Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2014 | 20-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'China Ginseng Holdings Inc | ' |
Entity Central Index Key | '0001338460 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 44,397,297 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $25,365 | $19,454 |
Accounts receivable, net | 3,249,990 | 2,448,466 |
Inventory | 267,913 | 263,661 |
Due from related parties | 21,207 | 37,355 |
Prepaid expenses | 393,338 | 347,546 |
Total Current Assets | 3,957,813 | 3,116,482 |
PROPERTY AND EQUIPMENT, net | 7,613,549 | 1,530,390 |
OTHER ASSETS | ' | ' |
Ginseng crops, non-current portion | ' | 681,967 |
Intangible assets-patents, net | ' | 4,780 |
Investments | 24,870 | 24,762 |
Deferred income tax asset | 8,888 | 8,850 |
Total Assets | 11,605,120 | 5,367,231 |
CURRENT LIABILITIES | ' | ' |
Note payable - building purchase | 1,300,369 | 485,540 |
Note payable | 6,064,333 | 52,600 |
Notes payable - related parties | 1,161,395 | 1,279,982 |
Accounts payable | 3,165,325 | 1,687,529 |
Accrued expenses | 683,201 | 286,925 |
Taxes payable | 149,038 | 149,988 |
Payments received in advance | 400,471 | 397,678 |
Total Current Liabilities | 12,924,132 | 4,340,242 |
OTHER LIABILITIES | ' | ' |
Note payable - building purchase, net of current portion | ' | 809,231 |
Liabilities of discontinued operations | 510,545 | 508,347 |
Payable to farmers | 874,063 | 870,300 |
Total Liabilities | 14,308,740 | 6,528,120 |
STOCKHOLDERS' DEFICIT | ' | ' |
Common Stock, $0.001 par value; 50,000,000 shares authorized; 44,397,297 shares issued and outstanding at March 31, 2014 and June 30, 2013, respectively | 44,398 | 44,398 |
Additional paid-in capital | 7,562,824 | 7,498,051 |
Accumulated deficit | -10,864,299 | -9,407,413 |
Accumulated other comprehensive income | 553,457 | 704,075 |
Total Stockholders' Deficit | -2,703,620 | -1,160,889 |
Total Liabilities and Stockholders' Deficit | $11,605,120 | $5,367,231 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Balance Sheets [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 | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Statements Of Operations and Comprehensive Loss [Abstract] | ' | ' | ' | ' |
REVENUES | ' | $497,943 | $2,551,181 | $2,690,662 |
COSTS AND EXPENSES | ' | ' | ' | ' |
Cost of goods sold | ' | 247,837 | 2,080,737 | 2,188,237 |
Selling, general and administrative expenses | 513,899 | 157,932 | 1,368,709 | 856,001 |
Impairment of ginseng crops and inventory | ' | ' | ' | 922,695 |
Bad debt expense | ' | ' | -55,443 | ' |
Depreciation and amortization | 29,075 | 37,101 | 90,241 | 95,827 |
Total Costs and Expenses | 542,974 | 442,870 | 3,484,244 | 4,062,760 |
INCOME (LOSS) FROM OPERATIONS | -542,974 | 55,073 | -933,063 | -1,372,098 |
NON OPERATING INCOME (EXPENSE) | ' | ' | ' | ' |
Interest expense | -131,590 | -67,565 | -523,823 | -227,261 |
Net Other Expense | -131,590 | -67,565 | -523,823 | -227,261 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -674,564 | -12,492 | -1,456,886 | -1,599,359 |
PROVISION FOR INCOME TAXES | ' | ' | ' | ' |
LOSS FROM CONTINUING OPERATIONS | -674,564 | -12,492 | -1,456,886 | -1,599,359 |
Loss from discontinued operations | ' | -1,407,018 | ' | -1,470,213 |
Net loss | -674,564 | -1,419,510 | -1,456,886 | -3,069,572 |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Translation Adjustment | -113,071 | 64,552 | -150,618 | 37,277 |
COMPREHENSIVE LOSS | ($787,635) | ($1,354,958) | ($1,607,504) | ($3,032,295) |
NET LOSS PER SHARE (Basic and Diluted) | ' | ' | ' | ' |
Loss from Continuing operaions per share | ($0.02) | ' | ($0.03) | ($0.04) |
Loss from discontinued operations per share | ' | ($0.03) | ' | ($0.03) |
Net loss per common share | ($0.02) | ($0.03) | ($0.03) | ($0.07) |
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 $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($1,456,886) | ($3,069,572) |
Loss from discontinued operations | ' | 1,470,213 |
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' |
Depreciation and amortization | 90,241 | 95,827 |
Impairment of ginseng crops | ' | 2,327,297 |
Imputed interest | 64,773 | 98,112 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivable | -791,172 | -1,160,790 |
(Increase) decrease in inventory | 681,804 | 765,652 |
(Increase) decrease in prepaid expense | -44,289 | -127,344 |
(Increase) decrease in due from related parties | 16,172 | -36,891 |
(Increase) decrease in amounts due from farmers | ' | -139,536 |
Increase (decrease) in accounts payable | 1,474,054 | 712,786 |
Increase (decrease) in taxes payable | -1,599 | ' |
