Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Feb. 14, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'China Ginseng Holdings Inc | ' |
Entity Central Index Key | '0001338460 | ' |
Amendment Flag | 'true | ' |
Amendment Description | ' | ' |
We, China Ginseng Holdings, Inc. ( the “Company” or “we”, “us”), are filing this amended Form 10-Q for the period ended December 31, 2013 (the “Amended Report”) to revise our originally filed Form 10-Q with the Securities and Exchange Commission on February 14, 2014 ( the “Original Report”). This Amended Report amends and restates our unaudited condensed consolidated financial statements and related disclosures for the three and six months ended December 31, 2013. The details of the Restatement are discussed below and in Note A to the unaudited condensed consolidated financial statements contained in this Amended Report | ||
In connection with the preparation of our condensed consolidated financial statements as of and for the nine months ended March 31, 2014, we reviewed the depreciation of machinery and equipment acquired during the nine months ended March 31, 2014 and determined that depreciation expense was overstated by $97,609 for the six months ended December 31, 2013. The error impacted property and equipment (net) and total assets in consolidated balance sheet as well as costs and expenses and net loss in the consolidated statements of operations. These errors were considered material to the consolidated financial statements. | ||
Subsequently, on May 16, 2014, our Board of Directors concluded that the unaudited condensed consolidated financial statements for the three and six month periods ended December 31, 2013 contained in our Original Report should no longer be relied upon and approved management’s recommendation that the Company restate its unaudited condensed consolidated financial statements for the three and six month periods ended December 31, 2013. On May 20, 2014 the Company filed an Item 4.02 current report on Form 8-K relating to this matter. | ||
This Amended Report does not reflect events occurring after the filing of the Original Report, nor does it modify or update those disclosures presented therein, except with regard to the modifications described in this Explanatory Note. As such, this Amended Report continues to speak as of February 14, 2014. Accordingly, this Amended Report should be read in conjunction with the Original Report and our other reports filed with the SEC subsequent to the filing of our Original Report, including any amendments to those filings. | ||
In addition, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as a result of this Amended Report, the certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, filed and furnished, respectively, as exhibits to the Original Report have been reexecuted and re-filed as of the date of this Amended Report and are included as exhibits hereto. | ||
Current Fiscal Year End Date | '--06-30 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 44,397,297 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $142,969 | $19,454 |
Accounts receivable, net | 3,276,790 | 2,448,466 |
Inventory | 263,025 | 263,661 |
Due from related parties | 31,066 | 37,355 |
Prepaid expenses | 396,899 | 347,546 |
Total Current Assets | 4,110,749 | 3,116,482 |
PROPERTY AND EQUIPMENT, net | 7,711,247 | 1,530,390 |
OTHER ASSETS | ' | ' |
Ginseng crops, non-current portion | ' | 681,967 |
Intangible assets-patents, net | 211 | 4,780 |
Investments | 25,095 | 24,762 |
Deferred income tax asset | 8,969 | 8,850 |
Total Assets | 11,856,271 | 5,367,231 |
CURRENT LIABILITIES | ' | ' |
Note payable - building purchase | 1,312,142 | 485,540 |
Note payable | 6,119,238 | 52,600 |
Notes payable - related parties | 1,228,768 | 1,279,982 |
Accounts payable | 2,626,871 | 1,687,529 |
Accrued expenses | 532,713 | 286,925 |
Taxes payable | 162,122 | 149,988 |
Payments received in advance | 401,858 | 397,678 |
Total Current Liabilities | 12,383,712 | 4,340,242 |
OTHER LIABILITIES | ' | ' |
Note payable - building purchase, net of current portion | ' | 809,231 |
Liabilities of discontinued operations | 515,167 | 508,347 |
Payable to farmers | 881,977 | 870,300 |
Total Liabilities | 13,780,856 | 6,528,120 |
STOCKHOLDERS' DEFICIT | ' | ' |
Common Stock, $0.001 par value; 50,000,000 shares authorized; 44,397,297 shares issued and outstanding at December 31 and June 30, 2013, respectively | 44,398 | 44,398 |
Additional paid-in capital | 7,540,852 | 7,498,051 |
Accumulated deficit | -10,177,735 | -9,407,413 |
Accumulated other comprehensive income | 667,900 | 704,075 |
Total Stockholders' Deficit | -1,924,585 | -1,160,889 |
Total Liabilities and Stockholders' Deficit | $11,856,271 | $5,367,231 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 44,397,297 | 44,397,297 |
Common Stock, shares outstanding | 44,397,297 | 44,397,297 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
REVENUES | $2,484,432 | $1,688,947 | $2,546,825 | $2,192,719 |
COSTS AND EXPENSES | ' | ' | ' | ' |
Cost of goods sold | 2,070,925 | 1,439,961 | 2,077,579 | 1,940,400 |
Selling, general and administrative expenses | 581,182 | 368,864 | 841,517 | 699,924 |
Impairment of ginseng crops | ' | ' | ' | 920,840 |
Bad debt expense | -16,138 | ' | -55,348 | ' |
Depreciation and amortization | 30,690 | 29,898 | 61,166 | 58,726 |
Total Costs and Expenses | 2,666,659 | 1,838,723 | 2,924,914 | 3,619,890 |
LOSS FROM OPERATIONS | -182,227 | -149,776 | -378,089 | -1,427,171 |
NON OPERATING EXPENSE | ' | ' | ' | ' |
Interest expense | 332,213 | 77,035 | 392,233 | 159,696 |
Net Other Expense | 332,213 | 77,035 | 392,233 | 159,696 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -514,440 | -226,811 | -770,322 | -1,586,867 |
PROVISION FOR INCOME TAXES | ' | ' | ' | ' |
LOSS FROM CONTINUING OPERATIONS | -514,440 | -226,811 | -770,322 | -1,586,867 |
LOSS FROM DISCONTINUED OPERATIONS | ' | -30,049 | ' | -63,195 |
NET LOSS | -514,440 | -256,860 | -770,322 | -1,650,062 |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Translation Adjustment | -58,402 | 16,133 | -36,175 | -27,275 |
COMPREHENSIVE LOSS | ($572,842) | ($240,727) | ($806,497) | ($1,677,337) |
NET LOSS PER COMMON SHARE (Basic and diluted) | ' | ' | ' | ' |
Loss from continuing operations per share | ($0.01) | ($0.01) | ($0.02) | ($0.04) |
Loss from discontinued operations per share | ' | ' | ' | ' |
Net loss per share | ($0.01) | ($0.01) | ($0.02) | ($0.04) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING- | ' | ' | ' | ' |
Basic | 44,397,297 | 44,397,297 | 44,397,297 | 44,397,297 |
Diluted | 44,397,297 | 44,397,297 | 44,397,297 | 44,397,297 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($770,322) | ($1,650,062) |
Loss from discontinued operations | ' | 63,195 |
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' |
Impairment of ginseng crops | ' | 920,840 |
Depreciation and amortization | 61,166 | 58,725 |
Imputed interest | 42,801 | 73,770 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivable | -796,201 | -794,212 |
(Increase) decrease in inventory | 695,290 | 616,636 |
(Increase) decrease in prepaid expense | -44,690 | -30,905 |
(Increase) decrease in due from related parties | 6,364 | -74,803 |
(Increase) decrease in amounts due from farmers | ' | -92,841 |
Increase (decrease) in accounts payable | 927,731 | 754,655 |
Increase (decrease) in taxes payable | 10,122 | ' |
Increase (decrease) in receivables in advance | -1,156 | 78,079 |
Increase (decrease) in accrued expenses | 242,785 | 38,766 |
Increase (decrease) in amounts due to farmers | ' | 40,102 |
Net cash provided by (used in) operating activities- continuing operations | 373,890 | 1,945 |
Net cash provided by (used in) operating activities- discontinued operations | ' | -2,469 |
Net cash provided by (used in) operating activities | 373,890 | -524 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of property and equipment | -6,164,805 | -272 |
Net cash provided by (used in) investing activities | -6,164,805 | -272 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from loans | 6,065,932 | ' |
Proceeds from loans payable to related parties | ' | 71,953 |
Repayment of loans payable to related parties | -58,278 | ' |
Net cash provided by (used in) financing activities | 6,007,654 | 71,953 |
Effect of exchange rate on cash | -93,224 | -30,558 |
Increase (decrease) in cash | 123,515 | 40,599 |
Cash at beginning of period | 19,454 | 24,183 |
Cash at end of period | 142,969 | 64,782 |
Cash paid for: | ' | ' |
Interest | ' | ' |
Income taxes | ' | ' |
Presentation_Nature_of_Busines
Presentation, Nature of Business, and Going Concern | 6 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
PRESENTATION, NATURE OF BUSINESS, AND GOING CONCERN | ' | ||||||||||||
NOTE A – PRESENTATION, NATURE OF BUSINESS, AND GOING CONCERN | |||||||||||||
Basis of Presentation | |||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These consolidated financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended June 30, 2013. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the consolidated financial statements not misleading have been included. Results for the three months and six months ended December 31, 2013, are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. | |||||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to the consolidated financial statements for the three and six months ended December 31, 2012 to make them comparable to the presentation for the three and six months ended December 31, 2013. | |||||||||||||
Restatement of Prior Period Amounts | |||||||||||||
