Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Aug. 20, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Organic Agricultural Co Ltd | |
Entity Central Index Key | 0001749849 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Common Stock, Shares Outstanding | 11,724,836 | |
Entity File Number | 0-56168 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 282,496 | $ 240,834 |
Accounts receivable | 2,082 | 5,212 |
Due from related parties | 3,442 | |
Prepaid expenses | 63,124 | 48,789 |
Inventories | 26,336 | 56,610 |
Other receivables | 7,074 | 13,105 |
Current assets, discontinued operations (Note 3) | 558,425 | |
Total current assets | 384,554 | 922,975 |
Property plant and equipment, net | 3,804 | 4,498 |
Operating lease right-of-use assets | 16,124 | 25,727 |
Non-current assets, discontinued operations (Note 3) | 1,981,547 | |
Total assets | 404,482 | 2,934,747 |
Current liabilities: | ||
Accounts payable and accrued expenses | 52,762 | 69,437 |
Customer deposits | 108,378 | 88,131 |
Due to related parties | 44,427 | 84,288 |
Operating lease liabilities (current) | 18,682 | 18,630 |
Other payables | 896 | 8,411 |
Current liabilities, discontinued operations (Note 3) | 335,405 | |
Total current liabilities | 225,145 | 604,302 |
Non-current liabilities, discontinued operations (Note 3) | 1,424,600 | |
Total liabilities | 225,145 | 2,028,902 |
Shareholders' equity | ||
Common stock; $0.001 par value, 74,000,000 shares authorized; 11,724,836 and 11,693,836 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively | 11,725 | 11,694 |
Additional paid-in capital | 2,115,261 | 2,612,954 |
(Deficit) | (1,963,753) | (1,752,671) |
Other comprehensive income | 16,104 | 9,891 |
Total shareholders' equity of the Company | 179,337 | 881,868 |
Non-controlling interest | 23,977 | |
Total shareholders' equity | 179,337 | 905,845 |
Total liabilities and shareholders' equity | $ 404,482 | $ 2,934,747 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 74,000,000 | 74,000,000 |
Common stock, issued | 11,724,836 | 11,693,836 |
Common stock, outstanding | 11,724,836 | 11,693,836 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 68,528 | $ 27,377 |
Cost of sales | 39,349 | 15,050 |
Gross profit | 29,179 | 12,327 |
Selling, general and administrative expenses | 61,854 | 123,564 |
Operating (loss) | (32,675) | (111,237) |
Other income (loss) | 382 | |
(Loss) before provision for income taxes | (32,293) | (111,237) |
Provision for income taxes | ||
Net (loss) from continuing operations | (32,293) | (111,237) |
(Loss) on the sale of discontinued operations, net of income taxes | (941,819) | |
Income (loss) from discontinued operations, net of income taxes (Note 3) | 743 | (7,392) |
Total (loss) from discontinued operations | (941,076) | (7,392) |
Net (loss) | (973,369) | (118,629) |
Less: net income attributable to non-controlling interests | 364 | (3,622) |
Net (loss) attributable to common shareholders | (973,733) | (115,007) |
Amounts attributable to controlling interest: | ||
Net (loss) from continuing operations | (32,293) | (111,237) |
Net income (loss) from discontinued operations | $ (941,440) | $ (3,770) |
Earnings per share continuing operations – basic and diluted | $ 0 | $ (0.01) |
Earnings per share discontinued operations – basic and diluted | (0.08) | 0 |
Basic and diluted (loss) per share | $ (0.08) | $ (0.01) |
Weighted average number of shares outstanding- basic and diluted | 11,718,682 | 11,173,274 |
Other comprehensive (loss): | ||
Net (loss) | $ (973,369) | $ (118,629) |
Foreign currency translation adjustment | (2,958) | (598) |
Comprehensive (loss) | (976,327) | (119,227) |
Less: comprehensive income attributable to non-controlling interests | 801 | (6,646) |
Comprehensive (loss) attributable to the common shareholders | $ (977,128) | $ (112,581) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Common stock | Additional Paid-in Capital | (Deficit) | Other Comprehensive Income (Loss) | Total Shareholders' Equity | Non-controlling Interest | Total |
Balance at Mar. 31, 2019 | $ 11,168 | $ 1,833,730 | $ (1,278,133) | $ (1,473) | $ 565,292 | $ 3,759 | $ 569,051 |
Balance, Shares at Mar. 31, 2019 | 11,167,736 | ||||||
Net (loss) | (115,007) | (115,007) | (3,622) | (118,629) | |||
Sale of common shares | $ 56 | 72,744 | 72,800 | 72,800 | |||
Sale of common shares, Shares | 56,000 | ||||||
Foreign currency translation adjustment | 2,426 | 2,426 | (3,024) | (598) | |||
Balance at Jun. 30, 2019 | $ 11,224 | 1,906,474 | (1,393,140) | 953 | 525,511 | (2,887) | 522,624 |
Balance, Shares at Jun. 30, 2019 | 11,223,736 | ||||||
Balance at Mar. 31, 2020 | $ 11,694 | 2,612,954 | (1,752,671) | 9,891 | 881,868 | 23,977 | 905,845 |
Balance, Shares at Mar. 31, 2020 | 11,693,836 | ||||||
Net (loss) | (973,733) | (973,733) | 364 | (973,369) | |||
Sale of common shares | $ 31 | 46,469 | 46,500 | 46,500 | |||
Sale of common shares, Shares | 31,000 | ||||||
Foreign currency translation adjustment | (3,395) | (3,395) | 437 | (2,958) | |||
Divestment of Lvxin | (544,162) | 762,651 | 9,608 | 228,097 | (24,778) | 203,319 | |
Balance at Jun. 30, 2020 | $ 11,725 | $ 2,115,261 | $ (1,963,753) | $ 16,104 | $ 179,337 | $ 179,337 | |
Balance, Shares at Jun. 30, 2020 | 11,724,836 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net (loss) from continuing operations | $ (32,293) | $ (111,237) |
Net income from discontinued operations | (941,076) | (7,392) |
Depreciation and amortization | 705 | 1,012 |
Changes in operating assets and liabilities for sale of discontinued operations | 941,819 | |
Changes in operating assets and liabilities | 29,363 | 66,323 |
Net cash (used in) operating activities | (1,482) | (51,294) |
Cash Flows from Investing Activities | ||
Divestment of Lvxin | (1,343) | |
Net cash (used in) investing activities | (1,343) | |
Cash Flows from Financing Activities | ||
Proceeds from sale of common stock | 38,900 | 20,012 |
Proceeds from related parties loans | 32,206 | |
Net cash provided by financing activities | 38,900 | 52,218 |
Effect of exchange rate fluctuations on cash and cash equivalents | 4,247 | (10,351) |
Net increase (decrease) in cash and cash equivalents | 40,322 | (9,427) |
Cash and cash equivalents, beginning of year-continuing operations | 240,834 | 11,695 |
Cash and cash equivalents, beginning of year-discontinued operations | 1,340 | 1,258 |
Cash and cash equivalents, beginning of year | 242,174 | 12,953 |
Cash and cash equivalents, end of year-continuing operations | 282,496 | 1,887 |
Cash and cash equivalents, end of year-discontinued operations | 1,639 | |
Cash and cash equivalents, end of year | 282,496 | 3,526 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | ||
Cash paid for interest | ||
Supplemental disclosure of non-cash activities: | ||
(Loss) on sale of discontinued operations | (941,819) | |
Divestment of Lvxin | 203,319 | |
