Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 04, 2020 | Dec. 31, 2019 | |
Document Information Line Items | |||
Entity Registrant Name | China Green Agriculture, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Common Stock, Shares Outstanding | 6,350,129 | ||
Entity Public Float | $ 16,842,391 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000857949 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Jun. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-34260 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 11,934,778 | $ 72,259,804 |
Accounts receivable, net | 105,693,326 | 145,190,160 |
Inventories | 98,921,081 | 162,013,889 |
Prepaid expenses and other current assets | 3,567,912 | 2,776,370 |
Amount due from related parties | 66 | |
Advances to suppliers, net | 65,081,818 | 32,713,817 |
Total Current Assets | 285,198,981 | 414,954,039 |
Plant, Property and Equipment, Net | 22,928,334 | 26,669,938 |
Other Assets | 260,362 | 267,907 |
Other Non-current Assets | 10,943,875 | 13,352,645 |
Intangible Assets, Net | 15,751,625 | 17,881,449 |
Goodwill | 7,045,006 | 7,874,421 |
Total Assets | 342,128,183 | 481,000,399 |
Current Liabilities | ||
Accounts payable | 17,719,093 | 19,004,548 |
Customer deposits | 7,342,590 | 6,514,619 |
Accrued expenses and other payables | 14,139,324 | 12,029,722 |
Amount due to related parties | 4,212,407 | 3,641,945 |
Taxes payable | 31,645,452 | 31,357,690 |
Short term loans | 3,537,500 | 3,640,000 |
Interest payable | 725,895 | 720,720 |
Derivative liability | 18,162 | |
Convertible notes payable | 7,517,307 | |
Total Current Liabilities | 79,322,261 | 84,444,714 |
Total Liabilities | 79,322,261 | 84,444,714 |
Preferred Stock, $.001 par value, 20,000,000 shares authorized, zero shares issued and outstanding | ||
Common stock, $.001 par value, 115,197,165 shares authorized, 6,350,129 and 3,986,912 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively | 6,350 | 3,987 |
Additional paid-in capital | 155,455,332 | 138,012,445 |
Statutory reserve | 29,743,991 | 31,237,891 |
Retained earnings | 111,864,338 | 247,122,574 |
Accumulated other comprehensive income | (34,264,089) | (19,821,211) |
Total Stockholders’ Equity | 262,805,922 | 396,555,686 |
Total Liabilities and Stockholders’ Equity | $ 342,128,183 | $ 481,000,399 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,197,165 | 115,197,165 |
Common stock, shares issued | 6,350,129 | 3,986,912 |
Common stock, shares outstanding | 6,350,129 | 3,986,912 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Sales | ||
Net sales | $ 249,243,496 | $ 294,320,803 |
Cost of goods sold | ||
Cost of goods sold | 204,492,918 | 229,678,123 |
Gross profit | 44,750,578 | 64,642,680 |
Operating expenses | ||
Selling expenses | 13,900,315 | 23,266,121 |
General and administrative expenses | 165,022,621 | 22,571,811 |
Total operating expenses | 178,922,936 | 45,837,932 |
Income from operations | (134,172,358) | 18,804,748 |
Other income (expense) | ||
Other income (expense) | (107,579) | (443,533) |
Interest income | 176,799 | 321,645 |
Interest expense | (304,071) | (595,125) |
Total other income (expense) | (234,851) | (717,013) |
Income before income taxes | (134,407,208) | 18,087,735 |
Provision for income taxes | 2,344,928 | 6,497,340 |
Net income | (136,752,136) | 11,590,395 |
Other comprehensive income (loss) | ||
Foreign currency translation gain (loss) | (14,442,878) | (16,222,996) |
Comprehensive income (loss) | $ (151,195,014) | $ (4,632,601) |
Basic weighted average shares outstanding (in Shares) | 5,619,788 | 3,388,529 |
Basic net earnings per share (in Dollars per share) | $ (24.33) | $ 3.42 |
Diluted weighted average shares outstanding (in Shares) | 5,619,788 | 3,388,529 |
Diluted net earnings per share (in Dollars per share) | $ (24.33) | $ 3.42 |
Jinong | ||
Sales | ||
Net sales | $ 57,001,659 | $ 76,494,490 |
Cost of goods sold | ||
Cost of goods sold | 37,730,361 | 38,962,752 |
Gufeng | ||
Sales | ||
Net sales | 119,623,964 | 136,285,236 |
Cost of goods sold | ||
Cost of goods sold | 105,203,118 | 120,369,401 |
Yuxing | ||
Sales | ||
Net sales | 9,227,113 | 10,101,051 |
Cost of goods sold | ||
Cost of goods sold | 7,935,849 | 8,631,544 |
VIEs - others | ||
Sales | ||
Net sales | 63,390,760 | 71,440,026 |
Cost of goods sold | ||
Cost of goods sold | $ 53,623,590 | $ 61,714,426 |
Statements of Stockholders_ Equ
Statements of Stockholders’ Equity - USD ($) | Common Stock | Additional Paid In Capital | Statutory Reserve | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Jun. 30, 2018 | $ 3,242 | $ 129,372,690 | $ 30,947,344 | $ 235,822,726 | $ (3,598,215) | $ 392,547,786 |
Balance (in Shares) at Jun. 30, 2018 | 3,241,413 | |||||
Net income (Loss) | 11,590,395 | 11,590,395 | ||||
Issuance of stock | $ 689 | 8,269,311 | 8,270,000 | |||
Issuance of stock (in Shares) | 689,167 | |||||
Shared issued for past services | $ 54 | 370,446 | 370,500 | |||
Shared issued for past services (in Shares) | 54,167 | |||||
1 for 12 reverse stock split | $ 2 | (2) | ||||
1 for 12 reverse stock split (in Shares) | 2,166 | |||||
Transfer to statutory reserve | 290,547 | (290,547) | ||||
Other comprehensive income (Loss) | (16,222,996) | (16,222,996) | ||||
Balance at Jun. 30, 2019 | $ 3,987 | 138,012,445 | 31,237,891 | 247,122,574 | (19,821,211) | 396,555,686 |
Balance (in Shares) at Jun. 30, 2019 | 3,986,912 | |||||
Net income (Loss) | (136,752,136) | (136,752,136) | ||||
Issuance of stock | $ 931 | 10,251,069 | 10,252,000 | |||
Issuance of stock (in Shares) | 931,000 | |||||
Issuance of stock for convertible notes | $ 1,373 | 6,861,877 | 6,863,250 | |||
Issuance of stock for convertible notes (in Shares) | 1,372,650 | |||||
Issuance of stock for consulting services | $ 60 | 329,940 | 330,000 | |||
Issuance of stock for consulting services (in Shares) | 59,567 | |||||
Transfer to statutory reserve | (1,493,900) | 1,493,900 | ||||
Other comprehensive income (Loss) | (14,442,878) | (14,442,878) | ||||
Balance at Jun. 30, 2020 | $ 6,350 | $ 155,455,332 | $ 29,743,991 | $ 111,864,338 | $ (34,264,089) | $ 262,805,922 |
Balance (in Shares) at Jun. 30, 2020 | 6,350,129 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ (136,752,136) | $ 11,590,395 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Issuance of common stock and stock options for compensation | 130,000 | |
Depreciation and amortization | 4,698,482 | 4,920,779 |
Provision for losses on accounts receivable | 118,362,520 | 9,906,681 |
Gain (Loss) on disposal of property, plant and equipment | 38,223 | 4,525 |
Amortization of debt discount | 41,707 | 411,743 |
Goodwill impairment | 607,677 | |
Inventories impairment | 39,643,198 | |
Change in fair value of derivative liability | (17,736) | (45,917) |
Changes in operating assets | ||
Accounts receivable | (82,782,877) | 13,277,343 |
Amount due from related parties | (66) | 228,629 |
Other current assets | (873,111) | 63,973 |
Inventories | 19,170,514 | (110,880,651) |
Advances to suppliers | (33,450,217) | 731,013 |
Other assets | 1,889,043 | 1,977,942 |
Changes in operating liabilities | ||
Accounts payable | (759,998) | (7,209,214) |
Customer deposits | 1,016,311 | (481,166) |
Tax payables | 355,567 | 1,448,673 |
Accrued expenses and other payables | 2,590,822 | 2,237,401 |
Interest payable | 25,593 | 277,003 |
Net cash provided by (used in) operating activities | (66,196,484) | (71,410,847) |
Cash flows from investing activities | ||
Purchase of plant, property, and equipment | (97,483) | (63,610) |
Change in construction in process | 16,215 | |
Net cash provided by (used in) investing activities | (97,483) | (47,395) |
Cash flows from financing activities | ||
Proceeds from the sale of common stock | 10,252,000 | 8,270,000 |
Proceeds from loans | 3,537,500 | 3,640,000 |
Repayment of loans | (3,537,500) | (4,557,280) |
Repayment of convertible notes | (1,100,735) | |
Advance from related party | 600,000 | 409,230 |
Net cash provided by (used in) financing activities | 9,751,265 | 7,761,950 |
Effect of exchange rate change on cash and cash equivalents | (3,782,324) | (14,849,542) |
Net increase (decrease) in cash and cash equivalents | (60,325,026) | (78,545,834) |
Cash and cash equivalents, beginning balance | 72,259,804 | 150,805,639 |
Cash and cash equivalents, ending balance | 11,934,778 | 72,259,804 |
Interest expense paid | 304,071 | 318,122 |
Income taxes paid | 2,889,673 | 5,129,686 |
Supplement non-cash activities | ||
Common stock issued to repay accrued expense | 330,000 | 240,500 |
Convertible notes payments | 6,863,250 | |
Nonmonetary sales and purchases | $ 43,537,582 | $ 134,655,878 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS China Green Agriculture, Inc. (the “Company”, “Parent Company” or “Green Nevada”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production and distribution of agricultural products. Unless the context indicates otherwise, as used in this Report, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada, incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the in the PRC controlled by Jinong through a series of contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), and (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”). On June 30, 2016 the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following six companies that are organized under the laws of the PRC and would be deemed VIEs: Shaanxi Lishijie Agrochemical Co., Ltd. (“Lishijie”), Songyuan Jinyangguang Sannong Service Co., Ltd. (“Jinyangguang”), Shenqiu County Zhenbai Agriculture Co., Ltd. (“Zhenbai”), Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd. (“Wangtian”), Aksu Xindeguo Agricultural Materials Co., Ltd. (“Xindeguo”), and Xinjiang Xinyulei Eco-agriculture Science and Technology co., Ltd. (“Xinyulei”). On January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following two companies that are organized under the laws of the PRC and would be deemed VIEs, Sunwu County Xiangrong Agricultural Materials Co., Ltd. (“Xiangrong”), and Anhui Fengnong Seed Co., Ltd. (“Fengnong”). On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. Yuxing, Lishijie, Jinyangguang, Wangtian, Xindeguo, Xinyulei, Xiangrong and Fengnong may also collectively be referred to as the “the VIE Companies”; Lishijie, Jinyangguang, Wangtian, Xindeguo, Xinyulei, Xiangrong and Fengnong may also collectively be referred to as “the sales VIEs” or “the sales VIE companies”. The Company’s current corporate structure as of is set forth in the diagram below: |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principle of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, and the VIE Companies. All significant inter-company accounts and transactions have been eliminated in consolidation. Effective June 16, 2013, Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. VIE assessment A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure. Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues 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 and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the COVID-19. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2020, the Company does not have any material leases for the implementation of ASC 842. Cash and cash equivalents and concentration of cash For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of June 30, 2020 and 2019 was $11,866,308 and $72,178,448, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $68,470 and $81,356 in cash in two banks in the United States as of June 30, 2020 and 2019, respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Accounts receivable Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the collectability of accounts receivable at each year-end. Accounts considered uncollectible are provisioned for written off based upon management’s assessment. As of June 30, 2020, and 2019, the Company had accounts receivable of $105,693,326 and $145,190,160, net of allowance for doubtful accounts of $38,466,200 and $33,515,410, respectively. The impact of COVID-19 caused the difficulty of accounts receivable collection in the fiscal year 2020 as numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. The company recorded bad debt expense in the amount of $ 118 million and $10 million for the fiscal year ended June 30, 2020 and the fiscal year ended June 30, 2019, respectively. The Company adopts no policy to accept product returns post to the sales delivery. Inventories Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of June 30, 2020 and 2019 the Company had no reserve for obsolete goods. Property, plant and equipment Property, plant and equipment are recorded at cost. Gains or losses on disposals are reflected as gain or loss in the year of disposal. The cost of improvements that extend the life of plant, property, and equipment are capitalized. These capitalized costs may include structural improvements, equipment, and fixtures. All ordinary repair and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets: Estimated Building 10-25 years Agricultural assets 8 years Machinery and equipment 5-15 years Vehicles 3-5 years Construction in Progress Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company’s plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress. Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of June 30, 2020 and 2019 the Company determined that there were no impairments of its long-lived assets. Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2020 and 2019, respectively. Goodwill We test goodwill for impairment annually, or when events and circumstances change that would indicate the carrying amount may not be recoverable. ASC 350, “Intangibles – Goodwill and Other,” permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step quantitative goodwill impairment test required under ASC 350. ASC 350 also allows the option to skip the qualitative assessment and proceed directly to a quantitative assessment. Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2020, and 2019, the Company performed the required impairment review which resulted in impairment adjustment with amount of $607,677 in 2020 and no impairment adjustment in 2019. The impairment is reported in General and administrative expenses. The COVID-19 pandemic events will continue to evolve and the effects on our businesses may differ from what we currently estimate. If the effects prove to be worse than is reflected in our current estimates, additional goodwill or indefinite-lived intangible asset impairment charges could be required. Summary of changes in goodwill by reporting segments is as follows: Balance at Foreign Balance at June 30, Additions Currency June 30, Segment 2019 /Deletion Adjustment 2020 Gufeng $ 4,665,642 - $ (131,381 ) 4,534,261 Acquisition of VIE Companies 3,208,779 (607,677) (90,357 ) 2,510,745 $ 7,874,421 $ (607,677) $ (221,738 ) $ 7,045,006 Fair Value Measurement and Disclosures Our accounting for Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2020. Fair Value As of Fair Value Measurements at June 30, 2020 Description 2020 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ - $ - $ - $ - The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2019. Fair Value Fair Value Measurements at As of June 30, Description 2019 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ 18,162 $ - $ 18,162 $ - The carrying values of cash and cash equivalents, trade and other receivables, trade and other payables approximate their fair values due to the short maturities of these instruments. Derivative financial instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The Company uses a binomial option pricing model to value the derivative instruments. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. As of June 30, 2020, there is no derivative financial instruments. The only derivative financial instrument is the variable conversion feature embedded in the convertible notes payable (See Note 10). As of June 30, 2020, all convertible notes are matured and paid. Therefore, the fair value of derivative liability is 0 as of June 30, 2020. As of June 30, 2019, the only derivative financial instrument is the variable conversion feature embedded in the convertible notes payable (See Note 10). The fair value of the embedded conversion of $18,162 is recorded as a derivative liability on June 30, 2019. The fair value was determined using a binomial option pricing model with the following assumptions: Risk-free rate 3.1 % Volatility 214.9 % Dividend yield 0.0 % Country risk premium 90 % Liquidity risk premium 3.0 % Revenue recognition The Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by performing the following five steps analysis: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company’s consolidated financial statements upon adoption of ASC 606. Sales revenue is recognized on the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably assured. The Company’s revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance are made as products delivered and accepted by customers are not returnable and sales discounts are not granted after products are delivered. Customer deposits Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of June 30, 2020, and 2019, the Company had customer deposits of $7,342,590 and $6,514,619, respectively. Stock-Based Compensation The costs of all employee stock option, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. Income taxes We account for uncertain tax positions in accordance with Accounting Standards Codification, or ASC, 740, “Income Taxes.” The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of, and guidance surrounding, income tax laws and regulations change over time. Changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income. See Note 11, “Taxes Payable,” of the Notes to Consolidated Financial Statements for additional detail on our uncertain tax positions and further information regarding ASC 740. Foreign currency translation The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi (“RMB”). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders’ equity. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency is included in the results of operations as incurred. Segment reporting The Company utilizes the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other way management disaggregates a company. As of June 30, 2020, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production) and the seven sales VIEs that the Company acquired on June 30, 2016 and January 1, 2017. As of June 30, 2020, the Company maintained four main business segments. Fair values of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, advances to suppliers, accounts payable, other payables, tax payable, and related party advances and borrowings. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. Statement of cash flows The Company’s cash flows from operations are calculated based on the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheets. Earnings per share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted earnings per share consist of the following: Years Ended June 30, 2020 2019 Net Income for Basic Earnings Per Share $ (136,752,136 ) $ 11,590,395 Basic Weighted Average Number of Shares 5,619,788 3,388,529 Net Income Per Share – Basic $ (24.33 ) $ 3.42 Net Income for Diluted Earnings Per Share $ (136,752,136 ) $ 11,590,395 Diluted Weighted Average Number of Shares 5,619,788 3,388,529 Net Income Per Share – Diluted $ (24.33 ) $ 3.42 Reclassification Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2019 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported. Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The effect of the adoption of ASU 2018-13 will be a change to the disclosure requirements for certain fair value measurements. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40, “Intangibles—Goodwill and Other—Internal-Use Software,” to determine which implementation costs may be capitalized. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU 2018-15 can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of ASU 2018-15 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is evaluating the impact that adoption of ASU 2019-12 will have on its consolidated financial statements. |
Going Cercern
Going Cercern | 12 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CERCERN | NOTE 3 – GOING CERCERN The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company has incurred operating losses and had negative operating cash flows in the fiscal year 2020 and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. If the situation exists, there could be substantial doubt about the Company's ability to continue as going concern. To meet its working capital needs through the next twelve months and to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or borrow loan from local bank. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as going concern. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories consisted of the following: June 30, June 30, 2020 2019 Raw materials $ 43,177,071 $ 102,268,620 Supplies and packing materials $ 465,746 $ 496,138 Work in progress $ 374,756 $ 390,708 Finished goods $ 54,903,508 $ 58,858,423 Total $ 98,921,081 $ 162,013,889 During the year ended June 30, 2020, the Company sold compound fertilizers (finished goods) to certain parties at market price, and purchased equivalent amount of simple fertilizers (raw material) from the same parties also at market price. The simple fertilizers purchased, along with other materials were used in the Company’s production facility to manufacture compound fertilizers. While nonmonetary, the sales and purchase transactions were consummated independently under separate agreements at different times, and measured at the prevailing market value. The total amount of nonmonetary sales and purchases amounted to $43,537,582 during the year ended June 30, 2020. No gain or loss incurred as the result of the nonmonetary transactions. For the fiscal year ended June 30, 2020, total inventories decreased $63,092,808, or 38.9%, to $98,921,081 from $162,013,889 for the fiscal year ended June 30, 2019. This decrease was mainly due to the decrease in raw materials which is from $102,268,620 to $43,177,071. In the second and third quarters of fiscal year 2020, the bad weather lasted a long time in Pinggu, which is a mountainous area where Gufeng locates. The frequent rainfall and snowfall caused the damaged of Gufeng’s warehouse. As a result, the inventories were seriously damaged. After comprehensive consideration and evaluation, the company confirmed the loss of $39,643,198 of raw materials in the fiscal year 2020. This impairment loss is reported in the General and Administrative expenses. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: June 30, June 30, 2020 2019 Building and improvements $ 37,799,650 $ 38,877,508 Auto 3,207,619 3,391,040 Machinery and equipment 17,601,852 18,125,539 Agriculture assets - 741,044 Total property, plant and equipment 58,609,121 61,135,130 Less: accumulated depreciation (35,680,787 ) (34,465,192 ) Total $ 22,928,334 $ 26,669,938 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Intangible assets consisted of the following: June 30, June 30, 2020 2019 Land use rights, net $ 8,850,905 $ 9,341,327 Technology patent, net 2,069 3,004 Customer relationships, net 908,933 2,174,564 Non-compete agreement 230,669 436,634 Trademarks 5,759,049 5,925,920 Total $ 15,751,625 $ 17,881,449 LAND USE RIGHT On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $10,355,663). The intangible asset is being amortized over the grant period of 50 years using the straight-line method. On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1, 045,950 (or $148,002). The intangible asset is being amortized over the grant period of 50 years. On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land& Resources Bureau of Yangling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB7,285,099 (or $1,030,842). The intangible asset is being amortized over the grant period of 50 years. The Land Use Rights consisted of the following: June 30, 2019 Foreign Currency Adjustment Amortization June 30, 2020 Land use rights $ 11,868,721 (334,215 ) 11,534,506 Less: accumulated amortization (2,527,394 ) (156,207 ) (2,683,601) Total land use rights, net $ 9,341,327 (334,215 ) (156,207 ) 8,850,905 TECHNOLOGY PATENT On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $831,322) and is being amortized over the patent period of 10 years using the straight-line method. This technology patent has been fully amortized. On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired technology patent was estimated to be RMB9,200,000 (or $1,301,800) and is amortized over the remaining useful life of six years using the straight-line method. As of June 30, 2020, this technology patent is fully amortized. On June 30, 2016, the Company acquired Xingyulei and Xindeguo. The fair value on the acquired technology patent was estimated to be RMB26,648 (or $3,771) and RMB3,000(or $425) respectively. The technology know-how consisted of the following: June 30, Foreign Currency June 30, 2019 Adjustment Amortization 2020 Technology know-how $ 2,199,247 (61,930 ) $ 2,137,317 Less: accumulated amortization (2,196,243 ) 61,098 (103 ) (2,135,248 ) Total technology know-how, net $ 3,004 (832 ) (103 ) $ 2,069 CUSTOMER RELATIONSHIP On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $9,197,500) and is amortized over the remaining useful life of ten years. On June 30, 2016, and January 1, 2017 the Company acquired the VIE Companies. The fair value of the acquired customer relationships was estimated to be RMB14,729,602 (or $2,084,239) and is amortized over the remaining useful life of seven to ten years. June 30, Foreign Currency June 30, 2019 Adjustment Amortization 2020 Customer relationships $ 11,608,629 (326,890 ) $ 11,281,739 Less: accumulated amortization (9,434,065 ) (938,741 ) (10,372,806 ) Total customer relationships, net $ 2,174,564 (326,890 ) (938,741 ) $ 908,933 NON-COMPETE AGREEMENT On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired non-compete agreement was estimated to be RMB1,320,000 (or $186,780) and is amortized over the remaining useful life of five years using the straight-line method. On June 30, 2016, and January 1, 2017 the Company acquired the VIE Companies. The fair value of the acquired non-compete agreements was estimated to be RMB6,843,439 (or $968,347) and is amortized over the remaining useful life of five years using the straight-line method. June 30, Foreign Currency June 30, 2019 Adjustment Amortization 2020 Non-compete agreement $ 1,188,597 (33,470 ) $ 1,155,127 Less: accumulated amortization (751,963 ) (172,495 ) (924,458 ) Total non-compete agreement, net $ 436,634 (33,470 ) (172,495 ) $ 230,669 TRADEMARKS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be RMB40,700,000 (or $5,759,050) and is subject to an annual impairment test. On June 30, 2016, and January 1, 2017 the Company acquired the VIE Companies. The fair value of the acquired trademarks was estimated to be RMB29,648 (or $4,195) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended June 30, are as follows: Years Ending June 30, Expense ($) 2021 812,591 2022 586,726 2023 548,263 2024 395,530 2025 329,007 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2020 | |
Other Assets Noncurrent Abstract | |
OTHER NON-CURRENT ASSETS | NOTE 7 – OTHER NON-CURRENT ASSETS Other non-current assets mainly include advance payments related to rent the land use for the Company. As of June 30, 2020, the balance of other non-current assets was $12,843,512, which was the rental fee advances for agriculture lands that the Company engaged in Shiquan County from 2020 to 2027. In March 2017, Jinong entered into the rental agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The rental agreement was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate rental fee was approximately RMB 13 million per annum, The Company had made 10-year advances of rental fee per rental terms. The Company has amortized $1.9 million as expenses for the year ended June 30, 2020 and $2.0 million as expenses for the year ended June 30, 2019. Estimated amortization expenses of the rental advance payments herein for the next four twelve-month periods ended June 30 and thereafter are as follows: Years ending June 30, 2021 $ 1,899,638 2022 $ 1,899,638 2023 $ 1,899,638 2024 $ 1,899,638 2025 and thereafter $ 5,244,962 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 8 – ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consisted of the following: June 30, June 30, 2020 2019 Payroll payable $ 23,435 $ 24,891 Welfare payable 145,270 149,479 Accrued expenses 7,640,130 6,847,041 Other payables 6,211,818 4,886,202 Other levy payable 118,671 122,109 Total $ 14,139,324 $ 12,029,722 |
Amount Due to Related Parties
Amount Due to Related Parties | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
AMOUNT DUE TO RELATED PARTIES | NOTE 9 – AMOUNT DUE TO RELATED PARTIES At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”, previously announced as Xi’an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of the Sales Agreement is RMB25,500,000 (approximately $3,608,250). During the year ended June 30, 2020 and 2019 Yuxing has sold approximately $1,200,090 and $604,073 products to 900LH.com. The amount due from 900LH.com to Yuxing was 0 and 0 as of June 30, 2020 and 2019, respectively. As of June 30, 2020, and June 30, 2019, the amount due to related parties was $4,212,407 and $3,641,945, respectively. As of June 30, 2020, and June 30, 2019, $990,500 and $1,019,200, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science & Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu Li, Chairman and CEO of the Company, representing unsecured, non-interest bearing loans that are due on demand. These loans are not subject to written agreements. As of June 30, 2020, the Company’s subsidiary, Jinong, owed 900LH.com. $11,819 On July 1, 2018, Jinong signed an office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2018 with monthly rent of RMB24,480 (approximately $3,464). |
Loan Payables
Loan Payables | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLES | NOTE 10 – LOAN PAYABLES As of June 30, 2020, the short-term loan payables consisted of two loans which mature on dates ranging from June 16, 2021 through June 22, 2021 with interest rates ranging from 5.22% to 5.66%. No. 1 and 2 below are collateralized by Tianjuyuan’s land use right and building ownership right. Loan No. 2 is also guaranteed by the cash deposit. No. Payee Loan period per agreement Interest Rate June 30, 1 Postal Saving Bank of China - Pinggu Branch June 17, 2020-June 16, 2021 5.66 % 2,122,500 2 Beijing Bank -Pinggu Branch June 22, 2020-June 22, 2021 5.22 % 1,415,000 Total $ 3,537,500 The interest expense from short-term loans was $278,328 and $318,122 for the year ended June 30, 2020 and 2019, respectively. |
Convertible Notes Payable