In connection with the preparation of our condensed consolidated financial statements as of and for the nine months ended March 31, 2014, we reviewed the depreciation of machinery and equipment acquired during the six months ended March 31, 2014 and determined that depreciation expense was overstated by $97,609 for the six months ended December 31, 2013. | |||||||||||||
The following tables present the impact of these restatements on the Company’s condensed consolidated financial statements as of December 31, 2013, for the three and six months ended December 31, 2013. | |||||||||||||
) | |||||||||||||
Six months ended December 31, 2013 | |||||||||||||
As | |||||||||||||
Previously | Restatement | As | |||||||||||
Reported | Adjustment | Restated | |||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||
Property and Equipment, net | 7,612,802 | 98,445 | 7,711,247 | ||||||||||
Total Assets | 11,757,826 | 98,445 | 11,856,271 | ||||||||||
Total Equity | (2,023,030 | ) | 98,445 | (1,924,585 | ) | ||||||||
Condensed Consolidated Statement of Operations and Comprehensive Loss | |||||||||||||
Depreciation and amortization | 158,775 | (97,609 | ) | 61,166 | |||||||||
Total costs and expenses | 3,022,523 | (97,609 | ) | 2,924,914 | |||||||||
Loss from operations | (475,698 | ) | 97,609 | (378,089 | ) | ||||||||
Loss from continuing operations | (867,931 | ) | 97,609 | (770,322 | |||||||||
Net Loss | (867,931 | ) | 97,609 | (770,322 | ) | ||||||||
Other comprehensive loss | (37,011 | ) | 836 | (36,175 | ) | ||||||||
Comprehensive loss | (904,942 | ) | 98,445 | (806,497 | ) | ||||||||
Loss Per Share | (0.02 | ) | - | (0.02 | ) | ||||||||
Three months ended December 31, 2013 | |||||||||||||
As | |||||||||||||
Previously | Restatement | As | |||||||||||
Reported | Adjustment | Restated | |||||||||||
Condensed Consolidated Statement of Operations and Comprehensive Loss | |||||||||||||
Depreciation and amortization | 128,299 | (97,609 | ) | 30,690 | |||||||||
Total costs and expenses | 2,764,268 | (97,609 | ) | 2,666,659 | |||||||||
Loss from operations | (279,836 | ) | 97,609 | (182,227 | ) | ||||||||
Loss from continuing operations | (612,049 | ) | 97,609 | (514,440 | ) | ||||||||
Net Loss | (612,049 | ) | 97,609 | (514,440 | ) | ||||||||
Other comprehensive loss | (59,238 | ) | 836 | (58,402 | ) | ||||||||
Comprehensive loss | (671,287 | ) | 98,445 | (572,842 | ) | ||||||||
Loss Per Share | (0.01 | ) | - | (0.01 | ) | ||||||||
Nature of Business | |||||||||||||
China Ginseng Holdings, Inc. and Subsidiaries (the “Company”), was incorporated under the laws of Nevada on June 24, 2004. | |||||||||||||
On November 24, 2004, the Company acquired 55% of Yanbian Huaxing Ginseng Industry Co. Limited (“Yanbian Huaxing”), which is located in China and, is in the business of farming, processing, distribution, and marketing of Asian Ginseng products. In 2010, the Company ceased marketing ginseng and is presently utilizing the harvest to produce a ginseng beverage. However, it continues to buy ginseng for the resale market. In August 2005, the Company acquired the remaining 45% of Yanbian Huaxing. Yanbian Huaxing controls, through 20 year leases (the "Leases") granted by the Chinese Government, approximately 1,500 hectors (3,705 acres) of land used to grow ginseng. The Company had no operations prior to November 24, 2004. These leases expire in 2024. | |||||||||||||
On August 24, 2005, the Company acquired Jilin Ganzhi Ginseng Produce Co. Limited, whose principal business is the manufacture of ginseng drinks. | |||||||||||||
On October 19, 2005, the Company incorporated a new company, Jilin Huamei Beverage Co. Limited (“Jilin Huamei”), which operates as a sales department for the Company’s canned ginseng juice and wine, which are produced by other subsidiaries of the Company. | |||||||||||||
On March 31, 2008, the Company acquired Tonghua Linyuan Grape Planting Co. Limited (“Tonghua Linyuan”) whose principal activity is the growing, cultivation and harvesting of a grape vineyard. The Company plans to produce wine and grape juice but to date has not commenced production. In June 2012, the Company decided to abandon the growing and harvesting of grapes due to the poor quality of recent harvests, which were not suitable for the production of wine or grape juice. Instead, the Company began purchasing grapes in the open market to produce wine and grape juice and did not to renew the Leases with the Chinese Government when the leases expired on December 31, 2013, since it no longer needed them for its business. On June 30, 2013, the Company sold the assets and liabilities of Tonghua Linyuan to a third party. | |||||||||||||
On March 2, 2012, the Company approved the incorporation of a new subsidiary, Hong Kong Huaxia International Industrial Co., Limited (“Hong Kong Huaxia”) in Hong Kong in order to sell health and specialized local products. Hong Kong Huaxia was incorporated in Hong Kong on March 18, 2012, and began operations in April 2012. Hong Kong Huaxia has registered 880,000,000 shares of 1 HKD par value stock in Hong Kong. None of the $113,443,000 (880,000,000 HKD) registered capital of Hong Kong Huaxia has been funded. | |||||||||||||
On September 27, 2013, the Company established a new wholly owned subsidiary of Hong Kong Huaxia, Jilin Huaxia Ginseng Co., Ltd (“Jilin Huaxia”) in order to open online store through Taobao Marketplace, the biggest online Business to Consumer and Consumer to Consumer platform in Asia, a subsidiary company of Alibaba Group, and to acquire machinery and equipment in China. Hong Kong Huaxia registered capital of $6,000,000 in Jilin Huaxia. | |||||||||||||
Consolidated Financial Statements | |||||||||||||
The consolidated financial statements include the accounts and activities of China Ginseng Holdings, Inc. and its wholly-owned subsidiaries, Yanbian Huaxing Ginseng Co. Limited, Jilin Huamei Beverage Co. Limited, Jilin Ganzhi Ginseng Products Co. Limited, Tonghua Linyuan Grape Planting Co. Limited and Hong Kong Huaxia International Industrial, Co. Limited (which included Jilin Huaxia Ginseng Co., Ltd). All intercompany transactions have been eliminated in consolidation. | |||||||||||||
Going Concern | |||||||||||||
As indicated in the accompanying financial statements, the Company had net losses of $770,322 (restated) and $1,650,062 for the six months ended December 31, 2013 and 2012, respectively, and an accumulated deficit of $10,177,735 (restated) as of December 31, 2013 and there are existing uncertain conditions the Company foresees relating to its ability to obtain working capital and operate successfully. Management’s plans include the raising of capital through the debt and equity markets to fund future operations and the generating of revenue through its businesses. Failure to raise adequate capital and generate adequate sales revenues could result in the Company having to curtail or cease operations. | |||||||||||||
Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenues will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. However, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. |
Property_and_Equipment
Property and Equipment | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE B - PROPERTY AND EQUIPMENT | |||||||||
Property and equipment is recorded at cost and is depreciated using the straight line method over the estimated useful lives of the respective assets, as follows: | |||||||||
Buildings and improvements | 6 - 40 years | ||||||||
Machinery and equipment | 5 - 15 years | ||||||||
Motor vehicles | 5 - 10 years | ||||||||
Office equipment | 5 - 10 years | ||||||||
Routine maintenance, repairs and replacement costs are expensed as incurred and improvements that extend the useful life of the assets are capitalized. When equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized in operations. | |||||||||
Property and equipment is comprised of the following at: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Buildings and improvements | $ | 1,476,160 | $ | 1,456,618 | |||||
Machinery and equipment | 6,610,616 | 387,826 | |||||||
Motor vehicles | 30,584 | 30,179 | |||||||
Office equipment | 25,248 | 25,021 | |||||||
8,142,608 | 1,899,644 | ||||||||
Less accumulated depreciation | (431,361 | ) | (369,254 | ) | |||||
$ | 7,711,247 | $ | 1,530,390 | ||||||
Substantially all of the property and equipment is located in China. | |||||||||
Total Depreciation was $56,353 and $56,242 for the six months ended December 31, 2013 and 2012, respectively. Depreciation is recorded in the financial statements as follows: | |||||||||
Six Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Depreciation Expense | $ | 56,353 | $ | 54,253 | |||||
Capitalized Ginseng Crops | 395 | 1,989 | |||||||
$ | 56,748 | $ | 56,242 | ||||||
Depreciation expense is included within Deprecation and amortization on the consolidated Statements of Operations. Capitalized Ginseng Crops is included in the consolidated Balance Sheet in this report. |
Inventory
Inventory | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
INVENTORY | ' | ||||||||
NOTE C –INVENTORY | |||||||||
Inventory is comprised of the following at: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 211,806 | $ | 213,209 | |||||
Finished goods | 46,808 | 46,100 | |||||||
Operating supplies | 4,411 | 4,352 | |||||||
$ | 263,025 | $ | 263,661 | ||||||
In March 2013, the Company determined that the grape juice inventory held at Tonghua Linyuan is no longer saleable. As such, the Company wrote off inventory with a value of RMB 8,855,286 ($1,410,149) at June 30, 2013. | |||||||||