Operating ROU assets obtained in exchange for lease liabilities | $ 18,682 | $ 2,208,473 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organic Agricultural Company Limited ("Organic Agricultural", the "Company", "we" or "us") was incorporated in the State of Nevada on April 17, 2018. The Company, through its subsidiaries with headquarters in Harbin, China, sells paddy and selenium-enriched paddy products, rice and other agricultural products. At June 30, 2020, the Company's subsidiaries were: ● Organic Agricultural (Samoa) Co., Ltd. ( Organic Agricultural Samoa ), a limited company incorporated in Samoa on December 15, 2017, is wholly owned by Organic Agricultural. Organic Agricultural Samoa owns all of the outstanding shares of capital stock of Organic Agricultural Company Limited (Hong Kong). ● Organic Agricultural Company Limited (Hong Kong) ( Organic Agricultural HK ), which was established on December 6, 2017 under the laws of Hong Kong, is wholly owned by Organic Agricultural Samoa. Organic Agricultural HK owns all of the registered equity of Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited. ● Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited. ( Tianci Liangtian ), a company incorporated in Heilongjiang, China on November 2, 2017, is wholly owned by Organic Agricultural HK. Tianci Liangtian owned all of the registered equity of Heilongjiang Yuxinqi Agricultural Technology Development Company Limited. ● Heilongjiang Yuxinqi Agricultural Technology Development Company Limited ( Yuxinqi ), a company incorporated in Heilongjiang, China on February 5, 2018, is wholly owned by Tianci Liangtian. Yuxinqi sells agricultural products, including paddy and other crops, to customers. Reorganization On May 16, 2018, the Company completed a corporate reorganization to combine several controlled entities (now referred to as the "subsidiaries") into Organic Agricultural. The specific transactions related to this reorganization are as follows: On March 31, 2017, Hao Shuping and the shareholders of Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative ("Lvxin") signed an Equity Transfer Agreement, whereby shareholders of Lvxin transferred 51% of the controlling interest in Lvxin to Hao Shuping. Hao Shuping agreed to pay the Lvxin shareholders RMB 2,029,586 (US$305,472) in cash and cause the company that would become Organic Agricultural to issue to them 152,736 shares (valued at US$152,736). Hao Shuping and the shareholders of Lvxin also signed an irrevocable supplemental agreement that gave Hao Shuping voting and managerial control over Lvxin. By June 22, 2018, Tianci Liangtian paid all of the consideration to Lvxin's former shareholders. On January 1, 2018, pursuant to the Equity Transfer Agreement between Hao Shuping and Tianci Liangtian, Hao Shuping transferred his 51% controlling interest in Lvxin to Tianci Liangtian. As control of both entities resided with Hao Shuping, we accounted for the combination of Lvxin with Tianci Liangtian as a transaction between entities under common control. On January 8, 2018, the shareholders of Tianci Liangtian transferred ownership of Tianci Liangtian to Organic Agricultural HK, which is wholly owned by Organic Agricultural Samoa. On May 16, 2018, the Company issued 10,000,000 shares of its common stock, par value $0.001 to the shareholders of Organic Agricultural Samoa, in exchange for 100% of the outstanding shares of Organic Agricultural Samoa (the "Share Exchange"). As a result of the Share Exchange, Hao Shuping acquired 48.8% of the Company's outstanding shares. Prior to the Share Exchange, Hao Shuping controlled Lvxin and Tianci Liangtian. Therefore, the Share Exchange was accounted for as a business combination of entities under common control in accordance with ASC 805-50-30-5. Accordingly, the assets and liabilities of the Company and its subsidiaries are presented at their carrying values at the date of the transaction; the Company's historical stockholders' equity was retroactively restated to the first period presented, as the acquisition of Organic Agricultural Samoa, Organic Agricultural HK, Tianci Liangtian and Lvxin was treated as a combination of entities under common control. On April 24, 2020 Tianci Liangtian entered into an Equity Transfer Agreement providing for the transfer to Lou Zhengui of Tianci's 51% interest in the equity of Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative. The Agreement transferred the equity to Lou Zhengui as of April 30, 2020. Tianci Liangtian retained responsibility for the liabilities incurred by Lvxin prior to April 30, 2020, including debt of 257,731 RMB (approx. US$36,380) owed by Lvxin to Yuxingqi. Tianci Liangtian also waived a debt of 3,672,002 RMB (approx. US$518,321) owed by Lvxin to Tianci Liangtian. In exchange for the 51% interest in Lvxin, Lou Zhengui assumed the obligation to satisfy a debt of 300,000 RMB (approx. US$42,350) owed by Tianci Liangtian to Hao Shuping, a member of the Registrant's Board of Directors. The business of Lvxin is growing paddy rice. The divestment of Lvxin by Tianci will enable Tianci to focus on its other business: processing and marketing food stuffs. In accordance with U.S. GAAP, the financial position and results of operations of Lvxin are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. The restated historical financial statements reflecting the divestment are unaudited, but have been derived from the Company's historical audited annual reports. The sum of the individual earnings per share amounts from continuing operations and discontinued operations may not equal the total company earnings per share amounts due to rounding. The cash flows and comprehensive income related to Lvxin have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows and Comprehensive Income, respectively, for all periods presented. With the exception of Note 3, the Notes to the Unaudited Condensed Consolidated Financial Statements reflect the continuing operations of the Company. See Note 3 - Discontinued Operations below for additional information regarding discontinued operations. Certain amounts in the prior year's condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as a result of the spin-off of Lvxin. Forward-Looking Statements Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause the Company's actual results to differ materially from the forward-looking statements contained in this report may be found in this report and the Company's other reports filed with the Securities and Exchange Commission (the "SEC"). