interest (3,818 ) Present value of lease liabilities $ 146,420 |
ACQUISITION
ACQUISITION | 6 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | NOTE 11 - ACQUISITION 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 unaudited condensed consolidated financial statements since the Acquisition Date. US$ nil 12,060 nil nil 75,134 nil 46,718 Acquisition of 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 9.0 326,000 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 December 31, 2023 is as follows: SCHEDULE OF INTANGIBLE ASSETS Average Useful Life (in Years) Intangible assets $ 12,683,656 10 Less: accumulated amortization (1,268,366 ) Total intangible assets, net 11,415,290 Less: intangible assets, net held for discontinued operations - Total intangible assets, net held for continuing operations $ 11,415,290 The amortization expense of intangible assets was US$$$ 634,182 nil 317,091 nil 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 130,887 nil 99,148 The Company has included the operating results of Biowin in continuing operations in its unaudited condensed consolidated financial statements since the Acquisition Date. US$ 299,122 621,625 163,995 324,650 nil Acquisition of Wintus On May 29, 2023, Life Science HK entered into a stock purchase agreement with Dream Partner, Wintus and the Wintus Sellers, pursuant to which Life Science HK shall acquire 71.42 2,000,000 1,000,000 100 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$ 21,440,360 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 $ 12,507,353 Advances to suppliers, net 3,513,448 Inventories, net 1,782,180 Derivative financial assets 6,212 Other current assets, net 1,426,163 Property and equipment, net 5,407,301 Intangible assets 36,117,041 Operating lease right-of-use assets 1,999 Goodwill 21,440,360 Short-term bank loans (12,021,992 ) Accounts payable (6,686,700 ) Advances from customers (78,677 ) Tax payable (600,742 ) Deferred income (77,007 ) Other current liabilities (2,277,877 ) Long-term bank loans (2,071,093 ) Operating lease liabilities - non-current (1,847 ) Deferred tax liabilities (9,186,376 ) Non-controlling interest (8,197,473 ) Total purchase price for acquisition, net of $ 1,003,678 $ 41,002,273 Total purchase price for acquisition $ 41,002,273 The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of December 31, 2023 is as follows: SCHEDULE OF INTANGIBLE ASSETS Average Useful Life (in Years) Intangible assets $ 35,487,273 10 Less: accumulated amortization (1,478,636 ) Total intangible assets, net 34,008,637 Less: intangible assets, net held for discontinued operations - Total intangible assets, net held for continuing operations $ 34,008,637 The amortization expense of intangible assets was US$ 1,478,636 nil 887,181 nil 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$ 779,606 17,196 nil 17,196 The Company has included the operating results of Wintus in continuing operations in its unaudited condensed consolidated financial statements since the Acquisition Date. US$ 3,642,533 1,138,402 2,131,803 1,979,110 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12 - 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 December 31, 2023 and June 30, 2023, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES December 31, 2023 June 30, 2023 Chongqing Yufan Trading Co., Ltd (“Chongqing Yufan”) $ 407,511 $ - Chongqing Dream Trading Co., Ltd 42,374 - Ren Zhiwei 26,837 - Wintus China Limited 412,379 - Shanghai Gaojing Private Fund Management (a) - 396,938 Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (“Zhongjian Yijia”) (b) - 1,441,485 Zhongjian (Qingdao) International Logistics Development Co., Ltd. (“Zhongjian International”) (c) - 4,534,211 Subtotal 889,101 6,372,634 Less: allowance for credit losses (412,379 ) (1,838,423 ) Total due from related parties, net 476,722 4,534,211 Less: due from related parties, held for discontinued operations - (4,534,211 ) Due from related parties, held for continuing operations $ 476,722 $ - a. The Company owns 32 b. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia to with an amount of US$ 1,642,355 (RMB 11.0 million) for its working capital for one year, with a maturity date of September 16, 2022. The loans bore a fixed annual interest rate of 6.0 % per annum. Upon maturity date, the Company signed a loan extension agreement with this related party to extend the loan repayment by installments, among which, US$ 206,738 (RMB 1.5 million) will be paid by September 30, 2022, US$ 689,128 (RMB 5.0 million) will be paid by December 31, 2022, and the remaining loan and unpaid interest will be paid by June 30, 2023. During the year ended June 30, 2023, the Company received payment of US$ 206,738 (RMB 1.5 million) from this related party. However, due to the impact from COVID-19, the Company did not receive the remaining installment repayment and unpaid interests 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, the total outstanding balance including the principal and interest was amounted to US$ 1,441,485 (approximately 10.5 million) as of June 30, 2023, and the management fully recorded an allowance for doubtful accounts as of June 30, 2023. Interest income was US$ nil 44,203 nil 19,902 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 Interest income was US$ 21,056 129,596 nil 63,541 Due to Related Parties As of December 31, 2023 and June 30, 2023, the Company had related party payables of US$ 1,574,968 48,046 nil 2,431,191 SCHEDULE OF DUE TO RELATED PARTIES December 31, 2023 June 30, 2023 Wang Sai $ 28,846 $ - Li Baolin - 1,930 Zhao Min ( a - 409,345 Zhou Shunfang - 2,019,916 Huang Shanchun 261,795 28,651 Liu Fengming 4,898 4,779 Yan Lixia - 742 Zhan Jiarui 12,202 1,761 Liu Xiqiao 14,641 2,113 Mike Zhao - 10,000 Zhao Pengfei 7,062 - Wang Xiaohui 273,966 - Chi Keung Yan 325,673 - Chongqing Fuling District Renyi Zhilu Silk Industry Co., Ltd 249,371 - Chongqing Huajian Housing Development Co., Ltd (“Chongqing Huajian”) 396,514 - Total due to related parties 1,574,968 2,479,237 Less: due to related parties, held for discontinued operations - (2,431,191 ) Due to related parties, held for continuing operations $ 1,574,968 $ 48,046 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 Interest expenses on loans due to related parties were US$ 1,526 9,320 nil 4,518 Sales to a Related Party The Company made sales of US$ 811,131 680,330 Loan guarantee provided by related parties The Company’s related parties provide guarantee for the Company’s bank loans (see Note 13). Loan guarantee provided to a related party On May 29, 2023, the Company’s Board approved the pledge of real estate property with a net book value of US$ 1,045,883 15,000,000 extend the due date of the principal amount from May 23, 2023 to May 23, 2024 |
LOANS
LOANS | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
LOANS | NOTE 13 – LOANS Short-term loans Loan from a third party On September 27, 2023, the Company entered into a loan agreement with a third party to borrow US$ 800,000 September 29, 2024 15.0 Interest expenses from discontinued operations were both US$ nil 30,247 nil 30,247 nil Short-term bank loans Short-term bank loans consisted of the following: SCHEDULE OF SHORT TERM BANK LOANS Lender December 31, 2023 Maturity Date Int. Rate/Year Jiangnan Rural Commercial Bank- a $ 423,741 2024/3/29 4.80 % Bank of Jiangsu- b 423,741 2024/6/13 4.00 % Bank of China- c 423,741 2024/6/26 3.60 % Chongqing Rural Commercial Bank- d 1,341,846 2024/3/23 4.30 % United Overseas Bank- e 10,021,750 January 2024 - June 2024 4.2 4.4 % Bank of China- f 423,741 2024/2/14 3.65 % Industrial and Commercial Bank of China 423,741 2024/7/25 3.85 % Industrial and Commercial Bank of China- g 635,611 2024/9/22 3.45 % Total short-term bank loans 14,117,912 Less: short-term bank loans, held for discontinued operations - Short-term bank loans, held for continuing operations $ 14,117,912 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by Mr. Liu Fengming, the former 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 former 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 former CEO of the Company, and his wife, Ms. Jie Liang. d. Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd. In addition, Chongqing Huajian pledged its properties to guaranty the Company’s loan from Chongqing Rural Commercial Bank. e. Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian and Chongqing Yufan. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guaranty the Company’s loans from United Overseas Bank. f. Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus (New Star) Enterprises Group (“Chongqing Wintus”). In addition, Chongqing Huajian and another third party pledged their properties to guaranty the Company’s loan from Bank of China. g. Guaranteed by the other subsidiary of the Company, Chongqing Wintus. In addition, the Company’s properties with net book values of US$ 627,721 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 bank loans, held for discontinued operations - Short-term banks 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 former 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 former 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 former CEO of the Company, and his wife, Ms. Jie Liang. Long-term loans Long-term bank loans consisted of the following: SCHEDULE OF LONG TERM BANK LOANS Lender December 31, 2023 Maturity Date Int. Rate/Year Chongqing Rural Commercial Bank-a $ 635,612 2024/9/7 4.85 % Bank of Chongqing-b 1,129,975 2026/7/3 4.00 % Total long-term bank loans $ 1,765,587 Long-term bank loans-current $ 649,736 Long-term bank loans-non-current $ 1,115,851 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui. The loan is also guaranteed by other subsidiaries of the Company, Chongqing Wintus and Wulong Wintus. In addition, the Company’s properties with net book values of US$ 575,278 b. Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family members of Ms. Wang Xiaohui. In addition, the Company’s properties with net book values of US$ 1,530,247 The future maturities of long-term bank loans as of December 31, 2023 were as follows: SCHEDULE OF MATURITIES OF LONG -TERM BANK LOANS Twelve months ending December 31, 2024 $ 649,736 2025 1,115,851 Total long-term bank loans $ 1,765,587 Interest expenses from discontinued operations were both US$ nil 279,711 nil 165,575 nil 4.30 nil 4.32 nil |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Dec. 31, 2023 | |
Convertible Notes Payable | |
CONVERTIBLE NOTES PAYABLE | NOTE 14 - 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 3.0 150,000 20,000 3,500,528.40 June 17, 2024 3,929,498 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 6 1,946,766 7,472,638 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 11,053,443.50 August 23, 2024 11,878,241 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 For the six months ended December 31, 2023 and 2022, a total of US$ 366,057 355,972 199,234 201,569 As of December 31, 2023, shares of the Company’s common stock totaling 1,500,396 9,988,359 14,353,591 14,851,827 498,236 |
TAXES
TAXES | 6 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 15 - 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. The subsidiaries of Wintus in PRC are governed by the Income Tax Laws of the PRC, and are currently subject to tax at a statutory rate of 25% on taxable income, expect certain subsidiaries that are recognized as small low-profit enterprises. According to the relevant PRC tax policies, once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the taxable income not more than RMB3 million is subject to a reduced effective rate of 5% during the period from January 1, 2023 to December 31, 2027 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 For the six months ended December 31, For the three months ended December 31, 2023 2022 2023 2022 Current income tax benefit $ - $ - $ - $ - Deferred income tax benefit (957,928 ) - (706,562 ) - Total income tax benefit (957,928 ) - (706,562 ) - Less: income tax benefit, held for discontinued operations - - - - Income tax benefit, held for continuing operations $ (957,928 ) $ - $ (706,562 ) $ - ii) The components of the deferred tax liability were as follows: SCHEDULE OF FINANCIAL BASIS AND TAX BASIS OF ASSETS AND LIABILITIES December 31, 2023 June 30, 2023 Deferred tax assets: Allowance for credit loss/doubtful accounts $ 324,668 $ 1,360,693 Inventory reserve 1,562 281,237 Net operating loss carry-forwards 1,045,420 1,223,159 Total 1,371,650 2,865,089 Valuation allowance (171,060 ) (2,471,066 ) Total deferred tax assets 1,200,590 394,023 Deferred tax liability: Intangible assets (10,823,814 ) (1,810,615 ) Total deferred tax liability (10,823,814 ) (1,810,615 ) Deferred tax liability, net (9,623,224 ) (1,416,592 ) Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ (9,623,224 ) $ (1,416,592 ) Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE December 31, 2023 June 30, 2023 Beginning balance $ 2,471,066 $ 2,543,366 Acquisition of subsidiaries 158,576 376,085 Disposal of Tenet Jove (2,455,995 ) - Current year reduction (63,923 ) (252,836 ) Exchange difference 61,342 (195,549 ) Ending balance 171,060 2,471,066 Less: valuation allowance, held for discontinued operations - (2,396,504 ) Valuation allowance, held for continuing operations $ 171,060 $ 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. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued In the event that the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of the taxes which are determined to be late or deficient, and 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 December 31, 2023 June 30, 2023 Income tax payable $ 1,239,142 $ 1,048,188 Value added tax payable 266,975 46,451 Business tax and other taxes payable 4,405 3,834 Total tax payable 1,510,522 1,098,473 Less: tax payable, held for discontinued operations - (262,459 ) Tax payable, held for continuing operations $ 1,510,522 $ 836,014 Income tax payable - current portion $ 1,175,377 $ 763,328 Less: income tax payable - current portion, held for discontinued operations - (262,459 ) Income tax payable - current portion, held for continuing operations $ 1,175,377 $ 500,869 Income tax payable - noncurrent portion $ 335,145 $ 335,145 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 335,145 $ 335,145 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 6 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 16 - 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 reverse stock split 0.001 100,000,000 0.001 On April 10, 2021, the Company issued 387,219 32 7,981,204 3,024,000 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 235,450 21.2 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 150,000 60,000 612,000 10.2 On August 11, 2022, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”). Under the Purchase Agreement, the Company agreed to sell to the Investors up to 192,168 9.15 1,758,340 and all of the Shares were issued 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 9.0 326,000 0.001 On January 12, 2023, the Board of the Company approved the sales of 72,222 shares of the Company’s common stock to the Company’s employees for gross proceeds of up to US$ 650,000 . As of December 31, 2023, the subscription receivable was amounted to US$ 178,332 which was recorded on the unaudited condensed consolidated balance sheet, and the proceeds is expected to be fully collected by March 31, 2024. On January 12, 2023, the Board of the Company approved the issuance of 1,000 30,000 30 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 16,778 90,600 5.4 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 113,717 10.5 1.2 On June 21, 2023, the Company entered into a certain stock purchase agreement 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 400,000 5 2.0 On August 30, 2023, the Board of Directors of the Company approved the issuance of shares of common stock pursuant to the Company’s 2023 Equity Incentive Plan (the “2023 Plan”) in the aggregate amount of 380,500 540,310 1.4 On May 29, 2023, Life Science HK entered into a stock purchase agreement with Dream Partner, Wintus and the Wintus Sellers, pursuant to which Life Science HK shall acquire 71.42 2,000,000 1,000,000 100 On December 22, 2023, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”). Under the Purchase Agreement, the Company agreed to sell to the Investors up to 1,200,000 1.2 1,440,000 On February 2, 2024, the Company’s stockholders approved the effectiveness of a 1-for-10 reverse stock split 0.001 150,000,000 0.001 64,129,020 6,412,902 |
