Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 13, 2014 | |
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 | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 44,397,297 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
CURRENT ASSETS | ' | ' |
Cash | $88,975 | $24,782 |
Accounts receivable, net | 1,028,358 | 1,077,506 |
Inventory | 332,098 | 233,412 |
Due from related parties | 20,650 | 11,900 |
Prepaid expenses | 66,275 | 73,745 |
Total Current Assets | 1,536,356 | 1,421,345 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $475,804 and $447,749 at September 30 and June 30, 2014, respectively | 1,430,594 | 1,458,558 |
OTHER ASSETS | ' | ' |
Ginseng crops, non-current portion | 6,721 | 6,721 |
Deposit on equipment | 5,929,750 | 5,929,461 |
Intangible assets-patents, net of accumulated amortization of $17,583 and $15,286 at September 30 and June 30, 2014, respectively | 3,986 | 2,975 |
Deferred income tax asset | 1,231 | 1,231 |
Total Assets | 8,908,638 | 8,820,291 |
CURRENT LIABILITIES | ' | ' |
Loan payable- equipment purchase | 5,928,331 | 5,928,042 |
Loan payable- building purchase | 1,300,284 | 1,300,221 |
Loans payable- other | 1,984,315 | 1,984,219 |
Notes payable - related parties | 1,312,945 | 1,389,124 |
Accounts payable | 2,239,874 | 1,768,153 |
Accrued expenses | 344,379 | 334,372 |
Taxes payable | 70,117 | 72,505 |
Payments received in advance | 261,684 | 261,671 |
Total Current Liabilities | 13,441,929 | 13,038,307 |
OTHER LIABILITIES | ' | ' |
Payable to farmers | 874,006 | 873,964 |
Liabilities of discontinued operations | 510,511 | 510,487 |
Total Liabilities | 14,826,446 | 14,422,758 |
COMMITMENTS AND CONTINGENCIES (NOTE O) | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Common Stock, $0.001 par value; 50,000,000 shares authorized; 44,397,297 shares issued and outstanding at September 30 and June 30, 2014, respectively | 44,398 | 44,398 |
Additional paid-in capital | 7,630,783 | 7,606,599 |
Accumulated deficit | -14,740,528 | -14,169,335 |
Accumulated other comprehensive income | 1,147,539 | 915,871 |
Total Stockholders' Deficit | -5,917,808 | -5,602,467 |
Total Liabilities and Stockholders' Deficit | $8,908,638 | $8,820,291 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Balance Sheets [Abstract] | ' | ' |
Accumulated depreciation | $475,804 | $447,749 |
Intangible assets-patents, net of accumulated amortization | $17,583 | $15,286 |
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 | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Statements Of Operations and Comprehensive Loss [Abstract] | ' | ' |
REVENUE | $5,242 | $62,393 |
COSTS AND EXPENSES | ' | ' |
Cost of goods sold | 2,901 | 6,654 |
Selling, general and administrative expenses | 317,505 | 260,335 |
Bad debt expense | ' | -39,210 |
Depreciation and amortization | 30,309 | 30,476 |
Total Costs and Expenses | 350,715 | 258,255 |
OTHER EXPENSE | ' | ' |
Interest expense | 225,720 | 60,020 |
Net Other Expense | 225,720 | 60,020 |
LOSS BEFORE INCOME TAXES | -571,193 | -255,882 |
PROVISION FOR INCOME TAXES | ' | ' |
NET LOSS | -571,193 | -255,882 |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' |
Translation Adjustment | 231,668 | 22,227 |
COMPREHENSIVE LOSS | ($339,525) | ($233,655) |
NET LOSS PER COMMON SHARE (Basic and diluted) | ($0.01) | ($0.01) |
WEIGHTED AVERAGE COMMON | ' | ' |
SHARES OUTSTANDING (Basic and diluted) | 44,397,297 | 44,397,297 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($571,193) | ($255,882) |
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' |
Depreciation and amortization | 30,309 | 30,482 |
Imputed interest | 24,184 | 21,436 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivable | 49,148 | -57,458 |
(Increase) decrease in inventory | -98,686 | 2,243 |
(Increase) decrease in ginseng crops | ' | -95 |
(Increase) decrease in prepaid expense | 7,470 | -67,859 |
(Increase) decrease in due from related parties | -8,750 | -36,333 |
Increase (decrease) in accounts payable | 471,721 | 460,061 |
Increase (decrease) in taxes payable | -2,388 | -1,454 |
Increase (decrease) in receivables in advance | 13 | 1,666 |
Increase (decrease) in accrued expenses | 10,007 | 573 |
Net cash provided by (used in) operating activities | -88,165 | 97,380 |
Cash Flows from Investing Activities: | ' | ' |
Net cash provided by (used in) investing activities | ' | ' |
Cash Flows from Financing Activities: | ' | ' |
Repayments of loans payable to related parties | -76,179 | -55,189 |
Net cash provided by (used in) financing activities | -76,179 | -55,189 |
Effect of exchange rate on cash | 228,537 | 20,563 |
Increase (decrease) in cash | 64,193 | 62,754 |
Cash at beginning of period | 24,782 | 19,454 |
Cash at end of period | 88,975 | 82,208 |
Cash paid for: | ' | ' |
Interest | ' | ' |
Income taxes | ' | ' |
Presentation_Nature_of_Busines
Presentation, Nature of Business and Going Concern | 3 Months Ended |
Sep. 30, 2014 | |
Presentation, Nature of Business, And Going Concern [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, 2014. 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 ended September 30, 2014, are not necessarily indicative of the results that may be expected for the year ending June 30, 2015. | |