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company's Annual Report on Form 10-K for the year ended March 31, 2010, filed with the SEC on August 14, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going concern Management has determined there is substantial doubt about our ability to continue as a going concern as a result of our lack of significant revenues and recurring losses. If we are unable to generate significant revenue or secure additional financing, we may be required to cease or curtail our operations. Our financial statements do not include adjustments that might result from the outcome of this uncertainty. The Company's operations have been financed primarily by proceeds from sales of shares. The Company received $46,400 during the three months ended June 30, 2020, and an additional $91,500 from June 1, 2020 to the date of filling this report, from the sale of shares. These funds provided sufficient working capital for the Company. Management intends to expand product offerings to include value-added products, both products based on rice and products based on other food stuffs, such as organic red beans and millet. The marketing personnel of the Company will endeavor to expand awareness of our brand, open new marketing channels, and educate the nation about the health benefits of selenium-enriched rice. In this manner, Management hopes to make sufficient operating cash inflow to support its future operations and development of the Company in addition to capital raised from sales of shares and shareholders' support based on needs. Basis of presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation when applicable. The Company's consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with Accounting Principles Generally Accepted in the United States of America ("U.S. GAAP"). Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The consolidated financial statements include the assets, liabilities, and net income or loss of these subsidiaries. The Company's subsidiaries as of June 30, 2020 are listed as follows: Name Place of Incorporation Attributable Authorized Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. One significant item subject to such estimates and assumptions is the inventory valuation allowance. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash and cash equivalents. The Company's cash and cash equivalents consist of cash on hand and cash in bank, as of June 30, 2020 and March 31, 2020. Revenue recognition Effective April 1, 2018, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities as described below. The Company sells paddy and selenium-enriched paddy products, rice and other agricultural products. All revenue is recognized when it is both earned and realized. The Company's policy is to recognize the sale when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds, if not prepaid, is reasonably assured, all of which generally occur when the customer receives the products. Accordingly, revenue is recognized at the point in time when delivery is made. Given the nature of this revenue source of the Company's business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. Fair value measurements The Company applies the provisions of FASB ASC 820, Fair Value Measurements Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices, other than those in Level 1, in markets that are not active or for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the three months ended June 30, 2020 and 2019. Financial assets and liabilities of the Company primarily consists of cash, account receivables, prepaid expenses, inventories, other receivables, accounts payable and accrued liabilities, customer deposits, due to related parties, and other payables. As at June 30, 2020 and March 31, 2020, the carrying values of these financial instruments approximated their fair values due to the short-term nature of these instruments. Functional currency and foreign currency translation An entity's functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management's judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the Company is the Chinese Renminbi ("RMB'), except the functional currency of Organic Agricultural HK is the Hong Kong Dollar ("HKD"), and the functional currency of Organic Agricultural Samoa and Organic Agricultural is the United States dollar ("US Dollars" "USD" or "$"). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of the Company, which are prepared using the RMB and the HKD, are translated into the Company's reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders' equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or loss. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows: For the three months ended June 30, March 31, 2020 2019 2020 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 7.0697/7.7504 6.8656/7.8119 7.0896/7.7529 Revenue and expenses period average 7.0864/7.7514 6.8210/7.8396 N/A Income taxes The Company follows FASB ASC Topic 740, Income Taxes ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. According to the "PRC Income Tax Law", Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. Earnings (loss) per share The Company computes earnings (loss) Earnings Per Share Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential common shares associated with convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. Share-based compensation The Company follows the provisions of FASB ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and recognized over its vesting period. No equity instruments were granted during the three months ended June, 2020 and 2019, and no compensation expense is required to be recognized under provisions of ASC 718 with respect to employees. Segment information and geographic data The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting Concentration of credit risk The Company maintains cash balances in three banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$71,000). As of June 30, 2020, the Company had RMB1,281,670 (approximately USD$181,000) in excess of the insurance amounts. During the three months ended June 30, 2020, major customers Shouhang Commerce & Trade and Jiufu Zhenyuan generated 49% and 49% of revenue, respectively. During the three months ended June 30, 2019, major customer Shouhang Commerce & Trade generated 97% of revenue, respectively. Recently adopted accounting standards Leases In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an additional, optional transition method related to implementing the new leases standard. ASU 2018-11 provides that companies can initially apply the new lease standard at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the guidance as of April 1, 2019, there is no cumulative-effect adjustment to the Company's opening balance of retained earnings in the period of adoption. See Note 9 - Leases for further details. We do not believe any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial position, statements of operations and cash flows. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 3. DISCONTINUED OPERATIONS As discussed in Note 1. Basis of Presentation above, on April 30, 2020, the Company completed the divestment of Lvxin and the requirements for the presentation of Lvxin as a discontinued operation were met on that date. Accordingly, Lvxin's historical financial results are reflected in the Company's unaudited condensed consolidated financial statements as discontinued operations. The Company did not allocate any general corporate overhead or interest expense to discontinued operations. The financial results of Lvxin are presented as income (loss) from discontinued operations, net of income taxes in the unaudited Condensed Consolidated Statements of Operations. The following table presents the financial results of Lvxin. Three months ended June 30, June 30, (Unaudited) (Unaudited) Net sales $ 37,317 $ 114,964 Cost of sales 36,574 122,401 Gross profit 743 (7,437 ) Selling, general and administrative expenses - 395 Operating income (loss) 743 (7,832 ) Other income - 440 Income (loss) before income taxes 743 (7,392 ) Income tax (expense) benefit - - Income (loss) from discontinued operations, net of income taxes 743 (7,392 ) Less: Net income (loss) attributable to non-controlling interest 364 (3,622 ) Net income (loss) from discontinued operations attributable to controlling interest $ 379 $ (3,770 ) The following table summarizes the carrying value of major classes of assets and liabilities of Lvxin, reclassified as assets and liabilities of discontinued operations at March 31, 2020. March 31, ASSETS Cash and cash equivalents $ 1,340 Inventories, net 557,085 Total current assets, discontinued operations 558,425 Operating lease right-of-use assets 1,981,547 Total non-current assets, discontinued operations $ 2,539,972 LIABILITIES Due to related parties $ 37,146 Operating lease liabilities (current) 298,259 Total current liabilities, discontinued operations 335,405 Operating lease liabilities (non-current) 1,424,600 Total non-current liabilities, discontinued operations $ 1,760,005 |
Prepaid Expenses
Prepaid Expenses | 3 Months Ended |
Jun. 30, 2020 | |
Prepaid Expenses [Abstract] | |
PREPAID EXPENSES | NOTE 4. PREPAID EXPENSES Prepaid expenses include prepayment of processing charges, and prepayment for products to be purchased. As of June 30, 2020 and March 31, 2020, prepayments and deferred expenses were $63,124 and $48,789, respectively. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5. INVENTORIES Inventories are comprised of raw materials, and finished goods (including processed rice and other agricultural products). Raw materials Manufactured goods, rice and other products The Company values inventory on its balance sheet at the lower of cost or net realizable value. Inventories consisted of the following: June 30 March 31 2020 2020 (Unaudited) Rice and other products 13,480 41,153 Packing and other materials 12,856 15,457 Total inventories at cost 26,336 56,610 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6. INCOME TAXES A reconciliation of loss before income taxes for domestic and foreign locations for the three months ended June 30, 2020 and 2019 is as follows: For the three months ended June 30 2020 2019 (Unaudited) (Unaudited) United States $ (16,580 ) $ (25,066 ) Foreign (957,532 ) (86,171 ) (Loss) before income taxes $ (974,112 ) $ (111,237 ) The difference between the U.S. federal statutory income tax rate and the Company's effective tax rate was as follows: June 30, June 30, 2020 2019 (Unaudited) (Unaudited) U.S. federal statutory income tax rate 21 % 21 % U.S. Valuation allowance (21 )% (21 )% Rates for Tianci Liangtian and Yuxinqi, net 25 % 25 % PRC Valuation allowance (25 )% (25 )% The Company's effective tax rate (0 )% (0 )% The Company did not recognize deferred tax assets since it is not likely to realize such deferred taxes. The deferred tax would apply to the Company in the U.S. and Yuxinqi and Tianci Liangtian, in China. As of June 30, 2020, Yuxinqi and Tianci Liangtian have total net operating loss carry forwards of $687,143 in the PRC that expire in 2024. Due to the uncertainty of utilizing these carry forwards, the Company provided a 100% allowance on all deferred tax assets of approximately $171,786 and $165,787 related to its operations in the PRC as of June 30, 2020 and March 31, 2020, respectively. The PRC valuation allowance has increased by approximately $6,000 and $18,000 for the three months ended June 30, 2020 and 2019, respectively. The Company has incurred losses from its United States operations during all periods presented of approximately $414,000. The Company's United States operations consist solely of ownership of its foreign subsidiaries, and the losses arise from administration expenses. Accordingly, management provided a 100% valuation allowance of approximately $87,000 and $83,000 against the deferred tax assets related to the Company's United States operations as of June 30, 2020 and March 31, 2020, respectively, because the deferred tax benefits of the net operating loss carry forwards in the United States will not likely be utilized. The US valuation allowance has increased by approximately $4,000 and $5,000 for the three months ended June 30, 2020 and 2019, respectively. The Company is subject to examination by the Internal Revenue Service (IRS) in the United States as well as by the taxing authorities in China, where the firm has significant business operations. The tax years under examination vary by jurisdiction. The table below presents the earliest tax year that remain subject to examination by major jurisdiction. The year as of U.S. Federal March 31, 2019 China March 31, 2018 United States The Company is subject to the U.S. corporation tax rate of 21%. Samoa Organic Agricultural (Samoa) Co., Ltd was incorporated in Samoa and, under the current laws of Samoa, it is not subject to income tax. China Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. There was no provision for income taxes for the three months ended June 30, 2020 and 2019. |
Other Payables
Other Payables | 3 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES | NOTE 7. OTHER PAYABLES Other payables consisted of the following as of the periods indicated: June 30 March 31 2020 2020 (Unaudited) Advances for shares to be issued $ 667 8,167 Others 229 244 $ 896 $ 8,411 As of March 31, 2020, the Company had received $8,167 for the sale of common shares to be issued of which $7,500 was refunded on April 3, 2020. As of June 30, 2020, The Company had received $667 for the sale of common shares to be issued. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8. RELATED PARTY TRANSACTIONS Amounts due to related parties consisted of the following as of the periods indicated: June 30, March 31 2020 2020 (Unaudited) Hao Shuping $ - $ 38,874 Shen Zhenai 36,639 37,647 Xun Jianjun 7,788 7,767 $ 44,427 $ 84,288 Hao Shuping is the main shareholder of the Company, Shen Zhenai is the President, Chairman of the Board, director and shareholder of the Company, and Xun Jianjun is the CEO and shareholder of the Company. These advances represent temporary borrowings for operating costs between the Company and management. They are non-interest bearing and due on demand. Amounts due from related parties consisted of the following as of the periods indicated: June 30, March 31 2020 2020 (Unaudited) Hao Shuping $ 3,442 $ - $ 3,442 $ - |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities | 3 Months Ended |
Jun. 30, 2020 | |