CONCENTRATIONS AND RISKS
CONCENTRATIONS AND RISKS | 6 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 17 - 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$ 1,127,743 581,092 nil 13,540,534 During the six and three months ended December 31, 2023 and 2022, almost 100 100 For the six months ended December 31, 2023, three customers accounted for approximately 54 78 65 For the six and three months ended December 31, 2022, no sales were generated from the continuing operations. For the six months ended December 31, 2022, five customers accounted for approximately 87 84 For the six months ended December 31, 2023, one vendor accounted for approximately 21 32 For the six and three months ended December 31, 2022, no purchases were made from the continuing operations. For the six months ended December 31, 2022, two vendors accounted for approximately 100 100 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 - COMMITMENTS AND CONTINGENCIES Legal Contingencies On May 16, 2017, Ms. 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 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 (“Transhare”), 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 10 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. On December 15, 2023, the Company entered into a Settlement Agreement with the defendants and Transhare, pursuant to which the three parties released and forever discharge one another all past and future claims. On December 22, 2023, the Company, together with the defendants and Transhare, filed and signed a stipulation discontinuing action (“Stipulation”) with the Supreme Court of the State of New York. Under the Stipulation, the Supreme Court of the State of New York discontinued the lawsuit filed by the Company together with all cross-claims and counterclaims with prejudice and without costs to any of the parties. The subscription receivable amounted to US$ 3,024,000 was waived by the Company during the six months ended December 31, 2023, and the Company will not retrieve the shares that were issued to the defendants. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 19 - 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 following 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. 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, specializes in the 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 in countries such as Germany, Spain, Italy, Thailand, Japan and others. ● Producing, processing and distribution of agricultural products, such as silk and silk fabrics, as well as trading of fresh fruits (“Other agricultural products”): The operating company of this segment, Wintus, specializes in producing, processing and distributing agricultural products, such as silk and silk fabrics, as well as fresh fruit. The operations of this segment are located in Chongqing, China. Wintus has established approximately 150,000 acres of mulberry orchards in Fuling District and Wulong District of Chongqing. Wintus operates a silk factory in Liangping District, Chongqing, for processing silk products, which are then distributed worldwide through dealers. Its products are sold not only in China but also overseas countries such as the United States, Europe (Germany, France, Italy, Poland), Japan, South Korea, and Southeast Asia (India, Thailand, Indonesia, Bangladesh, and Cambodia), among other countries and regions. In addition to silk products, Wintu also engages in the fruit trading business. It imports fruits from Southeast Asia and other regions, distributing them through dealers to supermarkets and stores nationwide in China. ● Developing and selling healthy meals for people with slow metabolic health and those in recovery from metabolic disorders. (“Healthy meals products”): The operating company of this segment, Fuzhou Meida, operates a health-oriented chain restaurant that focuses on the concept of “improving metabolism through diet.” Fuzhou Meida specializes in developing healthy meals for people with slow metabolic health and those in recovery from metabolic disorders. Fuzhou Meida recently opened its restaurant in Fuzhou city, Fujian Province. The restaurant features an open kitchen and adopts a modern Chinese style, offering a variety of modern Chinese healthy light meals and metabolism-boosting meal sets. The Company plans to gradually establish additional branches in key cities across China, including Beijing, Shanghai, Guangzhou, and other southeastern coastal regions. The following table presents summarized information by segment for the six months ended December 31, 2023: SCHEDULE OF INFORMATION BY SEGMENT For the six months ended December 31, 2023 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ 299,122 $ 3,642,533 $ 11,104 $ 4,439 $ - - $ 3,957,198 Cost of revenue and related business and sales tax 115,494 3,406,546 19,446 4,183 - - 3,545,669 Gross profit (loss) 183,628 235,987 (8,342 ) 256 - - 411,529 Gross profit (loss) % 61.4 % 6.5 % (75.1 )% 5.8 % - - 10.4 % The following table presents summarized information by segment for the six months ended December 31, 2022: For the six months ended December 31, 2022 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ - $ - $ - $ 19,222 $ 823,685 232,038 $ 1,074,945 Cost of revenue and related business and sales tax - - - 8,944 1,115,447 161,299 1,285,690 Gross profit (loss) - - - 10,278 (291,762 ) 70,739 (210,745 ) Gross profit (loss) % - - - 53.5 % (35.4 )% 30.5 % (19.6 )% The following table presents summarized information by segment for the three months ended December 31, 2023: For the three months ended December 31, 2023 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ 163,995 $ 2,131,803 $ 11,104 $ - $ - - $ 2,306,902 Cost of revenue and related business and sales tax 71,718 1,903,420 19,446 - - - 1,994,584 Gross profit (loss) 92,277 228,383 (8,342 ) - - - 312,318 Gross profit (loss) % 56.3 % 10.7 % (75.1 )% - - - 13.5 % The following table presents summarized information by segment for the three months ended December 31, 2022: For the three months ended December 31, 2022 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ - $ - $ - $ 13,648 $ 395,089 130,510 $ 539,247 Cost of revenue and related business and sales tax - - - 8,738 566,505 83,872 659,115 Gross profit (loss) - - - 4,910 (171,416 ) 46,638 (119,868 ) Gross profit (loss) % - - - 36.0 % (43.4 )% 35.7 % (22.2 )% Total assets as of December 31, 2023 and June 30, 2023 were as follows: December 31, 2023 June 30, 2023 Luobuma products $ - $ 4,717,588 Other agricultural products 83,160,963 33,408,143 Freight services - 4,964,012 Rapid diagnostic and other products 19,018,974 20,379,396 Healthy meals products 273,965 - Total assets 102,453,902 63,469,139 Less: total assets held for discontinued operations - (39,684,744 ) Total assets, held for continuing operations $ 102,453,902 $ 23,784,395 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 20 - DISCONTINUED OPERATIONS On May 29, 2023, Life Science HK entered into a stock purchase agreement with Dream Partner, Wintus and certain shareholders of Dream Partner (the “Sellers”), pursuant to which Life Science HK shall acquire 71.42 2,000,000 1,000,000 100 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 unaudited condensed consolidated balance sheet as of December 31, 2023 and the consolidated balance sheet as of June 30, 2023. The results of operations of Tenet-Jove Disposal Group have been reclassified to “net income (loss) from discontinued operations” in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) for the six and three months ended December 31, 2023 and 2022. The carrying amount of the major classes of assets and liabilities of discontinued operations as of December 31, 2023 and June 30, 2023 consist of the following: SCHEDULE OF DISCONTINUED OPERATIONS December 31, 2023 June 30, 2023 Assets of discontinued operation: Current assets: Cash $ - $ 13,540,793 Accounts receivables, net - 2,278,824 Due from related parties - 4,534,211 Inventories, net - 16,720,575 Other current assets, net - 34,643 Total current assets of discontinued operation - 37,109,046 Property and equipment, net - 32,777 Long-term deposit and other noncurrent assets - 4,884 Operating lease right-of-use assets - 2,538,037 Total assets of discontinued operation $ - $ 39,684,744 Liabilities of discontinued operation: Current liabilities: Accounts payable $ - $ 143,173 Due to related parties - 2,431,191 Other payables and accrued expenses - 2,005,519 Operating lease liabilities - current - 551,502 Taxes payable - 262,459 Total current liabilities of discontinued operation - 5,393,844 Operating lease liabilities - non-current - 1,404,823 Total liabilities of discontinued operation $ - $ 6,798,667 The summarized operating result of discontinued operations included in the Company’s unaudited condensed consolidated statements of operations consist of the following: SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS 2023 2022 2023 2022 For the Six Months Ended December 31, For the Three Months Ended December 31, 2023 2022 2023 2022 REVENUE $ 4,439 $ 1,074,945 $ - $ 539,247 COST OF REVENUE Cost of products 4,178 822,752 - 437,931 Stock written off due to natural disaster - 462,936 - 221,182 Business and sales related tax 5 2 - 2 Total cost of revenue 4,183 1,285,690 - 659,115 GROSS PROFIT (LOSS) 256 (210,745 ) - (119,868 ) OPERATING EXPENSES General and administrative expenses 41,033 909,076 - 834,518 Selling expenses 28,947 18,551 - 5,450 Total operating expenses 69,980 927,627 - 839,968 LOSS FROM OPERATIONS (69,724 ) (1,138,372 ) - (959,836 ) OTHER EXPENSE Other expense, net - 28,758 - 14,023 Interest income (expense), net 20,269 (157,398 ) - 98,425 Total other income (expense) 20,269 (128,640 ) - 112,448 LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS (49,455 ) (1,267,012 ) - (847,388 ) BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - - - - LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX (49,455 ) (1,267,012 ) - (847,388 ) INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS 8,904,702 - - - NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS 8,855,247 (1,267,012 ) - (847,388 ) Net loss attributable to non-controlling interest (795 ) (5,236 ) - (2,638 ) NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ 8,856,042 $ (1,261,776 ) $ - $ (844,750 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 - SUBSEQUENT EVENTS On February 2, 2024, the Company’s stockholders approved the effectiveness of a 1-for-10 reverse stock split 0.001 150,000,000 0.001 64,129,020 6,412,902 These unaudited condensed consolidated financial statements were approved by management and available for issuance on February 8, 2024, and the Company has evaluated subsequent events through this date. No subsequent events required adjustments to or disclosure in these unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended June 30, 2023, which was filed on September 28, 2023. The unaudited condensed consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries. The non-controlling interest represents the minority shareholders’ interest in the Company’s majority owned subsidiaries and VIEs. All intercompany accounts and transactions have been eliminated in consolidation. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. 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 December 31, 2023 June 30, 2023 Current assets $ - $ 32,532,618 Non-current assets - 2,493,883 Total assets - 35,026,501 Total liabilities - (5,952,438 ) Net assets $ - $ 29,074,063 2023 2022 2023 2022 For the six months ended For the three months ended December 31, 2023 2022 2023 2022 Net sales $ - $ 1,055,723 $ - $ 525,599 Gross loss $ - $ (221,023 ) $ - $ (124,778 ) Income from operations $ 60,426 $ 807,083 $ - $ 419,178 Net income $ 60,426 $ 830,047 $ - $ 430,315 |
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 unaudited condensed consolidated statements of income (loss) and comprehensive income (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 unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting periods. Significant estimates required to be made by management include, but are not limited to, useful lives of property and equipment, and intangible assets, the recoverability of long-lived assets, assessment of expected credit losses for accounts receivable and other current asset, the valuation allowance of deferred taxes, and inventory reserves. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company generates its revenue primarily through sales of Luobuma products, other agricultural products, healthy meals 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 revenue 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 revenue 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 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 December 31, 2023 and June 30, 2023, the Company had no Under PRC law s |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are recorded at net realizable value, consisting of the carrying amount less an allowance for credit losses, as necessary. As of December 31, 2023 and June 30, 2023, the allowance for credit losses from the continuing operations was US$ 1,521,575 946,892 nil 7,206,958 |