Increase (decrease) in receivables in advance | 1,074 | 149,442 |
Increase (decrease) in accrued expenses | 395,308 | 87,882 |
Increase (decrease) in payable to farmers | ' | 259,438 |
Net cash provided by (used in) operating activities- continuing operations | 429,480 | 1,369,516 |
Net cash provided by (used in) operating activities- discontinued operations | ' | -1,332,155 |
Net cash provided by (used in) operating activities | 429,480 | 37,361 |
Cash Flows from Investing Activities: | ' | ' |
Return of investment in unconsolidated businesses | ' | 15,862 |
Purchase of property and equipment | -6,175,349 | -272 |
investing activities | -6,175,349 | 15,590 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from short-term borrowings | 6,011,506 | ' |
Proceeds from loans payable to related parties | ' | 61,420 |
Repayments of loans payable to related parties | -120,863 | ' |
Net cash provided by (used in) financing activities | 5,890,643 | 61,420 |
Effect of exchange rate on cash | -138,863 | -50,488 |
Increase (decrease) in cash | 5,911 | 63,883 |
Cash at beginning of period | 19,454 | 24,183 |
Cash at end of period | 25,365 | 88,066 |
Cash paid for: | ' | ' |
Interest | ' | 34,777 |
Income taxes | ' | ' |
Presentation_Nature_of_Busines
Presentation, Nature of Business, and Going Concern | 9 Months Ended |
Mar. 31, 2014 | |
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 10K 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 and nine months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. | |
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 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 renew the leases with the Chinese Government when the leases expired on December 31, 2013, since it no longer needed them for its business. In June 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 stores 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. Subsequent to March 31, 2014, the Company agreed to return the acquired machinery and equipment. | |
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 consolidated financial statements, the Company had an accumulated deficit of $10,864,299 as of March 31, 2014 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 consolidated 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 consolidated 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 | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Buildings and improvements | $ | 1,462,915 | $ | 1,456,618 | |||||
Machinery and equipment | 6,551,302 | 387,826 | |||||||
Motor vehicles | 30,310 | 30,179 | |||||||
Office equipment | 25,094 | 25,021 | |||||||
8,069,621 | 1,899,644 | ||||||||
Less accumulated depreciation | (456,072 | ) | (369,254 | ) | |||||
$ | 7,613,549 | $ | 1,530,390 | ||||||
Substantially all of the property and equipment is located in China. Subsequent to March 31, 2014, the Company agreed to return machinery and equipment with a carrying value of $6,161,798. | |||||||||
Total depreciation was $85,429 and $139,179 for the nine months ended March 31, 2014 and 2013, respectively. Depreciation is recorded in the financial statements as follows: | |||||||||
Nine Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Depreciation Expense | $ | 85,429 | $ | 136,893 | |||||
Capitalized Ginseng Crops | - | 2,286 | |||||||
$ | 85,429 | $ | 139,179 | ||||||
Depreciation expense is included within deprecation and amortization on the consolidated Statements of Operations. Capitalized Ginseng Crops is included within their respective balances on the consolidated Balance Sheets. |
Inventory
Inventory | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
INVENTORY | ' | ||||||||
NOTE C –INVENTORY | |||||||||
Inventory is comprised of the following at: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 217,353 | $ | 213,209 | |||||
Finished goods | 46,189 | 46,100 | |||||||
Operating supplies | 4,371 | 4,352 | |||||||
$ | 267,913 | $ | 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 March 31, 2014 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 | 9 Months Ended |
Mar. 31, 2014 | |
Investments Schedule [Abstract] | ' |
INVESTMENTS | ' |
NOTE D – INVESTMENTS | |
In December 2010, the Company invested $24,870 (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 was required to invest a total of $81,273 (RMB 500,000) for a 10% interest in Jilin Jiliang by September 25, 2012. In September 2011, the Company invested $16, 255 (RMB 100,000) in Jilin Jiliang. During the year ended June 30, 2013, Jilin Jiliang returned the $16, 255 (RMB 100,000) investment to the Company. |
Ginseng_Crops
Ginseng Crops | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Ginseng Crops [Abstract] | ' | ||||||||