At December 31, 2013 and June 30, 2013, there were no shipments of Ginseng at customer locations awaiting inspection and approval that may be subject to invoicing. |
Investments
Investments | 6 Months Ended |
Dec. 31, 2013 | |
Investments Schedule [Abstract] | ' |
INVESTMENTS | ' |
NOTE D – INVESTMENTS | |
In December 2010, the Company invested $25,095 (RMB 153,000) in Changchun Zhongshen Beverage Co. Ltd. (“Zhongshen”). This investment represented a 17% interest in Zhonghsen. Zhongshen is a retailer of ginseng juice and wine. The Company accounts for this investment utilizing the cost method. | |
In September 2011, the Company entered into an agreement with three other companies to establish a new entity, Jilin Province Jiliang Beverage Investment Management Co., Ltd (“Jilin Jiliang”). The purpose of Jilin Jiliang is to provide investment and project consultation. Under the agreement, the Company is required to invest a total of $82,009 (RMB 500,000) for a 10% interest in Jilin Jiliang by September 25, 2012. In September 2011, the Company invested $16,402 (RMB 100,000) in Jilin Jiliang. During the year ended June 30, 2013, Jilin Jiliang returned the $16,402 (RMB 100,000) investment to the Company. |
Ginseng_Crops
Ginseng Crops | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Ginseng Crops [Abstract] | ' | ||||||||
GINSENG CROPS | ' | ||||||||
NOTE E – GINSENG CROPS | |||||||||
The Company’s business, prior to June 30, 2009, was primarily to harvest and sell fresh and dried Ginseng. The growth period takes approximately 5 to 6 years before harvest can commence and up to 8 years for improved harvest and seedling yields. The Company is changing its business model to utilize the harvested Ginseng to manufacture Ginseng juice and other Ginseng beverages. It commenced the juice operation in August 2011. The Company plants selected areas each year and tracks the costs expended each year by planting area. The Chinese government owns all the land in China. | |||||||||
Currently, the Company has land grants from the Chinese government for approximately 1,500 hectors of land (approximately 3,705 acres) to grow Ginseng which were awarded in April and May 2005. These grants are for 20 years and the management of the Company believes that the grants will be renewed as the grants expire in different areas. However, there are no assurances that the Chinese government will continue to renew these grants in the future. The planting of new Ginseng is dependent upon the Company’s cash flow and its ability to raise working capital. | |||||||||
The Company had planted approximately 287,984 square meters of land. The Company plans to plant, over the next 5 years, 100,000 square meters, representing approximately 20,000 square meters per year. In the succeeding five years, the Company plans to harvest approximately 60,945 square meters of Ginseng. The harvest plan by year is as follows: 2014-58,281 and 2017-2,664. | |||||||||
In August of 2012, a typhoon struck the Mudanjian Ginseng farm destroying approximately 111,839 square meters of planted ginseng, which had an approximate value of RMB 6,754,675 ($ 1,075,640). | |||||||||
An analysis of ginseng crop costs for each of the applicable periods is as follows: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Beginning Crop Costs | $ | 681,967 | $ | 2,495,543 | |||||
Currency Conversion Adjustment to Beginning Balance | - | - | |||||||
Capitalized Costs During Year: | |||||||||
Wages | - | 381,803 | |||||||
Fertilizer | - | 1,457 | |||||||
Ginseng shelf | - | 59,701 | |||||||
Field clearing and cultivation | - | 81,400 | |||||||
Farmer lease fee net of management fee | - | 301,473 | |||||||
Labor | 12,095 | - | |||||||
Irrigation | - | - | |||||||
Depreciation | 395 | 2,589 | |||||||
Other | 3,108 | 4,385 | |||||||
Total Capitalized Costs | 15,598 | 832,808 | |||||||
Less: | |||||||||
Cost of crops harvested | (697,565 | ) | (1,570,744 | ) | |||||
Impairment adjustment | - | (1,075,640 | ) | ||||||
(697,565 | ) | (2,646,384 | ) | ||||||
Ending Crop Costs | - | 681,967 | |||||||
Less: Current portion | - | - | |||||||
Non-Current Portion of Crop Costs | $ | - | $ | 681,967 | |||||
The cost of harvest is calculated by reference to the planting area and the detailed costs maintained for each planting area. Based upon the square meters planted by area, a square meter cost is calculated and applied to the square meters harvested, rendering a cost of harvest. | |||||||||
For each financial reporting period, the Ginseng crop harvested is valued at net realizable value. If the net realizable value is lower than carrying value, a write down is made for the difference. |
Agreements_with_Farmers
Agreements with Farmers | 6 Months Ended |
Dec. 31, 2013 | |
Agreements With Farmers [Abstract] | ' |
AGREEMENTS WITH FARMERS | ' |
NOTE F – AGREEMENTS WITH FARMERS | |
The Company has executed agreements with a number of local farmers to grow, cultivate and harvest ginseng utilizing the land leased from the government. The farming contracts commenced in January 2008. In connection with these agreements, the Company (1) leases sections of the ginseng farm land to the farmers at approximately $1.50 (RMB 10) per square meter per year, (2) provides the seeds and fertilizer to the farmers and clears the land of large debris, (3) pays the farmers a management fee of approximately $0.50 (RMB 4.00) per square meter per year, and (4) the farmers are required to produce 2kg of ginseng for each square meter that they manage. The Company pays the farmers the market price for their ginseng. If the harvest is below 2kg per square meter, the difference will be deducted from the total payment for ginseng purchased. If the harvest produces more that 2kg per square meter, the Company pays approximately $3.00 for every extra kilo. The Company records these agreements on a net basis by individual farmers. The Company has recorded a receivable from the farmers for the rental income of the leased ginseng farm land of $0 and $0 at December 31, 2013 and June 30, 2013, respectively. The Company has also recorded a long-term Payable to Farmers for the management fee due to the farmers. The liability at December 31, 2013 and June 30, 2013 was $881,977 and $870,300, respectively. The receivable and payable balances for the respective areas will be settled at harvest time when the Company purchases the harvest at the current market value for ginseng. |
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
INTANGIBLE ASSETS | ' | ||||||||
NOTE G – INTANGIBLE ASSETS | |||||||||
Intangible assets consist of the patent rights for Ginseng drinks. The cost and related amortization is as follows: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Cost | $ | 18,428 | $ | 18,184 | |||||
Less accumulated amortization | (18,217 | ) | (13,404 | ) | |||||
$ | 211 | $ | 4,780 | ||||||
Amortization expense was $4,813 and $4,473 for the six months ended December 31, 2013 and 2012, respectively. |
Loan_Payable_to_Financial_Inst
Loan Payable to Financial Institution | 6 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
LOAN PAYABLE TO FINANCIAL INSTITUTION | ' |
NOTE H – LOAN PAYABLE TO FINANCIAL INSTITUTION | |
In 2002, the Company’s subsidiary, Tonghua Linyuan Grape Co. Limited, borrowed 2,000,000 RMB from Ji’an Qingshi Credit Corporation at an interest rate of 6.325% per annum with a maturity date of February 4, 2004. The loan is currently in default. In March 2008, the lender verbally agreed that no principal or interest need be paid until the company is generating profits. Interest has been paid on the loan through June 30, 2009 and will be accrued in subsequent periods. The loan is secured by the Company’s inventory and equipment. The loan balance at December 31, 2013 and June 30, 2013 is $328,036 and $323,693, respectively. The loan balance is included in Liabilities of Discontinued Operations on the accompanying Balance Sheet. |
Note_Payable_Building_Purchase
Note Payable - Building Purchase | 6 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
NOTE PAYABLE - BUILDING PURCHASE | ' |
NOTE I – NOTE PAYABLE – BUILDING PURCHASE | |
On March 2, 2011, the Company entered into an agreement with Meihekou Hang Yilk Tax Warehousing Logistics, an auctioneer, to purchase office and warehouse facilities. The purchase price was $1,325,479 (RMB 9,000,000). On June 24, 2011, the Company made payment of $73,804 (RMB 500,000) leaving a balance of $1,251,675 (RMB 8,500,000). On September 10, 2011, the Company paid 8,000,000 RMB through the proceeds of a loan with Merkekou City Rural Credit Union. The loan was due on August 12, 2012. The interest rate is a floating rate adjusted upwards by 90%. At June 30, 2012, the Central Bank Rate was 6.31%. Applying the adjustment factor yields a rate of 11.989%. The loan is secured by the building. The remaining 500,000 RMB was paid as follows: (a) 100,000 RMB in December 2010 and (b) 400,000 RMB in June 2011. On August 30, 2012, the loan was renegotiated extending the maturity date to August 29, 2014 and requires principal payments of 1,000,000 RMB (USD 164,018) in September 2012; 1,000,000 RMB (USD 164,018) on August 29, 2013; 1,000,000 RMB (USD 164,018) on December 20, 2013 and 5,000,000 RMB (USD 820,088) on August 29, 2014. The payments due in September 2012, August 2013 and December 2013 were not made by the Company and the note is thus in default. |
Note_Payable_Fixed_Asset_Purch
Note Payable - Fixed Asset Purchase | 6 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
NOTE PAYABLE - FIXED ASSET PURCHASE | ' |
NOTE J – NOTE PAYABLE – FIXED ASSET PURCHASE | |