Convertible Notes Payable | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 11 – CONVERTIBLE NOTES PAYABLE Relating to the acquisition of the VIE Companies, the Company subsidiary, Jinong, issued to the VIE Companies shareholders convertible notes payable twice, in the aggregate notional amount of RMB 51,000,000 ($7,216,500) with a term of three years and an annual interest rate of 3%. No. Related Acquisitions of Sales VIEs Issuance Date Maturity Date Notional Interest Rate Conversion Price Notional Amount 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 2020 3 % $ 5.00 39,000,000 2 Fengnong, Xiangrong January 1, 2017 December 31, 2019 3 % $ 5.00 12,000,000 The convertible notes take priority over the preferred stock and common stock of Jinong, and any other class or series of capital stocks Jinong issues in the future in terms of interests and payments in the event of any liquidation, dissolution or winding up of Jinong. On or after the third anniversary of the issuance date of the note, noteholders may request Jinong to process the note conversion to convert the note into shares of the Company’s common stock. The notes cannot be converted prior to the mature date. The per share conversion price of the notes is the higher of the following: (i) $5.00 per share or (ii) 75% of the closing price of the Company’s common stock on the date the noteholder delivers the conversion notice. Due to the discontinuation of VIE agreements with Zhenbai’s shareholders, certain convertible notes issued on June 30, 2016 with a face amount of RMB 12,000,000 ($1,698,000) were tendered back to the Company. All outstanding balance of unpaid principal and accrued interest in the tendered convertible notes were forfeited. On November 15, 2019, the Company issued 995,000 shares of common stock at the price of $5.00 per share for the total amount of $4,975,000 to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on June 30, 2016 and matured on June 30, 2019. On February 14, 2020, the Company issued 377,650 shares of common stock at the price of $5.00 per share for the total amount of $1,888,250 to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on January 1, 2017 and matured on January 1, 2020. The Company determined that the fair value of the convertible notes payable was RMB 0 ($0) and RMB 51,629,859 ($7,517,307) as of June 30, 2020 and June 30, 2019, respectively. Aside from the forfeiture of the convertible notes previously issued to Zhenbai’s shareholders, the difference between the fair value of the notes and the face amount of the notes is being amortized to accretion implied interest expense over the three-year life of the notes. As of June 30, 2020, the accumulated amortization of this discount into accretion expenses was $1,375,499. As of June 30, 2019, the accumulated amortization of this discount into accretion expense was $1,333,792. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES PAYABLE | NOTE 12 – TAXES PAYABLE Enterprise Income Tax Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, because of the expiration of its tax exemption on December 31, 2007. Accordingly, it made provision for income taxes for the years ended June 30, 2020 and 2019 of $2,344,928 and $6,497,340, respectively, which is mainly due to the operating income from VIEs. VIEs is subject to 25% EIT rate and thus it made provision for income taxes of $892,719 and $3,482,862 for the years ended June 30, 2020 and 2019, respectively. Value-Added Tax All the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “ Exemption of VAT for Organic Fertilizer Products Reinstatement of VAT for Fertilizer Products Supplementary Reinstatement of VAT for Fertilizer Products On April 28, 2017, the PRC State of Administration of Taxation (SAT) released Notice 2017 #37, “ Notice on Policy of Reduced Value Added Tax Rate, On April 4, 2018, the PRC State of Administration of Taxation (SAT) released Notice 2018 #32, “ Notice on Adjustment of VAT Tax Rate, On March 20, 2019, the PRC State of Administration of Taxation (SAT) released Notice 2019 #39, “ Announcement on Policies Concerning Deepening the Reform of Value Added Tax, Income Taxes and Related Payables Taxes payable consisted of the following: June 30, June 30, 2020 2019 VAT provision $ (257,068 ) $ (424,535 ) Income tax payable 1,704,543 1,550,830 Other levies 1,187,442 1,220,859 Repatriation tax 29,010,535 29,010,535 Total $ 31,645,452 $ 31,357,690 The provision for income taxes consists of the following: Years Ended June 30, 2020 2019 Current tax – foreign $ 2,344,928 $ 6,497,340 Total $ 2,344,928 $ 6,497,340 Significant components of deferred tax assets were as follows: June 30, June 30, 2020 2019 Deferred tax assets Deferred Tax Benefit 33,743,546 15,377,180 Valuation allowance (33,743,546 ) (15,377,180 ) Total deferred tax assets $ - - The change in valuation allowance for the year ended June 30, 2020 was an increase of $18,366,366 which was resulted from an increase in the net operating losses generated in USA. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors. As of June 30, 2020, based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized and the total deferred tax assets is 0. U.S. Tax Cuts and Jobs Act and Provisional Estimates On December 22, 2017, the TCJA was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 27.5%. This is the result of using the tax rate of 34% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. For fiscal year 2019 and 2020, our U.S. federal statutory tax rate is 21%. Tax Rate Reconciliation Our effective tax rates were approximately -1.7% and 35.9% for years ended June 30, 2020 and 2019, respectively. Substantially all the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of operations and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 21.0% and 21.0% to income before income taxes for the years ended June 30, 2020 and 2019 for the following reasons: June 30, 2020 China United States 15% - 25% 21% Total Pretax income (loss) $ (132,851,959 ) (1,555,249 ) $ (134,407,208 ) Expected income tax expense (benefit) (33,212,990 ) 25.0 % (326,602 ) 21.0 % (33,539,592 ) High-tech income benefits on Jinong 1,814,372 -1.4 % - - 1,814,372 Losses from subsidiaries in which no benefit is recognized 33,743,546 -25.4 % - - 33,743,546 Change in valuation allowance on deferred tax asset from US tax benefit - 326,602 (21.0 )% 326,602 Actual tax expense $ 2,344,928 -1.8 % $ - % $ 2,344,928 -1.7 % June 30, 2019 China United States 15% - 25% 21% Total Pretax income (loss) $ 19,894,737 (1,807,002 ) $ 18,087,735 Expected income tax expense (benefit) 4,973,684 25.0 % (379,470 ) 21.0 % 4,594,214 High-tech income benefits on Jinong (697,062 ) (3.5 )% - - (697,062 ) Losses from subsidiaries in which no benefit is recognized 2,220,717 11.2 % - - 2,220,717 Change in valuation allowance on deferred tax asset from US tax benefit - 379,470 (21.0 )% 379,470 Actual tax expense $ 6,497,340 32.7 % $ - % $ 6,497,340 35.9 % |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 13 – STOCKHOLDERS’ EQUITY Common Stock On April 25, 2019, the Company entered into a Stock Purchase Agreement (the “SPA”) with certain non-US persons, as defined in Regulation S promulgated under the Securities Act of 1933, in connection with a private placement offering of 6,000,000 shares of common stock, par value $0.001 per share, of the Company. The purchase price per share of the offering is $1.00. On April 26, 2019, the Company issued 6,000,000 Shares of the Company’s Common Stock, par value $0.001 per share, pursuant to the SPA. The Shares issued in the offering are exempt from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation S promulgated thereunder. On May 10, 2019, the Company sold 2,270,000 shares of common stock at the price of $1.00 per share for total proceeds of $2,270,000 to certain third-party individuals. The issuances were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On June 25, 2019, the Company approved the amendment to its Articles of Incorporation to affect a 1 for 12 reverse stock splits. The number of outstanding shares of the registrant’s common stock on June 30, 2019, was 3,986,912. During the year ended June 30, 2019, the Company issued an aggregate of 650,000 shares of common stock to pay off consulting services under the 2009 Plan. The value of the stock was $370,500 and is based on the fair value of the Company’s common stock on the grant date. On July 2, 2019, the Company issued 59,567 shares of common stock to pay off consulting services under the 2009 Plan. The value of the stock was $330,000 and was based on the fair value of the Company’s common stock on the grant date. On August 13, 2019, the Company sold 212,000 shares of common stock at the price of $10.00 per share for total proceeds of $2,120,000 to certain third-party individuals. The issuances were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On August 15, 2019, Shaanxi Baoyu Science and Technology Investment Company, a limited liability investment company incorporated in the People’s Republic of China (“Shaanxi Baoyu”), entered into a certain Stock Purchase Agreement (the “SPA”) pursuant to Regulation S promulgated under the Securities Act of 1933 with the Company in connection with a private placement offering of 471,000 shares of Common Stock, par value $0.001 per share, of the Company. The purchase price per share of the offering was $12.00 for total proceeds of $5,652,000. On August 16, 2019, the Company issued 471,000 Shares of the Company’s Common Stock, par value $0.001 per share, to Shaanxi Baoyu, pursuant to the SPA. On August 19, 2019, the Company sold 248,000 shares of common stock at the price of $10.00 per share for total proceeds of $2,480,000 to certain unrelated individuals. The issuances were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On November 15, 2019, the Company issued 995,000 shares of common stock at the price of $5.00 per share for the total amount of $4,975,000 to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on June 30, 2016 and matured on June 30, 2019. On February 14, 2020, the Company issued 377,650 shares of common stock at the price of $5.00 per share to the holders of the Company’s convertible notes payable in connection with the payment of the convertible notes’ principal and interests. The convertible notes were issued on January 1, 2017 with amount of RMB12,000,000 ($1,726,619) and matured on January 1, 2020 with total amount of RMB13,112,723 ($1,888,250) included interests. As of June 30, 2020, and June 30, 2019, there were 6,350,129 and 3,986,912 shares of common stock issued and outstanding, respectively. Preferred Stock Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock. As of June 30, 2020, the Company has 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding. |
Stock Options
Stock Options | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | NOTE 14 – STOCK OPTIONS There were no issuances of stock options during the years ended June 30, 2020 and 2019. |
Concentrations and Litigation
Concentrations and Litigation | 12 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND LITIGATION | NOTE 15 – CONCENTRATIONS AND LITIGATION Market Concentration All the Company’s revenue-generating operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation. Vendor and Customer Concentration There was no vendor that the Company purchased over 10% of its raw materials for fertilizer manufacturing during the year ended June 30, 2020. There were two vendors from which the Company purchased 10.8% and 10.6%, respectively, of its raw materials for fertilizer manufacturing during the year ended June 30, 2019. Total purchases from these two vendors amounted to $51,459,699 as June 30, 2019 Two customers accounted for an aggregate amount of $42,091,565, or 10.5% and 10.4%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2020. Two customers accounted for an aggregate amount of $35,303,527, or 7.4% and 7.3%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2019. Litigation On June 5, 2020, an individual filed suit pro se (as in, representing oneself without an attorney) in the Southern District of Florida federal court alleging violations of the Securities Exchange Act. The Company believes the action is without merit and vigorously opposed it. The company has moved to dismiss the litigation and for attorney’s fees from the plaintiff. The motions are pending. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 16 – SEGMENT REPORTING As of June 30, 2020, the Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and the sales VIEs. Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment. Years Ended June 30, 2020 2019 Revenues from unaffiliated customers: Jinong $ 57,001,659 $ 76,494,490 Gufeng 119,623,964 136,285,236 Yuxing 9,227,113 10,101,051 Sales VIEs 63,390,760 71,440,026 Consolidated $ 249,243,496 $ 294,320,803 Operating income (expense): Jinong $ (18,249,504 ) $ 7,288,789 Gufeng (117,826,339 ) 14,076,655 Yuxing 413,226 (3,435,206 ) Sales VIEs 3,045,528 2,681,521 Reconciling item (1) - - Reconciling item (2) (1,555,269 ) (1,807,011 ) Consolidated $ (134,172,358 ) $ 18,804,748 Net income (loss): Jinong $ (15,422,166 ) $ 5,925,025 Gufeng (88,682,298 ) 10,191,675 Yuxing 425,957 (3,435,659 ) Sales VIEs 2,153,503 729,023 Reconciling item (1) 19 9 Reconciling item (2) (1,555,269 ) (1,807,009 ) Reconciling item (3) $ (33,671,883 ) $ (12,668 ) Consolidated $ (136,752,136 ) $ 11,590,395 Depreciation and Amortization: Jinong $ 760,535 $ 788,787 Gufeng 2,070,861 2,144,061 Yuxing 1,179,144 1,242,761 Sales VIEs 687,942 745,169 Consolidated $ 4,698,482 $ 4,920,779 Interest expense: Jinong 25,593 277,003 Gufeng 278,373 318,122 Yuxing - - Sales VIEs 105 - Consolidated $ 304,071 $ 595,125 Capital Expenditure: Jinong $ 50,625 $ 6,862 Gufeng 4,448 47,096 Yuxing 27,794 9,653 Sales VIEs 14,617 - Consolidated $ 97,483 $ 63,610 As of June 30, June 30, 2020 2019 Identifiable assets: Jinong $ 83,055,679 $ 149,166,251 Gufeng 213,038,203 253,149,321 Yuxing 34,310,053 35,900,242 Sales VIEs 44,715,491 42,269,307 Reconciling item (1) (33,157,364 ) 518,158 Reconciling item (2) 166,121 (2,879 ) Consolidated $ 342,128,183 $ 481,000,399 (1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey. (2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company. (3) Reconciling amounts refer to the loss on discontinuing sales VIE of Shenqiu Zhenbai. Total revenues from exported products currently accounted for less than 1% of the Company’s total fertilizer revenues for the years ended June 30, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 – COMMITMENTS AND CONTINGENCIES On July 1, 2018, Jinong signed an office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2018 with monthly rent of RMB24,480 (approximately $3,464). In February 2004, Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of RMB2,958 ($419). Accordingly, the Company recorded an aggregate of $46,815 and $$48,257 as rent expenses for the years ended June 30, 2020 and 2019, respectively. The contingent rent expenses herein for the next five years ended June 30, are as follows: Years ending June 30, 2021 46,815 2022 46,815 2023 46,815 2024 46,815 2025 46,815 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 18 – VARIABLE INTEREST ENTITIES In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013. The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly-owned subsidiary, Jinong, absorbs a majority of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns. On June 30, 2016 and January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies. Jinong, the sales VIE Companies, and the shareholders of the sales VIE Companies also entered into a series of contractual agreements for the sales VIE Companies to qualify as VIEs (the “VIE Agreements”). On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Zhenbai. As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements as of June 30, 2020 and June 30, 2019: June 30, June 30, 2020 2019 ASSETS Current Assets Cash and cash equivalents $ 712,301 $ 818,312 Accounts receivable, net 33,727,918 29,933,837 Inventories 22,995,075 19,944,011 Other current assets 593,942 475,001 Related party receivable 66 (1,031 ) Advances to suppliers 520,901 3,606,384 Total Current Assets 58,550,203 54,776,514 Plant, Property and Equipment, Net 8,513,395 9,753,039 Other assets 59,575 218,549 Intangible Assets, Net 9,391,626 10,212,668 Goodwill 2,510,745 3,208,779 Total Assets $ 79,025,544 $ 78,169,549 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ 16,416,828 $ 17,250,276 Customer deposits 86,430 256,489 Accrued expenses and other payables 6,996,544 6,243,753 Amount due to