GINSENG CROPS | ' | ||||||||
NOTE E – GINSENG CROPS | |||||||||
The Company’s business, prior to June 30, 2009, was primarily to harvest and sell fresh and dried Ginseng. The growth period takes approximately 5 to 6 years before harvest can commence and up to 8 years for improved harvest and seedling yields. The Company is changing its business model to utilize the harvested Ginseng to manufacture Ginseng juice and other Ginseng beverages. It commenced the juice operation in August 2011. The Company plants selected areas each year and tracks the costs expended each year by planting area. The Chinese government owns all the land in China. | |||||||||
Currently, the Company has land grants from the Chinese government for approximately 1,500 hectors of land (approximately 3,705 acres) to grow Ginseng which were awarded in April and May 2005. These grants are for 20 years and the management of the Company believes that the grants will be renewed as the grants expire in different areas. However, there are no assurances that the Chinese government will continue to renew these grants in the future. The planting of new Ginseng is dependent upon the Company’s cash flow and its ability to raise working capital. | |||||||||
The Company had planted approximately 287,984 square meters of land. The Company plans to plant, over the next 5 years, 100,000 square meters, representing approximately 20,000 square meters per year. In the succeeding five years, the Company plans to harvest approximately 60,945 square meters of Ginseng. The harvest plan by year is as follows: 2014-58,281 and 2017-2,664. | |||||||||
In August of 2012, a typhoon struck the Mudanjian Ginseng farm destroying approximately 111,839 square meters of planted ginseng, which had an approximate value of RMB 6,754,675 ($ 1,075,640). | |||||||||
An analysis of ginseng crop costs for each of the applicable periods is as follows: | |||||||||
March 31, | June 30, | ||||||||
2014 | 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 | - | 2,589 | |||||||
Other | 3,503 | 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 | 9 Months Ended |
Mar. 31, 2014 | |
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 land grants to the farmers at approximately $1.50 (10 RMB) 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 (4.00 RMB) 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 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 then 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 land grants of $0 and $0 at March 31, 2014, and June 30, 2013, respectively. The Company has also recorded a long-term payable-farmers for the management fee due to the farmers. The liability at March 31, 2014, and June 30, 2013 was $874,063 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 | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Cost | $ | 18,263 | $ | 18,184 | |||||
Less accumulated amortization | (18,263 | ) | (13,404 | ) | |||||
$ | 0 | $ | 4,780 | ||||||
Amortization expense was $4,812 and $13,910 for the nine months ended March 31, 2014 and 2013, respectively. |
Loan_Payable_to_Financial_Inst
Loan Payable to Financial Institution | 9 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014 and June 30, 2013 is $325,092 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 | 9 Months Ended |
Mar. 31, 2014 | |
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 162,546) in September 2012; 1,000,000 RMB (USD 162,546) on August 29, 2013; 1,000,000 RMB (USD 162,546) on December 20, 2013 and 5,000,000 RMB (USD 812,731) 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 | 9 Months Ended |
Mar. 31, 2014 | |
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 was 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 $266,738 (RMB 1,637,400) in interest expense on this loan in the nine months ended March 31, 2014. The loan is secured by $6,161,798 (RMB 37,908,000) in machinery and equipment of the Jilin Huaxia. On March 3, 2014, the loan term was extended to June 30, 2014 in order to allow for the Company to receive the proceeds from the return of the machinery and equipment in order to repay the loan. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014 and June 30, 2013 funds borrowed to fund the current operations of the Company were $1,161,395 and $1,279,982, respectively. In accordance with FASB ASC 835-30, the Company has imputed an interest charge of $64,773 and $98,112 which has been recorded in the financial statements for the nine months ended March 31, 2014 and 2013, respectively. | |
As of March 31, 2014 and June 30, 2013, the Company had receivables from related parties amounting to $21,207 and $37,355, respectively. |