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 hectare | |
(3,705 acres) of land used to grow ginseng. The Company had no operations prior to November 24, 2004. These leases expire through 2024. During the year ended June 30, 2014, the Forestry Bureau governing one of the farms approximating 700 hectare (1,730 acres) of land leased by Yanbian Huaxing notified the Company that this lease in no longer recognized. As a result, the Company is prevented from developing and planting ginseng in undeveloped areas of the farm. | |
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”). | |
On March 31, 2008 the Company acquired Tonghua Linyuan Grape Planting Co. Limited (“Tonghua Linyuan”) whose principal activity was 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. As of June 30, 2012, Tonghua Linyuan leased 750 acres of land on which the grapes were planted. 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. Accordingly, the Company has abandoned the vineyard and recorded a charge to operations of $872,658. The Company has also decided not to renew its leases with the Chinese Government. The Company will now purchase grapes in the open market to produce wine and grape juice. 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. | |
Substantially all of the Company’s operations are in the People’s Republic of China and Hong Kong. | |
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. All intercompany transactions have been eliminated in consolidation. | |
Going Concern | |
As indicated in the accompanying financial statements, the Company had net losses of $571,193 and $255,882 for the three months ended September 30, 2014 and 2013, respectively, and an accumulated deficit of $14,740,528 and working capital deficit of $11,905,573 at September 30, 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 generation of revenue through its businesses. Failure to raise adequate capital and generate adequate sales revenue 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 assurance that the revenue will be sufficient to enable the Company to develop business to a level at which it will generate profits and cash flow 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 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 | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE B – PROPERTY AND EQUIPMENT | |||||||||
Property and equipment is comprised of the following at: | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Buildings and improvements | $ | 1,462,820 | $ | 1,462,749 | |||||
Machinery and equipment | 388,177 | 388,159 | |||||||
Motor vehicles | 30,308 | 30,307 | |||||||
Office equipment | 25,093 | 25,092 | |||||||
1,906,398 | 1,906,307 | ||||||||
Less accumulated depreciation | (475,804 | ) | (447,749 | ) | |||||
$ | 1,430,594 | $ | 1,458,558 | ||||||
Substantially all of the property and equipment is located in China. | |||||||||
Total Depreciation was $28,014 and $28,279 for the three months ended September 30, 2014 and 2013, respectively. Depreciation is recorded in the financial statements as follows: | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Depreciation Expense | $ | 28,014 | $ | 28,185 | |||||
Capitalized Ginseng Crops | - | 94 | |||||||
$ | 28,014 | $ | 28,279 | ||||||
Depreciation expense is included within Deprecation and Amortization in the Consolidated Statements of Operations and Comprehensive Loss (unaudited). Capitalized Ginseng Crops is included in the consolidated Balance Sheets. |
Deposit_for_Equipment_Purchase
Deposit for Equipment Purchase | 3 Months Ended |
Sep. 30, 2014 | |
Deposit for Equipment Purchase [Abstract] | ' |
DEPOSIT FOR EQUIPMENT PURCHASE | ' |
NOTE C –DEPOSIT FOR EQUIPMENT PURCHASE | |
In November of 2013, the Company made a deposit of $5,929,750 (RMB 36,474,054) with a supplier for the purchase of equipment for the Companies ginseng farms. Prior to delivery of the equipment, the Company determined that this equipment was not best suited for its’ farms and cancelled the purchase. The deposit remains on hand with the supplier. The Company and supplier are negotiating for the delivery of different equipment or the return of the deposit. |
Inventory
Inventory | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
INVENTORY | ' | ||||||||
NOTE D – INVENTORY | |||||||||
Inventory is comprised of the following at: | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 183,545 | $ | 226,130 | |||||
Finished goods | 144,182 | 2,911 | |||||||
Operating supplies | 4,371 | 4,371 | |||||||
$ | 332,098 | $ | 233,412 | ||||||
At September 30, 2014 and June 30, 2014, there were no shipments of ginseng at customer locations awaiting inspection and approval that may be subject to invoicing. | |||||||||
Investments
Investments | 3 Months Ended |
Sep. 30, 2014 | |
Investments [Abstract] | ' |
INVESTMENTS | ' |
NOTE E – INVESTMENTS | |
In December 2010, the Company invested $24,868 (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. During the year ended June 30, 2014, the Company determined this investment was impaired as Zhonghsen ceased operations. As such, the Company recorded an impairment loss of $24,905 for the year ended June 30, 2014. | |