Advances to Suppliers, Net | Advances to Suppliers, Net Advances to suppliers consist of payments to suppliers for materials that have not been received. As of December 31, 2023 and June 30, 2023, the allowance for uncollectible advances to suppliers from the continuing operations was US$ 130,998 3,502 nil 10,163,946 |
Credit Losses | Credit Losses On July 1, 2023, the Company adopted Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , “ ” The Company’s account receivables and other receivables included in other current assets on the unaudited condensed consolidated balance sheets are within the scope of ASC Topic 326. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable and other receivables balances, credit-worthiness of the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers and other debtors. The Company also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. ASC Topic 326 is also applicable to loans to third parties that included in the other current assets on the unaudited condensed consolidated balance sheets. Management estimates the allowance for credit losses on loans not sharing similar risk characteristics on an individual basis. The key factors considered when determining the above allowances for credit losses include estimated loan collection schedule, discount rate, and assets and financial performance of the borrowers. Expected credit losses are recorded as general and administrative expenses on the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. |
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. 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 December 31, 2023 and June 30, 2023, the inventory reserve from the continuing operations was US$ 31,249 56,655 nil 1,106,649 |
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 six and three months ended December 31, 2023 and 2022, the Company did not recognize any impairment of its ROU assets. |
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 5 50 Machinery equipment 3 10 Motor vehicles 5 15 Office equipment 3 10 Farmland leasehold improvements 12 18 Fixture and furniture 3 Construction in progress includes property and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. |
Land Use Rights, Net | Land Use Rights, Net According to Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 30 |
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, ROU assets and investments. For the six and three months ended December 31, 2023 and 2022, the Company did not recognize any impairment of its long-lived assets. |
Derivative Financial Assets | Derivative Financial Assets Derivative financial assets are measured at fair value and recognized as either assets or liabilities on the unaudited condensed consolidated balance sheets in either other current or non-current assets or other current liabilities or non-current liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the unaudited condensed consolidated statements of comprehensive income (loss) or in other comprehensive income (loss) depending on the use of the derivatives and whether they qualify for hedge accounting. The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in prices of raw material for silk products. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company does not engage in derivative instruments for speculative or trading purposes. The Company’s derivative financial assets are not qualified for hedge accounting, thus changes in fair value are recognized in “Investment income from derivative financial assets” in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). The cash flows of derivative financial assets are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. Derivative financial assets are presented as net if rights of setoff exist, with all of the following conditions met: (a) each of two parties owes the other determinable amounts; (b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends to set off; and (d) the right of setoff is enforceable at law. The outstanding derivative financial assets as of December 31, 2023 and June 30, 2023 was US$ 3,645 nil 3,534 766 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability. The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for 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 December 31, 2023 and June 30, 2023. The Company had not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries from the continuing operations and the discontinued operations at December 31, 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 2020 and thereafter. As of December 31, 2023, the tax years ended December 31, 2019 through December 31, 2023 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 21 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$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss. The balance sheet amounts, with the exception of equity, at December 31, 2023 and June 30, 2023 were translated at 1 0.1412 1 0.1378 1 0.1385 1 0.1433 1 0.1388 1 0.1406 |
Convertible Notes Payable | Convertible Notes Payable In accordance with ASC 470 Debt with conversion and other option |
Research and Development Expenses | Research and Development Expenses Research and development costs relating to the development of new processes and significant improvements and refinements to existing processes are expensed when incurred in accordance with the FASB ASC 730, “Research and Development.” The research and development costs primarily comprise employee costs, consultant fees, materials and testing costs, and depreciation to property and equipment used in the research and development activities and other miscellaneous expenses. For the six months ended December 31, 2023 and 2022, total research and development expense from continuing operations were approximately US$ 45,916 nil 22,218 nil |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive (loss) in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). |
Earnings (Loss) per Share | Earnings (Loss) per Share The Company computes earnings (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 income (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 six and three months ended December 31, 2023 and 2022. The following table presents a reconciliation of basic and diluted earnings (loss) per share for the six and three months ended December 31, 2023 and 2022: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE 2023 2022 2023 2022 For the six months ended For the three months ended December 31, 2023 2022 2023 2022 Net loss from continuing operations attributable to Shineco $ (7,817,289 ) $ (3,947,819 ) $ (4,327,442 ) $ (1,925,123 ) Net income (loss) from discontinued operations attributable to Shineco 8,856,042 (1,261,776 ) - (844,750 ) Net income (loss) attributable to Shineco 1,038,753 (5,209,595 ) (4,327,442 ) (2,769,873 ) Weighted average shares outstanding - basic and diluted* 4,145,127 1,624,966 5,129,978 1,785,018 Net loss from continuing operations per share of common share Basic and diluted $ (1.89 ) $ (2.43 ) $ (0.84 ) $ (1.08 ) Net earnings (loss) from discontinued operations per share of common share Basic and diluted $ 2.14 $ (0.78 ) $ - $ (0.47 ) Net earnings (loss) per share of common share Basic and diluted $ 0.25 $ (3.21 ) $ (0.84 ) $ (1.55 ) * Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024 |
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 2022, FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities In March 2023, FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION | SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION December 31, 2023 June 30, 2023 Current assets $ - $ 32,532,618 Non-current assets - 2,493,883 Total assets - 35,026,501 Total liabilities - (5,952,438 ) Net assets $ - $ 29,074,063 2023 2022 2023 2022 For the six months ended For the three months ended December 31, 2023 2022 2023 2022 Net sales $ - $ 1,055,723 $ - $ 525,599 Gross loss $ - $ (221,023 ) $ - $ (124,778 ) Income from operations $ 60,426 $ 807,083 $ - $ 419,178 Net income $ 60,426 $ 830,047 $ - $ 430,315 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Estimated useful lives Buildings 5 50 Machinery equipment 3 10 Motor vehicles 5 15 Office equipment 3 10 Farmland leasehold improvements 12 18 Fixture and furniture 3 |
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE | The following table presents a reconciliation of basic and diluted earnings (loss) per share for the six and three months ended December 31, 2023 and 2022: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE 2023 2022 2023 2022 For the six months ended For the three months ended December 31, 2023 2022 2023 2022 Net loss from continuing operations attributable to Shineco $ (7,817,289 ) $ (3,947,819 ) $ (4,327,442 ) $ (1,925,123 ) Net income (loss) from discontinued operations attributable to Shineco 8,856,042 (1,261,776 ) - (844,750 ) Net income (loss) attributable to Shineco 1,038,753 (5,209,595 ) (4,327,442 ) (2,769,873 ) Weighted average shares outstanding - basic and diluted* 4,145,127 1,624,966 5,129,978 1,785,018 Net loss from continuing operations per share of common share Basic and diluted $ (1.89 ) $ (2.43 ) $ (0.84 ) $ (1.08 ) Net earnings (loss) from discontinued operations per share of common share Basic and diluted $ 2.14 $ (0.78 ) $ - $ (0.47 ) Net earnings (loss) per share of common share Basic and diluted $ 0.25 $ (3.21 ) $ (0.84 ) $ (1.55 ) * Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | The accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2023 June 30, 2023 Accounts receivable $ 8,479,760 $ 10,467,260 Less: allowance for credit losses (1,521,575 ) (8,153,850 ) Accounts receivable, net 6,958,185 2,313,410 Less: accounts receivable, net held for discontinued operations - (2,278,824 ) Accounts receivable, net held for continuing operations $ 6,958,185 $ 34,586 |
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movement of allowance for credit losses is as follows: SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS December 31, 2023 June 30, 2023 Beginning balance $ 8,153,850 $ 7,317,236 Acquisition of subsidiaries 174,627 451,863 Charge to allowance 244,557 1,050,753 Less: disposal of VIEs (7,116,986 ) - Less: write-off - (62,125 ) Foreign currency translation adjustments 65,527 (603,877 ) Ending balance $ 1,521,575 $ 8,153,850 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES, NET | The inventories, net consisted of the following: SCHEDULE OF INVENTORIES, NET December 31, 2023 June 30, 2023 Raw materials $ 653,555 $ 315,129 Work-in-process 174,648 16,713,913 Finished goods 1,191,876 1,179,243 Less: inventory reserve (31,249 ) (1,163,304 ) Total inventories, net 1,988,830 17,044,981 Less: inventories, net, held for discontinued operations - (16,720,575 ) Inventories, net, held for continuing operations $ 1,988,830 $ 324,406 |
ADVANCES TO SUPPLIERS, NET (Tab
ADVANCES TO SUPPLIERS, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Advances To Suppliers Net | |
SCHEDULE OF ADVANCES TO SUPPLIERS | The advances to suppliers, net consisted of the following: SCHEDULE OF ADVANCES TO SUPPLIERS December 31, 2023 June 30, 2023 Advances to suppliers $ 8,617,047 $ 10,170,145 Less: allowance for doubtful accounts (130,998 ) (10,167,448 ) Advance to suppliers, net 8,486,049 2,697 Less: advance to supplier, net, held for discontinued operations - - Advance to supplier, net, held for continuing operations $ 8,486,049 $ 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 December 31, 2023 June 30, 2023 Beginning balance $ 10,167,448 $ 13,544,627 Acquisition of subsidiaries 6,441 56,831 Charge to (reversal of) allowance 118,607 (2,349,716 ) Less: disposal of VIEs (10,212,837 ) - Less: write-off - (147,172 ) Foreign currency translation adjustments 51,339 (937,122 ) Ending balance $ 130,998 $ 10,167,448 |
OTHER CURRENT ASSETS, NET (Tabl
OTHER CURRENT ASSETS, NET (Tables) | 6 Months Ended |
Dec. 31, 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 December 31, 2023 June 30, 2023 Loans to third parties (1) $ 2,589,104 $ 1,481,101 Other receivables (2) 2,564,968 2,629,733 Prepayment for business acquisition (3) - 2,000,000 Short-term deposit 45,709 37,015 Prepaid expenses 1,484 1,629 Subtotal 5,201,265 6,149,478 Less: allowance for credit losses (2,451,957 ) (3,287,793 ) Total other current assets, net 2,749,308 2,861,685 Less: other current assets, net, held for discontinued operations - (34,643 ) Other current assets, net, held for continuing operations $ 2,749,308 $ 2,827,042 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, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of December 31, 2023 and June 30, 2023, the allowance for credit losses was US$ 1,018,722 1,481,101 2) Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses, as well as advances for services to other third party. 3) The amount pertains to prepaid purchase consideration made for acquisition of Wintus. |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movement of allowance for credit losses is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS December 31, 2023 June 30, 2023 Beginning balance $ 3,287,793 $ 2,545,565 Acquisition of subsidiaries 36,714 14,504 Charge to allowance 30,354 1,867,474 Less: disposal of VIEs (604,103 ) - Less: write-off - (964,509 ) Foreign currency translation adjustments (298,801 ) (175,241 ) Ending balance $ 2,451,957 $ 3,287,793 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2023 June 30, 2023 Buildings $ 6,309,988 $ 1,064,656 Machinery and equipment 3,226,301 1,132,064 Motor vehicles 185,644 195,183 Office equipment 142,624 142,288 Fixture and furniture 104,638 - Construction in progress 18,224 - Farmland leasehold improvements - 2,898,328 Subtotal 9,987,419 5,432,519 Less: accumulated depreciation and amortization (3,487,508 ) (3,437,327 ) Less: accumulated impairment for property and equipment (91,675 ) (749,299 ) Total property and equipment, net 6,408,236 1,245,893 Less: property and equipment, net, held for discontinued operations - (32,777 ) Property and equipment, net held for continuing operations $ 6,408,236 $ 1,213,116 |
SCHEDULE OF LEASEHOLD IMPROVEMENTS | Farmland leasehold improvements, net consisted of following: SCHEDULE OF LEASEHOLD IMPROVEMENTS December 31, 2023 June 30, 2023 Blueberry farmland leasehold improvements $ - $ 2,226,624 Yew tree planting base reconstruction - 249,464 Greenhouse renovation - 422,240 Subtotal - 2,898,328 Less: accumulated amortization - (2,238,484 ) Less: impairment for farmland leasehold improvements - (659,844 ) Total farmland leasehold improvements, net $ - $ - |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Land Use Rights Net | |