Provision_for_Income_Taxes
Provision for Income Taxes | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Timing difference related to inventory provisions | $ | 8,888 | $ | 8,850 | |||||
Net operating losses | 1,740,993 | 1,376,771 | |||||||
Valuation allowance | (1,740,993 | ) | (1,376,771 | ) | |||||
Deferred tax asset | $ | 8,888 | $ | 8,850 | |||||
The deferred tax asset was the result of an inventory provision and related reserve of $171,110 (RMB 1,075,510). Under Chinese tax laws, the Company is not entitled to a deduction for the provision until the inventory is completely discarded. This deferred tax asset was utilized by the Company in 2013 as the inventory was sold by the Company. | |||||||||
The Company has a net operating loss carry forward as follows: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
International (China) | $ | 4,408,135 | $ | 3,730,738 | |||||
United States | 2,555,835 | 1,776,346 | |||||||
$ | 6,963,970 | $ | 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 (loss) before taxes are as follows: | |||||||||
For the Nine Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
International (China) | $ | (677,397 | ) | $ | (1,377,908 | ) | |||
United States | (779,489 | ) | (221,451 | ) | |||||
(1,456,886 | ) | $ | (1,599,359 | ||||||
A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and Federal statutory rate for the nine months ended March 31, 2014 and 2013, respectively, are as follows: | |||||||||
2014 | 2013 | ||||||||
Federal statutory rate | 34 | % | 34 | % | |||||
State income taxes, net of federal benefit | (3.3 | ) | (3.3 | ) | |||||
Valuation allowance | (30.7 | ) | (30.7 | ) | |||||
Effective tax rate | - | % | - | % |
Concentrations
Concentrations | 9 Months Ended |
Mar. 31, 2014 | |
Concentrations [Abstract] | ' |
CONCENTRATIONS | ' |
NOTE M – CONCENTRATIONS | |
In the nine months ended March 31, 2014, three customers accounted for 91% of revenues. | |
In the nine months ended March 31, 2013, three customers accounted for 47% of revenues. | |
At March 31, 2013, two customers accounted for 26% of the accounts receivable. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 nine months ended March 31, 2014 and 2013: | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | - | $ | - | |||||
Total costs and expenses | - | (1,450,131 | ) | ||||||
Operating loss | - | (1,450,131 | ) | ||||||
Other expense | - | (20,082 | ) | ||||||
Provision for taxes | - | - | |||||||
Loss from discontinued operations | $ | - | $ | (1,470,213 | ) | ||||
The Company has retained $510,545 and $508,347 in contingent liabilities of Tonghua Linyuan at March 31, 2014 and June 30, 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2014 | |
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. This lease is currently operating on a month to month basis. | |
Rent expense was $33,973 and $50,314 for the nine months ended March 31, 2014 and 2013, respectively. |
Operating_Segments
Operating Segments | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
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. | |||||||||||||||||||||
Nine months ended March 31, 2014: | |||||||||||||||||||||
Parent | Ginseng | Continuing | Wine | Total | |||||||||||||||||
Company | Operations | ||||||||||||||||||||
Revenues | $ | - | $ | 2,551,181 | $ | 2,551,181 | $ | - | $ | 2,551,181 | |||||||||||
Net loss | (779,489 | ) | (677,397 | ) | (1,456,886 | ) | - | (1,456,886 | ) | ||||||||||||
Total assets | 20,534 | 11,584,586 | 11,605,120 | - | 11,605,120 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 1,231 | 89,010 | 90,241 | - | 90,241 | ||||||||||||||||
Interest expense | 33,404 | 490,419 | 523,823 | - | 523,823 | ||||||||||||||||
Expenditures for fixed assets | - | 6,175,349 | 6,175,349 | - | 6,175,349 | ||||||||||||||||
Impairment of ginseng crops and inventory | - | - | - | - | |||||||||||||||||
Nine months ended March 31, 2013: | |||||||||||||||||||||
Parent | Ginseng | Continuing | Wine | Total | |||||||||||||||||
Company | Operations | ||||||||||||||||||||
Revenues | $ | - | $ | 2,690,662 | $ | 2,690,662 | $ | - | $ | 2,690,662 | |||||||||||
Net loss | (221,451 | ) | (1,377,907 | ) | (1,599,359 | ) | (1,470,213 | ) | (3,069,572 | ) | |||||||||||
Total assets | 210,096 | 6,066,093 | 6,276,189 | 13,330 | 6,289,519 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 1,703 | 94,124 | 95,827 | 54,976 | 150,803 | ||||||||||||||||
Interest expense | 38,351 | 188,910 | 227,261 | 20,082 | 247,343 | ||||||||||||||||
Expenditures for fixed assets | - | 272 | - | - | 272 | ||||||||||||||||