related parties 41,549,931 42,680,723 Total Current Liabilities 65,049,733 66,431,241 Total Liabilities $ 65,049,733 66,431,241 Stockholders’ equity 13,975,811 11,738,308 Total Liabilities and Stockholders’ Equity $ 79,025,544 $ 78,169,549 Years Ended June 30, 2020 2019 Revenue $ 72,617,872 $ 81,541,077 Expenses 70,038,413 84,247,714 Net income $ 2,579,459 $ (2,706,637 ) |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 19 – BUSINESS COMBINATIONS On June 30, 2016, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and also into a series of contractual agreements to qualify as VIEs with the shareholders of Shaanxi Lishijie Agrochemical Co., Ltd., Songyuan Jinyangguang Sannong Service Co., Ltd., Shenqiu County Zhenbai Agriculture Co., Ltd., Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd., Aksu Xindeguo Agricultural Materials Co., Ltd., and Xinjiang Xinyulei Eco-agriculture Science and Technology Co., Ltd. Subsequently, on January 1, 2017, Jinong entered into similar strategic acquisition agreements and a series of contractual agreements to qualify as VIEs with the shareholders of Sunwu County Xiangrong Agricultural Materials Co., Ltd., and Anhui Fengnong Seed Co., Ltd. On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. The VIE Agreements are as follows: Entrusted Management Agreements Pursuant to the terms of certain Entrusted Management Agreements dated June 30, 2016 and January 1, 2017, between Jinong and the shareholders of the sales VIE Companies (the “Entrusted Management Agreements”), the sales VIE Companies and their shareholders agreed to entrust the operations and management of its business to Jinong. According to the Entrusted Management Agreement, Jinong possesses the full and exclusive right to manage the sales VIE Companies’ operations, assets and personnel, has the right to control all the sales VIE Companies’ cash flows through an entrusted bank account, is entitled to the sales VIE Companies’ net profits as a management fee, is obligated to pay all the sales VIE Companies’ payables and loan payments, and bears all losses of the sales VIE Companies. The Entrusted Management Agreements will remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of the sales VIE Companies; or (iii) Jinong acquires all the assets or equity of the sales VIE Companies (as more fully described below under “Exclusive Option Agreements”). Exclusive Technology Supply Agreements Pursuant to the terms of certain Exclusive Technology Supply Agreements dated June 30, 2016 and January 1, 2017, between Jinong and the sales VIE companies (the “Exclusive Technology Supply Agreements”), Jinong is the exclusive technology provider to the sales VIE companies. The sales VIE companies agreed to pay Jinong all fees payable for technology supply prior to making any payments under the Entrusted Management Agreement. The Exclusive Technology Supply Agreements shall remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of the sales VIE companies; or (iii) Jinong acquires the sales VIE companies (as more fully described below under “Exclusive Option Agreements”). Shareholder’s Voting Proxy Agreements Pursuant to the terms of certain Shareholder’s Voting Proxy Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Shareholder’s Voting Proxy Agreements”), the shareholders of the sales VIE companies irrevocably appointed Jinong as their proxy to exercise on such shareholders’ behalf all of their voting rights as shareholders pursuant to PRC law and the Articles of Association of the sales VIE companies, including the appointment and election of directors of the sales VIE companies. Jinong agreed that it shall maintain a board of directors, the composition and appointment of which shall be approved by the Board of the Company. The Shareholder’s Voting Proxy Agreements will remain in effect until Jinong acquires all the assets or equity of the sales VIE companies. Exclusive Option Agreements Pursuant to the terms of certain Exclusive Option Agreements dated June 30, 2016 and January 1, 2017, among Jinong, the sales VIE companies, and the shareholders of the sales VIE companies (the “Exclusive Option Agreements”), the shareholders of the sales VIE companies granted Jinong an irrevocable and exclusive purchase option (the “Option”) to acquire the sales VIE companies’ equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. The Option is exercisable at any time at Jinong’s discretion so long as such exercise and subsequent acquisition of the sales VIE companies does not violate PRC law. The consideration for the exercise of the Option is to be determined by the parties and memorialized in the future by definitive agreements setting forth the kind and value of such consideration. Jinong may transfer all rights and obligations under the Exclusive Option Agreements to any third parties without the approval of the shareholders of the sales VIE companies so long as a written notice is provided. The Exclusive Option Agreements may be terminated by mutual agreements or by 30 days written notice by Jinong. Equity Pledge Agreements Pursuant to the terms of certain Equity Pledge Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Pledge Agreements”), the shareholders of the sales VIE companies pledged all of their equity interests in the sales VIE companies to Jinong, including the proceeds thereof, to guarantee all of Jinong’s rights and benefits under the Entrusted Management Agreements, the Exclusive Technology Supply Agreements, the Shareholder’ Voting Proxy Agreements and the Exclusive Option Agreements. Prior to termination of the Pledge Agreements, the pledged equity interests cannot be transferred without Jinong’s prior written consent. The Pledge Agreements may be terminated only upon the written agreement of the parties. Non-Compete Agreements Pursuant to the terms of certain Non-Compete Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Non-Compete Agreements”), the shareholders of the sales VIE companies agreed that during the period beginning on the initial date of their services with Jinong, and ending five (5) years after termination of their services with Jinong, without Jinong’s prior written consent, they will not provide services or accept positions including but not limited to partners, directors, shareholders, managers, proxies or consultants, provided by any profit making organizations with businesses that may compete with Jinong. They will not solicit or interfere with any of the Jinong’s customers, or solicit, induce, recruit or encourage any person engaged or employed by Jinong to terminate his or her service or engagement. If the shareholders of the sales VIE companies breach the non-compete obligations contained therein, Jinong is entitled to all loss and damages; if the damages are difficult to determine, remedies bore the shareholders of the sales VIE companies shall be no less than 50% of the salaries and other expenses Jinong provided in the past. The Company entered these VIE Agreements as a way for the Company to have more control over the distribution of its products. The transactions are accounted for as business combinations in accordance with ASC 805. A summary of the purchase price allocations at fair value is below: For acquisitions made on June 30, 2016: Cash $ 708,737 Accounts receivable 6,422,850 Advances to suppliers 1,803,180 Prepaid expenses and other current assets 807,645 Inventories 7,787,043 Machinery and equipment 140,868 Intangible assets 270,900 Other assets 3,404,741 Goodwill 3,158,179 Accounts payable (3,962,670 ) Customer deposits (3,486,150 ) Accrued expenses and other payables (4,653,324 ) Taxes payable (16,912 ) Purchase price $ 12,385,087 A summary of the purchase consideration paid is below: Cash $ 5,568,500 Convertible notes 6,671,769 Derivative liability 144,818 $ 12,385,087 The cash component of the purchase price for these acquisitions made on June 30, 2016 was paid in July and August 2016. For acquisitions made on January 1, 2017: Working Capital $ 941,192 Machinery and equipment 222,875 Intangible assets 1440 Goodwill 684,400 Customer Relationship 522,028 Non-compete Agreement 392,852 Purchase price $ 2,764,787 A summary of the purchase consideration paid is below: Cash $ 1,201,888 Convertible notes 1,559,350 Derivative liability 3,549 $ 2,764,787 The cash component of the purchase price for these acquisitions made on January 1, 2017 was paid during March 2017. On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. In return, the shareholders of Zhenbai agreed to tender the whole payment consideration in the SAA back to the Company with early termination penalties. The convertible notes paid to Zhenbai’s shareholders and the accrued interest has been forfeited. For the discontinuation of Zhenbai made on November 30, 2017, the Company gave up the control of the following assets in Zhenbai: Working Capital $ 1,179,352 Intangible assets 896,559 Customer Relationship 684,727 Non-compete Agreement 211,833 Goodwill 538,488 Total Asset $ 2,614,401 In return, the purchase consideration returned to the Company from Zhenbai’s shareholders is summarized below: Cash $ 461,330 Interest Payable 83,039 Convertible notes 1,724,683 Derivative liability 13,353 Total Payback $ 2,282,406 Net Loss (331,995 ) |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
RESTRICTED NET ASSETS | NOTE 20 – RESTRICTED NET ASSETS The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends. The Company’s PRC subsidiaries net assets as of June 30, 2020 and 2019 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and are as follows. Parent Company Financial Statements PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC. Condensed Balance Sheets As of June 30, 2020 2019 ASSETS Current Assets: Cash and cash equivalents $ 65,520 $ 78,406 Other current assets 169,071 71 Total Current Assets 234,590 78,476 Long-term equity investment 273,573,440 406,084,910 Total long-term assets 273,573,440 406,084,910 Total Assets $ 273,808,030 $ 406,163,387 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 214,520 $ 214,520 Amount due to related parties 3,192,986 2,592,986 Other payables and accrued expenses 7,594,602 6,800,194 Total Current Liabilities 11,002,108 9,607,701 Stockholders’ Equity Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively 6,350 3,987 Additional paid in capital 155,455,332 138,012,445 Accumulated other comprehensive income (34,264,089 ) (19,821,211 ) Retained earnings 141,608,329 278,360,465 Total Stockholders’ Equity 262,805,922 396,555,686 Total Liabilities and Stockholders’ Equity $ 273,808,030 $ 406,163,387 Condensed Statements of Operations Year ended June 30, 2020 2019 Revenue $ - $ - General and administrative expenses 1,555,269 1,807,010 Interest income 19 9 Provision for tax - - Equity investment in subsidiaries (135,196,887 ) 13,397,397 Net income $ (136,752,136 ) $ 11,590,395 Condensed Statements of Cash Flows Year Ended June 30, 2020 2019 Net cash provided by (used in) operating activities $ (10,864,886 ) $ (8,617,776 ) Net cash provided by (used in) investing activities - - Net cash provided by (used in) financing activities 10,852,000 8,679,230 Cash and cash equivalents, beginning balance 78,405 (29,103,559 ) Cash and cash equivalents, ending balance $ 65,520 $ (29,042,104 ) Notes to Condensed Parent Company Financial Information As of June 30, 2020, and 2019, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. |
Other Events
Other Events | 12 Months Ended |
Jun. 30, 2020 | |
Other Events [Abstract] | |
OTHER EVENTS | NOTE 21 – OTHER EVENTS In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which was continuing to spread throughout China and other parts of the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the COVID-19 a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China and in the U.S. Xi’an City, where our headquarters are located, is one of the most affected areas in China. The Company has been following the orders of local government and health authorities to minimize exposure risk for its employees, including the closures of its offices and having employees work remotely from January of 2020 until March of 2020. An occurrence of an uncontrollable event such as the COVID-19 pandemic may negatively affect our operations and financial results. Substantially all our revenues are generated in China. Consequently, our results of operations were adversely and materially affected by COVID-19. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of COVID-19 and the actions taken by government authorities and other entities to contain COVID-19 or treat its impact, almost all of which are beyond our control. Potential impacts include, but are not limited to, the following: ● temporary closure of offices, travel restrictions or suspension of transportation of our products to our customers and our suppliers have been negatively affected, and could continue to be negatively affected, on their ability to supply our demands; ● our customers that are negatively impacted by the outbreak of COVID-19 may reduce their budgets to purchase our products and services, which may materially adversely impact our revenue; ● we may have to provide significant sales incentives to our customers in response to the outbreak, which may in turn materially adversely affect our financial condition and operating results; ● the business operations of our customers and suppliers have been and could continue to be negatively impacted by the outbreak, result in loss of customers or disruption of our services, which may in turn materially adversely affect our financial condition and operating results; ● any disruption of our supply chain, logistics providers or customers could adversely impact our business and results of operations, including causing our suppliers to cease manufacturing products for a period of time or materially delay delivery to customers, which may also lead to loss of customers, as well as reputational, competitive and business harm to us; ● many of our customers, distributors, suppliers and other partners are individuals and small and medium-sized enterprises (SMEs), which may not have strong cash flows or be well capitalized, and may be vulnerable to an epidemic outbreak and slowing macroeconomic conditions. If the SMEs that we work with cannot weather COVID-19 and the resulting economic impact, or cannot resume business as usual after a prolonged outbreak, our revenues and business operations may be materially and adversely impacted; ● the global stock markets have experienced, and may continue to experience, significant decline from the COVID-19 outbreak, which could materially adversely affect our stock price; Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the COVID-19 cannot be reasonably estimated at this time, but our results for the full fiscal year of 2020 had been adversely affected. In general, our business could be adversely affected by the effects of epidemics, including, but not limited to, the COVID-19, avian influenza, severe acute respiratory syndrome (SARS), the influenza A virus, the Ebola virus, or other outbreaks. In response to an epidemic or other outbreaks, government and other organizations may adopt regulations and policies that could lead to severe disruption to our daily operations, including temporary closure of our offices and other facilities. These severe conditions may cause us and/or our partners to make internal adjustments, including but not limited to, temporarily closing down business, limiting business hours, and setting restrictions on travel and/or visits with clients and partners for a prolonged period of time. Various impacts arising from severe conditions may cause business disruption, resulting in material, adverse effects to our financial condition and results of operations. We are taking significant measures to mitigate the financial and operational impacts of COVID-19 as well as additional actions to improve our liquidity through cost reduction and conservation measures. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22 – SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2020 to the date these consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Principle of consolidation | Principle of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, and the VIE Companies. All significant inter-company accounts and transactions have been eliminated in consolidation. Effective June 16, 2013, Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. |