SCHEDULE OF LAND USE RIGHTS | SCHEDULE OF LAND USE RIGHTS December 31, 2023 June 30, 2023 Land use rights $ 715,955 $ - Less: accumulated amortization (94,280 ) - Total land use rights, net 621,675 - Less: land use rights, net, held for discontinued operations - - Land use rights, net, held for continuing operations $ 621,675 $ - |
SCHEDULE OF FUTURE AMORTIZATION EXPENSES | SCHEDULE OF FUTURE AMORTIZATION EXPENSES 12 months ending December 31: 2024 $ 23,865 2025 23,865 2026 23,865 2027 23,865 2028 23,865 Thereafter 502,350 Total $ 621,675 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 31, 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 December 31, 2023 June 30, 2023 ROU lease assets $ 133,318 $ 132,366 Operating lease liabilities – current 126,857 86,978 Operating lease liabilities – non-current 19,563 44,469 Total operating lease liabilities $ 146,420 $ 131,447 December 31, 2023 June 30, 2023 ROU lease assets $ - $ 2,538,037 Operating lease liabilities – current - 551,502 Operating lease liabilities – non-current - 1,404,823 Total operating lease liabilities $ - $ 1,956,325 |
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 December 31, 2023 and June 30, 2023: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES December 31, 2023 June 30, 2023 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.69 1.92 Weighted average discount rate 4.52 % 4.61 % December 31, 2023 June 30, 2023 Remaining lease term and discount rate: Weighted average remaining lease term (years) - 5.85 Weighted average discount rate - 4.36 % |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2023: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Continuing operations Remainder of 2024 $ 77,497 2025 58,391 2026 12,288 2027 2,062 Total lease payments 150,238 Less: imputed interest (3,818 ) Present value of lease liabilities $ 146,420 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 6 Months Ended |
Dec. 31, 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 |
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 |
SCHEDULE OF INTANGIBLE ASSETS | The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of December 31, 2023 is as follows: SCHEDULE OF INTANGIBLE ASSETS Average Useful Life (in Years) Intangible assets $ 12,683,656 10 Less: accumulated amortization (1,268,366 ) Total intangible assets, net 11,415,290 Less: intangible assets, net held for discontinued operations - Total intangible assets, net held for continuing operations $ 11,415,290 |
Chongqing Wintus Group [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 $ 12,507,353 Advances to suppliers, net 3,513,448 Inventories, net 1,782,180 Derivative financial assets 6,212 Other current assets, net 1,426,163 Property and equipment, net 5,407,301 Intangible assets 36,117,041 Operating lease right-of-use assets 1,999 Goodwill 21,440,360 Short-term bank loans (12,021,992 ) Accounts payable (6,686,700 ) Advances from customers (78,677 ) Tax payable (600,742 ) Deferred income (77,007 ) Other current liabilities (2,277,877 ) Long-term bank loans (2,071,093 ) Operating lease liabilities - non-current (1,847 ) Deferred tax liabilities (9,186,376 ) Non-controlling interest (8,197,473 ) Total purchase price for acquisition, net of $ 1,003,678 $ 41,002,273 Total purchase price for acquisition $ 41,002,273 |
SCHEDULE OF INTANGIBLE ASSETS | The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of December 31, 2023 is as follows: SCHEDULE OF INTANGIBLE ASSETS Average Useful Life (in Years) Intangible assets $ 35,487,273 10 Less: accumulated amortization (1,478,636 ) Total intangible assets, net 34,008,637 Less: intangible assets, net held for discontinued operations - Total intangible assets, net held for continuing operations $ 34,008,637 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF DUE FROM RELATED PARTIES | As of December 31, 2023 and June 30, 2023, the outstanding amounts due from related parties consisted of the following: SCHEDULE OF DUE FROM RELATED PARTIES December 31, 2023 June 30, 2023 Chongqing Yufan Trading Co., Ltd (“Chongqing Yufan”) $ 407,511 $ - Chongqing Dream Trading Co., Ltd 42,374 - Ren Zhiwei 26,837 - Wintus China Limited 412,379 - Shanghai Gaojing Private Fund Management (a) - 396,938 Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (“Zhongjian Yijia”) (b) - 1,441,485 Zhongjian (Qingdao) International Logistics Development Co., Ltd. (“Zhongjian International”) (c) - 4,534,211 Subtotal 889,101 6,372,634 Less: allowance for credit losses (412,379 ) (1,838,423 ) Total due from related parties, net 476,722 4,534,211 Less: due from related parties, held for discontinued operations - (4,534,211 ) Due from related parties, held for continuing operations $ 476,722 $ - a. The Company owns 32 b. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia to with an amount of US$ 1,642,355 (RMB 11.0 million) for its working capital for one year, with a maturity date of September 16, 2022. The loans bore a fixed annual interest rate of 6.0 % per annum. Upon maturity date, the Company signed a loan extension agreement with this related party to extend the loan repayment by installments, among which, US$ 206,738 (RMB 1.5 million) will be paid by September 30, 2022, US$ 689,128 (RMB 5.0 million) will be paid by December 31, 2022, and the remaining loan and unpaid interest will be paid by June 30, 2023. During the year ended June 30, 2023, the Company received payment of US$ 206,738 (RMB 1.5 million) from this related party. However, due to the impact from COVID-19, the Company did not receive the remaining installment repayment and unpaid interests 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, the total outstanding balance including the principal and interest was amounted to US$ 1,441,485 (approximately 10.5 million) as of June 30, 2023, and the management fully recorded an allowance for doubtful accounts as of June 30, 2023. Interest income was US$ nil 44,203 nil 19,902 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 Interest income was US$ 21,056 129,596 nil 63,541 |
SCHEDULE OF DUE TO RELATED PARTIES | SCHEDULE OF DUE TO RELATED PARTIES December 31, 2023 June 30, 2023 Wang Sai $ 28,846 $ - Li Baolin - 1,930 Zhao Min ( a - 409,345 Zhou Shunfang - 2,019,916 Huang Shanchun 261,795 28,651 Liu Fengming 4,898 4,779 Yan Lixia - 742 Zhan Jiarui 12,202 1,761 Liu Xiqiao 14,641 2,113 Mike Zhao - 10,000 Zhao Pengfei 7,062 - Wang Xiaohui 273,966 - Chi Keung Yan 325,673 - Chongqing Fuling District Renyi Zhilu Silk Industry Co., Ltd 249,371 - Chongqing Huajian Housing Development Co., Ltd (“Chongqing Huajian”) 396,514 - Total due to related parties 1,574,968 2,479,237 Less: due to related parties, held for discontinued operations - (2,431,191 ) Due to related parties, held for continuing operations $ 1,574,968 $ 48,046 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 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Dec. 31, 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 December 31, 2023 Maturity Date Int. Rate/Year Jiangnan Rural Commercial Bank- a $ 423,741 2024/3/29 4.80 % Bank of Jiangsu- b 423,741 2024/6/13 4.00 % Bank of China- c 423,741 2024/6/26 3.60 % Chongqing Rural Commercial Bank- d 1,341,846 2024/3/23 4.30 % United Overseas Bank- e 10,021,750 January 2024 - June 2024 4.2 4.4 % Bank of China- f 423,741 2024/2/14 3.65 % Industrial and Commercial Bank of China 423,741 2024/7/25 3.85 % Industrial and Commercial Bank of China- g 635,611 2024/9/22 3.45 % Total short-term bank loans 14,117,912 Less: short-term bank loans, held for discontinued operations - Short-term bank loans, held for continuing operations $ 14,117,912 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by Mr. Liu Fengming, the former 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 former 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 former CEO of the Company, and his wife, Ms. Jie Liang. d. Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd. In addition, Chongqing Huajian pledged its properties to guaranty the Company’s loan from Chongqing Rural Commercial Bank. e. Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian and Chongqing Yufan. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guaranty the Company’s loans from United Overseas Bank. f. Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus (New Star) Enterprises Group (“Chongqing Wintus”). In addition, Chongqing Huajian and another third party pledged their properties to guaranty the Company’s loan from Bank of China. g. Guaranteed by the other subsidiary of the Company, Chongqing Wintus. In addition, the Company’s properties with net book values of US$ 627,721 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 bank loans, held for discontinued operations - Short-term banks 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 former 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 former 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 former CEO of the Company, and his wife, Ms. Jie Liang. |
SCHEDULE OF LONG TERM BANK LOANS | Long-term bank loans consisted of the following: SCHEDULE OF LONG TERM BANK LOANS Lender December 31, 2023 Maturity Date Int. Rate/Year Chongqing Rural Commercial Bank-a $ 635,612 2024/9/7 4.85 % Bank of Chongqing-b 1,129,975 2026/7/3 4.00 % Total long-term bank loans $ 1,765,587 Long-term bank loans-current $ 649,736 Long-term bank loans-non-current $ 1,115,851 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui. The loan is also guaranteed by other subsidiaries of the Company, Chongqing Wintus and Wulong Wintus. In addition, the Company’s properties with net book values of US$ 575,278 b. Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family members of Ms. Wang Xiaohui. In addition, the Company’s properties with net book values of US$ 1,530,247 |
SCHEDULE OF MATURITIES OF LONG -TERM BANK LOANS | The future maturities of long-term bank loans as of December 31, 2023 were as follows: SCHEDULE OF MATURITIES OF LONG -TERM BANK LOANS Twelve months ending December 31, 2024 $ 649,736 2025 1,115,851 Total long-term bank loans $ 1,765,587 |
TAXES (Tables)
TAXES (Tables) | 6 Months Ended |
Dec. 31, 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 For the six months ended December 31, For the three months ended December 31, 2023 2022 2023 2022 Current income tax benefit $ - $ - $ - $ - Deferred income tax benefit (957,928 ) - (706,562 ) - Total income tax benefit (957,928 ) - (706,562 ) - Less: income tax benefit, held for discontinued operations - - - - Income tax benefit, held for continuing operations $ (957,928 ) $ - $ (706,562 ) $ - |
SCHEDULE OF FINANCIAL BASIS AND TAX BASIS OF ASSETS AND LIABILITIES | ii) The components of the deferred tax liability were as follows: SCHEDULE OF FINANCIAL BASIS AND TAX BASIS OF ASSETS AND LIABILITIES December 31, 2023 June 30, 2023 Deferred tax assets: Allowance for credit loss/doubtful accounts $ 324,668 $ 1,360,693 Inventory reserve 1,562 281,237 Net operating loss carry-forwards 1,045,420 1,223,159 Total 1,371,650 2,865,089 Valuation allowance (171,060 ) (2,471,066 ) Total deferred tax assets 1,200,590 394,023 Deferred tax liability: Intangible assets (10,823,814 ) (1,810,615 ) Total deferred tax liability (10,823,814 ) (1,810,615 ) Deferred tax liability, net (9,623,224 ) (1,416,592 ) Less: deferred tax liability, net, held for discontinued operations - - Deferred tax liability, net, held for continuing operations $ (9,623,224 ) $ (1,416,592 ) |
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE | Movement of the valuation allowance: SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE December 31, 2023 June 30, 2023 Beginning balance $ 2,471,066 $ 2,543,366 Acquisition of subsidiaries 158,576 376,085 Disposal of Tenet Jove (2,455,995 ) - Current year reduction (63,923 ) (252,836 ) Exchange difference 61,342 (195,549 ) Ending balance 171,060 2,471,066 Less: valuation allowance, held for discontinued operations - (2,396,504 ) Valuation allowance, held for continuing operations $ 171,060 $ 74,562 |
SCHEDULE OF TAXES PAYABLE | Taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE December 31, 2023 June 30, 2023 Income tax payable $ 1,239,142 $ 1,048,188 Value added tax payable 266,975 46,451 Business tax and other taxes payable 4,405 3,834 Total tax payable 1,510,522 1,098,473 Less: tax payable, held for discontinued operations - (262,459 ) Tax payable, held for continuing operations $ 1,510,522 $ 836,014 Income tax payable - current portion $ 1,175,377 $ 763,328 Less: income tax payable - current portion, held for discontinued operations - (262,459 ) Income tax payable - current portion, held for continuing operations $ 1,175,377 $ 500,869 Income tax payable - noncurrent portion $ 335,145 $ 335,145 Less: income tax payable - noncurrent portion, held for discontinued operations - - Income tax payable - noncurrent portion, held for continuing operations $ 335,145 $ 335,145 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF INFORMATION BY SEGMENT | The following table presents summarized information by segment for the six months ended December 31, 2023: SCHEDULE OF INFORMATION BY SEGMENT For the six months ended December 31, 2023 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ 299,122 $ 3,642,533 $ 11,104 $ 4,439 $ - - $ 3,957,198 Cost of revenue and related business and sales tax 115,494 3,406,546 19,446 4,183 - - 3,545,669 Gross profit (loss) 183,628 235,987 (8,342 ) 256 - - 411,529 Gross profit (loss) % 61.4 % 6.5 % (75.1 )% 5.8 % - - 10.4 % The following table presents summarized information by segment for the six months ended December 31, 2022: For the six months ended December 31, 2022 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ - $ - $ - $ 19,222 $ 823,685 232,038 $ 1,074,945 Cost of revenue and related business and sales tax - - - 8,944 1,115,447 161,299 1,285,690 Gross profit (loss) - - - 10,278 (291,762 ) 70,739 (210,745 ) Gross profit (loss) % - - - 53.5 % (35.4 )% 30.5 % (19.6 )% The following table presents summarized information by segment for the three months ended December 31, 2023: For the three months ended December 31, 2023 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ 163,995 $ 2,131,803 $ 11,104 $ - $ - - $ 2,306,902 Cost of revenue and related business and sales tax 71,718 1,903,420 19,446 - - - 1,994,584 Gross profit (loss) 92,277 228,383 (8,342 ) - - - 312,318 Gross profit (loss) % 56.3 % 10.7 % (75.1 )% - - - 13.5 % The following table presents summarized information by segment for the three months ended December 31, 2022: For the three months ended December 31, 2022 Continuing Operations Discontinued Operations Rapid diagnostic and other Other agricultural Healthy meals Luobuma Other agricultural Freight products products products products products services Total Segment revenue $ - $ - $ - $ 13,648 $ 395,089 130,510 $ 539,247 Cost of revenue and related business and sales tax - - - 8,738 566,505 83,872 659,115 Gross profit (loss) - - - 4,910 (171,416 ) 46,638 (119,868 ) Gross profit (loss) % - - - 36.0 % (43.4 )% 35.7 % (22.2 )% Total assets as of December 31, 2023 and June 30, 2023 were as follows: December 31, 2023 June 30, 2023 Luobuma products $ - $ 4,717,588 Other agricultural products 83,160,963 33,408,143 Freight services - 4,964,012 Rapid diagnostic and other products 19,018,974 20,379,396 Healthy meals products 273,965 - Total assets 102,453,902 63,469,139 Less: total assets held for discontinued operations - (39,684,744 ) Total assets, held for continuing operations $ 102,453,902 $ 23,784,395 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF DISCONTINUED OPERATIONS | The carrying amount of the major classes of assets and liabilities of discontinued operations as of December 31, 2023 and June 30, 2023 consist of the following: SCHEDULE OF DISCONTINUED OPERATIONS December 31, 2023 June 30, 2023 Assets of discontinued operation: Current assets: Cash $ - $ 13,540,793 Accounts receivables, net - 2,278,824 Due from related parties - 4,534,211 Inventories, net - 16,720,575 Other current assets, net - 34,643 Total current assets of discontinued operation - 37,109,046 Property and equipment, net - 32,777 Long-term deposit and other noncurrent assets - 4,884 Operating lease right-of-use assets - 2,538,037 Total assets of discontinued operation $ - $ 39,684,744 Liabilities of discontinued operation: Current liabilities: Accounts payable $ - $ 143,173 Due to related parties - 2,431,191 Other payables and accrued expenses - 2,005,519 Operating lease liabilities - current - 551,502 Taxes payable - 262,459 Total current liabilities of discontinued operation - 5,393,844 Operating lease liabilities - non-current - 1,404,823 Total liabilities of discontinued operation $ - $ 6,798,667 |
SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS | The summarized operating result of discontinued operations included in the Company’s unaudited condensed consolidated statements of operations consist of the following: SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS 2023 2022 2023 2022 For the Six Months Ended December 31, For the Three Months Ended December 31, 2023 2022 2023 2022 REVENUE $ 4,439 $ 1,074,945 $ - $ 539,247 COST OF REVENUE Cost of products 4,178 822,752 - 437,931 Stock written off due to natural disaster - 462,936 - 221,182 Business and sales related tax 5 2 - 2 Total cost of revenue 4,183 1,285,690 - 659,115 GROSS PROFIT (LOSS) 256 (210,745 ) - (119,868 ) OPERATING EXPENSES General and administrative expenses 41,033 909,076 - 834,518 Selling expenses 28,947 18,551 - 5,450 Total operating expenses 69,980 927,627 - 839,968 LOSS FROM OPERATIONS (69,724 ) (1,138,372 ) - (959,836 ) OTHER EXPENSE Other expense, net - 28,758 - 14,023 Interest income (expense), net 20,269 (157,398 ) - 98,425 Total other income (expense) 20,269 (128,640 ) - 112,448 LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS (49,455 ) (1,267,012 ) - (847,388 ) BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS - - - - LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX (49,455 ) (1,267,012 ) - (847,388 ) INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS 8,904,702 - - - NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS 8,855,247 (1,267,012 ) - (847,388 ) Net loss attributable to non-controlling interest (795 ) (5,236 ) - (2,638 ) NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. $ 8,856,042 $ (1,261,776 ) $ - $ (844,750 ) |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) | 6 Months Ended | ||||||||||||||||||||||||||||||
Sep. 19, 2023 USD ($) | May 29, 2023 USD ($) | Jan. 12, 2023 USD ($) | Dec. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | May 23, 2023 USD ($) | May 23, 2023 CNY (¥) | May 16, 2023 USD ($) | May 16, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Apr. 24, 2022 | Apr. 13, 2022 USD ($) | Dec. 07, 2021 USD ($) | 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 | $ 50,819,630 | $ 37,428,382 | $ 50,865,603 | $ 36,853,046 | $ 35,728,866 | $ 33,312,888 | |||||||||||||||||||||||||
Payments to acquire businesses, gross | 9,000,000 | ||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ 500,000 | $ 2,020,030 | $ 1,250,000 | ||||||||||||||||||||||||||||
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 | 326,000 | ||||||||||||||||||||||||||||||
Share price | $ / shares | $ 0.001 | ||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | $ 12,097,000 | ||||||||||||||||||||||||||||||
Chongqing Wintus Group [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Business acquisition, percentage | 100% | 100% | |||||||||||||||||||||||||||||
Stock Purchase Agreement [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Issuance of 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 | ||||||||||||||||||||||||||||||
Life Science Group Hong Kong Co [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Registered capital | $ 10,000,000 | ||||||||||||||||||||||||||||||
Fuzhou Meida Health Management Co Ltd [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Registered capital | $ 100,000 | ¥ 1,000,000 | |||||||||||||||||||||||||||||
Shinkang Technology [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Registered capital | $ 1,400,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||
Beijing Shineco Chongshi [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Registered capital | $ 10,000 | ¥ 100,000 | |||||||||||||||||||||||||||||
Chongqing Wintus Group [Member] | Stock Purchase Agreement [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ 1,000,000 | ||||||||||||||||||||||||||||||
Tenet Jove Technological Development Co Ltd [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Equity ownership interest percentage | 10,000% | 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% | |||||||||||||||||||||||||||||
Inner Mongolia Shineco Zhonghemo Biotechnology Co Ltd [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Equity ownership interest percentage | 55% | 55% | |||||||||||||||||||||||||||||
Shareholder [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Equity ownership interest percentage | 45% | 45% | |||||||||||||||||||||||||||||
Life Science Group Hong Kong Co [Member] | Share Transfer Agreement [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Equity ownership interest percentage | 100% | ||||||||||||||||||||||||||||||
Fuzhou Meida Health Management Co Ltd [Member] | |||||||||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||||||||||||||||||
Equity ownership interest percentage | 51% | 51% | |||||||||||||||||||||||||||||
Shinkang Technology [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 ($) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 22, 2023 | Jan. 12, 2023 | Aug. 11, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Net losses | $ 5,056,103 | $ 1,925,123 | $ 8,569,226 | $ 3,947,819 | ||||
Operating actiivities | 2,548,624 | 1,841,660 | ||||||
Negative working capital | 18,655,945 | 18,655,945 | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 72,222 | |||||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 650,000 | |||||||
Gross proceeds | $ 500,000 | 2,020,030 | $ 1,250,000 | |||||
Short term loans outstanding | 14,917,912 | 14,917,912 | $ 1,240,431 | |||||
Long term loans outstanding | $ 1,765,587 | $ 1,765,587 | ||||||
Securites Purchase Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Share price | $ 1.2 | $ 9.15 | ||||||
Securites Purchase Agreement [Member] | Maximum [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Gross proceeds | $ 1,440,000 | $ 1,758,340 | ||||||
Sale of stock, shares | 1,200,000 | 192,168 |
SCHEDULE OF CONSOLIDATED ASSETS
SCHEDULE OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Current assets | $ 21,849,939 | $ 21,849,939 | $ 40,923,743 | ||
Total assets | 102,453,902 | 102,453,902 | 63,469,139 | ||
Total liabilities | (51,634,272) | (51,634,272) | (26,616,093) | ||
Net sales | 2,306,902 | 3,952,759 | |||
Gross loss | 312,318 | 411,273 | |||
Income from operations | (5,386,172) | (1,482,895) | (8,618,213) | (3,294,780) | |
Net income | (4,327,442) | (2,769,873) | 1,038,753 | (5,209,595) | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Current assets | 32,532,618 | ||||
Non-current assets | 2,493,883 | ||||
Total assets | 35,026,501 | ||||
Total liabilities | (5,952,438) | ||||
Net assets | $ 29,074,063 | ||||
Net sales | 525,599 | 1,055,723 | |||
Gross loss | (124,778) | (221,023) | |||
Income from operations | 419,178 | 60,426 | 807,083 | ||
Net income | $ 430,315 | $ 60,426 | $ 830,047 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 30 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 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 | 15 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] | 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 |
Fixture And Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 3 years |
SCHEDULE OF RECONCILIATION OF B
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Accounting Policies [Abstract] | |||||
Net loss from continuing operations attributable to Shineco | $ (4,327,442) | $ (1,925,123) | $ (7,817,289) | $ (3,947,819) | |
Net income (loss) from discontinued operations attributable to Shineco | (844,750) | 8,856,042 | (1,261,776) | ||
Net income (loss) attributable to Shineco | $ (4,327,442) | $ (2,769,873) | $ 1,038,753 | $ (5,209,595) | |
Weighted average number of shares - basic | [1],[2] | 5,129,978 | 1,785,018 | 4,145,127 | 1,624,966 |
Weighted average number of shares - diluted | [1],[2] | 5,129,978 | 1,785,018 | 4,145,127 | 1,624,966 |
Earnings loss per common share continuing operations - basic | $ (0.84) | $ (1.08) | $ (1.89) | $ (2.43) | |
Earnings loss per common share continuing operations - diluted | (0.84) | (1.08) | (1.89) | (2.43) | |
Earnings loss per common share discontinuing operations - basic | (0.47) | 2.14 | (0.78) | ||
Earnings loss per common share discontinuing operations - diluted | (0.47) | 2.14 | (0.78) | ||
Net earnings loss per common share - basic | (0.84) | (1.55) | 0.25 | (3.21) | |
Net earnings loss per common share - diluted | $ (0.84) | $ (1.55) | $ 0.25 | $ (3.21) | |
[1]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024[2]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 22, 2017 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2019 | Jun. 30, 2018 USD ($) | Jun. 30, 2023 USD ($) | |
Cash equivalents | $ 0 | $ 0 | $ 0 | ||||||
Allowance for doubtful accounts | 1,521,575 | 1,521,575 | $ 7,317,236 | 8,153,850 | |||||
Inventory reserve | $ 31,249 | $ 31,249 | 1,163,304 | ||||||
Useful life, term | 30 years | 30 years | |||||||
Outstanding derivative financial assets | $ 3,645 | $ 3,645 | |||||||
Income from derivative financial assets | 766 | $ 3,534 | |||||||
U.S. corporate tax rate | 35% | 21% | |||||||
Federal tax rate | 25% | 21% | 28% | ||||||
Income tax expenses | $ (706,562) | $ (957,928) | $ 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 | 0.1412 | 0.1412 | 0.1378 | ||||||
Foreign currency exchange rate translation one | 0.1388 | 0.1406 | 0.1385 | 0.1433 | |||||
Research and development expense | $ 22,218 | $ 45,916 | |||||||
CNY [Member] | |||||||||
Foreign currency translation | 1 | 1 | 1 | ||||||
Foreign currency exchange rate translation one | 1 | 1 | 1 | 1 | |||||
Continuing Operations [Member] | |||||||||
Allowance for doubtful accounts | $ 1,521,575 | $ 1,521,575 | $ 946,892 | ||||||
Uncollectible advances to suppliers | 130,998 | 130,998 | 3,502 | ||||||
Inventory reserve | 31,249 | 31,249 | 56,655 | ||||||
Discontinued Operations [Member] | |||||||||
Allowance for doubtful accounts | 7,206,958 | ||||||||
Uncollectible advances to suppliers | 10,163,946 | ||||||||
Inventory reserve | $ 1,106,649 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Credit Loss [Abstract] | |||
Accounts receivable | $ 8,479,760 | $ 10,467,260 | |
Less: allowance for credit losses | (1,521,575) | (8,153,850) | $ (7,317,236) |
Accounts receivable, net | 6,958,185 | 2,313,410 | |
Less: accounts receivable, net held for discontinued operations | (2,278,824) | ||
Accounts receivable, net held for continuing operations | $ 6,958,185 | $ 34,586 |
SCHEDULE OF MOVEMENT OF ALLOWAN
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 8,153,850 | $ 7,317,236 |
Acquisition of subsidiaries | 174,627 | 451,863 |
Charge to allowance | 244,557 | 1,050,753 |
Less: disposal of VIEs | (7,116,986) | |
Less: write-off | (62,125) | |
Foreign currency translation adjustments | 65,527 | (603,877) |
Ending balance | $ 1,521,575 | $ 8,153,850 |
SCHEDULE OF INVENTORIES, NET (D
SCHEDULE OF INVENTORIES, NET (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 653,555 | $ 315,129 |
Work-in-process | 174,648 | 16,713,913 |
Finished goods | 1,191,876 | 1,179,243 |
Less: inventory reserve | (31,249) | (1,163,304) |
Total inventories, net | 1,988,830 | 17,044,981 |
Less: inventories, net, held for discontinued operations | (16,720,575) | |
Inventories, net, held for continuing operations | $ 1,988,830 | $ 324,406 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | ||||
Inventory write down | $ 221,182 | $ 462,936 |
SCHEDULE OF ADVANCES TO SUPPLIE
SCHEDULE OF ADVANCES TO SUPPLIERS (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Advances To Suppliers Net | |||
Advances to suppliers | $ 8,617,047 | $ 10,170,145 | |
Less: allowance for doubtful accounts | (130,998) | (10,167,448) | $ (13,544,627) |
Advance to suppliers, net | 8,486,049 | 2,697 | |
Less: advance to supplier, net, held for discontinued operations | |||
Advance to supplier, net, held for continuing operations | $ 8,486,049 | $ 2,697 |
SCHEDULE OF MOVEMENT OF ALLOW_2
SCHEDULE OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS ON ADVANCES TO SUPPLIERS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Advances To Suppliers Net | ||
Beginning balance | $ 10,167,448 | $ 13,544,627 |
Acquisition of subsidiaries | 6,441 | 56,831 |
Charge to (reversal of) allowance | 118,607 | (2,349,716) |
Less: disposal of VIEs | (10,212,837) | |
Less: write-off | (147,172) | |
Foreign currency translation adjustments | 51,339 | (937,122) |
Ending balance | $ 130,998 | $ 10,167,448 |
SCHEDULE OF OTHER CURRENT ASSET
SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Loans to third parties | [1] | $ 2,589,104 | $ 1,481,101 | |
Other receivables | [2] | 2,564,968 | 2,629,733 | |
Prepayment for business acquisition | [3] | 2,000,000 | ||
Short-term deposit | 45,709 | 37,015 | ||
Prepaid expenses | 1,484 | 1,629 | ||
Subtotal | 5,201,265 | 6,149,478 | ||
Less: allowance for credit losses | (2,451,957) | (3,287,793) | $ (2,545,565) | |
Total other current assets, net | 2,749,308 | 2,861,685 | ||