On October 29, 2013, the Company borrowed $6,065,932 (RMB 36,983,383) in order to fund the acquisition of machinery and equipment by the Company. The loan term is to February 28, 2014, and the Company is to pay $211,413 (RMB 1,300,000) in interest over the life of the loan. The Company has recognized $109,172 (RMB 671,311) in interest expense on this loan in the six months ended December 31, 2013. The loan is secured by $6,217,586 (RMB 37,908,000) in machinery and equipment of the Jilin Huaxia. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE K - RELATED PARTY TRANSACTIONS | |
The Company had been financing its operations with loans from individuals, principally residents of China, who are deemed to be related parties because of their ownership interest in the Company (shareholders). The individuals have loaned the Company funds that are interest free, have no specific repayment date, and are unsecured. The funds received are evidenced by receipt of cash acknowledgments. As of December 31, 2013 and June 30, 2013 funds borrowed to fund the current operations of the Company were $1,228,768 and $1,279,982, respectively. In accordance with FASB ASC 835-30, the Company has imputed an interest charge of $42,801 and $73,770 which has been recorded in the financial statements for the six months ended December 31, 2013 and 2012, respectively. | |
As of December 31, 2013 and June 30, 2013, the Company had receivables from related parties amounting to $31,066 and $37,355, respectively. |
Provision_for_Income_Taxes
Provision for Income Taxes | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
PROVISION FOR INCOME TAXES | ' | ||||||||
NOTE L – PROVISION FOR INCOME TAXES | |||||||||
Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. | |||||||||
Deferred tax assets consist of the following at: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Timing difference related to inventory provisions | $ | 8,969 | $ | 8,850 | |||||
Net operating losses | 1,569,352 | 1,376,771 | |||||||
Valuation allowance | (1,569,352 | ) | (1,376,771 | ) | |||||
Deferred tax asset | $ | 8,969 | $ | 8,850 | |||||
The deferred tax asset is the result of an inventory provision and related reserve. Under Chinese tax law, the Company is not entitled to a deduction for the provision until the inventory is completely discarded. Accordingly, the liability has been recorded as an offset by a deferred tax asset representing a timing difference. | |||||||||
The Company has a net operating loss carry forward as follows: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
International (China) | $ | 4,135,167 | $ | 3,730,738 | |||||
United States | 2,142,239 | 1,776,346 | |||||||
$ | 6,277,406 | $ | 5,507,084 | ||||||
The operating losses are available to offset future taxable income. The China net operating loss carryforwards can only be carried forward for five years and will commence expiring in the year 2013. The Company does not file a consolidated tax return in China. Therefore, the profitability of the individual Chinese companies will determine the utilization of the carryforward losses. The U.S. carryforward losses are available to offset future taxable income for the succeeding 20 years and commence expiring in the year 2027. | |||||||||
The components of income before taxes are as follows: | |||||||||
For the Six Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
International (China) | $ | (404,429 | ) | $ | (1,392,656 | ) | |||
United States | (365,893 | ) | (194,211 | ) | |||||
$ | (770,322 | ) | $ | (1,586,867 | ) | ||||
A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and Federal statutory rate for the six months ended December 31, 2013 and 2012, respectively, are as follows: | |||||||||
2013 | 2012 | ||||||||
Federal statutory rate | (34.0 | )% | (34.0 | )% | |||||
State income taxes, net of federal benefit | 3.3 | 3.3 | |||||||
Valuation allowance | 30.7 | 30.7 | |||||||
Effective tax rate | - | % | - | % |
Concentrations
Concentrations | 6 Months Ended |
Dec. 31, 2013 | |
Concentrations [Abstract] | ' |
CONCENTRATIONS | ' |
NOTE M– CONCENTRATIONS | |
In the six months ended December 31, 2013, three customers accounted for 91% of revenues. | |
In the six months ended December 31, 2012, three customers accounted for 53% of revenues. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
DISCONTINUED OPERATIONS | ' | ||||||||
NOTE N – DISCONTINUED OPERATIONS | |||||||||
On June 30, 2013, the Company discontinued its grape production operations. The Company sold the assets and liabilities of Tonghua Linyuan and plans to close Tonghua Linyuan. The following summarizes the operations of Tonghua Linyuan with the six months ended December 31, 2013 and 2012: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Revenues | $ | - | $ | - | |||||
Total costs and expenses | - | (48,755 | ) | ||||||
Operating loss | - | (48,755 | ) | ||||||
Other expense | - | (14,440 | ) | ||||||
Provision for taxes | - | - | |||||||
Loss from discontinued operations | $ | - | $ | (63,195 | ) | ||||
The Company has retained $515,167 and $508,347 in contingent liabilities of Tonghua Linyuan at December 31, 2013 and June 30, 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE O –COMMITMENTS AND CONTINGENCIES | |
The Company has a three year employment contract with the Chief Executive Officer expiring on January 1, 2017 aggregating $15,108 per year. | |
The Company has a three year contract with the Chief Financial Officer expiring on January 1, 2017 aggregating $ 5,664 per year. | |
The Company has a three year employment contract with a staff accountant expiring on March 2, 2015 aggregating $5,316 per year. | |
The Company has a two year employment agreement with an office employee expiring in December 2014 aggregating $5,110 per year. | |
The Company has a three contract with the Chief Marketing Officer expiring on February 1, 2017 aggregating $17,564 per year. | |
The Company has a three year employment contract with two office employees expiring between June 2015 and November 2015 aggregating $6,972 per year. | |
The Company has a three year employment contract with the General Manager of Hong Kong Huaxia International Industrial Co., Limited expiring on August 18, 2015 aggregating $15,108 per year. | |
The Company has a one year lease for its corporate offices in China aggregating $109,432 RMB per year (USD $17,000) which expires on December 31, 2014. | |
The Chinese government owns all the land in China. Currently, the Company has grants from the Chinese government for approximately 1,500 hectors of land (3,705 acres) to grow Ginseng. These grants are for 20 years. There is no assurance that the Chinese government will continue to renew these grants in the future. | |
The Company has a 15 year lease with the Representative of Group One Farmer, Si’An City, Qingshi, Qingshi Town, Qingshi Village, China to lease 750 acres to grow and harvest grapes. The lease expires December 31, 2014. The annual lease fee is 187,500 RMB or approximately $29,600 per year to lease the acreage. The land and buildings on the premises have a separate lease concurrent with the property lease. The company does not plan to renew the leases in 2014. | |
In 2008, the Company entered into a 5 year lease to refrigerate and store fresh Ginseng The annual lease fee approximates $15,500 per year. | |
Rent expense was $17,263 and $50,212 for the six months ended December 31, 2013 and 2012, respectively. |
Operating_Segments
Operating Segments | 6 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
OPERATING SEGMENTS | ' | ||||||||||||||||||||
NOTE P – OPERATING SEGMENTS | |||||||||||||||||||||
The Company presently organizes its business into two reportable farming segments: (1) the cultivation and harvest of Ginseng for the production of Ginseng beverages and (2) the cultivation and harvest of grapes for the eventual production of wine and grape juice. | |||||||||||||||||||||
The Company’s reportable business segments are strategic business units that offer different products. Each segment is managed separately because they require different production techniques and market to different classes of customers. | |||||||||||||||||||||
Six months ended December 31, 2013: | |||||||||||||||||||||
Parent | Ginseng | Continuing | Wine | Total | |||||||||||||||||
Company | Operations | ||||||||||||||||||||
Revenues | $ | - | $ | 2,546,825 | $ | 2,546,825 | $ | - | $ | 2,546,825 | |||||||||||
Net loss | (365,893 | ) | (404,429 | ) | (770,322 | ) | - | (770,322 | ) | ||||||||||||
Total assets | 365,451 | 11,490,820 | 11,856,271 | - | 11,856,271 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 861 | 60,305 | 61,166 | - | 61,166 | ||||||||||||||||
Interest expense | 22,462 | 369,771 | 392,233 | - | 392,233 | ||||||||||||||||
Expenditures for fixed assets | - | 6,164,805 | 6,164,805 | - | 6,164,805 | ||||||||||||||||
Impairment of ginseng crops | - | - | - | - | - | ||||||||||||||||
Six months ended December 31, 2012: | |||||||||||||||||||||
Parent | Ginseng | Continuing Operations | Wine | Total | |||||||||||||||||
Company | |||||||||||||||||||||
Revenues | $ | - | $ | 2,192,719 | $ | 2,192,719 | $ | - | $ | 2,192,719 | |||||||||||
Net loss | (194,211 | ) | (1,392,656 | ) | (1,586,867 | ) | (63,195 | ) | (1,650,062 | ) | |||||||||||
Total assets | 147,508 | 6,006,375 | 6,153,883 | 1,417,564 | 7,571,447 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 1,149 | 57,577 | 58,726 | 46,286 | 105,012 | ||||||||||||||||
Interest expense | 46,035 | 113,661 | 159,696 | 14,440 | 174,136 | ||||||||||||||||
Expenditures for fixed assets | 272 | - | 272 | - | 272 | ||||||||||||||||
Impairment of ginseng crops | - | 920,840 | 920,840 | - | 920,840 | ||||||||||||||||