VIE assessment | VIE assessment A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues 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 and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the COVID-19. |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2020, the Company does not have any material leases for the implementation of ASC 842. |
Cash and cash equivalents and concentration of cash | Cash and cash equivalents and concentration of cash For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of June 30, 2020 and 2019 was $11,866,308 and $72,178,448, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $68,470 and $81,356 in cash in two banks in the United States as of June 30, 2020 and 2019, respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. |
Accounts receivable | Accounts receivable Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the collectability of accounts receivable at each year-end. Accounts considered uncollectible are provisioned for written off based upon management’s assessment. As of June 30, 2020, and 2019, the Company had accounts receivable of $105,693,326 and $145,190,160, net of allowance for doubtful accounts of $38,466,200 and $33,515,410, respectively. The impact of COVID-19 caused the difficulty of accounts receivable collection in the fiscal year 2020 as numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. The company recorded bad debt expense in the amount of $ 118 million and $10 million for the fiscal year ended June 30, 2020 and the fiscal year ended June 30, 2019, respectively. The Company adopts no policy to accept product returns post to the sales delivery. |
Inventories | Inventories Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of June 30, 2020 and 2019 the Company had no reserve for obsolete goods. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost. Gains or losses on disposals are reflected as gain or loss in the year of disposal. The cost of improvements that extend the life of plant, property, and equipment are capitalized. These capitalized costs may include structural improvements, equipment, and fixtures. All ordinary repair and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets: Estimated Building 10-25 years Agricultural assets 8 years Machinery and equipment 5-15 years Vehicles 3-5 years |
Construction in Progress | Construction in Progress Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company’s plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress. |
Long-Lived Assets | Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of June 30, 2020 and 2019 the Company determined that there were no impairments of its long-lived assets. Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. |
Intangible Assets | Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2020 and 2019, respectively. |
Goodwill | Goodwill We test goodwill for impairment annually, or when events and circumstances change that would indicate the carrying amount may not be recoverable. ASC 350, “Intangibles – Goodwill and Other,” permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step quantitative goodwill impairment test required under ASC 350. ASC 350 also allows the option to skip the qualitative assessment and proceed directly to a quantitative assessment. Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2020, and 2019, the Company performed the required impairment review which resulted in impairment adjustment with amount of $607,677 in 2020 and no impairment adjustment in 2019. The impairment is reported in General and administrative expenses. The COVID-19 pandemic events will continue to evolve and the effects on our businesses may differ from what we currently estimate. If the effects prove to be worse than is reflected in our current estimates, additional goodwill or indefinite-lived intangible asset impairment charges could be required. Summary of changes in goodwill by reporting segments is as follows: Balance at Foreign Balance at June 30, Additions Currency June 30, Segment 2019 /Deletion Adjustment 2020 Gufeng $ 4,665,642 - $ (131,381 ) 4,534,261 Acquisition of VIE Companies 3,208,779 (607,677) (90,357 ) 2,510,745 $ 7,874,421 $ (607,677) $ (221,738 ) $ 7,045,006 |
Fair Value Measurement and Disclosures | Fair Value Measurement and Disclosures Our accounting for Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2020. Fair Value As of Fair Value Measurements at June 30, 2020 Description 2020 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ - $ - $ - $ - The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2019. Fair Value Fair Value Measurements at As of June 30, Description 2019 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ 18,162 $ - $ 18,162 $ - The carrying values of cash and cash equivalents, trade and other receivables, trade and other payables approximate their fair values due to the short maturities of these instruments. |
Derivative financial instruments | Derivative financial instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The Company uses a binomial option pricing model to value the derivative instruments. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. As of June 30, 2020, there is no derivative financial instruments. The only derivative financial instrument is the variable conversion feature embedded in the convertible notes payable (See Note 10). As of June 30, 2020, all convertible notes are matured and paid. Therefore, the fair value of derivative liability is 0 as of June 30, 2020. As of June 30, 2019, the only derivative financial instrument is the variable conversion feature embedded in the convertible notes payable (See Note 10). The fair value of the embedded conversion of $18,162 is recorded as a derivative liability on June 30, 2019. The fair value was determined using a binomial option pricing model with the following assumptions: Risk-free rate 3.1 % Volatility 214.9 % Dividend yield 0.0 % Country risk premium 90 % Liquidity risk premium 3.0 % |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by performing the following five steps analysis: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company’s consolidated financial statements upon adoption of ASC 606. Sales revenue is recognized on the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably assured. The Company’s revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance are made as products delivered and accepted by customers are not returnable and sales discounts are not granted after products are delivered. |
Customer deposits | Customer deposits Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of June 30, 2020, and 2019, the Company had customer deposits of $7,342,590 and $6,514,619, respectively. |
Stock-Based Compensation | Stock-Based Compensation The costs of all employee stock option, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. |
Income taxes | Income taxes We account for uncertain tax positions in accordance with Accounting Standards Codification, or ASC, 740, “Income Taxes.” The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of, and guidance surrounding, income tax laws and regulations change over time. Changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income. See Note 11, “Taxes Payable,” of the Notes to Consolidated Financial Statements for additional detail on our uncertain tax positions and further information regarding ASC 740. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi (“RMB”). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders’ equity. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency is included in the results of operations as incurred. |
Segment reporting | Segment reporting The Company utilizes the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other way management disaggregates a company. As of June 30, 2020, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production) and the seven sales VIEs that the Company acquired on June 30, 2016 and January 1, 2017. As of June 30, 2020, the Company maintained four main business segments. |
Fair values of financial instruments | Fair values of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, advances to suppliers, accounts payable, other payables, tax payable, and related party advances and borrowings. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. |
Statement of cash flows | Statement of cash flows The Company’s cash flows from operations are calculated based on the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheets. |
Earnings per share | Earnings per share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted earnings per share consist of the following: Years Ended June 30, 2020 2019 Net Income for Basic Earnings Per Share $ (136,752,136 ) $ 11,590,395 Basic Weighted Average Number of Shares 5,619,788 3,388,529 Net Income Per Share – Basic $ (24.33 ) $ 3.42 Net Income for Diluted Earnings Per Share $ (136,752,136 ) $ 11,590,395 Diluted Weighted Average Number of Shares 5,619,788 3,388,529 Net Income Per Share – Diluted $ (24.33 ) $ 3.42 |
Reclassification | Reclassification Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2019 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported. |
Recent accounting pronouncements | Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The effect of the adoption of ASU 2018-13 will be a change to the disclosure requirements for certain fair value measurements. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40, “Intangibles—Goodwill and Other—Internal-Use Software,” to determine which implementation costs may be capitalized. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU 2018-15 can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of ASU 2018-15 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is evaluating the impact that adoption of ASU 2019-12 will have on its consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated Building 10-25 years Agricultural assets 8 years Machinery and equipment 5-15 years Vehicles 3-5 years |
Schedule of changes in goodwill by reporting segments | Balance at Foreign Balance at June 30, Additions Currency June 30, Segment 2019 /Deletion Adjustment 2020 Gufeng $ 4,665,642 - $ (131,381 ) 4,534,261 Acquisition of VIE Companies 3,208,779 (607,677) (90,357 ) 2,510,745 $ 7,874,421 $ (607,677) $ (221,738 ) $ 7,045,006 |
Schedule of derivative liabilities at fair value | Fair Value As of Fair Value Measurements at June 30, 2020 Description 2020 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ - $ - $ - $ - Fair Value Fair Value Measurements at As of June 30, Description 2019 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ 18,162 $ - $ 18,162 $ - |
Schedule of derivative liabilities at fair value | Risk-free rate 3.1 % Volatility 214.9 % Dividend yield 0.0 % Country risk premium 90 % Liquidity risk premium 3.0 % |
Schedule of basic and diluted earnings per share | Years Ended June 30, 2020 2019 Net Income for Basic Earnings Per Share $ (136,752,136 ) $ 11,590,395 Basic Weighted Average Number of Shares 5,619,788 3,388,529 Net Income Per Share – Basic $ (24.33 ) $ 3.42 Net Income for Diluted Earnings Per Share $ (136,752,136 ) $ 11,590,395 Diluted Weighted Average Number of Shares 5,619,788 3,388,529 Net Income Per Share – Diluted $ (24.33 ) $ 3.42 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, June 30, 2020 2019 Raw materials $ 43,177,071 $ 102,268,620 Supplies and packing materials $ 465,746 $ 496,138 Work in progress $ 374,756 $ 390,708 Finished goods $ 54,903,508 $ 58,858,423 Total $ 98,921,081 $ 162,013,889 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | June 30, June 30, 2020 2019 Building and improvements $ 37,799,650 $ 38,877,508 Auto 3,207,619 3,391,040 Machinery and equipment 17,601,852 18,125,539 Agriculture assets - 741,044 Total property, plant and equipment 58,609,121 61,135,130 Less: accumulated depreciation (35,680,787 ) (34,465,192 ) Total $ 22,928,334 $ 26,669,938 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Intangible Assets (Tables) [Line Items] | |
Schedule of impaired intangible assets | June 30, June 30, 2020 2019 Land use rights, net $ 8,850,905 $ 9,341,327 Technology patent, net 2,069 3,004 Customer relationships, net 908,933 2,174,564 Non-compete agreement 230,669 436,634 Trademarks 5,759,049 5,925,920 Total $ 15,751,625 $ 17,881,449 |
Schedule of finite-lived intangible assets, future amortization expense | Years Ending June 30, Expense ($) 2021 812,591 2022 586,726 2023 548,263 2024 395,530 2025 329,007 |
Land Use Rights [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of impaired intangible assets | June 30, 2019 Foreign Currency Adjustment Amortization June 30, 2020 Land use rights $ 11,868,721 (334,215 ) 11,534,506 Less: accumulated amortization (2,527,394 ) (156,207 ) (2,683,601) Total land use rights, net $ 9,341,327 (334,215 ) (156,207 ) 8,850,905 |
Patented Technology [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of impaired intangible assets | June 30, Foreign Currency June 30, 2019 Adjustment Amortization 2020 Technology know-how $ 2,199,247 (61,930 ) $ 2,137,317 Less: accumulated amortization (2,196,243 ) 61,098 (103 ) (2,135,248 ) Total technology know-how, net $ 3,004 (832 ) (103 ) $ 2,069 |
Customer Relationships [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of impaired intangible assets | June 30, Foreign Currency June 30, 2019 Adjustment Amortization 2020 Customer relationships $ 11,608,629 (326,890 ) $ 11,281,739 Less: accumulated amortization (9,434,065 ) (938,741 ) (10,372,806 ) Total customer relationships, net $ 2,174,564 (326,890 ) (938,741 ) $ 908,933 |
Non-compete agreement [Member] | |
Intangible Assets (Tables) [Line Items] | |
Schedule of impaired intangible assets | June 30, Foreign Currency June 30, 2019 Adjustment Amortization 2020 Non-compete agreement $ 1,188,597 (33,470 ) $ 1,155,127 Less: accumulated amortization (751,963 ) (172,495 ) (924,458 ) Total non-compete agreement, net $ 436,634 (33,470 ) (172,495 ) $ 230,669 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Other Assets Noncurrent Abstract | |
Schedule of estimated amortization expenses of lease advance payments | Years ending June 30, 2021 $ 1,899,638 2022 $ 1,899,638 2023 $ 1,899,638 2024 $ 1,899,638 2025 and thereafter $ 5,244,962 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | June 30, June 30, 2020 2019 Payroll payable $ 23,435 $ 24,891 Welfare payable 145,270 149,479 Accrued expenses 7,640,130 6,847,041 Other payables 6,211,818 4,886,202 Other levy payable 118,671 122,109 Total $ 14,139,324 $ 12,029,722 |
Loan Payables (Tables)
Loan Payables (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of loan payables | No. Payee Loan period per agreement Interest Rate June 30, 1 Postal Saving Bank of China - Pinggu Branch June 17, 2020-June 16, 2021 5.66 % 2,122,500 2 Beijing Bank -Pinggu Branch June 22, 2020-June 22, 2021 5.22 % 1,415,000 Total $ 3,537,500 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes payable | No. Related Acquisitions of Sales VIEs Issuance Date Maturity Date Notional Interest Rate Conversion Price Notional Amount 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 2020 3 % $ 5.00 39,000,000 2 Fengnong, Xiangrong January 1, 2017 December 31, 2019 3 % $ 5.00 12,000,000 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes and related payables | June 30, June 30, 2020 2019 VAT provision $ (257,068 ) $ (424,535 ) Income tax payable 1,704,543 1,550,830 Other levies 1,187,442 1,220,859 Repatriation tax 29,010,535 29,010,535 Total $ 31,645,452 $ 31,357,690 |