Less: other current assets, net, held for discontinued operations | (34,643) | |||
Other current assets, net, held for continuing operations | $ 2,749,308 | $ 2,827,042 | ||
[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, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of December 31, 2023 and June 30, 2023, the allowance for credit losses was US$ 1,018,722 1,481,101 |
SCHEDULE OF OTHER CURRENT ASS_2
SCHEDULE OF OTHER CURRENT ASSETS (Details) (Parenthetical) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Allowance for doubtful accounts | $ 1,018,722 | $ 1,481,101 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Beginning balance | $ 3,287,793 | $ 2,545,565 |
Acquisition of subsidiaries | 36,714 | 14,504 |
Charge to allowance | 30,354 | 1,867,474 |
Less: disposal of VIEs | (604,103) | |
Less: write-off | (964,509) | |
Foreign currency translation adjustments | (298,801) | (175,241) |
Ending balance | $ 2,451,957 | $ 3,287,793 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 9,987,419 | $ 5,432,519 |
Less: accumulated depreciation and amortization | (3,487,508) | (3,437,327) |
Less: accumulated impairment for property and equipment | (91,675) | (749,299) |
Total property and equipment, net | 6,408,236 | 1,245,893 |
Less: property and equipment, net, held for discontinued operations | (32,777) | |
Property and equipment, net held for continuing operations | 6,408,236 | 1,213,116 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 6,309,988 | 1,064,656 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 3,226,301 | 1,132,064 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 185,644 | 195,183 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 142,624 | 142,288 |
Fixture And Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 104,638 | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 18,224 | |
Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 2,898,328 |
SCHEDULE OF LEASEHOLD IMPROVEME
SCHEDULE OF LEASEHOLD IMPROVEMENTS (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 2,898,328 | |
Less: accumulated amortization | (2,238,484) | |
Less: impairment for farmland leasehold improvements | (659,844) | |
Total farmland leasehold improvements, net | ||
Blueberry Farmland Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,226,624 | |
Yew Tree Planting Base Reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 249,464 | |
Greenhouse Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 422,240 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Continuing Operations [Member] | ||||
Depreciation and amortization expense | $ 109,932 | $ 143 | $ 243,189 | $ 285 |
Discontinued Operations [Member] | ||||
Depreciation and amortization expense | $ 133,562 | $ 2,403 | $ 164,386 |
SCHEDULE OF LAND USE RIGHTS (De
SCHEDULE OF LAND USE RIGHTS (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Land Use Rights Net | ||
Land use rights | $ 715,955 | |
Less: accumulated amortization | (94,280) | |
Total land use rights, net | 621,675 | |
Less: land use rights, net, held for discontinued operations | ||
Land use rights, net, held for continuing operations | $ 621,675 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSES (Details) - Land [Member] | Dec. 31, 2023 USD ($) |
Property, Plant and Equipment [Line Items] | |
2024 | $ 23,865 |
2025 | 23,865 |
2026 | 23,865 |
2027 | 23,865 |
2028 | 23,865 |
Thereafter | 502,350 |
Total | $ 621,675 |
LAND USE RIGHTS, NET (Details N
LAND USE RIGHTS, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Land use right useful life | 30 years | |||
Land use right amortizes period | 30 years | |||
Amortization expense to continuing operations | $ 37,002 | |||
Amortization expense to discontinued operations | $ 0 | $ 0 | 0 | 0 |
Continued Operations [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Amortization expense to continuing operations | $ 6,839 | $ 9,355 |
SCHEDULE OF OPERATING LEASE REL
SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
ROU lease assets | $ 133,318 | $ 132,366 |
Operating lease liabilities – current | 126,857 | 86,978 |
Operating lease liabilities – non-current | 19,563 | 44,469 |
Total operating lease liabilities | 146,420 | 131,447 |
Discontinued Operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
ROU lease assets | 2,538,037 | |
Operating lease liabilities – current | 551,502 | |
Operating lease liabilities – non-current | 1,404,823 | |
Total operating lease liabilities | $ 1,956,325 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES (Details) | Dec. 31, 2023 | Jun. 30, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Weighted average remaining lease term (years) | 1 year 8 months 8 days | 1 year 11 months 1 day |
Weighted average discount rate | 4.52% | 4.61% |
Discontinued Operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average remaining lease term (years) | 0 years | 5 years 10 months 6 days |
Weighted average discount rate | (0.00%) | 4.36% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Present value of lease liabilities | $ 146,420 | $ 131,447 |
Continuing operations [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Remainder of 2024 | 77,497 | |
2025 | 58,391 | |
2026 | 12,288 | |
2027 | 2,062 | |
Total | 150,238 | |
Less: imputed interest | (3,818) | |
Present value of lease liabilities | $ 146,420 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Continued Operations [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Rent expenses | $ 45,588 | $ 64,920 | $ 86,139 | $ 132,409 |
Discontinued Operations [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Rent expenses | $ 106,785 | $ 51,778 | $ 253,736 | |
Offices Space [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Lease term | 3 years | 3 years | ||
Offices Space [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Lease term | 24 years | 24 years |
SUMMARIZES THE ALLOCATION OF ES
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
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 | 16,224,379 | |
Goodwill | 28,015,104 | $ 6,574,743 |
Operating lease liabilities - non-current | $ 1,404,823 | |
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 | 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) | |
Tax payable | (346,523) | |
Chongqing Wintus Group [Member] | ||
Business Acquisition [Line Items] | ||
Inventories, net | 1,782,180 | |
Other current assets, net | 1,426,163 | |
Total purchase price for acquisition | 41,002,273 | |
Accounts receivable, net | 12,507,353 | |
Property and equipment, net | 5,407,301 | |
Intangible assets | 36,117,041 | |
Operating lease right-of-use assets | 1,999 | |
Goodwill | 21,440,360 | |
Deferred tax assets, net | 600,742 | |
Short-term bank loans | (12,021,992) | |
Accounts payable | (6,686,700) | |
Advances from customers | (78,677) | |
Other current liabilities | (2,277,877) | |
Operating lease liabilities - non-current | (1,847) | |
Deferred tax liabilities | (9,186,376) | |
Non-controlling interest | (8,197,473) | |
Advances to suppliers, net | 3,513,448 | |
Derivative financial assets | 6,212 | |
Tax payable | (600,742) | |
Deferred income | (77,007) | |
Long-term bank loans | $ (2,071,093) |
SUMMARIZES THE ALLOCATION OF _2
SUMMARIZES THE ALLOCATION OF ESTIMATED FAIR VALUES (Details) (Parenthetical) | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Pruchase price of acquisition | $ 112,070 |
Changzhou Biowin Pharmaceutical Co Ltd [Member] | |
Business Acquisition [Line Items] | |
Cash acquired | 621,979 |
Chongqing Wintus Group [Member] | |
Business Acquisition [Line Items] | |
Cash acquired | $ 1,003,678 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Business Acquisition [Line Items] | ||
Total intangible assets, net | $ 45,425,630 | $ 12,049,473 |
Changzhou Biowin Pharmaceutical Co Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 12,683,656 | |
Intangible assets, average useful life | 10 years | |
Less: accumulated amortization | $ (1,268,366) | |
Total intangible assets, net | 11,415,290 | |
Less: intangible assets, net held for discontinued operations | ||
Total intangible assets, net held for continuing operations | 11,415,290 | |
Chongqing Wintus Group [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 35,487,273 | |
Intangible assets, average useful life | 10 years | |
Less: accumulated amortization | $ (1,478,636) | |
Total intangible assets, net | 34,008,637 | |
Less: intangible assets, net held for discontinued operations | ||
Total intangible assets, net held for continuing operations | $ 34,008,637 |
ACQUISITION (Details Narrative)
ACQUISITION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Sep. 19, 2023 | May 29, 2023 | Dec. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Oct. 21, 2022 | Jun. 08, 2021 | |
Business Acquisition [Line Items] | ||||||||||
Acquisition related costs | ||||||||||
Revenues | ||||||||||
Net Loss | (4,327,442) | (2,769,873) | 1,038,753 | (5,209,595) | ||||||
Goodwill | 28,015,104 | 28,015,104 | $ 6,574,743 | |||||||
Amortization of Intangible Assets | 317,091 | 634,182 | ||||||||
Stock Purchase Agreement [Member] | Chongqing Wintus Group [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gross proceeds | $ 2,000,000 | $ 2,000,000 | ||||||||
Restricted common stock, shares | 1,000,000 | |||||||||
Tianjin Tajite [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Transferredship of equity percentage | 100% | |||||||||
Guangyuan Forest Development Co Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net Loss | 46,718 | 12,060 | 75,134 | |||||||
Changzhou Biowin Pharmaceutical Co Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition related costs | 99,148 | 130,887 | ||||||||
Revenues | 163,995 | 299,122 | ||||||||
Net Loss | 324,650 | 621,625 | ||||||||
Equity interest | 51% | 51% | ||||||||
Cash | $ 9,000,000 | $ 9,000,000 | ||||||||
Shares issued | 326,000 | 326,000 | ||||||||
Share price | $ 0.001 | |||||||||
Gross proceeds | $ 12,097,000 | |||||||||
Goodwill | 6,574,743 | 6,574,743 | ||||||||
Business acquisition, percentage | 51% | |||||||||
Chongqing Wintus Group [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition related costs | 17,196 | 779,606 | 17,196 | |||||||
Revenues | 2,131,803 | 3,642,533 | ||||||||
Net Loss | 1,979,110 | 1,138,402 | ||||||||
Equity interest | 71.42% | |||||||||
Goodwill | 21,440,360 | 21,440,360 | ||||||||
Amortization of Intangible Assets | $ 887,181 | $ 1,478,636 | ||||||||
Business acquisition, percentage | 100% | 100% |
SCHEDULE OF DUE FROM RELATED PA
SCHEDULE OF DUE FROM RELATED PARTIES (Details) ¥ 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 ($) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Oct. 28, 2021 USD ($) | Oct. 28, 2021 CNY (¥) | Sep. 17, 2021 | ||
Chongqing Yufan Trading Co Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | $ 407,511 | ||||||||||
Chongqing Dream Trading Co Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | 42,374 | ||||||||||
Ren Zhiwei [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | 26,837 | ||||||||||
Wintus China Limited [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | 412,379 | ||||||||||
Shanghai Gaojing Private Fund Management [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | [1] | 396,938 | |||||||||
Zhongjian Yijia Health Technology Co Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | [2] | 1,441,485 | |||||||||
Fixed annual interest rate | 6% | ||||||||||
Repayments of Debt | $ 689,128 | ¥ 5 | $ 206,738 | ¥ 1.5 | |||||||
Proceeds from Collection of Notes Receivable | 206,738 | ¥ 1.5 | |||||||||
Debt instrument face amount | 1,441,485 | ||||||||||
Zhongjian International Logistics Development Co Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | [3] | 4,534,211 | |||||||||
Fixed annual interest rate | 6% | 6% | |||||||||
Debt instrument face amount | 4,534,211 | $ 4,334,401 | ¥ 29.9 | ||||||||
Related Party [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subtotal | 6,372,634 | 889,101 | |||||||||
Less: allowance for credit losses | (1,838,423) | (412,379) | |||||||||
Total due from related parties, net | 4,534,211 | 476,722 | |||||||||
Less: due from related parties, held for discontinued operations | (4,534,211) | ||||||||||
Due from related parties, held for continuing operations | $ 476,722 | ||||||||||
[1]The Company owns 32 1,642,355 (RMB 11.0 million) for its working capital for one year, with a maturity date of September 16, 2022. The loans bore a fixed annual interest rate of 6.0 % per annum. Upon maturity date, the Company signed a loan extension agreement with this related party to extend the loan repayment by installments, among which, US$ 206,738 (RMB 1.5 million) will be paid by September 30, 2022, US$ 689,128 (RMB 5.0 million) will be paid by December 31, 2022, and the remaining loan and unpaid interest will be paid by June 30, 2023. During the year ended June 30, 2023, the Company received payment of US$ 206,738 (RMB 1.5 million) from this related party. However, due to the impact from COVID-19, the Company did not receive the remaining installment repayment and unpaid interests 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, the total outstanding balance including the principal and interest was amounted to US$ 1,441,485 (approximately 10.5 million) as of June 30, 2023, and the management fully recorded an allowance for doubtful accounts as of June 30, 2023. 4,334,401 29.9 6.0 4,534,211 |
SCHEDULE OF DUE FROM RELATED _2
SCHEDULE OF DUE FROM RELATED PARTIES (Details) (Parenthetical) ¥ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Oct. 28, 2021 USD ($) | Oct. 28, 2021 CNY (¥) | Sep. 17, 2021 USD ($) | Sep. 17, 2021 CNY (¥) | |
Zhongjian Yijia Health Technology Co Ltd [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Total Outstanding balance | $ 1,441,485 | ||||||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 10,500,000 | ||||||||
Accrued interest income | $ 19,902 | $ 44,203 | |||||||
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 | $ 4,334,401 | ¥ 29.9 | ||||||
Accrued interest income | $ 63,541 | $ 21,056 | $ 129,596 | ||||||
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 ($) | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Wang Sai [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 28,846 | ||||
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 | |||
Zhou Shunfang [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 2,019,916 | [1] | |||
Huang Shanchun [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 261,795 | 28,651 | |||
Liu Fengming [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 4,898 | 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 | 12,202 | 1,761 | |||
Liu Xinqiao [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 14,641 | 2,113 | |||
Mike Zhao [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 10,000 | ||||
Zhao Pengfei [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 7,062 | ||||