Right-of-Use Assets And Lease Liabilities [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | NOTE 9. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES On April 1, 2019, the Company adopted FASB ASC 842, "Leases" ("new lease standard"). The new lease standard was adopted using the optional transition method approach that allows for the cumulative effect adjustment to be recorded without restating prior periods. The Company has elected the practical expedient package related to the identification, classification and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As the Company will not reassess such conclusions, the Company has not adopted the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended or terminated or whether a purchase option will be exercised. In November 2017, Tianci Liangtian leased office space from November 20, 2017 to December 5, 2018 under an operating lease agreement (approximately 666 square meters). Under the terms of the lease, Tianci Liangtian paid approximately $1,592 in lease deposits and committed to make annual lease payments. In December 2018, Yuxingqi renewed the lease agreement. Under the terms, Yuxingqi committed to make annual lease payments of RMB290,000 (approximately US$42,000) for the period from December 6, 2018 to December 5, 2019. On December 20, 2019, Yuxingqi renewed the lease agreement. Under the terms, Yuxingqi committed to make annual lease payments of RMB290,000 (approximately US$42,000, including VAT tax) for the period from December 20, 2019 to December 19, 2020. RMB150,000 (approximately US$22,000) payment was paid on December 23, 2019. As of June 30, 2020, US$16,124 and US$18,682 was accounted as operating lease right-of-use assets and operating lease liabilities (current), respectively The Company's adoption of the new lease standard included new processes and controls regarding asset financing transactions, financial reporting and a system-related implementation required for the new lease standard. The impact of the adoption of the new lease standard included the recognition of right-of-use ("ROU") assets and lease liabilities. For the three months ended June 30, 2020 and 2020, the amortization was $9,652 and $10,027, respectively. Operating leases are reflected on our balance sheet within ROU assets and the related current operating lease liabilities. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease agreement. ROU assets and liabilities are recognized at the commencement date, or the date on which the lessor makes the underlying asset available for use, based upon the present value of the lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectation regarding the terms. As of June 30, 2020, the Company has the following amounts recorded on the Company's unaudited condensed consolidated balance sheet: As of June 30, 2020 (Unaudited) Assets Right-of-use asset(non-current) $ 16,124 Total $ 16,124 Liabilities Lease liability(current) $ 18,682 Total $ 18,682 Office lease: Remaining Lease Term 1 year, renewal option Incremental borrowing rate 4.9 % The components of lease expense were as follows: For the three months ended June 30, (Unaudited) Amortization of ROU Asset Office Lease $ 9,652 Interest expense - Total lease expense $ 9,652 Future annual minimum lease payments for non-cancellable operating leases are as follows: Year Ending March 31 Operating Leases (Unaudited) 2021 $ 18,638 Thereafter - Total 18,638 Less: imputed interest - Total $ 18,638 Reconciliation to lease liabilities: Lease liabilities - current 18,638 Lease Liabilities $ 18,638 |
Contingencies
Contingencies | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 10. CONTINGENCIES Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. The Company was not subject to any material loss contingencies as of June 30, 2020 or March 31, 2020 and through the date of this report. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENTS During the period from July 1, 2020 to the date of filling this report, the Company received an advance of $91,500 for the sale of 60,000 shares to be issued. The COVID-19 outbreak has had a significant adverse impact and created many uncertainties related to our business, and we expect that it will continue to do so. The Company is experiencing challenges in sales and has suffered a significant decrease in revenues which has increased financial uncertainty. Our future business outlook and expectations are very uncertain due to the impact of the COVID-19 outbreak and are very difficult to quantify. It is difficult to assess or predict the impact of this unprecedented event on our business, financial results or financial condition. Factors that will impact the extent to which the COVID-19 outbreak affects our business, financial results and financial condition include: the duration, spread and severity of the outbreak; the actions taken to contain the virus or treat its impact, including government actions to mitigate the economic impact of the outbreak; and how quickly and to what extent normal economic and operating conditions can resume, including whether any future outbreaks interrupt economic recovery. The Management of the Company determined that there were no other reportable subsequent events to be adjusted for and/or disclosed as of the date of filing this report. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Going concern | Going concern Management has determined there is substantial doubt about our ability to continue as a going concern as a result of our lack of significant revenues and recurring losses. If we are unable to generate significant revenue or secure additional financing, we may be required to cease or curtail our operations. Our financial statements do not include adjustments that might result from the outcome of this uncertainty. The Company's operations have been financed primarily by proceeds from sales of shares. The Company received $46,400 during the three months ended June 30, 2020, and an additional $91,500 from June 1, 2020 to the date of filling this report, from the sale of shares. These funds provided sufficient working capital for the Company. Management intends to expand product offerings to include value-added products, both products based on rice and products based on other food stuffs, such as organic red beans and millet. The marketing personnel of the Company will endeavor to expand awareness of our brand, open new marketing channels, and educate the nation about the health benefits of selenium-enriched rice. In this manner, Management hopes to make sufficient operating cash inflow to support its future operations and development of the Company in addition to capital raised from sales of shares and shareholders' support based on needs. |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation when applicable. The Company's consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with Accounting Principles Generally Accepted in the United States of America ("U.S. GAAP"). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The consolidated financial statements include the assets, liabilities, and net income or loss of these subsidiaries. The Company's subsidiaries as of June 30, 2020 are listed as follows: Name Place of Incorporation Attributable Authorized Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. One significant item subject to such estimates and assumptions is the inventory valuation allowance. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash and cash equivalents. The Company's cash and cash equivalents consist of cash on hand and cash in bank, as of June 30, 2020 and March 31, 2020. |