Presentation_Nature_of_Busines1
Presentation, Nature of Business, and Going Concern (Policies) | 6 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These consolidated financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended June 30, 2013. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the consolidated financial statements not misleading have been included. Results for the three months and six months ended December 31, 2013, are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to the consolidated financial statements for the three and six months ended December 31, 2012 to make them comparable to the presentation for the three and six months ended December 31, 2013. | |||||||||||||
Restatement of Prior Period Amounts | ' | ||||||||||||
Restatement of Prior Period Amounts | |||||||||||||
In connection with the preparation of our condensed consolidated financial statements as of and for the nine months ended March 31, 2014, we reviewed the depreciation of machinery and equipment acquired during the six months ended March 31, 2014 and determined that depreciation expense was overstated by $97,609 for the six months ended December 31, 2013. | |||||||||||||
The following tables present the impact of these restatements on the Company’s condensed consolidated financial statements as of December 31, 2013, for the three and six months ended December 31, 2013. | |||||||||||||
Six months ended December 31, 2013 | |||||||||||||
As | |||||||||||||
Previously | Restatement | As | |||||||||||
Reported | Adjustment | Restated | |||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||
Property and Equipment, net | 7,612,802 | 98,445 | 7,711,247 | ||||||||||
Total Assets | 11,757,826 | 98,445 | 11,856,271 | ||||||||||
Total Equity | (2,023,030 | ) | 98,445 | (1,924,585 | ) | ||||||||
Condensed Consolidated Statement of Operations and Comprehensive Loss | |||||||||||||
Depreciation and amortization | 158,775 | (97,609 | ) | 61,166 | |||||||||
Total costs and expenses | 3,022,523 | (97,609 | ) | 2,924,914 | |||||||||
Loss from operations | (475,698 | ) | 97,609 | (378,089 | ) | ||||||||
Loss from continuing operations | (867,931 | ) | 97,609 | (770,322 | ) | ||||||||
Net Loss | (867,931 | ) | 97,609 | (770,322 | ) | ||||||||
Other comprehensive loss | (37,011 | ) | 836 | (36,175 | ) | ||||||||
Comprehensive loss | (904,942 | ) | 98,445 | (806,497 | ) | ||||||||
Loss Per Share | (0.02 | ) | - | (0.02 | ) | ||||||||
Three months ended December 31, 2013 | |||||||||||||
As | |||||||||||||
Previously | Restatement | As | |||||||||||
Reported | Adjustment | Restated | |||||||||||
Condensed Consolidated Statement of Operations and Comprehensive Loss | |||||||||||||
Depreciation and amortization | 128,299 | (97,609 | ) | 30,690 | |||||||||
Total costs and expenses | 2,764,268 | (97,609 | ) | 2,666,659 | |||||||||
Loss from operations | (279,836 | ) | 97,609 | (182,227 | ) | ||||||||
Loss from continuing operations | (612,049 | ) | 97,609 | (514,440 | ) | ||||||||
Net Loss | (612,049 | ) | 97,609 | (514,440 | ) | ||||||||
Other comprehensive loss | (59,238 | ) | 836 | (58,402 | ) | ||||||||
Comprehensive loss | (671,287 | ) | 98,445 | (572,842 | ) | ||||||||
Loss Per Share | (0.01 | ) | - | (0.01 | ) | ||||||||
Nature of Business | ' | ||||||||||||
Nature of Business | |||||||||||||
China Ginseng Holdings, Inc. and Subsidiaries (the “Company”), was incorporated under the laws of Nevada on June 24, 2004. | |||||||||||||
On November 24, 2004, the Company acquired 55% of Yanbian Huaxing Ginseng Industry Co. Limited (“Yanbian Huaxing”), which is located in China and, is in the business of farming, processing, distribution, and marketing of Asian Ginseng products. In 2010, the Company ceased marketing ginseng and is presently utilizing the harvest to produce a ginseng beverage. However, it continues to buy ginseng for the resale market. In August 2005, the Company acquired the remaining 45% of Yanbian Huaxing. Yanbian Huaxing controls, through 20 year leases (the "Leases") granted by the Chinese Government, approximately 1,500 hectors (3,705 acres) of land used to grow ginseng. The Company had no operations prior to November 24, 2004. These leases expire in 2024. | |||||||||||||
On August 24, 2005, the Company acquired Jilin Ganzhi Ginseng Produce Co. Limited, whose principal business is the manufacture of ginseng drinks. | |||||||||||||
On October 19, 2005, the Company incorporated a new company, Jilin Huamei Beverage Co. Limited (“Jilin Huamei”), which operates as a sales department for the Company’s canned ginseng juice and wine, which are produced by other subsidiaries of the Company. | |||||||||||||
On March 31, 2008, the Company acquired Tonghua Linyuan Grape Planting Co. Limited (“Tonghua Linyuan”) whose principal activity is the growing, cultivation and harvesting of a grape vineyard. The Company plans to produce wine and grape juice but to date has not commenced production. In June 2012, the Company decided to abandon the growing and harvesting of grapes due to the poor quality of recent harvests, which were not suitable for the production of wine or grape juice. Instead, the Company began purchasing grapes in the open market to produce wine and grape juice and did not to renew the Leases with the Chinese Government when the leases expired on December 31, 2013, since it no longer needed them for its business. On June 30, 2013, the Company sold the assets and liabilities of Tonghua Linyuan to a third party. | |||||||||||||
On March 2, 2012, the Company approved the incorporation of a new subsidiary, Hong Kong Huaxia International Industrial Co., Limited (“Hong Kong Huaxia”) in Hong Kong in order to sell health and specialized local products. Hong Kong Huaxia was incorporated in Hong Kong on March 18, 2012, and began operations in April 2012. Hong Kong Huaxia has registered 880,000,000 shares of 1 HKD par value stock in Hong Kong. None of the $113,443,000 (880,000,000 HKD) registered capital of Hong Kong Huaxia has been funded. | |||||||||||||
On September 27, 2013, the Company established a new wholly owned subsidiary of Hong Kong Huaxia, Jilin Huaxia Ginseng Co., Ltd (“Jilin Huaxia”) in order to open online store through Taobao Marketplace, the biggest online Business to Consumer and Consumer to Consumer platform in Asia, a subsidiary company of Alibaba Group, and to acquire machinery and equipment in China. Hong Kong Huaxia registered capital of $6,000,000 in Jilin Huaxia. | |||||||||||||
Consolidated Financial Statements | ' | ||||||||||||
Consolidated Financial Statements | |||||||||||||
The consolidated financial statements include the accounts and activities of China Ginseng Holdings, Inc. and its wholly-owned subsidiaries, Yanbian Huaxing Ginseng Co. Limited, Jilin Huamei Beverage Co. Limited, Jilin Ganzhi Ginseng Products Co. Limited, Tonghua Linyuan Grape Planting Co. Limited and Hong Kong Huaxia International Industrial, Co. Limited (which included Jilin Huaxia Ginseng Co., Ltd). All intercompany transactions have been eliminated in consolidation. | |||||||||||||
Going Concern | ' | ||||||||||||
Going Concern | |||||||||||||
As indicated in the accompanying financial statements, the Company had net losses of $770,322 (restated) and $1,650,062 for the six months ended December 31, 2013 and 2012, respectively, and an accumulated deficit of $10,177,735 (restated) as of December 31, 2013 and there are existing uncertain conditions the Company foresees relating to its ability to obtain working capital and operate successfully. Management’s plans include the raising of capital through the debt and equity markets to fund future operations and the generating of revenue through its businesses. Failure to raise adequate capital and generate adequate sales revenues could result in the Company having to curtail or cease operations. | |||||||||||||
Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenues will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. However, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. |
Presentation_Nature_of_Busines2
Presentation, Nature of Business, and Going Concern (Tables) | 6 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Restatements on the Company's condensed consolidated financial statements | ' | ||||||||||||
Six months ended December 31, 2013 | |||||||||||||
As | |||||||||||||
Previously | Restatement | As | |||||||||||
Reported | Adjustment | Restated | |||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||
Property and Equipment, net | 7,612,802 | 98,445 | 7,711,247 | ||||||||||
Total Assets | 11,757,826 | 98,445 | 11,856,271 | ||||||||||
Total Equity | (2,023,030 | ) | 98,445 | (1,924,585 | ) | ||||||||
Condensed Consolidated Statement of Operations and Comprehensive Loss | |||||||||||||
Depreciation and amortization | 158,775 | (97,609 | ) | 61,166 | |||||||||
Total costs and expenses | 3,022,523 | (97,609 | ) | 2,924,914 | |||||||||
Loss from operations | (475,698 | ) | 97,609 | (378,089 | ) | ||||||||
Loss from continuing operations | (867,931 | ) | 97,609 | (770,322 | ) | ||||||||
Net Loss | (867,931 | ) | 97,609 | (770,322 | ) | ||||||||
Other comprehensive loss | (37,011 | ) | 836 | (36,175 | ) | ||||||||
Comprehensive loss | (904,942 | ) | 98,445 | (806,497 | ) | ||||||||
Loss Per Share | (0.02 | ) | - | (0.02 | ) | ||||||||
Three months ended December 31, 2013 | |||||||||||||
As | |||||||||||||
Previously | Restatement | As | |||||||||||
Reported | Adjustment | Restated | |||||||||||
Condensed Consolidated Statement of Operations and Comprehensive Loss | |||||||||||||