Schedule of provision for income taxes | Years Ended June 30, 2020 2019 Current tax – foreign $ 2,344,928 $ 6,497,340 Total $ 2,344,928 $ 6,497,340 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, June 30, 2020 2019 Deferred tax assets Deferred Tax Benefit 33,743,546 15,377,180 Valuation allowance (33,743,546 ) (15,377,180 ) Total deferred tax assets $ - - |
Schedule of effective income tax rate reconciliation | June 30, 2020 China United States 15% - 25% 21% Total Pretax income (loss) $ (132,851,959 ) (1,555,249 ) $ (134,407,208 ) Expected income tax expense (benefit) (33,212,990 ) 25.0 % (326,602 ) 21.0 % (33,539,592 ) High-tech income benefits on Jinong 1,814,372 -1.4 % - - 1,814,372 Losses from subsidiaries in which no benefit is recognized 33,743,546 -25.4 % - - 33,743,546 Change in valuation allowance on deferred tax asset from US tax benefit - 326,602 (21.0 )% 326,602 Actual tax expense $ 2,344,928 -1.8 % $ - % $ 2,344,928 -1.7 % June 30, 2019 China United States 15% - 25% 21% Total Pretax income (loss) $ 19,894,737 (1,807,002 ) $ 18,087,735 Expected income tax expense (benefit) 4,973,684 25.0 % (379,470 ) 21.0 % 4,594,214 High-tech income benefits on Jinong (697,062 ) (3.5 )% - - (697,062 ) Losses from subsidiaries in which no benefit is recognized 2,220,717 11.2 % - - 2,220,717 Change in valuation allowance on deferred tax asset from US tax benefit - 379,470 (21.0 )% 379,470 Actual tax expense $ 6,497,340 32.7 % $ - % $ 6,497,340 35.9 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Years Ended June 30, 2020 2019 Revenues from unaffiliated customers: Jinong $ 57,001,659 $ 76,494,490 Gufeng 119,623,964 136,285,236 Yuxing 9,227,113 10,101,051 Sales VIEs 63,390,760 71,440,026 Consolidated $ 249,243,496 $ 294,320,803 Operating income (expense): Jinong $ (18,249,504 ) $ 7,288,789 Gufeng (117,826,339 ) 14,076,655 Yuxing 413,226 (3,435,206 ) Sales VIEs 3,045,528 2,681,521 Reconciling item (1) - - Reconciling item (2) (1,555,269 ) (1,807,011 ) Consolidated $ (134,172,358 ) $ 18,804,748 Net income (loss): Jinong $ (15,422,166 ) $ 5,925,025 Gufeng (88,682,298 ) 10,191,675 Yuxing 425,957 (3,435,659 ) Sales VIEs 2,153,503 729,023 Reconciling item (1) 19 9 Reconciling item (2) (1,555,269 ) (1,807,009 ) Reconciling item (3) $ (33,671,883 ) $ (12,668 ) Consolidated $ (136,752,136 ) $ 11,590,395 Depreciation and Amortization: Jinong $ 760,535 $ 788,787 Gufeng 2,070,861 2,144,061 Yuxing 1,179,144 1,242,761 Sales VIEs 687,942 745,169 Consolidated $ 4,698,482 $ 4,920,779 Interest expense: Jinong 25,593 277,003 Gufeng 278,373 318,122 Yuxing - - Sales VIEs 105 - Consolidated $ 304,071 $ 595,125 Capital Expenditure: Jinong $ 50,625 $ 6,862 Gufeng 4,448 47,096 Yuxing 27,794 9,653 Sales VIEs 14,617 - Consolidated $ 97,483 $ 63,610 As of June 30, June 30, 2020 2019 Identifiable assets: Jinong $ 83,055,679 $ 149,166,251 Gufeng 213,038,203 253,149,321 Yuxing 34,310,053 35,900,242 Sales VIEs 44,715,491 42,269,307 Reconciling item (1) (33,157,364 ) 518,158 Reconciling item (2) 166,121 (2,879 ) Consolidated $ 342,128,183 $ 481,000,399 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of payments for lease expenses | Years ending June 30, 2021 46,815 2022 46,815 2023 46,815 2024 46,815 2025 46,815 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of VIEs consolidated financial statements | June 30, June 30, 2020 2019 ASSETS Current Assets Cash and cash equivalents $ 712,301 $ 818,312 Accounts receivable, net 33,727,918 29,933,837 Inventories 22,995,075 19,944,011 Other current assets 593,942 475,001 Related party receivable 66 (1,031 ) Advances to suppliers 520,901 3,606,384 Total Current Assets 58,550,203 54,776,514 Plant, Property and Equipment, Net 8,513,395 9,753,039 Other assets 59,575 218,549 Intangible Assets, Net 9,391,626 10,212,668 Goodwill 2,510,745 3,208,779 Total Assets $ 79,025,544 $ 78,169,549 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ 16,416,828 $ 17,250,276 Customer deposits 86,430 256,489 Accrued expenses and other payables 6,996,544 6,243,753 Amount due to related parties 41,549,931 42,680,723 Total Current Liabilities 65,049,733 66,431,241 Total Liabilities $ 65,049,733 66,431,241 Stockholders’ equity 13,975,811 11,738,308 Total Liabilities and Stockholders’ Equity $ 79,025,544 $ 78,169,549 Years Ended June 30, 2020 2019 Revenue $ 72,617,872 $ 81,541,077 Expenses 70,038,413 84,247,714 Net income $ 2,579,459 $ (2,706,637 ) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocations at fair value | Cash $ 708,737 Accounts receivable 6,422,850 Advances to suppliers 1,803,180 Prepaid expenses and other current assets 807,645 Inventories 7,787,043 Machinery and equipment 140,868 Intangible assets 270,900 Other assets 3,404,741 Goodwill 3,158,179 Accounts payable (3,962,670 ) Customer deposits (3,486,150 ) Accrued expenses and other payables (4,653,324 ) Taxes payable (16,912 ) Purchase price $ 12,385,087 Working Capital $ 941,192 Machinery and equipment 222,875 Intangible assets 1440 Goodwill 684,400 Customer Relationship 522,028 Non-compete Agreement 392,852 Purchase price $ 2,764,787 Working Capital $ 1,179,352 Intangible assets 896,559 Customer Relationship 684,727 Non-compete Agreement 211,833 Goodwill 538,488 Total Asset $ 2,614,401 |
Schedule of purchase consideration paid for VIE | Cash $ 5,568,500 Convertible notes 6,671,769 Derivative liability 144,818 $ 12,385,087 Cash $ 1,201,888 Convertible notes 1,559,350 Derivative liability 3,549 $ 2,764,787 Cash $ 461,330 Interest Payable 83,039 Convertible notes 1,724,683 Derivative liability 13,353 Total Payback $ 2,282,406 Net Loss (331,995 ) |
Restricted Net Assets (Tables)
Restricted Net Assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of parent company condensed balance sheets | As of June 30, 2020 2019 ASSETS Current Assets: Cash and cash equivalents $ 65,520 $ 78,406 Other current assets 169,071 71 Total Current Assets 234,590 78,476 Long-term equity investment 273,573,440 406,084,910 Total long-term assets 273,573,440 406,084,910 Total Assets $ 273,808,030 $ 406,163,387 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 214,520 $ 214,520 Amount due to related parties 3,192,986 2,592,986 Other payables and accrued expenses 7,594,602 6,800,194 Total Current Liabilities 11,002,108 9,607,701 Stockholders’ Equity Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively 6,350 3,987 Additional paid in capital 155,455,332 138,012,445 Accumulated other comprehensive income (34,264,089 ) (19,821,211 ) Retained earnings 141,608,329 278,360,465 Total Stockholders’ Equity 262,805,922 396,555,686 Total Liabilities and Stockholders’ Equity $ 273,808,030 $ 406,163,387 |
Schedule of parent company condensed statements of operations | Year ended June 30, 2020 2019 Revenue $ - $ - General and administrative expenses 1,555,269 1,807,010 Interest income 19 9 Provision for tax - - Equity investment in subsidiaries (135,196,887 ) 13,397,397 Net income $ (136,752,136 ) $ 11,590,395 |
Schedule of parent company condensed statements of cash flows | Condensed Statements of Cash Flows Year Ended June 30, 2020 2019 Net cash provided by (used in) operating activities $ (10,864,886 ) $ (8,617,776 ) Net cash provided by (used in) investing activities - - Net cash provided by (used in) financing activities 10,852,000 8,679,230 Cash and cash equivalents, beginning balance 78,405 (29,103,559 ) Cash and cash equivalents, ending balance $ 65,520 $ (29,042,104 ) |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 16, 2013 | Jun. 30, 2020 | Jun. 30, 2019 |
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Ownership percentage, description | Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. | ||
Aggregate cash in accounts and on hand | $ 11,866,308 | $ 72,178,448 | |
Accounts receivable | 105,693,326 | 145,190,160 | |
Allowance for doubtful accounts | 38,466,200 | 33,515,410 | |
Uncollectible accounts | 118,000,000 | 10,000,000 | |
Impairment adjustment | 607,677 | ||
Derivative liability | 18,162 | ||
Customer deposits | 7,342,590 | 6,514,619 | |
United States Banks [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Deposits in banks | $ 68,470 | $ 81,356 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Jun. 30, 2020 | |
Building [Member] | Minimum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 10 years |
Building [Member] | Maximum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 25 years |
Agricultural assets [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 8 years |
Machinery and equipment [Member] | Minimum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 15 years |
Vehicles [Member] | Minimum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 5 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of changes in goodwill by reporting segments - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of changes in goodwill by reporting segments [Line Items] | ||
Balance at June 30, 2019 | $ 7,045,006 | $ 7,874,421 |
Additions/Deletion | (607,677) | |
Foreign Currency Adjustment | (221,738) | |
Balance at June 30, 2020 | 7,045,006 | 7,874,421 |
Gufeng [Member] | ||
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of changes in goodwill by reporting segments [Line Items] | ||
Balance at June 30, 2019 | 4,534,261 | 4,665,642 |
Additions/Deletion | ||
Foreign Currency Adjustment | (131,381) | |
Balance at June 30, 2020 | 4,534,261 | 4,665,642 |
Acquisition of VIE Companies [Member] | ||
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of changes in goodwill by reporting segments [Line Items] | ||
Balance at June 30, 2019 | 2,510,745 | 3,208,779 |
Additions/Deletion | (607,677) | |
Foreign Currency Adjustment | (90,357) | |
Balance at June 30, 2020 | $ 2,510,745 | $ 3,208,779 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of assets and liabilities required to reflected fair value - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 18,162 | |
Fair Value, Inputs, Level 1 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 18,162 | |
Fair Value, Inputs, Level 3 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of derivative liabilities at fair value | 12 Months Ended |
Jun. 30, 2019 | |
Schedule of derivative liabilities at fair value [Abstract] | |
Risk-free rate | 3.10% |
Volatility | 214.90% |
Dividend yield | 0.00% |
Country risk premium | 90.00% |
Liquidity risk premium | 3.00% |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted earnings per share - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of basic and diluted earnings per share [Abstract] | ||
Net Income for Basic Earnings Per Share | $ (136,752,136) | $ 11,590,395 |
Basic Weighted Average Number of Shares | 5,619,788 | 3,388,529 |
Net Income Per Share – Basic | $ (24.33) | $ 3.42 |
Net Income for Diluted Earnings Per Share | $ (136,752,136) | $ 11,590,395 |
Diluted Weighted Average Number of Shares | 5,619,788 | 3,388,529 |
Net Income Per Share – Diluted | $ (24.33) | $ 3.42 |
Inventories (Details)
Inventories (Details) | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Inventory Disclosure [Abstract] | |
Nonmonetary sales and purchases amount | $ 43,537,582 |
Inventories, description | For the fiscal year ended June 30, 2020, total inventories decreased $63,092,808, or 38.9%, to $98,921,081 from $162,013,889 for the fiscal year ended June 30, 2019. This decrease was mainly due to the decrease in raw materials which is from $102,268,620 to $43,177,071. In the second and third quarters of fiscal year 2020, the bad weather lasted a long time in Pinggu, which is a mountainous area where Gufeng locates. The frequent rainfall and snowfall caused the damaged of Gufeng’s warehouse. |
Comprehensive loss of raw materials | $ 39,643,198 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 43,177,071 | $ 102,268,620 |
Supplies and packing materials | 465,746 | 496,138 |
Work in progress | 374,756 | 390,708 |
Finished goods | 54,903,508 | 58,858,423 |
Total | $ 98,921,081 | $ 162,013,889 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 58,609,121 | $ 61,135,130 |
Less: accumulated depreciation | (35,680,787) | (34,465,192) |
Total | 22,928,334 | 26,669,938 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 37,799,650 | 38,877,508 |
Auto [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 3,207,619 | 3,391,040 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 17,601,852 | 18,125,539 |
Agriculture assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 741,044 |
Intangible Assets (Details)
Intangible Assets (Details) | Aug. 13, 2003USD ($) | Jun. 30, 2016USD ($) | Jul. 02, 2010USD ($) | Sep. 25, 2009USD ($) | Aug. 16, 2001USD ($) | Jun. 30, 2016CNY (¥) | Jul. 02, 2010CNY (¥) | Sep. 25, 2009CNY (¥) | Aug. 13, 2003CNY (¥) | Aug. 16, 2001CNY (¥) |
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 425 | ¥ 3,000 | ||||||||
Amortization method, description | The fair value of the acquired non-compete agreements was estimated to be RMB6,843,439 (or $968,347) and is amortized over the remaining useful life of five years using the straight-line method. | |||||||||
Land Use Rights [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Intangible assets land use right, description | On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. | Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $10,355,663). The intangible asset is being amortized over the grant period of 50 years using the straight-line method. | ||||||||
Fair value of intangible assets | $ 148,002 | $ 10,355,663 | $ 1,030,842 | ¥ 73,184,895 | ¥ 1,045,950 | ¥ 7,285,099 | ||||
Amortization period of intangible assets | 50 years | 50 years | 50 years | |||||||
Patented Technology [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 1,301,800 | $ 831,322 | ¥ 9,200,000 | ¥ 5,875,068 | ||||||
Amortization period of intangible assets | 10 years | |||||||||
Patented Technology [Member] | Maximum [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 3,771 | 26,648 | ||||||||
Customer Relationships [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 2,084,239 | $ 9,197,500 | 14,729,602 | 65,000,000 | ||||||
Amortization method, description | The fair value of the acquired customer relationships was estimated to be RMB14,729,602 (or $2,084,239) and is amortized over the remaining useful life of seven to ten years. | The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $9,197,500) and is amortized over the remaining useful life of ten years. | ||||||||
Noncompete Agreements [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 968,347 | $ 186,780 | 6,843,439 | 1,320,000 | ||||||
Amortization method, description | The fair value on the acquired non-compete agreement was estimated to be RMB1,320,000 (or $186,780) and is amortized over the remaining useful life of five years using the straight-line method. | |||||||||
Trademarks [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 5,759,050 | ¥ 40,700,000 | ||||||||
Trade Names [Member] | ||||||||||
Intangible Assets (Details) [Line Items] | ||||||||||
Fair value of intangible assets | $ 4,195 | ¥ 29,648 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of impaired intangible assets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Intangible assets | $ 15,751,625 | $ 17,881,449 |
Land use rights, net [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Intangible assets | 8,850,905 | 9,341,327 |
Technology patent, net [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Intangible assets | 2,069 | 3,004 |
Customer relationships, net [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Intangible assets | 908,933 | 2,174,564 |
Non-compete agreement [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Intangible assets | 230,669 | 436,634 |