Revenue recognition | Revenue recognition Effective April 1, 2018, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities as described below. The Company sells paddy and selenium-enriched paddy products, rice and other agricultural products. All revenue is recognized when it is both earned and realized. The Company's policy is to recognize the sale when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds, if not prepaid, is reasonably assured, all of which generally occur when the customer receives the products. Accordingly, revenue is recognized at the point in time when delivery is made. Given the nature of this revenue source of the Company's business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. |
Fair value measurements | Fair value measurements The Company applies the provisions of FASB ASC 820, Fair Value Measurements Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices, other than those in Level 1, in markets that are not active or for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the three months ended June 30, 2020 and 2019. Financial assets and liabilities of the Company primarily consists of cash, account receivables, prepaid expenses, inventories, other receivables, accounts payable and accrued liabilities, customer deposits, due to related parties, and other payables. As at June 30, 2020 and March 31, 2020, the carrying values of these financial instruments approximated their fair values due to the short-term nature of these instruments. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation An entity's functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management's judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the Company is the Chinese Renminbi ("RMB'), except the functional currency of Organic Agricultural HK is the Hong Kong Dollar ("HKD"), and the functional currency of Organic Agricultural Samoa and Organic Agricultural is the United States dollar ("US Dollars" "USD" or "$"). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of the Company, which are prepared using the RMB and the HKD, are translated into the Company's reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders' equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or loss. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows: For the three months ended June 30, March 31, 2020 2019 2020 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 7.0697/7.7504 6.8656/7.8119 7.0896/7.7529 Revenue and expenses period average 7.0864/7.7514 6.8210/7.8396 N/A |
Income taxes | Income taxes The Company follows FASB ASC Topic 740, Income Taxes ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. According to the "PRC Income Tax Law", Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) Earnings Per Share Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential common shares associated with convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Share-based compensation | Share-based compensation The Company follows the provisions of FASB ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and recognized over its vesting period. No equity instruments were granted during the three months ended June, 2020 and 2019, and no compensation expense is required to be recognized under provisions of ASC 718 with respect to employees. |
Segment information and geographic data | Segment information and geographic data The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting |
Concentration of credit risk | Concentration of credit risk The Company maintains cash balances in three banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$71,000). As of June 30, 2020, the Company had RMB1,281,670 (approximately USD$181,000) in excess of the insurance amounts. During the three months ended June 30, 2020, major customers Shouhang Commerce & Trade and Jiufu Zhenyuan generated 49% and 49% of revenue, respectively. During the three months ended June 30, 2019, major customer Shouhang Commerce & Trade generated 97% of revenue, respectively. |
Recently adopted accounting standards | Recently adopted accounting standards Leases In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an additional, optional transition method related to implementing the new leases standard. ASU 2018-11 provides that companies can initially apply the new lease standard at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the guidance as of April 1, 2019, there is no cumulative-effect adjustment to the Company's opening balance of retained earnings in the period of adoption. See Note 9 - Leases for further details. We do not believe any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial position, statements of operations and cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of company's subsidiaries | Name Place of Incorporation Attributable Authorized Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 |
Schedule of exchange rates used for foreign currency translation | For the three months ended June 30, March 31, 2020 2019 2020 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 7.0697/7.7504 6.8656/7.8119 7.0896/7.7529 Revenue and expenses period average 7.0864/7.7514 6.8210/7.8396 N/A |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations [Abstract] | |
Schedule of income (loss) from discontinued operations | Three months ended June 30, June 30, (Unaudited) (Unaudited) Net sales $ 37,317 $ 114,964 Cost of sales 36,574 122,401 Gross profit 743 (7,437 ) Selling, general and administrative expenses - 395 Operating income (loss) 743 (7,832 ) Other income - 440 Income (loss) before income taxes 743 (7,392 ) Income tax (expense) benefit - - Income (loss) from discontinued operations, net of income taxes 743 (7,392 ) Less: Net income (loss) attributable to non-controlling interest 364 (3,622 ) Net income (loss) from discontinued operations attributable to controlling interest $ 379 $ (3,770 ) |
Schedule of liabilities of discontinued operations | March 31, ASSETS Cash and cash equivalents $ 1,340 Inventories, net 557,085 Total current assets, discontinued operations 558,425 Operating lease right-of-use assets 1,981,547 Total non-current assets, discontinued operations $ 2,539,972 LIABILITIES Due to related parties $ 37,146 Operating lease liabilities (current) 298,259 Total current liabilities, discontinued operations 335,405 Operating lease liabilities (non-current) 1,424,600 Total non-current liabilities, discontinued operations $ 1,760,005 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30 March 31 2020 2020 (Unaudited) Rice and other products 13,480 41,153 Packing and other materials 12,856 15,457 Total inventories at cost 26,336 56,610 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income taxes | For the three months ended June 30 2020 2019 (Unaudited) (Unaudited) United States $ (16,580 ) $ (25,066 ) Foreign (957,532 ) (86,171 ) (Loss) before income taxes $ (974,112 ) $ (111,237 ) |