Impairment of ginseng crops and inventory | - | 922,695 | 922,695 | 1,404,602 | 2,327,297 |
Subequent_Event
Subequent Event | 9 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBEQUENT EVENT | ' |
NOTE Q – SUBEQUENT EVENT | |
Subsequent to March 31, 2014, the Company returned machinery and equipment with a cost of $6,161,798 which was purchased during the nine months ended March 31, 2014, to the original seller. The lender of the loan dated October 29, 2013 with a carrying value of $6,011,506 at March 31, 2014 agreed to defer repayment until the Company receives the amounts due from the return of the machinery and equipment. |
Presentation_Nature_of_Busines1
Presentation, Nature of Business, and Going Concern (Policies) | 9 Months Ended |
Mar. 31, 2014 | |
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 10K 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 and nine months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. | |
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 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 renew the leases with the Chinese Government when the leases expired on December 31, 2013, since it no longer needed them for its business. In June 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 stores 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. Subsequent to March 31, 2014, the Company agreed to return the acquired machinery and equipment. | |
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 consolidated financial statements, the Company had an accumulated deficit of $10,864,299 as of March 31, 2014 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 consolidated 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 consolidated 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_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 | ' | ||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Buildings and improvements | $ | 1,462,915 | $ | 1,456,618 | |||||
Machinery and equipment | 6,551,302 | 387,826 | |||||||
Motor vehicles | 30,310 | 30,179 | |||||||
Office equipment | 25,094 | 25,021 | |||||||
8,069,621 | 1,899,644 | ||||||||
Less accumulated depreciation | (456,072 | ) | (369,254 | ) | |||||
$ | 7,613,549 | $ | 1,530,390 | ||||||
Schedule of depreciation for property and equipment | ' | ||||||||
Nine Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Depreciation Expense | $ | 85,429 | $ | 136,893 | |||||
Capitalized Ginseng Crops | - | 2,286 | |||||||
$ | 85,429 | $ | 139,179 |
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of inventory | ' | ||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 217,353 | $ | 213,209 | |||||
Finished goods | 46,189 | 46,100 | |||||||
Operating supplies | 4,371 | 4,352 | |||||||
$ | 267,913 | $ | 263,661 | ||||||
Ginseng_Crops_Tables
Ginseng Crops (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Ginseng Crops [Abstract] | ' | ||||||||
Schedule of analysis of ginseng crop costs | ' | ||||||||
March 31, | June 30, | ||||||||
2014 | 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 | - | 2,589 | |||||||
Other | 3,503 | 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) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Schedule of cost and related amortization of Intangible assets | ' | ||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Cost | $ | 18,263 | $ | 18,184 | |||||
Less accumulated amortization | (18,263 | ) | (13,404 | ) | |||||
$ | 0 | $ | 4,780 |
Provision_for_Income_Taxes_Tab
Provision for Income Taxes (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of deferred tax assets | ' | ||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Timing difference related to inventory provisions | $ | 8,888 | $ | 8,850 | |||||
Net operating losses | 1,740,993 | 1,376,771 | |||||||
Valuation allowance | (1,740,993 | ) | (1,376,771 | ) | |||||
Deferred tax asset | $ | 8,888 | $ | 8,850 | |||||
Schedule of net operating loss carry forward | ' | ||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
International (China) | $ | 4,408,135 | $ | 3,730,738 | |||||
United States | 2,555,835 | 1,776,346 | |||||||
$ | 6,963,970 | $ | 5,507,084 | ||||||
Schedule of components of income before taxes | ' | ||||||||
For the Nine Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
International (China) | $ | (677,397 | ) | $ | (1,377,908 | ) | |||
United States | (779,489 | ) | (221,451 | ) | |||||
(1,456,886 | ) | $ | (1,599,359 | ) | |||||
Schedule of effective tax rate reconciliation as a percentage of income before taxes and Federal statutory rate | ' | ||||||||
2014 | 2013 | ||||||||
Federal statutory rate | 34 | % | 34 | % | |||||