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 $81,264 (RMB 500,000) for a 10% interest in Jilin Jiliang by September 25, 2012. In September 2011, the Company invested $16,253 (RMB 100,000) in Jilin Jiliang. During the year ended June 30, 2013, Jilin Jiliang returned the $16,253 (RMB 100,000) investment to the Company | |
Ginseng_Crops
Ginseng Crops | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Ginseng Crops [Abstract] | ' | ||||||||
GINSENG CROPS | ' | ||||||||
NOTE F – 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 selects areas each year and tracks the costs expended each year by planting area. The Chinese government owns all of the land in China. | |||||||||
Currently, the Company has obtained leases from the Chinese government for approximately 1,500 hectare of land (approximately 3,705 acres) to grow ginseng, which were awarded in April and May 2005. These leases are for 20 years and the management of the Company believes that the leases will be renewed as they expire in different areas. However, there are no assurances that the Chinese government will continue to renew these leases in the future. The planting of new ginseng is dependent upon the Company’s cash flow and its ability to raise working capital. During the year ended June 30, 2014, the Forestry Bureau governing one of the farms approximating 700 hectare (1,730 acres) of land leased by Yanbian Huaxing notified the Company that this lease in no longer recognized. As a result, the Company is prevented from developing and planting ginseng in undeveloped areas of the farm. | |||||||||
The Company has planted approximately 287,984 square meters of land. The Company plans to plant, over the next 5years, 100,000 square meters, representing approximately 20,000 square meters per year. The Company plans on harvesting the existing 2,664 square meters of ginseng in 2017. | |||||||||
An analysis of ginseng crop costs for each of the applicable periods is as follows: | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Beginning Crop Costs | $ | 6,721 | $ | 681,967 | |||||
Currency Conversion Adjustment to Beginning Balance | - | - | |||||||
Capitalized Costs During Year: | |||||||||
Wages | - | 21,162 | |||||||
Fertilizer | - | - | |||||||
Field clearing and cultivation | - | - | |||||||
Farmer lease fee net of management fee | - | - | |||||||
Labor | - | - | |||||||
Irrigation | - | - | |||||||
Depreciation | - | 996 | |||||||
Other | - | 3,399 | |||||||
Total Capitalized Costs | - | 25,557 | |||||||
Less: | |||||||||
Cost of crops harvested | - | (700,803 | ) | ||||||
Impairment adjustment | - | - | |||||||
- | (700,803 | ) | |||||||
Ending Crop Costs | 6,721 | 6,721 | |||||||
Less: Current portion | - | - | |||||||
Non-Current Portion of Crop Costs | $ | 6,721 | $ | 6,721 | |||||
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 | 3 Months Ended |
Sep. 30, 2014 | |
Agreements With Farmers [Abstract] | ' |
AGREEMENTS WITH FARMERS | ' |
NOTE G – AGREEMENTS WITH FARMERS | |
The Company has executed agreements with a number of local farmers to grow, cultivate and harvest Ginseng utilizing the Company’s land grants. The farming contracts commenced in January 2008 and ended in 2013. 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. These costs are capitalized by the Company and included in the Ginseng Crop inventory, (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 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 also recorded a payable to the farmers for the net management fee due to the farmers. The liability at September 30, 2014 and June 30, 2014 was $874,006 and $873,964, respectively. The receivable and liability 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 | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
INTANGIBLE ASSETS | ' | ||||||||
NOTE H – INTANGIBLE ASSETS | |||||||||
Intangible assets consist of the patent rights for ginseng drinks. The cost and related amortization is as follows: | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Cost | $ | 21,569 | $ | 18,261 | |||||
Less accumulated amortization | (17,583 | ) | (15,286 | ) | |||||
$ | 3,986 | $ | 2,975 | ||||||
Amortization expense was $2,295 and $2,291 for the three months ended September 30, 2014 and 2013, respectively. |
Loan_Payable_to_Financial_Inst
Loan Payable to Financial Institution | 3 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
LOAN PAYABLE TO FINANCIAL INSTITUTION | ' |
NOTE I – LOAN PAYABLE TO FINANCIAL INSTITUTION | |
In 2002, the Company’s subsidiary, Tonghua Linyuan, 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 April 4, 2003. 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 has been accrued in subsequent periods. The loan is secured by the Company’s inventory and equipment. The loan balance at, September 30 2014 and June 30, 2014 was $325,071 and $325,055, respectively. The loan balance is included in Liabilities of Discontinued Operations on the accompanying consolidated Balance Sheet. | |
Loan_Payable_Building_Purchase
Loan Payable - Building Purchase | 3 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
LOAN PAYABLE - BUILDING PURCHASE | ' |