Schedule of difference between the U.S. federal statutory income tax rate and the company's effective tax rate | June 30, June 30, 2020 2019 (Unaudited) (Unaudited) U.S. federal statutory income tax rate 21 % 21 % U.S. Valuation allowance (21 )% (21 )% Rates for Tianci Liangtian and Yuxinqi, net 25 % 25 % PRC Valuation allowance (25 )% (25 )% The Company's effective tax rate (0 )% (0 )% |
Schedule of earliest tax year that remain subject to examination by major jurisdiction | The year as of U.S. Federal March 31, 2019 China March 31, 2018 |
Other Payables (Tables)
Other Payables (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of other payables | June 30 March 31 2020 2020 (Unaudited) Advances for shares to be issued $ 667 8,167 Others 229 244 $ 896 $ 8,411 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of amount due to related parties | June 30, March 31 2020 2020 (Unaudited) Hao Shuping $ - $ 38,874 Shen Zhenai 36,639 37,647 Xun Jianjun 7,788 7,767 $ 44,427 $ 84,288 |
Schedule of amounts due from related parties | June 30, March 31 2020 2020 (Unaudited) Hao Shuping $ 3,442 $ - $ 3,442 $ - |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Lease Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Right-of-Use Assets And Lease Liabilities [Abstract] | |
Schedule of Unaudited condensed consolidated balance sheet | As of June 30, 2020 (Unaudited) Assets Right-of-use asset(non-current) $ 16,124 Total $ 16,124 Liabilities Lease liability(current) $ 18,682 Total $ 18,682 |
Schedule of lease term | Office lease: Remaining Lease Term 1 year, renewal option Incremental borrowing rate 4.9 % |
Schedule of components of lease expense | For the three months ended June 30, (Unaudited) Amortization of ROU Asset Office Lease $ 9,652 Interest expense - Total lease expense $ 9,652 |
Schedule of Future annual minimum lease payments | Year Ending March 31 Operating Leases (Unaudited) 2021 $ 18,638 Thereafter - Total 18,638 Less: imputed interest - Total $ 18,638 Reconciliation to lease liabilities: Lease liabilities - current 18,638 Lease Liabilities $ 18,638 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | May 16, 2018$ / sharesshares | Mar. 31, 2017USD ($)shares | Apr. 24, 2020USD ($) | Apr. 24, 2020CNY (¥) | Jan. 02, 2018 | Mar. 31, 2017CNY (¥) |
Equity Transfer Agreement [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Debt amount | $ 36,380 | |||||
Equity Transfer Agreement [Member] | RMB [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Debt amount | ¥ | ¥ 257,731 | |||||
Hao Shuping [Member] | Equity Transfer Agreement [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Percentage of equity interest acquired | 51.00% | 51.00% | ||||
Cash | $ 305,472 | |||||
Number of share issue | shares | 152,736 | |||||
Value of share issue | $ 152,736 | |||||
Hao Shuping [Member] | Equity Transfer Agreement [Member] | RMB [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Cash | ¥ | ¥ 2,029,586 | |||||
Tianci Liangtian [Member] | Equity Transfer Agreement [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Percentage of equity interest acquired | 51.00% | 51.00% | ||||
Debt amount | $ 518,321 | |||||
Nature of operations and basis of presentation, description | In exchange for the 51% interest in Lvxin, Lou Zhengui assumed the obligation to satisfy a debt of 300,000 RMB (approx. US$42,350) owed by Tianci Liangtian to Hao Shuping, a member of the Registrant’s Board of Directors. | In exchange for the 51% interest in Lvxin, Lou Zhengui assumed the obligation to satisfy a debt of 300,000 RMB (approx. US$42,350) owed by Tianci Liangtian to Hao Shuping, a member of the Registrant’s Board of Directors. | ||||
Tianci Liangtian [Member] | Equity Transfer Agreement [Member] | RMB [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Debt amount | ¥ | ¥ 3,672,002 | |||||
Organic Agricultural Co., Ltd [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Percentage of equity interest acquired | 48.80% | |||||
Common stock (in dollars per share) | $ / shares | $ 0.001 | |||||
Percentage of exchange outstanding share | 100.00% | |||||
Common stock issued | shares | 10,000,000 | |||||
Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | Hao Shuping [Member] | Equity Transfer Agreement [Member] | ||||||
Nature of Operations and Basis of Presentation (Textual) | ||||||
Percentage of equity interest acquired | 51.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - shares | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Organic Agricultural (Samoa) Co., Ltd. [Member] | ||
Place of Incorporation | Samoa | |
Attributable equity interest | 100.00% | |
Authorized capital | 1,000,000 | |
Organic Agricultural Company Limited [Member] | HKD | ||
Place of Incorporation | Hong Kong | |
Attributable equity interest | 100.00% | |
Authorized capital | 10,000 | |
Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | ||
Place of Incorporation | China | |
Attributable equity interest | 100.00% | |
Authorized capital | 0 | |
Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | ||
Place of Incorporation | China | |
Attributable equity interest | 100.00% | |
Authorized capital | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
Assets and liabilities [Member] | |||
Description of foreign currency translation | period end exchange rate | period end exchange rate | |
Assets and liabilities [Member] | RMB [Member] | |||
Foreign currency translation | 7.0697 | 7.0896 | 6.8656 |
Assets and liabilities [Member] | HKD | |||
Foreign currency translation | 7.7504 | 7.7529 | 7.8119 |
Revenue and expenses [Member] | |||
Description of foreign currency translation | period average | ||
Revenue and expenses [Member] | RMB [Member] | |||
Foreign currency translation | 7.0864 | 6.8210 | |
Revenue and expenses [Member] | HKD | |||
Foreign currency translation | 7.7514 | 7.8396 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 3 Months Ended | ||
Jul. 01, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019 | Jun. 30, 2020CNY (¥) | |
Summary of Significant Accounting Policies (Textual) | ||||
Insurance coverage | $ 71,000 | |||
Excess of insurance amount | $ 181,000 | |||
Income tax rate | (0.00%) | 0.00% | ||
Received from sale of shares | $ 46,400 | |||
Subsequent Event [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Received from sale of shares | $ 91,500 | |||
Zhao Shihai [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Percentage of concentration risk | 49.00% | |||
Huiye Group [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Percentage of concentration risk | 49.00% | |||
Shouhang Commerce and Trade [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Percentage of concentration risk | 97.00% | |||
RMB [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Insurance coverage | ¥ | ¥ 500,000 | |||
Excess of insurance amount | ¥ | ¥ 1,281,670 | |||
PRC [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Income tax rate | 25.00% |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Discontinued Operations [Abstract] | ||