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) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Summary of the operations | ' | ||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | - | $ | - | |||||
Total costs and expenses | - | (1,450,131 | ) | ||||||
Operating loss | - | (1,450,131 | ) | ||||||
Other expense | - | (20,082 | ) | ||||||
Provision for taxes | - | - | |||||||
Loss from discontinued operations | $ | - | $ | (1,470,213 | ) |
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Schedule of business segments | ' | ||||||||||||||||||||
Parent | Ginseng | Continuing | Wine | Total | |||||||||||||||||
Company | Operations | ||||||||||||||||||||
Revenues | $ | - | $ | 2,551,181 | $ | 2,551,181 | $ | - | $ | 2,551,181 | |||||||||||
Net loss | (779,489 | ) | (677,397 | ) | (1,456,886 | ) | - | (1,456,886 | ) | ||||||||||||
Total assets | 20,534 | 11,584,586 | 11,605,120 | - | 11,605,120 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 1,231 | 89,010 | 90,241 | - | 90,241 | ||||||||||||||||
Interest expense | 33,404 | 490,419 | 523,823 | - | 523,823 | ||||||||||||||||
Expenditures for fixed assets | - | 6,175,349 | 6,175,349 | - | 6,175,349 | ||||||||||||||||
Impairment of ginseng crops and inventory | - | - | - | - | |||||||||||||||||
Nine months ended March 31, 2013: | |||||||||||||||||||||
Parent | Ginseng | Continuing | Wine | Total | |||||||||||||||||
Company | Operations | ||||||||||||||||||||
Revenues | $ | - | $ | 2,690,662 | $ | 2,690,662 | $ | - | $ | 2,690,662 | |||||||||||
Net loss | (221,451 | ) | (1,377,907 | ) | (1,599,359 | ) | (1,470,213 | ) | (3,069,572 | ) | |||||||||||
Total assets | 210,096 | 6,066,093 | 6,276,189 | 13,330 | 6,289,519 | ||||||||||||||||
Other significant items: | |||||||||||||||||||||
Depreciation and amortization | 1,703 | 94,124 | 95,827 | 54,976 | 150,803 | ||||||||||||||||
Interest expense | 38,351 | 188,910 | 227,261 | 20,082 | 247,343 | ||||||||||||||||
Expenditures for fixed assets | - | 272 | - | - | 272 | ||||||||||||||||
Impairment of ginseng crops and inventory | - | 922,695 | 922,695 | 1,404,602 | 2,327,297 |
Presentation_Nature_of_Busines2
Presentation, Nature of Business, and Going Concern (Details) | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Aug. 31, 2005 | Nov. 24, 2004 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 27, 2013 |
USD ($) | USD ($) | Yanbian Huaxing [Member] | Yanbian Huaxing [Member] | Yanbian Huaxing [Member] | Hong Kong Huaxia [Member] | Hong Kong Huaxia [Member] | Hong Kong Huaxia [Member] | |
ha | USD ($) | HKD | USD ($) | |||||
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 | ' | ' | ' | 880,000,000 | 880,000,000 | ' |
Registered stock, par value | ' | ' | ' | ' | ' | $1 | ' | ' |
Accumulated deficit | $10,864,299 | $9,407,413 | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) | 9 Months Ended |
Mar. 31, 2014 | |
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 $) | Mar. 31, 2014 | Jun. 30, 2013 |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | $8,069,621 | $1,899,644 |
Less accumulated depreciation | -456,072 | -369,254 |
Property and equipment, net | 7,613,549 | 1,530,390 |
Buildings and improvements [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 1,462,914 | 1,456,618 |
Machinery and equipment [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 6,551,302 | 387,826 |
Motor vehicles [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 30,310 | 30,179 |
Office equipment [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | $25,094 | $25,021 |
Property_and_Equipment_Details2
Property and Equipment (Details 2) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of depreciation for property and equipment | ' | ' |
Depreciation Expense | $85,429 | $136,893 |
Capitalized Ginseng Crops | ' | 2,286 |
Depreciation | $85,429 | $139,179 |
Property_and_Equipment_Details3
Property and Equipment (Details Textual) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property and Equipment (Textual) | ' | ' |
Depreciation and amortization | $85,429 | $139,179 |
Machinery and equipment, Carrying value | $6,161,798 | ' |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Schedule of inventory | ' | ' |
Raw materials | $217,353 | $213,209 |
Finished goods | 46,189 | 46,100 |
Operating supplies | 4,371 | 4,352 |
Inventory, net | $267,913 | $263,661 |
Inventory_Details_Textual
Inventory (Details Textual) | Jun. 30, 2013 | Jun. 30, 2013 |
USD ($) | 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 | ' | $24,870 | 153,000 | $16,255 | 100,000 | ' | ' |
Percentage of interest in non-controlling company | ' | 17.00% | 17.00% | 10.00% | 10.00% | ' | ' |