NOTE J – LOAN 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 $1,462,820 (RMB 9,000,000). On June 24, 2011, the Company made payment of $81,268 (RMB 500,000) leaving a balance of $1,381,552 (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 162,536) in September 2012; 1,000,000 RMB (USD 162, 536) on August 29, 2013; 1,000,000 RMB (USD 162, 536) on December 20, 2013 and 5,000,000 RMB (USD 812,676) on August 29, 2014. None of these payments were made by the Company and the note is thus in default. |
Loan_Payable_Equipment_Purchas
Loan Payable - Equipment Purchase | 3 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
LOAN PAYABLE - EQUIPMENT PURCHASE | ' |
NOTE K – LOAN PAYABLE – EQUIPMENT PURCHASE | |
On October 29, 2013, the Company borrowed $5,928,331 (RMB 36,474,054) in order to fund the acquisition of machinery and equipment by the Company. The loan term was to February 28, 2014, and the Company was to pay $211,606 (RMB 1,300,000) in interest over the life of the loan. The loan is secured by the assets of 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 deposit made to purchase equipment. The loan has not been repaid and is in default. See Note C for corresponding deposit for equipment purchase. |
Loan_Payable_Other
Loan Payable - Other | 3 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
LOAN PAYABLE - OTHER | ' |
NOTE L – LOAN PAYABLE – OTHER | |
The Company has loans with various individuals and finance companies totaling $1,984,315 (RMB 12,208,500) at September 30, 2014 and $1,984,219 (RMB 12,208,500) at June 30, 2014. These loans are payable on demand and bear interest at 3% per month |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE M - RELATED PARTY TRANSACTIONS | |
The Company had been financing its operations from 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 which are interest free, have no specific repayment date, and are unsecured. The funds received are evidenced by receipt of cash acknowledgments. At September 30, 2014 and June 30, 2014 funds borrowed to fund the current operations of the Company were $1,312,945 and $1,389,124, respectively. In accordance with FASB ASC 835-30, the Company has imputed an interest charge of $24,184 and $21,436 which has been recorded in the consolidated financial statements for the three months ended September 30, 2014 and 2013, respectively. | |
At September 30, 2014 and June 30, 2014, the Company had receivables from related parties amounting to$20,650 and $11,900, respectively. | |
Provision_for_Income_Taxes
Provision for Income Taxes | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Provision for Income Taxes [Abstract] | ' | ||||||||
PROVISION FOR INCOME TAXES | ' | ||||||||
NOTE N – 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: | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Timing difference related to inventory provisions | $ | 1,231 | $ | 1,231 | |||||
Net operating losses | 2,710,050 | 2,567,252 | |||||||
Valuation allowance | (2,710,050 | ) | (2,567,252 | ) | |||||
Deferred tax asset | $ | 1,231 | $ | 1,231 | |||||
The deferred tax asset is the result of an inventory provision and related reserve. Under Chinese tax laws, 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: | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
International (China) | $ | 7,702,974 | $ | 7,361,710 | |||||
United States | 3,137,225 | 2,907,296 | |||||||
$ | 10,840,199 | $ | 10,269,006 | ||||||
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 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 2027. | |||||||||
The components of income before taxes are as follows: | |||||||||
For the Three Months | |||||||||
Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
International (China) | $ | (341,264 | ) | $ | (178,093 | ) | |||
United States | (229,929 | ) | (77,729 | ) | |||||
$ | (571,193 | ) | $ | (255,822 | ) | ||||
A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and federal statutory rate for the three months ended September 30, 2014 and 2013, respectively, are as follows: | |||||||||
For the Three Months | |||||||||
Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Federal statutory rate | (34.0 | )% | (34.0 | )% | |||||
State income taxes, net of federal benefit | 3.3 | 3.3 | |||||||
Valuation allowance | 30.7 | 30.7 | |||||||
Earnings taxed at other than US statutory rate | - | - | |||||||
Effective tax rate | - | % | - | % |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Commitments and Contingencies [Abstract] | ' | |||||
COMMITMENTS AND CONTINGENCIES | ' | |||||
NOTE O – COMMITMENTS AND CONTINGENCIES | ||||||
The Company has employment agreements with various individuals in China. The following summarizes the contractual commitments under these agreements: | ||||||
September 30, | Commitment | |||||
2015 | $ | 50,308 | ||||
2016 | 41,283 | |||||
2017 | 17,066 | |||||
$ | 108,657 | |||||
The Company has one year leases for its corporate offices in China aggregating 200,727 RMB per year (USD $32,625) expiring on December 31, 2014. The commitments for these leases at September 30, 2014 was 50,182 RMB (USD $8,156). | ||||||