Wang Xiaohui [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 273,966 | ||||
Chi Keung Yan [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 325,673 | ||||
Chongqing Fuling [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 249,371 | ||||
Chongqing Huajian [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 396,514 | ||||
Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 1,574,968 | 48,046 | |||
Due to related parties | (2,431,191) | ||||
Due to related parties | 1,574,968 | 48,046 | |||
Related Party [Member] | Parent [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 1,574,968 | $ 2,479,237 | |||
[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 |
SCHEDULE OF DUE TO RELATED PA_2
SCHEDULE OF DUE TO RELATED PARTIES (Details) (Parenthetical) - Loan Agreement [Member] - Zhao Min [Member] ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | |
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 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 3 Months Ended | 6 Months Ended | |||||
May 24, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | May 29, 2023 USD ($) | |
Related Party Transaction [Line Items] | |||||||
Interest expenses on loan | $ 4,518 | $ 1,526 | $ 9,320 | ||||
Yuying Zhang [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Net book value of real estate property | $ 1,045,883 | ||||||
Weiqing Guo [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt instrument face amount | ¥ | ¥ 15,000,000 | ||||||
Description of extension of due date agreed by parties | extend the due date of the principal amount from May 23, 2023 to May 23, 2024 | ||||||
Related Party [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party liabilities | 1,574,968 | 1,574,968 | $ 48,046 | ||||
Discontinued operations related party liabilities | 2,431,191 | ||||||
Related Party [Member] | Continuing Operations [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party liabilities | 1,574,968 | 1,574,968 | 48,046 | ||||
Chongqing Fuling [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party liabilities | 249,371 | 249,371 | |||||
Sales to related parties | $ 680,330 | $ 811,131 |
SCHEDULE OF SHORT TERM BANK LOA
SCHEDULE OF SHORT TERM BANK LOANS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | ||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | $ 14,117,912 | ||||
Short-term banks loans, held for continuing operations | 14,917,912 | $ 1,240,431 | |||
Discontinued Operations [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term banks loans, held for continuing operations | |||||
Continuing Operations [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term banks loans, held for continuing operations | $ 1,240,431 | ||||
Discontinued Operations [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | |||||
Continuing Operations [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | 14,117,912 | ||||
Jiangnan Rural Commercial Bank [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [1] | $ 423,741 | |||
Maturity date | 2024/3/29 | [1] | 2024/3/29 | [2] | |
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | [1] | 4.80% | [2] | |
Short-term banks loans, held for continuing operations | [2] | $ 413,477 | |||
Bank Of Jiangsu [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [3] | $ 423,741 | |||
Maturity date | 2024/6/13 | [3] | 2024/6/13 | [4] | |
Debt Instrument, Interest Rate, Stated Percentage | 4% | [3] | 4% | [4] | |
Short-term banks loans, held for continuing operations | [4] | $ 413,477 | |||
Bank Of China One [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [5] | $ 423,741 | |||
Maturity date | 2024/6/26 | [5] | 2024/6/26 | [6] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | [5] | 3.60% | [6] | |
Chongquing Rural Commercial Bank [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [7] | $ 1,341,846 | |||
Maturity date | [7] | 2024/3/23 | |||
Debt Instrument, Interest Rate, Stated Percentage | [7] | 4.30% | |||
United Overseas Bank [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [8] | $ 10,021,750 | |||
Maturity date | [8] | January 2024 - June 2024 | |||
United Overseas Bank [Member] | Minimum [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | [8] | 4.20% | |||
United Overseas Bank [Member] | Maximum [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | [8] | 4.40% | |||
Bank Of China Two [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [9] | $ 423,741 | |||
Maturity date | [9] | 2024/2/14 | |||
Debt Instrument, Interest Rate, Stated Percentage | [9] | 3.65% | |||
Industrial And Commercial Bank Of China One [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | $ 423,741 | ||||
Maturity date | 2024/7/25 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||||
Industrial And Commercial Bank Of China Two [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term bank loans, held for continuing operations | [10] | $ 635,611 | |||
Maturity date | [10] | 2024/9/22 | |||
Debt Instrument, Interest Rate, Stated Percentage | [10] | 3.45% | |||
Bank of China [Member] | |||||
Short-Term Debt [Line Items] | |||||
Short-term banks loans, held for continuing operations | [6] | $ 413,477 | |||
[1]Guaranteed by Mr. Liu Fengming, the former 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 former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company.[3]Guaranteed by Mr. Liu Fengming, the former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company, and Biowin Development, the wholly-owned subsidiary of the Company.[4]Guaranteed by Mr. Liu Fengming, the former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company, and Biowin Development, the wholly-owned subsidiary of the Company.[5]Guaranteed by Mr. Liu Fengming, the former CEO of the Company, and his wife, Ms. Jie Liang.[6]Guaranteed by Mr. Liu Fengming, the former CEO of the Company, and his wife, Ms. Jie Liang.[7]Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd. In addition, Chongqing Huajian pledged its properties to guaranty the Company’s loan from Chongqing Rural Commercial Bank.[8]Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian and Chongqing Yufan. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guaranty the Company’s loans from United Overseas Bank.[9]Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus (New Star) Enterprises Group (“Chongqing Wintus”). In addition, Chongqing Huajian and another third party pledged their properties to guaranty the Company’s loan from Bank of China.[10]Guaranteed by the other subsidiary of the Company, Chongqing Wintus. In addition, the Company’s properties with net book values of US$ 627,721 |
SCHEDULE OF SHORT TERM BANK L_2
SCHEDULE OF SHORT TERM BANK LOANS (Details) (Parenthetical) | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Broker-dealer, bank loan, short-term | $ 627,721 |
SCHEDULE OF LONG TERM BANK LOAN
SCHEDULE OF LONG TERM BANK LOANS (Details) | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Total long-term bank loans | $ 1,765,587 |
Long-term bank loans-current | 649,736 |
Long-term bank loans-non-current | 1,115,851 |
Chongqing Rural Commercial [Member] | |
Debt Instrument [Line Items] | |
Total long-term bank loans | $ 635,612 |
Maturity date | 2024/9/7 |
Interest rate | 4.85% |
Bank Of Chongqing [Member] | |
Debt Instrument [Line Items] | |
Total long-term bank loans | $ 1,129,975 |
Maturity date | 2026/7/3 |
Interest rate | 4% |
SCHEDULE OF LONG TERM BANK LO_2
SCHEDULE OF LONG TERM BANK LOANS (Details) (Parenthetical) | Dec. 31, 2023 USD ($) |
Chongqing Rural Commercial [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 575,278 |
Bank Of Chongqing [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 1,530,247 |
SCHEDULE OF MATURITIES OF LONG
SCHEDULE OF MATURITIES OF LONG -TERM BANK LOANS (Details) | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 649,736 |
2025 | 1,115,851 |
Total long-term bank loans | $ 1,765,587 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 27, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Working capital | $ 18,655,945 | $ 18,655,945 | |||
Weighted average interest rate | 4.32% | 4.30% | |||
Discontinued Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest expense | |||||
Continuing Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest expense | 165,575 | 279,711 | |||
Third Party [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Working capital | $ 800,000 | ||||
Maturity date | Sep. 29, 2024 | ||||
Annual interest rate | 15% | ||||
Third Party [Member] | Discontinued Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest expense | |||||
Third Party [Member] | Continuing Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest expense | $ 30,247 | $ 30,247 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 15, 2023 | Aug. 19, 2021 | Aug. 19, 2021 | Jul. 16, 2021 | Jun. 16, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Sep. 07, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Amortization of financing costs | $ 366,057 | $ 355,972 | |||||||||
Common stock shares issued | 6,412,902 | 6,412,902 | 2,639,338 | ||||||||
Investor [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Amortization of financing costs | $ 199,234 | $ 201,569 | $ 366,057 | $ 355,972 | |||||||
Common stock shares issued | 1,500,396 | 1,500,396 | |||||||||
Debt instrument periodic payment | $ 9,988,359 | ||||||||||
Note payable | $ 14,353,591 | 14,353,591 | |||||||||
Debt instrument carrying amount | 14,851,827 | 14,851,827 | |||||||||
Deferred financing costs | $ 498,236 | $ 498,236 | |||||||||
Convertible Promissory Note [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [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 | ||||||||||
Securities Purchase Agreement [Member] | Unsecured Convertible Promissory Note [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Debt instrument face amount | $ 10,520,000 | $ 10,520,000 | $ 3,170,000 | $ 3,170,000 | $ 7,472,638 | $ 3,500,528.40 | |||||
Proceeds from convertible debt | 10,000,000 | 3,000,000 | 3,000,000 | ||||||||
Debt instrument unamortized discount | $ 500,000 | 500,000 | 150,000 | 150,000 | |||||||
Legal fees | $ 20,000 | $ 20,000 | $ 20,000 | ||||||||
Debt instrument, term | 1 year | ||||||||||
Interest rate | 6% | 6% | 6% | ||||||||
Total number of shares issued after conversion of notes | 1,946,766 | ||||||||||
Securities Purchase Agreement [Member] | Unsecured Convertible Promissory Note [Member] | Investor [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Debt instrument face amount | $ 11,053,443.50 | ||||||||||
Securities Purchase Agreement [Member] | Second Convertible Promissory Note [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Debt instrument face amount | $ 4,200,000 | ||||||||||
Proceeds from convertible debt | 4,000,000 | ||||||||||
Securities Purchase Agreement [Member] | Second Convertible Promissory Note [Member] | Investor [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Debt instrument unamortized discount | $ 200,000 | ||||||||||
Second June Note Amendment [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Debt instrument face amount | $ 3,929,498 | ||||||||||
Maturity date | Jun. 17, 2024 | ||||||||||
Second August Note Amendment [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Debt instrument face amount | $ 11,878,241 | ||||||||||
Maturity date | Aug. 23, 2024 |
SCHEDULE OF INCOME TAX BENEFIT
SCHEDULE OF INCOME TAX BENEFIT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Current income tax benefit | |||||
Deferred income tax benefit | (706,562) | (957,928) | |||
Total income tax benefit | (706,562) | (957,928) | |||
Less: income tax benefit, held for discontinued operations | |||||
Income tax benefit, held for continuing operations | $ (706,562) | $ (957,928) | $ 744,766 |
SCHEDULE OF FINANCIAL BASIS AND
SCHEDULE OF FINANCIAL BASIS AND TAX BASIS OF ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | |||
Allowance for credit loss/doubtful accounts | $ 324,668 | $ 1,360,693 | |
Inventory reserve | 1,562 | 281,237 | |
Net operating loss carry-forwards | 1,045,420 | 1,223,159 | |
Total | 1,371,650 | 2,865,089 | |
Valuation allowance | (171,060) | (2,471,066) | $ (2,543,366) |
Total deferred tax assets | 1,200,590 | 394,023 | |
Deferred tax liability: | |||
Intangible assets | (10,823,814) | (1,810,615) | |
Total deferred tax liability | (10,823,814) | (1,810,615) | |
Deferred tax liability, net | (9,623,224) | (1,416,592) | |
Less: deferred tax liability, net, held for discontinued operations | |||
Deferred tax liability, net, held for continuing operations | $ (9,623,224) | $ (1,416,592) |
SCHEDULE OF MOVEMENT OF VALUATI
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 2,471,066 | $ 2,543,366 |
Beginning balance | 158,576 | 376,085 |
Beginning balance | (2,455,995) | |
Beginning balance | (63,923) | (252,836) |
Beginning balance | 61,342 | (195,549) |
Beginning balance | 171,060 | 2,471,066 |
Beginning balance | (2,396,504) | |
Beginning balance | $ 171,060 | $ 74,562 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 1,239,142 | $ 1,048,188 |
Value added tax payable | 266,975 | 46,451 |
Business tax and other taxes payable | 4,405 | 3,834 |
Total tax payable | 1,510,522 | 1,098,473 |
Less: tax payable, held for discontinued operations | (262,459) | |
Tax payable, held for continuing operations | 1,510,522 | 836,014 |
Income tax payable - current portion | 1,175,377 | 763,328 |
Less: income tax payable - current portion, held for discontinued operations | (262,459) | |
Income tax payable - current portion, held for continuing operations | 1,175,377 | 500,869 |
Income tax payable - noncurrent portion | 335,145 | 335,145 |
Less: income tax payable - noncurrent portion, held for discontinued operations | ||
Income tax payable - noncurrent portion, held for continuing operations | $ 335,145 | $ 335,145 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 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. The subsidiaries of Wintus in PRC are governed by the Income Tax Laws of the PRC, and are currently subject to tax at a statutory rate of 25% on taxable income, expect certain subsidiaries that are recognized as small low-profit enterprises. According to the relevant PRC tax policies, once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the taxable income not more than RMB3 million is subject to a reduced effective rate of 5% during the period from January 1, 2023 to December 31, 2027 | |||||
Income tax expenses | $ (706,562) | $ (957,928) | $ 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. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued | |||||
Tax penalties | $ 0 | $ 0 | $ 0 | $ 0 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||