Amount require to invest for 10% interest | ' | ' | ' | 81,273 | 500,000 | ' | ' |
Amount of invested amount returned after termination of agreement | ' | ' | ' | ' | ' | $16,255 | 100,000 |
Number of companies in agreement | 3 | ' | ' | ' | ' | ' | ' |
Ginseng_Crops_Details
Ginseng Crops (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Jun. 30, 2013 | |
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 |
Capitalized costs net | -697,565 | -2,646,384 |
Ending Crop Costs | ' | 681,967 |
Less: Current portion | ' | ' |
Non-Current Portion of Crop Costs | ' | $681,967 |
Ginseng_Crops_Details_Textual
Ginseng Crops (Details Textual) | 9 Months Ended | 12 Months Ended | 1 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | |
USD ($) | USD ($) | Value of Mudanjian Ginseng farm [Member] | Value of Mudanjian Ginseng farm [Member] | |
acre | USD ($) | CNY | ||
sqm | sqm | |||
ha | ||||
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) | $1,075,640 | 6,754,675 |
Agreements_with_Farmers_Detail
Agreements with Farmers (Details) | 1 Months Ended | |||
Jan. 31, 2008 | Jan. 31, 2008 | Mar. 31, 2014 | Jun. 30, 2013 | |
USD ($) | 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 then 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 then 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 | ' | ' | $874,063 | $870,300 |
Intangible_Assets_Details
Intangible Assets (Details) (Patent rights [Member], USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Patent rights [Member] | ' | ' |
Schedule of cost and related amortization of Intangible assets | ' | ' |
Cost | $18,263 | $18,184 |
Less accumulated amortization | -18,263 | -13,404 |
Intangible asset, net | $0 | $4,780 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Intangible Assets (Textual) | ' | ' |
Amortization expense of intangible assets | $4,812 | $13,910 |
Loan_Payable_to_Financial_Inst1
Loan Payable to Financial Institution (Details) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 10, 2011 | Oct. 29, 2013 | Mar. 31, 2014 | Jun. 30, 2002 | Jun. 30, 2013 | |
USD ($) | 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 | ' | ' | $325,092 | ' | $323,693 |
Note_Payable_Building_Purchase1
Note Payable - Building Purchase (Details) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2011 | Oct. 29, 2013 | Jun. 30, 2011 | Dec. 31, 2010 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2002 | Jun. 30, 2012 | Jun. 24, 2011 | Jun. 24, 2011 | Mar. 02, 2011 | Mar. 02, 2011 | |
CNY | CNY | CNY | USD ($) | 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 | ' | ' | ' | ' | 162,546 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on August 29, 2013 | ' | ' | ' | ' | 162,546 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on December 20, 2013 | ' | ' | ' | ' | 162,546 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on August 29, 2014 | ' | ' | ' | ' | $812,731 | 5,000,000 | ' | ' | ' | ' | ' | ' |
Note_Payable_Fixed_Asset_Purch1
Note Payable - Fixed Asset Purchase (Details) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 10, 2011 | Oct. 29, 2013 | Oct. 29, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2002 | |
USD ($) | 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 | ' | ' | ' | 266,738 | 1,637,400 | ' |
Loan secured for machinery and equipment | ' | ' | ' | $6,161,798 | 37,908,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Related Party Transactions [Abstract] | ' | ' | ' |
Notes payable - related parties | $1,161,395 | ' | $1,279,982 |
Imputed interest | 64,773 | 98,112 | ' |
Receivables from related parties | $21,207 | ' | $37,355 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Schedule of deferred tax assets | ' | ' |
Timing difference related to inventory provisions | $8,888 | $8,850 |
Net operating losses | 1,740,993 | 1,376,771 |
Valuation allowance | -1,740,993 | -1,376,771 |
Deferred tax asset | $8,888 | $8,850 |
Provision_for_Income_Taxes_Det1
Provision for Income Taxes (Details 1) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Schedule of net operating loss carry forward | ' | ' |
International (China) | $4,408,135 | $3,730,738 |
United States | 2,555,835 | 1,776,346 |
Net operating loss carry forward | $6,963,970 | $5,507,084 |
Provision_for_Income_Taxes_Det2
Provision for Income Taxes (Details 2) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of components of income before taxes | ' | ' |
International (China) | ($677,397) | ($1,377,908) |
UNITED STATES | -779,489 | -221,451 |
Income before taxes | ($1,456,886) | ($1,599,359) |
Provision_for_Income_Taxes_Det3