The Chinese government owns all the land in China. Currently, the Company has grants from the Chinese government for approximately 1,500 hectare 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. During the year ended June 30, 2014, the Forestry Bureau governing one of the farms approximating 700 hectare (1,730 acres) of land leased by Yanbian Huaxing notified the Company that this lease in no longer recognized. As a result, the Company is prevented from developing and planting ginseng in undeveloped areas of the farm. | ||||||
The Company had 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 sold this lease as part of the sale of the assets of Tonghua Linyuan. | ||||||
The Company has a lease to refrigerate and store fresh Ginseng, which is valid until terminated by the parties. The annual lease fee approximates $8,776 per year. | ||||||
Operating_Segments
Operating Segments | 3 Months Ended | ||||||||||||||||
Sep. 30, 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. | |||||||||||||||||
Three months ended September 30, 2014: | |||||||||||||||||
Parent | Ginseng | Wine | Total | ||||||||||||||
Company | |||||||||||||||||
Revenues | $ | - | $ | 5,242 | $ | - | $ | 5,242 | |||||||||
Net loss | (229,929 | ) | (341,264 | ) | - | (571,193 | ) | ||||||||||
Total assets | 66,500 | 8,842,138 | - | 8,908,638 | |||||||||||||
Other significant items: | |||||||||||||||||
Depreciation and amortization | 351 | 29,958 | - | 30,309 | |||||||||||||
Interest expense | 12,592 | 213,128 | - | 225,720 | |||||||||||||
Three months ended September 30, 2013: | |||||||||||||||||
Parent | Ginseng | Wine | Total | ||||||||||||||
Company | |||||||||||||||||
Revenues | $ | - | $ | 62,393 | $ | - | $ | 62,393 | |||||||||
Net loss | (77,729 | ) | (178,153 | ) | - | (255,882 | ) | ||||||||||
Total assets | 255,815 | 5,329,270 | - | 5,585,085 | |||||||||||||
Other significant items: | |||||||||||||||||
Depreciation and amortization | 453 | 30,023 | - | 30,476 | |||||||||||||
Interest expense | 11,019 | 49,001 | - | 60,020 | |||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Schedule of property and equipment | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Buildings and improvements | $ | 1,462,820 | $ | 1,462,749 | |||||
Machinery and equipment | 388,177 | 388,159 | |||||||
Motor vehicles | 30,308 | 30,307 | |||||||
Office equipment | 25,093 | 25,092 | |||||||
1,906,398 | 1,906,307 | ||||||||
Less accumulated depreciation | (475,804 | ) | (447,749 | ) | |||||
$ | 1,430,594 | $ | 1,458,558 | ||||||
Schedule of depreciation for property and equipment | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Depreciation Expense | $ | 28,014 | $ | 28,185 | |||||
Capitalized Ginseng Crops | - | 94 | |||||||
$ | 28,014 | $ | 28,279 | ||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of inventory | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 183,545 | $ | 226,130 | |||||
Finished goods | 144,182 | 2,911 | |||||||
Operating supplies | 4,371 | 4,371 | |||||||
$ | 332,098 | $ | 233,412 |
Ginseng_Crops_Tables
Ginseng Crops (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Ginseng Crops [Abstract] | ' | ||||||||
Schedule of analysis of ginseng crop costs | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Beginning Crop Costs | $ | 6,721 | $ | 681,967 | |||||
Currency Conversion Adjustment to Beginning Balance | - | - | |||||||
Capitalized Costs During Year: | |||||||||
Wages | - | 21,162 | |||||||
Fertilizer | - | - | |||||||
Field clearing and cultivation | - | - | |||||||
Farmer lease fee net of management fee | - | - | |||||||
Labor | - | - | |||||||
Irrigation | - | - | |||||||
Depreciation | - | 996 | |||||||
Other | - | 3,399 | |||||||
Total Capitalized Costs | - | 25,557 | |||||||
Less: | |||||||||
Cost of crops harvested | - | (700,803 | ) | ||||||
Impairment adjustment | - | - | |||||||
- | (700.803 | ) | |||||||
Ending Crop Costs | 6,721 | 6,721 | |||||||
Less: Current portion | - | - | |||||||
Non-Current Portion of Crop Costs | $ | 6,721 | $ | 6,721 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Schedule of cost and related amortization of Intangible assets | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Cost | $ | 21,569 | $ | 18,261 | |||||
Less accumulated amortization | (17,583 | ) | (15,286 | ) | |||||
$ | 3,986 | $ | 2,975 | ||||||
Provision_for_Income_Taxes_Tab
Provision for Income Taxes (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Provision for Income Taxes [Abstract] | ' | ||||||||
Schedule of deferred tax assets | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Timing difference related to inventory provisions | $ | 1,231 | $ | 1,231 | |||||
Net operating losses | 2,710,050 | 2,567,252 | |||||||
Valuation allowance | (2,710,050 | ) | (2,567,252 | ) | |||||
Deferred tax asset | $ | 1,231 | $ | 1,231 | |||||
Schedule of net operating loss carry forward | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
International (China) | $ | 7,702,974 | $ | 7,361,710 | |||||
United States | 3,137,225 | 2,907,296 | |||||||
$ | 10,840,199 | $ | 10,269,006 | ||||||
Schedule of components of income before taxes | ' | ||||||||
For the Three Months | |||||||||
Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