Depreciation and amortization | 128,299 | (97,609 | ) | 30,690 | |||||||||
Total costs and expenses | 2,764,268 | (97,609 | ) | 2,666,659 | |||||||||
Loss from operations | (279,836 | ) | 97,609 | (182,227 | ) | ||||||||
Loss from continuing operations | (612,049 | ) | 97,609 | (514,440 | ) | ||||||||
Net Loss | (612,049 | ) | 97,609 | (514,440 | ) | ||||||||
Other comprehensive loss | (59,238 | ) | 836 | (58,402 | ) | ||||||||
Comprehensive loss | (671,287 | ) | 98,445 | (572,842 | ) | ||||||||
Loss Per Share | (0.01 | ) | - | (0.01 | ) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Schedule of Property, Plant and Equipment, Estimated Useful Lives | ' | ||||||||
Buildings and improvements | 6 - 40 years | ||||||||
Machinery and equipment | 5 - 15 years | ||||||||
Motor vehicles | 5 - 10 years | ||||||||
Office equipment | 5 - 10 years | ||||||||
Schedule of property and equipment | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Buildings and improvements | $ | 1,476,160 | $ | 1,456,618 | |||||
Machinery and equipment | 6,610,616 | 387,826 | |||||||
Motor vehicles | 30,584 | 30,179 | |||||||
Office equipment | 25,248 | 25,021 | |||||||
8,142,608 | 1,899,644 | ||||||||
Less accumulated depreciation | (431,361 | ) | (369,254 | ) | |||||
$ | 7,711,247 | $ | 1,530,390 | ||||||
Schedule of depreciation for property and equipment | ' | ||||||||
Six Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Depreciation Expense | $ | 56,353 | $ | 54,253 | |||||
Capitalized Ginseng Crops | 395 | 1,989 | |||||||
$ | 56,748 | $ | 56,242 |
Inventory_Tables
Inventory (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of inventory | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 211,806 | $ | 213,209 | |||||
Finished goods | 46,808 | 46,100 | |||||||
Operating supplies | 4,411 | 4,352 | |||||||
$ | 263,025 | $ | 263,661 | ||||||
Ginseng_Crops_Tables
Ginseng Crops (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Ginseng Crops [Abstract] | ' | ||||||||
Schedule of analysis of ginseng crop costs | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Beginning Crop Costs | $ | 681,967 | $ | 2,495,543 | |||||
Currency Conversion Adjustment to Beginning Balance | - | - | |||||||
Capitalized Costs During Year: | |||||||||
Wages | - | 381,803 | |||||||
Fertilizer | - | 1,457 | |||||||
Ginseng shelf | - | 59,701 | |||||||
Field clearing and cultivation | - | 81,400 | |||||||
Farmer lease fee net of management fee | - | 301,473 | |||||||
Labor | 12,095 | - | |||||||
Irrigation | - | - | |||||||
Depreciation | 395 | 2,589 | |||||||
Other | 3,108 | 4,385 | |||||||
Total Capitalized Costs | 15,598 | 832,808 | |||||||
Less: | |||||||||
Cost of crops harvested | (697,565 | ) | (1,570,744 | ) | |||||
Impairment adjustment | - | (1,075,640 | ) | ||||||
(697,565 | ) | (2,646,384 | ) | ||||||
Ending Crop Costs | - | 681,967 | |||||||
Less: Current portion | - | - | |||||||
Non-Current Portion of Crop Costs | $ | - | $ | 681,967 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Schedule of cost and related amortization of Intangible assets | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Cost | $ | 18,428 | $ | 18,184 | |||||
Less accumulated amortization | (18,217 | ) | (13,404 | ) | |||||
$ | 211 | $ | 4,780 |
Provision_for_Income_Taxes_Tab
Provision for Income Taxes (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of deferred tax assets | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Timing difference related to inventory provisions | $ | 8,969 | $ | 8,850 | |||||
Net operating losses | 1,569,352 | 1,376,771 | |||||||
Valuation allowance | (1,569,352 | ) | (1,376,771 | ) | |||||
Deferred tax asset | $ | 8,969 | $ | 8,850 | |||||
Schedule of net operating loss carry forward | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
International (China) | $ | 4,135,167 | $ | 3,730,738 | |||||
United States | 2,142,239 | 1,776,346 | |||||||
$ | 6,277,406 | $ | 5,507,084 | ||||||
Schedule of components of income before taxes | ' | ||||||||
For the Six Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
International (China) | $ | (404,429 | ) | $ | (1,392,656 | ) | |||
United States | (365,893 | ) | (194,211 | ) | |||||
$ | (770,322 | ) | $ | (1,586,867 | ) | ||||
Schedule of effective tax rate reconciliation as a percentage of income before taxes and Federal statutory rate | ' | ||||||||
2013 | 2012 | ||||||||
Federal statutory rate | (34.0 | )% | (34.0 | )% | |||||
State income taxes, net of federal benefit | 3.3 | 3.3 | |||||||
Valuation allowance | 30.7 | 30.7 | |||||||
Effective tax rate | - | % | - | % |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Summary of the operations | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Revenues | $ | - | $ | - | |||||
Total costs and expenses | - | (48,755 | ) | ||||||
Operating loss | - | (48,755 | ) | ||||||
Other expense | - | (14,440 | ) | ||||||
Provision for taxes | - | - | |||||||
Loss from discontinued operations | $ | - | $ | (63,195 | ) | ||||
Operating_Segments_Tables
Operating Segments (Tables) | 6 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Schedule of business segments | ' | ||||||||||||||||||||
Parent | Ginseng | Continuing | Wine | Total | |||||||||||||||||
Company | Operations | ||||||||||||||||||||
Revenues | $ | - | $ | 2,546,825 | $ | 2,546,825 | $ | - | $ | 2,546,825 | |||||||||||
Net loss | (365,893 | ) | (404,429 | ) | (770,322 | ) | - | (770,322 | ) | ||||||||||||
Total assets | 365,451 | 11,490,820 | 11,856,271 | - | 11,856,271 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 861 | 60,305 | 61,166 | - | 61,166 | ||||||||||||||||
Interest expense | 22,462 | 369,771 | 392,233 | - | 392,233 | ||||||||||||||||
Expenditures for fixed assets | - | 6,164,805 | 6,164,805 | - | 6,164,805 | ||||||||||||||||
Impairment of ginseng crops | - | - | - | - | - | ||||||||||||||||
Six months ended December 31, 2012: | |||||||||||||||||||||
Parent | Ginseng | Continuing Operations | Wine | Total | |||||||||||||||||
Company | |||||||||||||||||||||
Revenues | $ | - | $ | 2,192,719 | $ | 2,192,719 | $ | - | $ | 2,192,719 | |||||||||||
Net loss | (194,211 | ) | (1,392,656 | ) | (1,586,867 | ) | (63,195 | ) | (1,650,062 | ) | |||||||||||
Total assets | 147,508 | 6,006,375 | 6,153,883 | 1,417,564 | 7,571,447 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 1,149 | 57,577 | 58,726 | 46,286 | 105,012 | ||||||||||||||||
Interest expense | 46,035 | 113,661 | 159,696 | 14,440 | 174,136 | ||||||||||||||||
Expenditures for fixed assets | 272 | - | 272 | - | 272 | ||||||||||||||||
Impairment of ginseng crops | - | 920,840 | 920,840 | - | 920,840 | ||||||||||||||||
Presentation_Nature_of_Busines3
Presentation, Nature of Business, and Going Concern (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Condensed Consolidated Balance Sheet | ' | ' | ' | ' | ' |
Property and Equipment, net | $7,711,247 | ' | $7,711,247 | ' | $1,530,390 |
Total Assets | 11,856,271 | 7,571,447 | 11,856,271 | 7,571,447 | 5,367,231 |
Total Equity | -1,924,585 | ' | -1,924,585 | ' | -1,160,889 |
Condensed Consolidated Statement of Operations and Comprehensive Loss | ' | ' | ' | ' | ' |
Depreciation and amortization | 30,690 | 29,898 | 61,166 | 58,726 | ' |
Total costs and expenses | 2,666,659 | 1,838,723 | 2,924,914 | 3,619,890 | ' |
Loss from operations | -182,227 | -149,776 | -378,089 | -1,586,867 | ' |
Loss from continuing operations | -514,440 | -226,811 | -770,322 | -1,586,867 | ' |
Net Loss | -514,440 | -256,860 | -770,322 | -1,650,062 | ' |
Other comprehensive loss | -58,402 | 16,133 | -36,175 | -27,275 | ' |
Comprehensive loss | -572,842 | -240,727 | -806,497 | -1,677,337 | ' |
Loss Per Share | ($0.01) | ($0.01) | ($0.02) | ($0.04) | ' |
Scenario, Previously Reported [Member] | ' | ' | ' | ' | ' |
Condensed Consolidated Balance Sheet | ' | ' | ' | ' | ' |
Property and Equipment, net | 7,612,802 | ' | 7,612,802 | ' | ' |
Total Assets | 11,757,826 | ' | 11,757,826 | ' | ' |
Total Equity | -2,023,030 | ' | -2,023,030 | ' | ' |
Condensed Consolidated Statement of Operations and Comprehensive Loss | ' | ' | ' | ' | ' |
Depreciation and amortization | 128,299 | ' | 158,775 | ' | ' |
Total costs and expenses | 2,764,268 | ' | 3,022,523 | ' | ' |
Loss from operations | -279,836 | ' | -475,698 | ' | ' |
Loss from continuing operations | -612,049 | ' | -867,931 | ' | ' |
Net Loss | -612,049 | ' | -867,931 | ' | ' |
Other comprehensive loss | -59,238 | ' | -37,011 | ' | ' |
Comprehensive loss | -671,287 | ' | -904,942 | ' | ' |
Loss Per Share | ($0.01) | ' | ($0.02) | ' | ' |
Restatement Adjustment [Member] | ' | ' | ' | ' | ' |
Condensed Consolidated Balance Sheet | ' | ' | ' | ' | ' |
Property and Equipment, net | 98,445 | ' | 98,445 | ' | ' |
Total Assets | 98,445 | ' | 98,445 | ' | ' |
Total Equity | 98,445 | ' | 98,445 | ' | ' |
Condensed Consolidated Statement of Operations and Comprehensive Loss | ' | ' | ' | ' | ' |
Depreciation and amortization | -97,609 | ' | -97,609 | ' | ' |
Total costs and expenses | -97,609 | ' | -97,609 | ' | ' |
Loss from operations | 97,609 | ' | 97,609 | ' | ' |
Loss from continuing operations | 97,609 | ' | 97,609 | ' | ' |
Net Loss | 97,609 | ' | 97,609 | ' | ' |
Other comprehensive loss | 836 | ' | 836 | ' | ' |
Comprehensive loss | $98,445 | ' | $98,445 | ' | ' |
Loss Per Share | ' | ' | ' | ' | ' |
Presentation_Nature_of_Busines4
Presentation, Nature of Business, and Going Concern (Detail Textuals) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Aug. 31, 2005 | Nov. 24, 2004 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 27, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Yanbian Huaxing [Member] | Yanbian Huaxing [Member] | Yanbian Huaxing [Member] | Hong Kong Huaxia [Member] | Hong Kong Huaxia [Member] | Hong Kong Huaxia [Member] | Machinery and Equipment [Member] | |