Net sales | $ 37,317 | $ 114,964 |
Cost of sales | 36,574 | 122,401 |
Gross profit | 743 | (7,437) |
Selling, general and administrative expenses | 395 | |
Operating income (loss) | 743 | (7,832) |
Other income | 440 | |
Income (loss) before income taxes | 743 | (7,392) |
Income tax (expense) benefit | ||
Income (loss) from discontinued operations, net of income taxes | 743 | 7,392 |
Less: Net income (loss) attributable to non-controlling interest | 364 | (3,622) |
Net income (loss) from discontinued operations attributable to controlling interest | $ 379 | $ (3,770) |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 1,340 | |
Inventories, net | 557,085 | |
Total current assets, discontinued operations | 558,425 | |
Operating lease right-of-use assets | 1,981,547 | |
Total non-current assets, discontinued operations | 2,539,972 | |
LIABILITIES | ||
Due to related parties | 37,146 | |
Operating lease liabilities (current) | 298,259 | |
Total current liabilities, discontinued operations | 335,405 | |
Operating lease liabilities (non-current) | 1,424,600 | |
Total non-current liabilities, discontinued operations | $ 1,760,005 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Prepaid Expenses (Textual) | ||
Prepayments and deferred expenses | $ 63,124 | $ 48,789 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Total inventories at cost | $ 26,336 | $ 56,610 |
Inventories, net | 26,336 | 56,610 |
Rice and other products [Member] | ||
Total inventories at cost | 13,480 | 41,153 |
Packing and other materials [Member] | ||
Total inventories at cost | $ 12,856 | $ 15,457 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (16,580) | $ (25,066) |
Foreign | (957,532) | (86,171) |
(Loss) before income taxes | $ (32,293) | $ (111,237) |
Income Taxes (Details 1)
Income Taxes (Details 1) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 21.00% |
U.S. Valuation allowance | (21.00%) | (21.00%) |
Rates for Tianci Liangtian and Yuxinqi, net | 25.00% | 25.00% |
PRC Valuation allowance | (25.00%) | (25.00%) |
The Company's effective tax rate | (0.00%) | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) | 3 Months Ended |
Jun. 30, 2020 | |
U.S. Federal [Member] | |
Tax examination date | Mar. 31, 2019 |
China [Member] | |
Tax examination date | Mar. 31, 2018 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Income Taxes (Textual) | |||
Income tax rate | 21.00% | ||
Enterprise income tax | 25.00% | 25.00% | |
Tianci Liantian and Yuxinqi [Member] | |||
Income Taxes (Textual) | |||
Total operating loss carry forwards | $ 687,143 | ||
United States [Member] | |||
Income Taxes (Textual) | |||
Valuation allowance | $ 87,000 | $ 83,000 | |
Percentage of valuation allowance | 100.00% | ||
Incurred loss | $ 414,000 | ||
Valuation allowance increased | 4,000 | $ 5,000 | |
PRC [Member] | |||
Income Taxes (Textual) | |||
Allowance on deferred tax assets | $ 171,786 | $ 165,787 | |
Percentage of allowance on all deferred tax assets | 100.00% | ||
Expire date | Dec. 31, 2024 | ||
Valuation allowance increased | $ 6,000 | $ 18,000 |
Other Payables (Details)
Other Payables (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Advances for shares to be issued | $ 667 | $ 8,167 |
Others | 229 | 244 |
Other payables | $ 896 | $ 8,411 |
Other Payables (Details Textual
Other Payables (Details Textual) - USD ($) | Jun. 30, 2020 | Apr. 03, 2020 | Mar. 31, 2020 |
Other Payables (Textual) | |||
Advances for shares to be issued | $ 667 | ||
Sale of common shares received amount | $ 8,167 | ||
Refunded amount | $ 7,500 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Amount due to related parties | $ 44,427 | $ 84,288 |
Hao Shuping [Member] | ||
Amount due to related parties | 38,874 | |
Shen Zhenai [Member] | ||
Amount due to related parties | 36,639 | 37,647 |
Xun Jianjun [Member] | ||
Amount due to related parties | $ 7,788 | $ 7,767 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Amounts due from related parties | $ 3,442 | |
Hao Shuping [Member] | ||
Amounts due from related parties | $ 3,442 |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Lease Liabilities (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Assets | ||
Right-of-use asset(non-current) | $ 16,124 | $ 25,727 |
Total | 404,482 | 2,934,747 |
Liabilities | ||
Total | 225,145 | $ 2,028,902 |
Parent [Member] | ||
Assets | ||
Right-of-use asset(non-current) | 16,124 | |
Total | 16,124 | |
Liabilities | ||
Lease liability(current) | 18,682 | |
Total | $ 18,682 |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Lease Liabilities (Details 1) - Office lease: [Member] | 3 Months Ended |
Jun. 30, 2020 | |
Remaining Lease Term | 1 year, renewal option |
Incremental borrowing rate | 4.90% |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Lease Liabilities (Details 2) | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Amortization of ROU Asset | |
Office Lease | $ 9,652 |
Interest expense | |
Total lease expense | $ 9,652 |
Right-of-Use Assets and Lease_6
Right-of-Use Assets and Lease Liabilities (Details 3) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Total | $ 225,145 | $ 2,028,902 |
Reconciliation to lease liabilities: | ||
Total liabilities | 225,145 | $ 2,028,902 |
Operating Leases [Member] | ||
2021 | 18,638 | |
Thereafter | ||
Total | 18,638 | |
Less: imputed interest | ||
Total | 18,638 | |
Reconciliation to lease liabilities: | ||
Lease liabilities - current | 18,638 | |
Total liabilities | $ 18,638 |
Right-of-Use Assets and Lease_7
Right-of-Use Assets and Lease Liabilities (Details Textual) | 1 Months Ended | 3 Months Ended | |||||||
Dec. 23, 2019USD ($) | Dec. 23, 2019CNY (¥) | Dec. 20, 2019USD ($) | Dec. 20, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Nov. 30, 2017USD ($)m² | |
Right-of-Use Assets and Lease Liabilities (Textual) | |||||||||
Operating Lease Payments | $ 22,000 | ||||||||
Right of use oerating lease assets | $ 16,124 | ||||||||
Right of use operating lease liability | 18,682 | ||||||||
Amortization expenses | $ 9,652 | $ 10,027 | |||||||
RMB [Member] | |||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | |||||||||
Operating Lease Payments | ¥ | ¥ 150,000 | ||||||||
Operating Lease Agreement [Member] | Tianci Liangtian [Member] | |||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | |||||||||
Area of lease office | m² | 666 | ||||||||
Lease deposits | $ 1,592 | ||||||||
Operating Lease Agreement [Member] | Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | |||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | |||||||||
Annual lease payments | $ 42,000 | $ 42,000 | |||||||
Operating Lease Agreement [Member] | Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | RMB [Member] | |||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | |||||||||
Annual lease payments | ¥ | ¥ 290,000 | ¥ 290,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Jul. 02, 2020USD ($)shares |
Subsequent Events (Textual) | |
Advance for shares to issued, shares | shares | 60,000 |
Advance for shares to issued, value | $ | $ 91,500 |