International (China) | $ | (341,264 | ) | $ | (178,093 | ) | |||
United States | (229,929 | ) | (77,729 | ) | |||||
$ | (571,193 | ) | $ | (255,822 | ) | ||||
Schedule of effective tax rate reconciliation as a percentage of income before taxes and Federal statutory rate | ' | ||||||||
For the Three Months | |||||||||
Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Federal statutory rate | (34.0 | )% | (34.0 | )% | |||||
State income taxes, net of federal benefit | 3.3 | 3.3 | |||||||
Valuation allowance | 30.7 | 30.7 | |||||||
Earnings taxed at other than US statutory rate | - | - | |||||||
Effective tax rate | - | % | - | % | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Commitments and Contingencies [Abstract] | ' | |||||
Schedule of contractual commitments | ' | |||||
September 30, | Commitment | |||||
2015 | $ | 50,308 | ||||
2016 | 41,283 | |||||
2017 | 17,066 | |||||
$ | 108,657 |
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||
Schedule of business segments | ' | ||||||||||||||||
Three months ended September 30, 2014: | |||||||||||||||||
Parent | Ginseng | Wine | Total | ||||||||||||||
Company | |||||||||||||||||
Revenues | $ | - | $ | 5,242 | $ | - | $ | 5,242 | |||||||||
Net loss | (229,929 | ) | (341,264 | ) | - | (571,193 | ) | ||||||||||
Total assets | 66,500 | 8,842,138 | - | 8,908,638 | |||||||||||||
Other significant items: | |||||||||||||||||
Depreciation and amortization | 351 | 29,958 | - | 30,309 | |||||||||||||
Interest expense | 12,592 | 213,128 | - | 225,720 | |||||||||||||
Three months ended September 30, 2013: | |||||||||||||||||
Parent | Ginseng | Wine | Total | ||||||||||||||
Company | |||||||||||||||||
Revenues | $ | - | $ | 62,393 | $ | - | $ | 62,393 | |||||||||
Net loss | (77,729 | ) | (178,153 | ) | - | (255,882 | ) | ||||||||||
Total assets | 255,815 | 5,329,270 | - | 5,585,085 | |||||||||||||
Other significant items: | |||||||||||||||||
Depreciation and amortization | 453 | 30,023 | - | 30,476 | |||||||||||||
Interest expense | 11,019 | 49,001 | - | 60,020 | |||||||||||||
Presentation_Nature_of_Busines1
Presentation, Nature of Business and Going Concern (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 31, 2005 | Nov. 24, 2004 | Sep. 30, 2014 | Jun. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 27, 2013 | |
USD ($) | USD ($) | USD ($) | Yanbian Huaxing [Member] | Yanbian Huaxing [Member] | Yanbian Huaxing [Member] | Tonghua Linyuan [Member] | Tonghua Linyuan [Member] | Hong Kong Huaxia [Member] | Hong Kong Huaxia [Member] | Hong Kong Huaxia [Member] | |
acre | USD ($) | acre | USD ($) | HKD | USD ($) | ||||||
ha | |||||||||||
Organization, Consolidation and Presentation of Financial Statements (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ($571,193) | ($255,882) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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) | ' | ' | ' | 700 | ' | ' | ' | ' | ' | ' | ' |
Land used to grow ginseng (acres) | ' | ' | ' | 1,730 | ' | ' | ' | 750 | ' | ' | ' |
Operating leases description | ' | ' | ' | 'The Company had no operations prior to November 24, 2004. | ' | ' | ' | ' | ' | ' | ' |
Charge to operations expenses | ' | ' | ' | ' | ' | ' | 872,658 | ' | ' | ' | ' |
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 | 14,740,528 | ' | 14,169,335 | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital deficit | ' | ' | $11,905,573 | ' | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | $1,906,398 | $1,906,307 |
Less accumulated depreciation | -475,804 | -447,749 |
Property and equipment, net | 1,430,594 | 1,458,558 |
Buildings and improvements [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 1,462,820 | 1,462,749 |
Machinery and equipment [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 388,177 | 388,159 |
Motor vehicles [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | 30,308 | 30,307 |
Office equipment [Member] | ' | ' |
Schedule of property and equipment | ' | ' |
Property and equipment, gross | $25,093 | $25,092 |
Property_and_Equipment_Details1
Property and Equipment (Details 1) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of depreciation for property and equipment | ' | ' |
Depreciation Expense | $28,014 | $28,185 |
Capitalized Ginseng Crops | ' | 94 |
Depreciation | $28,014 | $28,279 |
Property_and_Equipment_Details2
Property and Equipment (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property and Equipment (Textual) | ' | ' |
Depreciation | $28,014 | $28,279 |
Deposit_for_Equipment_Purchase1
Deposit for Equipment Purchase (Details) | Nov. 30, 2013 | Nov. 30, 2013 |
USD ($) | CNY | |
Deposit for Equipment Purchase (Textual) | ' | ' |
Deposit Assets | $5,929,750 | 36,474,054 |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Schedule of inventory | ' | ' |
Raw materials | $183,545 | $226,130 |
Finished goods | 144,182 | 2,911 |
Operating supplies | 4,371 | 4,371 |
Inventory, net | $332,098 | $233,412 |
Investment_Details
Investment (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Jun. 30, 2014 | Sep. 30, 2011 | Sep. 30, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | |
Company | Changchun Zhongshen Beverage Co. Ltd. [Member] | Changchun Zhongshen Beverage Co. Ltd. [Member] | Changchun Zhongshen Beverage Co. Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | Jiliang Beverage Investment Management Co., Ltd. [Member] | |
USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | ||
Investments (Textual) | ' | ' | ' | ' | ' | ' | ' | ' |
Amount invested in non-controlling companies | ' | $24,868 | 153,000 | ' | $16,253 | 100,000 | ' | ' |
Percentage of interest in non-controlling company | ' | 17.00% | 17.00% | ' | 10.00% | 10.00% | ' | ' |
Amount require to invest for 10% interest | ' | ' | ' | ' | 81,264 | 500,000 | ' | ' |
Amount of invested amount returned after termination of agreement | ' | ' | ' | ' | ' | ' | 16,253 | 100,000 |
Number of companies in agreement | 3 | ' | ' | ' | ' | ' | ' | ' |
Investment Gain (Loss) | ' | ' | ' | $24,905 | ' | ' | ' | ' |
Ginseng_Crops_Details
Ginseng Crops (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Schedule of analysis of ginseng crop costs | ' | ' |
Beginning Crop Costs | $6,721 | $681,967 |
Currency Conversion Adjustment to Beginning Balance | ' | ' |
Capitalized Costs During Year: | ' | ' |
Wages | ' | 21,162 |
Fertilizer | ' | ' |
Field clearing and cultivation | ' | ' |
Farmer lease fee net of management fee | ' | ' |
Labor | ' | ' |
Irrigation | ' | ' |
Depreciation | ' | 996 |
Other | ' | 3,399 |
Total Capitalized Costs | ' | 25,557 |
Less: | ' | ' |
Cost of crops harvested | ' | -700.803 |
Impairment adjustment | ' | ' |
Capitalized costs net | ' | -700.803 |
Ending Crop Costs | 6,721 | 6,721 |
Less: Current portion | ' | ' |
Non-Current Portion of Crop Costs | $6,721 | $6,721 |
Ginseng_Crops_Details_Textual
Ginseng Crops (Details Textual) (USD $) | 3 Months Ended |
Sep. 30, 2014 | |
acre | |
sqm | |
ha | |
Ginseng Crops (Textual) | ' |
Growth period before harvest | '5 to 6 years |
Period for improved harvest and seedling yields | '8 years |
Land grants from the Chinese government (in hectare) | 1,500 |
Land grants from the Chinese government (in acres) | 3,705 |
Land leased by Yanbian Huaxing (in hectare) | 700 |
Land leased by Yanbian Huaxing (in acres) | 1,730 |
Period for land grants | '20 years |
Land planted (in square meters) | 287,984 |
Estimated future period for planting land | '5 years |
Estimated future land to be planted (in square meters) | 100,000 |
Estimated land to be planted per year (in square meters) | 20,000 |
Land to be harvested for ginseng in succeeding five years (in square meters) | 2,664 |
Impairment adjustment | ' |
Agreements_with_Farmers_Detail
Agreements with Farmers (Details) | 72 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | |
USD ($) | 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 | ' | ' | ' |
Long-term payable as a management fee due to the farmers | ' | ' | $874,006 | $873,964 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Schedule of cost and related amortization of Intangible assets | ' | ' |
Less accumulated amortization | ($17,583) | ($15,286) |
Patent rights [Member] | ' | ' |
Schedule of cost and related amortization of Intangible assets | ' | ' |
Cost | 21,569 | 18,261 |
Less accumulated amortization | -17,583 | -15,286 |
Intangible asset, net | $3,986 | $2,975 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Intangible Assets (Textual) | ' | ' |
Amortization expense of intangible assets | $2,295 | $2,291 |
Loan_Payable_to_Financial_Inst1
Loan Payable to Financial Institution (Details) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 10, 2011 | Oct. 29, 2013 | Sep. 30, 2014 | Jun. 30, 2002 | Jun. 30, 2014 | |
USD ($) | CNY | USD ($) | |||
Loan Payable to Financial Institution (Textual) | ' | ' | ' | ' | ' |
Loans Payable | ' | ' | ' | 2,000,000 | ' |
Interest rate on loan | ' | ' | 3.00% | 6.33% | ' |
Term of loan | 12-Aug-12 | 28-Feb-14 | ' | 4-Apr-03 | ' |
Debt instrument, interest payment terms | ' | ' | 'Interest has been paid on the loan through June 30, 2009 and has been accrued in subsequent periods. | ' | ' |
Loan payable to financial institution | ' | ' | $325,071 | ' | $325,055 |
Loan_Payable_Building_Purchase1
Loan Payable - Building Purchase (Details) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2011 | Oct. 29, 2013 | Jun. 30, 2011 | Dec. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2002 | Jun. 30, 2012 | Jun. 24, 2011 | Jun. 24, 2011 | Mar. 02, 2011 | Mar. 02, 2011 | |
CNY | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | USD ($) | CNY | |||
Note Payable - Building Purchase (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of office and warehouse facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,462,820 | 9,000,000 |
Amount paid for office and warehouse facilities | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | 81,268 | 500,000 | ' | ' |
Unpaid amount for office and warehouse facilities | ' | ' | ' | ' | ' | ' | ' | ' | 1,381,552 | 8,500,000 | ' | ' |
Loan maturity date | 12-Aug-12 | 28-Feb-14 | ' | ' | ' | ' | 4-Apr-03 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | 162,536 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on August 29, 2013 | ' | ' | ' | ' | 162,536 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on December 20, 2013 | ' | ' | ' | ' | 162,536 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Office and warehouse loan to be repay on August 29, 2014 | ' | ' | ' | ' | $812,676 | 5,000,000 | ' | ' | ' | ' | ' | ' |