Trademarks [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Intangible assets | $ 5,759,049 | $ 5,925,920 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of impaired intangible assets - Land Use Rights [Member] - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Land use rights | $ 11,534,506 | $ 11,868,721 |
Less: accumulated amortization | (2,683,601) | (2,527,394) |
Total land use rights, net | 8,850,905 | $ 9,341,327 |
Foreign Currency Adjustment [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Land use rights | (334,215) | |
Less: accumulated amortization | ||
Total land use rights, net | (334,215) | |
Amortization [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Land use rights | ||
Less: accumulated amortization | (156,207) | |
Total land use rights, net | $ (156,207) |
Intangible Assets (Details) -_3
Intangible Assets (Details) - Schedule of impaired intangible assets - Technology Patent [Member] - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Technology know-how | $ 2,137,317 | $ 2,199,247 |
Less: accumulated amortization | (2,135,248) | (2,196,243) |
Total technology know-how, net | 2,069 | $ 3,004 |
Foreign Currency Adjustment [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Technology know-how | (61,930) | |
Less: accumulated amortization | 61,098 | |
Total technology know-how, net | (832) | |
Amortization [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Technology know-how | ||
Less: accumulated amortization | (103) | |
Total technology know-how, net | $ (103) |
Intangible Assets (Details) -_4
Intangible Assets (Details) - Schedule of impaired intangible assets - Customer Relationships [Member] - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Customer relationships | $ 11,281,739 | $ 11,608,629 |
Less: accumulated amortization | (10,372,806) | (9,434,065) |
Total customer relationships, net | 908,933 | $ 2,174,564 |
Foreign Currency Adjustment [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Customer relationships | (326,890) | |
Less: accumulated amortization | ||
Total customer relationships, net | (326,890) | |
Amortization [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Customer relationships | ||
Less: accumulated amortization | (938,741) | |
Total customer relationships, net | $ (938,741) |
Intangible Assets (Details) -_5
Intangible Assets (Details) - Schedule of impaired intangible assets - Non-Compete Agreement [Member] - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Non-compete agreement | $ 1,155,127 | $ 1,188,597 |
Less: accumulated amortization | (924,458) | (751,963) |
Total non-compete agreement, net | 230,669 | $ 436,634 |
Foreign Currency Adjustment [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Non-compete agreement | (33,470) | |
Total non-compete agreement, net | (33,470) | |
Amortization [Member] | ||
Intangible Assets (Details) - Schedule of impaired intangible assets [Line Items] | ||
Less: accumulated amortization | (172,495) | |
Total non-compete agreement, net | $ (172,495) |
Intangible Assets (Details) -_6
Intangible Assets (Details) - Schedule of finite-lived intangible assets, future amortization expense | Jun. 30, 2020USD ($) |
Schedule of finite-lived intangible assets, future amortization expense [Abstract] | |
2021 | $ 812,591 |
2022 | 586,726 |
2023 | 548,263 |
2024 | 395,530 |
2025 | $ 329,007 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2017CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Other Non-Current Assets (Details) [Line Items] | |||
Other non-current assets, description | the balance of other non-current assets was $12,843,512, which was the rental fee advances for agriculture lands that the Company engaged in Shiquan County from 2020 to 2027. | ||
Jinong [Member] | |||
Other Non-Current Assets (Details) [Line Items] | |||
Description of rental agreement | the rental agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The rental agreement was from April 2017 and was renewable for every ten-year period up to 2066. | ||
Rental fees | ¥ | ¥ 13 | ||
Rental term | 10 years | ||
Amortized expenses | $ | $ 1.9 | $ 2 |
Other Non-Current Assets (Det_2
Other Non-Current Assets (Details) - Schedule of estimated amortization expenses of rental advance payments | Jun. 30, 2020USD ($) |
Schedule of estimated amortization expenses of rental advance payments [Abstract] | |
2021 | $ 1,899,638 |
2022 | 1,899,638 |
2023 | 1,899,638 |
2024 | 1,899,638 |
2025 and thereafter | $ 5,244,962 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Schedule of accrued expenses and other payables [Abstract] | ||
Payroll payable | $ 23,435 | $ 24,891 |
Welfare payable | 145,270 | 149,479 |
Accrued expenses | 7,640,130 | 6,847,041 |
Other payables | 6,211,818 | 4,886,202 |
Other levy payable | 118,671 | 122,109 |
Total | $ 14,139,324 | $ 12,029,722 |
Amount Due to Related Parties (
Amount Due to Related Parties (Details) | Jul. 02, 2018USD ($)m²ft² | Jul. 02, 2018CNY (¥)m²ft² | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jul. 02, 2019m² |
Amount Due to Related Parties (Details) [Line Items] | |||||||
Amount due from related parties | $ 0 | $ 0 | |||||
Amount due to related parties | 4,212,407 | 3,641,945 | |||||
Effective rent date | Jul. 1, 2018 | Jul. 1, 2018 | |||||
Sales Agreement [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Sale of products | $ 3,608,250 | ¥ 25,500,000 | |||||
Kingtone Information Technology Co., Ltd. [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Ground rent (in Square Meters) | m² | 612 | 612 | |||||
Area of land (in Square Meters) | 6,588 | 6,588 | 6,588 | ||||
Monthly rental expenses | $ 3,464 | ¥ 24,480 | |||||
Effective rent term | 2 years | 2 years | |||||
Yuxing [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Sale of products | 1,200,090 | 604,073 | |||||
Gufeng [Member] | Xi'an Techteam Science and Technology Industry (Group) Co. Ltd. [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Amount due to related parties | 990,500 | $ 1,019,200 | |||||
Jinong [Member] | |||||||
Amount Due to Related Parties (Details) [Line Items] | |||||||
Amount due to related parties | $ 11,819 |
Loan Payables (Details)
Loan Payables (Details) | 12 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Loan Payables (Details) [Line Items] | ||
Number of loans | 2 | |
Interest expense (in Dollars) | $ 278,328 | $ 318,122 |
Loans Payable [Member] | Minimum [Member] | ||
Loan Payables (Details) [Line Items] | ||
Loans payable, interest rates | 5.22% | |
Loans payable, maturity date | Jun. 22, 2021 | |
Loans Payable [Member] | Maximum [Member] | ||
Loan Payables (Details) [Line Items] | ||
Loans payable, interest rates | 5.66% |
Loan Payables (Details) - Sched
Loan Payables (Details) - Schedule of loan payables $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Short term loans payables | $ 3,537,500 |
Postal Saving Bank Of China Pinggu Branch [Member] | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Loan period per agreement, Start and End | June 17, 2020-June 16, 2021 |
Loans payable, interest rates | 5.66% |
Short term loans payables | $ 2,122,500 |
Agriculture Bank -Pinggu Branch [Member] | |
Loan Payables (Details) - Schedule of loan payables [Line Items] | |
Loan period per agreement, Start and End | June 22, 2020-June 22, 2021 |
Loans payable, interest rates | 5.22% |
Short term loans payables | $ 1,415,000 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) | 1 Months Ended | 12 Months Ended | |||||
Feb. 14, 2020USD ($)shares | Nov. 15, 2019USD ($)shares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Jun. 30, 2016CNY (¥) | |
Convertible Notes Payable (Details) [Line Items] | |||||||
Stock issued for convertible notes (in Shares) | shares | 377,650 | 995,000 | |||||
Common Stock issued for convertible notes value per share | $ 5 | $ 5 | |||||
Total issued convertible notes | $ 1,888,250 | $ 4,975,000 | |||||
Fair value of convertible notes payable | $ 0 | $ 7,517,307 | ¥ 0 | ¥ 51,629,859 | |||
Jinong [Member] | |||||||
Convertible Notes Payable (Details) [Line Items] | |||||||
Aggregate amount of convertible notes payable (in Yuan Renminbi) | ¥ | ¥ 51,000,000 | ||||||
Convertible notes payable, term | 3 years | ||||||
Annual interest rate | 3.00% | ||||||
Zhenbai [Member] | |||||||
Convertible Notes Payable (Details) [Line Items] | |||||||
Aggregate amount of convertible notes payable (in Yuan Renminbi) | ¥ | ¥ 12,000,000 | ||||||
Debt conversion, description | The per share conversion price of the notes is the higher of the following: (i) $5.00 per share or (ii) 75% of the closing price of the Company’s common stock on the date the noteholder delivers the conversion notice. | ||||||
Accretion expenses | $ 1,375,499 | $ 1,333,792 |
Convertible Notes Payable (De_2
Convertible Notes Payable (Details) - Schedule of convertible notes payable - 12 months ended Jun. 30, 2020 | $ / shares | CNY (¥) |
Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang [Member] | ||
Convertible Notes Payable (Details) - Schedule of convertible notes payable [Line Items] | ||
Issuance Date | Jun. 30, 2016 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Conversion Price | ¥ | ¥ 39,000,000 | |
Maturity Date | Jun. 30, 2020 | |
Fengnong, Xiangrong [Member] | ||
Convertible Notes Payable (Details) - Schedule of convertible notes payable [Line Items] | ||
Issuance Date | Jan. 1, 2017 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Conversion Price | ¥ | ¥ 12,000,000 | |
Maturity Date | Dec. 31, 2019 |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) | Apr. 04, 2018 | Jan. 01, 2008 | Mar. 20, 2019 | Dec. 22, 2017 | Apr. 28, 2017 | Jun. 30, 2020 | Jun. 30, 2019 |
Taxes Payable (Details) [Line Items] | |||||||
Periodic tax reduction, description | The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. | ||||||
Provision for income taxes (in Dollars) | $ 2,344,928 | $ 6,497,340 | |||||
Value added tax rate | 9.00% | 13.00% | |||||
Change in valuation allowance (in Dollars) | $ 18,366,366 | ||||||
Total deferred tax assets (in Dollars) | $ 0 | ||||||
Income tax, description | The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 27.5%. This is the result of using the tax rate of 34% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. | ||||||
U.S. federal statutory tax rate | 21.00% | 21.00% | |||||
Tax rate reconciliation, percentage | 1.70% | 35.90% | |||||
US statutory income tax rate, percentage | 21.00% | 21.00% | |||||
PRC [Member] | |||||||
Taxes Payable (Details) [Line Items] | |||||||
Periodic tax reduction, description | “Reinstatement of VAT for Fertilizer Products”, and Notice #97, “Supplementary Reinstatement of VAT for Fertilizer Products”, which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016. | ||||||
Value added tax rate | 10.00% | 11.00% | |||||
PRC [Member] | Minimum [Member] | |||||||
Taxes Payable (Details) [Line Items] | |||||||
Value added tax rate | 1.00% | 1.00% | 2.00% | ||||
PRC [Member] | Maximum [Member] | |||||||
Taxes Payable (Details) [Line Items] | |||||||
Value added tax rate | 11.00% | 10.00% | 13.00% | ||||
Enterprise Income Tax [Member] | |||||||
Taxes Payable (Details) [Line Items] | |||||||
New enterprise income tax rate | 25.00% | ||||||
Existing enterprise income tax rate | 33.00% | ||||||
High tech income tax rate | 15.00% | ||||||
Provision for income taxes (in Dollars) | $ 892,719 | $ 3,482,862 | |||||
Enterprise Income Tax rate | 25.00% |
Taxes Payable (Details) - Sched
Taxes Payable (Details) - Schedule of income taxes and related payables - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Schedule of income taxes and related payables [Abstract] | ||
VAT provision | $ (257,068) | $ (424,535) |
Income tax payable | 1,704,543 | 1,550,830 |
Other levies | 1,187,442 | 1,220,859 |
Repatriation tax | 29,010,535 | 29,010,535 |
Total | $ 31,645,452 | $ 31,357,690 |
Taxes Payable (Details) - Sch_2
Taxes Payable (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of provision for income taxes [Abstract] | ||
Current tax – foreign | $ 2,344,928 | $ 6,497,340 |
Total | $ 2,344,928 | $ 6,497,340 |
Taxes Payable (Details) - Sch_3
Taxes Payable (Details) - Schedule of deferred tax assets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Schedule of deferred tax assets [Abstract] | ||
Deferred Tax Benefit | $ 33,743,546 | $ 15,377,180 |
Valuation allowance | (33,743,546) | (15,377,180) |
Total deferred tax assets |
Taxes Payable (Details) - Sch_4
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation [Line Items] | ||
Pretax income (loss) | $ (134,407,208) | $ 18,087,735 |
Expected income tax expense (benefit) | (33,539,592) | 4,594,214 |
High-tech income benefits on Jinong | 1,814,372 | (697,062) |
Losses from subsidiaries in which no benefit is recognized | 33,743,546 | 2,220,717 |
Change in valuation allowance on deferred tax asset from US tax benefit | 326,602 | 379,470 |
Actual tax expense | $ 2,344,928 | $ 6,497,340 |
Actual tax expense, percentage | (1.70%) | 35.90% |
China 15% - 25% [Member] | ||
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation [Line Items] | ||
Pretax income (loss) | $ (132,851,959) | $ 19,894,737 |
Expected income tax expense (benefit) | $ (33,212,990) | $ 4,973,684 |
Expected income tax expense (benefit), percentage | 25.00% | 25.00% |
High-tech income benefits on Jinong | $ 1,814,372 | $ (697,062) |
High-tech income benefits on Jinong, percentage | (1.40%) | (3.50%) |
Losses from subsidiaries in which no benefit is recognized | $ 33,743,546 | $ 2,220,717 |
Losses from subsidiaries in which no benefit is recognized, percentage | (25.40%) | 11.20% |
Change in valuation allowance on deferred tax asset from US tax benefit | ||
Actual tax expense | $ 2,344,928 | $ 6,497,340 |
Actual tax expense, percentage | (1.80%) | 32.70% |
United States 21% [Member] | ||
Taxes Payable (Details) - Schedule of effective income tax rate reconciliation [Line Items] | ||
Pretax income (loss) | $ (1,555,249) | $ (1,807,002) |
Expected income tax expense (benefit) | $ (326,602) | $ (379,470) |
Expected income tax expense (benefit), percentage | 21.00% | 21.00% |
High-tech income benefits on Jinong | ||
High-tech income benefits on Jinong, percentage | ||
Losses from subsidiaries in which no benefit is recognized | ||
Losses from subsidiaries in which no benefit is recognized, percentage | ||
Change in valuation allowance on deferred tax asset from US tax benefit | $ 326,602 | $ 379,470 |
Change in valuation allowance on deferred tax asset from US tax benefit, percentage | (21.00%) | (21.00%) |
Actual tax expense | ||
Actual tax expense, percentage |
Stockholder's Equity (Details)
Stockholder's Equity (Details) | Nov. 15, 2019USD ($)$ / sharesshares | Aug. 19, 2019USD ($)$ / sharesshares | Aug. 15, 2019 | Jul. 02, 2019USD ($)shares | Aug. 13, 2019USD ($)$ / sharesshares | Jun. 25, 2019 | May 10, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Feb. 14, 2020$ / sharesshares | Aug. 16, 2019$ / sharesshares | Apr. 26, 2019$ / sharesshares | Apr. 25, 2019$ / sharesshares | Jan. 02, 2017USD ($) | Jan. 02, 2017CNY (¥) |
Stockholder's Equity (Details) [Line Items] | |||||||||||||||
Common stock, shares issued | 6,350,129 | 3,986,912 | |||||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||
Purchase price per share (in Dollars per share) | $ / shares | $ 5 | $ 10 | $ 10 | $ 1 | $ 5 | ||||||||||
Sale of common stock shares | 248,000 | 212,000 | 2,270,000 | ||||||||||||
Proceeds from issuance of stock (in Dollars) | $ | $ 4,975,000 | $ 2,480,000 | $ 2,120,000 | $ 2,270,000 | $ 10,252,000 | $ 8,270,000 | |||||||||
Common stock, shares outstanding | 6,350,129 | 3,986,912 | |||||||||||||
Stock issued during period for services, value (in Dollars) | $ | $ 330,000 | ||||||||||||||
Common stock, shares issued | 995,000 | 377,650 | |||||||||||||
Issuance of convertible notes | $ 1,726,619 | ¥ 12,000,000 | |||||||||||||