Provision for Income Taxes (Details 3) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of effective tax rate reconciliation as a percentage of income before taxes and Federal statutory rate | ' | ' |
Federal statutory rate | 34.00% | 34.00% |
State income taxes, net of federal benefit | -3.30% | -3.30% |
Valuation allowance | -30.70% | -30.70% |
Effective tax rate | ' | ' |
Provision_for_Income_Taxes_Det4
Provision for Income Taxes (Details Textual) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | CNY | China [Member] | U.S. [Member] | |
Provision for Income Taxes (Textual) | ' | ' | ' | ' |
Period to carry forward net operating losses | ' | ' | '5 years | '20 years |
Operating loss expiration year | ' | ' | 30-Jun-13 | 30-Jun-27 |
Inventory provision and related reserve | $171,110 | 1,075,510 | ' | ' |
Concentrations_Details
Concentrations (Details) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Customers | Customers | |
Concentrations (Textual) | ' | ' |
Percentage revenue accounted by major customer | 91.00% | 47.00% |
Number of major customer accounted for revenues | 3 | 3 |
Percentage of accounts receivable accounted by major customer | ' | 26.00% |
Number of major customer accounted for accounts receivable | ' | 2 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of the operations | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total costs and expenses | ' | ' | ' | -1,450,131 |
Operating loss | ' | ' | ' | -1,450,131 |
Other expense | ' | ' | ' | -20,082 |
Provision for taxes | ' | ' | ' | ' |
Loss from discontinued operations | ' | ($1,407,018) | ' | ($1,470,213) |
Discontinued_Operations_Detail1
Discontinued Operations (Details Textuals) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Discontinued Operations (Textuals) | ' | ' |
Contingent liabilities | $510,545 | $508,347 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 9 Months Ended | ||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | 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 | 31-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 | $33,973 | $50,314 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | $497,943 | $2,551,181 | $2,690,662 | ' |
Net loss | -674,564 | -1,419,510 | -1,456,886 | -3,069,572 | ' |
Total assets | 11,605,120 | 6,289,519 | 11,605,120 | 6,289,519 | 5,367,231 |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | 29,075 | 37,101 | 90,241 | 95,827 | ' |
Interest expense | 131,590 | 67,565 | 523,823 | 227,261 | ' |
Expenditures for fixed assets | ' | ' | 6,175,349 | 272 | ' |
Impairment of ginseng crops and inventory | ' | ' | ' | 2,327,297 | ' |
Continuing Operations [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | 2,551,181 | 2,690,662 | ' |
Net loss | ' | ' | -1,456,886 | -1,599,359 | ' |
Total assets | 11,605,120 | 6,276,189 | 11,605,120 | 6,276,189 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 90,241 | 95,827 | ' |
Interest expense | ' | ' | 523,823 | 227,261 | ' |
Expenditures for fixed assets | ' | ' | 6,175,349 | ' | ' |
Impairment of ginseng crops and inventory | ' | ' | ' | 922,695 | ' |
Ginseng [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | 2,551,181 | 2,690,662 | ' |
Net loss | ' | ' | -677,397 | -1,377,907 | ' |
Total assets | 11,584,586 | 6,066,093 | 11,584,586 | 6,066,093 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 89,010 | 94,124 | ' |
Interest expense | ' | ' | 490,419 | 188,910 | ' |
Expenditures for fixed assets | ' | ' | 6,175,349 | 272 | ' |
Impairment of ginseng crops and inventory | ' | ' | ' | 922,695 | ' |
Wine [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | -1,470,213 | ' |
Total assets | ' | 13,330,000 | ' | 13,330,000 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | 54,976 | ' |
Interest expense | ' | ' | ' | 20,082 | ' |
Expenditures for fixed assets | ' | ' | ' | ' | ' |
Impairment of ginseng crops and inventory | ' | ' | ' | 1,404,602 | ' |
Parent Company [Member] | ' | ' | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Net loss | ' | ' | -779,489 | -221,451 | ' |
Total assets | 20,534 | 210,096 | 20,534 | 210,096 | ' |
Other significant items: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 1,231 | 1,703 | ' |
Interest expense | ' | ' | 33,404 | 38,351 | ' |
Expenditures for fixed assets | ' | ' | ' | ' | ' |
Impairment of ginseng crops and inventory | ' | ' | ' | ' | ' |
Operating_Segments_Details_Tex
Operating Segments (Details Textual) | 9 Months Ended |
Mar. 31, 2014 | |
Segment | |
Operating Segments (Textual) | ' |
Number of reportable segments | 2 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
Repayment of loan, Carrying value | $6,011,506 | ' |
Machinery and equipment cost | $6,161,798 | ' |