Loan_Payable_Equipment_Purchas1
Loan Payable - Equipment Purchase (Details) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
Sep. 10, 2011 | Oct. 29, 2013 | Oct. 29, 2013 | Jun. 30, 2002 | |
USD ($) | CNY | |||
Notes Payable Equipment Purchase (Textual) | ' | ' | ' | ' |
Payments to acquire machinery and equipment | ' | $5,928,331 | 36,474,054 | ' |
Term of loan | 12-Aug-12 | 28-Feb-14 | 28-Feb-14 | 4-Apr-03 |
Interest paid for loan | ' | $211,606 | 1,300,000 | ' |
Loan_Payable_Other_DetailsText
Loan Payable - Other (DetailsTextual) | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2002 |
USD ($) | CNY | USD ($) | CNY | ||
Note Payable-Other | ' | ' | ' | ' | ' |
Loan payable- building purchase | $1,984,315 | 12,208,500 | $1,984,219 | 12,208,500 | ' |
Interest rate | 3.00% | 3.00% | ' | ' | 6.33% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Related Party Transactions (Textual) | ' | ' | ' |
Notes payable - related parties | $1,312,945 | ' | $1,389,124 |
Imputed interest | 24,184 | 21,436 | ' |
Receivables from related parties | $20,650 | ' | $11,900 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Schedule of deferred tax assets | ' | ' |
Timing difference related to inventory provisions | $1,231 | $1,231 |
Net operating losses | 2,710,050 | 2,567,252 |
Valuation allowance | -2,710,050 | -2,567,252 |
Deferred tax asset | $1,231 | $1,231 |
Provision_for_Income_Taxes_Det1
Provision for Income Taxes (Details 1) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Schedule of net operating loss carry forward | ' | ' |
International (China) | $7,702,974 | $7,361,710 |
United States | 3,137,225 | 2,907,296 |
Net operating loss carry forward | $10,840,199 | $10,269,006 |
Provision_for_Income_Taxes_Det2
Provision for Income Taxes (Details 2) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of components of income before taxes | ' | ' |
International (China) | ($341,264) | ($178,093) |
United States | -229,929 | -77,729 |
Income before taxes | ($571,193) | ($255,822) |
Provision_for_Income_Taxes_Det3
Provision for Income Taxes (Details 3) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 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% |
Earnings taxed at other than US statutory rate | ' | ' |
Effective tax rate | ' | ' |
Provision_for_Income_Taxes_Det4
Provision for Income Taxes (Details Textual) | 3 Months Ended |
Sep. 30, 2014 | |
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 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 |
Schedule of contractual commitments | ' |
2015 | $50,308 |
2016 | 41,283 |
2017 | 17,066 |
Total | $108,657 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textuals) | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
USD ($) | CNY | Yanbian Huaxing [Member] | Chinese Government [Member] | Representative of group one farmer [Member] | Representative of group one farmer [Member] | Refrigeration and storage [Member] | Corporate Offices [Member] | Corporate Offices [Member] | |
acre | ha | USD ($) | CNY | USD ($) | USD ($) | CNY | |||
ha | acre | acre | acre | ||||||
Commitments and Contingencies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration of leases | ' | ' | ' | ' | 31-Dec-14 | 31-Dec-14 | ' | 31-Dec-14 | 31-Dec-14 |
Term of Lease | ' | ' | ' | ' | '15 years | '15 years | ' | '1 year | '1 year |
Annual lease fee | ' | ' | ' | ' | $29,600 | 187,500 | $8,776 | ' | ' |
Land used to grow ginseng (acres) | ' | ' | 1,730 | 3,705 | 750 | 750 | ' | ' | ' |
Commitments for the leases | $8,156 | 50,182 | ' | ' | ' | ' | ' | $32,625 | 200,727 |
Land used to grow ginseng (hectare) | ' | ' | 700 | 1,500 | ' | ' | ' | ' | ' |
Grant period of lease | ' | ' | ' | '20 years | ' | ' | ' | ' | ' |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Summary of segments reporting information | ' | ' | ' |
Revenues | $5,242 | $62,393 | ' |
Net loss | -571,193 | -255,882 | ' |
Total assets | 8,908,638 | 5,585,085 | 8,820,291 |
Other significant items: | ' | ' | ' |
Depreciation and amortization | 30,309 | 30,476 | ' |
Interest expense | 225,720 | 60,020 | ' |
Parent Company [Member] | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' |
Revenues | ' | ' | ' |
Net loss | -229,929 | -77,729 | ' |
Total assets | 66,500 | 255,815 | ' |
Other significant items: | ' | ' | ' |
Depreciation and amortization | 351 | 453 | ' |
Interest expense | 12,592 | 11,019 | ' |
Ginseng [Member] | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' |
Revenues | 5,242 | 62,393 | ' |
Net loss | -341,264 | -178,153 | ' |
Total assets | 8,842,138 | 5,329,270 | ' |
Other significant items: | ' | ' | ' |
Depreciation and amortization | 29,958 | 30,023 | ' |
Interest expense | 213,128 | 49,001 | ' |
Wine [Member] | ' | ' | ' |
Summary of segments reporting information | ' | ' | ' |
Revenues | ' | ' | ' |
Net loss | ' | ' | ' |
Total assets | ' | ' | ' |
Other significant items: | ' | ' | ' |
Depreciation and amortization | ' | ' | ' |
Interest expense | ' | ' | ' |