ha | USD ($) | HKD | USD ($) | USD ($) | ||||||||
acre | ||||||||||||
Presentation, Nature of Business, and Going Concern (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership acquired by company | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' |
Remaining percentage acquired by company | ' | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' |
Term of capital leases contingent by the Chinese Government | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' |
Land used to grow ginseng (hectare) | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' |
Land used to grow ginseng (acres) | ' | ' | ' | ' | ' | 3,705 | ' | ' | ' | ' | ' | ' |
Operating leases description | ' | ' | ' | ' | ' | 'The Company had no operations prior to November 24, 2004. | ' | ' | ' | ' | ' | ' |
Description of leases expiration period | ' | ' | ' | ' | ' | '2024 | ' | ' | ' | ' | ' | ' |
Registered Capital | ' | ' | ' | ' | ' | ' | ' | ' | $113,443,000 | 880,000,000 | $6,000,000 | ' |
Registered shares | 50,000,000 | ' | 50,000,000 | ' | 50,000,000 | ' | ' | ' | 880,000,000 | 880,000,000 | ' | ' |
Registered stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Accumulated deficit | 10,177,735 | ' | 10,177,735 | ' | 9,407,413 | ' | ' | ' | ' | ' | ' | ' |
Net loss | -514,440 | -256,860 | -770,322 | -1,650,062 | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation Expenses | ' | ' | $56,748 | $56,242 | ' | ' | ' | ' | ' | ' | ' | $97,609 |
Intangible_Assets_Details
Intangible Assets (Details) (Patent rights [Member], USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Patent rights [Member] | ' | ' |
Schedule of cost and related amortization of Intangible assets | ' | ' |
Cost | $18,428 | $18,184 |
Less accumulated amortization | -18,217 | -13,404 |
Intangible asset, net | $211 | $4,780 |
Property_and_Equipment_Details
Property and Equipment (Details) | 6 Months Ended |
Dec. 31, 2013 | |
Buildings and improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '40 years |
Buildings and improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '6 years |
Machinery and equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '15 years |
Machinery and equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Motor vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Motor vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Office equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Office equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Property_and_Equipment_Details1
Property and Equipment (Details 1) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | $8,142,608 | $1,899,644 |
Less accumulated depreciation | -431,361 | -369,254 |
Property and equipment, net | 7,711,247 | 1,530,390 |
Buildings and improvements [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 1,476,160 | 1,456,618 |
Machinery and equipment [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 6,610,616 | 387,826 |
Motor vehicles [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 30,584 | 30,179 |
Office equipment [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | $25,248 | $25,021 |
Property_and_Equipment_Details2
Property and Equipment (Details 2) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of depreciation for property and equipment | ' | ' |
Depreciation and amortization | $56,353 | $54,253 |
Capitalized Ginseng Crops | 395 | 1,989 |
Depreciation | $56,748 | $56,242 |
Property_and_Equipment_Details3
Property and Equipment (Details Textual) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property and Equipment (Textual) | ' | ' |
Depreciation and amortization | $56,353 | $54,253 |
Inventory_Details
Inventory (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Schedule of inventory | ' | ' |
Raw materials | $211,806 | $213,209 |
Finished goods | 46,808 | 46,100 |
Operating supplies | 4,411 | 4,352 |
Inventory, net | $263,025 | $263,661 |
Inventory_Details_Textual
Inventory (Details Textual) | Jun. 30, 2013 | Jun. 30, 2013 |
USD ($) | CNY | |
Inventory Textual [Abstract] | ' | ' |
Inventory write off | $1,410,149 | 8,855,286 |
Investment_Details
Investment (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2011 | Sep. 30, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | |
Company | Changchun Zhongshen Beverage Co. Ltd. [Member] | Changchun Zhongshen Beverage Co. Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||
Investments (Textual) | ' | ' | ' | ' | ' | ' | ' |
Amount invested in non-controlling companies | ' | $25,095 | 153,000 | $16,402 | 100,000 | ' | ' |
Percentage of interest in non-controlling company | ' | 17.00% | 17.00% | 10.00% | 10.00% | ' | ' |
Amount require to invest for 10% interest | ' | ' | ' | 82,009 | 500,000 | ' | ' |
Amount of invested amount returned after termination of agreement | ' | ' | ' | ' | ' | $16,402 | 100,000 |
Number of companies in agreement | 3 | ' | ' | ' | ' | ' | ' |
Ginseng_Crops_Details
Ginseng Crops (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | |
USD ($) | CNY | USD ($) | USD ($) | |
Schedule of analysis of ginseng crop costs | ' | ' | ' | ' |
Beginning Crop Costs | ' | ' | $681,967 | $2,495,543 |
Currency Conversion Adjustment to Beginning Balance | ' | ' | ' | ' |
Capitalized Costs During Year: | ' | ' | ' | ' |
Wages | ' | ' | ' | 381,803 |
Fertilizer | ' | ' | ' | 1,457 |
Ginseng Shelf | ' | ' | ' | 59,701 |
Field clearing and cultivation | ' | ' | ' | 81,400 |
Farmer lease fee net of management fee | ' | ' | ' | 301,473 |
Labor | ' | ' | 12,095 | ' |
Irrigation | ' | ' | ' | ' |
Depreciation | ' | ' | 395 | 2,589 |
Other | ' | ' | 3,108 | 4,385 |
Total Capitalized Costs | ' | ' | 15,598 | 832,808 |
Less: | ' | ' | ' | ' |
Cost of crops harvested | ' | ' | -697,565 | -1,570,744 |
Impairment adjustment | 1,075,640 | 6,754,675 | ' | -1,075,640 |
Capitalized costs net | ' | ' | -697,565 | -2,646,384 |
Ending Crop Costs | ' | ' | ' | 681,967 |
Less: Current portion | ' | ' | ' | ' |
Non-Current Portion of Crop Costs | ' | ' | ' | $681,967 |
Ginseng_Crops_Details_Textual
Ginseng Crops (Details Textual) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | |
USD ($) | CNY | USD ($) | USD ($) | |
sqm | acre | |||
ha | ||||
sqm | ||||
Ginseng Crops (Textual) | ' | ' | ' | ' |
Growth period before harvest | ' | ' | '5 to 6 years | ' |
Period for improved harvest and seedling yields | ' | ' | '8 years | ' |
Land grants from the Chinese government (in hectors) | ' | ' | 1,500 | ' |
Land grants from the Chinese government (in acres) | ' | ' | 3,705 | ' |
Period for land grants | ' | ' | '20 years | ' |
Land planted (in square meters) | ' | ' | 287,984 | ' |
Estimated future period for planting land | ' | ' | '5 years | ' |
Estimated future land to be planted (in square meters) | ' | ' | 100,000 | ' |
Estimated land to be planted per year (in square meters) | ' | ' | 20,000 | ' |
Land to be harvested for ginseng in succeeding five years (in square meters) | ' | ' | 60,945 | ' |
Area under harvest plan for 2014 | ' | ' | 58,281 | ' |
Area under harvest plan for 2017 | ' | ' | 2,664 | ' |
Area of Ginseng crops farm land damaged by typhoon (in square meters) | 111,839 | 111,839 | ' | ' |
Impairment of ginseng crops | $1,075,640 | 6,754,675 | ' | ($1,075,640) |
Agreements_with_Farmers_Detail
Agreements with Farmers (Details) | 1 Months Ended | |||
Jan. 31, 2008 | Jan. 31, 2008 | Dec. 31, 2013 | Jun. 30, 2013 | |
USD ($) | CNY | USD ($) | USD ($) | |
kg | ||||
Agreements with Farmers (Textual) | ' | ' | ' | ' |
Per square meter price for leases of Ginseng land | $1.50 | 10 | ' | ' |
Management fee paid to farmers per square meter per year | 0.5 | 4 | ' | ' |
Production of crop per square meter required in kg's | 2 | 2 | ' | ' |
Payment condition of the harvested crop to the farmers | 'If the harvest is below 2kg per square meter, the difference will be deducted from the total payment for ginseng purchased. If the harvest produces more that 2kg per square meter, the Company pays approximately $3.00 for every extra kilo. | 'If the harvest is below 2kg per square meter, the difference will be deducted from the total payment for ginseng purchased. If the harvest produces more that 2kg per square meter, the Company pays approximately $3.00 for every extra kilo. | ' | ' |
Price per kilo for extra kilo production | 3 | ' | ' | ' |
Receivable from the farmers for the rental income | ' | ' | 0 | 0 |
Long-term payable as a management fee due to the farmers | ' | ' | $881,977 | $870,300 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Assets (Textual) | ' | ' |
Amortization expense of intangible assets | $4,813 | $4,473 |
Loan_Payable_to_Financial_Inst1
Loan Payable to Financial Institution (Details) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Sep. 10, 2011 | Oct. 29, 2013 | Dec. 31, 2013 | Jun. 30, 2002 | Jun. 30, 2013 | |
USD ($) | CNY | USD ($) | |||
Loan Payable to Financial Institution (Textual) | ' | ' | ' | ' | ' |
Loans Payable | ' | ' | ' | 2,000,000 | ' |
Interest rate on loan | ' | ' | ' | 6.24% | ' |
Term of loan | 12-Aug-12 | 28-Feb-14 | ' | 4-Feb-04 | ' |
Debt instrument, interest payment terms | ' | ' | 'Interest has been paid on the loan through June 30, 2009 and will be accrued in subsequent periods. | ' | ' |
Loan payable to financial institution | ' | ' | $328,036 | ' | $323,693 |
Note_Payable_Building_Purchase1
Note Payable - Building Purchase (Details) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2011 | Oct. 29, 2013 | Jun. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2002 | Jun. 30, 2012 | Jun. 24, 2011 | Jun. 24, 2011 | Mar. 02, 2011 | Mar. 02, 2011 | |