Total amount of convertible notes including interest | $ (1,888,250) | ¥ 13,112,723 | |||||||||||||
Preferred Units, Description | Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. | ||||||||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | |||||||||||||
Reverse stock split, description | the Company approved the amendment to its Articles of Incorporation to affect a 1 for 12 reverse stock splits. | ||||||||||||||
Shaanxi Baoyu Science and Technology Investment Company [Member] | |||||||||||||||
Stockholder's Equity (Details) [Line Items] | |||||||||||||||
Common stock, shares issued | 471,000 | ||||||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | ||||||||||||||
Private placement offering, description | the Company in connection with a private placement offering of 471,000 shares of Common Stock, par value $0.001 per share, of the Company. The purchase price per share of the offering was $12.00 for total proceeds of $5,652,000. | ||||||||||||||
Private Placement [Member] | |||||||||||||||
Stockholder's Equity (Details) [Line Items] | |||||||||||||||
Common stock, shares issued | 6,000,000 | 6,000,000 | |||||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||
Purchase price per share (in Dollars per share) | $ / shares | $ 1 | ||||||||||||||
2009 Plan [Member] | |||||||||||||||
Stockholder's Equity (Details) [Line Items] | |||||||||||||||
Stock issued during period for services, shares | 59,567 | 650,000 | |||||||||||||
Stock issued during period for services, value (in Dollars) | $ | $ 330,000 | $ 370,500 | |||||||||||||
Registrant's [Member] | |||||||||||||||
Stockholder's Equity (Details) [Line Items] | |||||||||||||||
Common stock, shares outstanding | 3,986,912 |
Concentrations and Litigation (
Concentrations and Litigation (Details) | 12 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Concentrations and Litigation (Details) [Line Items] | ||
Customer concentration, description | There was no vendor that the Company purchased over 10% of its raw materials for fertilizer manufacturing during the year ended June 30, 2020. | |
Sales revenue | $ 249,243,496 | $ 294,320,803 |
Supplier Concentration Risk [Member] | Two Vendor [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Vendor concentration, description | There were two vendors from which the Company purchased 10.8% and 10.6%, respectively, of its raw materials for fertilizer manufacturing during the year ended June 30, 2019. | |
Number of vendor | 2 | |
Total purchase amount | $ 51,459,699 | |
Customer Concentration Risk [Member] | Two Customer [Member] | ||
Concentrations and Litigation (Details) [Line Items] | ||
Customer concentration, description | Two customers accounted for an aggregate amount of $42,091,565, or 10.5% and 10.4%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2020. | Two customers accounted for an aggregate amount of $35,303,527, or 7.4% and 7.3%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2019. |
Number of customers | 2 | 2 |
Sales revenue | $ 42,091,565 | $ 35,303,527 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 4 | |
Number of business segments | 4 | |
Percentage of revenues | 1.00% | 1.00% |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of segment reporting information - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Revenues from unaffiliated customers: | |||
Revenues from unaffiliated customers | $ 249,243,496 | $ 294,320,803 | |
Operating income (expense): | |||
Operating income (expense) | (134,172,358) | 18,804,748 | |
Net income (loss): | |||
Net income (loss) | (136,752,136) | 11,590,395 | |
Depreciation and Amortization: | |||
Depreciation and amortization | 4,698,482 | 4,920,779 | |
Interest expense | 304,071 | 595,125 | |
Capital Expenditure: | |||
Capital expenditure | 97,483 | 63,610 | |
Identifiable assets: | |||
Identifiable assets | 342,128,183 | 481,000,399 | |
Jinong [Member] | |||
Revenues from unaffiliated customers: | |||
Revenues from unaffiliated customers | 57,001,659 | 76,494,490 | |
Operating income (expense): | |||
Operating income (expense) | (18,249,504) | 7,288,789 | |
Net income (loss): | |||
Net income (loss) | (15,422,166) | 5,925,025 | |
Depreciation and Amortization: | |||
Depreciation and amortization | 760,535 | 788,787 | |
Interest expense | 25,593 | 277,003 | |
Capital Expenditure: | |||
Capital expenditure | 50,625 | 6,862 | |
Identifiable assets: | |||
Identifiable assets | 83,055,679 | 149,166,251 | |
Gufeng [Member] | |||
Revenues from unaffiliated customers: | |||
Revenues from unaffiliated customers | 119,623,964 | 136,285,236 | |
Operating income (expense): | |||
Operating income (expense) | (117,826,339) | 14,076,655 | |
Net income (loss): | |||
Net income (loss) | (88,682,298) | 10,191,675 | |
Depreciation and Amortization: | |||
Depreciation and amortization | 2,070,861 | 2,144,061 | |
Interest expense | 278,373 | 318,122 | |
Capital Expenditure: | |||
Capital expenditure | 4,448 | 47,096 | |
Identifiable assets: | |||
Identifiable assets | 213,038,203 | 253,149,321 | |
Yuxing [Member] | |||
Revenues from unaffiliated customers: | |||
Revenues from unaffiliated customers | 9,227,113 | 10,101,051 | |
Operating income (expense): | |||
Operating income (expense) | 413,226 | (3,435,206) | |
Net income (loss): | |||
Net income (loss) | 425,957 | (3,435,659) | |
Depreciation and Amortization: | |||
Depreciation and amortization | 1,179,144 | 1,242,761 | |
Interest expense | |||
Capital Expenditure: | |||
Capital expenditure | 27,794 | 9,653 | |
Identifiable assets: | |||
Identifiable assets | 34,310,053 | 35,900,242 | |
Sales VIEs [Member] | |||
Revenues from unaffiliated customers: | |||
Revenues from unaffiliated customers | 63,390,760 | 71,440,026 | |
Operating income (expense): | |||
Operating income (expense) | 3,045,528 | 2,681,521 | |
Net income (loss): | |||
Net income (loss) | 2,153,503 | 729,023 | |
Depreciation and Amortization: | |||
Depreciation and amortization | 687,942 | 745,169 | |
Capital Expenditure: | |||
Capital expenditure | 14,617 | ||
Identifiable assets: | |||
Identifiable assets | 44,715,491 | 42,269,307 | |
Sales VIEs [Member] | Jinong [Member] | |||
Depreciation and Amortization: | |||
Interest expense | 105 | ||
Reconciling item (1) [Member] | |||
Operating income (expense): | |||
Operating income (expense) | [1] | ||
Net income (loss): | |||
Net income (loss) | [1] | 19 | 9 |
Identifiable assets: | |||
Identifiable assets | [1] | (33,157,364) | 518,158 |
Reconciling item (2) [Member] | |||
Operating income (expense): | |||
Operating income (expense) | [2] | (1,555,269) | (1,807,011) |
Net income (loss): | |||
Net income (loss) | [2] | (1,555,269) | (1,807,009) |
Identifiable assets: | |||
Identifiable assets | [2] | 166,121 | (2,879) |
Reconciling item (3) [Member] | |||
Net income (loss): | |||
Net income (loss) | [3] | $ (33,671,883) | $ (12,668) |
[1] | Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey. | ||
[2] | Reconciling amounts refer to the unallocated assets or expenses of the Parent Company. | ||
[3] | Reconciling amounts refer to the loss on discontinuing sales VIE of Shenqiu Zhenbai. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Jul. 02, 2018USD ($)ft² | Jul. 02, 2018CNY (¥)ft² | Feb. 29, 2004USD ($) | Feb. 29, 2004CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jul. 02, 2019m² |
Commitments and Contingencies (Details) [Line Items] | |||||||
Monthly rent expenses | ¥ 24,480 | $ 46,815 | $ 48,257 | ||||
Description of rental term | Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of RMB2,958 ($419). | Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of RMB2,958 ($419). | |||||
Kingtone Information [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Description of rental agreement | Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | |||||
Pursuant to lease in square feet (in Square Feet) | 6,588 | 6,588 | 6,588 | ||||
Monthly rent expenses | $ 3,464 | ||||||
Village committee [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Monthly rent expenses | ¥ | ¥ 2,958 | ||||||
Lease Rent Expense | $ (419) |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of payments for lease expenses | Jun. 30, 2020USD ($) |
Schedule of payments for lease expenses [Abstract] | |
2021 | $ 46,815 |
2022 | 46,815 |
2023 | 46,815 |
2024 | 46,815 |
2025 | $ 46,815 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Schedule of VIEs consolidated financial statements - Variable Interest Entities [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Current Assets | ||
Cash and cash equivalents | $ 712,301 | $ 818,312 |
Accounts receivable, net | 33,727,918 | 29,933,837 |
Inventories | 22,995,075 | 19,944,011 |
Other current assets | 593,942 | 475,001 |
Related party receivable | 66 | (1,031) |
Advances to suppliers | 520,901 | 3,606,384 |
Total Current Assets | 58,550,203 | 54,776,514 |
Plant, Property and Equipment, Net | 8,513,395 | 9,753,039 |
Other assets | 59,575 | 218,549 |
Intangible Assets, Net | 9,391,626 | 10,212,668 |
Total Assets | 79,025,544 | 78,169,549 |
Current Liabilities | ||
Accounts payable | 16,416,828 | 17,250,276 |
Customer deposits | 86,430 | 256,489 |
Accrued expenses and other payables | 6,996,544 | 6,243,753 |
Amount due to related parties | 41,549,931 | 42,680,723 |
Total Current Liabilities | 65,049,733 | 66,431,241 |
Total Liabilities | 65,049,733 | 66,431,241 |
Stockholders’ equity | 13,975,811 | 11,738,308 |
Total Liabilities and Stockholders’ Equity | 79,025,544 | 78,169,549 |
Revenue | 72,617,872 | 81,541,077 |
Expenses | 70,038,413 | 84,247,714 |
Net income | 2,579,459 | (2,706,637) |
Goodwill | $ 2,510,745 | $ 3,208,779 |
Business Combinations (Details)
Business Combinations (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Non compete agreements, description | Pursuant to the terms of certain Non-Compete Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the “Non-Compete Agreements”), the shareholders of the sales VIE companies agreed that during the period beginning on the initial date of their services with Jinong, and ending five (5) years after termination of their services with Jinong, without Jinong’s prior written consent, they will not provide services or accept positions including but not limited to partners, directors, shareholders, managers, proxies or consultants, provided by any profit making organizations with businesses that may compete with Jinong. They will not solicit or interfere with any of the Jinong’s customers, or solicit, induce, recruit or encourage any person engaged or employed by Jinong to terminate his or her service or engagement. If the shareholders of the sales VIE companies breach the non-compete obligations contained therein, Jinong is entitled to all loss and damages; if the damages are difficult to determine, remedies bore the shareholders of the sales VIE companies shall be no less than 50% of the salaries and other expenses Jinong provided in the past. |
Business Combinations (Detail_2
Business Combinations (Details) - Schedule of purchase price allocations at fair value - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 7,045,006 | $ 7,874,421 | |||
Total Asset | $ 342,128,183 | $ 481,000,399 | |||
Variable Interest Entities [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 708,737 | ||||
Accounts receivable | 6,422,850 | ||||
Advances to suppliers | 1,803,180 | ||||
Prepaid expenses and other current assets | 807,645 | ||||
Inventories | 7,787,043 | ||||
Machinery and equipment | 140,868 | ||||
Intangible assets | 270,900 | ||||
Other assets | 3,404,741 | ||||
Goodwill | 3,158,179 | ||||
Accounts payable | (3,962,670) | ||||
Customer deposits | (3,486,150) | ||||
Accrued expenses and other payables | (4,653,324) | ||||
Taxes payable | (16,912) | ||||
Purchase price | $ 12,385,087 | ||||
Zhenbai [Member] | |||||
Business Acquisition [Line Items] | |||||
Machinery and equipment | $ 222,875 | ||||
Intangible assets | $ 896,559 | 1,440 | |||
Goodwill | 538,488 | 684,400 | |||
Total Asset | 2,614,401 | ||||
Customer Relationship | 684,727 | 522,028 | |||
Non-compete Agreement | 211,833 | 392,852 | |||
Purchase price | 2,764,787 | ||||
Working Capital | $ 1,179,352 | $ 941,192 |
Business Combinations (Detail_3
Business Combinations (Details) - Schedule of purchase consideration paid for VIE - USD ($) | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Combinations (Details) - Schedule of purchase consideration paid for VIE [Line Items] | |||
Cash | $ 1,201,888 | ||
Convertible notes | 1,559,350 | ||
Derivative liability | 3,549 | ||
Net Loss | $ 2,764,787 | ||
Variable Interest Entities [Member] | |||
Business Combinations (Details) - Schedule of purchase consideration paid for VIE [Line Items] | |||
Cash | $ 5,568,500 | ||
Convertible notes | 6,671,769 | ||
Derivative liability | 144,818 | ||
Net Loss | $ 12,385,087 | ||
Zhenbai [Member] | |||
Business Combinations (Details) - Schedule of purchase consideration paid for VIE [Line Items] | |||
Cash | $ 461,330 | ||
Interest Payable | 83,039 | ||
Convertible notes | 1,724,683 | ||
Derivative liability | 13,353 | ||
Total Payback | 2,282,406 | ||
Net Loss | $ (331,995) |
Restricted Net Assets (Details)
Restricted Net Assets (Details) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Parent Company [Member] | ||
Restricted Net Assets (Details) [Line Items] | ||
Subsidiaries net assets, percentage | 25.00% | 25.00% |
Restricted Net Assets (Detail_2
Restricted Net Assets (Details) - Schedule of parent company condensed balance sheets - Parent Company [Member] - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Current Assets: | |||
Cash and cash equivalents | $ 65,520 | $ 78,406 | $ (29,103,559) |
Other current assets | 169,071 | 71 | |
Total Current Assets | 234,590 | 78,476 | |
Long-term equity investment | 273,573,440 | 406,084,910 | |
Total long-term assets | 273,573,440 | 406,084,910 | |
Total Assets | 273,808,030 | 406,163,387 | |
Current Liabilities: | |||
Accounts payable | 214,520 | 214,520 | |
Amount due to related parties | 3,192,986 | 2,592,986 | |
Other payables and accrued expenses | 7,594,602 | 6,800,194 | |
Total Current Liabilities | 11,002,108 | 9,607,701 | |
Stockholders’ Equity | |||
Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively | 6,350 | 3,987 | |
Additional paid in capital | 155,455,332 | 138,012,445 | |
Accumulated other comprehensive income | (34,264,089) | (19,821,211) | |
Retained earnings | 141,608,329 | 278,360,465 | |
Total Stockholders’ Equity | 262,805,922 | 396,555,686 | |
Total Liabilities and Stockholders’ Equity | $ 273,808,030 | $ 406,163,387 |
Restricted Net Assets (Detail_3
Restricted Net Assets (Details) - Schedule of parent company condensed balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Jun. 30, 2020 | Jun. 30, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,197,165 | 115,197,165 |
Common stock, shares issued | 3,986,912 | 3,241,413 |
Common stock, shares outstanding | 3,986,912 | 3,241,413 |
Restricted Net Assets (Detail_4
Restricted Net Assets (Details) - Schedule of parent company condensed statements of operations - Parent Company [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenue | ||
General and administrative expenses | 1,555,269 | 1,807,010 |
Interest income | 19 | 9 |
Provision for tax | ||
Equity investment in subsidiaries | (135,196,887) | 13,397,397 |
Net income | $ (136,752,136) | $ 11,590,395 |
Restricted Net Assets (Detail_5
Restricted Net Assets (Details) - Schedule of parent company condensed statements of cash flows - Parent Company [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ (10,864,886) | $ (8,617,776) |
Net cash provided by (used in) investing activities | ||
Net cash provided by (used in) financing activities | 10,852,000 | 8,679,230 |
Cash and cash equivalents, beginning balance | 78,406 | (29,103,559) |
Cash and cash equivalents, ending balance | $ 65,520 | $ 78,406 |