Feb. 02, 2024 | Dec. 22, 2023 | Sep. 19, 2023 | Aug. 30, 2023 | Jun. 21, 2023 | Jun. 19, 2023 | May 29, 2023 | May 17, 2023 | Jan. 12, 2023 | Dec. 30, 2022 | Aug. 11, 2022 | Jul. 27, 2022 | Jul. 21, 2022 | Jun. 13, 2022 | Apr. 10, 2021 | Jul. 10, 2020 | Sep. 28, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Oct. 21, 2022 | |||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Number of shares value | $ 1,440,000 | $ 3,347,000 | $ 1,440,000 | $ 9,347,000 | |||||||||||||||||||||||
Statutory surplus reserve percentage | 10% | ||||||||||||||||||||||||||
Registered capital reserve | 50% | ||||||||||||||||||||||||||
Statutory reserves | $ 4,198,107 | $ 4,198,107 | $ 4,198,107 | ||||||||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||||||||||
Gross proceeds | $ 500,000 | $ 2,020,030 | $ 1,250,000 | ||||||||||||||||||||||||
Common stock outstanding | $ 3,024,000 | 3,024,000 | |||||||||||||||||||||||||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 178,332 | $ 178,332 | $ 3,782,362 | ||||||||||||||||||||||||
Common stock, shares outstanding | 6,412,902 | 6,412,902 | 2,639,338 | ||||||||||||||||||||||||
Chongqing Wintus Group [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Equity method investment ownership percentage | 71.42% | ||||||||||||||||||||||||||
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 | 326,000 | 326,000 | |||||||||||||||||||||||||
Gross proceeds aggregate cash consideration | $ 12,097,000 | ||||||||||||||||||||||||||
Business acquisition, percentage | 51% | ||||||||||||||||||||||||||
Chongqing Wintus Group [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Acquire equity interest percentage | 71.42% | ||||||||||||||||||||||||||
Business acquisition, percentage | 100% | 100% | |||||||||||||||||||||||||
2022 Equity Investment Plan [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Issuance of shares | 150,000 | ||||||||||||||||||||||||||
Stock Purchase Agreement [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Share price per share | $ 30 | ||||||||||||||||||||||||||
Gross proceeds | $ 650,000 | ||||||||||||||||||||||||||
Sale of stock, shares | 72,222 | ||||||||||||||||||||||||||
New shares issued for services | 1,000 | ||||||||||||||||||||||||||
New value Issued for services | $ 30,000 | ||||||||||||||||||||||||||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 178,332 | $ 178,332 | |||||||||||||||||||||||||
Stock Purchase Agreement [Member] | Chongqing Wintus Group [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Gross proceeds | $ 1,000,000 | ||||||||||||||||||||||||||
Gross proceeds aggregate cash consideration | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||||||
Shares issued restricted common stock | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||
Stock Purchase Agreement [Member] | Non Us Investors [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Share price per share | $ 21.2 | ||||||||||||||||||||||||||
Gross proceeds | $ 5,000,000 | ||||||||||||||||||||||||||
Sale of stock, shares | 235,450 | ||||||||||||||||||||||||||
Securites Purchase Agreement [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Share price | $ 1.2 | $ 9.15 | |||||||||||||||||||||||||
Securites Purchase Agreement [Member] | Maximum [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Gross proceeds | $ 1,440,000 | $ 1,758,340 | |||||||||||||||||||||||||
Sale of stock, shares | 1,200,000 | 192,168 | |||||||||||||||||||||||||
Agreement [Member] | Non Us Investors [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Share price per share | $ 5 | $ 10.5 | |||||||||||||||||||||||||
Gross proceeds | $ 2,000,000 | $ 1,200,000 | |||||||||||||||||||||||||
Sale of stock, shares | 400,000 | 113,717 | |||||||||||||||||||||||||
Selected Investors [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Issuance of shares | 387,219 | ||||||||||||||||||||||||||
Share price per share | $ 32 | ||||||||||||||||||||||||||
Gross proceeds | $ 7,981,204 | ||||||||||||||||||||||||||
Board Of Directors [Member] | 2022 Equity Investment Plan [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Share price per share | $ 1.4 | $ 5.4 | $ 10.2 | ||||||||||||||||||||||||
New shares issued for services | 380,500 | 16,778 | 60,000 | ||||||||||||||||||||||||
New value Issued for services | $ 540,310 | $ 90,600 | $ 612,000 | ||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Issuance of shares | 1,200,000 | [1] | 326,000 | [1] | 1,200,000 | [2] | 753,618 | [2] | |||||||||||||||||||
Number of shares value | $ 1,200 | $ 326 | $ 1,200 | $ 754 | |||||||||||||||||||||||
Reverse stock split description | 1-for-9 reverse stock split | ||||||||||||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | ||||||||||||||||||||||||||
Reverse stock split, par value | $ 0.001 | ||||||||||||||||||||||||||
Common Stock [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Reverse stock split description | 1-for-10 reverse stock split | ||||||||||||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||||||||||||
Common stock, shares authorized | 150,000,000 | ||||||||||||||||||||||||||
Reverse stock split, par value | $ 0.001 | ||||||||||||||||||||||||||
Common stock, shares outstanding | 64,129,020 | ||||||||||||||||||||||||||
Common Stock [Member] | Subsequent Event [Member] | After Reverse Stock Split [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Common stock, shares outstanding | 6,412,902 | ||||||||||||||||||||||||||
IPO [Member] | |||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||
Issuance of shares | 190,354 | ||||||||||||||||||||||||||
Share price per share | $ 40.50 | ||||||||||||||||||||||||||
Number of shares value | $ 7,700,000 | ||||||||||||||||||||||||||
Proceeds from issuance initial public offering | $ 5,400,000 | ||||||||||||||||||||||||||
[1]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024.[2]Retrospectively restated for effect of the Reverse Stock Split on February 2, 2024. |
CONCENTRATIONS AND RISKS (Detai
CONCENTRATIONS AND RISKS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | |||||
Assets, percentage | 100% | 100% | 100% | 100% | |
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 54% | ||||
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 78% | ||||
Continuing Operations [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 84% | 87% | |||
Continuing Operations [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 65% | ||||
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 32% | 100% | 21% | ||
Continuing Operations [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | Two Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100% | ||||
CHINA | Continuing Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Cash | $ 1,127,743 | $ 1,127,743 | $ 581,092 | ||
CHINA | Discontinued Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Cash | $ 13,540,534 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) ¥ in Millions | 1 Months Ended | ||||
Nov. 26, 2021 USD ($) | Jan. 31, 2023 USD ($) | Jan. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Damages sought value | $ 9,000,000 | ||||
Punitive damages | $ 10,000,000 | ||||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 178,332 | $ 3,782,362 | |||
Lei Zhang And Yan Li [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Common Stock, Share Subscribed but Unissued, Subscriptions 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 ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | |||||
Segment revenue | $ 2,306,902 | $ 3,952,759 | |||
Segment revenue, discontinued operation | 2,306,902 | 539,247 | 3,957,198 | 1,074,945 | |
Cost of revenue and related business and sales tax | 1,994,584 | 3,541,486 | |||
Cost of revenue and related business and sales tax, discontinued operation | 1,994,584 | 659,115 | 3,545,669 | 1,285,690 | |
Gross profit (loss) | 312,318 | 411,273 | |||
Gross profit (loss), discontinued operation | $ 312,318 | $ (119,868) | $ 411,529 | $ (210,745) | |
Gross profit (loss) percentage, discontinued operation | 13.50% | (22.20%) | 10.40% | (19.60%) | |
Total assets | $ 102,453,902 | $ 102,453,902 | $ 63,469,139 | ||
Less: total assets held for discontinued operations | (39,684,744) | ||||
Total assets, held for continuing operations | 102,453,902 | 102,453,902 | 23,784,395 | ||
Rapid Diagnostic and Other Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 163,995 | 299,122 | |||
Cost of revenue and related business and sales tax | 71,718 | 115,494 | |||
Gross profit (loss) | $ 92,277 | $ 183,628 | |||
Gross loss percentage | 56.30% | 61.40% | |||
Total assets | $ 19,018,974 | $ 19,018,974 | 20,379,396 | ||
Other Agricultural Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 2,131,803 | 3,642,533 | |||
Segment revenue, discontinued operation | 395,089 | 823,685 | |||
Cost of revenue and related business and sales tax | 1,903,420 | 3,406,546 | |||
Cost of revenue and related business and sales tax, discontinued operation | 566,505 | 1,115,447 | |||
Gross profit (loss) | 228,383 | 235,987 | |||
Gross profit (loss), discontinued operation | $ (171,416) | $ (291,762) | |||
Gross loss percentage | 10.70% | 6.50% | |||
Gross profit (loss) percentage, discontinued operation | (43.40%) | (35.40%) | |||
Total assets | $ 83,160,963 | $ 83,160,963 | 33,408,143 | ||
Healthy Meals Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 11,104 | 11,104 | |||
Cost of revenue and related business and sales tax | 19,446 | 19,446 | |||
Gross profit (loss) | $ (8,342) | $ (8,342) | |||
Gross loss percentage | (75.10%) | (75.10%) | |||
Total assets | $ 273,965 | $ 273,965 | |||
Luobuma Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue, discontinued operation | $ 13,648 | 4,439 | $ 19,222 | ||
Cost of revenue and related business and sales tax, discontinued operation | 8,738 | 4,183 | 8,944 | ||
Gross profit (loss), discontinued operation | $ 4,910 | $ 256 | $ 10,278 | ||
Gross profit (loss) percentage, discontinued operation | 36% | 5.80% | 53.50% | ||
Total assets | 4,717,588 | ||||
Freight Service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue, discontinued operation | $ 130,510 | $ 232,038 | |||
Cost of revenue and related business and sales tax, discontinued operation | 83,872 | 161,299 | |||
Gross profit (loss), discontinued operation | $ 46,638 | $ 70,739 | |||
Gross profit (loss) percentage, discontinued operation | 35.70% | 30.50% | |||
Total assets | $ 4,964,012 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash | $ 13,540,793 | |
Accounts receivables, net | 2,278,824 | |
Due from related parties | 4,534,211 | |
Inventories, net | 16,720,575 | |
Other current assets, net | 34,643 | |
Total current assets of discontinued operation | 37,109,046 | |
Property and equipment, net | 32,777 | |
Long-term deposit and other noncurrent assets | 4,884 | |
Operating lease right-of-use assets | 2,538,037 | |
Total assets of discontinued operation | 39,684,744 | |
Current liabilities: | ||
Accounts payable | 143,173 | |
Due to related parties | 2,431,191 | |
Other payables and accrued expenses | 2,005,519 | |
Operating lease liabilities - current | 551,502 | |
Taxes payable | 262,459 | |
Total current liabilities of discontinued operation | 5,393,844 | |
Operating lease liabilities - non-current | 1,404,823 | |
Total liabilities of discontinued operation | $ 6,798,667 |
SCHEDULE OF DISPOSAL GROUP INCL
SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
REVENUE | $ 2,306,902 | $ 539,247 | $ 3,957,198 | $ 1,074,945 |
Total cost of revenue | 1,994,584 | 659,115 | 3,545,669 | 1,285,690 |
GROSS PROFIT (LOSS) | 312,318 | (119,868) | 411,529 | (210,745) |
BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | ||||
INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS | 8,904,702 | |||
Net income (loss) from discontinued operations | (847,388) | 8,855,247 | (1,267,012) | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (844,750) | 8,856,042 | (1,261,776) | |
Discontinued Operations [Member] | ||||
REVENUE | 539,247 | 4,439 | 1,074,945 | |
Total cost of revenue | 659,115 | 4,183 | 1,285,690 | |
GROSS PROFIT (LOSS) | (119,868) | 256 | (210,745) | |
General and administrative expenses | 834,518 | 41,033 | 909,076 | |
Selling expenses | 5,450 | 28,947 | 18,551 | |
Total operating expenses | 839,968 | 69,980 | 927,627 | |
LOSS FROM OPERATIONS | (959,836) | (69,724) | (1,138,372) | |
Other expense, net | 14,023 | 28,758 | ||
Interest income (expense), net | 98,425 | 20,269 | (157,398) | |
Total other income (expense) | 112,448 | 20,269 | (128,640) | |
LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | (847,388) | (49,455) | (1,267,012) | |
BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS | ||||
LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX | (847,388) | (49,455) | (1,267,012) | |
INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS | 8,904,702 | |||
Net income (loss) from discontinued operations | (847,388) | 8,855,247 | (1,267,012) | |
Net loss attributable to non-controlling interest | (2,638) | (795) | (5,236) | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC. | (844,750) | 8,856,042 | (1,261,776) | |
Discontinued Operations [Member] | Cost of Products [Member] | ||||
Total cost of revenue | 437,931 | 4,178 | 822,752 | |
Discontinued Operations [Member] | Stock Writtern Off Due To Natural Disaster [Member] | ||||
Total cost of revenue | 221,182 | 462,936 | ||
Discontinued Operations [Member] | Business and Sales Related Tax [Member] | ||||
Total cost of revenue | $ 2 | $ 5 | $ 2 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | Sep. 19, 2023 | May 29, 2023 |
Chongqing Wintus Group [Member] | ||
Business acquisition, percentage | 100% | 100% |
Stock Purchase Agreement [Member] | Chongqing Wintus Group [Member] | ||
Gross proceeds | $ 2,000,000 | $ 2,000,000 |
Shares issued restricted common stock | 1,000,000 | 1,000,000 |
Chongqing Wintus Group [Member] | ||
Equity method investment, ownership percentage | 71.42% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - $ / shares | Feb. 02, 2024 | Jul. 10, 2020 | Dec. 31, 2023 | Jun. 30, 2023 |
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||
Common stock, shares outstanding | 6,412,902 | 2,639,338 | ||
Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Reverse stock split description | 1-for-9 reverse stock split | |||
Common stock, par value | $ 0.001 | |||
Common stock, shares authorized | 100,000,000 | |||
Reverse stock split, par value | $ 0.001 | |||
Common Stock [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Reverse stock split description | 1-for-10 reverse stock split | |||
Common stock, par value | $ 0.001 | |||
Common stock, shares authorized | 150,000,000 | |||
Reverse stock split, par value | $ 0.001 | |||
Common stock, shares outstanding | 64,129,020 | |||
Common Stock [Member] | Subsequent Event [Member] | After Reverse Stock Split [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares outstanding | 6,412,902 |