CNY | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | USD ($) | CNY | |||
Note Payable - Building Purchase (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of office and warehouse facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,325,479 | 9,000,000 |
Amount paid for office and warehouse facilities | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | 73,804 | 500,000 | ' | ' |
Unpaid amount for office and warehouse facilities | ' | ' | ' | ' | ' | ' | ' | ' | 1,251,675 | 8,500,000 | ' | ' |
Loan maturity date | 12-Aug-12 | 28-Feb-14 | ' | ' | ' | ' | 4-Feb-04 | ' | ' | ' | ' | ' |
Floating interest rate adjusted upwards description | 'Interest rate is a floating rate adjusted upwards by 90%. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Central bank rate | ' | ' | ' | ' | ' | ' | ' | 6.31% | ' | ' | ' | ' |
Variable interest rate | ' | ' | ' | ' | ' | ' | ' | 11.99% | ' | ' | ' | ' |
Remaining loan of office and warehouse facilities | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' |
Office and warehouse facilities purchase price paid | ' | ' | 400,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay in September 2012 | ' | ' | ' | ' | 164,018 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on August 29, 2013 | ' | ' | ' | ' | 164,018 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on December 20, 2013 | ' | ' | ' | ' | 164,018 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on August 29, 2014 | ' | ' | ' | ' | $820,088 | 5,000,000 | ' | ' | ' | ' | ' | ' |
Note_Payable_Fixed_Asset_Purch1
Note Payable - Fixed Asset Purchase (Details) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 10, 2011 | Oct. 29, 2013 | Oct. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2002 | |
USD ($) | CNY | USD ($) | CNY | |||
Notes Payable Fixed Asset Purchase (Textual) | ' | ' | ' | ' | ' | ' |
Payments to acquire machinery and equipment | ' | $6,065,932 | 36,983,383 | ' | ' | ' |
Term of loan | 12-Aug-12 | 28-Feb-14 | 28-Feb-14 | ' | ' | 4-Feb-04 |
Interest paid for loan | ' | 211,413 | 1,300,000 | ' | ' | ' |
Interest expense for loan | ' | ' | ' | 109,172 | 671,311 | ' |
Loan secured for machinery and equipment | ' | ' | ' | $6,217,586 | 37,908,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Related Party Transactions [Abstract] | ' | ' | ' |
Notes payable - related parties | $1,228,768 | ' | $1,279,982 |
Imputed interest | 42,801 | 73,770 | ' |
Receivables from related parties | $31,066 | ' | $37,355 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Schedule of deferred tax assets | ' | ' |
Timing difference related to inventory provisions | $8,969 | $8,850 |
Net operating losses | 1,569,352 | 1,376,771 |
Valuation allowance | -1,569,352 | -1,376,771 |
Deferred tax asset | $8,969 | $8,850 |
Provision_for_Income_Taxes_Det1
Provision for Income Taxes (Details 1) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Schedule of net operating loss carry forward | ' | ' |
International (China) | $4,135,167 | $3,730,738 |
United States | 2,142,239 | 1,776,346 |
Net operating loss carry forward | $6,277,406 | $5,507,084 |
Provision_for_Income_Taxes_Det2
Provision for Income Taxes (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of components of income before taxes | ' | ' | ' | ' |
International (China) | ' | ' | ($404,429) | ($1,392,656) |
United states | ' | ' | -365,893 | -194,211 |
Income before taxes | ($182,227) | ($149,776) | ($378,089) | ($1,586,867) |
Provision_for_Income_Taxes_Det3
Provision for Income Taxes (Details 3) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of effective tax rate reconciliation as a percentage of income before taxes and Federal statutory rate | ' | ' |
Federal statutory rate | -34.00% | -34.00% |
State income taxes, net of federal benefit | 3.30% | 3.30% |
Valuation allowance | 30.70% | 30.70% |
Effective tax rate | ' | ' |
Provision_for_Income_Taxes_Det4
Provision for Income Taxes (Details Textual) | 6 Months Ended |
Dec. 31, 2013 | |
China [Member] | ' |
Provision for Income Taxes (Textual) | ' |
Period to carry forward net operating losses | '5 years |
Operating loss expiration year | 30-Jun-13 |
U.S. [Member] | ' |
Provision for Income Taxes (Textual) | ' |
Period to carry forward net operating losses | '20 years |
Operating loss expiration year | 30-Jun-27 |
Concentrations_Details
Concentrations (Details) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customers | Customers | |
Concentrations (Textual) | ' | ' |
Percentage revenue accounted by major customer | 91.00% | 53.00% |
Number of major customer accounted for revenues | 3 | 3 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of the operations | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total costs and expenses | ' | ' | ' | -48,755 |
Operating loss | ' | ' | ' | -48,755 |
Other expense | ' | ' | ' | -14,440 |
Provision for taxes | ' | ' | ' | ' |
Loss from discontinued operations | ' | ($30,049) | ' | ($63,195) |
Discontinued_Operations_Detail1
Discontinued Operations (Details Textuals) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Discontinued Operations (Textuals) | ' | ' |
Contingent liabilities | $515,167 | $508,347 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 6 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | Chinese government [Member] | Representative of group one farmer [Member] | Representative of group one farmer [Member] | Refrigeration and storage [Member] | Chief executive officer [Member] | Chief financial officer [Member] | Staff accountant [Member] | Chief marketing officer [Member] | Office employee [Member] | Office employee one [Member] | General manager [Member] | Corporate Offices [Member] | Corporate Offices [Member] | |
acre | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | |||
ha | acre | acre | |||||||||||||
Commitments and Contingencies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of employment contract | ' | ' | ' | ' | ' | ' | 'Three year | 'Three year | 'Three year | 'Three year | 'Two year | 'Three year | 'Three year | ' | ' |
Expiry date of contract | ' | ' | ' | ' | ' | ' | 1-Jan-17 | 1-Jan-17 | 2-Mar-15 | 1-Feb-17 | 14-Dec-14 | ' | 18-Aug-15 | ' | ' |
Description of expiration of contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Between June 2015 and November 2015 | ' | ' | ' |
Compensation expenses per year under employment agreement | ' | ' | ' | ' | ' | ' | $15,108 | $5,664 | $5,316 | $17,564 | $5,110 | $6,972 | $15,108 | ' | ' |
Payment of lease for corporate office | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | 109,432 |
Expiration of leases | ' | ' | ' | 31-Dec-14 | 31-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-14 | 31-Dec-14 |
Term of lease | ' | ' | ' | '15 years | '15 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual lease fee | ' | ' | ' | 29,600 | 187,500 | 15,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land used to grow ginseng (hectare) | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land used to grow ginseng (acres) | ' | ' | 3,705 | 750 | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant period of lease | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $17,263 | $50,212 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | $2,484,432 | $1,688,947 | $2,546,825 | $2,192,719 | ' |
Net loss | -514,440 | -256,860 | -770,322 | -1,650,062 | ' |
Total assets | 11,856,271 | 7,571,447 | 11,856,271 | 7,571,447 | 5,367,231 |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | 30,690 | 29,898 | 61,166 | 58,726 | ' |
Interest expense | 332,213 | 77,035 | 392,233 | 159,696 | ' |
Expenditures for fixed assets | ' | ' | 6,164,805 | 272 | ' |
Impairment of ginseng crops | ' | ' | ' | 920,840 | ' |
Continuing Operations [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | 2,546,825 | 2,192,719 | ' |
Net loss | ' | ' | -770,322 | -1,586,867 | ' |
Total assets | 11,856,271 | 6,153,883 | 11,856,271 | 6,153,883 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 61,166 | 58,726 | ' |
Interest expense | ' | ' | 392,233 | 159,696 | ' |
Expenditures for fixed assets | ' | ' | 6,164,805 | 272 | ' |
Impairment of ginseng crops | ' | ' | ' | 920,840 | ' |
Ginseng [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | 2,546,825 | 2,192,719 | ' |
Net loss | ' | ' | -404,429 | -1,392,656 | ' |
Total assets | 11,490,820 | 6,006,375 | 11,490,820 | 6,006,375 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 60,305 | 57,577 | ' |
Interest expense | ' | ' | 369,771 | 113,661 | ' |
Expenditures for fixed assets | ' | ' | 6,164,805 | ' | ' |
Impairment of ginseng crops | ' | ' | ' | 920,840 | ' |
Wine [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | -63,195 | ' |
Total assets | ' | 1,417,564 | ' | 1,417,564 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | 46,286 | ' |
Interest expense | ' | ' | ' | 14,440 | ' |
Expenditures for fixed assets | ' | ' | ' | ' | ' |
Impairment of ginseng crops | ' | ' | ' | ' | ' |
Parent Company [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Net loss | ' | ' | -365,893 | -194,211 | ' |
Total assets | 365,451 | 147,508 | 365,451 | 147,508 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 861 | 1,149 | ' |
Interest expense | ' | ' | 22,462 | 46,035 | ' |
Expenditures for fixed assets | ' | ' | ' | 272 | ' |
Impairment of ginseng crops | ' | ' | ' | ' | ' |
Operating_Segments_Details_Tex
Operating Segments (Details Textual) | 6 Months Ended |
Dec. 31, 2013 | |
Segment | |
Operating Segments (Textual) | ' |
Number of reportable segments | 2 |